SEC.4301.

CHARTER SCHOOLS

Section Summary

ESSA

SEC. 4301. CHARTER SCHOOLS.

Part C of title IV (20 U.S.C. 7221 et seq.), as redesignated by

section 4001, is amended--

(1) by striking sections <<NOTE: 20 USC 7221, 7221a-

7221d.>> 4301 through 4305, as redesignated by section 4001, and

inserting the following:

``SEC. 4301. <<NOTE: 20 USC 7221.>> PURPOSE.

``It is the purpose of this part to--

[[Page 129 STAT. 1994]]

``(1) improve the United States education system and

education opportunities for all people in the United States by

supporting innovation in public education in public school

settings that prepare students to compete and contribute to the

global economy and a stronger Nation;

``(2) provide financial assistance for the planning, program

design, and initial implementation of charter schools;

``(3) increase the number of high-quality charter schools

available to students across the United States;

``(4) evaluate the impact of charter schools on student

achievement, families, and communities, and share best practices

between charter schools and other public schools;

``(5) encourage States to provide support to charter schools

for facilities financing in an amount more nearly commensurate

to the amount States typically provide for traditional public

schools;

``(6) expand opportunities for children with disabilities,

English learners, and other traditionally underserved students

to attend charter schools and meet the challenging State

academic standards;

``(7) support efforts to strengthen the charter school

authorizing process to improve performance management, including

transparency, oversight and monitoring (including financial

audits), and evaluation of such schools; and

``(8) support quality, accountability, and transparency in

the operational performance of all authorized public chartering

agencies, including State educational agencies, local

educational agencies, and other authorizing entities.

NCLB Text

``SEC. 5201. <<NOTE: 20 USC 7221.>> PURPOSE.

``It is the purpose of this subpart to increase national

understanding of the charter schools model by--

``(1) providing financial assistance for the planning,

program design, and initial implementation of charter schools;

``(2) evaluating the effects of such schools, including the

effects on students, student academic achievement, staff, and

parents;

``(3) expanding the number of high-quality charter schools

available to students across the Nation; and

``(4) encouraging the 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.

``SEC. 5202. <<NOTE: 20 USC 7221a.>> PROGRAM AUTHORIZED.

``(a) In General.--The Secretary may award grants to State

educational agencies having applications approved pursuant to section

5203 to enable such agencies to conduct a charter school grant program

in accordance with this subpart.

``(b) Special Rule.--If a State educational agency elects not to

participate in the program authorized by this subpart or does not have

an application approved under section 5203, the Secretary may award a

grant to an eligible applicant that serves such State and has an

application approved pursuant to section 5203(c).

``(c) Program Periods.--

[[Page 115 STAT. 1789]]

``(1) Grants to states.--Grants awarded to State educational

agencies under this subpart shall be 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 subpart

shall be 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

5204(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 subpart for

fiscal year 2002 or any succeeding fiscal year from any funds

appropriated under section 5211 (other than funds reserved to

carry out section 5205(b)), 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 described in

subparagraph (A), (B), or (C) of paragraph (3).

``(2) Review and evaluation priority criteria.--The criteria

referred to in paragraph (1) are that the State provides for

periodic review and evaluation 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 student academic

achievement 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 measurable objectives for

the educational progress of the students attending the

schools, in the period prior to the period for which a

State educational agency or eligible applicant applies

for a grant under this subpart.

``(B) The State--

``(i) provides for one authorized public

chartering agency that is not a local educational

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 authorized

public chartering agencies, allows for an appeals

process for the denial of an application for a

charter school.

[[Page 115 STAT. 1790]]

``(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 subpart to a State educational agency, the Secretary

shall take into consideration the number of charter schools that are

operating, or are approved to open, in the State.

``SEC. 5203. <<NOTE: 20 USC 7221b.>> APPLICATIONS.

``(a) Applications From State Agencies.--Each State educational

agency desiring a grant from the Secretary under this subpart shall

submit to the Secretary an application at such time, in such manner, and

containing or accompanied by such information as the Secretary may

require.

``(b) Contents of a State Educational Agency Application.--Each

application submitted pursuant to subsection (a) shall--

``(1) describe the objectives of the State educational

agency's charter school grant program and a description of how

such objectives will be fulfilled, including steps taken by the

State educational agency to inform teachers, parents, and

communities of the State educational 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 commensurate share

of Federal education funds that are allocated by formula

each year, including during the first year of operation

of the charter school; and

``(C) will disseminate best or promising practices

of charter schools to each local educational agency in

the State; and

``(3) contain assurances that the State educational agency

will require each eligible applicant desiring to receive a

subgrant to submit an application to the State educational

agency containing--

``(A) a description of the educational program 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

[[Page 115 STAT. 1791]]

``(ii) the methods by which the charter school

will determine its progress toward achieving those

objectives;

``(D) a description of the administrative

relationship between the charter school and the

authorized public chartering agency;

``(E) a description of how parents and other members

of the community will be involved in the planning,

program design, and implementation of the charter

school;

``(F) a description of how the authorized public

chartering agency will provide for continued operation

of the school once the Federal grant has expired, if

such agency determines that the school has met the

objectives described in subparagraph (C)(i);

``(G) a request and justification for waivers of any

Federal statutory or regulatory provisions that the

eligible applicant believes are necessary for the

successful operation of the charter school, and a

description of any State or local rules, generally

applicable to public schools, that will be waived for,

or otherwise not apply to, the school;

``(H) a description of how the subgrant funds or

grant funds, as appropriate, will be used, including a

description of how such funds will be used in

conjunction with other Federal programs administered by

the Secretary;

``(I) a description of how students in the community

will be--

``(i) informed about the charter school; and

``(ii) given an equal opportunity to attend

the charter school;

``(J) an assurance that the eligible applicant will

annually provide the Secretary and the State educational

agency such information as may be required to determine

if the charter school is making satisfactory progress

toward achieving the objectives described in

subparagraph (C)(i);

``(K) an assurance that the eligible applicant will

cooperate with the Secretary and the State educational

agency in evaluating the program assisted under this

subpart;

``(L) a description of how a charter school that is

considered a local educational agency under State law,

or a local educational agency in which a charter school

is located, will comply with sections 613(a)(5) and

613(e)(1)(B) of the Individuals with Disabilities

Education Act;

``(M) if the eligible applicant desires to use

subgrant funds for dissemination activities under

section 5202(c)(2)(C), a description of those activities

and how those activities will involve charter schools

and other public schools, local educational agencies,

developers, and potential developers; and

``(N) such other information and assurances as the

Secretary and the State educational agency may require.

``(c) Eligible Applicant Application.--Each eligible applicant

desiring a grant pursuant to section 5202(b) shall submit an application

to the Secretary at such time, in such manner, and accompanied by such

information as the Secretary may reasonably require.

``(d) Contents of Eligible Applicant Application.--Each application

submitted pursuant to subsection (c) shall contain--

[[Page 115 STAT. 1792]]

``(1) the information and assurances described in

subparagraphs (A) through (N) of subsection (b)(3), except that

for purposes of this subsection subparagraphs (J), (K), and (N)

of such subsection shall be applied by striking `and the State

educational agency' each place such term appears;

``(2) assurances that the State educational agency--

``(A) will grant, or will obtain, waivers of State

statutory or regulatory requirements; and

``(B) will assist each subgrantee in the State in

receiving a waiver under section 5204(e); and

``(3) assurances that the eligible applicant has provided

its authorized public chartering authority timely notice, and a

copy, of the application, except that the State educational

agency (or the Secretary, in the case of an application

submitted to the Secretary) may waive the requirement of this

paragraph in the case of an application for a precharter

planning grant or subgrant if the authorized public chartering

authority to which a charter school proposal will be submitted

has not been determined at the time the grant or subgrant

application is submitted.

``SEC. 5204. <<NOTE: 20 USC 7221c.>> ADMINISTRATION.

``(a) Selection Criteria for State Educational Agencies.--The

Secretary shall award grants to State educational agencies under this

subpart on the basis of the quality of the applications submitted under

section 5203(b), after taking into consideration such factors as--

``(1) the contribution that the charter schools grant

program will make to assisting educationally disadvantaged and

other students in meeting State academic content standards and

State student academic achievement standards;

``(2) the degree of flexibility afforded by the State

educational agency to charter schools under the State's charter

schools law;

``(3) the ambitiousness of the objectives for the State

charter school grant program;

``(4) the quality of the strategy for assessing achievement

of those objectives;

``(5) the likelihood that the charter school grant program

will meet those objectives and improve educational results for

students;

``(6) the number of high-quality charter schools created

under this subpart in the State; and

``(7) in the case of State educational agencies that propose

to use grant funds to support dissemination activities under

subsection (f)(6)(B), the quality of those activities and the

likelihood that those activities will improve student academic

achievement.

``(b) Selection Criteria for Eligible Applicants.--The Secretary

shall award grants to eligible applicants under this subpart on the

basis of the quality of the applications submitted under section

5203(c), after taking into consideration such factors as--

``(1) the quality of the proposed curriculum and

instructional practices;

``(2) the degree of flexibility afforded by the State

educational agency and, if applicable, the local educational

agency to the charter school;

[[Page 115 STAT. 1793]]

``(3) the extent of community support for the application;

``(4) the ambitiousness of the objectives for the charter

school;

``(5) the quality of the strategy for assessing achievement

of those objectives;

``(6) the likelihood that the charter school will meet those

objectives and improve educational results for students; and

``(7) in the case of an eligible applicant that proposes to

use grant funds to support dissemination activities under

subsection (f)(6)(B), the quality of those activities and the

likelihood that those activities will improve student

achievement.

``(c) Peer Review.--The Secretary, and each State educational agency

receiving a grant under this subpart, shall use a peer review process to

review applications for assistance under this subpart.

``(d) Diversity of Projects.--The Secretary and each State

educational agency receiving a grant under this subpart, shall award

grants and subgrants under this subpart in a manner that, to the extent

possible, ensures that such grants and subgrants--

``(1) are distributed throughout different areas of the

Nation and each State, including urban and rural areas; and

``(2) will assist charter schools representing a variety of

educational approaches, such as approaches designed to reduce

school size.

``(e) Waivers.--The Secretary may waive any statutory or regulatory

requirement over which the Secretary exercises administrative authority

except any such requirement relating to the elements of a charter school

described in section 5210(1), if--

``(1) the waiver is requested in an approved application

under this subpart; and

``(2) the Secretary determines that granting such a waiver

will promote the purpose of this subpart.

``(f) Use of Funds.--

``(1) State educational agencies.--Each State educational

agency receiving a grant under this subpart shall use such grant

funds to award subgrants to one or more eligible applicants in

the State to enable such applicant to plan and implement a

charter school in accordance with this subpart, except that the

State educational agency may reserve not more than 10 percent of

the grant funds to support dissemination activities described in

paragraph (6).

``(2) Eligible applicants.--Each eligible applicant

receiving funds from the Secretary or a State educational agency

shall use such funds to plan and implement a charter school, or

to disseminate information about the charter school and

successful practices in the charter school, in accordance with

this subpart.

``(3) Allowable activities.--An eligible applicant receiving

a grant or subgrant under this subpart may use the grant or

subgrant funds only for--

(A) post-award planning and design of the

educational program, which may include--

``(i) refinement of the desired educational

results and of the methods for measuring progress

toward achieving those results; and

``(ii) professional development of teachers

and other staff who will work in the charter

school; and

[[Page 115 STAT. 1794]]

``(B) initial implementation of the charter school,

which may include--

``(i) informing the community about the

school;

``(ii) acquiring necessary equipment and

educational materials and supplies;

``(iii) acquiring or developing curriculum

materials; and

``(iv) other initial operational costs that

cannot be met from State or local sources.

``(4) Administrative expenses.--

``(A) State educational agency administrative

expenses.--Each State educational agency receiving a

grant pursuant to this subpart may reserve not more than

5 percent of such grant funds for administrative

expenses associated with the charter school grant

program assisted under this subpart.

``(B) Local administrative expenses.--A local

educational agency may not deduct funds for

administrative fees or expenses from a subgrant awarded

to an eligible applicant, unless the eligible applicant

enters voluntarily into a mutually agreed upon

arrangement for administrative services with the

relevant local educational agency. Absent such approval,

the local educational agency shall distribute all such

subgrant funds to the eligible applicant without delay.

``(5) Revolving loan funds.--Each State educational agency

receiving a grant pursuant to this subpart may reserve not more

than 10 percent of the grant funds for the establishment of a

revolving loan fund. Such fund may be used to make loans to

eligible applicants that have received a subgrant under this

subpart, under such terms as may be determined by the State

educational agency, for the initial operation of the charter

school grant program of the eligible applicant until such time

as the recipient begins receiving ongoing operational support

from State or local financing sources.

``(6) Dissemination.--

``(A) In general.--A charter school may apply for

funds under this subpart, whether or not the charter

school has applied for or received funds under this

subpart for planning, program design, or implementation,

to carry out the activities described in subparagraph

(B) if the charter school has been in operation for at

least 3 consecutive years and has demonstrated overall

success, including--

``(i) substantial progress in improving

student academic achievement;

``(ii) high levels of parent satisfaction; and

``(iii) the management and leadership

necessary to overcome initial start-up problems

and establish a thriving, financially viable

charter school.

``(B) Activities.--A charter school described in

subparagraph (A) may use funds reserved under paragraph

(1) to assist other schools in adapting the charter

school's program (or certain aspects of the charter

school's program), or to disseminate information about

the charter school, through such activities as--

``(i) assisting other individuals with the

planning and start-up of one or more new public

schools,

[[Page 115 STAT. 1795]]

including charter schools, that are independent of

the assisting charter school and the assisting

charter school's developers, and that agree to be

held to at least as high a level of accountability

as the assisting charter school;

``(ii) developing partnerships with other

public schools, including charter schools,

designed to improve student academic achievement

in each of the schools participating in the

partnership;

``(iii) developing curriculum materials,

assessments, and other materials that promote

increased student achievement and are based on

successful practices within the assisting charter

school; and

``(iv) conducting evaluations and developing

materials that document the successful practices

of the assisting charter school and that are

designed to improve student performance in other

schools.

``(g) Tribally Controlled Schools.--Each State that receives a grant

under this subpart and designates a tribally controlled school as a

charter school shall not consider payments to a school under the

Tribally Controlled Schools Act of 1988 (25 U.S.C. 2507) in

determining--

``(1) the eligibility of the school to receive any other

Federal, State, or local aid; or

``(2) the amount of such aid.

``SEC. 5205. <<NOTE: 20 USC 7221d.>> NATIONAL ACTIVITIES.

``(a) In General.--The Secretary shall reserve for each fiscal year

the greater of 5 percent or $5,000,000 of the amount appropriated to

carry out this subpart, except that in no fiscal year shall the total

amount so reserved exceed $8,000,000, to carry out the following

activities:

``(1) To provide charter schools, either directly or through

State educational agencies, with--

``(A) information regarding--

``(i) Federal funds that charter schools are

eligible to receive; and

``(ii) other Federal programs in which charter

schools may participate; and

``(B) assistance in applying for Federal education

funds that are allocated by formula, including

assistance with filing deadlines and submission of

applications.

``(2) To provide for other evaluations or studies that

include the evaluation of the impact of charter schools on

student academic achievement, including information regarding--

``(A) students attending charter schools reported on

the basis of race, age, disability, gender, limited

English proficiency, and previous enrollment in public

school; and

``(B) the professional qualifications of teachers

within a charter school and the turnover of the teaching

force.

``(3) To provide--

``(A) information to applicants for assistance under

this subpart;

``(B) assistance to applicants for assistance under

this subpart with the preparation of applications under

section 5203;

[[Page 115 STAT. 1796]]

``(C) assistance in the planning and startup of

charter schools;

``(D) training and technical assistance to existing

charter schools; and

``(E) for the dissemination to other public schools

of best or promising practices in charter schools.

``(4) To provide (including through the use of one or more

contracts that use a competitive bidding process) for the

collection of information regarding the financial resources

available to charter schools, including access to private

capital, and to widely disseminate to charter schools any such

relevant information and model descriptions of successful

programs.

``(5) To carry out evaluations of, technical assistance for,

and information dissemination regarding, the per-pupil

facilities aid programs. In carrying out the evaluations, the

Secretary may carry out one or more evaluations of State

programs assisted under this subsection, which shall, at a

minimum, address--

``(A) how, and the extent to which, the programs

promote educational equity and excellence; and

``(B) the extent to which charter schools supported

through the programs are--

``(i) held accountable to the public;

``(ii) effective in improving public

education; and

``(iii) open and accessible to all students.

``(b) Per-Pupil Facilities Aid Programs.--

``(1) Definition of per-pupil facilities aid program.--In

this subsection, the term `per-pupil facilities aid program'

means a program in which a State makes payments, on a per-pupil

basis, to charter schools to provide the schools with

financing--

``(A) that is dedicated solely for funding charter

school facilities; or

``(B) a portion of which is dedicated for funding

charter school facilities.

``(2) Grants.--

``(A) In general.--From the amount made available to

carry out this subsection under paragraphs (2) and

(3)(B) of section 5211(b) for any fiscal year, the

Secretary shall make grants, on a competitive basis, to

States to pay for the Federal share of the cost of

establishing or enhancing, and administering per-pupil

facilities aid programs.

``(B) Period.--The Secretary shall award grants

under this subsection for periods of not more than 5

years.

``(C) Federal share.--The Federal share of the cost

described in subparagraph (A) for a per-pupil facilities

aid program shall be not more than--

``(i) 90 percent of the cost, for the first

fiscal year for which the program receives

assistance under this subsection;

``(ii) 80 percent in the second such year;

``(iii) 60 percent in the third such year;

``(iv) 40 percent in the fourth such year; and

``(v) 20 percent in the fifth such year.

``(3) Use of funds.--

``(A) In general.--A State that receives a grant

under this subsection shall use the funds made available

through

[[Page 115 STAT. 1797]]

the grant to establish or enhance, and administer, a

per-pupil facilities aid program for charter schools in

the State.

``(B) Evaluations; technical assistance;

dissemination.--From the amount made available to a

State through a grant under this subsection for a fiscal

year, the State may reserve not more than 5 percent to

carry out evaluations, to provide technical assistance,

and to disseminate information.

``(C) Supplement, not supplant.--Funds made

available under this subsection shall be used to

supplement, and not supplant, State and local public

funds expended to provide per pupil facilities aid

programs, operations financing programs, or other

programs, for charter schools.

``(4) Requirements.--

``(A) Voluntary participation.--No State may be

required to participate in a program carried out under

this subsection.

``(B) State law.--To be eligible to receive a grant

under this subsection, a State shall establish or

enhance, and administer, a per-pupil facilities aid

program for charter schools in the State, that--

``(i) is specified in State law; and

``(ii) provides annual financing, on a per-

pupil basis, for charter school facilities.

``(5) Applications.--To be eligible to receive a grant under

this subsection, a State shall submit an application to the

Secretary at such time, in such manner, and containing such

information as the Secretary may require.

``(6) Priorities.--In making grants under this subsection,

the Secretary shall give priority to States that meet the

criteria described in paragraph (2), and subparagraphs (A), (B),

and (C) of paragraph (3), of section 5202(e).

``(c) Rule of Construction.--Nothing in this section shall be

construed to require charter schools to collect any data described in

subsection (a).