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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2252 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2252

To amend the charter school program under the Elementary and Secondary 
                         Education Act of 1965.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2013

   Mr. Polis (for himself, Mr. Petri, Mr. Hinojosa, Mr. Paulsen, Mr. 
    Guthrie, Mrs. Davis of California, Mr. Delaney, and Mr. Schock) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
To amend the charter school program under the Elementary and Secondary 
                         Education Act of 1965.

    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 the ``All-STAR Act of 2013''.

SEC. 2. REFERENCES.

    Except as otherwise specifically provided, whenever in this Act a 
section or other provision is amended or repealed, such amendment or 
repeal shall be considered to be made to that section or other 
provision of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6301 et seq.).

SEC. 3. PURPOSE.

    Section 5201 (20 U.S.C. 7221) is amended to read as follows:

``SEC. 5201. PURPOSE.

    ``It is the purpose of this subpart to--
            ``(1) improve the United States education system and 
        educational opportunities for all Americans by supporting 
        innovation in public education in public school settings that 
        prepare students to compete and contribute to the global 
        economy;
            ``(2) provide financial assistance for the planning, 
        program design, and initial implementation of charter schools;
            ``(3) expand the number of high-quality charter schools 
        available to students across the Nation;
            ``(4) evaluate the impact of such schools on student 
        achievement, families, and communities, and share best 
        practices between charter schools and other public schools;
            ``(5) encourage States to provide support to charter 
        schools for facilities financing in an amount more nearly 
        commensurate to the amount the States have typically provided 
        for traditional public schools;
            ``(6) improve student services to increase opportunities 
        for students with disabilities, limited English proficient 
        students, and other traditionally underserved students to 
        attend charter schools and meet challenging State academic 
        achievement standards; and
            ``(7) support efforts to strengthen the charter school 
        authorizing process to improve performance management, 
        including transparency, monitoring, and evaluation of such 
        schools.''.

SEC. 4. PROGRAM AUTHORIZED.

    Section 5202 (20 U.S.C. 7221a) is amended to read as follows:

``SEC. 5202. PROGRAM AUTHORIZED.

    ``(a) In General.--This subpart authorizes the Secretary to carry 
out a charter school program that supports charter schools that serve 
elementary school and secondary school students by--
            ``(1) supporting the startup, replication, and expansion of 
        charter schools;
            ``(2) assisting charter schools in accessing credit to 
        acquire and renovate facilities for school use; and
            ``(3) carrying out national and local activities to 
        support--
                    ``(A) the development of high-quality charter 
                schools;
                    ``(B) the dissemination of best practices of 
                charter schools for all schools; and
                    ``(C) the evaluation of the impact of the program 
                on schools participating in the program.
    ``(b) Funding Allotment.--From the amount made available under 
section 5211 for a fiscal year, the Secretary shall--
            ``(1) reserve 12.5 percent to support charter school 
        facilities assistance under section 5204;
            ``(2) reserve not more than 2.5 percent to carry out the 
        technical assistance and best practices under section 5205(a) 
        and the evaluation under section 5205(b), of which 1 percent 
        shall be used to carry out such evaluation;
            ``(3) reserve not more than 20 percent to award grants for 
        local activities under section 5205(c); and
            ``(4) use the remaining amount after the Secretary reserves 
        funds under paragraphs (1) through (4) to carry out section 
        5203.
    ``(c) Prior Grants and Subgrants.--The recipient of a grant or 
subgrant under this subpart or subpart 2, as such subpart was in effect 
on the day before the date of enactment of the All Students Achieving 
through Reform Act of 2013, shall continue to receive funds in 
accordance with the terms and conditions of such grant or subgrant.''.

SEC. 5. GRANTS TO SUPPORT HIGH-QUALITY CHARTER SCHOOLS.

    Section 5203 (20 U.S.C. 7221b) is amended to read as follows:

``SEC. 5203. GRANTS TO SUPPORT HIGH-QUALITY CHARTER SCHOOLS.

    ``(a) Grants to Covered Entities.--
            ``(1) In general.--Subject to paragraph (2), from the 
        amount reserved under 5202(b)(5), the Secretary shall award 
        grants to covered entities having applications approved 
        pursuant to subsection (f) to enable such entities to--
                    ``(A) award subgrants to eligible applicants for--
                            ``(i) opening new charter schools;
                            ``(ii) replicating high-quality charter 
                        school models; or
                            ``(iii) expanding high-quality charter 
                        schools; and
                    ``(B) provide technical assistance to eligible 
                applicants and authorized public chartering agencies in 
                carrying out the activities described in paragraph (1) 
                and work with authorized public chartering agencies in 
                the State to improve authorizing quality.
            ``(2) Special rule.--In the case in which a covered entity 
        that is a State educational agency elects not to receive a 
        grant under this section or does not have an application 
        approved under subsection (f), the Secretary may award a grant 
        to an eligible applicant that--
                    ``(A) serves such State;
                    ``(B) submits an application to the Secretary that 
                would be approved pursuant to section 5205(c) if such 
                eligible applicant were to apply for a grant under such 
                section; and
                    ``(C) has not received a grant under such section 
                5205(c).
    ``(b) Uses of Funds for Covered Entities.--
            ``(1) In general.--A covered entity receiving a grant under 
        this section shall--
                    ``(A) use 90 percent of the grant funds to award 
                subgrants to eligible applicants, in accordance with 
                the quality charter school program described in the 
                covered entity's application approved pursuant to 
                subsection (f), for the purposes described in clauses 
                (i) through (iii) of subsection (a)(1)(A); and
                    ``(B) reserve 10 percent of such funds to carry out 
                the activities described in subsection (a)(1)(B), of 
                which not more than 30 percent may be used for 
                administrative costs which may include technical 
                assistance.
            ``(2) Contracts and grants.--A covered entity may use a 
        grant received under this section to carry out the activities 
        described in subparagraphs (A) and (B) of paragraph (1) 
        directly or through grants, contracts, or cooperative 
        agreements.
    ``(c) Program Periods; Peer Review; Grant Number and Amount; 
Diversity of Projects; Waivers.--
            ``(1) Program periods.--
                    ``(A) Grants.--A grant awarded by the Secretary to 
                a covered entity under this section shall be for a 
                period of not more than 3 years, except that the 
                covered entity may, at the discretion of the Secretary, 
                continue to expend grant funds after the end of such 3-
                year period to award subgrants in accordance with 
                subsection (b)(1)(A).
                    ``(B) Subgrants.--A subgrant awarded by a covered 
                entity to an eligible applicant under this section 
                shall be for a period of not more than 3 years.
            ``(2) Peer review.--The Secretary, and each covered entity 
        receiving a grant under this section, shall use a peer review 
        process to review applications for assistance under this 
        section.
            ``(3) Grant number and amount.--The Secretary shall ensure 
        that the number of grants awarded under this section and the 
        award amounts will allow for a sufficient number of new grants 
        to be awarded under this section for each succeeding fiscal 
        year.
            ``(4) Diversity of projects.--Each covered entity receiving 
        a grant under this section shall award subgrants under this 
        section in a manner that, to the extent possible, ensures that 
        such subgrants--
                    ``(A) are distributed throughout different areas, 
                including urban, suburban, and rural areas; and
                    ``(B) will assist charter schools representing a 
                variety of educational approaches.
            ``(5) Waivers.--The Secretary may waive any statutory or 
        regulatory requirement over which the Secretary exercises 
        administrative authority except any such requirement relating 
        to the elements of a charter school described in section 
        5210(1) or to an applicable civil rights requirement, if--
                    ``(A) the waiver is requested in an approved 
                application under this section; and
                    ``(B) the Secretary determines that granting such a 
                waiver will promote the purpose of this subpart.
    ``(d) Limitations.--
            ``(1) Grants.--A covered entity may not receive more than 1 
        grant under this section, unless the entity--
                    ``(A) for each charter school supported under the 
                first grant received under this section, provides 
                aggregate data demonstrating that the students enrolled 
                in the charter school have experienced demonstrated 
                improvement in academic achievement; and
                    ``(B) demonstrates that the funds provided under 
                the additional grant will be awarded to replicate high-
                quality charter school models or expand high-quality 
                charter schools.
            ``(2) Subgrants.--A charter school may not receive funds 
        from more than 1 subgrant awarded to an eligible applicant 
        under this section.
    ``(e) Applications.--A covered 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) Description of program.--A description of the covered 
        entity's objectives in carrying out a quality charter school 
        program under this section and how the objectives of the 
        program will be carried out, including a description--
                    ``(A) of how the entity--
                            ``(i) will support both new charter school 
                        startup and the expansion and replication of 
                        high-quality charter school models;
                            ``(ii) will inform eligible charter 
                        schools, developers, and authorized public 
                        chartering agencies of the availability of 
                        funds under the program;
                            ``(iii) will work with eligible applicants 
                        to ensure that the applicants access all 
                        Federal funds that they are eligible to 
                        receive, and help the charter schools supported 
                        by the applicants and the students attending 
                        the 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) in the case in which the entity is 
                        not a State educational agency--
                                    ``(I) will work with the State 
                                educational agency and the charter 
                                schools in the State to maximize 
                                charter school participation in Federal 
                                and State programs for charter schools; 
                                and
                                    ``(II) will work with the State 
                                educational agency to adequately 
                                operate the entity's program under this 
                                section, where applicable;
                            ``(v) will ensure eligible applicants that 
                        receive a subgrant under the entity's program 
                        are prepared to continue to operate the charter 
                        schools receiving the subgrant funds once the 
                        funds have expired;
                            ``(vi) will support charter schools 
                        participating in the entity's program and that 
                        are in local educational agencies with large 
                        numbers of schools that must comply with the 
                        requirements of section 1116(b);
                            ``(vii) will work with charter schools 
                        participating in the entity's program to 
                        promote inclusion of all students and support 
                        all students once they are enrolled to promote 
                        retention;
                            ``(viii) will work with such charter 
                        schools on recruitment practices, including 
                        efforts to engage groups that may otherwise 
                        have limited opportunities to participate in 
                        charter schools;
                            ``(ix) will share best and promising 
                        practices between charter schools and other 
                        public schools, including, where appropriate, 
                        instruction and professional development in 
                        science, math, technology, and engineering 
                        education;
                            ``(x) will ensure the charter schools they 
                        support can meet the educational needs of their 
                        students, including students with disabilities 
                        and limited English proficient students; and
                            ``(xi) will support efforts to increase 
                        quality initiatives, including meeting the 
                        quality authorizing elements described in 
                        paragraph (2)(E);
                    ``(B) of the extent to which the entity--
                            ``(i) is able to meet and carry out the 
                        priorities listed in subsection (f)(2); and
                            ``(ii) is working to develop or strengthen 
                        a cohesive statewide system to support the 
                        opening of new charter schools, replication of 
                        high-quality charter school models, and the 
                        expansion of high-quality charter schools;
                    ``(C) of how the entity will carry out the subgrant 
                competition, including--
                            ``(i) a description of the application each 
                        eligible applicant desiring to receive a 
                        subgrant will submit, including--
                                    ``(I) a description of the roles 
                                and responsibilities of eligible 
                                applicants, partner organizations, and 
                                management organizations, including the 
                                administrative and contractual roles 
                                and responsibilities;
                                    ``(II) a description of the quality 
                                controls agreed to between the eligible 
                                applicant and the authorized public 
                                chartering agency involved, such as a 
                                contract or performance agreement, and 
                                how a school's performance on the 
                                State's accountability system 
                                established under section 1111(b)(2)(A) 
                                will be a primary factor for renewal; 
                                and
                                    ``(III) a description of how the 
                                eligible applicant will solicit and 
                                consider input from parents and other 
                                members of the community on the 
                                planning, implementation, and operation 
                                of each charter school receiving funds 
                                under the entity's program; and
                            ``(ii) a description of how the entity will 
                        review applications;
                    ``(D) in the case of an entity that partners with 
                an outside organization to carry out the entity's 
                quality charter school program, in whole or in part, of 
                the roles and responsibilities of this partner;
                    ``(E) of how the entity will support charter 
                schools in providing for the transportation needs of 
                their students; and
                    ``(F) of how the entity will support diverse 
                charter school models, including models that serve 
                rural communities.
            ``(2) Assurances.--Assurances, including a description of 
        how the assurances will be met, that--
                    ``(A) each charter school receiving funds under the 
                entity's program will have a high degree of autonomy 
                over budget and operations;
                    ``(B) the entity will support charter schools in 
                meeting the educational needs of their students as 
                described in paragraph (1)(A)(x);
                    ``(C) the entity will ensure that the authorized 
                public chartering agency of any charter school that 
                receives funds under the entity's program--
                            ``(i) ensures that each charter school is 
                        meeting the obligations under this Act, part B 
                        of the Individuals with Disabilities Education 
                        Act, title VI of the Civil Rights Act of 1964, 
                        section 504 of the Rehabilitation Act of 1973, 
                        the Age Discrimination Act of 1975, the 
                        Americans with Disabilities Act of 1990, 
                        section 444 of the General Education Provisions 
                        Act (commonly known as the `Family Educational 
                        Rights and Privacy Act of 1974'), and title IX 
                        of the Education Amendments of 1972;
                            ``(ii) adequately monitors and hold 
                        accountable each charter school with respect to 
                        recruiting, enrolling, and meeting the needs of 
                        all students, including students with 
                        disabilities and limited English proficient 
                        students;
                            ``(iii) ensures that each charter school 
                        provides substantive outreach to students from 
                        low-income families in its plans to open new 
                        charter schools, replicate high-quality charter 
                        school models, or expand existing high-quality 
                        charter schools; and
                            ``(iv) ensures that each charter school 
                        solicits and considers input from parents and 
                        other members of the community on the 
                        implementation and operation of the school;
                    ``(D) the entity will provide adequate technical 
                assistance to eligible applicants to--
                            ``(i) meet the objectives described in 
                        clauses (vii) and (viii) of paragraph (1)(A) 
                        and paragraph (2)(B); and
                            ``(ii) enroll traditionally underserved 
                        students, including students with disabilities 
                        and limited English proficient students, to 
                        promote an inclusive education environment;
                    ``(E) the entity will promote quality authorizing, 
                such as through providing technical assistance, to 
                support all authorized public chartering agencies in 
                the State to improve the monitoring of their charter 
                schools, including by--
                            ``(i) assessing annual performance data of 
                        the schools, including, as appropriate, 
                        graduation rates and student growth; and
                            ``(ii) reviewing the schools' independent, 
                        annual audits of financial statements conducted 
                        in accordance with generally accepted 
                        accounting principles, and ensuring any such 
                        audits are publicly reported;
                    ``(F) the entity will work to ensure that charter 
                schools are included with the traditional public local 
                educational agencies in decision-making about the 
                public school system in the State; and
                    ``(G) the entity will ensure that each charter 
                school in the State make publicly available, consistent 
                with the dissemination requirements of the annual State 
                report card, the information parents need to make 
                informed decisions about the educational options 
                available to their children, including information on 
                the educational program, student support services, and 
                annual performance and enrollment data for the groups 
                of students described in section 1111(b)(2)(C)(v)(II).
            ``(3) Requests for waivers.--A request and justification, 
        meeting the requirements of subparagraphs (A) and (B) of 
        section 5203(c)(5), for waivers of any Federal statutory or 
        regulatory provisions that the entity believes are necessary 
        for the successful operation of the charter schools that will 
        receive funds under the entity's program under this section, 
        and a description of any State or local rules, generally 
        applicable to public schools, that will be waived, or otherwise 
        not apply to such schools.
    ``(f) Selection Criteria; Priority.--
            ``(1) Selection criteria.--The Secretary shall award grants 
        under this section to covered entities on the basis of the 
        quality of the applications submitted under subsection (e), 
        after taking into consideration--
                    ``(A) for covered entities described in paragraphs 
                (1) and (3) of subsection (i)--
                            ``(i) the degree of flexibility afforded by 
                        the State's public charter school law and how 
                        the entity will work to maximize the 
                        flexibility provided to charter schools under 
                        the law;
                            ``(ii) the ambitiousness of the entity's 
                        objectives for the quality charter school 
                        program carried out under this section;
                            ``(iii) the quality of the strategy for 
                        assessing achievement of those objectives;
                            ``(iv) the likelihood that the eligible 
                        applicants receiving subgrants under the 
                        program will meet those objectives and improve 
                        educational results for students;
                            ``(v) the proposed number of new charter 
                        schools to be opened, and the proposed number 
                        of high-quality charter schools to be 
                        replicated or expanded under the program;
                            ``(vi) the entity's plan to--
                                    ``(I) adequately monitor the 
                                eligible applicants receiving subgrants 
                                under the entity's program; and
                                    ``(II) work with the authorized 
                                public chartering agencies involved to 
                                avoid duplication of work for the 
                                charter schools and authorized public 
                                chartering agencies;
                            ``(vii) the entity's plan to provide 
                        adequate technical assistance, as described in 
                        the entity's application under subsection (e), 
                        for the eligible applicants receiving subgrants 
                        under the entity's program under this section;
                            ``(viii) the entity's plan to support 
                        quality authorizing efforts in the State, 
                        consistent with the objectives described in 
                        clause (ii); and
                            ``(ix) the entity'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;
                    ``(B) for covered entities described in paragraphs 
                (2) and (4) of subsection (i)--
                            ``(i) the ambitiousness of the entity's 
                        objectives for the quality charter school 
                        program carried out under this section;
                            ``(ii) the quality of the strategy for 
                        assessing achievement of those objectives;
                            ``(iii) the likelihood that the eligible 
                        applicants receiving subgrants under the 
                        entity's program will meet those objectives and 
                        improve educational results for students;
                            ``(iv) the proposed number of new charter 
                        schools to be opened, and the proposed number 
                        of high-quality charter schools to be 
                        replicated or expanded under the program;
                            ``(v) the entity's plan to adequately 
                        monitor the eligible applicants receiving 
                        subgrants under the entity's program;
                            ``(vi) the entity's plan to provide 
                        adequate technical assistance, as described in 
                        the entity's application under subsection (e), 
                        for the eligible applicants receiving subgrants 
                        under the entity's program under this section;
                            ``(vii) the extent to which the entity has 
                        policies and procedures to ensure that charter 
                        schools in the area served by the entity--
                                    ``(I) have equitable access to 
                                facilities available to other public 
                                schools in such area; or
                                    ``(II) are not denied access to 
                                available public school facilities in 
                                such area; and
                            ``(viii) the extent to which the entity 
                        demonstrates support for public school choice 
                        and provides parents with information regarding 
                        charter school alternatives; and
                    ``(C) for covered entities described in subsection 
                (i)(2), in addition to taking into consideration the 
                items described in clauses (i) through (viii) of 
                subparagraph (B), the entity's record of success in 
                authorizing and supporting high-quality charter 
                schools.
            ``(2) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to covered entities to the extent 
        that such entities meet the following criteria:
                    ``(A) States.--For covered entities described in 
                paragraphs (1) and (3) of subsection (i):
                            ``(i) The entity is located in a State that 
                        has a quality authorized public chartering 
                        agency that is an entity other than a local 
                        educational agency.
                            ``(ii) The entity is located in a State 
                        that does not impose any limitation on the 
                        number or percentage of charter schools that 
                        may exist or the number or percentage of 
                        students that may attend charter schools in the 
                        State.
                            ``(iii) The entity is located in a State 
                        that ensures equitable financing, as compared 
                        to traditional public schools, for charter 
                        schools and students in a prompt manner.
                            ``(iv) The entity is located in a State 
                        that uses charter schools and best practices 
                        from charter schools to help improve struggling 
                        schools and local educational agencies.
                            ``(v) The entity partners with an 
                        organization that has a demonstrated record of 
                        success in developing management organizations 
                        to support the development of charter schools 
                        in the State.
                            ``(vi) The entity demonstrates quality 
                        policies and practices to support and monitor 
                        charter schools through factors including--
                                    ``(I) the proportion of high-
                                quality charter schools in the State; 
                                and
                                    ``(II) the proportion of charter 
                                schools enrolling, at a rate similar to 
                                traditional public schools, 
                                traditionally underserved students, 
                                including students with disabilities 
                                and limited English proficient 
                                students.
                            ``(vii) The entity supports charter schools 
                        that support at-risk students through 
                        activities such as dropout prevention or 
                        dropout recovery.
                            ``(viii) The entity authorizes all charter 
                        schools in the State to serve as school food 
                        authorities.
                            ``(ix) The entity is located in a State 
                        that authorizes any charter school to be a 
                        local educational agency in accordance with 
                        State law.
                            ``(x) The entity is located in a State that 
                        allows appeals of decisions of authorized 
                        public chartering agencies.
                            ``(xi) The entity is located in a State 
                        that funds local educational agencies based on 
                        an average daily enrollment or attendance count 
                        or based on more than one annual enrollment 
                        count.
                            ``(xii) The entity is located in a State 
                        with a law or policy such that per pupil 
                        revenues are shared between local educational 
                        agencies to reflect split student enrollment in 
                        2 or more part-time educational programs 
                        operated or authorized by different local 
                        educational agencies.
                            ``(xiii) The entity has taken steps to 
                        ensure that all authorized public chartering 
                        agencies implement practices that comply with 
                        nationally recognized best practices for 
                        quality charter school authorizing.
                            ``(xiv) The entity has policies and 
                        procedures to ensure that charter schools 
                        identified as failing under the accountability 
                        system established under section 1111(b)(2)(A) 
                        of the State in which the entity is located are 
                        closed, do not have their charters renewed, or 
                        are not otherwise allowed to continue 
                        operating, except in special circumstances 
                        determined by the State for charter schools--
                                    ``(I) designated through a State 
                                system as alternative education 
                                programs with an explicit mission to 
                                serve students who have failed in 
                                traditional systems or large 
                                proportions of extremely at-risk 
                                students, such as students with 
                                moderate to profound disabilities or 
                                incarcerated youth; and
                                    ``(II) that are required to comply 
                                with the accountability system 
                                established under section 1111(b)(2)(A) 
                                of the State.
                    ``(B) Local educational agencies and authorized 
                public chartering agencies.--For covered entities 
                described in paragraphs (2) and (4) of subsection (i):
                            ``(i) The entity does not impose, to the 
                        extent allowable under State law, any 
                        limitation on the number or percentage of 
                        charter schools that may exist or the number or 
                        percentage of students that may attend charter 
                        schools.
                            ``(ii) The entity provides, to the extent 
                        allowed under State law, equitable financing, 
                        as compared to traditional public schools, for 
                        charter schools and students who attend such 
                        schools in a prompt manner.
                            ``(iii) The entity demonstrates quality 
                        policies and practices to support and monitor 
                        charter schools through factors, including the 
                        proportion of charter schools enrolling, at a 
                        rate similar to traditional public schools, 
                        traditionally underserved students, including 
                        students with disabilities and limited English 
                        proficient students.
                            ``(iv) The entity supports charter schools 
                        that support at-risk students through 
                        activities such as dropout prevention or 
                        dropout recovery.
                            ``(v) The entity authorizes all charter 
                        schools it authorizes to serve as school food 
                        authorities to the extent allowed under State 
                        law.
                            ``(vi) The entity has taken steps to ensure 
                        that it complies with nationally recognized 
                        best practices for quality charter school 
                        authorizing.
                            ``(vii) The entity ensures that charter 
                        schools identified as failing under the 
                        accountability system established under section 
                        1111(b)(2)(A) of the State in which the entity 
                        is located are closed, do not have their 
                        charter renewed, or are otherwise allowed to 
                        continue operating, except in special 
                        circumstances determined by the State for 
                        charter schools--
                                    ``(I) designated through a State 
                                system as alternative education 
                                programs with an explicit mission to 
                                serve students who have failed in 
                                traditional systems or large 
                                proportions of extremely at-risk 
                                students, such as students with 
                                moderate to profound disabilities or 
                                incarcerated youth; and
                                    ``(II) that are required to comply 
                                with the accountability system 
                                established under section 1111(b)(2)(A) 
                                of the State.
                            ``(viii) The entity has authorized not less 
                        than 3 high-quality charter schools.
    ``(g) Local Uses of Funds.--An eligible applicant receiving a 
subgrant under this section shall use such funds to open new charter 
schools, replicate high-quality charter school models, or expand 
existing high-quality charter schools, which may include--
            ``(1) securing a school building through lease or purchase 
        and providing the necessary renovations to ensure a strong 
        school opening or to meet the needs of increased student 
        enrollment;
            ``(2) paying startup costs associated with hiring teachers 
        to ensure strong school starts;
            ``(3) providing transportation to students to and from 
        charter schools opened, replicated, or expanded under this 
        subsection, but only in the case of an applicant that 
        demonstrates the capability to continue providing such 
        transportation after the expiration of the subgrant funds;
            ``(4) purchasing instructional materials, implementing 
        teacher and principal professional development programs, and 
        hiring additional other staff for such charter schools; and
            ``(5) supporting any other necessary startup and expansion 
        activities with respect to such charter schools.
    ``(h) Reporting Requirements.--Each covered entity receiving a 
grant under this section shall submit to the Secretary, at the end of 
each year of the 3-year grant period and at the end of such grant 
period, a report on--
            ``(1) the number of students served by each subgrant 
        awarded under this section and, if applicable, how many new 
        students were served during each year of the subgrant period;
            ``(2) the number of subgrants awarded under this section to 
        carry out each of the following--
                    ``(A) the opening of new charter schools;
                    ``(B) the replication of high-quality charter 
                school models; and
                    ``(C) the expansion of high-quality charter 
                schools;
            ``(3) the progress the entity made toward meeting the 
        priorities described in subsection (f)(2), as applicable;
            ``(4) how the entity met the objectives of the quality 
        charter school program described in the entity's application 
        under subsection (e);
            ``(5) how the entity complied with, and ensured that 
        eligible applicants complied with, the assurances described in 
        the entity's application; and
            ``(6) how the entity worked with authorized public 
        chartering agencies, including how the agencies worked with the 
        management company or leadership of the schools that received 
        subgrants under this section.
    ``(i) Covered Entity Defined.--For purposes of this section, the 
term `covered entity' means--
            ``(1) a State educational agency;
            ``(2) an authorized public chartering agency that is 
        located in a State in which neither the State educational 
        agency nor the Governor of the State has received a grant under 
        this section;
            ``(3) a Governor of a State; or
            ``(4) a local educational agency that--
                    ``(A) is not a charter school that is considered a 
                local educational agency under State law; and
                    ``(B) is located in a State in which neither the 
                State educational agency nor the Governor of the State 
                has received a grant under this section.''.

SEC. 6. FACILITIES FINANCING ASSISTANCE.

    Section 5204 (20 U.S.C. 7221c) is amended to read as follows:

``SEC. 5204. FACILITIES FINANCING ASSISTANCE.

    ``(a) Grants to Eligible Entities.--
            ``(1) In general.--The Secretary shall use not less than 65 
        percent of the amount reserved under section 5202(b)(1) to 
        award grants to eligible entities that have the highest-quality 
        applications approved under subsection (d), after considering 
        the diversity of such applications, to demonstrate innovative 
        methods of assisting charter schools to address the cost of 
        acquiring, constructing, and renovating facilities by enhancing 
        the availability of loan or bond financing.
            ``(2) Eligible entity defined.--For purposes of this 
        section, the term `eligible entity' means--
                    ``(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.--In awarding grants under subsection 
(a), the Secretary shall award multiple grants of 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.--To receive a grant under subsection (a), 
        an eligible entity shall submit to the Secretary an application 
        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 
                proposed to be undertaken 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;
                    ``(F) a description of how the eligible entity will 
                encourage energy-efficient school building practices;
                    ``(G) 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 
                the charter schools need to have adequate facilities; 
                and
                    ``(H) such other information as the Secretary may 
                reasonably require.
    ``(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 both 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.
    ``(f) Reserve Account.--
            ``(1) Use of funds.--To assist charter schools to 
        accomplish 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) of this 
        section) 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 
                subsection (e).
                    ``(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 such paragraph.
    ``(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 its operations and 
                activities under this section.
                    ``(B) Contents.--Each annual report submitted under 
                subparagraph (A) shall include--
                            ``(i) a copy of the most recent financial 
                        statements, and any accompanying opinion on 
                        such statements, prepared by the independent 
                        public accountant reviewing the financial 
                        records of the eligible entity;
                            ``(ii) a copy of any report made on an 
                        audit of the financial records of the eligible 
                        entity that was conducted under paragraph (1) 
                        during the reporting period;
                            ``(iii) an evaluation by the eligible 
                        entity of the effectiveness of its use of the 
                        Federal funds provided under subsection (a) in 
                        leveraging private funds;
                            ``(iv) a listing and description of the 
                        charter schools served during the reporting 
                        period, including the amount of funds used by 
                        each school, the type of project facilitated by 
                        the grant, and the type of assistance provided 
                        to the charter schools;
                            ``(v) a description of the activities 
                        carried out by the eligible entity to assist 
                        charter schools in meeting the objectives set 
                        forth in subsection (e); and
                            ``(vi) a description of the characteristics 
                        of lenders and other financial institutions 
                        participating in the activities undertaken 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 subsection (f)(1).
            ``(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 5202(b)(1) 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 in the second such year;
                            ``(iii) 60 percent in the third such year;
                            ``(iv) 40 percent in the fourth such year; 
                        and
                            ``(v) 20 percent in the fifth such year.
                    ``(D) State share.--A State receiving a grant under 
                this subsection may partner with 1 or more 
                organizations to provide up to 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 funds provided to charter schools 
                increases with each successive grant.
            ``(3) Use of funds.--
                    ``(A) In general.--A State that receives a grant 
                under this subsection shall use the funds made 
                available through the grant to establish or enhance, 
                and administer, a per-pupil facilities aid program for 
                charter schools in the State of the applicant.
                    ``(B) Evaluations; technical assistance; 
                dissemination.--From the amount made available to a 
                State through a grant under this subsection for a 
                fiscal year, the State may reserve not more than 5 
                percent to carry out evaluations, to provide technical 
                assistance, and to disseminate information.
                    ``(C) Supplement, not supplant.--Funds made 
                available under this subsection shall be used to 
                supplement, and not supplant, State, and local public 
                funds expended to provide per pupil facilities aid 
                programs, operations financing programs, or other 
                programs, for charter schools.
            ``(4) Requirements.--
                    ``(A) Voluntary participation.--No State may be 
                required to participate in a program carried out under 
                this subsection.
                    ``(B) State law.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), 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.--Notwithstanding 
                        clause (i), a State that is required under 
                        State law to provide its charter schools with 
                        access to adequate facility space, but which 
                        does not have a per-pupil facilities aid 
                        program for charter schools specified in State 
                        law, 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. 7. NATIONAL ACTIVITIES.

    Section 5205 (20 U.S.C. 7221d) is amended to read as follows:

``SEC. 5205. NATIONAL ACTIVITIES AND GRANTS FOR LOCAL ACTIVITIES.

    ``(a) Technical Assistance and Best Practices.--From the amount 
reserved under section 5202(b)(2) for carrying out this subsection, the 
Secretary shall--
            ``(1) disseminate technical assistance to covered entities 
        in awarding subgrants under section 5203, and eligible entities 
        and States receiving grants under section 5204; and
            ``(2) disseminate best practices.
    ``(b) Evaluation.--From the amount reserved under section 
5202(b)(2) for carrying out this subsection, the Secretary shall, in 
partnership with the Institute for Education Sciences--
            ``(1) develop relevant performance metrics, including 
        student outcome data, for covered entities, eligible 
        applicants, and charter schools that receive funds under 
        section 5203;
            ``(2) assist such covered entities, eligible applicants, 
        and charter schools in collecting and submitting, on an annual 
        basis, data on such performance metrics to the Secretary;
            ``(3) evaluate the performance of and conduct related 
        research to--
                    ``(A) determine which policies and practices of 
                covered entities, eligible applicants, and charter 
                schools have the greatest impact on student 
                achievement;
                    ``(B) drive continuous improvement with respect to 
                relevant performance metrics, including student outcome 
                data, for covered entities, eligible applicants, and 
                charter schools that receive funds under section 5203; 
                and
                    ``(C) inform the distribution of funds to higher 
                performing covered entities, eligible applicants, and 
                charter schools; and
            ``(4) disseminate the findings of the research, evaluation, 
        and data collection under this subsection to maximize lessons 
        learned for other educators, charter schools, and policy 
        makers.
    ``(c) Grants for Local Activities.--
            ``(1) In general.--From the amount reserved under section 
        5202(b)(3), the Secretary shall make grants, on a competitive 
        basis, to eligible applicants for the purpose of carrying out 
        the activities described in section 5202(a)(1), clauses (i) 
        through (iii) of section 5203(a)(1)(A), and section 5203(g).
            ``(2) Terms and conditions.--Except as otherwise provided 
        in this subsection, each grant awarded under this subsection 
        shall have the same terms and conditions as a grant awarded to 
        covered entities under section 5203, including the grant 
        limitations described in subparagraphs (A) and (B) in section 
        5203(d)(1), except that--
                    ``(A) a charter school that has previously used 
                funds received under this subpart for planning or 
                charter school program design to open a new charter 
                school may not use funds under this subsection for such 
                planning or program design; and
                    ``(B) notwithstanding subparagraph (A), an eligible 
                applicant that is a charter management organization may 
                receive more than 1 grant under this subsection during 
                a grant period to expand a high-quality charter school, 
                replicate a high-quality charter school model, or open 
                or one or more high-quality charter schools that are 
                based on the charter school model for which the 
                eligible applicant has presented evidence of success to 
                the Secretary.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) the term `charter management organization' a 
                nonprofit organization, other nonprofit entity, or a 
                group or consortium of such organizations or entities 
                that--
                            ``(i) operates, manages, or oversees 
                        multiple charter schools by centralizing or 
                        sharing certain functions and resources among 
                        such schools; or
                            ``(ii) desires to open, replicate, or 
                        expand a high-quality charter school.
                    ``(B) the term `eligible applicant' means--
                            ``(i) an eligible applicant (as defined in 
                        section 5210) that has not received a grant or 
                        subgrant under section 5203; or
                            ``(ii) a charter management organization.
    ``(d) Contracts and Grants.--The Secretary may carry out any of the 
activities described in this section directly or through grants, 
contracts, or cooperative agreements.''.

SEC. 8. RECORDS TRANSFER.

    Section 5208 (20 U.S.C. 7221g) is amended--
            (1) by inserting ``as quickly as possible and'' before ``to 
        the extent practicable''; and
            (2) by striking ``section 602'' and inserting ``section 
        602(14)''.

SEC. 9. DEFINITIONS.

    Section 5210 (20 U.S.C. 7221i) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (H) by inserting ``(which, if 
                authorized under the State law of the school and the 
                school's charter agreement, may be a lottery that gives 
                added weight to students eligible for free or reduced 
                price lunch under the Richard B. Russell National 
                School Lunch Act)'' after ``lottery'';
                    (B) by striking ``and'' at the end of subparagraph 
                (K);
                    (C) by striking the period at the end of 
                subparagraph (L) and inserting ``; and''; and
                    (D) by adding at the end, the following:
                    ``(M) may serve prekindergarten or post secondary 
                students.'';
            (2) in paragraph (3)(B), by striking ``under section 
        5203(d)(3)''; and
            (3) by adding at the end the following:
            ``(5) Expansion of a high-quality charter school.--The term 
        `expansion of a high-quality charter school' means 
        significantly increasing the enrollment of a high-quality 
        charter school or adding 1 or more grades to such school.
            ``(6) High-quality charter school.--The term `high-quality 
        charter school' means a charter school that--
                    ``(A) shows evidence of strong academic results, 
                including through--
                            ``(i) the percentage of students in the 
                        proficient or advanced levels of achievements 
                        on the State academic assessments required 
                        under section 1111(b)(3), compared to 
                        demographically similar schools in the State;
                            ``(ii) the average student academic, 
                        longitudinal growth from one school year to 
                        next school year, if available and as 
                        determined by the State, on the State academic 
                        assessments required under section 1111(b)(3) 
                        that is above such growth in demographically 
                        similar schools in the State;
                            ``(iii) in the case of a charter school 
                        that is a secondary school, high school 
                        graduation rates; and
                            ``(iv) college attendance and persistence 
                        rates, when available;
                    ``(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 and attainment 
                for all students served by the charter school; and
                    ``(D) has demonstrated success in--
                            ``(i) increasing student academic 
                        achievement as described in subparagraph (A) 
                        for each group of students described in section 
                        1111(b)(2)(C)(v)(II) and served by the charter 
                        school, 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; and
                            ``(ii) closing achievement gaps between 
                        each such group and all populations served by 
                        the charter school.
            ``(7) High-quality charter school model.--The term `high-
        quality charter school model' means a high-quality charter 
        school that has the capability of opening another such charter 
        school under an existing charter, such as a feeder middle 
        school or a secondary school that a middle school feeds 
        students into.''.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    Section 5211 (20 U.S.C. 7221j) is amended to read as follows:

``SEC. 5211. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$330,000,000 for fiscal year 2014 and each of the 5 succeeding fiscal 
years.''.

SEC. 11. CONFORMING AMENDMENTS.

    (a) Repeal.--Subpart 2 of part B of title V (20 U.S.C. 7223 et 
seq.) is repealed.
    (b) Table of Contents.--The table of contents in section 2 is 
amended--
            (1) by striking the item relating to section 5203 and 
        inserting the following:

``Sec. 5203. Grants to support high-quality charter schools.'';
            (2) by striking the item relating to section 5204 and 
        inserting the following:

``Sec. 5204. Facilities Financing Assistance.'';
        and
            (3) by striking subpart 2 of part B of title V.
                                 <all>
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