[Congressional Record Volume 161, Number 104 (Tuesday, July 7, 2015)]
[Senate]
[Pages S4782-S4789]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2097. Mr. BROWN submitted an amendment intended to be proposed to
amendment SA 2089 submitted by Mr. Alexander (for himself and Mrs.
Murray) to the bill S. 1177, to reauthorize
[[Page S4783]]
the Elementary and Secondary Education Act of 1965 to ensure that every
child achieves; which was ordered to lie on the table; as follows:
Beginning on page 494, strike line 1 and all that follows
through page 544, line 9, and insert the following:
SEC. 5002. PUBLIC CHARTER SCHOOLS.
Part A of title V (20 U.S.C. 7221 et seq.), as redesignated
by section 5001(5), is amended--
(1) by striking sections 5101 through 5105, as redesignated
by section 5001(7), 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 section
5103A and section 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 Every Child
Achieves 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
[[Page S4784]]
``(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
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 schools' 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.
[[Page S4785]]
``(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 1114(a)(1)(A);
``(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
[[Page S4786]]
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, as defined in section
1111(b)(3)(A).
``(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 Every Child Achieves Act, 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'.
[[Page S4787]]
``(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)(B)(xi); 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 Every
Child Achieves 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.
[[Page S4788]]
``(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.--In accordance with the
method of determination described in section 1117, 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 the amount 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(a)(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 Every Child Achieves 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 responding to--
``(1) 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) 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.''.
(2) in section 5106 (20 U.S.C. 7221e), as redesignated by
section 5001(7), 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.'';
(3) in section 5108 (20 U.S.C. 7221g), as redesignated by
section 5001(7), by inserting ``as quickly as possible and''
before ``to the extent practicable'';
(4) in section 5109 (20 U.S.C. 7221f), as redesignated by
section 5001(7), by striking ``authorized public chartering
agency shall ensure that implementation of this subpart'' and
inserting ``charter school authorizer
[[Page S4789]]
shall ensure that implementation of this part''; and
(5) by striking sections 5110 and 5111 (20 U.S.C. 7221i;
7221j), as redesignated by section 5001(7) 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, as defined in
section 1111(b)(3)(A) (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, as
defined in section 1111(b)(3)(A) (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, as defined in section 1111(b)(3)(A),
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 Every Child Achieves 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 years 2016 and
for each of the next 5 succeeding fiscal years.''.
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