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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1083 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1083

 To provide high-quality public charter school options for students by 
     enabling such public charter schools to expand and replicate.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2013

 Mr. Durbin (for himself and Mr. Kirk) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
 To provide high-quality public charter school options for students by 
     enabling such public charter schools to expand and replicate.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. CHARTER SCHOOL EXPANSION AND REPLICATION.

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

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

    ``(a) Purpose.--It is the purpose of this section to support State 
efforts to expand and replicate high-quality public charter schools to 
enable such schools to serve additional students, with a priority to 
serve those students who attend identified schools or schools with a 
low graduation rate.
    ``(b) Support for Proven Charter Schools and Increasing the Supply 
of High-Quality Charter Schools.--
            ``(1) Grants authorized.--From the amounts appropriated 
        under section 5200 for any fiscal year, the Secretary shall 
        award grants, on a competitive basis, to eligible entities to 
        enable the eligible entities to make subgrants to eligible 
        public charter schools under subsection (e)(1) and carry out 
        the other activities described in subsection (e), in order to 
        allow the eligible public charter schools to serve additional 
        students through the expansion and replication of such schools.
            ``(2) Amount of grants.--In determining the grant amount to 
        be awarded under this subsection to an eligible entity, the 
        Secretary shall consider--
                    ``(A) the number of eligible public charter schools 
                under the jurisdiction or in the service area of the 
                eligible entity that are operating;
                    ``(B) the number of new openings for students that 
                could be created in such schools with such grant;
                    ``(C) the number of students attending identified 
                schools or schools with a low graduation rate in the 
                State or area where an eligible entity intends to 
                replicate or expand eligible public charter schools; 
                and
                    ``(D) the success of the eligible entity in 
                overseeing public charter schools and the likelihood of 
                continued or increased success because of the grant 
                under this section.
            ``(3) Duration of grants.--
                    ``(A) In general.--A grant under this section shall 
                be for a period of not more than 3 years, except that--
                            ``(i) an eligible entity receiving such 
                        grant may, at the discretion of the Secretary, 
                        continue to expend grant funds after the end of 
                        the grant period; and
                            ``(ii) the Secretary may renew such grant 
                        for 1 additional 2-year period, if the 
                        Secretary determines that the eligible entity 
                        is meeting the goals of the grant.
                    ``(B) Subsequent grants.--An eligible entity that 
                has received a grant under this section may receive 
                subsequent grants under this section.
    ``(c) Application Requirements.--
            ``(1) Application requirements.--To be considered for a 
        grant under this section, an eligible entity shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(2) Contents.--The application described in paragraph (1) 
        shall include, at a minimum, the following:
                    ``(A) Record of success.--Documentation of the 
                record of success of the eligible entity in overseeing 
                or operating public charter schools, including--
                            ``(i) the performance of the students of 
                        such public charter schools on the student 
                        academic assessments described in section 
                        1111(b)(3) of the State where such school is 
                        located (including a measurement of the 
                        students' average academic longitudinal growth 
                        at each such school, if such measurement is 
                        required by a Federal or State law applicable 
                        to the entity), disaggregated by--
                                    ``(I) economic disadvantage;
                                    ``(II) race and ethnicity;
                                    ``(III) disability status; and
                                    ``(IV) status as a student with 
                                limited English proficiency;
                            ``(ii)(I) the status of such schools in 
                        making adequate yearly progress, as defined in 
                        a State's plan in accordance with section 
                        1111(b)(2)(C) or, in the case of schools for 
                        which the Secretary has waived the 
                        applicability of such section pursuant to the 
                        authority under section 9401, the status of 
                        such schools under the accountability standards 
                        authorized by such waiver; and
                            ``(II) the status of such schools as 
                        identified schools;
                            ``(iii) documentation of demonstrated 
                        success by such public charter schools in 
                        closing historic achievement gaps between 
                        groups of students; and
                            ``(iv) in the case of such public charter 
                        schools that are secondary schools--
                                    ``(I) the number of students 
                                enrolled in dual enrollment, Advanced 
                                Placement, International Baccalaureate, 
                                or other college level courses;
                                    ``(II) the number of students 
                                earning a professional certificate or 
                                license through the school;
                                    ``(III) student graduation rates; 
                                and
                                    ``(IV) rates of student acceptance, 
                                enrollment, and persistence in 
                                institutions of higher education, where 
                                possible.
                    ``(B) Plan.--A plan for--
                            ``(i) replicating and expanding eligible 
                        public charter schools operated or overseen by 
                        the eligible entity;
                            ``(ii) identifying eligible public charter 
                        schools, or networks of eligible public charter 
                        schools, to receive subgrants under this 
                        section;
                            ``(iii) increasing the number of openings 
                        in eligible public charter schools for students 
                        attending identified schools and schools with a 
                        low graduation rate;
                            ``(iv) ensuring that eligible public 
                        charter schools receiving a subgrant under this 
                        section enroll students through a random 
                        lottery for admission, unless the charter 
                        school is using the subgrant to expand the 
                        school to serve additional grades, in which 
                        case such school may reserve seats in the 
                        additional grades for--
                                    ``(I) each student enrolled in the 
                                grade preceding each such additional 
                                grade;
                                    ``(II) siblings of students 
                                enrolled in the charter school, if such 
                                siblings desire to enroll in such 
                                grade; and
                                    ``(III) children of the charter 
                                school's founders, staff, or employees;
                            ``(v)(I) in the case of an eligible entity 
                        described in subparagraph (A) or (C) of 
                        subsection (k)(4), the manner in which the 
                        eligible entity will work with identified 
                        schools and schools with a low graduation rate 
                        that are eligible to enroll students in a 
                        public charter school receiving a subgrant 
                        under this section and that are under the 
                        eligible entity's jurisdiction, and the local 
                        educational agencies serving such schools (as 
                        applicable), to--
                                    ``(aa) engage in community 
                                outreach, provide information in a 
                                language that the parents can 
                                understand, and communicate with 
                                parents of students at identified 
                                schools and schools with a low 
                                graduation rate who are eligible to 
                                attend a public charter school 
                                receiving a subgrant under this section 
                                about the opportunity to enroll in or 
                                transfer to such school, in a manner 
                                consistent with section 444 of the 
                                General Education Provisions Act 
                                (commonly known as the `Family 
                                Educational Rights and Privacy Act of 
                                1974'); and
                                    ``(bb) ensure that a student can 
                                transfer to an eligible public charter 
                                school if the public charter school 
                                such student was attending in the 
                                previous school year is no longer an 
                                eligible public charter school; and
                            ``(II) in the case of an eligible entity 
                        described in subparagraph (B) or (D) of 
                        subsection (k)(4), the manner in which the 
                        eligible entity will work with the local 
                        educational agency to carry out the activities 
                        described in items (aa) and (bb) of subclause 
                        (I);
                            ``(vi) disseminating to public schools 
                        under the jurisdiction or in the service area 
                        of the eligible entity, in a manner consistent 
                        with section 444 of the General Education 
                        Provisions Act (commonly known as the `Family 
                        Educational Rights and Privacy Act of 1974'), 
                        the best practices, programs, or strategies 
                        learned by awarding subgrants to eligible 
                        public charter schools under this section, with 
                        particular emphasis on the best practices with 
                        respect to--
                                    ``(I) focusing on closing 
                                achievement gaps; or
                                    ``(II) successfully addressing the 
                                education needs of low-income students; 
                                and
                            ``(vii) in the case of an eligible entity 
                        described in subsection (k)(4)(D)--
                                    ``(I) supporting the short-term and 
                                long-term success of the proposed 
                                project, by--
                                            ``(aa) developing a multi-
                                        year financial and operating 
                                        model for the eligible entity; 
                                        and
                                            ``(bb) including, with the 
                                        plan, evidence of the 
                                        demonstrated commitment of 
                                        current partners, as of the 
                                        time of the application, for 
                                        the proposed project and of 
                                        broad support from stakeholders 
                                        critical to the project's long-
                                        term success;
                                    ``(II) closing public charter 
                                schools that do not meet acceptable 
                                standards of performance; and
                                    ``(III) achieving the objectives of 
                                the proposed project on time and within 
                                budget, which shall include the use of 
                                clearly defined responsibilities, 
                                timelines, and milestones for 
                                accomplishing project tasks.
                    ``(C) Charter school information.--The number of--
                            ``(i) eligible public charter schools that 
                        are operating in the State in which the 
                        eligible entity intends to award subgrants 
                        under this section;
                            ``(ii) public charter schools approved to 
                        open or likely to open during the grant period 
                        in such State;
                            ``(iii) available openings in eligible 
                        public charter schools in such State that could 
                        be created through the replication or expansion 
                        of such schools if the grant is awarded to the 
                        eligible entity;
                            ``(iv) students on public charter school 
                        waiting lists (if such lists are available) 
                        in--
                                    ``(I) the State in which the 
                                eligible entity intends to award 
                                subgrants under this section; and
                                    ``(II) each local educational 
                                agency serving an eligible public 
                                charter school that may receive a 
                                subgrant under this section from the 
                                eligible entity; and
                            ``(v) students, and the percentage of 
                        students, in a local educational agency who are 
                        attending eligible public charter schools that 
                        may receive a subgrant under this section from 
                        the eligible entity.
                    ``(D) Traditional public school information.--In 
                the case of an eligible entity described in 
                subparagraph (A) or (C) of subsection (k)(4), a list of 
                the following schools under the jurisdiction of the 
                eligible entity, including the name and location of 
                each such school, the number and percentage of students 
                under the jurisdiction of the eligible entity who are 
                attending such school, and such demographic and 
                socioeconomic information as the Secretary may require:
                            ``(i) Identified schools.
                            ``(ii) Schools with a low graduation rate.
                    ``(E) Assurance.--In the case of an eligible entity 
                described in subsection (k)(4)(A), an assurance that 
                the eligible entity will include information (in a 
                language that the parents can understand) about the 
                eligible public charter schools receiving subgrants 
                under this section--
                            ``(i) in the notifications provided under 
                        section 1116(c)(6) to parents of each student 
                        enrolled in a school served by a local 
                        educational agency identified for school 
                        improvement or corrective action under 
                        paragraph (1) or (7) of section 1116(c); or
                            ``(ii) in any case where the requirements 
                        under section 1116(c) have been waived in whole 
                        or in part by the Secretary under the authority 
                        of section 9401, to parents of each student 
                        enrolled in a school served by a local 
                        educational agency that has been identified as 
                        in need of additional assistance under any 
                        accountability system established under such 
                        section.
            ``(3) Modifications.--The Secretary may modify or waive any 
        information requirement under paragraph (2)(C) for an eligible 
        entity that demonstrates that the eligible entity cannot 
        reasonably obtain the information.
    ``(d) Priorities for Awarding Grants.--
            ``(1) In general.--In awarding grants under this section, 
        the Secretary shall give priority to an eligible entity that--
                    ``(A) serves or plans to serve a large percentage 
                of low-income students from identified schools or 
                public schools with a low graduation rate;
                    ``(B) oversees or plans to oversee one or more 
                eligible public charter schools;
                    ``(C) provides evidence of effective monitoring of 
                the academic success of students who attend public 
                charter schools under the jurisdiction of the eligible 
                entity;
                    ``(D) has established goals, objectives, and 
                outcomes for the proposed project that are clearly 
                specified, measurable, and attainable;
                    ``(E) in the case of an eligible entity that is a 
                local educational agency under State law, has a 
                cooperative agreement under section 1116(b)(11); and
                    ``(F) is under the jurisdiction of, or plans to 
                award subgrants under this section in, a State that--
                            ``(i) ensures that all public charter 
                        schools (including such schools served by a 
                        local educational agency and such schools 
                        considered to be a local educational agency 
                        under State law) receive, in a timely manner, 
                        the Federal, State, and local funds to which 
                        such schools are entitled under applicable law;
                            ``(ii) provides funding (such as capital 
                        aid distributed through a formula or access to 
                        revenue generated bonds, and including funding 
                        for school facilities) on a per-pupil basis to 
                        public charter schools commensurate with the 
                        amount of funding (including funding for school 
                        facilities) provided to traditional public 
                        schools;
                            ``(iii) provides strong evidence of support 
                        for public charter schools and has in place 
                        innovative policies that support academically 
                        successful charter school growth;
                            ``(iv) authorizes public charter schools to 
                        offer early childhood education programs, 
                        including prekindergarten, in accordance with 
                        State law;
                            ``(v) authorizes or allows public charter 
                        schools to serve as school food authorities;
                            ``(vi) ensures that each public charter 
                        school in the State--
                                    ``(I) has a high degree of autonomy 
                                over the public charter school's budget 
                                and expenditures;
                                    ``(II) has a written performance 
                                contract with an authorized public 
                                chartering agency that ensures that the 
                                school has an independent governing 
                                board with a high degree of autonomy; 
                                and
                                    ``(III) in the case of an eligible 
                                public charter school receiving a 
                                subgrant under this section, amends its 
                                charter to reflect the growth 
                                activities described in subsection (e);
                            ``(vii) has an appeals process for the 
                        denial of an application for a public charter 
                        school;
                            ``(viii) provides that an authorized public 
                        chartering agency that is not a local 
                        educational agency, such as a State chartering 
                        board, is available for each individual or 
                        entity seeking to operate a public charter 
                        school pursuant to such State law;
                            ``(ix) allows any public charter school to 
                        be a local educational agency in accordance 
                        with State law;
                            ``(x) ensures that each authorized public 
                        chartering agency in the State submits annual 
                        reports to the State educational agency, and 
                        makes such reports available to the public, on 
                        the performance of the schools authorized or 
                        approved by such public chartering agency, 
                        which reports shall include--
                                    ``(I) the authorized public 
                                chartering agency's strategic plan for 
                                authorizing or approving public charter 
                                schools and any progress toward 
                                achieving the objectives of the 
                                strategic plan;
                                    ``(II) the authorized public 
                                chartering agency's policies for 
                                authorizing or approving public charter 
                                schools, including how such policies 
                                examine a school's--
                                            ``(aa) financial plan and 
                                        policies, including financial 
                                        controls and audit 
                                        requirements;
                                            ``(bb) plan for identifying 
                                        and successfully (in compliance 
                                        with all applicable laws and 
                                        regulations) serving students 
                                        with disabilities, students who 
                                        are English language learners, 
                                        students who are academically 
                                        behind their peers, and gifted 
                                        students; and
                                            ``(cc) capacity and 
                                        capability to successfully 
                                        launch and subsequently operate 
                                        a public charter school, 
                                        including the backgrounds of 
                                        the individuals applying to the 
                                        agency to operate such school 
                                        and any record of such 
                                        individuals operating a school;
                                    ``(III) the authorized public 
                                chartering agency's policies for 
                                renewing, not renewing, and revoking a 
                                public charter school's charter, 
                                including the role of student academic 
                                achievement in such decisions;
                                    ``(IV) the authorized public 
                                chartering agency's transparent, 
                                timely, and effective process for 
                                closing down academically unsuccessful 
                                public charter schools;
                                    ``(V) the academic performance of 
                                each operating public charter school 
                                authorized or approved by the 
                                authorized public chartering agency, 
                                including the information reported by 
                                the State in the State annual report 
                                card under section 1111(h)(1)(C) for 
                                such school (or any similar reporting 
                                requirement authorized by the Secretary 
                                through a waiver under section 9401);
                                    ``(VI) the status of the authorized 
                                public chartering agency's charter 
                                school portfolio, by identifying all 
                                charter schools served by the public 
                                chartering agency in each of the 
                                following categories: approved (but not 
                                yet open), operating, renewed, 
                                transferred, revoked, not renewed, 
                                voluntarily closed, or never opened;
                                    ``(VII) the authorizing functions 
                                provided by the authorized public 
                                chartering agency to the public charter 
                                schools under its purview, including 
                                such agency's operating costs and 
                                expenses as detailed through annual 
                                auditing of financial statements that 
                                conform with general accepted 
                                accounting principles; and
                                    ``(VIII) the services purchased 
                                (such as accounting, transportation, 
                                and data management and analysis) from 
                                the authorized public chartering agency 
                                by the public charter schools 
                                authorized or approved by such agency, 
                                including an itemized accounting of the 
                                actual costs of such services; and
                            ``(xi) has or will have (within 1 year 
                        after receiving a grant under this section) a 
                        State policy and process for overseeing and 
                        reviewing the effectiveness and quality of the 
                        State's authorized public chartering agencies, 
                        including--
                                    ``(I) a process for reviewing and 
                                evaluating the performance of the 
                                authorized public chartering agencies 
                                in authorizing or approving public 
                                charter schools, including a process 
                                that enables the authorized public 
                                chartering agencies to respond to any 
                                State concerns; and
                                    ``(II) any other necessary policies 
                                to ensure effective charter school 
                                authorizing in the State in accordance 
                                with the principles of quality charter 
                                school authorizing, as determined by 
                                the State in consultation with the 
                                charter school community and 
                                stakeholders.
            ``(2) Special rule.--In awarding grants under this section, 
        the Secretary may determine how the priorities described in 
        paragraph (1) will apply to the different types of eligible 
        entities defined in subsection (k)(4).
    ``(e) Use of Funds.--An eligible entity receiving a grant under 
this section shall use the grant funds for the following:
            ``(1) Subgrants.--
                    ``(A) In general.--An eligible entity shall award 
                subgrants, in such amount as the eligible entity 
                determines is appropriate, to eligible public charter 
                schools to replicate or expand such schools.
                    ``(B) Application.--An eligible public charter 
                school desiring to receive a subgrant under this 
                subsection shall submit an application to the eligible 
                entity at such time, in such manner, and containing 
                such information as the eligible entity may require.
                    ``(C) Uses of funds.--An eligible public charter 
                school receiving a subgrant under this subsection shall 
                use the subgrant funds to provide for an increase in 
                the school's enrollment of students through the 
                replication or expansion of the school, which may 
                include use of funds to--
                            ``(i) support the physical expansion of 
                        school buildings, including financing the 
                        development of new buildings and campuses to 
                        meet increased enrollment needs;
                            ``(ii) pay costs associated with hiring 
                        additional teachers to serve additional 
                        students;
                            ``(iii) provide transportation to 
                        additional students to and from the school 
                        (including providing transportation to students 
                        who transfer to the school under a cooperative 
                        agreement established under section 
                        1116(b)(11)), as long as the eligible public 
                        charter school demonstrates to the eligible 
                        entity, in the application required under 
                        subparagraph (B), that the public charter 
                        school has the capability to continue providing 
                        such transportation after the expiration of the 
                        subgrant funds;
                            ``(iv) purchase instructional materials, 
                        implement teacher and principal professional 
                        development programs, and hire additional non-
                        teaching staff; and
                            ``(v) support any necessary activities 
                        associated with the school carrying out the 
                        purposes of this section, including data 
                        collection and management.
                    ``(D) Priority.--In awarding subgrants under this 
                subsection, an eligible entity shall give priority to 
                an eligible public charter school that--
                            ``(i)(I) has significantly closed any 
                        achievement gaps on the State academic 
                        assessments described in section 1111(b)(3) 
                        among the groups of students described in 
                        section 1111(b)(2)(C)(v) by improving scores; 
                        or
                            ``(II) in the case of a school in a State 
                        for which the Secretary has granted a waiver 
                        under section 9401, has significantly closed 
                        any achievement gaps among groups of students, 
                        as determined by the Secretary in accordance 
                        with any accountability standards that the 
                        Secretary has authorized through such waiver; 
                        and
                            ``(ii) has been in operation for not less 
                        than 3 consecutive years and has demonstrated 
                        overall success, including--
                                    ``(I) substantial progress in 
                                improving student achievement, as 
                                measured--
                                            ``(aa) for tested grades 
                                        and subjects, by a student's 
                                        score on State academic 
                                        assessments required under this 
                                        Act, and other rigorous 
                                        measures of student learning 
                                        that are comparable across 
                                        classrooms, such as the 
                                        measures described in item 
                                        (bb); and
                                            ``(bb) for non-tested 
                                        grades and subjects, 
                                        alternative measures of student 
                                        learning and performance, such 
                                        as student scores on pretests 
                                        and end-of-course tests, 
                                        student performance on English 
                                        language proficiency 
                                        assessments; and other measures 
                                        of student achievement that are 
                                        rigorous and comparable across 
                                        classrooms; and
                                    ``(II) the management and 
                                leadership necessary to overcome 
                                initial start-up problems and establish 
                                a thriving, financially viable charter 
                                school.
                    ``(E) Duration of subgrant.--A subgrant under this 
                subsection shall be awarded for a period of not more 
                than 3 years, except that an eligible public charter 
                school receiving a subgrant under this subsection may, 
                at the discretion of the eligible entity, continue to 
                expend subgrant funds after the end of the subgrant 
                period.
            ``(2) Facility financing and revolving loan fund.--An 
        eligible entity may use not more than 25 percent of the amount 
        of the grant funds received under this section to establish a 
        reserve account described in subsection (f) to facilitate 
        public charter school facility acquisition and development by--
                    ``(A) conducting credit enhancement initiatives (as 
                referred to in subpart 2) in support of the development 
                of facilities for eligible public charter schools 
                serving students;
                    ``(B) establishing a revolving loan fund for use by 
                an eligible public charter school receiving a subgrant 
                under this subsection from the eligible entity under 
                such terms as may be determined by the eligible entity 
                to allow such school to expand to serve additional 
                students;
                    ``(C) facilitating, through direct expenditure or 
                financing, the acquisition or development of public 
                charter school buildings by the eligible entity or an 
                eligible public charter school receiving a subgrant 
                under this subsection from the eligible entity, which 
                may be used as both permanent locations for eligible 
                public charter schools or incubators for growing 
                charter schools; or
                    ``(D) establishing a partnership with 1 or more 
                community development financial institutions (as 
                defined in section 103 of the Community Development 
                Banking and Financial Institutions Act of 1994 (12 
                U.S.C. 4702)) or other mission-based financial 
                institutions to carry out the activities described in 
                subparagraphs (A), (B), and (C).
            ``(3) Administrative tasks, dissemination activities, 
        research, and data collection.--
                    ``(A) In general.--An eligible entity may use not 
                more than 7.5 percent of the grant funds awarded under 
                this section to cover administrative tasks, 
                dissemination activities, and outreach, including data 
                collection and management.
                    ``(B) Nonprofit assistance.--In carrying out the 
                administrative tasks, dissemination activities, and 
                outreach described in subparagraph (A), an eligible 
                entity may contract with an organization described in 
                section 501(c)(3) of the Internal Revenue Code of 1986 
                (26 U.S.C. 501(c)(3)) and exempt from tax under section 
                501(a) of such Code (26 U.S.C. 501(a)).
    ``(f) Reserve Account.--
            ``(1) In general.--To assist eligible entities in the 
        development of new public charter school buildings or 
        facilities for eligible public charter schools, an eligible 
        entity receiving a grant under this section may, in accordance 
        with State and local law, directly or indirectly, alone or in 
        collaboration with others, deposit the amount of funds 
        described in subsection (e)(2) in a reserve account established 
        and maintained by the eligible entity.
            ``(2) Investment.--Funds received under this section and 
        deposited in the reserve account established under this 
        subsection shall be invested in obligations issued or 
        guaranteed by the United States or a State, or in other 
        similarly low-risk securities.
            ``(3) Reinvestment of earnings.--Any earnings on funds 
        received under this subsection shall be deposited in the 
        reserve account established under this subsection and used in 
        accordance with the purpose described in subsection (a).
            ``(4) Recovery of funds.--
                    ``(A) In general.--The Secretary, in accordance 
                with chapter 37 of title 31, United States Code, shall 
                collect--
                            ``(i) all funds in a reserve account 
                        established by an eligible entity under this 
                        subsection if the Secretary determines, not 
                        earlier than 2 years after the date the 
                        eligible entity first received funds under this 
                        section, that the eligible entity has failed to 
                        make substantial progress carrying out the 
                        purpose described in paragraph (1); or
                            ``(ii) all or a portion of the funds in a 
                        reserve account established by an eligible 
                        entity under this subsection if the Secretary 
                        determines that the eligible entity has 
                        permanently ceased to use all or a portion of 
                        funds in such account to accomplish the purpose 
                        described in paragraph (1).
                    ``(B) Exercise of authority.--The Secretary shall 
                not exercise the authority provided under subparagraph 
                (A) to collect from any eligible entity any funds that 
                are being properly used to achieve such purpose.
                    ``(C) Procedures.--Sections 451, 452, and 458 of 
                the General Education Provisions Act shall apply to the 
                recovery of funds under subparagraph (A).
                    ``(D) Construction.--This paragraph shall not be 
                construed to impair or affect the authority of the 
                Secretary to recover funds under part D of the General 
                Education Provisions Act.
            ``(5) Reallocation.--Any funds collected by the Secretary 
        under paragraph (4) shall be awarded to eligible entities 
        receiving grants under this section in the next fiscal year.
    ``(g) Financial Responsibility.--The financial records of each 
eligible entity and eligible public charter school receiving a grant or 
subgrant, respectively, under this section shall be maintained in 
accordance with generally accepted accounting principles and shall be 
subject to an annual audit by an independent public accountant.
    ``(h) National Evaluation.--
            ``(1) National evaluation.--From the amounts appropriated 
        under section 5200, the Secretary shall conduct an independent, 
        comprehensive, and scientifically sound evaluation, by grant or 
        contract and using the highest quality research design 
        available, of the impact of the activities carried out under 
        this section on--
                    ``(A) student achievement, including State 
                standardized assessment scores and, if available, 
                student academic longitudinal growth (as described in 
                subsection (c)(2)(A)(i)) based on such assessments; and
                    ``(B) other areas, as determined by the Secretary.
            ``(2) Report.--Not later than 4 years after the date of the 
        enactment of the All Students Achieving through Reform Act of 
        2013, and biannually thereafter, the Secretary shall submit to 
        Congress a report on the results of the evaluation described in 
        paragraph (1).
    ``(i) Reports.--Each eligible entity receiving a grant under this 
section shall prepare and submit to the Secretary the following:
            ``(1) Report.--A report that contains such information as 
        the Secretary may require concerning use of the grant funds by 
        the eligible entity, including the academic achievement of the 
        students attending eligible public charter schools as a result 
        of the grant. Such report shall be submitted before the end of 
        the 3-year period beginning on the date of enactment of the All 
        Students Achieving through Reform Act of 2013 and every 2 years 
        thereafter.
            ``(2) Performance information.--Such performance 
        information as the Secretary may require for the national 
        evaluation conducted under subsection (h)(1).
    ``(j) Inapplicability.--The provisions of sections 5201 through 
5209 shall not apply to the program under this section.
    ``(k) Definitions.--In this section:
            ``(1) Adequate yearly progress.--The term `adequate yearly 
        progress' has the meaning given such term in a State's plan in 
        accordance with section 1111(b)(2)(C).
            ``(2) Administrative tasks, dissemination activities, and 
        outreach.--The term `administrative tasks, dissemination 
        activities, and outreach' includes costs and activities 
        associated with--
                    ``(A) recruiting and selecting students to attend 
                eligible public charter schools;
                    ``(B) outreach to parents of students enrolled in 
                identified schools or schools with low graduation 
                rates;
                    ``(C) providing information to such parents and 
                school officials at such schools regarding eligible 
                public charter schools receiving subgrants under 
                subsection (e);
                    ``(D) necessary oversight of the grant program 
                under this section; and
                    ``(E) initiatives and activities to disseminate the 
                best practices, programs, or strategies learned in 
                eligible public charter schools to other public schools 
                operating in the State where the eligible entity 
                intends to award subgrants under this section.
            ``(3) Charter school.--The term `charter school' means--
                    ``(A) a charter school, as defined in section 
                5211(1); or
                    ``(B) a school that meets the requirements of such 
                section, except for subparagraph (D) of the section, 
                and provides prekindergarten or adult education 
                services.
            ``(4) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State educational agency;
                    ``(B) an authorized public chartering agency;
                    ``(C) a local educational agency that has 
                authorized or is planning to authorize a public charter 
                school;
                    ``(D) an organization (including a nonprofit 
                charter management organization) that has an 
                organizational mission and record of success supporting 
                the replication and expansion of high-quality charter 
                schools and is--
                            ``(i) described in section 501(c)(3) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        501(c)(3)); and
                            ``(ii) exempt from tax under section 501(a) 
                        of such Code (26 U.S.C. 501(a)); or
                    ``(E) a consortium of organizations described in 
                subparagraph (D).
            ``(5) Eligible public charter school.--The term `eligible 
        public charter school' means a charter school that has no 
        significant compliance issue and shows evidence of strong 
        academic results for the past three years (or over the life of 
        the school if the school has been open for fewer than three 
        years), based on--
                    ``(A) increased student academic achievement and 
                attainment for all students, including, as applicable, 
                educationally disadvantaged students served by the 
                charter school;
                    ``(B)(i) demonstrated success in closing historic 
                achievement gaps for the subgroups of students 
                described in section 1111(b)(2)(C)(v)(II) at the 
                charter school or, in the case of a school in a State 
                for which the Secretary has granted a waiver under 
                section 9401, demonstrated success in closing 
                achievement gaps among groups of students, as 
                determined by the Secretary in accordance with any 
                accountability standards that the Secretary has 
                authorized through such waiver; or
                    ``(ii) no significant achievement gaps between any 
                of the subgroups of students described in section 
                1111(b)(2)(C)(v)(II) (or as determined by the Secretary 
                in accordance with any accountability standards 
                authorized through a waiver under section 9401) and 
                significant gains in student achievement with all 
                populations of students served by the charter school; 
                and
                    ``(C) results (including, where applicable and 
                available, performance on statewide tests, attendance 
                and retention rates, secondary school graduation rates, 
                and attendance and persistence rates at institutions of 
                higher education) for low-income and other 
                educationally disadvantaged students served by the 
                charter school that are above the average achievement 
                results for such students in the State.
            ``(6) Graduation rate.--The term `graduation rate' has the 
        meaning given the term in section 1111(b)(2)(C)(vi), as 
        clarified in section 200.19(b)(1) of title 34, Code of Federal 
        Regulations.
            ``(7) Identified school.--The term `identified school' 
        means a school--
                    ``(A) identified for school improvement, corrective 
                action, or restructuring under paragraph (1), (7), or 
                (8) of section 1116(b); or
                    ``(B) in the case of a school for which the 
                Secretary has waived the applicability of such 
                paragraphs pursuant to section 9401, identified as a 
                priority school, a focus school, or a school otherwise 
                in need of significant assistance, as determined by the 
                accountability standards authorized by such waiver
            ``(8) Local educational agency.--The term `local 
        educational agency' includes any charter school that is a local 
        educational agency, as determined by State law.
            ``(9) Low-income student.--The term `low-income student' 
        means a student eligible for free or reduced price lunches 
        under the Richard B. Russell National School Lunch Act (42 
        U.S.C. 1751 et seq.).
            ``(10) School food authority.--The term `school food 
        authority' has the meaning given the term in section 250.3 of 
        title 7, Code of Federal Regulations (or any corresponding 
        similar regulation or ruling).
            ``(11) School year.--The term `school year' has the meaning 
        given such term in section 12(d) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1760(d)).
            ``(12) Traditional public school.--The term `traditional 
        public school' does not include any charter school, as defined 
        in section 5211.''.
    (b) Authorization of Appropriations.--Part B of title V of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7221 et seq.) 
is amended--
            (1) by striking section 5231; and
            (2) by inserting before subpart 1 the following:

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

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

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

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