[Congressional Record Volume 159, Number 74 (Thursday, May 23, 2013)]
[Senate]
[Pages S3859-S3863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself and Mr. Kirk):
  S. 1083. A bill to provide high-quality public charter school options 
for students by enabling such public charter schools to expand and 
replicate; to the Committee on Health, Education, Labor, and Pensions.
  Mr. DURBIN. Mr. President, today I am introducing legislation 
designed to improve educational opportunities for students. The All 
Students Achieving Through Reform Act, or All-STAR Act, would provide 
Federal resources to the most successful charter schools to help them 
grow and replicate their success. I thank Senator Kirk, for joining me 
in this effort.
  Across the nation, public charter schools are achieving promising 
results in low-income communities. I have been particularly impressed 
by the Noble Street schools in Chicago. Since opening its first campus 
in 1999, Noble Street has expanded to 12 charter high schools educating 
over 7,600 students from more than seventy communities, including some 
of Chicago's most difficult neighborhoods.
  Noble Street has achieved phenomenal results. Even though seventy-
five percent of students enter school with below grade level skills, 
Noble juniors have the highest ACT scores among Chicago open-enrollment 
schools. Moreover, 99 percent of Noble Street's seniors graduate and 90 
percent go on to college. I see this success in action when I visit 
Noble Street schools. As soon as you walk in the door, you can tell 
that everyone in the building is focused on academic success. The 
students are actively engaged in their learning. Their teachers and 
principals are demanding and inspiring. Noble Street would like to 
continue to grow and educate more students in Chicago.
  Every day 2.3 million students attend approximately 6,000 public 
charter schools nationally. Let us be honest, not all charter schools 
are excellent. Poor-performing charter schools should be closed. But we 
also need to replicate and expand the ones that are beating the odds, 
and we need to learn from them. The 2013 U.S. News and World Report's 
Best High Schools list included three public charters in its top ten 
and twenty-eight charter schools in its top 100. We need more excellent 
charters, like these and the Noble Street schools, in Illinois and 
around the country.
  The bipartisan bill I am introducing today would help make that 
possible. My bill would allow the existing charter school program to 
fund the expansion and replication of the most successful charter 
schools. Schools that have achieved positive results with their 
students will be able to apply for Federal grants to expand, allowing 
them to include additional grades or to replicate the model at a new 
school. Successful charters across the country will be able to grow, 
providing better educational opportunities to thousands of students.
  The bill also incentivizes the adoption of strong charter school 
policies by states. We know that successful charter schools can thrive 
when they have autonomy, freedom to grow, and strong accountability 
based on meeting performance targets. The bill would give grant 
priority to States that provide that environment. The bill also 
requires new levels of charter school authorizer reporting and 
accountability to ensure that good charter schools are able to succeed 
while bad charter schools are improved or shut down.
  This bill will improve educational opportunities for students across 
the nation. Charter schools represent some of the brightest spots in 
urban education today, and successful models have the full support of 
the President and Secretary Duncan. We need to help these schools grow 
and bring their best lessons into our regular public schools so that 
all students can benefit. Supporting the growth of successful charter 
schools should be a part of the conversation when we take up 
reauthorization of the Elementary and Secondary Education Act. I look 
forward to being a part of that discussion.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of th bill was ordered to be 
printed in the Record, as follows:

                                S. 1083

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``All Students Achieving 
     through Reform Act of 2013'' or ``All-STAR Act of 2013''.

     SEC. 2. CHARTER SCHOOL EXPANSION AND REPLICATION.

       (a) In General.--Subpart 1 of part B of title V of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7221 et seq.) is amended--
       (1) by striking section 5211;
       (2) by redesignating section 5210 as section 5211; and
       (3) by inserting after section 5209 the following:

     ``SEC. 5210. CHARTER SCHOOL EXPANSION AND REPLICATION.

       ``(a) Purpose.--It is the purpose of this section to 
     support State efforts to expand and replicate high-quality 
     public charter schools to enable such schools to serve 
     additional students, with a priority to serve those students 
     who attend identified schools or schools with a low 
     graduation rate.
       ``(b) Support for Proven Charter Schools and Increasing the 
     Supply of High-Quality Charter Schools.--
       ``(1) Grants authorized.--From the amounts appropriated 
     under section 5200 for any fiscal year, the Secretary shall 
     award grants, on a competitive basis, to eligible entities to 
     enable the eligible entities to make subgrants to eligible 
     public charter schools under subsection (e)(1) and carry out 
     the other activities described in subsection (e), in order to 
     allow the eligible public charter schools to serve additional 
     students through the expansion and replication of such 
     schools.
       ``(2) Amount of grants.--In determining the grant amount to 
     be awarded under this subsection to an eligible entity, the 
     Secretary shall consider--
       ``(A) the number of eligible public charter schools under 
     the jurisdiction or in the service area of the eligible 
     entity that are operating;

[[Page S3860]]

       ``(B) the number of new openings for students that could be 
     created in such schools with such grant;
       ``(C) the number of students attending identified schools 
     or schools with a low graduation rate in the State or area 
     where an eligible entity intends to replicate or expand 
     eligible public charter schools; and
       ``(D) the success of the eligible entity in overseeing 
     public charter schools and the likelihood of continued or 
     increased success because of the grant under this section.
       ``(3) Duration of grants.--
       ``(A) In general.--A grant under this section shall be for 
     a period of not more than 3 years, except that--
       ``(i) an eligible entity receiving such grant may, at the 
     discretion of the Secretary, continue to expend grant funds 
     after the end of the grant period; and
       ``(ii) the Secretary may renew such grant for 1 additional 
     2-year period, if the Secretary determines that the eligible 
     entity is meeting the goals of the grant.
       ``(B) Subsequent grants.--An eligible entity that has 
     received a grant under this section may receive subsequent 
     grants under this section.
       ``(c) Application Requirements.--
       ``(1) Application requirements.--To be considered for a 
     grant under this section, an eligible entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(2) Contents.--The application described in paragraph (1) 
     shall include, at a minimum, the following:
       ``(A) Record of success.--Documentation of the record of 
     success of the eligible entity in overseeing or operating 
     public charter schools, including--
       ``(i) the performance of the students of such public 
     charter schools on the student academic assessments described 
     in section 1111(b)(3) of the State where such school is 
     located (including a measurement of the students' average 
     academic longitudinal growth at each such school, if such 
     measurement is required by a Federal or State law applicable 
     to the entity), disaggregated by--

       ``(I) economic disadvantage;
       ``(II) race and ethnicity;
       ``(III) disability status; and
       ``(IV) status as a student with limited English 
     proficiency;

       ``(ii)(I) the status of such schools in making adequate 
     yearly progress, as defined in a State's plan in accordance 
     with section 1111(b)(2)(C) or, in the case of schools for 
     which the Secretary has waived the applicability of such 
     section pursuant to the authority under section 9401, the 
     status of such schools under the accountability standards 
     authorized by such waiver; and
       ``(II) the status of such schools as identified schools;
       ``(iii) documentation of demonstrated success by such 
     public charter schools in closing historic achievement gaps 
     between groups of students; and
       ``(iv) in the case of such public charter schools that are 
     secondary schools--

       ``(I) the number of students enrolled in dual enrollment, 
     Advanced Placement, International Baccalaureate, or other 
     college level courses;
       ``(II) the number of students earning a professional 
     certificate or license through the school;
       ``(III) student graduation rates; and
       ``(IV) rates of student acceptance, enrollment, and 
     persistence in institutions of higher education, where 
     possible.

       ``(B) Plan.--A plan for--
       ``(i) replicating and expanding eligible public charter 
     schools operated or overseen by the eligible entity;
       ``(ii) identifying eligible public charter schools, or 
     networks of eligible public charter schools, to receive 
     subgrants under this section;
       ``(iii) increasing the number of openings in eligible 
     public charter schools for students attending identified 
     schools and schools with a low graduation rate;
       ``(iv) ensuring that eligible public charter schools 
     receiving a subgrant under this section enroll students 
     through a random lottery for admission, unless the charter 
     school is using the subgrant to expand the school to serve 
     additional grades, in which case such school may reserve 
     seats in the additional grades for--

       ``(I) each student enrolled in the grade preceding each 
     such additional grade;
       ``(II) siblings of students enrolled in the charter school, 
     if such siblings desire to enroll in such grade; and
       ``(III) children of the charter school's founders, staff, 
     or employees;

       ``(v)(I) in the case of an eligible entity described in 
     subparagraph (A) or (C) of subsection (k)(4), the manner in 
     which the eligible entity will work with identified schools 
     and schools with a low graduation rate that are eligible to 
     enroll students in a public charter school receiving a 
     subgrant under this section and that are under the eligible 
     entity's jurisdiction, and the local educational agencies 
     serving such schools (as applicable), to--

       ``(aa) engage in community outreach, provide information in 
     a language that the parents can understand, and communicate 
     with parents of students at identified schools and schools 
     with a low graduation rate who are eligible to attend a 
     public charter school receiving a subgrant under this section 
     about the opportunity to enroll in or transfer to such 
     school, in a manner consistent with section 444 of the 
     General Education Provisions Act (commonly known as the 
     `Family Educational Rights and Privacy Act of 1974'); and
       ``(bb) ensure that a student can transfer to an eligible 
     public charter school if the public charter school such 
     student was attending in the previous school year is no 
     longer an eligible public charter school; and

       ``(II) in the case of an eligible entity described in 
     subparagraph (B) or (D) of subsection (k)(4), the manner in 
     which the eligible entity will work with the local 
     educational agency to carry out the activities described in 
     items (aa) and (bb) of subclause (I);
       ``(vi) disseminating to public schools under the 
     jurisdiction or in the service area of the eligible entity, 
     in a manner consistent with section 444 of the General 
     Education Provisions Act (commonly known as the `Family 
     Educational Rights and Privacy Act of 1974'), the best 
     practices, programs, or strategies learned by awarding 
     subgrants to eligible public charter schools under this 
     section, with particular emphasis on the best practices with 
     respect to--

       ``(I) focusing on closing achievement gaps; or
       ``(II) successfully addressing the education needs of low-
     income students; and

       ``(vii) in the case of an eligible entity described in 
     subsection (k)(4)(D)--

       ``(I) supporting the short-term and long-term success of 
     the proposed project, by--

       ``(aa) developing a multi-year financial and operating 
     model for the eligible entity; and
       ``(bb) including, with the plan, evidence of the 
     demonstrated commitment of current partners, as of the time 
     of the application, for the proposed project and of broad 
     support from stakeholders critical to the project's long-term 
     success;

       ``(II) closing public charter schools that do not meet 
     acceptable standards of performance; and
       ``(III) achieving the objectives of the proposed project on 
     time and within budget, which shall include the use of 
     clearly defined responsibilities, timelines, and milestones 
     for accomplishing project tasks.

       ``(C) Charter school information.--The number of--
       ``(i) eligible public charter schools that are operating in 
     the State in which the eligible entity intends to award 
     subgrants under this section;
       ``(ii) public charter schools approved to open or likely to 
     open during the grant period in such State;
       ``(iii) available openings in eligible public charter 
     schools in such State that could be created through the 
     replication or expansion of such schools if the grant is 
     awarded to the eligible entity;
       ``(iv) students on public charter school waiting lists (if 
     such lists are available) in--

       ``(I) the State in which the eligible entity intends to 
     award subgrants under this section; and
       ``(II) each local educational agency serving an eligible 
     public charter school that may receive a subgrant under this 
     section from the eligible entity; and

       ``(v) students, and the percentage of students, in a local 
     educational agency who are attending eligible public charter 
     schools that may receive a subgrant under this section from 
     the eligible entity.
       ``(D) Traditional public school information.--In the case 
     of an eligible entity described in subparagraph (A) or (C) of 
     subsection (k)(4), a list of the following schools under the 
     jurisdiction of the eligible entity, including the name and 
     location of each such school, the number and percentage of 
     students under the jurisdiction of the eligible entity who 
     are attending such school, and such demographic and 
     socioeconomic information as the Secretary may require:
       ``(i) Identified schools.
       ``(ii) Schools with a low graduation rate.
       ``(E) Assurance.--In the case of an eligible entity 
     described in subsection (k)(4)(A), an assurance that the 
     eligible entity will include information (in a language that 
     the parents can understand) about the eligible public charter 
     schools receiving subgrants under this section--
       ``(i) in the notifications provided under section 
     1116(c)(6) to parents of each student enrolled in a school 
     served by a local educational agency identified for school 
     improvement or corrective action under paragraph (1) or (7) 
     of section 1116(c); or
       ``(ii) in any case where the requirements under section 
     1116(c) have been waived in whole or in part by the Secretary 
     under the authority of section 9401, to parents of each 
     student enrolled in a school served by a local educational 
     agency that has been identified as in need of additional 
     assistance under any accountability system established under 
     such section.
       ``(3) Modifications.--The Secretary may modify or waive any 
     information requirement under paragraph (2)(C) for an 
     eligible entity that demonstrates that the eligible entity 
     cannot reasonably obtain the information.
       ``(d) Priorities for Awarding Grants.--
       ``(1) In general.--In awarding grants under this section, 
     the Secretary shall give priority to an eligible entity 
     that--
       ``(A) serves or plans to serve a large percentage of low-
     income students from identified schools or public schools 
     with a low graduation rate;
       ``(B) oversees or plans to oversee one or more eligible 
     public charter schools;

[[Page S3861]]

       ``(C) provides evidence of effective monitoring of the 
     academic success of students who attend public charter 
     schools under the jurisdiction of the eligible entity;
       ``(D) has established goals, objectives, and outcomes for 
     the proposed project that are clearly specified, measurable, 
     and attainable;
       ``(E) in the case of an eligible entity that is a local 
     educational agency under State law, has a cooperative 
     agreement under section 1116(b)(11); and
       ``(F) is under the jurisdiction of, or plans to award 
     subgrants under this section in, a State that--
       ``(i) ensures that all public charter schools (including 
     such schools served by a local educational agency and such 
     schools considered to be a local educational agency under 
     State law) receive, in a timely manner, the Federal, State, 
     and local funds to which such schools are entitled under 
     applicable law;
       ``(ii) provides funding (such as capital aid distributed 
     through a formula or access to revenue generated bonds, and 
     including funding for school facilities) on a per-pupil basis 
     to public charter schools commensurate with the amount of 
     funding (including funding for school facilities) provided to 
     traditional public schools;
       ``(iii) provides strong evidence of support for public 
     charter schools and has in place innovative policies that 
     support academically successful charter school growth;
       ``(iv) authorizes public charter schools to offer early 
     childhood education programs, including prekindergarten, in 
     accordance with State law;
       ``(v) authorizes or allows public charter schools to serve 
     as school food authorities;
       ``(vi) ensures that each public charter school in the 
     State--

       ``(I) has a high degree of autonomy over the public charter 
     school's budget and expenditures;
       ``(II) has a written performance contract with an 
     authorized public chartering agency that ensures that the 
     school has an independent governing board with a high degree 
     of autonomy; and
       ``(III) in the case of an eligible public charter school 
     receiving a subgrant under this section, amends its charter 
     to reflect the growth activities described in subsection (e);

       ``(vii) has an appeals process for the denial of an 
     application for a public charter school;
       ``(viii) provides that an authorized public chartering 
     agency that is not a local educational agency, such as a 
     State chartering board, is available for each individual or 
     entity seeking to operate a public charter school pursuant to 
     such State law;
       ``(ix) allows any public charter school to be a local 
     educational agency in accordance with State law;
       ``(x) ensures that each authorized public chartering agency 
     in the State submits annual reports to the State educational 
     agency, and makes such reports available to the public, on 
     the performance of the schools authorized or approved by such 
     public chartering agency, which reports shall include--

       ``(I) the authorized public chartering agency's strategic 
     plan for authorizing or approving public charter schools and 
     any progress toward achieving the objectives of the strategic 
     plan;
       ``(II) the authorized public chartering agency's policies 
     for authorizing or approving public charter schools, 
     including how such policies examine a school's--

       ``(aa) financial plan and policies, including financial 
     controls and audit requirements;
       ``(bb) plan for identifying and successfully (in compliance 
     with all applicable laws and regulations) serving students 
     with disabilities, students who are English language 
     learners, students who are academically behind their peers, 
     and gifted students; and
       ``(cc) capacity and capability to successfully launch and 
     subsequently operate a public charter school, including the 
     backgrounds of the individuals applying to the agency to 
     operate such school and any record of such individuals 
     operating a school;

       ``(III) the authorized public chartering agency's policies 
     for renewing, not renewing, and revoking a public charter 
     school's charter, including the role of student academic 
     achievement in such decisions;
       ``(IV) the authorized public chartering agency's 
     transparent, timely, and effective process for closing down 
     academically unsuccessful public charter schools;
       ``(V) the academic performance of each operating public 
     charter school authorized or approved by the authorized 
     public chartering agency, including the information reported 
     by the State in the State annual report card under section 
     1111(h)(1)(C) for such school (or any similar reporting 
     requirement authorized by the Secretary through a waiver 
     under section 9401);
       ``(VI) the status of the authorized public chartering 
     agency's charter school portfolio, by identifying all charter 
     schools served by the public chartering agency in each of the 
     following categories: approved (but not yet open), operating, 
     renewed, transferred, revoked, not renewed, voluntarily 
     closed, or never opened;
       ``(VII) the authorizing functions provided by the 
     authorized public chartering agency to the public charter 
     schools under its purview, including such agency's operating 
     costs and expenses as detailed through annual auditing of 
     financial statements that conform with general accepted 
     accounting principles; and
       ``(VIII) the services purchased (such as accounting, 
     transportation, and data management and analysis) from the 
     authorized public chartering agency by the public charter 
     schools authorized or approved by such agency, including an 
     itemized accounting of the actual costs of such services; and

       ``(xi) has or will have (within 1 year after receiving a 
     grant under this section) a State policy and process for 
     overseeing and reviewing the effectiveness and quality of the 
     State's authorized public chartering agencies, including--

       ``(I) a process for reviewing and evaluating the 
     performance of the authorized public chartering agencies in 
     authorizing or approving public charter schools, including a 
     process that enables the authorized public chartering 
     agencies to respond to any State concerns; and
       ``(II) any other necessary policies to ensure effective 
     charter school authorizing in the State in accordance with 
     the principles of quality charter school authorizing, as 
     determined by the State in consultation with the charter 
     school community and stakeholders.

       ``(2) Special rule.--In awarding grants under this section, 
     the Secretary may determine how the priorities described in 
     paragraph (1) will apply to the different types of eligible 
     entities defined in subsection (k)(4).
       ``(e) Use of Funds.--An eligible entity receiving a grant 
     under this section shall use the grant funds for the 
     following:
       ``(1) Subgrants.--
       ``(A) In general.--An eligible entity shall award 
     subgrants, in such amount as the eligible entity determines 
     is appropriate, to eligible public charter schools to 
     replicate or expand such schools.
       ``(B) Application.--An eligible public charter school 
     desiring to receive a subgrant under this subsection shall 
     submit an application to the eligible entity at such time, in 
     such manner, and containing such information as the eligible 
     entity may require.
       ``(C) Uses of funds.--An eligible public charter school 
     receiving a subgrant under this subsection shall use the 
     subgrant funds to provide for an increase in the school's 
     enrollment of students through the replication or expansion 
     of the school, which may include use of funds to--
       ``(i) support the physical expansion of school buildings, 
     including financing the development of new buildings and 
     campuses to meet increased enrollment needs;
       ``(ii) pay costs associated with hiring additional teachers 
     to serve additional students;
       ``(iii) provide transportation to additional students to 
     and from the school (including providing transportation to 
     students who transfer to the school under a cooperative 
     agreement established under section 1116(b)(11)), as long as 
     the eligible public charter school demonstrates to the 
     eligible entity, in the application required under 
     subparagraph (B), that the public charter school has the 
     capability to continue providing such transportation after 
     the expiration of the subgrant funds;
       ``(iv) purchase instructional materials, implement teacher 
     and principal professional development programs, and hire 
     additional non-teaching staff; and
       ``(v) support any necessary activities associated with the 
     school carrying out the purposes of this section, including 
     data collection and management.
       ``(D) Priority.--In awarding subgrants under this 
     subsection, an eligible entity shall give priority to an 
     eligible public charter school that--
       ``(i)(I) has significantly closed any achievement gaps on 
     the State academic assessments described in section 
     1111(b)(3) among the groups of students described in section 
     1111(b)(2)(C)(v) by improving scores; or
       ``(II) in the case of a school in a State for which the 
     Secretary has granted a waiver under section 9401, has 
     significantly closed any achievement gaps among groups of 
     students, as determined by the Secretary in accordance with 
     any accountability standards that the Secretary has 
     authorized through such waiver; and
       ``(ii) has been in operation for not less than 3 
     consecutive years and has demonstrated overall success, 
     including--

       ``(I) substantial progress in improving student 
     achievement, as measured--

       ``(aa) for tested grades and subjects, by a student's score 
     on State academic assessments required under this Act, and 
     other rigorous measures of student learning that are 
     comparable across classrooms, such as the measures described 
     in item (bb); and
       ``(bb) for non-tested grades and subjects, alternative 
     measures of student learning and performance, such as student 
     scores on pretests and end-of-course tests, student 
     performance on English language proficiency assessments; and 
     other measures of student achievement that are rigorous and 
     comparable across classrooms; and

       ``(II) the management and leadership necessary to overcome 
     initial start-up problems and establish a thriving, 
     financially viable charter school.

       ``(E) Duration of subgrant.--A subgrant under this 
     subsection shall be awarded for a period of not more than 3 
     years, except that an eligible public charter school 
     receiving a subgrant under this subsection may, at the 
     discretion of the eligible entity, continue to expend 
     subgrant funds after the end of the subgrant period.
       ``(2) Facility financing and revolving loan fund.--An 
     eligible entity may use not more than 25 percent of the 
     amount of the grant funds received under this section to 
     establish a reserve account described in subsection (f) to 
     facilitate public charter school facility acquisition and 
     development by--

[[Page S3862]]

       ``(A) conducting credit enhancement initiatives (as 
     referred to in subpart 2) in support of the development of 
     facilities for eligible public charter schools serving 
     students;
       ``(B) establishing a revolving loan fund for use by an 
     eligible public charter school receiving a subgrant under 
     this subsection from the eligible entity under such terms as 
     may be determined by the eligible entity to allow such school 
     to expand to serve additional students;
       ``(C) facilitating, through direct expenditure or 
     financing, the acquisition or development of public charter 
     school buildings by the eligible entity or an eligible public 
     charter school receiving a subgrant under this subsection 
     from the eligible entity, which may be used as both permanent 
     locations for eligible public charter schools or incubators 
     for growing charter schools; or
       ``(D) establishing a partnership with 1 or more community 
     development financial institutions (as defined in section 103 
     of the Community Development Banking and Financial 
     Institutions Act of 1994 (12 U.S.C. 4702)) or other mission-
     based financial institutions to carry out the activities 
     described in subparagraphs (A), (B), and (C).
       ``(3) Administrative tasks, dissemination activities, 
     research, and data collection.--
       ``(A) In general.--An eligible entity may use not more than 
     7.5 percent of the grant funds awarded under this section to 
     cover administrative tasks, dissemination activities, and 
     outreach, including data collection and management.
       ``(B) Nonprofit assistance.--In carrying out the 
     administrative tasks, dissemination activities, and outreach 
     described in subparagraph (A), an eligible entity may 
     contract with an organization described in section 501(c)(3) 
     of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) 
     and exempt from tax under section 501(a) of such Code (26 
     U.S.C. 501(a)).
       ``(f) Reserve Account.--
       ``(1) In general.--To assist eligible entities in the 
     development of new public charter school buildings or 
     facilities for eligible public charter schools, an eligible 
     entity receiving a grant under this section may, in 
     accordance with State and local law, directly or indirectly, 
     alone or in collaboration with others, deposit the amount of 
     funds described in subsection (e)(2) in a reserve account 
     established and maintained by the eligible entity.
       ``(2) Investment.--Funds received under this section and 
     deposited in the reserve account established under this 
     subsection 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 this subsection shall be deposited in the 
     reserve account established under this subsection and used in 
     accordance with the purpose described in subsection (a).
       ``(4) Recovery of funds.--
       ``(A) In general.--The Secretary, in accordance with 
     chapter 37 of title 31, United States Code, shall collect--
       ``(i) all funds in a reserve account established by an 
     eligible entity under this subsection if the Secretary 
     determines, not earlier than 2 years after the date the 
     eligible entity first received funds under this section, that 
     the eligible entity has failed to make substantial progress 
     carrying out the purpose described in paragraph (1); or
       ``(ii) all or a portion of the funds in a reserve account 
     established by an eligible entity under this subsection if 
     the Secretary determines that the eligible entity has 
     permanently ceased to use all or a portion of funds in such 
     account to accomplish the purpose described in paragraph (1).
       ``(B) Exercise of authority.--The Secretary shall not 
     exercise the authority provided under subparagraph (A) to 
     collect from any eligible entity any funds that are being 
     properly used to achieve such purpose.
       ``(C) Procedures.--Sections 451, 452, and 458 of the 
     General Education Provisions Act shall apply to the recovery 
     of funds under subparagraph (A).
       ``(D) Construction.--This paragraph 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.
       ``(5) Reallocation.--Any funds collected by the Secretary 
     under paragraph (4) shall be awarded to eligible entities 
     receiving grants under this section in the next fiscal year.
       ``(g) Financial Responsibility.--The financial records of 
     each eligible entity and eligible public charter school 
     receiving a grant or subgrant, respectively, under this 
     section shall be maintained in accordance with generally 
     accepted accounting principles and shall be subject to an 
     annual audit by an independent public accountant.
       ``(h) National Evaluation.--
       ``(1) National evaluation.--From the amounts appropriated 
     under section 5200, the Secretary shall conduct an 
     independent, comprehensive, and scientifically sound 
     evaluation, by grant or contract and using the highest 
     quality research design available, of the impact of the 
     activities carried out under this section on--
       ``(A) student achievement, including State standardized 
     assessment scores and, if available, student academic 
     longitudinal growth (as described in subsection (c)(2)(A)(i)) 
     based on such assessments; and
       ``(B) other areas, as determined by the Secretary.
       ``(2) Report.--Not later than 4 years after the date of the 
     enactment of the All Students Achieving through Reform Act of 
     2013, and biannually thereafter, the Secretary shall submit 
     to Congress a report on the results of the evaluation 
     described in paragraph (1).
       ``(i) Reports.--Each eligible entity receiving a grant 
     under this section shall prepare and submit to the Secretary 
     the following:
       ``(1) Report.--A report that contains such information as 
     the Secretary may require concerning use of the grant funds 
     by the eligible entity, including the academic achievement of 
     the students attending eligible public charter schools as a 
     result of the grant. Such report shall be submitted before 
     the end of the 3-year period beginning on the date of 
     enactment of the All Students Achieving through Reform Act of 
     2013 and every 2 years thereafter.
       ``(2) Performance information.--Such performance 
     information as the Secretary may require for the national 
     evaluation conducted under subsection (h)(1).
       ``(j) Inapplicability.--The provisions of sections 5201 
     through 5209 shall not apply to the program under this 
     section.
       ``(k) Definitions.--In this section:
       ``(1) Adequate yearly progress.--The term `adequate yearly 
     progress' has the meaning given such term in a State's plan 
     in accordance with section 1111(b)(2)(C).
       ``(2) Administrative tasks, dissemination activities, and 
     outreach.--The term `administrative tasks, dissemination 
     activities, and outreach' includes costs and activities 
     associated with--
       ``(A) recruiting and selecting students to attend eligible 
     public charter schools;
       ``(B) outreach to parents of students enrolled in 
     identified schools or schools with low graduation rates;
       ``(C) providing information to such parents and school 
     officials at such schools regarding eligible public charter 
     schools receiving subgrants under subsection (e);
       ``(D) necessary oversight of the grant program under this 
     section; and
       ``(E) initiatives and activities to disseminate the best 
     practices, programs, or strategies learned in eligible public 
     charter schools to other public schools operating in the 
     State where the eligible entity intends to award subgrants 
     under this section.
       ``(3) Charter school.--The term `charter school' means--
       ``(A) a charter school, as defined in section 5211(1); or
       ``(B) a school that meets the requirements of such section, 
     except for subparagraph (D) of the section, and provides 
     prekindergarten or adult education services.
       ``(4) Eligible entity.--The term `eligible entity' means--
       ``(A) a State educational agency;
       ``(B) an authorized public chartering agency;
       ``(C) a local educational agency that has authorized or is 
     planning to authorize a public charter school;
       ``(D) an organization (including a nonprofit charter 
     management organization) that has an organizational mission 
     and record of success supporting the replication and 
     expansion of high-quality charter schools and is--
       ``(i) described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 (26 U.S.C. 501(c)(3)); and
       ``(ii) exempt from tax under section 501(a) of such Code 
     (26 U.S.C. 501(a)); or
       ``(E) a consortium of organizations described in 
     subparagraph (D).
       ``(5) Eligible public charter school.--The term `eligible 
     public charter school' means a charter school that has no 
     significant compliance issue and shows evidence of strong 
     academic results for the past three years (or over the life 
     of the school if the school has been open for fewer than 
     three years), based on--
       ``(A) increased student academic achievement and attainment 
     for all students, including, as applicable, educationally 
     disadvantaged students served by the charter school;
       ``(B)(i) demonstrated success in closing historic 
     achievement gaps for the subgroups of students described in 
     section 1111(b)(2)(C)(v)(II) at the charter school or, in the 
     case of a school in a State for which the Secretary has 
     granted a waiver under section 9401, demonstrated success in 
     closing achievement gaps among groups of students, as 
     determined by the Secretary in accordance with any 
     accountability standards that the Secretary has authorized 
     through such waiver; or
       ``(ii) no significant achievement gaps between any of the 
     subgroups of students described in section 
     1111(b)(2)(C)(v)(II) (or as determined by the Secretary in 
     accordance with any accountability standards authorized 
     through a waiver under section 9401) and significant gains in 
     student achievement with all populations of students served 
     by the charter school; and
       ``(C) results (including, where applicable and available, 
     performance on statewide tests, attendance and retention 
     rates, secondary school graduation rates, and attendance and 
     persistence rates at institutions of higher education) for 
     low-income and other educationally disadvantaged students 
     served by the charter school that are above the average 
     achievement results for such students in the State.
       ``(6) Graduation rate.--The term `graduation rate' has the 
     meaning given the term in

[[Page S3863]]

     section 1111(b)(2)(C)(vi), as clarified in section 
     200.19(b)(1) of title 34, Code of Federal Regulations.
       ``(7) Identified school.--The term `identified school' 
     means a school--
       ``(A) identified for school improvement, corrective action, 
     or restructuring under paragraph (1), (7), or (8) of section 
     1116(b); or
       ``(B) in the case of a school for which the Secretary has 
     waived the applicability of such paragraphs pursuant to 
     section 9401, identified as a priority school, a focus 
     school, or a school otherwise in need of significant 
     assistance, as determined by the accountability standards 
     authorized by such waiver
       ``(8) Local educational agency.--The term `local 
     educational agency' includes any charter school that is a 
     local educational agency, as determined by State law.
       ``(9) Low-income student.--The term `low-income student' 
     means a student eligible for free or reduced price lunches 
     under the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1751 et seq.).
       ``(10) School food authority.--The term `school food 
     authority' has the meaning given the term in section 250.3 of 
     title 7, Code of Federal Regulations (or any corresponding 
     similar regulation or ruling).
       ``(11) School year.--The term `school year' has the meaning 
     given such term in section 12(d) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1760(d)).
       ``(12) Traditional public school.--The term `traditional 
     public school' does not include any charter school, as 
     defined in section 5211.''.
       (b) Authorization of Appropriations.--Part B of title V of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7221 et seq.) is amended--
       (1) by striking section 5231; and
       (2) by inserting before subpart 1 the following:

     ``SEC. 5200. AUTHORIZATION OF APPROPRIATIONS FOR SUBPARTS 1 
                   AND 2.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out subparts 1 and 2, $700,000,000 for fiscal year 
     2014 and such sums as may be necessary for each of the 5 
     succeeding fiscal years.
       ``(b) Allocation.--In allocating funds appropriated under 
     this section for any fiscal year, the Secretary shall 
     consider--
       ``(1) the relative need among the programs carried out 
     under sections 5202, 5205, 5210, and subpart 2; and
       ``(2) the quality of the applications submitted for such 
     programs.''.
       (c) Conforming Amendments.--The Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended--
       (1) in section 2102(2) (20 U.S.C. 6602(2)), by striking 
     ``5210'' and inserting ``5211'';
       (2) in section 5204(e) (20 U.S.C. 7221c(e)), by striking 
     ``5210(1)'' and inserting ``5211(1)'';
       (3) in section 5211(1) (as redesignated by subsection 
     (a)(2)) (20 U.S.C. 7221i(1)), by striking ``The term'' and 
     inserting ``Except as otherwise provided, the term'';
       (4) in section 5230(1) (20 U.S.C. 7223i(1)), by striking 
     ``5210'' and inserting ``5211''; and
       (5) in section 5247(1) (20 U.S.C. 7225f(1)), by striking 
     ``5210'' and inserting ``5211''.
       (d) Table of Contents.--The table of contents in section 2 
     of the Elementary and Secondary Education Act of 1965 is 
     amended--
       (1) by inserting before the item relating to subpart 1 of 
     part B of title V the following:

``Sec. 5200. Authorization of appropriations for subparts 1 and 2.'';
       (2) by striking the items relating to sections 5210 and 
     5211;
       (3) by inserting after the item relating to section 5209 
     the following:

``Sec. 5210. Charter school expansion and replication.
``Sec. 5211. Definitions.'';
     and
       (4) by striking the item relating to section 5231.

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