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‘‘(A) in which an English learner is placed 
for the purpose of developing and attaining 
English language proficiency, while meeting 
State academic standards, as required by sec-
tion 1111(b)(1); and 
‘‘(B) that may make instructional use of 
both English and a child’s native language to 
enable the child to develop and attain English 
language proficiency, and may include the par-
ticipation of English language proficient chil-
dren if such course is designed to enable all 
participating children to become proficient in 
English and a second language. 
‘‘(7) NATIVE
LANGUAGE.—The term ‘native 
language’, when used with reference to English 
learner, means— 
‘‘(A) the language normally used by such 
individual; or 
‘‘(B) in the case of a child or youth, the 
language normally used by the parents of the 
child or youth. 
‘‘(8) PARAPROFESSIONAL.—The term ‘para-
professional’ means an individual who is employed in 
a preschool, elementary school, or secondary school 
under the supervision of a certified or licensed teach-
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er, including individuals employed in language in-
struction educational programs, special education, 
and migratory education. 
‘‘(9) STATE.—The term ‘State’ means each of 
the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico. 
‘‘SEC. 1222. NATIONAL CLEARINGHOUSE. 
‘‘(a) IN GENERAL.—The Secretary shall establish 
and support the operation of a National Clearinghouse for 
English Language Acquisition and Language Instruction 
Educational Programs, which shall collect, analyze, syn-
thesize, and disseminate information about language in-
struction educational programs for English learners, and 
related programs. The National Clearinghouse shall— 
‘‘(1) be administered as an adjunct clearing-
house of the Educational Resources Information 
Center Clearinghouses system supported by the In-
stitute of Education Sciences; 
‘‘(2) coordinate activities with Federal data and 
information clearinghouses and entities operating 
Federal dissemination networks and systems; 
‘‘(3) develop a system for improving the oper-
ation and effectiveness of federally funded language 
instruction educational programs; 
‘‘(4) collect and disseminate information on— 
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‘‘(A) educational research and processes 
related to the education of English learners; 
and 
‘‘(B) accountability systems that monitor 
the academic progress of English learners in 
language instruction educational programs, in-
cluding information on academic content and 
English language proficiency assessments for 
language instruction educational programs; and 
‘‘(5) publish, on an annual basis, a list of grant 
recipients under this subpart. 
‘‘(b) CONSTRUCTION.—Nothing in this section shall 
authorize the Secretary to hire new personnel to execute 
subsection (a). 
‘‘SEC. 1223. REGULATIONS. 
‘‘In developing regulations under this subpart, the 
Secretary shall consult with State educational agencies 
and local educational agencies, organizations representing 
English learners, and organizations representing teachers 
and other personnel involved in the education of English 
learners. 
‘‘Subpart 5—Rural Education Achievement Program 
‘‘SEC. 1230. PURPOSE. 
‘‘It is the purpose of this subpart to address the 
unique needs of rural school districts that frequently— 
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‘‘(1) lack the personnel and resources needed to 
compete effectively for Federal competitive grants; 
and 
‘‘(2) receive formula grant allocations in 
amounts too small to be effective in meeting their in-
tended purposes. 
‘‘CHAPTER A—SMALL, RURAL SCHOOL 
ACHIEVEMENT PROGRAM 
‘‘SEC. 1231. GRANT PROGRAM AUTHORIZED. 
‘‘(a) IN GENERAL.—From amounts appropriated 
under section 3(a)(1) for a fiscal year, the Secretary shall 
reserve 0.6 of one percent to award grants to eligible local 
educational agencies to enable the local educational agen-
cies to carry out activities authorized under any of the 
following provisions: 
‘‘(1) Part A of title I. 
‘‘(2) Title II. 
‘‘(3) Title III. 
‘‘(b) ALLOCATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), the Secretary shall award a grant under 
subsection (a) to a local educational agency eligible 
under subsection (d) for a fiscal year in an amount 
equal to the initial amount determined under para-
graph (2) for the fiscal year minus the total amount 
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received by the agency in subpart 2 of part A of title 
II for the preceding fiscal year. 
‘‘(2) DETERMINATION OF INITIAL AMOUNT.— 
The initial amount referred to in paragraph (1) is 
equal to $100 multiplied by the total number of stu-
dents in excess of 50 students, in average daily at-
tendance at the schools served by the local edu-
cational agency, plus $20,000, except that the initial 
amount may not exceed $60,000. 
‘‘(3) RATABLE ADJUSTMENT.— 
‘‘(A) IN GENERAL.—If the amount made 
available to carry out this section for any fiscal 
year is not sufficient to pay in full the amounts 
that local educational agencies are eligible to re-
ceive under paragraph (1) for such year, the 
Secretary shall ratably reduce such amounts for 
such year. 
‘‘(B) ADDITIONAL
AMOUNTS.—If addi-
tional funds become available for making pay-
ments under paragraph (1) for such fiscal year, 
payments that were reduced under subpara-
graph (A) shall be increased on the same basis 
as such payments were reduced. 
‘‘(c) DISBURSEMENT.—The Secretary shall disburse 
the funds awarded to a local educational agency under this 
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section for a fiscal year not later than July 1 of that fiscal 
year. 
‘‘(d) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—A local educational agency 
shall be eligible to use the applicable funding in ac-
cordance with subsection (a) if— 
‘‘(A)(i)(I) the total number of students in 
average daily attendance at all of the schools 
served by the local educational agency is fewer 
than 600; or 
‘‘(II) each county in which a school served 
by the local educational agency is located has a 
total population density of fewer than 10 per-
sons per square mile; and 
‘‘(ii) all of the schools served by the local 
educational agency are designated with a school 
locale code of 41, 42, or 43, as determined by 
the Secretary; or 
‘‘(B) the agency meets the criteria estab-
lished in subparagraph (A)(i) and the Sec-
retary, in accordance with paragraph (2), 
grants the local educational agency’s request to 
waive the criteria described in subparagraph 
(A)(ii). 
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‘‘(2) CERTIFICATION.—The Secretary shall de-
termine whether to waive the criteria described in 
paragraph (1)(A)(ii) based on a demonstration by 
the local educational agency, and concurrence by the 
State educational agency, that the local educational 
agency is located in an area defined as rural by a 
governmental agency of the State. 
‘‘(3) HOLD
HARMLESS.—For a local edu-
cational agency that is not eligible under this chap-
ter but met the eligibility requirements under this 
subsection as it was in effect prior to the date of the 
enactment of the Student Success Act, the agency 
shall receive— 
‘‘(A) for fiscal year 2016, 75 percent of 
the amount such agency received for fiscal year 
2013; 
‘‘(B) for fiscal year 2017, 50 percent of 
the amount such agency received for fiscal year 
2013; and 
‘‘(C) for fiscal year 2018, 25 percent of 
the amount such agency received for fiscal year 
2013. 
‘‘(e) SPECIAL ELIGIBILITY RULE.—A local edu-
cational agency that receives a grant under this chapter 
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for a fiscal year is not eligible to receive funds for such 
fiscal year under chapter B. 
‘‘CHAPTER B—RURAL AND LOW-INCOME 
SCHOOL PROGRAM 
‘‘SEC. 1235. PROGRAM AUTHORIZED. 
‘‘(a) GRANTS TO STATES.— 
‘‘(1) IN
GENERAL.—From amounts appro-
priated under section 3(a)(1) for a fiscal year, the 
Secretary shall reserve 0.6 of one percent for this 
chapter for a fiscal year that are not reserved under 
subsection (c) to award grants (from allotments 
made under paragraph (2)) for the fiscal year to 
State educational agencies that have applications 
submitted under section 1237 approved to enable the 
State educational agencies to award grants to eligi-
ble local educational agencies for local authorized ac-
tivities described in section 1236(a). 
‘‘(2) ALLOTMENT.—From amounts described in 
paragraph (1) for a fiscal year, the Secretary shall 
allot to each State educational agency for that fiscal 
year an amount that bears the same ratio to those 
amounts as the number of students in average daily 
attendance served by eligible local educational agen-
cies in the State for that fiscal year bears to the 
number of all such students served by eligible local 
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educational agencies in all States for that fiscal 
year. 
‘‘(3) SPECIALLY QUALIFIED AGENCIES.— 
‘‘(A) ELIGIBILITY AND APPLICATION.—If a 
State educational agency elects not to partici-
pate in the program under this subpart or does 
not have an application submitted under section 
1237 approved, a specially qualified agency in 
such State desiring a grant under this subpart 
may submit an application under such section 
directly to the Secretary to receive an award 
under this subpart. 
‘‘(B) DIRECT
AWARDS.—The Secretary 
may award, on a competitive basis or by for-
mula, the amount the State educational agency 
is eligible to receive under paragraph (2) di-
rectly to a specially qualified agency in the 
State that has submitted an application in ac-
cordance with subparagraph (A) and obtained 
approval of the application. 
‘‘(C) SPECIALLY QUALIFIED AGENCY DE-
FINED.—In this subpart, the term ‘specially 
qualified agency’ means an eligible local edu-
cational agency served by a State educational 
agency that does not participate in a program 
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under this subpart in a fiscal year, that may 
apply directly to the Secretary for a grant in 
such year under this subsection. 
‘‘(b) LOCAL AWARDS.— 
‘‘(1) ELIGIBILITY.—A local educational agency 
shall be eligible to receive a grant under this subpart 
if— 
‘‘(A) 20 percent or more of the children 
ages 5 through 17 years served by the local 
educational agency are from families with in-
comes below the poverty line; and 
‘‘(B) all of the schools served by the agen-
cy are designated with a school locale code of 
32, 33, 41, 42, 43, as determined by the Sec-
retary. 
‘‘(2) AWARD BASIS.—A State educational agen-
cy shall award grants to eligible local educational 
agencies— 
‘‘(A) on a competitive basis; 
‘‘(B) according to a formula based on the 
number of students in average daily attendance 
served by the eligible local educational agencies 
or schools in the State; or 
‘‘(C) according to an alternative formula, 
if, prior to awarding the grants, the State edu-
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HR 5 PCS
cational agency demonstrates, to the satisfac-
tion of the Secretary, that the alternative for-
mula enables the State educational agency to 
allot the grant funds in a manner that serves 
equal or greater concentrations of children from 
families with incomes below the poverty line, 
relative to the concentrations that would be 
served if the State educational agency used the 
formula described in subparagraph (B). 
‘‘(c) RESERVATIONS.—From amounts reserved under 
section 1235(a)(1) for this chapter for a fiscal year, the 
Secretary shall reserve— 
‘‘(1) one-half of 1 percent to make awards to el-
ementary schools or secondary schools operated or 
supported by the Bureau of Indian Education, to 
carry out the activities authorized under this chap-
ter; and 
‘‘(2) one-half of 1 percent to make awards to 
the outlying areas in accordance with their respec-
tive needs, to carry out the activities authorized 
under this chapter. 
‘‘SEC. 1236. USES OF FUNDS. 
‘‘(a) LOCAL AWARDS.—Grant funds awarded to local 
educational agencies under this chapter shall be used for 
activities authorized under any of the following: 
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‘‘(1) Part A of title I. 
‘‘(2) Title II. 
‘‘(3) Title III. 
‘‘(b) ADMINISTRATIVE COSTS.—A State educational 
agency receiving a grant under this chapter may not use 
more than 5 percent of the amount of the grant for State 
administrative costs and to provide technical assistance to 
eligible local educational agencies. 
‘‘SEC. 1237. APPLICATIONS. 
‘‘(a) IN GENERAL.—Each State educational agency 
or specially qualified agency desiring to receive a grant 
under this chapter shall submit an application to the Sec-
retary at such time and in such manner as the Secretary 
may require. 
‘‘(b) CONTENTS.—Each application submitted under 
subsection (a) shall include— 
‘‘(1) a description of how the State educational 
agency or specially qualified agency will ensure eligi-
ble local educational agencies receiving a grant 
under this chapter will use such funds to help stu-
dents meet the State academic standards under sec-
tion 1111(b)(1); 
‘‘(2) if the State educational agency or specially 
qualified agency will competitively award grants to 
eligible local educational agencies, as described in 
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section 1235(b)(2)(A), the application under the sec-
tion shall include— 
‘‘(A) the methods and criteria the State 
educational agency or specially qualified agency 
will use for reviewing applications and awarding 
funds to local educational agencies on a com-
petitive basis; and 
‘‘(B) how the State educational agency or 
specially qualified agency will notify eligible 
local educational agencies of the grant competi-
tion; and 
‘‘(3) a description of how the State educational 
agency or specially qualified agency will provide 
technical assistance to eligible local educational 
agencies to help such agencies implement the activi-
ties described in section 1236(a). 
‘‘SEC. 1238. ACCOUNTABILITY. 
‘‘Each State educational agency or specially qualified 
agency that receives a grant under this chapter shall pre-
pare and submit an annual report to the Secretary. The 
report shall describe— 
‘‘(1) the methods and criteria the State edu-
cational agency or specially qualified agency used to 
award grants to eligible local educational agencies, 
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and to provide assistance to schools, under this 
chapter; 
‘‘(2) how local educational agencies and schools 
used funds provided under this chapter; and 
‘‘(3) the degree to which progress has been 
made toward having all students meet the State aca-
demic standards under section 1111(b)(1). 
‘‘SEC. 1239. CHOICE OF PARTICIPATION. 
‘‘(a) IN GENERAL.—If a local educational agency is 
eligible for funding under chapters A and B of this sub-
part, such local educational agency may receive funds 
under either chapter A or chapter B for a fiscal year, but 
may not receive funds under both chapters. 
‘‘(b) NOTIFICATION.—A local educational agency eli-
gible for both chapters A and B of this subpart shall notify 
the Secretary and the State educational agency under 
which of such chapters such local educational agency in-
tends to receive funds for a fiscal year by a date that is 
established by the Secretary for the notification. 
‘‘CHAPTER C—GENERAL PROVISIONS 
‘‘SEC. 1241. ANNUAL AVERAGE DAILY ATTENDANCE DETER-
MINATION. 
‘‘(a) CENSUS DETERMINATION.—Each local edu-
cational agency desiring a grant under section 1231 and 
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each local educational agency or specially qualified agency 
desiring a grant under chapter B shall— 
‘‘(1) not later than December 1 of each year, 
conduct a census to determine the number of stu-
dents in average daily attendance in kindergarten 
through grade 12 at the schools served by the agen-
cy; and 
‘‘(2) not later than March 1 of each year, sub-
mit the number described in paragraph (1) to the 
Secretary (and to the State educational agency, in 
the case of a local educational agency seeking a 
grant under subpart 2). 
‘‘(b) PENALTY.—If the Secretary determines that a 
local educational agency or specially qualified agency has 
knowingly submitted false information under subsection 
(a) for the purpose of gaining additional funds under sec-
tion 1231 or chapter B, then the agency shall be fined 
an amount equal to twice the difference between the 
amount the agency received under this section and the cor-
rect amount the agency would have received under section 
1231 or chapter B if the agency had submitted accurate 
information under subsection (a). 
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‘‘SEC. 1242. SUPPLEMENT, NOT SUPPLANT. 
‘‘Funds made available under chapter A or chapter 
B shall be used to supplement, and not supplant, any 
other Federal, State, or local education funds. 
‘‘SEC. 1243. RULE OF CONSTRUCTION. 
‘‘Nothing in this subpart shall be construed to pro-
hibit a local educational agency that enters into coopera-
tive arrangements with other local educational agencies for 
the provision of special, compensatory, or other education 
services, pursuant to State law or a written agreement, 
from entering into similar arrangements for the use, or 
the coordination of the use, of the funds made available 
under this subpart.’’. 
(b) STRIKE.—The Act is amended by striking title 
VII (20 U.S.C. 7401 et seq.). 
Subtitle D—National Assessment 
SEC. 141. NATIONAL ASSESSMENT OF TITLE I. 
(a) IN GENERAL.—Part E of title I (20 U.S.C. 6491 
et seq.) is redesignated as part B of title I. 
(b) REPEALS.—Sections 1502 and 1504 (20 U.S.C. 
6492; 6494) are repealed. 
(c) REDESIGNATIONS.—Sections 1501 and 1503 (20 
U.S.C. 6491; 6493) are redesignated as sections 1301 and 
1302, respectively. 
(d) AMENDMENTS TO SECTION 1301.—Section 1301 
(20 U.S.C. 6491), as so redesignated, is amended— 
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(1) in subsection (a)— 
(A) in paragraph (1), by inserting ‘‘, act-
ing through the Director of the Institute of 
Education Sciences (in this section and section 
1302 referred to as the ‘Director’),’’ after ‘‘The 
Secretary’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘Secretary’’ and insert-
ing ‘‘Director’’; 
(ii) in subparagraph (A), by striking 
‘‘reaching the proficient level’’ and all that 
follows and inserting ‘‘graduating high 
school prepared for postsecondary edu-
cation or the workforce.’’; 
(iii) in subparagraph (B), by striking 
‘‘reach the proficient’’ and all that follows 
and inserting ‘‘meet State academic stand-
ards.’’; 
(iv) by striking subparagraphs (D) 
and (G) and redesignating subparagraphs 
(E), (F), and (H) through (O) as subpara-
graphs (D) through (M), respectively; 
(v) in subparagraph (D)(v) (as so re-
designated), by striking ‘‘help schools in 
which’’ and all that follows and inserting 
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‘‘address disparities in the percentages of 
effective teachers teaching in low-income 
schools.’’; 
(vi) in subparagraph (G) (as so redes-
ignated)— 
(I) by striking ‘‘section 1116’’ 
and 
inserting 
‘‘section 
1111(b)(3)(B)(iii)’’; and 
(II) by striking ‘‘, including the 
following’’ and all that follows and in-
serting a period; 
(vii) in subparagraph (I) (as so redes-
ignated), by striking ‘‘qualifications’’ and 
inserting ‘‘effectiveness’’; 
(viii) in subparagraph (J) (as so re-
designated), by striking ‘‘, including funds 
under section 1002,’’; 
(ix) in subparagraph (L) (as so redes-
ignated), 
by 
striking 
‘‘section 
1111(b)(2)(C)(v)(II)’’ and inserting ‘‘sec-
tion 1111(b)(3)(B)(ii)(II)’’; and 
(x) in subparagraph (M) (as so redes-
ignated), by striking ‘‘Secretary’’ and in-
serting ‘‘Director’’; 
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(C) in paragraph (3), by striking ‘‘Sec-
retary’’ and inserting ‘‘Director’’; 
(D) in paragraph (4), by striking ‘‘Sec-
retary’’ and inserting ‘‘Director’’; 
(E) in paragraph (5), by striking ‘‘Sec-
retary’’ and inserting ‘‘Director’’; and 
(F) in paragraph (6)— 
(i) by striking ‘‘No Child Left Behind 
Act of 2001’’ each place it appears and in-
serting ‘‘Student Success Act’’; and 
(ii) by striking ‘‘Secretary’’ each place 
it appears and inserting ‘‘Director’’; 
(2) in subsection (b), by striking ‘‘Secretary’’ 
each place it appears and inserting ‘‘Director’’; 
(3) in subsection (c)— 
(A) in paragraph (1)— 
(i) by striking ‘‘Secretary’’ and insert-
ing ‘‘Director’’; and 
(ii) by striking ‘‘part A’’ and inserting 
‘‘subpart 1 of part A’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘Secretary’’ and insert-
ing ‘‘Director’’; 
(ii) in subparagraph (B), by striking 
‘‘challenging academic achievement stand-
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HR 5 PCS
ards’’ and inserting ‘‘State academic 
standards’’; 
(iii) in subparagraph (E), by striking 
‘‘effects of the availability’’ and all that 
follows and inserting ‘‘extent to which ac-
tions 
authorized 
under 
section 
1111(b)(3)(B)(iii) improve the academic 
achievement of disadvantaged students and 
low-performing schools.’’; and 
(iv) in subparagraph (F), by striking 
‘‘Secretary’’ and inserting ‘‘Director’’; and 
(C) in paragraph (3)— 
(i) by striking ‘‘Secretary’’ and insert-
ing ‘‘Director’’; and 
(ii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) analyzes varying models or strategies 
for 
delivering 
school 
services, 
including 
schoolwide and targeted services.’’; and 
(4) in subsection (d), by striking ‘‘Secretary’’ 
each place it appears and inserting ‘‘Director’’. 
(e) AMENDMENTS TO SECTION 1302.—Section 1302 
(20 U.S.C. 6493), as so redesignated, is amended— 
(1) in subsection (a)— 
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(A) by striking ‘‘Secretary’’ and inserting 
‘‘Director’’; and 
(B) by striking ‘‘and for making decisions 
about the promotion and graduation of stu-
dents’’; 
(2) in subsection (b)— 
(A) by striking ‘‘Secretary’’ the first place 
it appears and inserting ‘‘Director’’; 
(B) by striking ‘‘process,’’ and inserting 
‘‘process consistent with section 1111(e)(1),’’; 
and 
(C) by striking ‘‘Assistant Secretary of 
Educational Research and Improvement’’ and 
inserting ‘‘Director’’; 
(3) in subsection (d)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘to the State-defined level of proficiency’’ 
and inserting ‘‘toward meeting the State 
academic standards’’; and 
(ii) in subparagraph (C), by striking 
‘‘pupil-services’’ and inserting ‘‘specialized 
instructional support services’’; 
(B) in paragraph (3), by striking ‘‘limited 
and nonlimited English proficient students’’ 
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and inserting ‘‘English learners and non- 
English learners’’; and 
(C) in paragraph (6), by striking ‘‘Sec-
retary’’ and inserting ‘‘Director’’; and 
(4) in subsection (f)— 
(A) by striking ‘‘Secretary’’ and inserting 
‘‘Director’’; and 
(B) by striking ‘‘authorized to be appro-
priated for this part’’ and inserting ‘‘appro-
priated under section 3(a)(2)’’. 
Subtitle E—Title I General 
Provisions 
SEC. 151. GENERAL PROVISIONS FOR TITLE I. 
Part I of title I (20 U.S.C. 6571 et seq.)— 
(1) is transferred to appear after part B (as re-
designated); and 
(2) is amended to read as follows: 
‘‘PART C—GENERAL PROVISIONS 
‘‘SEC. 1401. FEDERAL REGULATIONS. 
‘‘(a) IN GENERAL.—The Secretary may, in accord-
ance with subsections (b) through (d), issue such regula-
tions as are necessary to reasonably ensure there is com-
pliance with this title. 
‘‘(b) NEGOTIATED RULEMAKING PROCESS.— 
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‘‘(1) IN
GENERAL.—Before publishing in the 
Federal Register proposed regulations to carry out 
this title, the Secretary shall obtain the advice and 
recommendations of representatives of Federal, 
State, and local administrators, parents, teachers, 
and members of local school boards and other orga-
nizations involved with the implementation and oper-
ation of programs under this title, including those 
representatives and members nominated by local and 
national stakeholder representatives. 
‘‘(2) 
MEETINGS
AND
ELECTRONIC
EX-
CHANGE.—Such advice and recommendations may 
be obtained through such mechanisms as regional 
meetings and electronic exchanges of information. 
Such regional meetings and electronic exchanges of 
information shall be public and notice of such meet-
ings and exchanges shall be provided to interested 
stakeholders. 
‘‘(3) PROPOSED REGULATIONS.—After obtain-
ing such advice and recommendations, and before 
publishing proposed regulations, the Secretary 
shall— 
‘‘(A) establish a negotiated rulemaking 
process; 
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‘‘(B) select individuals to participate in 
such process from among individuals or groups 
that provided advice and recommendations, in-
cluding representation from all geographic re-
gions of the United States, in such numbers as 
will provide an equitable balance between rep-
resentatives of parents and students and rep-
resentatives of educators and education offi-
cials; and 
‘‘(C) prepare a draft of proposed policy op-
tions that shall be provided to the individuals 
selected by the Secretary under subparagraph 
(B) not less than 15 days before the first meet-
ing under such process. 
‘‘(c) PROPOSED RULEMAKING.—If the Secretary de-
termines that a negotiated rulemaking process is unneces-
sary or the individuals selected to participate in the proc-
ess under paragraph (3)(B) fail to reach unanimous agree-
ment, the Secretary may propose regulations under the 
following procedure: 
‘‘(1) Not less than 30 days prior to beginning 
a rulemaking process, the Secretary shall provide to 
Congress, including the Committee on Education 
and the Workforce of the House of Representatives 
and the Committee on Health, Education, Labor, 
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and Pensions of the Senate, notice that shall in-
clude— 
‘‘(A) a copy of the proposed regulations; 
‘‘(B) the need to issue regulations; 
‘‘(C) the anticipated burden, including the 
time, cost, and paperwork burden, the regula-
tions will have on State educational agencies, 
local educational agencies, schools, and other 
entities that may be impacted by the regula-
tions; and 
‘‘(D) any regulations that will be repealed 
when the new regulations are issued. 
‘‘(2) 30 days after giving notice of the proposed 
rule to Congress, the Secretary may proceed with 
the rulemaking process after all comments received 
from the Congress have been addressed and pub-
lishing how such comments are addressed with the 
proposed rule. 
‘‘(3) The comment and review period for any 
proposed regulation shall be 90 days unless an emer-
gency requires a shorter period, in which case such 
period shall be not less than 45 days and the Sec-
retary shall— 
‘‘(A) designate the proposed regulation as 
an emergency with an explanation of the emer-
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gency in the notice and report to Congress 
under paragraph (1); and 
‘‘(B) publish the length of the comment 
and review period in such notice and in the 
Federal Register. 
‘‘(4) No regulation shall be made final after the 
comment and review period until the Secretary has 
published in the Federal Register an independent as-
sessment (which shall include a representative sam-
pling of local educational agencies based on local 
educational agency enrollment, urban, suburban, or 
rural character, and other factors impacted by the 
proposed regulation) of— 
‘‘(A) the burden, including the time, cost, 
and paperwork burden, the regulation will im-
pose on State educational agencies, local edu-
cational agencies, schools and other entities 
that may be impacted by the regulation; 
‘‘(B) an explanation of how the entities de-
scribed in subparagraph (A) may cover the cost 
of the burden assessed under subparagraph (A); 
and 
‘‘(C) the proposed regulation, which thor-
oughly addresses, based on the comments re-
ceived during the comment and review period 
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under paragraph (3), whether the rule is finan-
cially, operationally, and educationally viable at 
the local level. 
‘‘(d) LIMITATION.—Regulations to carry out this title 
may not require local programs to follow a particular in-
structional model, such as the provision of services outside 
the regular classroom or school program. 
‘‘SEC. 1402. AGREEMENTS AND RECORDS. 
‘‘(a) AGREEMENTS.—In the case in which a nego-
tiated rule making process is established under subsection 
(b) of section 1401, all published proposed regulations 
shall conform to agreements that result from the rule-
making described in section 1401 unless the Secretary re-
opens the negotiated rulemaking process. 
‘‘(b) RECORDS.—The Secretary shall ensure that an 
accurate and reliable record of agreements reached during 
the negotiations process is maintained. 
‘‘SEC. 1403. STATE ADMINISTRATION. 
‘‘(a) RULEMAKING.— 
‘‘(1) IN GENERAL.—Each State that receives 
funds under this title shall— 
‘‘(A) ensure that any State rules, regula-
tions, and policies relating to this title conform 
to the purposes of this title and provide any 
such proposed rules, regulations, and policies to 
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the committee of practitioners created under 
subsection (b) for review and comment; 
‘‘(B) minimize such rules, regulations, and 
policies to which the State’s local educational 
agencies and schools are subject; 
‘‘(C) eliminate or modify State and local 
fiscal accounting requirements in order to facili-
tate the ability of schools to consolidate funds 
under schoolwide programs; 
‘‘(D) identify any such rule, regulation, or 
policy as a State-imposed requirement; and 
‘‘(E)(i) identify any duplicative or con-
trasting requirements between the State and 
Federal rules or regulations; 
‘‘(ii) eliminate the rules and regulations 
that are duplicative of Federal requirements; 
and 
‘‘(iii) report any conflicting requirements 
to the Secretary and determine which Federal 
or State rule or regulation shall be followed. 
‘‘(2) 
SUPPORT
AND
FACILITATION.—State 
rules, regulations, and policies under this title shall 
support and facilitate local educational agency and 
school-level systemic reform designed to enable all 
children to meet the State academic standards. 
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‘‘(b) COMMITTEE OF PRACTITIONERS.— 
‘‘(1) IN
GENERAL.—Each State educational 
agency that receives funds under this title shall cre-
ate a State committee of practitioners to advise the 
State in carrying out its responsibilities under this 
title. 
‘‘(2) 
MEMBERSHIP.—Each 
such 
committee 
shall include— 
‘‘(A) as a majority of its members, rep-
resentatives from local educational agencies; 
‘‘(B) administrators, including the admin-
istrators of programs described in other parts 
of this title; 
‘‘(C) teachers from public charter schools, 
traditional public schools, and career and tech-
nical educators; 
‘‘(D) parents; 
‘‘(E) members of local school boards; 
‘‘(F) representatives of public charter 
school authorizers; 
‘‘(G) public charter school leaders; 
‘‘(H) representatives of private school chil-
dren; and 
‘‘(I) specialized instructional support per-
sonnel. 
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‘‘(3) DUTIES.—The duties of such committee 
shall include a review, before publication, of any pro-
posed or final State rule or regulation pursuant to 
this title. In an emergency situation where such rule 
or regulation must be issued within a very limited 
time to assist local educational agencies with the op-
eration of the program under this title, the State 
educational agency may issue a regulation without 
prior consultation, but shall immediately thereafter 
convene the State committee of practitioners to re-
view the emergency regulation before issuance in 
final form. 
‘‘SEC. 1404. RULE OF CONSTRUCTION ON EQUALIZED 
SPENDING. 
‘‘Nothing in this title shall be construed to mandate 
or prohibit equalized spending per pupil for a State, local 
educational agency, or school. 
‘‘SEC. 1405. RULE OF CONSTRUCTION FOR COLLECTIVE 
BARGAINING. 
‘‘Nothing in this title shall be construed to alter or 
otherwise affect the rights, remedies, and procedures af-
forded to school or local educational agency employees 
under Federal, State, or local laws (including applicable 
regulations or court orders) or under the terms of collec-
tive bargaining agreements, memoranda of understanding, 
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or other agreements between such employers and their em-
ployees.’’. 
TITLE 
II—TEACHER 
PREPARA-
TION AND EFFECTIVENESS 
SEC. 201. TEACHER PREPARATION AND EFFECTIVENESS. 
(a) HEADING.—The title heading for title II (20 
U.S.C. 6601 et seq.) is amended to read as follows: 
‘‘TITLE II—TEACHER PREPARA-
TION AND EFFECTIVENESS’’. 
(b) PART A.—Part A of title II (20 U.S.C. 6601 et 
seq.) is amended to read as follows: 
‘‘PART A—SUPPORTING EFFECTIVE 
INSTRUCTION 
‘‘SEC. 2101. PURPOSE. 
‘‘The purpose of this part is to provide grants to 
State educational agencies and subgrants to local edu-
cational agencies to— 
‘‘(1) increase student achievement consistent 
with State academic standards under section 
1111(b)(1); 
‘‘(2) improve teacher and school leader effec-
tiveness in classrooms and schools, respectively; 
‘‘(3) provide evidence-based, job-embedded, con-
tinuous professional development; and 
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‘‘(4) if a State educational agency or local edu-
cational agency so chooses, develop and implement 
teacher evaluation systems that use, in part, student 
achievement data to determine teacher effectiveness. 
‘‘Subpart 1—Grants to States 
‘‘SEC. 2111. ALLOTMENTS TO STATES. 
‘‘(a) IN GENERAL.—Of the amounts appropriated 
under section 3(b), the Secretary shall reserve 75 percent 
to make grants to States with applications approved under 
section 2112 to pay for the Federal share of the cost of 
carrying out the activities specified in section 2113. Each 
grant shall consist of the allotment determined for a State 
under subsection (b). 
‘‘(b) DETERMINATION OF ALLOTMENTS.— 
‘‘(1) RESERVATION OF FUNDS.—Of the amount 
reserved under subsection (a) for a fiscal year, the 
Secretary shall reserve— 
‘‘(A) not more than 1 percent to carry out 
national activities under section 2132; 
‘‘(B) one-half of 1 percent for allotments 
to outlying areas on the basis of their relative 
need, as determined by the Secretary, in ac-
cordance with the purpose of this part; and 
‘‘(C) one-half of 1 percent for the Sec-
retary of the Interior for programs under this 
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part in schools operated or funded by the Bu-
reau of Indian Education. 
‘‘(2) STATE ALLOTMENTS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), from the funds reserved under sub-
section (a) for any fiscal year and not reserved 
under paragraph (1), the Secretary shall allot 
to each State the sum of— 
‘‘(i) an amount that bears the same 
relationship to 50 percent of the funds as 
the number of individuals age 5 through 
17 in the State, as determined by the Sec-
retary on the basis of the most recent sat-
isfactory data, bears to the number of 
those individuals in all such States, as so 
determined; and 
‘‘(ii) an amount that bears the same 
relationship to 50 percent of the funds as 
the number of individuals age 5 through 
17 from families with incomes below the 
poverty line in the State, as determined by 
the Secretary on the basis of the most re-
cent satisfactory data, bears to the number 
of those individuals in all such States, as 
so determined. 
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‘‘(B) SMALL STATE MINIMUM.—No State 
receiving an allotment under subparagraph (A) 
may receive less than one-half of 1 percent of 
the total amount of funds allotted under such 
subparagraph for a fiscal year. 
‘‘(C) APPLICABILITY.— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply with respect to a fiscal year 
unless the Secretary certifies in writing to 
Congress for that fiscal year that the 
amount of funds allotted under subpara-
graph (A) to local educational agencies 
that serve a high percentage of students 
from families with incomes below the pov-
erty line is not less than the amount allot-
ted to such local educational agencies for 
fiscal year 2015. 
‘‘(ii) SPECIAL
RULE.—For a fiscal 
year for which subparagraph (A) does not 
apply, the Secretary shall allocate to each 
State the funds described in subparagraph 
(A) according to the formula set forth in 
subsection (b)(2)(B)(i) of this section as in 
effect on the day before the date of the en-
actment of the Student Success Act. 
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‘‘(c) REALLOTMENT.—If a State does not apply for 
an allotment under this section for any fiscal year or only 
a portion of the State’s allotment is allotted under sub-
section (b)(2), the Secretary shall reallot the State’s entire 
allotment or the remaining portion of its allotment, as the 
case may be, to the remaining States in accordance with 
subsection (b). 
‘‘SEC. 2112. STATE APPLICATION. 
‘‘(a) IN GENERAL.—For a State to be eligible to re-
ceive a grant under this subpart, the State educational 
agency shall submit an application to the Secretary at 
such time and in such a manner as the Secretary may 
reasonably require, which shall include the following: 
‘‘(1) A description of how the State educational 
agency will meet the requirements of this subpart. 
‘‘(2) A description of how the State educational 
agency will use a grant received under section 2111, 
including the grant funds the State will reserve for 
State-level activities under section 2113(a)(2). 
‘‘(3) A description of how the State educational 
agency will facilitate the sharing of evidence-based 
and other effective strategies among local edu-
cational agencies. 
‘‘(4) A description of how, and under what 
timeline, the State educational agency will allocate 
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subgrants under subpart 2 to local educational agen-
cies. 
‘‘(5) If applicable, a description of how the 
State educational agency will work with local edu-
cational agencies in the State to develop or imple-
ment a teacher or school leader evaluation system. 
‘‘(6) An assurance that the State educational 
agency will comply with section 6501 (regarding par-
ticipation by private school children and teachers). 
‘‘(7) A description of how the State will estab-
lish, implement, or improve policies and procedures 
on background checks for school employees and con-
tractors who have direct unsupervised access to stu-
dents, which may be conducted and administered by 
the State or local educational agencies, including 
by— 
‘‘(A) expanding the registries or reposi-
tories searched when conducting background 
checks, including— 
‘‘(i) the State criminal registry or re-
pository of the State in which the school 
employee resides; 
‘‘(ii) the State-based child abuse and 
neglect registries and databases of the 
State in which the school employee resides; 
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‘‘(iii) the Federal Bureau of Investiga-
tion fingerprint check using the Integrated 
Automated Fingerprint Identification Sys-
tem; 
‘‘(iv) the National Sex Offender Reg-
istry established under the Adam Walsh 
Child Protection and Safety Act of 2006 
(42 U.S.C. 16901 et seq.); and 
‘‘(v) the National Crime Information 
Center; 
‘‘(B) establishing, implementing, or im-
proving policies and procedures that prohibit 
employing as a school employee an individual 
who— 
‘‘(i) refuses to consent to a back-
ground check; 
‘‘(ii) makes false statements in con-
nection with a background check; 
‘‘(iii) has been convicted of a felony, 
consisting of— 
‘‘(I) homicide; 
‘‘(II) child abuse or neglect; 
‘‘(III) a crime against children, 
including child pornography; 
‘‘(IV) domestic violence; 
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‘‘(V) a crime involving rape or 
sexual assault; 
‘‘(VI) kidnaping; 
‘‘(VII) arson; or 
‘‘(VIII) physical assault, battery, 
or a drug-related offense, committed 
on or after the date that is 5 years 
before the date of the individual’s 
criminal background check; 
‘‘(iv) has been convicted of any other 
crimes, as determined by the State; or 
‘‘(v) is registered or required to be 
registered on a State sex offender registry 
or the National Sex Offender Registry es-
tablished under the Adam Walsh Child 
Protection and Safety Act of 2006 (42 
U.S.C. 16901 et seq.); 
‘‘(C) establishing, implementing, or im-
proving policies and procedures for States, local 
educational agencies, or schools to provide the 
results of background checks to— 
‘‘(i) individuals subject to the back-
ground checks in a statement that indi-
cates whether the individual is ineligible 
for such employment due to the back-
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ground check and includes information re-
lated to each disqualifying crime; 
‘‘(ii) the employer in a statement that 
indicates whether a school employee is eli-
gible or ineligible for employment, without 
revealing any disqualifying crime or other 
related information regarding the indi-
vidual; 
‘‘(iii) another employer in the same 
State or another State, as permitted under 
State law, without revealing any disquali-
fying crime or other related information re-
garding the individual; and 
‘‘(iv) another local educational agency 
in the same State or another State that is 
considering such school employee for em-
ployment, as permitted under State law, 
without revealing any disqualifying crime 
or other related information regarding the 
individual; and 
‘‘(D) developing, implementing, or improv-
ing mechanisms to assist local educational 
agencies and schools in effectively recognizing 
and quickly responding to incidents of child 
abuse by school employees. 
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‘‘(8) A description of any subjects the State has 
identified as being workforce critical subjects pursu-
ant to section 2234(6). 
‘‘(b) DEEMED APPROVAL.—An application submitted 
by a State educational agency under subsection (a) shall 
be deemed to be approved by the Secretary unless the Sec-
retary makes a written determination, prior to the expira-
tion of the 120-day period beginning on the date on which 
the Secretary received the application, that the application 
is not in compliance with this subpart. 
‘‘(c) DISAPPROVAL.—The Secretary shall not finally 
disapprove an application, except after giving the State 
educational agency notice and an opportunity for a hear-
ing. 
‘‘(d) NOTIFICATION.—If the Secretary finds that an 
application is not in compliance, in whole or in part, with 
this subpart, the Secretary shall— 
‘‘(1) give the State educational agency notice 
and an opportunity for a hearing; and 
‘‘(2) notify the State educational agency of the 
finding of noncompliance and, in such notification, 
shall— 
‘‘(A) cite the specific provisions in the ap-
plication that are not in compliance; and 
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‘‘(B) request additional information, only 
as to the noncompliant provisions, needed to 
make the application compliant. 
‘‘(e) RESPONSE.—If a State educational agency re-
sponds to a notification from the Secretary under sub-
section (d)(2) during the 45-day period beginning on the 
date on which the agency received the notification, and 
resubmits the application with the requested information 
described in subsection (d)(2)(B), the Secretary shall ap-
prove or disapprove such application prior to the later of— 
‘‘(1) the expiration of the 45-day period begin-
ning on the date on which the application is resub-
mitted; or 
‘‘(2) the expiration of the 120-day period de-
scribed in subsection (b). 
‘‘(f) FAILURE TO RESPOND.—If a State educational 
agency does not respond to a notification from the Sec-
retary under subsection (d)(2) during the 45-day period 
beginning on the date on which the agency received the 
notification, such application shall be deemed to be dis-
approved. 
‘‘SEC. 2113. STATE USE OF FUNDS. 
‘‘(a) IN GENERAL.—A State educational agency that 
receives a grant under section 2111 shall— 
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‘‘(1) reserve 95 percent of the grant funds to 
make subgrants to local educational agencies under 
subpart 2; and 
‘‘(2) use the remainder of the funds, after re-
serving funds under paragraph (1), for the State ac-
tivities described in subsection (b), except that the 
State may reserve not more than 1 percent of the 
grant funds for planning and administration related 
to carrying out activities described in subsection (b). 
‘‘(b) STATE-LEVEL
ACTIVITIES.—A State edu-
cational agency that receives a grant under section 2111— 
‘‘(1) shall use the amount described in sub-
section (a)(2) to fulfill the State educational agen-
cy’s responsibilities with respect to the proper and 
efficient administration of the subgrant program 
carried out under this part; and 
‘‘(2) may use the amount described in sub-
section (a)(2) to— 
‘‘(A) provide training and technical assist-
ance to local educational agencies on— 
‘‘(i) in the case of a State educational 
agency not implementing a statewide 
teacher evaluation system— 
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‘‘(I) the development and imple-
mentation of a teacher evaluation sys-
tem; and 
‘‘(II) training school leaders in 
using such evaluation system; or 
‘‘(ii) in the case of a State educational 
agency implementing a statewide teacher 
evaluation system, implementing such eval-
uation system; 
‘‘(B) disseminate and share evidence-based 
and other effective practices, including practices 
consistent with the principles of effectiveness 
described in section 2222(b), related to teacher 
and school leader effectiveness and professional 
development; 
‘‘(C) provide professional development for 
teachers, school leaders, and if appropriate, spe-
cialized instructional support personnel in the 
State consistent with section 2123(6); 
‘‘(D) provide training and technical assist-
ance to local educational agencies on— 
‘‘(i) in the case of a State educational 
agency not implementing a statewide 
school leader evaluation system, the devel-
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HR 5 PCS
opment and implementation of a school 
leader evaluation system; and 
‘‘(ii) in the case of a State educational 
agency implementing a statewide school 
leader evaluation system, implementing 
such evaluation system; 
‘‘(E) develop and implement policies in the 
State to address any teacher workforce short-
ages in high-need subjects, including in science, 
technology, 
engineering, 
math, 
computer 
science, and foreign languages; and 
‘‘(F) support State or local pay for success 
initiatives that meet the purposes of this part. 
‘‘Subpart 2—Subgrants to Local Educational 
Agencies 
‘‘SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGEN-
CIES. 
‘‘(a) IN GENERAL.—Each State receiving a grant 
under section 2111 shall use the funds reserved under sec-
tion 2113(a)(1) to award subgrants to local educational 
agencies under this section. 
‘‘(b) ALLOCATION OF FUNDS.—From the funds re-
served by a State under section 2113(a)(1), the State edu-
cational agency shall allocate to each local educational 
agency in the State the sum of— 
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HR 5 PCS
‘‘(1) an amount that bears the same relation-
ship to 50 percent of the funds as the number of in-
dividuals age 5 through 17 in the geographic area 
served by the local educational agency, as deter-
mined by the State on the basis of the most recent 
satisfactory data, bears to the number of those indi-
viduals in the geographic areas served by all the 
local educational agencies in the State, as so deter-
mined; and 
‘‘(2) an amount that bears the same relation-
ship to 50 percent of the funds as the number of in-
dividuals age 5 through 17 from families with in-
comes below the poverty line in the geographic area 
served by the local educational agency, as deter-
mined by the State on the basis of the most recent 
satisfactory data, bears to the number of those indi-
viduals in the geographic areas served by all the 
local educational agencies in the State, as so deter-
mined. 
‘‘SEC. 2122. LOCAL APPLICATIONS. 
‘‘To be eligible to receive a subgrant under this sub-
part, a local educational agency shall submit an applica-
tion to the State educational agency involved at such time, 
in such a manner, and containing such information as the 
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HR 5 PCS
State educational agency may reasonably require that, at 
a minimum, shall include the following: 
‘‘(1) A description of— 
‘‘(A) how the local educational agency will 
meet the requirements of this subpart; 
‘‘(B) how the activities to be carried out by 
the local educational agency under this subpart 
will be evidence-based, improve student aca-
demic achievement, and improve teacher and 
school leader effectiveness; and 
‘‘(C) if applicable, how, the local edu-
cational agency will work with parents, teach-
ers, school leaders, and other staff of the 
schools served by the local educational agency 
in developing and implementing a teacher eval-
uation system. 
‘‘(2) If applicable, a description of how the local 
educational agency will develop and implement a 
teacher or school leader evaluation system. 
‘‘(3) An assurance that the local educational 
agency will comply with section 6501 (regarding par-
ticipation by private school children and teachers). 
‘‘SEC. 2123. LOCAL USE OF FUNDS. 
‘‘A local educational agency receiving a subgrant 
under this subpart may use such funds for— 
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HR 5 PCS
‘‘(1) the development and implementation of a 
teacher evaluation system, administered through 
school leaders based on input from stakeholders list-
ed in subparagraph (E), that may— 
‘‘(A) use student achievement data derived 
from a variety of sources as a significant factor 
in determining a teacher’s evaluation, with the 
weight given to such data defined by the local 
educational agency; 
‘‘(B) use multiple measures of evaluation 
for evaluating teachers; 
‘‘(C) have more than 2 categories for rat-
ing the performance of teachers; 
‘‘(D) be used to make personnel decisions, 
as determined by the local educational agency; 
and 
‘‘(E) be based on input from parents, 
school leaders, teachers, and other staff of 
schools served by the local educational agency; 
‘‘(2) in the case of a local educational agency 
located in a State implementing a statewide teacher 
evaluation system, implementing such evaluation 
system; 
‘‘(3) the training of school leaders or other indi-
viduals for the purpose of evaluating teachers or 
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HR 5 PCS
school leaders under a teacher or school leader eval-
uation system, as appropriate; 
‘‘(4) in the case of a local educational agency 
located in a State implementing a statewide school 
leader evaluation system, to implement such evalua-
tion system; 
‘‘(5) in the case of a local educational agency 
located in a State not implementing a statewide 
school leader evaluation system, the development 
and implementation of a school leader evaluation 
system; 
‘‘(6) professional development for teachers, 
school leaders, and if appropriate, specialized in-
structional support personnel that is evidence-based, 
job-embedded, and continuous, such as— 
‘‘(A) subject-based professional develop-
ment for teachers, including for teachers of 
civic education, arts education, and computer 
science and other science, technology, engineer-
ing, and mathematics subjects; 
‘‘(B) professional development aligned with 
the State’s academic standards; 
‘‘(C) professional development to assist 
teachers in meeting the needs of students with 
different learning styles, particularly students 
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HR 5 PCS
with disabilities, English learners, and gifted 
and talented students; 
‘‘(D) professional development for teachers 
or school leaders identified as in need of addi-
tional support through data provided by a 
teacher or school leader evaluation system, as 
appropriate; 
‘‘(E) professional development based on 
the current science of learning, which includes 
research on positive brain change and cognitive 
skill development; 
‘‘(F) professional development for school 
leaders, including evidence-based mentorship 
programs for such leaders; 
‘‘(G) professional development on inte-
grated, 
interdisciplinary, 
and 
project-based 
teaching strategies, including for career and 
technical education teachers and teachers of 
computer science and other science, technology 
(including education about the harms of copy-
right piracy), engineering, and mathematics 
subjects; 
‘‘(H) professional development on teaching 
dual credit, dual enrollment, Advanced Place-
ment, or International Baccalaureate postsec-
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ondary-level courses to secondary school stu-
dents; 
‘‘(I) professional development for teachers, 
principals and other school administrators in 
early elementary grades that includes special-
ized knowledge about child development and 
learning, developmentally-appropriate curricula 
and teaching practices, meaningful family en-
gagement and collaboration with early care and 
education programs; 
‘‘(J) professional development, including 
through joint professional development opportu-
nities, for early childhood educators, teachers, 
principals, specialized instructional support per-
sonnel, and other school leaders; 
‘‘(K) training on child development, im-
proving instruction, and closing achievement 
gaps; or 
‘‘(L) professional development on restora-
tive justice and conflict resolution; 
‘‘(7) partnering with a public or private organi-
zation or a consortium of such organizations to de-
velop and implement a teacher evaluation system de-
scribed in subparagraph (A) or (B) of paragraph 
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HR 5 PCS
(1), or to administer professional development, as 
appropriate; 
‘‘(8) any activities authorized under section 
2222(a); 
‘‘(9) class size reduction, except that the local 
educational agency may use not more than 10 per-
cent of such funds for this purpose; or 
‘‘(10) carrying out activities related to pay for 
success initiatives that meet the purposes of this 
part. 
‘‘Subpart 3—General Provisions 
‘‘SEC. 2131. REPORTING REQUIREMENTS. 
‘‘(a) LOCAL EDUCATIONAL AGENCIES.—Each local 
educational agency receiving a subgrant under subpart 2 
shall submit to the State educational agency involved, on 
an annual basis until the last year in which the local edu-
cational agency receives such subgrant funds, a report 
on— 
‘‘(1) how the local educational agency is meet-
ing the purposes of this part described in section 
2101; 
‘‘(2) how the local educational agency is using 
such subgrant funds; 
‘‘(3) in the case of a local educational agency 
implementing a teacher or school leader evaluation 
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HR 5 PCS
system, the results of such evaluation system, except 
that such report shall not reveal personally identifi-
able information about an individual teacher or 
school leader; and 
‘‘(4) any such other information as the State 
educational agency may require, as long as student 
and teacher privacy is maintained. 
‘‘(b) STATE EDUCATIONAL AGENCIES.—Each State 
educational agency receiving a grant under subpart 1 shall 
submit to the Secretary a report, on an annual basis until 
the last year in which the State educational agency re-
ceives such grant funds, on— 
‘‘(1) how the State educational agency is meet-
ing the purposes of this part described in section 
2101; and 
‘‘(2) how the State educational agency is using 
such grant funds. 
‘‘SEC. 2132. NATIONAL ACTIVITIES. 
‘‘From the funds reserved by the Secretary under sec-
tion 2111(b)(1)(A), the Secretary shall, directly or 
through grants and contracts— 
‘‘(1) provide technical assistance to States and 
local educational agencies in carrying out activities 
under this part; and 
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HR 5 PCS
‘‘(2) acting through the Institute of Education 
Sciences, conduct national evaluations of activities 
carried out by State educational agencies and local 
educational agencies under this part. 
‘‘SEC. 2133. STATE DEFINED. 
‘‘In this part, the term ‘State’ means each of the 50 
States, the District of Columbia, and the Commonwealth 
of Puerto Rico. 
‘‘SEC. 2134. EMPLOYEE TRANSFERS. 
‘‘A local educational agency or State educational 
agency shall be ineligible for funds under this Act if such 
agency knowingly facilitates the transfer of any employee 
if the agency knows, or has probable cause to believe, that 
the employee engaged in sexual misconduct with a stu-
dent.’’. 
(c) PART B.—Part B of title II (20 U.S.C. 6661 et 
seq.) is amended to read as follows: 
‘‘PART B—TEACHER AND SCHOOL LEADER 
FLEXIBLE GRANT 
‘‘SEC. 2201. PURPOSE. 
‘‘The purpose of this part is to improve student aca-
demic achievement by— 
‘‘(1) supporting all State educational agencies, 
local educational agencies, schools, teachers, and 
school leaders to pursue innovative and evidence- 
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HR 5 PCS
based practices to help all students meet the State’s 
academic standards; and 
‘‘(2) increasing the number of teachers and 
school leaders who are effective in increasing student 
academic achievement. 
‘‘Subpart 1—Formula Grants to States 
‘‘SEC. 2211. STATE ALLOTMENTS. 
‘‘(a) RESERVATIONS.—From the amount appro-
priated under section 3(b) for any fiscal year, the Sec-
retary— 
‘‘(1) shall reserve 25 percent to award grants to 
States under this subpart; and 
‘‘(2) of the amount reserved under paragraph 
(1), shall reserve— 
‘‘(A) not more than 1 percent for national 
activities described in section 2233; 
‘‘(B) one-half of 1 percent for allotments 
to outlying areas on the basis of their relative 
need, as determined by the Secretary, in ac-
cordance with the purpose of this part; and 
‘‘(C) one-half of 1 percent for the Sec-
retary of the Interior for programs under this 
part in schools operated or funded by the Bu-
reau of Indian Education. 
‘‘(b) STATE ALLOTMENTS.— 
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‘‘(1) IN GENERAL.—From the total amount re-
served under subsection (a)(1) for each fiscal year 
and not reserved under subparagraphs (A) through 
(C) of subsection (a)(2), the Secretary shall allot, 
and make available in accordance with this section, 
to each State an amount that bears the same ratio 
to such sums as the school-age population of the 
State bears to the school-age population of all 
States. 
‘‘(2) SMALL STATE MINIMUM.—No State receiv-
ing an allotment under paragraph (1) may receive 
less than one-half of 1 percent of the total amount 
allotted under such paragraph. 
‘‘(3) REALLOTMENT.—If a State does not re-
ceive an allotment under this subpart for a fiscal 
year, the Secretary shall reallot the amount of the 
State’s allotment to the remaining States in accord-
ance with this section. 
‘‘(c) STATE APPLICATION.—In order to receive an al-
lotment under this section for any fiscal year, a State shall 
submit an application to the Secretary, at such time and 
in such manner as the Secretary may reasonably require. 
Such application shall— 
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‘‘(1) designate the State educational agency as 
the agency responsible for the administration and 
supervision of programs assisted under this part; 
‘‘(2) describe how the State educational agency 
will use funds received under this section for State 
level activities described in subsection (d)(3); 
‘‘(3) describe the procedures and criteria the 
State educational agency will use for reviewing appli-
cations and awarding subgrants in a timely manner 
to eligible entities under section 2221 on a competi-
tive basis; 
‘‘(4) describe how the State educational agency 
will ensure that subgrants made under section 2221 
are of sufficient size and scope to support effective 
programs that will help increase academic achieve-
ment in the classroom and are consistent with the 
purposes of this part; 
‘‘(5) describe the steps the State educational 
agency will take to ensure that eligible entities use 
subgrants received under section 2221 to carry out 
programs that implement effective strategies, includ-
ing by providing ongoing technical assistance and 
training, and disseminating evidence-based and other 
effective strategies to such eligible entities; 
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HR 5 PCS
‘‘(6) describe how programs under this part will 
be coordinated with other programs under this Act; 
and 
‘‘(7) include an assurance that, other than pro-
viding technical and advisory assistance and moni-
toring compliance with this part, the State edu-
cational agency has not exercised, and will not exer-
cise, any influence in the decisionmaking processes 
of eligible entities as to the expenditure of funds 
made pursuant to an application submitted under 
section 2221(b). 
‘‘(d) STATE USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Each State that receives an 
allotment under this section shall reserve not less 
than 92 percent of the amount allotted to such State 
under subsection (b), for each fiscal year, for sub-
grants to eligible entities under subpart 2. 
‘‘(2) STATE
ADMINISTRATION.—A State edu-
cational agency may reserve not more than 1 percent 
of the amount made available to the State under 
subsection (b) for the administrative costs of car-
rying out such State educational agency’s respon-
sibilities under this subpart. 
‘‘(3) STATE-LEVEL ACTIVITIES.— 
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HR 5 PCS
‘‘(A) INNOVATIVE TEACHER AND SCHOOL 
LEADER
ACTIVITIES.—A 
State 
educational 
agency shall reserve not more than 4 percent of 
the amount made available to the State under 
subsection (b) to carry out, solely, or in part-
nership with State agencies of higher education, 
1 or more of the following activities: 
‘‘(i) Reforming teacher and school 
leader certification, recertification, licens-
ing, and tenure systems to ensure that 
such systems are rigorous and that— 
‘‘(I) each teacher has the subject 
matter knowledge and teaching skills 
necessary to help students meet the 
State’s academic standards; and 
‘‘(II) school leaders have the in-
structional leadership skills to help 
teachers instruct and students learn. 
‘‘(ii) Improving the quality of teacher 
preparation programs within the State, in-
cluding through the use of appropriate stu-
dent achievement data and other factors to 
evaluate the quality of teacher preparation 
programs within the State. 
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HR 5 PCS
‘‘(iii) Carrying out programs that es-
tablish, expand, or improve alternative 
routes for State certification or licensure of 
teachers and school leaders, including such 
programs for— 
‘‘(I) 
mid-career 
professionals 
from other occupations, including 
computer science and other science, 
technology, engineering, and math 
fields; 
‘‘(II) former military personnel; 
and 
‘‘(III) recent graduates of an in-
stitution of higher education, with a 
record of academic distinction, who 
demonstrate the potential to become 
effective teachers or school leaders. 
‘‘(iv) Developing, or assisting eligible 
entities in developing— 
‘‘(I) performance-based pay sys-
tems for teachers and school leaders; 
‘‘(II) strategies that provide dif-
ferential, incentive, or bonus pay for 
teachers and school leaders; or 
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HR 5 PCS
‘‘(III) teacher and school leader 
advancement initiatives that promote 
professional growth and emphasize 
multiple career paths and pay dif-
ferentiation. 
‘‘(v) Developing, or assisting eligible 
entities in developing, new, evidence-based 
teacher and school leader induction and 
mentoring programs that are designed 
to— 
‘‘(I) improve instruction and stu-
dent academic achievement; and 
‘‘(II) increase the retention of ef-
fective teachers and school leaders. 
‘‘(vi) Providing professional develop-
ment for teachers and school leaders that 
is focused on improving teaching and stu-
dent academic achievement, including for 
students with different learning styles, par-
ticularly students with disabilities, English 
learners, gifted and talented students, and 
other special populations. 
‘‘(vii) Providing training and technical 
assistance to eligible entities that receive a 
subgrant under section 2221. 
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HR 5 PCS
‘‘(viii) Other activities identified by 
the State educational agency that meet the 
purposes of this part, including those ac-
tivities authorized under subparagraph 
(B). 
‘‘(ix) Supporting State or local pay for 
success initiatives that meet the purposes 
of this part. 
‘‘(B) TEACHER OR SCHOOL LEADER PREP-
ARATION ACADEMIES.— 
‘‘(i) IN GENERAL.—In the case of a 
State in which teacher or school leader 
preparation academies are allowable under 
State law, a State educational agency may 
reserve not more than 3 percent of the 
amount made available to the State under 
subsection (b) to support the establishment 
or expansion of one or more teacher or 
school leader preparation academies and, 
subject to the limitation under clause (iii), 
to support State authorizers for such acad-
emies. 
‘‘(ii) MATCHING
REQUIREMENT.—A 
State educational agency shall not provide 
funds under this subparagraph to support 
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HR 5 PCS
the establishment or expansion of a teach-
er or school leader preparation academy 
unless the academy agrees to provide, ei-
ther directly or through private contribu-
tions, non-Federal matching funds equal to 
not less than 10 percent of the amount of 
the funds the academy will receive under 
this subparagraph. 
‘‘(iii) FUNDING FOR STATE AUTHOR-
IZERS.—Not more than 5 percent of funds 
provided to a teacher or school leader prep-
aration academy under this subparagraph 
may be used to support activities of State 
authorizers for such academy. 
‘‘SEC. 2212. APPROVAL AND DISAPPROVAL OF STATE APPLI-
CATIONS. 
‘‘(a) DEEMED APPROVAL.—An application submitted 
by a State pursuant to section 2211(c) shall be deemed 
to be approved by the Secretary unless the Secretary 
makes a written determination, prior to the expiration of 
the 120-day period beginning on the date on which the 
Secretary received the application, that the application is 
not in compliance with section 2211(c). 
‘‘(b) DISAPPROVAL PROCESS.— 
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HR 5 PCS
‘‘(1) IN GENERAL.—The Secretary shall not fi-
nally disapprove an application submitted under sec-
tion 2211(c), except after giving the State edu-
cational agency notice and an opportunity for a 
hearing. 
‘‘(2) NOTIFICATION.—If the Secretary finds 
that an application is not in compliance, in whole or 
in part, with section 2211(c) the Secretary shall— 
‘‘(A) give the State educational agency no-
tice and an opportunity for a hearing; and 
‘‘(B) notify the State educational agency of 
the finding of noncompliance and, in such noti-
fication, shall— 
‘‘(i) cite the specific provisions in the 
application that are not in compliance; and 
‘‘(ii) request additional information, 
only as to the noncompliant provisions, 
needed to make the application compliant. 
‘‘(3) RESPONSE.—If a State educational agency 
responds to a notification from the Secretary under 
paragraph (2)(B) during the 45-day period begin-
ning on the date on which the State educational 
agency received the notification, and resubmits the 
application with the requested information described 
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HR 5 PCS
in paragraph (2)(B)(ii), the Secretary shall approve 
or disapprove such application prior to the later of— 
‘‘(A) the expiration of the 45-day period 
beginning on the date on which the application 
is resubmitted; or 
‘‘(B) the expiration of the 120-day period 
described in subsection (a). 
‘‘(4) FAILURE TO RESPOND.—If the State edu-
cational agency does not respond to a notification 
from the Secretary under paragraph (2)(B) during 
the 45-day period beginning on the date on which 
the State educational agency received the notifica-
tion, such application shall be deemed to be dis-
approved. 
‘‘Subpart 2—Local Competitive Grant Program 
‘‘SEC. 2221. LOCAL COMPETITIVE GRANT PROGRAM. 
‘‘(a) IN GENERAL.—A State that receives an allot-
ment under section 2211(b) for a fiscal year shall use the 
amount reserved under section 2211(d)(1) to award sub-
grants, on a competitive basis, to eligible entities in ac-
cordance with this section to enable such entities to carry 
out the programs and activities described in section 2222. 
‘‘(b) APPLICATION.— 
‘‘(1) IN GENERAL.—To be eligible to receive a 
subgrant under this section, an eligible entity shall 
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submit an application to the State educational agen-
cy at such time, in such manner, and including such 
information as the State educational agency may 
reasonably require. 
‘‘(2) CONTENTS.—Each application submitted 
under paragraph (1) shall include— 
‘‘(A) a description of the programs and ac-
tivities to be funded and how they are con-
sistent with the purposes of this part; and 
‘‘(B) an assurance that the eligible entity 
will comply with section 6501 (regarding par-
ticipation by private school children and teach-
ers). 
‘‘(c) PEER REVIEW.—In reviewing applications under 
this section, a State educational agency shall use a peer 
review process or other methods of assuring the quality 
of such applications but the review shall only judge the 
likelihood of the activity to increase student academic 
achievement. The reviewers shall not make a determina-
tion based on the policy of the proposed activity. 
‘‘(d) GEOGRAPHIC DIVERSITY.—A State educational 
agency shall distribute funds under this section equitably 
among geographic areas within the State, including rural, 
suburban, and urban communities. 
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‘‘(e) DURATION OF AWARDS.—A State educational 
agency may award subgrants under this section for a pe-
riod of not more than 5 years. 
‘‘(f) MATCHING.—An eligible entity receiving a 
subgrant under this section shall provide, either directly 
or through private contributions, non-Federal matching 
funds equal to not less than 10 percent of the amount 
of the subgrant. 
‘‘SEC. 2222. LOCAL AUTHORIZED ACTIVITIES. 
‘‘(a) IN GENERAL.—Each eligible entity receiving a 
subgrant under section 2221 shall use such subgrant 
funds to develop, implement, and evaluate comprehensive 
programs and activities, that are in accordance with the 
purpose of this part and— 
‘‘(1) are consistent with the principles of effec-
tiveness described in subsection (b); and 
‘‘(2) may include, among other programs and 
activities— 
‘‘(A) developing and implementing initia-
tives to assist in recruiting, hiring, and retain-
ing highly effective teachers and school leaders, 
including initiatives that provide— 
‘‘(i) differential, incentive, or bonus 
pay for teachers and school leaders; 
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‘‘(ii) performance-based pay systems 
for teachers and school leaders; 
‘‘(iii) teacher and school leader ad-
vancement initiatives that promote profes-
sional growth and emphasize multiple ca-
reer paths and pay differentiation; 
‘‘(iv) new teacher and school leader 
induction and mentoring programs that 
are designed to improve instruction, stu-
dent academic achievement, and to in-
crease teacher and school leader retention; 
and 
‘‘(v) teacher residency programs, and 
school leader residency programs, designed 
to develop and support new teachers or 
new school leaders, respectively; 
‘‘(B) supporting the establishment or ex-
pansion of teacher or school leader preparation 
academies under section 2211(d)(3)(B); 
‘‘(C) recruiting qualified individuals from 
other fields, including individuals from com-
puter science and other science, technology, en-
gineering, and math fields, mid-career profes-
sionals from other occupations, and former mili-
tary personnel; 
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‘‘(D) establishing, improving, or expanding 
model instructional programs to ensure that all 
children meet the State’s academic standards; 
‘‘(E) providing evidence-based, job embed-
ded, continuous professional development for 
teachers and school leaders focused on improv-
ing teaching and student academic achievement; 
‘‘(F) implementing programs based on the 
current science of learning, which includes re-
search on positive brain change and cognitive 
skill development; 
‘‘(G) recruiting and training teachers to 
teach dual credit, dual enrollment, Advanced 
Placement, or International Baccalaureate post-
secondary-level courses to secondary school stu-
dents; 
‘‘(H) other activities and programs identi-
fied as necessary by the local educational agen-
cy that meet the purpose of this part; and 
‘‘(I) carrying out activities related to pay 
for success initiatives that meet the purposes of 
this part. 
‘‘(b) PRINCIPLES OF EFFECTIVENESS.—For a pro-
gram or activity developed pursuant to this section to meet 
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HR 5 PCS
the principles of effectiveness, such program or activity 
shall— 
‘‘(1) be based upon an assessment of objective 
data regarding the need for programs and activities 
in the elementary schools and secondary schools 
served to increase the number of teachers and school 
leaders who are effective in improving student aca-
demic achievement; 
‘‘(2) reflect evidence-based research, or in the 
absence of a strong research base, reflect effective 
strategies in the field, that provide evidence that the 
program or activity will improve student academic 
achievement; and 
‘‘(3) include meaningful and ongoing consulta-
tion with, and input from, teachers, school leaders, 
and parents, in the development of the application 
and administration of the program or activity. 
‘‘Subpart 3—General Provisions 
‘‘SEC. 2231. PERIODIC EVALUATION. 
‘‘(a) IN GENERAL.—Each eligible entity and each 
teacher or school leader preparation academy that receives 
funds under this part shall undergo a periodic evaluation 
by the State educational agency involved to assess such 
entity’s or such academy’s progress toward achieving the 
purposes of this part. 
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‘‘(b) USE OF RESULTS.—The results of an evaluation 
described in subsection (a) of an eligible entity or academy 
shall be— 
‘‘(1) used to refine, improve, and strengthen 
such eligible entity or such academy, respectively; 
and 
‘‘(2) made available to the public upon request, 
with public notice of such availability provided. 
‘‘SEC. 2232. REPORTING REQUIREMENTS. 
‘‘(a) ELIGIBLE ENTITIES AND ACADEMIES.—Each 
eligible entity and each teacher or school leader prepara-
tion academy that receives funds from a State educational 
agency under this part shall prepare and submit annually 
to such State educational agency a report that includes— 
‘‘(1) a description of the progress of the eligible 
entity or teacher or school leader preparation acad-
emy, respectively, in meeting the purposes of this 
part; 
‘‘(2) a description of the programs and activi-
ties conducted by the eligible entity or teacher or 
school leader preparation academy, respectively, with 
funds received under this part; 
‘‘(3) how the eligible entity or teacher or school 
leader preparation academy, respectively, is using 
such funds; and 
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‘‘(4) any such other information as the State 
educational agency may reasonably require. 
‘‘(b) STATE EDUCATIONAL AGENCIES.—Each State 
educational agency that receives a grant under this part 
shall prepare and submit, annually, to the Secretary a re-
port that includes— 
‘‘(1) a description of the programs and activi-
ties conducted by the State educational agency with 
grant funds received under this part; 
‘‘(2) a description of the progress of the State 
educational agency in meeting the purposes of this 
part described in section 2201; 
‘‘(3) how the State educational agency is using 
grant funds received under this part; 
‘‘(4) the methods and criteria the State edu-
cational agency used to award subgrants in a timely 
manner to eligible entities under section 2221 and, 
if applicable, funds in a timely manner to teacher or 
school 
leader 
academies 
under 
section 
2211(d)(3)(B); and 
‘‘(5) the results of the periodic evaluations con-
ducted under section 2231. 
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‘‘SEC. 2233. NATIONAL ACTIVITIES. 
‘‘From the funds reserved by the Secretary under sec-
tion 2211(a)(2)(A), the Secretary shall, directly or 
through grants and contracts— 
‘‘(1) provide technical assistance to States and 
eligible entities in carrying out activities under this 
part; and 
‘‘(2) acting through the Institute of Education 
Sciences, conduct national evaluations of activities 
carried out by States and eligible entities under this 
part. 
‘‘SEC. 2234. DEFINITIONS. 
‘‘In this part: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a local educational agency or consor-
tium of local educational agencies; 
‘‘(B) an institution of higher education or 
consortium of such institutions in partnership 
with a local educational agency or consortium 
of local educational agencies; 
‘‘(C) a for-profit organization, a nonprofit 
organization, or a consortium of for-profit or 
nonprofit organizations in partnership with a 
local educational agency or consortium of local 
educational agencies; or 
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‘‘(D) a consortium of the entities described 
in subparagraphs (B) and (C). 
‘‘(2) STATE.—The term ‘State’ means each of 
the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico. 
‘‘(3) STATE AUTHORIZER.—The term ‘State au-
thorizer’ means an entity designated by the Gov-
ernor of a State to authorize teacher or school leader 
preparation academies within the State that— 
‘‘(A) enters into an agreement with a 
teacher or school leader preparation academy 
that— 
‘‘(i) specifies the goals expected of the 
academy, which, at a minimum, include the 
goals described in paragraph (4); and 
‘‘(ii) does not reauthorize the academy 
if such goals are not met; 
‘‘(B) may be a nonprofit organization, a 
State educational agency, or other public entity, 
or consortium of such entities (including a con-
sortium of State educational agencies); and 
‘‘(C) has a timely and efficient approval 
process to approve or disapprove a teacher or 
school leader preparation academy. 
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‘‘(4) TEACHER OR SCHOOL LEADER PREPARA-
TION ACADEMY.—The term ‘teacher or school leader 
preparation academy’ means a public or private enti-
ty, or a nonprofit or for-profit organization, which 
may be an institution of higher education or an or-
ganization affiliated with an institution of higher 
education, that will prepare teachers or school lead-
ers to serve in schools, and that— 
‘‘(A) enters into an agreement with a State 
authorizer that specifies the goals expected of 
the academy, including— 
‘‘(i) a requirement that prospective 
teachers or school leaders who are enrolled 
in a teacher or school leader preparation 
academy receive a significant part of their 
training through clinical preparation that 
partners the prospective candidate with an 
effective teacher or school leader, respec-
tively, with a demonstrated record of in-
creasing 
or 
producing 
high 
student 
achievement, while also receiving concur-
rent instruction from the academy in the 
content area (or areas) in which the pro-
spective teacher or school leader will be-
come certified or licensed; 
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‘‘(ii) the number of effective teachers 
or school leaders, respectively, who will 
demonstrate success in increasing or pro-
ducing high student achievement that the 
academy will produce; and 
‘‘(iii) a requirement that a teacher or 
school leader preparation academy will only 
award a certificate of completion after the 
graduate demonstrates that the graduate is 
an effective teacher or school leader, re-
spectively, with a demonstrated record of 
increasing or producing high student 
achievement, except that an academy may 
award a provisional certificate for the pe-
riod necessary to allow the graduate to 
demonstrate such effectiveness; 
‘‘(B) does not have restrictions on the 
methods the academy will use to train prospec-
tive teacher or school leader candidates, includ-
ing— 
‘‘(i) obligating (or prohibiting) the 
academy’s faculty to hold advanced degrees 
or conduct academic research; 
‘‘(ii) restrictions related to the acad-
emy’s physical infrastructure; 
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‘‘(iii) restrictions related to the num-
ber of course credits required as part of 
the program of study; 
‘‘(iv) restrictions related to the under-
graduate coursework completed by teachers 
teaching or working on alternative certifi-
cates, licenses, or credentials, as long as 
such teachers have successfully passed all 
relevant State-approved content area ex-
aminations; or 
‘‘(v) restrictions related to obtaining 
accreditation from an accrediting body for 
purposes of becoming an academy; 
‘‘(C) limits admission to its program to 
prospective teacher or school leader candidates 
who demonstrate strong potential to improve 
student achievement, based on a rigorous selec-
tion process that reviews a candidate’s prior 
academic achievement or record of professional 
accomplishment; and 
‘‘(D) results in a certificate of completion 
that the State may recognize as at least the 
equivalent of a master’s degree in education for 
the purposes of hiring, retention, compensation, 
and promotion in the State. 
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‘‘(5) TEACHER
RESIDENCY
PROGRAM.—The 
term ‘teacher residency program’ means a school- 
based teacher preparation program in which a pro-
spective teacher— 
‘‘(A) for one academic year, teaches along-
side an effective teacher, as determined by a 
teacher evaluation system implemented under 
part A, who is the teacher of record; 
‘‘(B) receives concurrent instruction during 
the year described in subparagraph (A) from 
the partner institution (as defined in section 
200 of the Higher Education Act of 1965 (20 
U.S.C. 1021)), which courses may be taught by 
local educational agency personnel or residency 
program faculty, in the teaching of the content 
area in which the teacher will become certified 
or licensed; and 
‘‘(C) acquires effective teaching skills. 
‘‘(6) WORKFORCE
CRITICAL
SUBJECT.—The 
term ‘workforce critical subject’ means an academic 
subject of urgent importance to the current and fu-
ture workforce needs of the State, including science, 
technology, engineering, math, and any other subject 
that has been identified by the State, in consultation 
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with employer, workforce, community, educator, par-
ent and professional stakeholders.’’. 
(d) PART C.—Part C of title II (20 U.S.C. 6671 et 
seq.) is amended— 
(1) by striking subparts 1 through 4; 
(2) by striking the heading relating to subpart 
5; 
(3) by striking sections 2361 and 2368; 
(4) in section 2362, by striking ‘‘principals’’ 
and inserting ‘‘school leaders’’; 
(5) in section 2363(6)(A), by striking ‘‘prin-
cipal’’ and inserting ‘‘school leader’’; 
(6) in section 2366(b), by striking ‘‘ate law’’ 
and inserting ‘‘(3) A State law’’; 
(7) by redesignating section 2362 as section 
2361; 
(8) by redesignating sections 2364 through 
2367 as sections 2362 through 2365, respectively; 
and 
(9) by redesignating section 2363 as section 
2366 and transferring such section to appear after 
section 2365 (as so redesignated). 
(e) PART D.—Part D of title II (20 U.S.C. 6751 et 
seq.) is amended to read as follows: 
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‘‘PART D—GENERAL PROVISIONS 
‘‘SEC. 2401. INCLUSION OF CHARTER SCHOOLS. 
‘‘In this title, the term ‘local educational agency’ in-
cludes a charter school (as defined in section 6101) that, 
in the absence of this section, would not have received 
funds under this title. 
‘‘SEC. 2402. PARENTS’ RIGHT TO KNOW. 
‘‘At the beginning of each school year, a local edu-
cational agency that receives funds under this title shall 
notify the parents of each student attending any school 
receiving funds under this title that the parents may re-
quest, and the agency will provide the parents on request 
(and in a timely manner), information regarding the pro-
fessional qualifications of the student’s classroom teachers 
any assessments mandated by the State educational agen-
cy or local educational agency for the student for that 
school year, and any local educational agency policy re-
garding student participation in such assessments. 
‘‘SEC. 2403. SUPPLEMENT, NOT SUPPLANT. 
‘‘Funds received under this title shall be used to sup-
plement, and not supplant, non-Federal funds that would 
otherwise be used for activities authorized under this 
title.’’. 
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SEC. 202. CONFORMING REPEALS. 
(a) CONFORMING REPEALS.—Title II of the Higher 
Education Act of 1965 (20 U.S.C. 1021 et seq.) is amend-
ed by repealing sections 201 through 204. 
(b) EFFECTIVE DATE.—The repeals made by sub-
section (a) shall take effect October 1, 2015. 
TITLE III—PARENTAL ENGAGE-
MENT 
AND 
LOCAL 
FLEXI-
BILITY 
SEC. 301. PARENTAL ENGAGEMENT AND LOCAL FLEXI-
BILITY. 
Title III (20 U.S.C. 6801 et seq.) is amended to read 
as follows: 
‘‘TITLE III—PARENTAL ENGAGE-
MENT 
AND 
LOCAL 
FLEXI-
BILITY 
‘‘PART A—PARENTAL ENGAGEMENT 
‘‘Subpart 1—Charter School Program 
‘‘SEC. 3101. SENSE OF CONGRESS; PURPOSE. 
‘‘(a) SENSE OF CONGRESS.— 
‘‘(1) FINDINGS.—The Congress finds the fol-
lowing: 
‘‘(A) The number of public charter schools 
has dramatically increased in recent years. Be-
tween the 2008–2009 school year and the 
2013–2014 school year, there was a 77 percent 
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increase in the number of students attending 
public charter schools and a 39 percent increase 
in the number of schools. 
‘‘(B) Charter schools serve a very diverse 
population of students. Nationally, 57 percent 
of students enrolled in charter schools are mi-
nority students, while only 39 percent of stu-
dents in non-charter public schools are minority 
students. 
‘‘(C) For the 2014–2015 school year, there 
are more than 6700 public charter schools serv-
ing about 2.9 million students. This represents 
a 4 percent growth in the number of open char-
ter schools, and a 14 percent increase in stu-
dent enrollment from the 2013–2014 school 
year. 
‘‘(D) There are more than one million stu-
dent names on charter school waiting lists. 
‘‘(E) Charter schools are open in areas 
where students need better education options, 
including areas that serve economically dis-
advantaged kids. Almost 50 percent of the stu-
dents attending charter schools qualify for free 
or reduced priced lunch, a slightly larger per-
centage than non-charter public schools. 
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‘‘(F) Charter schools serve students in all 
areas, from urban cities to rural towns through 
traditional brick and mortar schools, blended 
learning models, and online programs, giving 
parents across the Nation options to find the 
best learning environment for their children. 
‘‘(G) Charter schools give parents the op-
portunity to find the right place for their child 
to learn. Whether they are looking for digital 
learning, Montessori, or a more structured envi-
ronment, charter schools provide a variety of 
education options for families. 
‘‘(H) Charter schools have strong account-
ability to parents and the community because 
they have to meet the same State academic ac-
countability requirements as all other public 
schools, satisfy the terms of their charter with 
their authorizing authority, and satisfy parents 
who have selected the school for their children. 
‘‘(2) SENSE OF CONGRESS.—It is the sense of 
the Congress that charter schools are a critical part 
of our education system in this Nation and the Con-
gress believes we must support opening more quality 
charter schools to help students succeed in their fu-
ture. 
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‘‘(b) PURPOSE.—It is the purpose of this subpart 
to— 
‘‘(1) improve the United States education sys-
tem and education opportunities for all Americans 
by supporting innovation in public education in pub-
lic school settings that prepare students to compete 
and contribute to the global economy and a stronger 
America; 
‘‘(2) provide financial assistance for the plan-
ning, program design, and initial implementation of 
charter schools; 
‘‘(3) expand the number of high-quality charter 
schools available to students across the Nation; 
‘‘(4) evaluate the impact of such schools on stu-
dent achievement, families, and communities, and 
share best practices between charter schools and 
other public schools; 
‘‘(5) encourage States to provide support to 
charter schools for facilities financing in an amount 
more nearly commensurate to the amount the States 
have typically provided for traditional public schools; 
‘‘(6) improve student services to increase oppor-
tunities for students with disabilities, English learn-
ers, and other traditionally underserved students to 
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attend charter schools and meet challenging State 
academic achievement standards; 
‘‘(7) support efforts to strengthen the charter 
school authorizing process to improve performance 
management, 
including 
transparency, 
oversight, 
monitoring, and evaluation of such schools; and 
‘‘(8) support quality accountability and trans-
parency in the operational performance of all au-
thorized public chartering agencies, which include 
State educational agencies, local educational agen-
cies, and other authorizing entities. 
‘‘SEC. 3102. PROGRAM AUTHORIZED. 
‘‘(a) IN GENERAL.—This subpart authorizes the Sec-
retary to carry out a charter school program that supports 
charter schools that serve elementary school and sec-
ondary school students by— 
‘‘(1) supporting the startup of charter schools, 
and the replication and expansion of high-quality 
charter schools; 
‘‘(2) assisting charter schools in accessing cred-
it to acquire and renovate facilities for school use; 
and 
‘‘(3) carrying out national activities to sup-
port— 
‘‘(A) charter school development; 
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‘‘(B) the dissemination of best practices of 
charter schools for all schools; 
‘‘(C) the evaluation of the impact of the 
program on schools participating in the pro-
gram; and 
‘‘(D) stronger charter school authorizing. 
‘‘(b) FUNDING
ALLOTMENT.—From the amount 
made available under section 3(c)(1)(A) for a fiscal year, 
the Secretary shall— 
‘‘(1) reserve 12.5 percent to support charter 
school facilities assistance under section 3104; 
‘‘(2) reserve not more than 10 percent to carry 
out national activities under section 3105; and 
‘‘(3) use the remaining amount after the Sec-
retary reserves funds under paragraphs (1) and (2) 
to carry out section 3103. 
‘‘(c) PRIOR GRANTS AND SUBGRANTS.—The recipi-
ent of a grant or subgrant under this subpart or subpart 
2, as such subpart was in effect on the day before the 
date of the enactment of the Student Success Act, shall 
continue to receive funds in accordance with the terms and 
conditions of such grant or subgrant. 
‘‘(d) GAO REPORT.—Not later than 3 years after the 
date of the enactment of the Student Success Act, the 
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Comptroller General of the United States shall submit a 
report to the Secretary and Congress that— 
‘‘(1) examines whether the funds authorized to 
be reserved by State entities for administrative costs 
under section 3103(b)(1)(C) is appropriate; and 
‘‘(2) if such reservation of funds is determined 
not to be appropriate, makes recommendations on 
the appropriate reservation of funding for such ad-
ministrative costs. 
‘‘SEC. 3103. GRANTS TO SUPPORT HIGH-QUALITY CHARTER 
SCHOOLS. 
‘‘(a) IN GENERAL.—From the amount reserved 
under section 3102(b)(3), the Secretary shall award 
grants to State entities having applications approved pur-
suant to subsection (f) to enable such entities to— 
‘‘(1) award subgrants to eligible applicants for 
opening and preparing to operate— 
‘‘(A) new charter schools; 
‘‘(B) replicated, high-quality charter school 
models; or 
‘‘(C) 
expanded, 
high-quality 
charter 
schools; and 
‘‘(2) provide technical assistance to eligible ap-
plicants and authorized public chartering agencies in 
carrying out the activities described in paragraph (1) 
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and work with authorized public chartering agencies 
in the State to improve authorizing quality. 
‘‘(b) STATE USES OF FUNDS.— 
‘‘(1) IN GENERAL.—A State entity receiving a 
grant under this section shall— 
‘‘(A) use not less than 90 percent of the 
grant funds to award subgrants to eligible ap-
plicants, in accordance with the quality charter 
school program described in the State entity’s 
application approved pursuant to subsection (f), 
for the purposes described in subparagraphs 
(A) through (C) of subsection (a)(1); 
‘‘(B) reserve not less than 7 percent of 
such funds to carry out the activities described 
in subsection (a)(2); and 
‘‘(C) reserve not more than 3 percent of 
such funds for administrative costs which may 
include technical assistance. 
‘‘(2) CONTRACTS AND GRANTS.—A State entity 
may use a grant received under this section to carry 
out the activities described in subparagraphs (A) 
and (B) of paragraph (1) directly or through grants, 
contracts, or cooperative agreements. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this Act shall prohibit the Secretary from awarding 
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grants to States that use a weighted lottery to give 
slightly better chances for admission to all, or a sub-
set of, educationally disadvantaged students if— 
‘‘(A) the use of weighted lotteries in favor 
of such students is not prohibited by State law, 
and such State law is consistent with laws de-
scribed in section 6101(3)(G); and 
‘‘(B) such weighted lotteries are not used 
for the purpose of creating schools exclusively 
to serve a particular subset of students. 
‘‘(c) PROGRAM PERIODS; PEER REVIEW; GRANT 
NUMBER AND AMOUNT; DIVERSITY OF PROJECTS; WAIV-
ERS.— 
‘‘(1) PROGRAM PERIODS.— 
‘‘(A) GRANTS.—A grant awarded by the 
Secretary to a State entity under this section 
shall be for a period of not more than 5 years. 
‘‘(B) SUBGRANTS.—A subgrant awarded 
by a State entity under this section shall be for 
a period of not more than 5 years, of which an 
eligible applicant may use not more than 18 
months for planning and program design. 
‘‘(2) PEER REVIEW.—The Secretary, and each 
State entity receiving a grant under this section, 
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shall use a peer review process to review applications 
for assistance under this section. 
‘‘(3) GRANT AWARDS.—The Secretary shall— 
‘‘(A) for each fiscal year for which funds 
are appropriated under section 3(c)(1)(A)— 
‘‘(i) award not less than 3 grants 
under this section; 
‘‘(ii) wholly fund each grant awarded 
under this section, without making con-
tinuation awards; and 
‘‘(iii) fully obligate the funds appro-
priated for the purpose of awarding grants 
under this section in the fiscal year for 
which such grants are awarded; and 
‘‘(B) prior to the start of the final year of 
the grant period of each grant awarded under 
this section to a State entity, review whether 
the State entity is using the grant funds for the 
agreed upon uses of funds and whether the full 
amount of the grant will be needed for the re-
mainder of the grant period and may, as deter-
mined necessary based on that review, termi-
nate or reduce the amount of the grant and re-
allocate the remaining grant funds to other 
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State entities during the succeeding grant com-
petition under this section. 
‘‘(4) DIVERSITY OF PROJECTS.—Each State en-
tity receiving a grant under this section shall award 
subgrants under this section in a manner that, to 
the extent possible, ensures that such subgrants— 
‘‘(A) are distributed throughout different 
areas, including urban, suburban, and rural 
areas; and 
‘‘(B) will assist charter schools rep-
resenting a variety of educational approaches. 
‘‘(5) WAIVERS.—The Secretary may waive any 
statutory or regulatory requirement over which the 
Secretary exercises administrative authority, except 
for any such requirement relating to the elements of 
a charter school described in section 6101(3), if— 
‘‘(A) the waiver is requested in an ap-
proved application under this section; and 
‘‘(B) the Secretary determines that grant-
ing such a waiver will promote the purposes of 
this subpart. 
‘‘(d) LIMITATIONS.— 
‘‘(1) GRANTS.—The Secretary shall not award 
a grant to a State entity under this section in a case 
in which such award would result in more than 1 
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grant awarded under this section being carried out 
in a State at the same time. 
‘‘(2) SUBGRANTS.—An eligible applicant may 
not receive more than 1 subgrant under this section 
per individual charter school for a 5-year period, un-
less the eligible applicant demonstrates to the State 
entity not less than 3 years of improved educational 
results in the areas described in subparagraphs (A) 
and (D) of section 3110(7) for students enrolled in 
such charter school. 
‘‘(e) APPLICATIONS.—A State entity desiring to re-
ceive a grant under this section shall submit an application 
to the Secretary at such time and in such manner as the 
Secretary may require. The application shall include the 
following: 
‘‘(1) DESCRIPTION OF PROGRAM.—A descrip-
tion of the State entity’s objectives under this sec-
tion and how the objectives of the State entity’s 
quality charter school program will be carried out, 
including a description— 
‘‘(A) of how the State entity— 
‘‘(i) will support the opening of new 
charter schools, replicated, high-quality 
charter school models, or expanded, high- 
quality charter schools, and a description 
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of the proposed number of each type of 
charter school or model, if applicable, to be 
opened under the State entity’s program; 
‘‘(ii) 
will 
inform 
eligible 
charter 
schools, developers, and authorized public 
chartering agencies of the availability of 
funds under the program; 
‘‘(iii) will work with eligible applicants 
to ensure that the eligible applicants access 
all Federal funds that they are eligible to 
receive, and help the charter schools sup-
ported by the applicants and the students 
attending the charter schools— 
‘‘(I) participate in the Federal 
programs in which the schools and 
students are eligible to participate; 
‘‘(II) receive the commensurate 
share of Federal funds the schools 
and students are eligible to receive 
under such programs; and 
‘‘(III) meet the needs of students 
served under such programs, including 
students with disabilities and English 
learners; 
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‘‘(iv) will have clear plans and proce-
dures to assist students enrolled in a char-
ter school that closes or loses its charter to 
attend other high-quality schools; 
‘‘(v) in the case in which the State en-
tity is not a State educational agency— 
‘‘(I) will work with the State edu-
cational 
agency 
and 
the 
charter 
schools in the State to maximize char-
ter school participation in Federal and 
State programs for charter schools; 
and 
‘‘(II) will work with the State 
educational agency to adequately op-
erate the State entity’s program 
under this section, where applicable; 
‘‘(vi) will ensure each eligible appli-
cant that receives a subgrant under the 
State entity’s program to open and prepare 
to operate a new charter school, a rep-
licated, high-quality charter school model, 
or an expanded, high-quality charter 
school— 
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‘‘(I) will ensure such school or 
model meets the requirements under 
section 6101(3); and 
‘‘(II) is prepared to continue to 
operate such school or model, in a 
manner consistent with the eligible 
applicant’s 
application, 
after 
the 
subgrant funds have expired; 
‘‘(vii) will support charter schools in 
local educational agencies with large num-
bers of schools identified by the State for 
improvement, including supporting the use 
of charter schools to improve, or in turning 
around, struggling schools; 
‘‘(viii) will work with charter schools 
to promote inclusion of all students, in-
cluding eliminating any barriers to enroll-
ment for foster youth or unaccompanied 
homeless youth, and support all students 
once they are enrolled to promote retention 
including through the use of fair discipli-
nary practice; 
‘‘(ix) will work with charter schools on 
recruitment practices, including efforts to 
engage groups that may otherwise have 
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limited opportunities to participate in char-
ter schools, and to ensure such schools do 
not have in effect policies or procedures 
that may create barriers to enrollment of 
students, including educationally disadvan-
taged students, and are in compliance with 
all Federal and State laws on enrollment 
practices; 
‘‘(x) will share best and promising 
practices between charter schools and 
other public schools, including, where ap-
propriate, instruction and professional de-
velopment in science, technology, engineer-
ing, and math education, including com-
puter science, and other subjects; 
‘‘(xi) will ensure the charter schools 
receiving funds under the State entity’s 
program meet the educational needs of 
their students, including students with dis-
abilities and English learners; 
‘‘(xii) will support efforts to increase 
quality initiatives, including meeting the 
quality authorizing elements described in 
paragraph (2)(E); 
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‘‘(xiii) in the case of a State entity 
not described in clause (xiv), will provide 
oversight of authorizing activity, including 
how the State will help ensure better au-
thorizing, such as by establishing author-
izing standards that may include approv-
ing, actively monitoring, and re-approving 
or revoking the authority of an authorized 
public chartering agency based on the per-
formance of the charter schools authorized 
by such agency in the areas of student 
achievement, student safety, financial and 
operational management, and compliance 
with all applicable statutes and regula-
tions; 
‘‘(xiv) in the case of a State entity de-
fined in subsection (i)(4), will work with 
the State to support the State’s system of 
assistance and oversight of authorized pub-
lic chartering agencies for authorizing ac-
tivity described in clause (xiii); and 
‘‘(xv) will work with eligible applicants 
receiving a subgrant under the State enti-
ty’s program to support the opening of 
charter schools or charter school models 
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described in clause (i) that are secondary 
schools; 
‘‘(B) of the extent to which the State enti-
ty— 
‘‘(i) is able to meet and carry out the 
priorities listed in subsection (f)(2); 
‘‘(ii) 
is 
working 
to 
develop 
or 
strengthen a cohesive statewide system to 
support the opening of new charter 
schools, replicated, high-quality charter 
school models, or expanded, high-quality 
charter schools; and 
‘‘(iii) 
is 
working 
to 
develop 
or 
strengthen a cohesive strategy to encour-
age collaboration between charter schools 
and local educational agencies on the shar-
ing of best practices; 
‘‘(C) of how the State entity will carry out 
the subgrant competition, including— 
‘‘(i) a description of the application 
each eligible applicant desiring to receive a 
subgrant will submit, including— 
‘‘(I) a description of the roles 
and responsibilities of the eligible ap-
plicant, partner organizations, and 
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management organizations, including 
the administrative and contractual 
roles and responsibilities; 
‘‘(II) a description of the quality 
controls agreed to between the eligible 
applicant and the authorized public 
chartering agency involved, such as a 
contract or performance agreement, 
how a school’s performance in the 
State’s academic accountability sys-
tem will be one of the most important 
factors for renewal or revocation of 
the school’s charter, and how the 
State entity and the authorized public 
chartering agency involved will reserve 
the right to revoke or not renew a 
school’s charter based on financial, 
structural, or operational factors in-
volving the management of the school; 
‘‘(III) a description of how the el-
igible applicant will solicit and con-
sider input from parents and other 
members of the community on the im-
plementation and operation of each 
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charter school that will receive funds 
under the State entity’s program; and 
‘‘(IV) 
a 
description 
of 
the 
planned activities and expenditures 
for the subgrant funds for purposes of 
opening and preparing to operate a 
new charter school, a replicated, high- 
quality charter school model, or an ex-
panded, high-quality charter school, 
and how the school or model will 
maintain financial sustainability after 
the end of the subgrant period; and 
‘‘(ii) a description of how the State 
entity will review applications; 
‘‘(D) in the case of a State entity that 
partners with an outside organization to carry 
out the State entity’s quality charter school 
program, in whole or in part, of the roles and 
responsibilities of this partner; 
‘‘(E) of how the State entity will help the 
charter schools receiving funds under the State 
entity’s program consider the transportation 
needs of the schools’ students; and 
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‘‘(F) of how the State entity will support 
diverse charter school models, including models 
that serve rural communities. 
‘‘(2) ASSURANCES.—Assurances, including a 
description of how the assurances will be met, 
that— 
‘‘(A) each charter school receiving funds 
under the State entity’s program will have a 
high degree of autonomy over budget and oper-
ations; 
‘‘(B) the State entity will support charter 
schools in meeting the educational needs of 
their students as described in paragraph 
(1)(A)(xi); 
‘‘(C) the State entity will ensure that the 
authorized public chartering agency of any 
charter school that receives funds under the 
State entity’s program— 
‘‘(i) adequately monitors each such 
charter school in recruiting, enrolling, and 
meeting the needs of all students, includ-
ing students with disabilities and English 
learners; and 
‘‘(ii) ensures that each such charter 
school solicits and considers input from 
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parents and other members of the commu-
nity on the implementation and operation 
of the school; 
‘‘(D) the State entity will provide adequate 
technical assistance to eligible applicants to— 
‘‘(i) meet the objectives described in 
clauses (viii) and (ix) of paragraph (1)(A) 
and subparagraph (B) of this paragraph; 
and 
‘‘(ii) recruit, enroll, and retain tradi-
tionally underserved students, including 
students with disabilities and English 
learners, at rates similar to traditional 
public schools; 
‘‘(E) the State entity will promote quality 
authorizing, such as through providing technical 
assistance and supporting all authorized public 
chartering agencies in the State to improve the 
oversight of their charter schools, including 
by— 
‘‘(i) assessing annual performance 
data of the schools, including, as appro-
priate, graduation rates, student academic 
growth, and rates of student attrition; 
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‘‘(ii) reviewing the schools’ inde-
pendent, annual audits of financial state-
ments conducted in accordance with gen-
erally accepted accounting principles, and 
ensuring any such audits are publically re-
ported; and 
‘‘(iii) holding charter schools account-
able to the academic, financial, and oper-
ational quality controls agreed to between 
the charter school and the authorized pub-
lic chartering agency involved, such as 
through renewal, non-renewal, or revoca-
tion of the school’s charter; 
‘‘(F) the State entity will work to ensure 
that charter schools are included with the tradi-
tional public schools in decisionmaking about 
the public school system in the State; and 
‘‘(G) The State entity will ensure that each 
charter school receiving funds under the State 
entity’s program makes publicly available, con-
sistent with the dissemination requirements of 
the annual State report card, information to 
help parents make informed decisions about the 
education options available to their children, in-
cluding information for each school on— 
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‘‘(i) the educational program; 
‘‘(ii) student support services; 
‘‘(iii) annual performance and enroll-
ment data, disaggregated by the groups of 
students 
described 
in 
section 
1111(b)(3)(B)(ii)(II), except that such 
disaggregation shall not be required in a 
case in which the number of students in a 
group is insufficient to yield statistically 
reliable information or the results would 
reveal personally identifiable information 
about an individual student; and 
‘‘(iv) any other information the State 
requires all other public schools to report 
for purposes of section 1111(h)(1)(D). 
‘‘(3) REQUESTS FOR WAIVERS.—A request and 
justification for waivers of any Federal statutory or 
regulatory provisions that the State entity believes 
are necessary for the successful operation of the 
charter schools that will receive funds under the 
State entity’s program under this section or, in the 
case of a State entity defined in subsection (i)(4), a 
description of how the State entity will work with 
the State to request such necessary waivers, where 
applicable, and a description of any State or local 
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rules, generally applicable to public schools, that will 
be waived, or otherwise not apply to such schools. 
‘‘(f) SELECTION CRITERIA; PRIORITY.— 
‘‘(1) SELECTION
CRITERIA.—The Secretary 
shall award grants to State entities under this sec-
tion on the basis of the quality of the applications 
submitted under subsection (e), after taking into 
consideration— 
‘‘(A) the degree of flexibility afforded by 
the State’s public charter school law and how 
the State entity will work to maximize the flexi-
bility provided to charter schools under the law; 
‘‘(B) the ambitiousness of the State enti-
ty’s objectives for the quality charter school 
program carried out under this section; 
‘‘(C) the quality of the strategy for assess-
ing achievement of those objectives; 
‘‘(D) the likelihood that the eligible appli-
cants receiving subgrants under the program 
will meet those objectives and improve edu-
cational results for students; 
‘‘(E) the State entity’s plan to— 
‘‘(i) adequately monitor the eligible 
applicants receiving subgrants under the 
State entity’s program; 
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‘‘(ii) work with the authorized public 
chartering agencies involved to avoid dupli-
cation of work for the charter schools and 
authorized public chartering agencies; and 
‘‘(iii) provide adequate technical as-
sistance and support for— 
‘‘(I) the charter schools receiving 
funds under the State entity’s pro-
gram; and 
‘‘(II) quality authorizing efforts 
in the State; and 
‘‘(F) the State entity’s plan to solicit and 
consider input from parents and other members 
of the community on the implementation and 
operation of the charter schools in the State. 
‘‘(2) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to State en-
tities to the extent that they meet the following cri-
teria: 
‘‘(A) The State entity is located in a 
State— 
‘‘(i) that allows at least one entity 
that is not a local educational agency to be 
an authorized public chartering agency for 
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developers seeking to open a charter school 
in the State; or 
‘‘(ii) in which local educational agen-
cies are the only authorized public char-
tering agencies and that has an appeals 
process for the denial of an application for 
a charter school; 
‘‘(B) The State entity is located in a State 
that does not impose any limitation on the 
number or percentage of charter schools that 
may exist or the number or percentage of stu-
dents that may attend charter schools in the 
State. 
‘‘(C) The State entity is located in a State 
that ensures equitable financing, as compared 
to traditional public schools, for charter schools 
and students in a prompt manner. 
‘‘(D) The State entity is located in a State 
that uses best practices from charter schools to 
help improve struggling schools and local edu-
cational agencies. 
‘‘(E) The State entity partners with an or-
ganization that has a demonstrated record of 
success in developing management organiza-
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tions to support the development of charter 
schools in the State. 
‘‘(F) The State entity supports charter 
schools that support at-risk students through 
activities such as dropout prevention, dropout 
recovery, or comprehensive career counseling 
practices. 
‘‘(G) The State entity authorizes all char-
ter schools in the State to serve as school food 
authorities. 
‘‘(H) The State entity has taken steps to 
ensure that all authorizing public chartering 
agencies implement best practices for charter 
school authorizing. 
‘‘(I) The State entity is able to dem-
onstrate that its State provides charter schools 
one or more of the following: 
‘‘(i) Funding for facilities. 
‘‘(ii) Assistance with the acquisition of 
facilities. 
‘‘(iii) Access to public facilities. 
‘‘(iv) The right of first refusal to pur-
chase public school buildings. 
‘‘(v) Low or no cost leasing privileges. 
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‘‘(g) LOCAL USES OF FUNDS.—An eligible applicant 
receiving a subgrant under this section shall use such 
funds to carry out activities related to opening and pre-
paring to operate a new charter school, a replicated, high- 
quality charter school model, or an expanded, high-quality 
charter school, such as— 
‘‘(1) preparing teachers and school leaders, in-
cluding through professional development; 
‘‘(2) acquiring equipment, educational mate-
rials, and supplies; and 
‘‘(3) carrying out necessary renovations and 
minor facilities repairs (excluding construction). 
‘‘(h) REPORTING REQUIREMENTS.—Each State enti-
ty receiving a grant under this section shall submit to the 
Secretary, at the end of the third year of the 5-year grant 
period and at the end of such grant period, a report on— 
‘‘(1) the number of students served by each 
subgrant awarded under this section and, if applica-
ble, how many new students were served during each 
year of the subgrant period; 
‘‘(2) the progress the State entity made toward 
meeting the priorities described in subsection (f)(2), 
as applicable; 
‘‘(3) how the State entity met the objectives of 
the quality charter school program described in the 
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State entity’s application under subsection (e), in-
cluding how the State entity met the objective of 
sharing best and promising practices described in 
subsection (e)(1)(A)(x) in areas such as instruction, 
professional development, curricula development, and 
operations between charter schools and other public 
schools, and the extent to which, if known, such 
practices were adopted and implemented by such 
other public schools; 
‘‘(4) how the State entity complied with, and 
ensured that eligible applicants complied with, the 
assurances described in the State entity’s applica-
tion; 
‘‘(5) how the State entity worked with author-
ized public chartering agencies, including how the 
agencies worked with the management company or 
leadership of the schools that received subgrants 
under this section; 
‘‘(6) the number of subgrants awarded under 
this section to carry out each of the following: 
‘‘(A) the opening of new charter schools; 
‘‘(B) the opening of replicated, high-quality 
charter school models; and 
‘‘(C) the opening of expanded, high-quality 
charter schools; and 
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‘‘(7) how the State entity has worked with char-
ter schools receiving funds under the State entity’s 
program to foster community involvement in the 
planning for and opening of such schools. 
‘‘(i) STATE ENTITY DEFINED.—For purposes of this 
section, the term ‘State entity’ means— 
‘‘(1) a State educational agency; 
‘‘(2) a State charter school board; 
‘‘(3) a Governor of a State; or 
‘‘(4) a charter school support organization. 
‘‘SEC. 3104. FACILITIES FINANCING ASSISTANCE. 
‘‘(a) GRANTS TO ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—From the amount reserved 
under section 3102(b)(1), the Secretary shall not 
use less than 50 percent to award grants to eligible 
entities that have the highest-quality applications 
approved under subsection (d), after considering the 
diversity of such applications, to demonstrate inno-
vative methods of assisting charter schools to ad-
dress the cost of acquiring, constructing, and ren-
ovating facilities by enhancing the availability of 
loans or bond financing. 
‘‘(2) ELIGIBLE
ENTITY
DEFINED.—For pur-
poses of this section, the term ‘eligible entity’ 
means— 
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‘‘(A) a public entity, such as a State or 
local governmental entity; 
‘‘(B) a private nonprofit entity; or 
‘‘(C) a consortium of entities described in 
subparagraphs (A) and (B). 
‘‘(b) GRANTEE SELECTION.—The Secretary shall 
evaluate each application submitted under subsection (d), 
and shall determine whether the application is sufficient 
to merit approval. 
‘‘(c) GRANT CHARACTERISTICS.—Grants under sub-
section (a) shall be of a sufficient size, scope, and quality 
so as to ensure an effective demonstration of an innovative 
means of enhancing credit for the financing of charter 
school acquisition, construction, or renovation. 
‘‘(d) APPLICATIONS.— 
‘‘(1) IN GENERAL.—To receive a grant under 
subsection (a), an eligible entity shall submit to the 
Secretary an application in such form as the Sec-
retary may reasonably require. 
‘‘(2) CONTENTS.—An application submitted 
under paragraph (1) shall contain— 
‘‘(A) a statement identifying the activities 
proposed to be undertaken with funds received 
under subsection (a), including how the eligible 
entity will determine which charter schools will 
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receive assistance, and how much and what 
types of assistance charter schools will receive; 
‘‘(B) a description of the involvement of 
charter schools in the application’s development 
and the design of the proposed activities; 
‘‘(C) a description of the eligible entity’s 
expertise in capital market financing; 
‘‘(D) a description of how the proposed ac-
tivities will leverage the maximum amount of 
private-sector financing capital relative to the 
amount of public funding used and otherwise 
enhance credit available to charter schools, in-
cluding how the eligible entity will offer a com-
bination of rates and terms more favorable than 
the rates and terms that a charter school could 
receive without assistance from the eligible enti-
ty under subsection (a); 
‘‘(E) a description of how the eligible enti-
ty possesses sufficient expertise in education to 
evaluate the likelihood of success of a charter 
school program for which facilities financing is 
sought; and 
‘‘(F) in the case of an application sub-
mitted by a State governmental entity, a de-
scription of the actions that the entity has 
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taken, or will take, to ensure that charter 
schools within the State receive the funding the 
charter schools need to have adequate facilities. 
‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible 
entity receiving a grant under subsection (a) shall use the 
funds deposited in the reserve account established under 
subsection (f) to assist one or more charter schools to ac-
cess private sector capital to accomplish one or more of 
the following objectives: 
‘‘(1) The acquisition (by purchase, lease, dona-
tion, or otherwise) of an interest (including an inter-
est held by a third party for the benefit of a charter 
school) in improved or unimproved real property 
that is necessary to commence or continue the oper-
ation of a charter school. 
‘‘(2) The construction of new facilities, or the 
renovation, repair, or alteration of existing facilities, 
necessary to commence or continue the operation of 
a charter school. 
‘‘(3) The predevelopment costs required to as-
sess sites for purposes of paragraph (1) or (2) and 
which are necessary to commence or continue the 
operation of a charter school. 
‘‘(f) RESERVE ACCOUNT.— 
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‘‘(1) USE OF FUNDS.—To assist charter schools 
to accomplish the objectives described in subsection 
(e), an eligible entity receiving a grant under sub-
section (a) shall, in accordance with State and local 
law, directly or indirectly, alone or in collaboration 
with others, deposit the funds received under sub-
section (a) (other than funds used for administrative 
costs in accordance with subsection (g)) in a reserve 
account established and maintained by the eligible 
entity for this purpose. Amounts deposited in such 
account shall be used by the eligible entity for one 
or more of the following purposes: 
‘‘(A) Guaranteeing, insuring, and rein-
suring bonds, notes, evidences of debt, loans, 
and interests therein, the proceeds of which are 
used for an objective described in subsection 
(e). 
‘‘(B) Guaranteeing and insuring leases of 
personal and real property for an objective de-
scribed in subsection (e). 
‘‘(C) Facilitating financing by identifying 
potential lending sources, encouraging private 
lending, and other similar activities that di-
rectly promote lending to, or for the benefit of, 
charter schools. 
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‘‘(D) Facilitating the issuance of bonds by 
charter schools, or by other public entities for 
the benefit of charter schools, by providing 
technical, administrative, and other appropriate 
assistance (including the recruitment of bond 
counsel, underwriters, and potential investors 
and the consolidation of multiple charter school 
projects within a single bond issue). 
‘‘(2) INVESTMENT.—Funds received under sub-
section (a) and deposited in the reserve account es-
tablished under paragraph (1) shall be invested in 
obligations issued or guaranteed by the United 
States or a State, or in other similarly low-risk secu-
rities. 
‘‘(3) REINVESTMENT OF EARNINGS.—Any earn-
ings on funds received under subsection (a) shall be 
deposited in the reserve account established under 
paragraph (1) and used in accordance with such 
paragraph. 
‘‘(g) LIMITATION ON ADMINISTRATIVE COSTS.—An 
eligible entity may use not more than 2.5 percent of the 
funds received under subsection (a) for the administrative 
costs of carrying out its responsibilities under this section 
(excluding subsection (k)). 
‘‘(h) AUDITS AND REPORTS.— 
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‘‘(1) FINANCIAL
RECORD
MAINTENANCE
AND 
AUDIT.—The financial records of each eligible entity 
receiving a grant under subsection (a) shall be main-
tained in accordance with generally accepted ac-
counting principles and shall be subject to an annual 
audit by an independent public accountant. 
‘‘(2) REPORTS.— 
‘‘(A) GRANTEE ANNUAL REPORTS.—Each 
eligible entity receiving a grant under sub-
section (a) annually shall submit to the Sec-
retary a report of its operations and activities 
under this section (excluding subsection (k)). 
‘‘(B) CONTENTS.—Each annual report 
submitted under subparagraph (A) shall in-
clude— 
‘‘(i) a copy of the most recent finan-
cial statements, and any accompanying 
opinion on such statements, prepared by 
the independent public accountant review-
ing the financial records of the eligible en-
tity; 
‘‘(ii) a copy of any report made on an 
audit of the financial records of the eligible 
entity that was conducted under paragraph 
(1) during the reporting period; 
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‘‘(iii) an evaluation by the eligible en-
tity of the effectiveness of its use of the 
Federal funds provided under subsection 
(a) in leveraging private funds; 
‘‘(iv) a listing and description of the 
charter schools served during the reporting 
period, including the amount of funds used 
by each school, the type of project facili-
tated by the grant, and the type of assist-
ance provided to the charter schools; 
‘‘(v) a description of the activities car-
ried out by the eligible entity to assist 
charter schools in meeting the objectives 
set forth in subsection (e); and 
‘‘(vi) a description of the characteris-
tics of lenders and other financial institu-
tions participating in the activities under-
taken by the eligible entity under this sec-
tion (excluding subsection (k)) during the 
reporting period. 
‘‘(C) SECRETARIAL
REPORT.—The Sec-
retary shall review the reports submitted under 
subparagraph (A) and shall provide a com-
prehensive annual report to Congress on the ac-
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tivities conducted under this section (excluding 
subsection (k)). 
‘‘(i) NO FULL FAITH AND CREDIT FOR GRANTEE 
OBLIGATION.—No financial obligation of an eligible entity 
entered into pursuant to this section (such as an obliga-
tion under a guarantee, bond, note, evidence of debt, or 
loan) shall be an obligation of, or guaranteed in any re-
spect by, the United States. The full faith and credit of 
the United States is not pledged to the payment of funds 
which may be required to be paid under any obligation 
made by an eligible entity pursuant to any provision of 
this section. 
‘‘(j) RECOVERY OF FUNDS.— 
‘‘(1) IN GENERAL.—The Secretary, in accord-
ance with chapter 37 of title 31, United States 
Code, shall collect— 
‘‘(A) all of the funds in a reserve account 
established by an eligible entity under sub-
section (f)(1) if the Secretary determines, not 
earlier than 2 years after the date on which the 
eligible entity first received funds under sub-
section (a), that the eligible entity has failed to 
make substantial progress in carrying out the 
purposes described in subsection (f)(1); or 
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‘‘(B) all or a portion of the funds in a re-
serve account established by an eligible entity 
under subsection (f)(1) if the Secretary deter-
mines that the eligible entity has permanently 
ceased to use all or a portion of the funds in 
such account to accomplish any purpose de-
scribed in subsection (f)(1). 
‘‘(2) EXERCISE OF AUTHORITY.—The Secretary 
shall not exercise the authority provided in para-
graph (1) to collect from any eligible entity any 
funds that are being properly used to achieve one or 
more of the purposes described in subsection (f)(1). 
‘‘(3) PROCEDURES.—The provisions of sections 
451, 452, and 458 of the General Education Provi-
sions Act (20 U.S.C. 124, 1234a, 1234g) shall apply 
to the recovery of funds under paragraph (1). 
‘‘(4) CONSTRUCTION.—This subsection shall 
not be construed to impair or affect the authority of 
the Secretary to recover funds under part D of the 
General Education Provisions Act (20 U.S.C. 1234 
et seq.). 
‘‘(k) PER-PUPIL FACILITIES AID PROGRAM.— 
‘‘(1) DEFINITION OF PER-PUPIL FACILITIES AID 
PROGRAM.—In this subsection, the term ‘per-pupil 
facilities aid program’ means a program in which a 
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State makes payments, on a per-pupil basis, to char-
ter schools to provide the schools with financing— 
‘‘(A) that is dedicated solely for funding 
charter school facilities; or 
‘‘(B) a portion of which is dedicated for 
funding charter school facilities. 
‘‘(2) GRANTS.— 
‘‘(A) IN
GENERAL.—From the amount 
under section 3102(b)(1) remaining after the 
Secretary makes grants under subsection (a), 
the Secretary shall make grants, on a competi-
tive basis, to States to pay for the Federal 
share of the cost of establishing or enhancing, 
and administering per-pupil facilities aid pro-
grams. 
‘‘(B) PERIOD.—The Secretary shall award 
grants under this subsection for periods of not 
more than 5 years. 
‘‘(C) 
FEDERAL
SHARE.—The 
Federal 
share of the cost described in subparagraph (A) 
for a per-pupil facilities aid program shall be 
not more than— 
‘‘(i) 90 percent of the cost, for the 
first fiscal year for which the program re-
ceives assistance under this subsection; 
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‘‘(ii) 80 percent in the second such 
year; 
‘‘(iii) 60 percent in the third such 
year; 
‘‘(iv) 40 percent in the fourth such 
year; and 
‘‘(v) 20 percent in the fifth such year. 
‘‘(D) STATE SHARE.—A State receiving a 
grant under this subsection may partner with 1 
or more organizations to provide up to 50 per-
cent of the State share of the cost of estab-
lishing or enhancing, and administering the per- 
pupil facilities aid program. 
‘‘(E) MULTIPLE
GRANTS.—A State may 
receive more than 1 grant under this sub-
section, so long as the amount of such funds 
provided to charter schools increases with each 
successive grant. 
‘‘(3) USE OF FUNDS.— 
‘‘(A) IN GENERAL.—A State that receives 
a grant under this subsection shall use the 
funds made available through the grant to es-
tablish or enhance, and administer, a per-pupil 
facilities aid program for charter schools in the 
State of the applicant. 
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‘‘(B) EVALUATIONS; TECHNICAL
ASSIST-
ANCE; 
DISSEMINATION.—From the amount 
made available to a State through a grant 
under this subsection for a fiscal year, the State 
may reserve not more than 5 percent to carry 
out evaluations, to provide technical assistance, 
and to disseminate information. 
‘‘(C) SUPPLEMENT, 
NOT
SUPPLANT.— 
Funds made available under this subsection 
shall be used to supplement, and not supplant, 
State and local public funds expended to pro-
vide per pupil facilities aid programs, oper-
ations financing programs, or other programs, 
for charter schools. 
‘‘(4) REQUIREMENTS.— 
‘‘(A) 
VOLUNTARY
PARTICIPATION.—No 
State may be required to participate in a pro-
gram carried out under this subsection. 
‘‘(B) STATE LAW.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), to be eligible to receive 
a grant under this subsection, a State shall 
establish or enhance, and administer, a 
per-pupil facilities aid program for charter 
schools in the State, that— 
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‘‘(I) is specified in State law; and 
‘‘(II) provides annual financing, 
on a per-pupil basis, for charter 
school facilities. 
‘‘(ii) 
SPECIAL
RULE.—Notwith-
standing clause (i), a State that is required 
under State law to provide its charter 
schools with access to adequate facility 
space, but which does not have a per-pupil 
facilities aid program for charter schools 
specified in State law, may be eligible to 
receive a grant under this subsection if the 
State agrees to use the funds to develop a 
per-pupil facilities aid program consistent 
with the requirements of this subsection. 
‘‘(5) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, a State shall submit an 
application to the Secretary at such time, in such 
manner, and containing such information as the Sec-
retary may require. 
‘‘SEC. 3105. NATIONAL ACTIVITIES. 
‘‘(a) IN GENERAL.—Of the amount reserved under 
section 3102(b)(2), the Secretary shall— 
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‘‘(1) use not less than 75 percent of such 
amount to award grants in accordance with sub-
section (b); and 
‘‘(2) use not more than 25 percent of such 
amount to— 
‘‘(A) provide technical assistance to State 
entities in awarding subgrants under section 
3103, and eligible entities and States receiving 
grants under section 3104; 
‘‘(B) disseminate best practices; and 
‘‘(C) evaluate the impact of the charter 
school program, including the impact on stu-
dent achievement, carried out under this sub-
part. 
‘‘(b) GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
grants, on a competitive basis, to eligible applicants 
for the purpose of carrying out the activities de-
scribed in section 3102(a)(1), subparagraphs (A) 
through (C) of section 3103(a)(1), and section 
3103(g). 
‘‘(2) TERMS AND CONDITIONS.—Except as oth-
erwise provided in this subsection, grants awarded 
under this subsection shall have the same terms and 
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conditions as grants awarded to State entities under 
section 3103. 
‘‘(3) 
CHARTER
MANAGEMENT
ORGANIZA-
TIONS.—The Secretary shall— 
‘‘(A) of the amount described in subsection 
(a)(1), use not less than 75 percent to make 
grants, on a competitive basis, to eligible appli-
cants described in paragraph (4)(B); and 
‘‘(B) notwithstanding paragraphs (1)(A) 
and (2) of section 3103(f)— 
‘‘(i) award grants to eligible appli-
cants on the basis of the quality of the ap-
plications submitted under this subsection; 
and 
‘‘(ii) in awarding grants to eligible ap-
plicants described in paragraph (4)(B) of 
this subsection, take into consideration 
whether such an eligible applicant— 
‘‘(I) demonstrates a high propor-
tion of high-quality charter schools 
within the network of the eligible ap-
plicant; 
‘‘(II) demonstrates success in 
serving students who are educationally 
disadvantaged; 
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‘‘(III) does not have a significant 
proportion of charter schools that 
have been closed, had their charter re-
voked for compliance issues, or had 
their affiliation with such eligible ap-
plicant revoked; 
‘‘(IV) has sufficient procedures in 
effect to ensure timely closure of low- 
performing or financially mismanaged 
charter schools and clear plans and 
procedures in effect for the students 
in such schools to attend other high- 
quality schools; and 
‘‘(V) demonstrates success in 
working with schools identified for im-
provement by the State. 
‘‘(4) ELIGIBLE APPLICANT DEFINED.—For pur-
poses of this subsection, the term ‘eligible applicant’ 
means an eligible applicant (as defined in section 
3110) that— 
‘‘(A) desires to open a charter school in— 
‘‘(i) a State that did not apply for a 
grant under section 3103; or 
‘‘(ii) a State that did not receive a 
grant under section 3103; or 
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‘‘(B) is a charter management organiza-
tion. 
‘‘(c) CONTRACTS AND GRANTS.—The Secretary may 
carry out any of the activities described in this section di-
rectly or through grants, contracts, or cooperative agree-
ments. 
‘‘SEC. 3106. FEDERAL FORMULA ALLOCATION DURING 
FIRST YEAR AND FOR SUCCESSIVE ENROLL-
MENT EXPANSIONS. 
‘‘(a) IN GENERAL.—For purposes of the allocation 
to schools by the States or their agencies of funds under 
part A of title I, and any other Federal funds which the 
Secretary allocates to States on a formula basis, the Sec-
retary and each State educational agency shall take such 
measures as are necessary to ensure that every charter 
school receives the Federal funding for which the charter 
school is eligible not later than 5 months after the charter 
school first opens, notwithstanding the fact that the iden-
tity and characteristics of the students enrolling in that 
charter school are not fully and completely determined 
until that charter school actually opens. The measures 
similarly shall ensure that every charter school expanding 
its enrollment in any subsequent year of operation receives 
the Federal funding for which the charter school is eligible 
not later than 5 months after such expansion. 
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‘‘(b) ADJUSTMENT AND LATE OPENINGS.— 
‘‘(1) IN GENERAL.—The measures described in 
subsection (a) shall include provision for appropriate 
adjustments, through recovery of funds or reduction 
of payments for the succeeding year, in cases where 
payments made to a charter school on the basis of 
estimated or projected enrollment data exceed the 
amounts that the school is eligible to receive on the 
basis of actual or final enrollment data. 
‘‘(2) RULE.—For charter schools that first 
open after November 1 of any academic year, the 
State, in accordance with guidance provided by the 
Secretary and applicable Federal statutes and regu-
lations, shall ensure that such charter schools that 
are eligible for the funds described in subsection (a) 
for such academic year have a full and fair oppor-
tunity to receive those funds during the charter 
schools’ first year of operation. 
‘‘SEC. 3107. SOLICITATION OF INPUT FROM CHARTER 
SCHOOL OPERATORS. 
‘‘To the extent practicable, the Secretary shall ensure 
that administrators, teachers, and other individuals di-
rectly involved in the operation of charter schools are con-
sulted in the development of any rules or regulations re-
quired to implement this subpart, as well as in the devel-
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opment of any rules or regulations relevant to charter 
schools that are required to implement part A of title I, 
the Individuals with Disabilities Education Act, or any 
other program administered by the Secretary that provides 
education funds to charter schools or regulates the activi-
ties of charter schools. 
‘‘SEC. 3108. RECORDS TRANSFER. 
‘‘State educational agencies and local educational 
agencies, as quickly as possible and to the extent prac-
ticable, shall ensure that a student’s records and, if appli-
cable, a student’s individualized education program as de-
fined in section 602(14) of the Individuals with Disabil-
ities Education Act, are transferred to a charter school 
upon the transfer of the student to the charter school, and 
to another public school upon the transfer of the student 
from a charter school to another public school, in accord-
ance with applicable State law. 
‘‘SEC. 3109. PAPERWORK REDUCTION. 
‘‘To the extent practicable, the Secretary and each 
authorized public chartering agency shall ensure that im-
plementation of this subpart results in a minimum of pa-
perwork for any eligible applicant or charter school. 
‘‘SEC. 3110. DEFINITIONS. 
‘‘In this subpart: 
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‘‘(1) CHARTER MANAGEMENT ORGANIZATION.— 
The term ‘charter management organization’ means 
a nonprofit organization that manages a network of 
charter schools linked by centralized support, oper-
ations, and oversight. 
‘‘(2) CHARTER
SCHOOL
SUPPORT
ORGANIZA-
TION.—The term ‘charter school support organiza-
tion’ means a nonprofit, nongovernmental entity that 
is not an authorized public chartering agency, which 
provides on a statewide basis— 
‘‘(A) assistance to developers during the 
planning, program design, and initial implemen-
tation of a charter school; and 
‘‘(B) technical assistance to charter schools 
to operate such schools. 
‘‘(3) DEVELOPER.—The term ‘developer’ means 
an individual or group of individuals (including a 
public or private nonprofit organization), which may 
include teachers, administrators and other school 
staff, parents, or other members of the local commu-
nity in which a charter school project will be carried 
out. 
‘‘(4) ELIGIBLE APPLICANT.—The term ‘eligible 
applicant’ means a developer that has— 
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‘‘(A) applied to an authorized public char-
tering authority to operate a charter school; 
and 
‘‘(B) provided adequate and timely notice 
to that authority. 
‘‘(5) AUTHORIZED PUBLIC CHARTERING AGEN-
CY.—The term ‘authorized public chartering agency’ 
means a State educational agency, local educational 
agency, or other public entity that has the authority 
pursuant to State law and approved by the Sec-
retary to authorize or approve a charter school. 
‘‘(6) 
EXPANDED, 
HIGH-QUALITY
CHARTER 
SCHOOL.—The term ‘expanded, high-quality charter 
school’ means a high-quality charter school that has 
either significantly increased its enrollment or added 
one or more grades to its school. 
‘‘(7) HIGH-QUALITY
CHARTER
SCHOOL.—The 
term ‘high-quality charter school’ means a charter 
school that— 
‘‘(A) shows evidence of strong academic re-
sults, which may include strong academic 
growth as determined by a State; 
‘‘(B) has no significant issues in the areas 
of student safety, operational and financial 
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management, or statutory or regulatory compli-
ance; 
‘‘(C) has demonstrated success in signifi-
cantly increasing student academic achieve-
ment, including graduation rates where applica-
ble, consistent with the requirements under title 
I, for all students served by the charter school; 
and 
‘‘(D) has demonstrated success in increas-
ing student academic achievement, including 
graduation rates where applicable, for the 
groups 
of 
students 
described 
in 
section 
1111(b)(3)(B)(ii)(II), except that such dem-
onstration is not required in a case in which the 
number of students in a group is insufficient to 
yield statistically reliable information or the re-
sults would reveal personally identifiable infor-
mation about an individual student. 
‘‘(8) REPLICATED, 
HIGH-QUALITY
CHARTER 
SCHOOL MODEL.—The term ‘replicated, high-quality 
charter school model’ means a high-quality charter 
school that has opened a new campus under an ex-
isting charter or an additional charter if required or 
permitted by State law. 
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‘‘Subpart 2—Magnet School Assistance 
‘‘SEC. 3121. PURPOSE. 
‘‘The purpose of this subpart is to assist in the deseg-
regation of schools served by local educational agencies by 
providing financial assistance to eligible local educational 
agencies for— 
‘‘(1) the elimination, reduction, or prevention of 
minority group isolation in elementary schools and 
secondary schools with substantial proportions of mi-
nority students, which shall include assisting in the 
efforts of the United States to achieve voluntary de-
segregation in public schools; 
‘‘(2) the development and implementation of 
magnet school programs that will assist local edu-
cational agencies in achieving systemic reforms and 
providing all students the opportunity to meet State 
academic standards; 
‘‘(3) the development and design of innovative 
educational methods and practices that promote di-
versity and increase choices in public elementary 
schools and public secondary schools and public edu-
cational programs; 
‘‘(4) courses of instruction within magnet 
schools that will substantially strengthen the knowl-
edge of academic subjects and the attainment of tan-
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gible and marketable career, technical, and profes-
sional skills of students attending such schools; 
‘‘(5) improving the ability of local educational 
agencies, including through professional develop-
ment, to continue operating magnet schools at a 
high performance level after Federal funding for the 
magnet schools is terminated; and 
‘‘(6) ensuring that students enrolled in the 
magnet school programs have equitable access to a 
quality education that will enable the students to 
succeed academically and continue with postsec-
ondary education or employment. 
‘‘SEC. 3122. DEFINITION. 
‘‘For the purpose of this subpart, the term ‘magnet 
school’ means a public elementary school, public secondary 
school, public elementary education center, or public sec-
ondary education center that offers a special curriculum 
capable of attracting substantial numbers of students of 
different racial backgrounds. 
‘‘SEC. 3123. PROGRAM AUTHORIZED. 
‘‘From the amount appropriated under section 
3(c)(1)(B), the Secretary, in accordance with this subpart, 
is authorized to award grants to eligible local educational 
agencies, and consortia of such agencies where appro-
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priate, to carry out the purpose of this subpart for magnet 
schools that are— 
‘‘(1) part of an approved desegregation plan; 
and 
‘‘(2) designed to bring students from different 
social, economic, ethnic, and racial backgrounds to-
gether. 
‘‘SEC. 3124. ELIGIBILITY. 
‘‘A local educational agency, or consortium of such 
agencies where appropriate, is eligible to receive a grant 
under this subpart to carry out the purpose of this subpart 
if such agency or consortium— 
‘‘(1) is implementing a plan undertaken pursu-
ant to a final order issued by a court of the United 
States, or a court of any State, or any other State 
agency or official of competent jurisdiction, that re-
quires the desegregation of minority-group-seg-
regated children or faculty in the elementary schools 
and secondary schools of such agency; or 
‘‘(2) without having been required to do so, has 
adopted and is implementing, or will, if a grant is 
awarded to such local educational agency, or consor-
tium of such agencies, under this subpart, adopt and 
implement a plan that has been approved by the 
Secretary as adequate under title VI of the Civil 
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Rights Act of 1964 for the desegregation of minor-
ity-group-segregated children or faculty in such 
schools. 
‘‘SEC. 3125. APPLICATIONS AND REQUIREMENTS. 
‘‘(a) APPLICATIONS.—An eligible local educational 
agency, or consortium of such agencies, desiring to receive 
a grant under this subpart shall submit an application to 
the Secretary at such time and in such manner as the 
Secretary may reasonably require. 
‘‘(b) INFORMATION AND ASSURANCES.—Each appli-
cation submitted under subsection (a) shall include— 
‘‘(1) a description of— 
‘‘(A) how a grant awarded under this sub-
part will be used to promote desegregation, in-
cluding how the proposed magnet school pro-
grams will increase interaction among students 
of different social, economic, ethnic, and racial 
backgrounds; 
‘‘(B) the manner and extent to which the 
magnet school program will increase student 
academic achievement in the instructional area 
or areas offered by the school; 
‘‘(C) how the applicant will continue the 
magnet school program after assistance under 
this subpart is no longer available, and, if appli-
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cable, an explanation of why magnet schools es-
tablished or supported by the applicant with 
grant funds under this subpart cannot be con-
tinued without the use of grant funds under 
this subpart; 
‘‘(D) how grant funds under this subpart 
will be used— 
‘‘(i) to improve student academic 
achievement for all students attending the 
magnet school programs; and 
‘‘(ii) to implement services and activi-
ties that are consistent with other pro-
grams under this Act, and other Acts, as 
appropriate; and 
‘‘(E) the criteria to be used in selecting 
students to attend the proposed magnet school 
program; and 
‘‘(2) assurances that the applicant will— 
‘‘(A) use grant funds under this subpart 
for the purposes specified in section 3121; 
‘‘(B) employ effective teachers in the 
courses of instruction assisted under this sub-
part; 
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‘‘(C) not engage in discrimination based on 
race, religion, color, national origin, sex, or dis-
ability in— 
‘‘(i) the hiring, promotion, or assign-
ment of employees of the applicant or 
other personnel for whom the applicant has 
any administrative responsibility; 
‘‘(ii) the assignment of students to 
schools, or to courses of instruction within 
the schools, of such applicant, except to 
carry out the approved plan; and 
‘‘(iii) designing or operating extra-
curricular activities for students; 
‘‘(D) carry out a quality education pro-
gram that will encourage greater parental deci-
sionmaking and involvement; and 
‘‘(E) give students residing in the local at-
tendance area of the proposed magnet school 
program equitable consideration for placement 
in the program, consistent with desegregation 
guidelines and the capacity of the applicant to 
accommodate the students. 
‘‘(c) SPECIAL RULE.—No grant shall be awarded 
under this subpart unless the Assistant Secretary of Edu-
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cation for Civil Rights determines that the assurances de-
scribed in subsection (b)(2)(C) will be met. 
‘‘SEC. 3126. PRIORITY. 
‘‘In awarding grants under this subpart, the Sec-
retary shall give priority to applicants that— 
‘‘(1) demonstrate the greatest need for assist-
ance, based on the expense or difficulty of effectively 
carrying out approved desegregation plans and the 
magnet school program for which the grant is 
sought; 
‘‘(2) propose to carry out new magnet school 
programs, or significantly revise existing magnet 
school programs; 
‘‘(3) propose to select students to attend mag-
net school programs by methods such as lottery, 
rather than through academic examination; and 
‘‘(4) propose to serve the entire student popu-
lation of a school. 
‘‘SEC. 3127. USE OF FUNDS. 
‘‘(a) IN GENERAL.—Grant funds made available 
under this subpart may be used by an eligible local edu-
cational agency, or consortium of such agencies— 
‘‘(1) for planning and promotional activities di-
rectly related to the development, expansion, con-
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tinuation, or enhancement of academic programs 
and services offered at magnet schools; 
‘‘(2) for the acquisition of books, materials, and 
equipment, including computers and the mainte-
nance and operation of materials, equipment, and 
computers, necessary to conduct programs in mag-
net schools; 
‘‘(3) for the compensation, or subsidization of 
the compensation, of elementary school and sec-
ondary school teachers, and instructional staff where 
applicable, who are necessary to conduct programs 
in magnet schools; 
‘‘(4) with respect to a magnet school program 
offered to less than the entire student population of 
a school, for instructional activities that— 
‘‘(A) are designed to make available the 
special curriculum that is offered by the magnet 
school program to students who are enrolled in 
the school but who are not enrolled in the mag-
net school program; and 
‘‘(B) further the purpose of this subpart; 
‘‘(5) for activities, which may include profes-
sional development, that will build the recipient’s ca-
pacity to operate magnet school programs once the 
grant period has ended; 
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‘‘(6) to enable the local educational agency, or 
consortium of such agencies, to have more flexibility 
in the administration of a magnet school program in 
order to serve students attending a school who are 
not enrolled in a magnet school program; and 
‘‘(7) to enable the local educational agency, or 
consortium of such agencies, to have flexibility in de-
signing magnet schools for students in all grades. 
‘‘(b) SPECIAL RULE.—Grant funds under this sub-
part may be used for activities described in paragraphs 
(2) and (3) of subsection (a) only if the activities are di-
rectly related to improving student academic achievement 
based on the State’s academic standards or directly re-
lated to improving student reading skills or knowledge of 
mathematics, science, history, geography, English, foreign 
languages, art, or music, or to improving career, technical, 
and professional skills. 
‘‘SEC. 3128. LIMITATIONS. 
‘‘(a) DURATION OF AWARDS.—A grant under this 
subpart shall be awarded for a period that shall not exceed 
3 fiscal years. 
‘‘(b) LIMITATION ON PLANNING FUNDS.—A local 
educational agency, or consortium of such agencies, may 
expend for planning (professional development shall not 
be considered to be planning for purposes of this sub-
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section) not more than 50 percent of the grant funds re-
ceived under this subpart for the first year of the program 
and not more than 15 percent of such funds for each of 
the second and third such years. 
‘‘(c) AMOUNT.—No local educational agency, or con-
sortium of such agencies, awarded a grant under this sub-
part shall receive more than $4,000,000 under this sub-
part for any 1 fiscal year. 
‘‘(d) TIMING.—To the extent practicable, the Sec-
retary shall award grants for any fiscal year under this 
subpart not later than July 1 of the applicable fiscal year. 
‘‘SEC. 3129. EVALUATIONS. 
‘‘(a) RESERVATION.—The Secretary may reserve not 
more than 2 percent of the funds appropriated under sec-
tion 3(c)(1)(B) for any fiscal year to carry out evaluations, 
provide technical assistance, and carry out dissemination 
projects with respect to magnet school programs assisted 
under this subpart. 
‘‘(b) CONTENTS.—Each evaluation described in sub-
section (a), at a minimum, shall address— 
‘‘(1) how and the extent to which magnet school 
programs lead to educational quality and academic 
improvement; 
‘‘(2) the extent to which magnet school pro-
grams enhance student access to a quality education; 
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‘‘(3) the extent to which magnet school pro-
grams lead to the elimination, reduction, or preven-
tion of minority group isolation in elementary 
schools and secondary schools with substantial pro-
portions of minority students; and 
‘‘(4) the extent to which magnet school pro-
grams differ from other school programs in terms of 
the organizational characteristics and resource allo-
cations of such magnet school programs. 
‘‘(c) DISSEMINATION.—The Secretary shall collect 
and disseminate to the general public information on suc-
cessful magnet school programs. 
‘‘SEC. 3130. RESERVATION. 
‘‘In any fiscal year for which the amount appro-
priated under section 3(c)(1)(B) exceeds $75,000,000, the 
Secretary shall give priority in using such amounts in ex-
cess of $75,000,000 to awarding grants to local edu-
cational agencies or consortia of such agencies that did 
not receive a grant under this subpart in the preceding 
fiscal year. 
‘‘Subpart 3—Family Engagement in Education 
Programs 
‘‘SEC. 3141. PURPOSES. 
‘‘The purposes of this subpart are the following: 
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‘‘(1) To provide financial support to organiza-
tions to provide technical assistance and training to 
State and local educational agencies in the imple-
mentation and enhancement of systemic and effec-
tive family engagement policies, programs, and ac-
tivities that lead to improvements in student devel-
opment and academic achievement. 
‘‘(2) To assist State educational agencies, local 
educational agencies, community-based organiza-
tions, schools, and educators in strengthening part-
nerships among parents, teachers, school leaders, ad-
ministrators, and other school personnel in meeting 
the educational needs of children and fostering 
greater parental engagement. 
‘‘(3) To support State educational agencies, 
local educational agencies, schools, educators, and 
parents in developing and strengthening the relation-
ship between parents and their children’s school in 
order to further the developmental progress of chil-
dren. 
‘‘(4) To coordinate activities funded under this 
subpart with parent involvement initiatives funded 
under section 1118 and other provisions of this Act. 
‘‘(5) To assist the Secretary, State educational 
agencies, and local educational agencies in the co-
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ordination and integration of Federal, State, and 
local services and programs to engage families in 
education. 
‘‘SEC. 3142. GRANTS AUTHORIZED. 
‘‘(a) STATEWIDE FAMILY ENGAGEMENT CENTERS.— 
From the amount appropriated under section 3(c)(1)(C), 
the Secretary is authorized to award grants for each fiscal 
year to statewide organizations (or consortia of such orga-
nizations), to establish Statewide Family Engagement 
Centers that provide comprehensive training and technical 
assistance to State educational agencies, local educational 
agencies, schools identified by State educational agencies 
and local educational agencies, organizations that support 
family-school partnerships, and other organizations that 
carry out, or carry out directly, parent education and fam-
ily engagement in education programs. 
‘‘(b) MINIMUM AWARD.—In awarding grants under 
this section, the Secretary shall, to the extent practicable, 
ensure that a grant is awarded for a Statewide Family 
Engagement Center in an amount not less than $500,000. 
‘‘SEC. 3143. APPLICATIONS. 
‘‘(a) SUBMISSIONS.—Each statewide organization, or 
a consortium of such organizations, that desires a grant 
under this subpart shall submit an application to the Sec-
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retary at such time, in such manner, and including the 
information described in subsection (b). 
‘‘(b) CONTENTS.—Each application submitted under 
subsection (a) shall include, at a minimum, the following: 
‘‘(1) A description of the applicant’s approach 
to family engagement in education. 
‘‘(2) A description of the support that the 
Statewide Family Engagement Center that will be 
operated by the applicant will have from the State 
educational agency and any partner organization 
outlining the commitment to work with the center. 
‘‘(3) A description of the applicant’s plan for 
building a statewide infrastructure for family en-
gagement in education, that includes— 
‘‘(A) management and governance; 
‘‘(B) statewide leadership; or 
‘‘(C) systemic services for family engage-
ment in education. 
‘‘(4) A description of the applicant’s dem-
onstrated experience in providing training, informa-
tion, and support to State educational agencies, local 
educational agencies, schools, educators, parents, 
and organizations on family engagement in edu-
cation policies and practices that are effective for 
parents (including low-income parents) and families, 
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English learners, minorities, parents of students 
with disabilities, parents of homeless students, foster 
parents and students, and parents of migratory stu-
dents, including evaluation results, reporting, or 
other data exhibiting such demonstrated experience. 
‘‘(5) A description of the steps the applicant 
will take to target services to low-income students 
and parents. 
‘‘(6) An assurance that the applicant will— 
‘‘(A) establish a special advisory com-
mittee, the membership of which includes— 
‘‘(i) parents, who shall constitute a 
majority of the members of the special ad-
visory committee; 
‘‘(ii) representatives of education pro-
fessionals with expertise in improving serv-
ices for disadvantaged children; 
‘‘(iii) representatives of local elemen-
tary schools and secondary schools, includ-
ing students; 
‘‘(iv) representatives of the business 
community; and 
‘‘(v) representatives of State edu-
cational agencies and local educational 
agencies; 
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‘‘(B) use not less than 65 percent of the 
funds received under this subpart in each fiscal 
year to serve local educational agencies, schools, 
and community-based organizations that serve 
high concentrations of disadvantaged students, 
including English learners, minorities, parents 
of students with disabilities, parents of home-
less students, foster parents and students, and 
parents of migratory students; 
‘‘(C) operate a Statewide Family Engage-
ment Center of sufficient size, scope, and qual-
ity to ensure that the Center is adequate to 
serve the State educational agency, local edu-
cational agencies, and community-based organi-
zations; 
‘‘(D) ensure that the Center will retain 
staff with the requisite training and experience 
to serve parents in the State; 
‘‘(E) serve urban, suburban, and rural 
local educational agencies and schools; 
‘‘(F) work with— 
‘‘(i) other Statewide Family Engage-
ment Centers assisted under this subpart; 
and 
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‘‘(ii) parent training and information 
centers and community parent resource 
centers assisted under sections 671 and 
672 of the Individuals with Disabilities 
Education Act; 
‘‘(G) use not less than 30 percent of the 
funds received under this subpart for each fiscal 
year to establish or expand technical assistance 
for evidence-based parent education programs; 
‘‘(H) provide assistance to State edu-
cational agencies and local educational agencies 
and community-based organizations that sup-
port family members in supporting student aca-
demic achievement; 
‘‘(I) work with State educational agencies, 
local educational agencies, schools, educators, 
and parents to determine parental needs and 
the best means for delivery of services to ad-
dress such needs; 
‘‘(J) conduct sufficient outreach to assist 
parents, including parents who the applicant 
may have a difficult time engaging with a 
school or local educational agency; and 
‘‘(K) conduct outreach to low-income stu-
dents and parents, including low-income stu-
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dents and parents who are not proficient in 
English. 
‘‘(7) An assurance that the applicant will con-
duct training programs in the community to improve 
adult literacy, including financial literacy. 
‘‘SEC. 3144. USES OF FUNDS. 
‘‘(a) IN GENERAL.—Grantees shall use grant funds 
received under this subpart, based on the needs deter-
mined under section 3143(b)(6)(I), to provide training 
and technical assistance to State educational agencies, 
local educational agencies, and organizations that support 
family-school partnerships, and activities, services, and 
training for local educational agencies, school leaders, edu-
cators, and parents— 
‘‘(1) to assist parents in participating effectively 
in their children’s education and to help their chil-
dren meet State standards, such as assisting par-
ents— 
‘‘(A) to engage in activities that will im-
prove student academic achievement, including 
understanding how they can support learning in 
the classroom with activities at home and in 
afterschool and extracurricular programs; 
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‘‘(B) to communicate effectively with their 
children, teachers, school leaders, counselors, 
administrators, and other school personnel; 
‘‘(C) to become active participants in the 
development, implementation, and review of 
school-parent compacts, family engagement in 
education policies, and school planning and im-
provement; 
‘‘(D) to participate in the design and pro-
vision of assistance to students who are not 
making academic progress; 
‘‘(E) to participate in State and local deci-
sionmaking; 
‘‘(F) to train other parents; and 
‘‘(G) to help the parents learn and use 
technology (including education about the 
harms of copyright piracy), applied in their 
children’s education; 
‘‘(2) to develop and implement, in partnership 
with the State educational agency, statewide family 
engagement in education policy and systemic initia-
tives that will provide for a continuum of services to 
remove barriers for family engagement in education 
and support school reform efforts; and 
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‘‘(3) to develop and implement parental involve-
ment policies under this Act. 
‘‘(b) MATCHING FUNDS FOR GRANT RENEWAL.— 
For each fiscal year after the first fiscal year for which 
an organization or consortium receives assistance under 
this section, the organization or consortium shall dem-
onstrate in the application that a portion of the services 
provided by the organization or consortium is supported 
through non-Federal contributions, which may be in cash 
or in-kind. 
‘‘(c) TECHNICAL ASSISTANCE.—The Secretary shall 
reserve not more than 2 percent of the funds appropriated 
under section 3(c)(1)(C) to carry out this subpart to pro-
vide technical assistance, by competitive grant or contract, 
for the establishment, development, and coordination of 
Statewide Family Engagement Centers. 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prohibit a Statewide Family En-
gagement Center from— 
‘‘(1) having its employees or agents meet with 
a parent at a site that is not on school grounds; or 
‘‘(2) working with another agency that serves 
children. 
‘‘(e) PARENTAL
RIGHTS.—Notwithstanding any 
other provision of this section— 
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‘‘(1) no person (including a parent who edu-
cates a child at home, a public school parent, or a 
private school parent) shall be required to partici-
pate in any program of parent education or develop-
mental screening under this section; and 
‘‘(2) no program or center assisted under this 
section shall take any action that infringes in any 
manner on the right of a parent to direct the edu-
cation of their children. 
‘‘SEC. 3145. FAMILY ENGAGEMENT IN INDIAN SCHOOLS. 
‘‘The Secretary of the Interior, in consultation with 
the Secretary of Education, shall establish, or enter into 
contracts and cooperative agreements with local Indian 
nonprofit parent organizations to establish and operate 
Family Engagement Centers. 
‘‘PART B—LOCAL ACADEMIC FLEXIBLE GRANT 
‘‘SEC. 3201. PURPOSE. 
‘‘The purpose of this part is to— 
‘‘(1) provide local educational agencies with the 
opportunity to access funds to support the initiatives 
important to their schools and students to improve 
academic achievement and student engagement, in-
cluding protecting student safety; and 
‘‘(2) provide nonprofit and for-profit entities 
the opportunity to work with students to improve 
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academic achievement and student engagement, in-
cluding student safety. 
‘‘SEC. 3202. ALLOTMENTS TO STATES. 
‘‘(a) RESERVATIONS.—From the funds appropriated 
under section 3(c)(2) for any fiscal year, the Secretary 
shall reserve— 
‘‘(1) not more than one-half of 1 percent for 
national activities to provide technical assistance to 
eligible entities in carrying out programs under this 
part; and 
‘‘(2) not more than one-half of 1 percent for 
payments to the outlying areas and the Bureau of 
Indian Education, to be allotted in accordance with 
their respective needs for assistance under this part, 
as determined by the Secretary, to enable the out-
lying areas and the Bureau to carry out the purpose 
of this part. 
‘‘(b) STATE ALLOTMENTS.— 
‘‘(1) DETERMINATION.—From the funds appro-
priated under section 3(c)(2) for any fiscal year and 
remaining after the Secretary makes reservations 
under subsection (a), the Secretary shall allot to 
each State for the fiscal year an amount that bears 
the same relationship to the remainder as the 
amount the State received under chapter B of sub-
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part 1 of part A of title I for the preceding fiscal 
year bears to the amount all States received under 
that chapter for the preceding fiscal year, except 
that no State shall receive less than an amount 
equal to one-half of 1 percent of the total amount 
made available to all States under this subsection. 
‘‘(2) REALLOTMENT OF UNUSED FUNDS.—If a 
State does not receive an allotment under this part 
for a fiscal year, the Secretary shall reallot the 
amount of the State’s allotment to the remaining 
States in accordance with this section. 
‘‘(c) STATE USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Each State that receives an 
allotment under this part shall reserve not less than 
75 percent of the amount allotted to the State under 
subsection (b) for each fiscal year for awards to eli-
gible entities under section 3204. 
‘‘(2) AWARDS
TO
NONGOVERNMENTAL
ENTI-
TIES
TO
IMPROVE
STUDENT
ACADEMIC
ACHIEVE-
MENT.—Each State that receives an allotment under 
subsection (b) for each fiscal year shall reserve not 
less than 8 percent of the amount allotted to the 
State for awards to nongovernmental entities under 
section 3205. 
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‘‘(3) STATE ACTIVITIES AND STATE ADMINIS-
TRATION.—A State educational agency may reserve 
not more than 17 percent of the amount allotted to 
the State under subsection (b) for each fiscal year 
for the following: 
‘‘(A) Not more than 5 percent of such 
amount for each fiscal year for— 
‘‘(i) the administrative costs of car-
rying out its responsibilities under this 
part; 
‘‘(ii) monitoring and evaluation of 
programs and activities assisted under this 
part; 
‘‘(iii) providing training and technical 
assistance under this part; 
‘‘(iv) statewide academic focused pro-
grams; or 
‘‘(v) sharing evidence-based and other 
effective strategies with eligible entities. 
‘‘(B) To do one or more of the following: 
‘‘(i) To pay the costs of developing the 
State assessments and standards required 
under section 1111(b), which may include 
the costs of working, at the sole discretion 
of the State, in voluntary partnerships 
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with other States to develop such assess-
ments and standards. 
‘‘(ii) If the State has developed the 
assessments and standards required under 
section 1111(b), to administer those as-
sessments or carry out other activities re-
lated to ensuring that the State’s schools 
and local educational agencies are helping 
students meet the State’s academic stand-
ards under such section. 
‘‘(iii) To conduct an audit of State as-
sessments and report, in a publicly avail-
able format, the findings of such audit, 
which may include assessment purposes, 
costs, schedule of administration and dis-
semination of results, description of align-
ment with the State’s academic standards, 
and description of policies for inclusion of 
all students. 
‘‘(iv) To develop and implement a 
plan to improve the State assessment sys-
tem, which may include efforts, if appro-
priate as determined by the State— 
‘‘(I) to reduce the number of as-
sessments administered; 
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‘‘(II) to provide professional de-
velopment on assessment and data lit-
eracy; 
‘‘(III) to ensure the quality, va-
lidity, and reliability of assessments; 
or 
‘‘(IV) to improve the use of as-
sessments by decreasing the time be-
tween administering assessments and 
releasing assessment data. 
‘‘(C) Not more than 5 percent of such 
amount for each fiscal year for awarding blend-
ed learning projects under paragraph (4). 
‘‘(D) Awarding grants for the creation and 
distribution of open access textbooks and open 
educational resources. 
‘‘(4) BLENDED LEARNING PROJECTS.— 
‘‘(A) IN GENERAL.—From the amount of 
funds a State educational agency reserves under 
subsection (c)(3) for each fiscal year to carry 
out this paragraph, the State educational agen-
cy shall award grants on a competitive basis to 
eligible entities in the State to carry out blend-
ed learning projects described in this para-
graph. 
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‘‘(B) GEOGRAPHIC DIVERSITY.—In award-
ing grants under this paragraph, a State edu-
cational agency shall distribute funds equitably 
among geographic areas of the State, including 
rural and urban communities. 
‘‘(C) APPLICATION.—An eligible entity de-
siring to receive a grant under this paragraph 
shall submit an application to the State edu-
cational agency at such time and in such man-
ner as the agency may require, and which de-
scribes— 
‘‘(i) the blended learning project to be 
carried out by the eligible entity, including 
the design of the instructional model to be 
carried out by the eligible entity and how 
such eligible entity will use funds provided 
under this paragraph to carry out the 
project; 
‘‘(ii) in the case of an eligible entity 
described in subclause (I), (II), or (IV) of 
subparagraph (F)(ii), the schools that will 
participate in the project; 
‘‘(iii) the expected impact on student 
academic achievement; 
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‘‘(iv) how the eligible entity will en-
sure sufficient information technology is 
available to carry out the project; 
‘‘(v) how the eligible entity will ensure 
sufficient digital instructional resources are 
available to students participating in the 
project; 
‘‘(vi) the ongoing professional develop-
ment to be provided for teachers, school 
leaders, and other personnel carrying out 
the project; 
‘‘(vii) the State policies and proce-
dures for which the eligible entity requests 
waivers from the State to carry out the 
project, which may include requests for the 
waivers 
described 
in 
section 
3203(a)(11)(B); 
‘‘(viii) as appropriate, how the eligible 
entity will use the blended learning project 
to improve instruction and access to the 
curriculum for diverse groups of students, 
including students with disabilities and 
students who are limited English pro-
ficient; 
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‘‘(ix) how the eligible entity will evalu-
ate the project in terms of student aca-
demic achievement and publicly report the 
results of such evaluation; and 
‘‘(x) how the eligible entity will sus-
tain the project beyond the grant period. 
‘‘(D) USES OF FUNDS.—An eligible entity 
receiving a grant under this paragraph shall use 
such grant to carry out a blended learning 
project, which shall include at least 1 of the fol-
lowing activities: 
‘‘(i) Planning activities, which may in-
clude development of new instructional 
models (including blended learning tech-
nology software and platforms), the pur-
chase of digital instructional resources, ini-
tial professional development activities, and 
one-time information technology purchases, 
except that such expenditures may not in-
clude expenditures related to significant 
construction or renovation of facilities. 
‘‘(ii) Ongoing professional develop-
ment for teachers, school leaders, or other 
personnel involved in the project that is de-
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signed to support the implementation and 
academic success of the project. 
‘‘(E) NON-FEDERAL
MATCH.—A State 
educational agency that carries out a grant pro-
gram under this paragraph shall provide non- 
Federal matching funds equal to not less than 
10 percent of the grant funds awarded by the 
State educational agency to eligible entities 
under this paragraph. 
‘‘(F) DEFINITIONS.—In this paragraph: 
‘‘(i) BLENDED LEARNING PROJECT.— 
The term ‘blended learning project’ means 
a formal education program— 
‘‘(I) that includes an element of 
online learning, and instructional time 
in a supervised location away from 
home; 
‘‘(II) that includes an element of 
student control over time, path, or 
pace; and 
‘‘(III) in which the elements are 
connected to provide an integrated 
learning experience. 
‘‘(ii) ELIGIBLE
ENTITY.—The term 
‘eligible entity’ means a— 
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‘‘(I) local educational agency; 
‘‘(II) educational service agency; 
‘‘(III) charter school; or 
‘‘(IV) consortium of the entities 
described in subclause (I), (II), or 
(III), which may be in partnership 
with a for-profit or nonprofit entity. 
‘‘SEC. 3203. STATE APPLICATION. 
‘‘(a) IN GENERAL.—In order to receive an allotment 
under section 3202 for any fiscal year, a State educational 
agency shall submit to the Secretary, at such time as the 
Secretary may require, an application that— 
‘‘(1) describes how the State educational agency 
will use funds reserved for State-level activities, in-
cluding how, if any, of the funds will be used to sup-
port student safety; 
‘‘(2) describes the procedures and criteria the 
State educational agency will use for reviewing appli-
cations and awarding funds to eligible entities on a 
competitive basis, which shall include reviewing how 
the proposed project will help increase student aca-
demic achievement and student engagement; 
‘‘(3) describes how the State educational agency 
will ensure that awards made under this part are— 
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‘‘(A) of sufficient size and scope to support 
high-quality, effective programs that are con-
sistent with the purpose of this part; and 
‘‘(B) in amounts that are consistent with 
section 3204(f); 
‘‘(4) describes the steps the State educational 
agency will take to ensure that programs implement 
effective strategies, including providing ongoing 
technical assistance and training, and dissemination 
of evidence-based and other effective strategies; 
‘‘(5) describes how the State educational agency 
will consider students across all grades when making 
these awards; 
‘‘(6) an assurance that, other than providing 
technical and advisory assistance and monitoring 
compliance with this part, the State educational 
agency has not exercised and will not exercise any 
influence in the decisionmaking process of eligible 
entities as to the expenditure of funds received by 
the eligible entities under this part; 
‘‘(7) describes how programs under this part 
will be coordinated with programs under this Act, 
and other programs as appropriate; 
‘‘(8) contains an assurance that the State edu-
cational agency— 
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‘‘(A) will make awards for programs for a 
period of not more than 5 years; and 
‘‘(B) will require each eligible entity seek-
ing such an award to submit a plan describing 
how the project to be funded through the award 
will continue after funding under this part 
ends, if applicable; 
‘‘(9) contains an assurance that funds appro-
priated to carry out this part will be used to supple-
ment, and not supplant, State and local public funds 
expended to provide programs and activities author-
ized under this part and other similar programs; 
‘‘(10) an assurance that the State will support 
projects from each of the categories listed in section 
3204(b)(1)(D) in awarding subgrants to local edu-
cational agencies; and 
‘‘(11) in the case of a State that will carry out 
a 
program 
to 
award 
grants 
under 
section 
3202(c)(4), a description of the program, which 
shall include— 
‘‘(A) the criteria the State will use to 
award grants under such section to eligible enti-
ties to carry out blended learning projects; 
‘‘(B) the State policies and procedures to 
be waived by the State, consistent with Federal 
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law, for such eligible entities to carry out such 
projects, which may include waivers with re-
spect to— 
‘‘(i) restrictions on class sizes; 
‘‘(ii) 
restrictions 
on 
licensing 
or 
credentialing of personnel supervising stu-
dent work in such projects; 
‘‘(iii) restrictions on the use of State 
funding for instructional materials for the 
purchase of digital instructional resources; 
‘‘(iv) restrictions on advancing stu-
dents based on demonstrated mastery of 
learning outcomes, rather than seat-time 
requirements; and 
‘‘(v) restrictions on secondary school 
students in the State enrolling in online 
coursework; 
‘‘(C) how the State will inform eligible en-
tities of the availability of the waivers described 
in subparagraph (B); and 
‘‘(D) how the State will provide the non- 
Federal 
match 
required 
under 
section 
3202(c)(4)(E). 
‘‘(b) DEEMED APPROVAL.—An application submitted 
by a State educational agency pursuant to subsection (a) 
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