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enhance the research and development activities sup-
ported by such Office; and 
‘‘(2) may include collaborative scientifically 
based research activities which are jointly funded and 
carried out with such Office. 
‘‘SEC. 4165. PROGRAM PRIORITIES. 
‘‘(a) GENERAL PRIORITY.—In carrying out this sub-
part, the Secretary shall give highest priority to programs 
and projects designed to develop new information that— 
‘‘(1) improves the capability of schools to plan, 
conduct, and improve programs to identify and serve 
gifted and talented students; and 
‘‘(2) assists schools in the identification of, and 
provision of services to, gifted and talented students 
who may not be identified and served through tradi-
tional assessment methods (including economically 
disadvantaged individuals, individuals of limited 
English proficiency, and individuals with disabil-
ities). 
‘‘(b) SERVICE PRIORITY.—In approving applications 
for assistance under section 4164(a)(2), the Secretary shall 
ensure that in each fiscal year not less than 50 percent of 
the applications approved under such section address the 
priority described in subsection (a)(2) of this section. 
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‘‘SEC. 4166. GENERAL PROVISIONS. 
‘‘(a) PARTICIPATION OF PRIVATE SCHOOL CHILDREN 
AND TEACHERS.—In making grants and entering into con-
tracts under this subpart, the Secretary shall ensure, where 
appropriate, that provision is made for the equitable par-
ticipation of students and teachers in private nonprofit ele-
mentary and secondary schools, including the participation 
of teachers and other personnel in professional development 
programs serving such children. 
‘‘(b) REVIEW, DISSEMINATION, AND EVALUATION.— 
The Secretary shall— 
‘‘(1) use a peer review process in reviewing ap-
plications under this subpart; 
‘‘(2) ensure that information on the activities 
and results of programs and projects funded under 
this subpart is disseminated to appropriate State and 
local educational agencies and other appropriate or-
ganizations, including nonprofit private organiza-
tions; and 
‘‘(3) evaluate the effectiveness of programs under 
this subpart in accordance with section 8651, both in 
terms of the impact on students traditionally served 
in separate gifted and talented programs and on 
other students, and submit the results of such evalua-
tion to the Congress not later than 2 years after the 
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date of the enactment of the No Child Left Behind Act 
of 2001. 
‘‘(c) PROGRAM OPERATIONS.—The Secretary shall en-
sure that the programs under this subpart are administered 
within the Department by a person who has recognized pro-
fessional qualifications and experience in the field of the 
education of gifted and talented students and who shall— 
‘‘(1) administer and coordinate the programs au-
thorized under this subpart; 
‘‘(2) serve as a focal point of national leadership 
and information on the educational needs of gifted 
and talented students and the availability of edu-
cational services and programs designed to meet such 
needs; and 
‘‘(3) assist the Assistant Secretary of the Office 
of Educational Research and Improvement in identi-
fying research priorities which reflect the needs of 
gifted and talented students. 
‘‘SEC. 4167. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this subpart such sums as may be necessary for each of fis-
cal years 2002 through 2006.’’. 
SEC. 402. CONTINUATION OF AWARDS. 
Notwithstanding any other provision of this Act, any 
person or agency that was awarded a grant under part B 
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or D of title X (20 U.S.C. 8031 et seq., 8091 et seq.) prior 
to the date of the enactment of this Act shall continue to 
receive funds in accordance with the terms of such award 
until the date on which the award period terminates under 
such terms. 
PART B—PUBLIC CHARTER SCHOOLS 
SEC. 411. PUBLIC CHARTER SCHOOLS. 
Title IV, as amended by section 401, is further amend-
ed by adding at the end the following: 
‘‘PART B—PUBLIC CHARTER SCHOOLS 
‘‘SEC. 4201. FINDINGS AND PURPOSE. 
‘‘(a) FINDINGS.—The Congress finds that— 
‘‘(1) enhancement of parent and student choices 
among public schools can assist in promoting com-
prehensive educational reform and give more students 
the opportunity to meet challenging State academic 
content standards and State student academic 
achievement standards, if sufficiently diverse and 
high-quality choices, and genuine opportunities to 
take advantage of such choices, are available to all 
students; 
‘‘(2) useful examples of such choices can come 
from States and communities that experiment with 
methods of offering teachers and other educators, par-
ents, and other members of the public the opportunity 
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to design and implement new public schools and to 
transform existing public schools; 
‘‘(3) charter schools are a mechanism for testing 
a variety of educational approaches and should, there-
fore, be exempted from restrictive rules and regula-
tions if the leadership of such schools commits to at-
taining specific and ambitious educational results for 
educationally disadvantaged students consistent with 
challenging State academic content standards and 
State student academic achievement standards for all 
students; 
‘‘(4) charter schools can embody the necessary 
mixture of enhanced choice, exemption from restric-
tive regulations, and a focus on learning gains; 
‘‘(5) charter schools, including charter schools 
that are schools-within-schools, can help reduce school 
size, and this reduction can have a significant effect 
on student achievement; 
‘‘(6) the Federal Government should test, evalu-
ate, and disseminate information on a variety of 
charter school models in order to help demonstrate the 
benefits of this promising educational reform; and 
‘‘(7) there is a strong documented need for cash- 
flow assistance to charter schools that are starting up, 
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because State and local operating revenue streams are 
not immediately available. 
‘‘(b) PURPOSE.—It is the purpose of this part to in-
crease national understanding of the charter schools model 
by— 
‘‘(1) providing financial assistance for the plan-
ning, program design and initial implementation of 
charter schools; 
‘‘(2) evaluating the effects of such schools, includ-
ing the effects on students, student achievement, staff, 
and parents; and 
‘‘(3) expanding the number of high-quality char-
ter schools available to students across the Nation. 
‘‘SEC. 4202. PROGRAM AUTHORIZED. 
‘‘(a) IN GENERAL.—The Secretary may award grants 
to State educational agencies having applications approved 
pursuant to section 4203 to enable such agencies to conduct 
a charter school grant program in accordance with this 
part. 
‘‘(b) SPECIAL RULE.—If a State educational agency 
elects not to participate in the program authorized by this 
part or does not have an application approved under sec-
tion 4203, the Secretary may award a grant to an eligible 
applicant that serves such State and has an application 
approved pursuant to section 4203(c). 
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‘‘(c) PROGRAM PERIODS.— 
‘‘(1) GRANTS TO STATES.—Grants awarded to 
State educational agencies under this part shall be 
awarded for a period of not more than 3 years. 
‘‘(2) GRANTS TO ELIGIBLE APPLICANTS.—Grants 
awarded by the Secretary to eligible applicants or 
subgrants awarded by State educational agencies to 
eligible applicants under this part shall be awarded 
for a period of not more than 3 years, of which the 
eligible applicant may use— 
‘‘(A) not more than 18 months for planning 
and program design; 
‘‘(B) not more than 2 years for the initial 
implementation of a charter school; and 
‘‘(C) not more than 2 years to carry out 
dissemination activities described in section 
4204(f)(6)(B). 
‘‘(d) LIMITATION.—A charter school may not receive— 
‘‘(1) more than one grant for activities described 
in subparagraphs (A) and (B) of subsection (c)(2); or 
‘‘(2) more than one grant for activities under 
subparagraph (C) of subsection (c)(2). 
‘‘(e) PRIORITY TREATMENT..— 
‘‘(1) IN GENERAL.—In awarding grants under 
this part from any funds appropriated under section 
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4211, the Secretary shall give priority to States to the 
extent that the States meet the criteria described in 
paragraph (2) and one or more of the criteria de-
scribed in subparagraph (A), (B), or (C) of para-
graph (3). 
‘‘(2) REVIEW
AND
EVALUATION
PRIORITY
CRI-
TERIA.—The criteria referred to in paragraph (1) is 
that the State provides for periodic review and eval-
uation by the authorized public chartering agency of 
each charter school, at least once every 5 years unless 
required more frequently by State law, to determine 
whether the charter school is meeting the terms of the 
school’s charter, and is meeting or exceeding the aca-
demic performance requirements and goals for charter 
schools as set forth under State law or the school’s 
charter. 
‘‘(3) PRIORITY CRITERIA.—The criteria referred 
to in paragraph (1) are the following: 
‘‘(A) The State has demonstrated progress, 
in increasing the number of high quality charter 
schools that are held accountable in the terms of 
the schools’ charters for meeting clear and meas-
urable objectives for the educational progress of 
the students attending the schools, in the period 
prior to the period for which a State educational 
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•HR 1 RH1&2 
agency or eligible applicant applies for a grant 
under this part. 
‘‘(B) The State— 
‘‘(i) provides for one authorized public 
chartering agency that is not a local edu-
cational agency, such as a State chartering 
board, for each individual or entity seeking 
to operate a charter school pursuant to such 
State law; or 
‘‘(ii) in the case of a State in which 
local educational agencies are the only au-
thorized public chartering agencies, allows 
for an appeals process for the denial of an 
application for a charter school. 
‘‘(C) The State ensures that each charter 
school has a high degree of autonomy over the 
charter school’s budgets and expenditures. 
‘‘(f) AMOUNT CRITERIA.—In determining the amount 
of a grant to be awarded under this part to a State edu-
cational agency, the Secretary shall take into consideration 
the number of charter schools that are operating, or are ap-
proved to open, in the State. 
‘‘SEC. 4203. APPLICATIONS. 
‘‘(a) APPLICATIONS FROM STATE AGENCIES.—Each 
State educational agency desiring a grant from the Sec-
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retary under this part shall submit to the Secretary an ap-
plication at such time, in such manner, and containing or 
accompanied by such information as the Secretary may re-
quire. 
‘‘(b) CONTENTS OF A STATE EDUCATIONAL AGENCY 
APPLICATION.—Each application submitted pursuant to 
subsection (a) shall— 
‘‘(1) describe the objectives of the State edu-
cational agency’s charter school grant program and 
how such objectives will be fulfilled, including steps 
taken by the State educational agency to inform 
teachers, parents, and communities of the State edu-
cational agency’s charter school grant program; and 
‘‘(2) describe how the State educational agency— 
‘‘(A) will inform each charter school in the 
State regarding— 
‘‘(i) Federal funds that the charter 
school is eligible to receive; and 
‘‘(ii) Federal programs in which the 
charter school may participate; 
‘‘(B) will ensure that each charter school in 
the State receives the charter school’s commensu-
rate share of Federal education funds that are 
allocated by formula each year, including during 
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the first year of operation of the charter school; 
and 
‘‘(C) will disseminate best or promising 
practices of charter schools to each local edu-
cational agency in the State; and 
‘‘(3) contain assurances that the State edu-
cational agency will require each eligible applicant 
desiring to receive a subgrant to submit an applica-
tion to the State educational agency containing— 
‘‘(A) a description of the educational pro-
gram to be implemented by the proposed charter 
school, including— 
‘‘(i) how the program will enable all 
students to meet challenging State student 
academic achievement standards; 
‘‘(ii) the grade levels or ages of children 
to be served; and 
‘‘(iii) the curriculum and instructional 
practices to be used; 
‘‘(B) a description of how the charter school 
will be managed; 
‘‘(C) a description of— 
‘‘(i) the objectives of the charter school; 
and 
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