[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.''.
                                 <all>