[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1708 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1708
To improve certain provisions relating to charter schools.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 7, 2015
Mr. Brown introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To improve certain provisions relating to 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 Accountability Act of
2015''.
SEC. 2. GENERAL PROVISIONS.
Title V of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7201 et seq.) is amended--
(1) by striking the title heading and inserting
``EMPOWERING PARENTS AND EXPANDING OPPORTUNITY THROUGH
INNOVATION'';
(2) by striking part A;
(3) by striking subparts 2 and 3 of part B;
(4) by redesignating parts B and C as parts A and B,
respectively;
(5) in part A, as redesignated by paragraph (4), by
striking ``Subpart 1--Charter School Programs'';
(6) by redesignating sections 5201 through 5211 as sections
5101 through 5111, respectively;
(7) by redesignating sections 5301 through 5307 as sections
5201 through 5207, respectively;
(8) by striking sections 5308 and 5310; and
(9) by redesignating sections 5309 and 5311 as sections
5208 and 5209, respectively.
SEC. 3. PUBLIC CHARTER SCHOOLS.
Part A of title V of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7221 et seq.), as redesignated by section 2(4), is
amended by striking sections 5101 through 5105, as redesignated by
section 2(6), and inserting the following:
``SEC. 5101. PURPOSE.
``It is the purpose of this part to--
``(1) provide authorization and support for public charter
schools providing elementary or secondary education as a means
to test and learn from innovations aimed at improving the
education of all students and strengthening public education;
``(2) evaluate the impact of such schools on student
achievement, families, and communities, and share best
practices among charter schools and other public schools;
``(3) expand opportunities for children with disabilities,
students who are English learners, and other traditionally
underserved students to attend charter schools and meet the
challenging State academic standards under section 1111(b)(1);
and
``(4) support efforts to strengthen the charter school
authorizing process to improve performance management,
including transparency, monitoring, including financial audits,
and evaluation of such schools.
``SEC. 5102. PROGRAM AUTHORIZED.
``(a) In General.--The Secretary may award grants to eligible State
educational agencies having applications approved pursuant to section
5103(f) to enable such agencies to conduct a charter school grant
program in accordance with this part, by--
``(1) supporting the startup of charter schools that are
evaluated by the charter school authorizer for quality and
local impact;
``(2) supporting the replication and expansion of high-
quality charter schools;
``(3) assisting charter schools in accessing credit to
acquire and renovate facilities for school use; and
``(4) carrying out national activities to support--
``(A) the dissemination of best and promising
practices between and among magnet, traditional
district, and charter schools;
``(B) the evaluation of the impacts of the charter
school program under this part on educational quality
and equity for students, and the overall strength of
public education in local communities; and
``(C) stronger charter school authorizing.
``(b) Funding Allotment.--From the amount made available under
section 5113 for a fiscal year, the Secretary shall--
``(1) reserve 12.5 percent to support charter school
facilities assistance under section 5104;
``(2) reserve not more than 25 percent to carry out
sections 5103A and 5105; and
``(3) use the remaining amount after the reservations under
paragraphs (1) and (2) to carry out section 5103.
``(c) Prior Grants and Subgrants.--The recipient of a grant or
subgrant under this part (as such part was in effect on the day before
the date of enactment of the Charter School Accountability Act of 2015)
shall continue to receive funds in accordance with the terms and
conditions of such grant or subgrant.
``SEC. 5103. GRANTS TO SUPPORT HIGH-QUALITY CHARTER SCHOOLS.
``(a) Program Authorized.--From the amount available under section
5102(b)(3), the Secretary shall award, on a competitive basis, grants
to eligible State educational agencies having applications approved
under subsection (f) to enable such eligible State educational agencies
to--
``(1) award subgrants to eligible applicants to enable such
eligible applicants to--
``(A) support the startup of charter schools that
are thoroughly vetted by the authorizer for quality and
local impact;
``(B) replicate or expand high-quality charter
schools, which may include--
``(i) supporting the acquisition,
expansion, or preparation of a charter school
building to meet increasing enrollment needs,
including financing the development of a new
building and ensuring that a school building
complies with applicable statutes and
regulations;
``(ii) paying costs associated with hiring
additional teachers to serve additional
students;
``(iii) providing transportation to
students to and from the charter school;
``(iv) providing instructional materials,
implementing teacher and principal or other
school leader professional development
programs, and hiring additional nonteaching
staff;
``(v) supporting any necessary activities
that assist the charter school in carrying out
this section; and
``(vi) providing early childhood education
programs for children, including direct support
to, and coordination with, school or community
based early childhood education programs; or
``(C) in the case of the closure or dissolution of
a charter school, transfer students and student records
to another school in the school district in which the
charter school is located; and
``(2) provide technical assistance to eligible applicants
and charter school authorizers in carrying out the activities
described in paragraph (1), and work with charter school
authorizers in the State to improve authorizing quality,
including developing capacity for and conducting fiscal
oversight and auditing of charter schools.
``(b) Eligible State Educational Agency Defined.--For purposes of
this section, the term `eligible State educational agencies' are State
educational agencies with all of the following student, family,
community and taxpayer protection laws and policies in place:
``(1) State law authorizing the creation of charter
schools.--The State must have a law in force that authorizes
the creation and operation of charter schools.
``(2) Fiduciary duties and conflict of interest rules.--The
State must have legally binding rules establishing fiduciary
duties for officers, directors, managers, and employees of
charter schools and prohibitions against conflicts of interest
among officers, directors, managers, and employees of charter
schools, education management organizations, and related
entities. Specifically, the State must have legally binding
rules--
``(A) providing that charter school officers,
directors, managers, and employees occupy positions of
trust when they handle the money or property of the
charter school;
``(B) prohibiting charter school officers,
directors, managers, and employees from dealing with
the charter school as an adverse party or acting on
behalf of an adverse party in any matter connected with
the duties of such officer, director, manager, or
employee;
``(C) prohibiting charter school officers,
directors, managers, and employees from holding or
acquiring any pecuniary or personal interest that
conflicts with the interests of the charter school;
``(D) prohibiting education management
organizations from entering into any transaction with a
related party, including--
``(i) any related entity formed for the
purpose of managing or providing support to a
charter school or group of related charter
schools;
``(ii) any direct or indirect wholly owned
subsidiary of any such entity, if the
transaction benefits the education management
organization, the related party, or both; or
``(iii) any other related party; and
``(E) providing civil remedies and criminal
penalties, as applicable, that will apply to a breach
of fiduciary duties and prohibited actions described in
this paragraph in the same manner that such remedies or
penalties apply to a breach of fiduciary duties or an
action similar to a prohibited action under this
paragraph in the case of officers, directors, managers,
and employees of an entity that is not a charter
school.
``(3) Public removal of charter school governing board
members.--The State charter school law shall ensure that a
State agency or charter school authorizer has the authority to
remove a member of a charter school's governing board if the
member has violated the member's fiduciary responsibilities or
the applicable conflict of interest rules.
``(4) Independent financial audit requirements with public
disclosure.--The State must require that all charter schools,
and all education management organizations that enter into
management services contracts with charter schools--
``(A) conduct annual, independent audits of their
financial statements and submit these required audit
reports to the eligible State educational agency; and
``(B) make the required audit reports, including
any management letters, publicly available via
disclosure by the eligible State educational agency.
``(5) Charter school access to books and records of
education management organizations.--The State must require
that a charter school's governing board have access to all the
books and records--
``(A) of any education management organization with
which the board has contracted to manage the school;
and
``(B) that are applicable to that charter school.
``(6) Open meetings and open records requirements for
charter schools.--The State must provide that charter schools
are covered by the State's open meetings and open records laws
to the same extent that public schools and school boards are
covered by such laws.
``(7) Charter school authorizer authority.--The State must
have policies in force that provide charter school authorizers
with the authority to--
``(A) inspect and obtain copies of any books and
records of the charter schools they authorize,
including all contracts entered into by the charter
schools; and
``(B) conduct a review or audit of educational
performance and financial operations of the charter
schools they authorize.
``(8) Charter school authorizer accountability.--The State
must have policies holding charter school authorizers
responsible for monitoring the educational performance and
financial operations of all charter schools that the charter
school authorizer has authorized. Such policies must include
all of the following:
``(A) Performance standards for charter school
authorizers.
``(B) A standardized and public charter school
authorizer performance reporting system that discloses,
for each authorizer in each school year--
``(i) the number of applications received;
``(ii) the number of applications approved;
``(iii) the name, location, and status of
each authorized school; and
``(iv) all charter school closures,
decisions to deny renewal of charters, or
decisions to cancel charters, including reasons
for the closures, nonrenewal decisions, or
cancellation decisions.
``(C) The provision of technical assistance to help
authorizers meet performance standards.
``(D) Authority on the part of an agency or
instrumentality of the State to suspend or revoke an
authorizer's ability to authorize charter schools on
the basis of poor performance, and policies relating to
that authority, including--
``(i) published criteria for such
suspensions or revocations based on the
educational or financial performance of the
schools that are authorized by the charter
school authorizer; and
``(ii) a protocol or policy for reassigning
authorizer responsibilities for each such
school to another appropriate authorizer and
assisting with the necessary transition (except
in the case of a State that has only one
charter school authorizer).
``(E) A policy regarding how charter schools are
monitored and held accountable for--
``(i) meeting the requirements described in
section 5110(1); and
``(ii) providing equitable access and
effectively serving the needs of all students,
including students with disabilities and
English learners.
``(F) A policy regarding how the charter school
authorizer will ensure that the local educational
agency that serves a charter school that such charter
school authorizer has authorized will comply with
subsections (a)(5) and (e)(1)(B) of section 613 of the
Individuals with Disabilities Education Act.
``(9) For-profit charter schools.--The State must have laws
in effect that require for-profit charter schools to--
``(A) ensure that the charter school's educational
responsibilities take primacy over other purposes, such
as generating financial returns for investors,
contributing to a related or parent organization, or
supporting external interests; and
``(B) include board members who have no significant
administrative position and no ownership interest in
the charter school or a related party, as described in
section 5103(b)(2)(D).
``(10) Districtwide multi-year school plan.--The State must
require local educational agencies, charter school authorizers,
and charter schools to jointly develop and regularly update a
districtwide multi-year school plan, which shall be coordinated
by the charter school authorizer.
``(11) Impact statement.--The State must require that
before any new charter school application is approved, the
local educational agency that serves the charter school or is
in the geographic area of the charter school, in accordance
with the districtwide multi-year school plan, shall--
``(A) prepare an impact statement--
``(i) assessing the proposed charter
school's impact on the districtwide multi-year
school plan; and
``(ii) identifying the role that the
charter school intends to fill within the local
educational agency;
``(B) make such impact statement available to
community members prior to the hearing described in
subparagraph (C); and
``(C) hold a community input hearing prior to the
determination about the approval or disapproval of a
pending charter school application.
``(12) Impact report.--The State educational agency must
prepare, and publish on the State educational agency website,
an annual assessment of the impact of charter schools on local
educational agencies in the State, including--
``(A) a review of the flow of funding between
sectors, student enrollment trends, and educational
outcomes;
``(B) identification of noteworthy innovative or
promising practices carried out by charter schools in
the State; and
``(C) documentation of efforts that lead to two-way
cross sector sharing of promising practices.
``(13) Charter school disclosures.--
``(A) In general.--Subject to subparagraph (B), the
State must require each charter school to publicly
disclose, on the school's website, the following:
``(i) The school's charter documents.
``(ii) Any performance agreements in effect
between the charter school and the charter
school's authorizer.
``(iii) A description of the school's
program, including courses and programs
offered.
``(iv) Whether or not transportation
services are provided, and any fees for
transportation.
``(v) Whether or not meals and snacks are
served at school and whether or not free or
reduced-price meals are available (and, if so,
to which students).
``(vi) Annual student attrition rates by
grade level.
``(vii) Student behavior or discipline
codes, policies, and processes, including
parent appeal options.
``(viii) Annual teacher attrition rates.
``(ix) The amounts of non-public funding
sources, including the duration of
philanthropic funding commitments.
``(x) The names of legal title holders of
land and buildings that the charter school
utilizes, along with a description of any
public subsidies used directly or indirectly to
purchase or lease charter school property.
``(xi) Fees related to incidentals of
attendance, and whether any of those fees are
waived for certain students (such as for
students who are eligible to receive a free or
reduced price lunch).
``(xii) Information related to financial
and in-kind contributions of support, which
shall be--
``(I) the amount and duration of
any Federal, State, local, and private
financial and in-kind contributions of
support, and how such funding and in-
kind contributions are spent or used;
``(II) the information required to
be submitted to the Office for Civil
Rights for the Civil Rights Data
Collection; or
``(III) in the case of an
organization described in section
501(c)(3) of the Internal Revenue Code
that is exempt from taxation under
section 501(a) of that Code, the
information required to be submitted on
any return to be filed under section
6033 of that Code.
``(B) Personally identifiable information.--
Notwithstanding the requirements under subparagraph
(A), a charter school shall not provide any information
under this paragraph that would reveal personally
identifiable information about an individual.
``(c) Eligible State Educational Agency Uses of Funds.--
``(1) In general.--An eligible State educational agency
receiving a grant under this section shall--
``(A) use not less than 90 percent of the grant
funds to award subgrants to eligible applicants, in
accordance with the quality charter school program
described in the eligible State educational agency's
application pursuant to subsection (f), for the
purposes described in subsection (a)(1);
``(B) reserve not less than 5 percent of such funds
to carry out the activities described in subsection
(a)(2);
``(C) reserve not more than 3 percent of such funds
for administrative costs, which may include the
administrative costs of providing technical assistance;
and
``(D) reserve not less than 2 percent of such funds
for the oversight of charter school use of Federal,
State, and local public funds and private funds,
including the investigation of fraud, waste,
mismanagement and misconduct and ensuring compliance
with paragraphs (2), (4), and (13) of subsection (b),
which may be used by--
``(i) the State for oversight of each
charter school in the State;
``(ii) local educational agencies for
oversight of public charter schools served by
the local educational agency; and
``(iii) charter school authorizers for--
``(I) oversight of each charter
school that is authorized by such
authorizer; and
``(II) coordination of the
districtwide multi-year school plan, as
described in subsection (b)(10).
``(2) Rules of construction.--Nothing in this part shall
prohibit the Secretary from awarding grants to eligible State
educational agencies, or eligible State educational agencies
from awarding subgrants to eligible applicants, that use a
weighted lottery, or an equivalent lottery mechanism, to give
better chances for school admission to all or a subset of
educationally disadvantaged students if--
``(A) the use of a weighted lottery in favor of
such students is not prohibited by State law; and
``(B) such weighted lottery is not used for the
purpose of creating schools exclusively to serve a
particular subset of students.
``(d) Program Periods; Peer Review; Distribution of Subgrants;
Waivers.--
``(1) Program periods.--
``(A) Grants.--A grant awarded by the Secretary to
an eligible State educational agency under this section
shall be for a period of not more than 3 years, and may
be renewed by the Secretary for one additional 2-year
period.
``(B) Subgrants.--A subgrant awarded by an eligible
State educational agency under this section--
``(i) shall be for a period of not more
than 3 years, of which an eligible applicant
may use not more than 18 months for planning
and program design; and
``(ii) may be renewed by the eligible State
educational agency for one additional 2-year
period.
``(2) Peer review.--The Secretary, and each eligible State
educational agency awarding subgrants under this section, shall
use a peer-review process to review applications for assistance
under this section.
``(3) Distribution of subgrants.--Each eligible State
educational agency awarding subgrants under this section shall
award subgrants in a manner that, to the extent practicable and
applicable, ensures that such subgrants--
``(A) prioritize eligible applicants that plan to
serve a significant number of students from low-income
families;
``(B) are distributed throughout different areas,
including urban, suburban, and rural areas; and
``(C) will assist charter schools representing a
variety of educational approaches.
``(4) Waivers.--The Secretary may waive any statutory or
regulatory requirement over which the Secretary exercises
administrative authority under this Act with respect to charter
schools supported under this part, except any such requirement
relating to the elements of a charter school, if--
``(A) the waiver is requested in an approved
application; and
``(B) the Secretary determines that granting such
waiver will promote the purposes of this part.
``(e) Limitations.--
``(1) Grants.--An eligible State educational agency may not
receive more than 1 grant under this section at a time.
``(2) Subgrants.--An eligible applicant may not receive
more than 1 subgrant under this section for each individual
charter school for each grant period or renewal period, unless
the eligible applicant demonstrates to the eligible State
educational agency that such individual charter school has
demonstrated a strong track record of positive results over the
course of the grant period regarding the elements described in
subparagraphs (A) and (D) of section 5110(8).
``(f) Applications.--
``(1) In general.--An eligible State educational agency
desiring to receive a grant under this section shall submit an
application to the Secretary at such time and in such manner as
the Secretary may require.
``(2) Contents.--The application shall, in addition to
citing the applicable policies necessary to satisfy the grant
eligibility criteria set forth in subsection (b), provide a
description of the eligible State educational agency's
objectives in running a quality charter school program under
this section and how the objectives of the program will be
carried out, including a description of the following:
``(A) How the eligible State educational agency
will--
``(i) support the opening of new charter
schools and, if applicable, the replication or
expansion of high-quality charter schools, and
the proposed number of charter schools to be
opened, replicated, or expanded under the
eligible State educational agency's program;
``(ii) inform eligible charter schools,
developers, and charter school authorizers of
the availability of funds under the program;
``(iii) work with eligible applicants to
ensure that the eligible applicants access all
Federal funds that such applicants are eligible
to receive, and help the charter schools
supported by the applicants and the students
attending those charter schools--
``(I) participate in the Federal
programs in which the schools and
students are eligible to participate;
and
``(II) receive the commensurate
share of Federal funds the schools and
students are eligible to receive under
such programs;
``(iv) ensure each eligible applicant that
receives a subgrant under the eligible State
educational agency's program--
``(I) is opening or expanding
schools that meet the definition of a
charter school under section 5110; and
``(II) is prepared to continue to
operate such charter schools once the
subgrant funds under this section are
no longer available;
``(v) support charter schools in local
educational agencies with schools that have
been identified by the State under section
1116(b);
``(vi) work with charter schools to promote
inclusion of all students and support all
students upon enrollment in order to promote
retention of students in the school;
``(vii) work with charter schools on
recruitment practices, including efforts to
engage groups that may otherwise have limited
opportunities to attend charter schools;
``(viii) promote the sharing of best and
promising practices among and across their
charter, magnet, and traditional school
sectors;
``(ix) ensure that charter schools
receiving funds under the eligible State
educational agency's program meet the
educational needs of their students, including
students with disabilities and students who are
English learners;
``(x) support efforts to increase charter
school quality initiatives, including meeting
quality authorizing elements in this part;
``(xi) hold charter schools within such
eligible State educational agency's
jurisdiction accountable if such schools do not
meet the objectives specified in the
performance contract described in section
5110(1), including by closing unsuccessful
schools; and
``(xii) ensure that local educational
agencies within such eligible State educational
agency's jurisdiction comply with subsections
(a)(5) and (e)(1)(B) of section 613 of the
Individuals with Disabilities Education Act.
``(B) The eligible State educational agency's
authorizer accountability policies and operations, and
plans pursuant to section 5103(b)(8).
``(C) How the eligible State educational agency
will ensure that each eligible applicant will solicit
and consider input from parents and other members of
the community on the implementation and operation of
each charter school that will receive funds under the
eligible State educational agency's program.
``(D) How the eligible State educational agency
will allow for an impartial appeals process for a
denial by a charter school authorizer of a developer's
application for a charter school.
``(E) How the eligible State educational agency
will award subgrants, on a competitive basis, to
eligible applicants, on the basis of applications that
include--
``(i) the name and address of the public
charter school and its mission, purpose, and
any specialized innovation of the charter
school;
``(ii) a description of the roles and
responsibilities of eligible applicants, and of
any education management organizations or other
organizations with which the eligible applicant
will partner to open charter schools, including
the administrative and contractual roles and
responsibilities of such partners;
``(iii) the proposed governance structure
of the school, developed with public input and
including, at a minimum, a list of members of
the governing board with each member's
qualifications, terms, and full financial
disclosure of any potential conflicts of
interest, including relationships with
education management organizations, vendors, or
other business dealings with the school or
other charter schools;
``(iv) for a traditional public school
applying to convert to a charter school,
demonstrated support of two-thirds of the
families of children attending the school and
two-thirds of the school staff for the
conversion;
``(v) any contract between the charter
school and an education management
organization;
``(vi) student recruitment, admission, and
retention policies and practices, including a
description of how the school provides
equitable access and effectively serves the
needs of all students, including students with
disabilities and English learners, and
implements outreach and recruitment practices
that include the families of all students;
``(vii) the ages and grades of students and
an estimate of the total enrollment of the
school to be served by the charter school;
``(viii) the number of staff and school
leadership positions, including full-time and
part-time employees, and qualifications of
employees;
``(ix) a description of the educational
program, methodology, and services to be
offered to students, including students who are
English learners and students with
disabilities;
``(x) information about the school's daily
hours of operation and number of days in the
school year;
``(xi) a description of how the school will
engage parents as partners in the education of
their children;
``(xii) a description of transportation
services provided to and from school for
students;
``(xiii) a statement that the school will
not discriminate on the basis of race, national
origin, gender, sexual orientation and gender
identity, ethnicity, disability, academic
achievement, or home language and that the
school will comply with Federal and State civil
rights laws applicable to other publicly funded
elementary and secondary schools;
``(xiv) evidence of adequate community
support for and interest in the charter school
sufficient to allow the school to reach its
anticipated enrollment, and an assessment of
the projected programmatic and fiscal impact of
the school on other public and nonpublic
schools in the area;
``(xv) a description of the health and food
services to be provided to students attending
the school, including whether the school
participates in any free or reduced price lunch
programs;
``(xvi) methods and strategies for serving
students with disabilities, students who are
English learners, and students who are
homeless, including compliance with all
applicable Federal laws;
``(xvii) a description of the procedures to
be followed in the case of the closure or
dissolution of the charter school, including--
``(I) provisions for the transfer
of students and student records to the
school district in which the charter
school is located, which transfer
activities may be carried out using
funds under this part;
``(II) the amount of funds that
will be held in escrow annually to fund
closure or dissolution related costs;
and
``(III) unless State law requires
otherwise, procedures for the
disposition of the charter school's
assets to the local educational agency
that serves the charter school or is in
the geographic area of the charter
school;
``(xviii) the hiring and personnel policies
and procedures of the school;
``(xix) a description of the manner by
which employees of the charter school will be
covered by the State teachers' retirement
system, the public employees' retirement
system, or other pension or retirement plan as
well as compensation, health, and other
benefits provided to the school's employees;
``(xx) for the purposes of a traditional
public school that seeks to convert to a public
charter school, how the charter school will
comply with the same public sector labor
relations laws and regulations as required of
traditional public schools, including
collective bargaining rights of the employees
of the charter school, as applicable under
State law;
``(xxi) a statement that the public charter
school will conduct or arrange for the
performance of annual independent financial
audits and submit the audits to the eligible
State educational agency;
``(xxii) a 3-year plan to sustain the
maintenance, operation, and fiscal stability of
the school;
``(xxiii) a statement that the school will
maintain a public online site with information
as required in this section, and as otherwise
provided in Federal, State, and local
requirements applicable to other public
schools, and a statement that the public
charter school will participate in an
independent evaluation, and any other
evaluations or assessments, in the time and
manner determined by the eligible State
educational agency; and
``(xxiv) a description of the quality
controls agreed to between the eligible
applicant and the authorizer, such as a
contract or a performance agreement or
financial audits to ensure adequate fiscal
oversight.
``(F) In the case of an eligible State educational
agency that partners with an outside organization to
carry out the entity's quality charter school program,
in whole or in part, a description of the roles and
responsibilities of the partner.
``(G) How the eligible State educational agency
will help the charter schools receiving funds under the
eligible State educational agency's program address the
transportation needs of the schools' students.
``(3) Assurances.--The application shall, in addition to
the information described in paragraph (2), include assurances
that the eligible State educational agency will ensure that the
charter school authorizer of any charter school that receives
funds under the eligible State educational agency's program--
``(A) ensures that the charter school under the
authority of such agency is meeting the requirements of
this Act, part B of the Individuals with Disabilities
Education Act, title VI of the Civil Rights Act of
1964, and section 504 of the Rehabilitation Act of
1973;
``(B) adequately monitors and provides adequate
technical assistance to each charter school under the
authority of such agency in recruiting, enrolling,
retaining, and meeting the needs of all students,
including children with disabilities and students who
are English learners; and
``(C) ensures that each such charter school
solicits and considers input from parents and other
members of the community on the implementation and
operation of the school.
``(g) Parent Information and Rights.--
``(1) As a condition for eligibility for funding under this
part, eligible State educational agencies shall--
``(A) ensure that each charter school in the State
provides the information described in paragraph (2) to
the parents of the students who attend the charter
school in a manner that is--
``(i) concise;
``(ii) presented in an understandable and
uniform format and, to the extent practicable,
in a language that parents can understand; and
``(iii) widely accessible to the public;
and
``(B) make such information available on a single
webpage of the State educational agency's website.
``(2) Such information shall include, at a minimum, each of
the following:
``(A) Information about the charter school's
mission, educational programs, and services.
``(B) The charter application and the approved
charter document for the school, as well as any
performance or other agreements in effect between the
charter school and its authorizer.
``(C) Rules and policies regarding student behavior
and student disciplinary policies and practices,
including suspension and expulsion policies.
``(D) Information about the provision of meals and
snacks, including--
``(i) the number and type of meals and
snacks served each day;
``(ii) whether such meals and snacks are
fully or partially subsidized; and
``(iii) information about student
eligibility for free and reduced price lunch
programs.
``(E) Information about transportation to and from
the school, including any transportation that is free
or subsidized to students and the eligibility
requirements for free or subsidized transportation.
``(F) Recruitment and admission policies and
practices used at each charter school site.
``(G) Information about the school's daily, weekly,
and school year schedule, including hours of operation
and number of days in the school year.
``(H) The number of years that the public charter
school has operated.
``(I) The maximum number of students in each
classroom by grade.
``(J) Staff qualifications (including school
leadership) and languages spoken by staff.
``(K) Fees related to incidentals of attendance
(other than tuition), and whether any of those fees are
waived for certain students (such as for students who
are eligible to receive a free or reduced price lunch).
``(L) Data on attendance and the number of
suspensions and expulsions by school year, in total and
disaggregated by each of the categories of students
described in section 1111(b)(2)(C)(v).
``(M) Annual student attrition rates by grade
level.
``(N) Annual teacher attrition rates and numbers,
disaggregated by grade level and teaching subject
matter, years of experience, and credential.
``(O) Procedures for parents, students, and school
employees to appeal school decisions and the procedures
and processes for such appeals.
``(P) Other information that would assist a parent
in making a decision to enroll a child in the public
charter school.
``(3) Notwithstanding the requirements under paragraph (2),
a charter school shall not provide any information under this
subsection that would reveal personally identifiable
information about an individual.
``(h) Selection Criteria; Priority.--The Secretary shall award
grants to eligible State educational agencies under this section on the
basis of--
``(1) the quality of the applications submitted;
``(2) the performance record of the charter sector in the
applicant State, including in the areas of promoting high
student achievement and growth, identification and use of
instructional and other educational program innovations to
strengthen public education, financial management, student
safety, and compliance with applicable policies; and
``(3) the eligible State educational agency's plan to
solicit and consider input from parents and other members of
the community on the implementation and operation of the
charter schools in the State.
``(i) State Evaluation and Report.--
``(1) In general.--Beginning not later than 2 years after
the date of enactment of the Charter School Accountability Act
of 2015, each eligible State educational agency receiving a
grant under this section shall enter into a contract for an
independent evaluation of the charter schools in the State,
which shall be carried out on an annual basis. The State
educational agency may use grant funds under this section to
pay the cost of the independent evaluation and related
reporting.
``(2) Submission to the secretary; public availability.--
Each such independent evaluation shall be submitted to the
Secretary and shall also be made publicly available on the
website of the agency.
``(3) Contents.--The independent evaluation described in
paragraph (1) shall include an evaluation of the following:
``(A) An assessment of the cumulative impact of
charter schools on local educational agencies within
the State, including on the flows of funding between
sectors, student enrollment trends, staffing, and
educational outcomes, along with recommendations for
any changes to laws, regulations, or policies to
address identified problems.
``(B) A compilation of profiles of public charter
school and other charter schools in the State relating
to demographic information on student enrollment and
retention.
``(C) Staff and leadership qualifications,
demographic information and retention information
regarding staff, and academic and nonacademic programs
provided, in charter schools in the State.
``(D) The academic achievement of students in each
public charter school in the State, as compared to
students enrolled in other public charter schools
within the same local educational agency and as
compared to other students enrolled in all public
schools in the local educational agency, accounting for
differences in student populations served, programs and
services provided, and public and nonpublic funding
available in the schools students are attending.
``(E) Adequacy of funding and resource distribution
among public charter schools and noncharter public
schools in the State, accounting for differences in
student populations served and programs and services
provided.
``(F) Recommendations for any changes to laws,
regulations, or policies that would facilitate
improvement of student outcomes in public charter
schools in the State.
``(G) Recommendations for improvements in equity,
transparency, and accountability of public charter
schools in the State to the public and the parents and
staff at such public charter schools.
``(H) Identification of best and promising
practices within the sectors of public schools, private
schools, and charter schools, in the State and the
extent to which these are being shared to improve
educational outcomes as a whole, barriers to effective
sharing, and recommendations for how to reduce such
barriers, in the State.
``(I) How the eligible State educational agency has
worked with charter schools receiving funds under the
State educational agency's program to foster community
involvement in the planning for and opening of such
schools.
``SEC. 5103A. GRANTS FOR THE REPLICATION AND EXPANSION OF HIGH-QUALITY
CHARTER SCHOOLS.
``(a) In General.--From amounts reserved under section 5102(b)(2),
the Secretary shall make grants, on a competitive basis, to eligible
entities having applications approved under this section to enable such
eligible entities to replicate a high-quality charter school or expand
a high-quality charter school.
``(b) Eligible Entity Defined.--For purposes of this section, the
term `eligible entity' means an entity that--
``(1)(A) is a charter management organization that, at the
time of the application, operates or manages one or more high-
quality charter schools; or
``(B) is a nonprofit organization that oversees and
coordinates the activities of a group of such charter
management organizations; and
``(2)(A) operates in a State that meets the requirements of
section 5103(b); or
``(B) if the entity does not operate in such a State, the
Secretary has certified that the eligible entity has policies
and controls in place that are in compliance with section
5103(b) and the Secretary has determined that awarding a grant
under this section to the entity will promote the purposes of
this part.
``(c) Application Requirements.--An eligible entity desiring to
receive a grant under this section shall submit an application to the
Secretary at such time and in such manner as the Secretary may require.
The application shall include the following:
``(1) Each item that is required for an application as
described in clauses (i) through (xxiv) of section
5103(f)(2)(E), except that the term `eligible entity' shall be
substituted for the term `eligible applicant'.
``(2) A description of the eligible entity's objectives for
implementing a high-quality charter school program with funding
under this section, including a description of the proposed
number of high-quality charter schools to be replicated or
expanded with funding under this section.
``(3) A description of the educational program that the
eligible entity will implement in the charter schools that the
eligible entity proposes to replicate or expand, including
information on how the program will enable all students to meet
the challenging State academic standards under section
1111(b)(1), the grade levels or ages of students that will be
served, and the instructional practices that will be used.
``(4) A multi-year financial and operating model for the
eligible entity, including a description of how the operation
of the charter schools to be replicated or expanded will be
sustained after the grant under this section has ended.
``(5) A description of how the eligible entity will inform
all students in the community, including children with
disabilities, students who are English learners, and other
educationally disadvantaged students, about the charter schools
to be replicated or expanded with funding under this section.
``(6) For each charter school currently operated or managed
by the eligible entity--
``(A) student assessment results for all students
and for each category of students described in section
1111(b)(2)(C)(v); and
``(B) attendance and student retention rates for
the most recently completed school year and, if
applicable, the most recent available 4-year adjusted
cohort graduate rate and extended-year adjusted cohort
graduation rate (as such rates were calculated on the
day before enactment of the Charter School
Accountability Act of 2015).
``(7) Information on any significant compliance issues
encountered, within the last 3 years, by any school operated or
managed by the eligible entity, including in the areas of
student safety and financial management.
``(8) An assurance that the eligibly entity will comply
with the requirements of--
``(A) section 5103(f)(3); and
``(B) section 5103(g).
``(d) Selection Criteria.--The Secretary shall select eligible
entities to receive grants under this section, on the basis of the
quality of--
``(1) the selection criteria described in section 5103(h);
``(2) the eligible entity's financial and operating model,
including the quality of the eligible entity's plan for
sustaining the operation of the charter schools to be
replicated or expanded after the grant under this section has
ended;
``(3) a determination that the eligible entity has not
operated or managed a significant proportion of charter schools
that--
``(A) have been closed;
``(B) have had a school charter revoked due to
problems with statutory or regulatory compliance; or
``(C) have had the school's affiliation with the
eligible entity revoked; and
``(4) a determination that the eligible entity has not
experienced significant problems with statutory or regulatory
compliance that could lead to the revocation of a school's
charter.
``(e) Priority.--In awarding grants under this section, the
Secretary shall give priority to eligible entities that operate or
manage charter schools that, in the aggregate, serve students at least
60 percent of whom are eligible for a free or reduced price lunch under
the Richard B. Russell National School Lunch Act.
``(f) Terms and Conditions.--Except as otherwise provided in this
section, grants awarded under this section shall have the same terms
and conditions as grants awarded to eligible State educational agencies
under section 5103.
``SEC. 5104. FACILITIES FINANCING ASSISTANCE.
``(a) Grants to Eligible Entities.--
``(1) In general.--From the amount reserved under section
5102(b)(1), the Secretary shall use not less than 50 percent to
award not less than 3 grants, on a competitive basis, to
eligible entities that have the highest quality applications
approved under subsection (d) to demonstrate innovative methods
of helping charter schools to address the cost of acquiring,
constructing, and renovating facilities by enhancing the
availability of loans or bond financing.
``(2) Eligible entity defined.--For the purposes of this
section, the term `eligible entity' means an entity with at
least an upper medium grade credit rating, which shall be--
``(A) a public entity, such as a State or local
governmental entity;
``(B) a private nonprofit entity; or
``(C) a consortium of entities described in
subparagraphs (A) and (B).
``(b) Grantee Selection.--The Secretary shall evaluate each
application submitted under subsection (d), and shall determine whether
the application is sufficient to merit approval.
``(c) Grant Characteristics.--Grants under subsection (a) 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.
``(d) Applications.--
``(1) In general.--An eligible entity desiring to receive a
grant under this section shall submit an application to the
Secretary in such form as the Secretary may reasonably require.
``(2) Contents.--An application submitted under paragraph
(1) shall contain--
``(A) a statement identifying the activities that
the eligible entity proposes to carry out with funds
received under subsection (a), 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 government
funding used and otherwise enhance credit available to
charter schools, including how the entity will offer a
combination of rates and terms more favorable than the
rates and terms that a charter school could receive
without assistance from the entity under this 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; and
``(F) in the case of an application submitted by 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
that charter schools need to have adequate facilities.
``(e) Charter School Objectives.--An eligible entity receiving a
grant under this section shall use the funds deposited in the reserve
account established under subsection (f) to assist one or more charter
schools to access private sector capital 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 of new facilities, including
predevelopment costs, or the renovation, repair, or alteration
of existing facilities, necessary to commence or continue the
operation of a charter school.
``(3) The predevelopment costs required to assess sites for
purposes of paragraph (1) or (2) and which are necessary to
commence or continue the operation of a charter school.
``(f) Reserve Account.--
``(1) Use of funds.--To assist charter schools in
accomplishing the objectives described in subsection (e), an
eligible entity receiving a grant under subsection (a) shall,
in accordance with State and local law, directly or indirectly,
alone or in collaboration with others, deposit the funds
received under subsection (a) (other than funds used for
administrative costs in accordance with subsection (g)) 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 (e).
``(B) Guaranteeing and insuring leases of personal
and real property for an objective described in such
subsection.
``(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).
``(2) Investment.--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) Reinvestment of earnings.--Any earnings on funds
received under subsection (a) shall be deposited in the reserve
account established under paragraph (1) and used in accordance
with this subsection.
``(g) Limitation on Administrative Costs.--An eligible entity may
use not more than 2.5 percent of the funds received under subsection
(a) for the administrative costs of carrying out its responsibilities
under this section (excluding subsection (k)).
``(h) Audits and Reports.--
``(1) Financial record maintenance and audit.--The
financial records of each eligible entity receiving a grant
under subsection (a) shall be maintained in accordance with
generally accepted accounting principles and shall be subject
to an annual audit by an independent public accountant.
``(2) Reports.--
``(A) Grantee annual reports.--Each eligible entity
receiving a grant under subsection (a) annually shall
submit to the Secretary a report of the entity's
operations and activities under this section.
``(B) Contents.--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 subsection (a) in
leveraging private funds;
``(iv) a listing and description of the
charter schools served during the reporting
period, including the amount of funds used by
each school, the type of project facilitated by
the grant, and the type of assistance provided
to the charter schools;
``(v) a description of the activities
carried out by the eligible entity to assist
charter schools in meeting the objectives set
forth in subsection (e); and
``(vi) a description of the characteristics
of lenders and other financial institutions
participating in the activities carried out by
the eligible entity under this section
(excluding subsection (k)) during the reporting
period.
``(C) Secretarial report.--The Secretary shall
review the reports submitted under subparagraph (A) and
shall provide a comprehensive annual report to Congress
on the activities conducted under this section
(excluding subsection (k)).
``(i) No Full Faith and Credit for Grantee Obligation.--No
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.
``(j) Recovery of Funds.--
``(1) In general.--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
(f)(1) if the Secretary determines, not earlier than 2
years after the date on which the eligible entity first
received funds under this section (excluding subsection
(k)), that the eligible entity has failed to make
substantial progress in carrying out the purposes
described in subsection (f)(1); or
``(B) all or a portion of the funds in a reserve
account established by an eligible entity under
subsection (f)(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 such subsection.
``(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 one or more of the purposes described in subsection
(f)(1).
``(3) Procedures.--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) 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.
``(k) Per-Pupil Facilities Aid Program.--
``(1) Definition of per-pupil facilities aid program.--In
this subsection, the term `per-pupil facilities aid program'
means a program in which a State makes payments, on a per-pupil
basis, to charter schools to provide the schools with
financing--
``(A) that is dedicated solely for funding charter
school facilities; or
``(B) a portion of which is dedicated for funding
charter school facilities.
``(2) Grants.--
``(A) In general.--From the amount reserved under
section 5102(b)(1) and remaining after the Secretary
makes grants under subsection (a), the Secretary shall
make grants, on a competitive basis, to States to pay
for the Federal share of the cost of establishing or
enhancing, and administering, per-pupil facilities aid
programs.
``(B) Period.--The Secretary shall award grants
under this subsection for periods of not more than 5
years.
``(C) Federal share.--The Federal share of the cost
described in subparagraph (A) for a per-pupil
facilities aid program shall be not more than--
``(i) 90 percent of the cost, for the first
fiscal year for which the program receives
assistance under this subsection;
``(ii) 80 percent for the second such year;
``(iii) 60 percent for the third such year;
``(iv) 40 percent for the fourth such year;
and
``(v) 20 percent for the fifth such year.
``(D) State share.--A State receiving a grant under
this subsection may partner with 1 or more
organizations, and such organizations may provide not
more than 50 percent of the State share of the cost of
establishing or enhancing, and administering, the per-
pupil facilities aid program.
``(E) Multiple grants.--A State may receive more
than 1 grant under this subsection, so long as the
amount of such grant funds provided to charter schools
increases with each successive grant.
``(3) Use of funds.--
``(A) In general.--A State that receives a grant
under this subsection shall use the funds made
available through the grant to establish or enhance,
and administer, a per-pupil facilities aid program for
charter schools in the State of the applicant.
``(B) Evaluations; technical assistance;
dissemination.--From the amount made available to a
State through a grant under this subsection for a
fiscal year, the State may reserve not more than 5
percent to carry out evaluations, to provide technical
assistance, and to disseminate information.
``(C) Supplement, not supplant.--Funds made
available under this subsection shall be used to
supplement, and not supplant, State and local public
funds expended to provide per-pupil facilities aid
programs, operations financing programs, or other
programs, for charter schools.
``(4) Requirements.--
``(A) Voluntary participation.--No State may be
required to participate in a program carried out under
this subsection.
``(B) State law.--
``(i) In general.--To be eligible to
receive a grant under this subsection, a State
shall establish or enhance, and administer, a
per-pupil facilities aid program for charter
schools in the State, that--
``(I) is specified in State law;
and
``(II) provides annual financing,
on a per-pupil basis, for charter
school facilities.
``(ii) Special rule.--A State that is
required under State law to provide its charter
schools with access to adequate facility space
may be eligible to receive a grant under this
subsection if the State agrees to use the funds
to develop a per-pupil facilities aid program
consistent with the requirements of this
subsection.
``(5) Applications.--To be eligible to receive a grant
under this subsection, a State shall submit an application to
the Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``SEC. 5105. NATIONAL ACTIVITIES.
``(a) In General.--From amounts reserved under section 5102(b)(2)
the Secretary shall use such funds to--
``(1) disseminate technical assistance to eligible State
educational agencies in awarding grants under section 5103;
``(2) disseminate best and promising practices regarding
charter schools;
``(3) evaluate the impact of the charter school program
carried out under this part on all students in charter and
traditional public schools and on local communities and the
overall strength and performance of their public schools; and
``(4) award grants, on a competitive basis, for the purpose
of carrying out the activities described in section 5103(1)(b),
to eligible applicants that desire to open a charter school,
replicate a high-quality charter school, or expand a high-
quality charter school in--
``(A) a State that did not apply for a grant under
section 5103; or
``(B) a State that did not receive a grant under
section 5103.
``(b) Report by the Secretary.--Not later than 6 months after the
date of enactment of the Charter School Accountability Act of 2015, the
Secretary shall prepare and submit to the Committee on Health,
Education, Labor, and Pensions of the Senate, the Committee on
Education and the Workforce of the House of Representatives, and the
relevant appropriations committees of Congress, and to the public via
the Department's website, a report--
``(1) responding to the March 9, 2010, final management
information report of the Office of the Inspector General of
the Department of Education, which expressed concern about
findings of inadequate oversight by local educational agencies
and charter school authorizers to ensure Federal funds are
properly used and accounted for;
``(2) responding to the September 2012 report of the Office
of the Inspector General of the Department of Education
entitled `The Office of Innovation and Improvement's Oversight
and Monitoring of the Charter Schools Program's Planning and
Implementation Grants Final Audit Report' finding that none of
the 3 States whose charter schools programs that Office
investigated adequately monitored the public charter schools
that the States funded; and
``(3) describing actions the Department has taken to
address the concerns described in such memorandum and final
audit report.''.
SEC. 4. FORMULA ALLOCATION.
Section 5106 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7221e), as redesignated by section 2(6), is amended by
adding at the end the following:
``(c) New or Significantly Expanding Charter Schools.--For purposes
of implementing the hold harmless protections in sections 1122(c) and
1125A(g)(3) for a newly opened or significantly expanded charter school
under subsection (a), a State educational agency shall calculate a hold
harmless base for the prior year that, as applicable, reflects the new
or significantly expanded enrollment of the charter school.''.
SEC. 5. RECORDS TRANSFER.
Section 5108 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7221g), as redesignated by section 2(6), is amended by
inserting ``as quickly as possible and'' before ``to the extent
practicable''.
SEC. 6. PAPERWORK REDUCTION.
Section 5109 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7221f), as redesignated by section 2(6), is amended by
striking ``authorized public chartering agency shall ensure that
implementation of this subpart'' and inserting ``charter school
authorizer shall ensure that implementation of this part''.
SEC. 7. DEFINITIONS; TRANSITION; CAPS; AUTHORIZATION OF APPROPRIATIONS.
Title V of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7201 et seq.) is further amended by striking sections 5110 and
5111 (20 U.S.C. 7221i; 7221j), as redesignated by section 2(6) and
inserting the following:
``SEC. 5110. DEFINITIONS.
``(1) Charter school.--The term `charter school' means a
public school that--
``(A) is afforded autonomy to test innovative
educational approaches, consistent with the provisions
of this Act, which local educational agencies consider
promising;
``(B) complies with the data collection, reporting,
auditing, and disclosure provisions of this Act as well
as those applicable to other public schools through
other Federal, State, and local laws, regulations and
policies;
``(C) admits students on the basis of a lottery, if
more students apply for admission that can be
accommodated;
``(D) in the case of a school that has an
affiliated charter school (such as a school that is
part of the same network of schools), automatically
enrolls students who are enrolled in the immediate
prior grade level of the affiliated charter school and,
for any additional student openings or student openings
created through regular attrition in student enrollment
in the affiliated charter school and the enrolling
school, admits students on the basis of a lottery as
described in subparagraph (C);
``(E) complies with the Age Discrimination Act of
1975 (42 U.S.C. 6101 et seq.), title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX
of the Education Amendments of 1972 (20 U.S.C. 1681 et
seq.), section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794), the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.), section 444 of the
General Education Provisions Act (20 U.S.C. 1232g)
(commonly referred to as the `Family Educational Rights
and Privacy Act of 1974'), and part B of the
Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.);
``(F) meets all applicable Federal, State, and
local health and safety requirements;
``(G) operates in accordance with State law;
``(H) has a written performance contract with a
charter school authorizer that includes--
``(i) a description of how student
performance will be measured on the basis of--
``(I) State assessments that are
required of other public schools; and
``(II) any other assessments that
are mutually agreeable to the charter
school authorizer and the charter
school;
``(ii) a requirement that student academic
achievement and growth, for the students
enrolled at the school as a whole and for each
of the categories of students described in
section 1111(b)(2)(C)(v) (except in a case in
which the number of students in a group is
insufficient to yield statistically reliable
information or the results would reveal
personally identifiable information about an
individual student) will be used as a primary
factor in decisions about the renewal or
revocation of the charter, in addition to other
criteria, as appropriate;
``(iii) the student academic achievement
and growth and student retention goals, and, in
the case of a high school, graduation rate
goals for the students enrolled at the school
as a whole and for each of the categories of
students described in section 1111(b)(2)(C)(v)
(except in a case in which the number of
students in a group is insufficient to yield
statistically reliable information or the
results would reveal personally identifiable
information about an individual student), and
any other goals to be achieved by the end of
the contract period; and
``(iv) the obligations and responsibilities
of the charter school and the charter school
authorizer;
``(I) does not charge tuition;
``(J) is nonsectarian in its programs, admissions
policies, employment practices, and all other
operations, and is not affiliated with a sectarian
school or religious institution;
``(K) is created by a developer as a public school,
or is adapted by a developer from an existing public
school, and is operated under public supervision and
direction;
``(L) operates in pursuit of a specific set of
educational objectives determined by the school's
developer and agreed to by the charter school
authorizer;
``(M) provides 1 or more programs of elementary
education, secondary education, or both, including
early childhood education, and may also provide adult
education, in accordance with State law; and
``(N) is governed by a separate and independent
board that exercises authority over 1 or more schools,
including authority in the areas of governance,
personnel, budget, schedule, and instructional program.
``(2) Charter management organization.--The term `charter
management organization' means a nonprofit organization that
operates or manages multiple charter schools by centralizing or
sharing certain functions or resources.
``(3) Charter school authorizer.--The term `charter school
authorizer' means a local educational agency or other public
entity that has authority pursuant to State law and has been
approved by the Secretary to authorize and approve a charter
school, and that shall--
``(A) develop and update regularly a districtwide
multi-year school plan;
``(B) monitor and assist charter schools in
complying with applicable requirements, including data
collection and public disclosure requirements and
participation in the development of the districtwide
multi-year school plan;
``(C) establish criteria and processes that the
charter school authorizer will use in monitoring the
performance of each charter school authorized by the
charter school authorizer, including interventions and
any actions leading up to the revocation of a school's
charter if the charter school authorizer finds that
such a revocation is necessary to protect the public
interest;
``(D) review the application and hold meaningful
public hearings to gather input from the public and
parents on applications to establish a charter school
or convert another school to a public charter school;
``(E) provide a statement on the impact of the
charter school within the local educational agency; and
``(F) in the case of a State with a cap on the
number of public charter schools in the State--
``(i) review and render a decision within
120 days of receipt of the application for a
charter school (whether a new school or a
conversion); and
``(ii) submit to the State educational
agency the charter school authorizer's
recommendation regarding approval of charter
school applicants, in order to allow the State
educational agency to conduct an expedited
review to determine if the approval described
in clause (i) will violate the cap on the
number of public charter schools in operation
in the State.
``(4) Developer.--The term `developer' means an individual
or group of individuals (including a public or private
nonprofit organization), which may include teachers,
administrators and other school staff, parents, or other
members of the local community in which a charter school
project will be carried out.
``(5) Districtwide multi-year school plan.--The term
`districtwide multi-year school plan' means a plan that--
``(A) is developed and regularly updated, with
meaningful public input from across the local
educational agency; and
``(B) takes into consideration projected
demographic changes, criteria for new school openings
or closings, and equitable geographic distribution of
schools and students to ensure that all students have
access to schools in their communities and a range of
specialized programs.
``(6) Education management organization.--The term
`education management organization' means a for-profit or
nonprofit organization that operates or manages multiple
charter schools by centralizing or sharing certain functions or
resources.
``(7) Eligible applicant.--The term `eligible applicant'
means a developer that has--
``(A) applied to a charter school authorizer to
operate a charter school; and
``(B) provided adequate and timely notice to that
charter school authorizer.
``(8) High-quality charter school.--The term `high-quality
charter school' means a charter school that--
``(A) shows evidence of strong academic results,
which may include strong student academic growth, as
determined by a State;
``(B) has no significant issues in the areas of
student safety, financial management, or statutory or
regulatory compliance;
``(C) has demonstrated success in significantly
increasing student academic achievement, including--
``(i) graduation rates, where applicable,
for all students served by the charter school;
and
``(ii) graduation rates, where applicable,
for each of the categories of students
described in section 1111(b)(2)(C)(v), except
that such demonstration is not required in a
case in which the number of students in a group
is insufficient to yield statistically reliable
information or the results would reveal
personally identifiable information about an
individual student;
``(D) has demonstrated community involvement during
the development and operation of the school; and
``(E) has had 3 successful consecutive annual
audits that have not indicated fiscal difficulties, as
determined by typical accounting standards.
``SEC. 5111. TRANSITION ARRANGEMENTS.
``No new Federal grants under this part shall be awarded for a
period of one year following the date of enactment of the Charter
School Accountability Act of 2015, at which time the definition of
eligible State educational agency under this part shall take effect.
``SEC. 5112. CAPS.
``In awarding grants under this part, the Secretary may neither
disadvantage nor advantage eligible State educational agency applicants
based on whether the State--
``(1) has a cap on the number of charter schools in the
State; or
``(2) expresses an intention to adopt such State charter
school caps.
``SEC. 5113. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
such sums as may be necessary for fiscal year 2016 and for each of the
5 succeeding fiscal years.''.
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