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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1525 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1525

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2011

    Mr. Polis (for himself, Mr. Holt, Ms. DeGette, Ms. Berkley, Mr. 
    Paulsen, Mr. Himes, and Mr. Coffman of Colorado) introduced the 
 following bill; which was referred to the Committee on Education and 
                             the Workforce

_______________________________________________________________________

                                 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 2011'' or ``All-STAR Act of 2011''.

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 5212;
            (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 openings for new students that 
                could be created in such schools with such grant;
                    ``(C) the number of students eligible for free or 
                reduced price lunches under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.) who 
                are on waiting lists for charter schools under the 
                jurisdiction or in the service area of the eligible 
                entity, and other information with respect to charter 
                schools in such jurisdiction or the service area that 
                suggest the interest of parents in charter school 
                enrollment for their children;
                    ``(D) 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
                    ``(E) 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 grant under this section shall 
        be for a period of not more than 3 years, except that 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. An eligible entity that received a grant 
        under this section may still be eligible to receive a grant 
        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 public charter 
                        school students on the academic assessments 
                        described in section 1111(b)(3) of the State 
                        where such schools are located, including, if 
                        available, a measurement of academic, 
                        longitudinal growth on such assessments (as 
                        defined by the Secretary or State law) for all 
                        students schoolwide and as disaggregated by--
                                    ``(I) economic disadvantage;
                                    ``(II) race and ethnicity;
                                    ``(III) disability status; and
                                    ``(IV) status as a student with 
                                limited English proficiency;
                            ``(ii) demonstrated success in closing 
                        historic achievement gaps for the subgroups of 
                        students described in clause (i);
                            ``(iii) the status of such schools under 
                        section 1116 in making adequate yearly progress 
                        or as identified schools; and
                            ``(iv) in the case of public charter 
                        schools that are secondary schools, the high 
                        school graduation rates and rates of college 
                        acceptance, enrollment, and persistence of 
                        students, 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, 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;
                            ``(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 the 
                                achievement gap; 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 that is a State 
                educational agency or local educational agency, a list 
                of the identified schools and schools with a low 
                graduation rate 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.
                    ``(E) Assurance.--In the case of an eligible entity 
                described in subsection (k)(4)(A), an assurance that 
                the eligible entity will include 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), information (in a language that the parents 
                can understand) about the eligible public charter 
                schools receiving subgrants under this 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 eligible entities that--
                    ``(A) serve or plan to serve a large percentage of 
                low-income students from identified schools or public 
                schools with a low graduation rate;
                    ``(B) oversee or plan to oversee one or more 
                eligible public charter schools;
                    ``(C) provide evidence of effective monitoring of 
                the academic success of students who attend public 
                charter schools under the jurisdiction of the eligible 
                entity;
                    ``(D) in the case of eligible entities that are 
                local educational agencies under State law, have a 
                cooperative agreement under section 1116(b)(11); and
                    ``(E) are under the jurisdiction of, or plan 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) does not have a cap that restricts 
                        the growth of public charter schools in the 
                        State;
                            ``(iii) 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;
                            ``(iv) provides strong evidence of support 
                        for public charter schools and has in place 
                        innovative policies that support academically 
                        successful charter school growth;
                            ``(v) authorizes public charter schools to 
                        offer early childhood education programs, 
                        including prekindergarten, in accordance with 
                        State law;
                            ``(vi) authorizes all public charter 
                        schools to serve as school food authorities;
                            ``(vii) 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);
                            ``(viii) has an appeals process for the 
                        denial of an application for a charter school;
                            ``(ix) 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 charter school 
                        pursuant to such State law;
                            ``(x) allows any public charter school to 
                        be a local educational agency in accordance 
                        with State law;
                            ``(xi) 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 
                                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;
                                    ``(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 the categories of 
                                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 it serves, including the 
                                agency's operating costs and expenses 
                                as detailed through annually audited 
                                financial statements that conform with 
                                generally 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
                            ``(xii) have 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 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) Additional priorities.--In addition to giving 
        priority for grants under this section to eligible entities 
        that meet the requirements of paragraph (1), the Secretary may 
        also give priority to eligible entities that--
                    ``(A) provide online-learning blended with learning 
                in a physical school building; or
                    ``(B) propose to replicate or expand a model that 
                serves students with disabilities and students with 
                status as students with limited English proficiency at 
                rates comparable to the rates of such students served 
                in the local educational agencies serving the schools 
                of the eligible entities.
            ``(3) Special rule.--In awarding grants under this section, 
        the Secretary may determine how the priorities described in 
        paragraph (1) and (2) 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 to award subgrants in accordance 
with paragraph (1), and may use such funds to establish a reserve 
account in accordance with paragraph (2) or to cover administrative 
tasks, dissemination activities, and outreach in accordance with 
paragraph (3).
            ``(1) Subgrants.--
                    ``(A) In general.--An eligible entity shall use 
                grant funds under this section to 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);
                            ``(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.
                    ``(D) Priority.--In awarding subgrants under this 
                subsection, an eligible entity shall give priority to 
                an eligible public charter school--
                            ``(i) that has significantly closed any 
                        achievement gap 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;
                            ``(ii) that--
                                    ``(I)(aa) ranks in at least the top 
                                25th percentile of the schools in the 
                                State, as ranked by the percentage of 
                                students in the proficient or advanced 
                                level of achievement on the State 
                                academic assessments in mathematics and 
                                reading or language arts described in 
                                section 1111(b)(3); or
                                    ``(bb) has an average student score 
                                on an examination (chosen by the 
                                Secretary) that is at least in the 60th 
                                percentile in reading and at least in 
                                the 75th percentile in mathematics;
                                    ``(II) has, if available, an 
                                average student academic, longitudinal 
                                growth on the State academic 
                                assessments in mathematics and reading 
                                described in section 1111(b)(3) (as 
                                defined by the Secretary or State law) 
                                that is at or above the State average 
                                growth on the assessments from 1 
                                academic year to the next academic 
                                year; and
                                    ``(III) serves a high-need student 
                                population and is eligible to 
                                participate in a schoolwide program 
                                under section 1114, with additional 
                                priority given to schools that serve, 
                                as compared to other schools that have 
                                submitted an application under this 
                                subsection--
                                            ``(aa) a greater percentage 
                                        of low-income students; and
                                            ``(bb) a greater percentage 
                                        of not less than 2 groups of 
                                        students described in section 
                                        1111(b)(2)(C)(v)(II); and
                            ``(iii) that meets the criteria described 
                        in clause (i) and serves low-income students 
                        who have transferred to such school under a 
                        cooperative agreement described in section 
                        1116(b)(11).
                    ``(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, and 
        outreach.--
                    ``(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.
                    ``(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 section 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 achievement on 
                State academic assessments described in section 
                1111(b)(3) and, if applicable, longitudinal academic 
                growth on the assessments (as defined by the Secretary 
                or State law); 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 
        2011, 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 4-year period beginning on the date of enactment of the All 
        Students Achieving through Reform Act of 2011 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 this 
                section;
                    ``(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), 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; or
                    ``(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)).
            ``(5) Eligible public charter school.--The term `eligible 
        public charter school' means a charter school, including a 
        public charter school that is being developed by a developer, 
        that--
                    ``(A) has made adequate yearly progress for the 
                last 2 of 3 consecutive school years;
                    ``(B) has, if available, an average student 
                academic, longitudinal academic growth on State 
                academic assessments in mathematics and reading 
                described in section 1111(b)(3) (as defined by the 
                Secretary or State law) that is at or above the State 
                average growth on such assessments from 1 academic year 
                to the next academic year; and
                    ``(C) in the case of a public charter school that 
                is a secondary school, has, for the most recent school 
                year for which data is available, met or exceeded the 
                graduation rate required by the State in order to make 
                adequate yearly progress for such year.
            ``(6) Identified school.--The term `identified school' 
        means a school identified for school improvement, corrective 
        action, or restructuring under paragraph (1), (7), or (8) of 
        section 1116(b).
            ``(7) Local educational agency.--The term `local 
        educational agency' includes any charter school that is a local 
        educational agency, as determined by State law.
            ``(8) 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.).
            ``(9) 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.
            ``(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), except that the term may include 
        a consortium of charter schools.
            ``(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.--Of the amounts appropriated for fiscal year 2012 
and each of the succeeding 5 years to carry out subparts 1 and 2, the 
Secretary shall spend no less than 20 percent and no more than 40 
percent on replication and expansion of high-quality charter schools.
    ``(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)(1)) (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 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; and
            (3) by inserting after the item relating to section 5209 
        the following:

``Sec. 5210. Charter school expansion and replication.
``Sec. 5211. Definitions.''.
                                 <all>
```