 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
             SUBCHAPTER X--PROGRAMS OF NATIONAL SIGNIFICANCE
 
                     Part C--Public Charter Schools
 
              subpart 1--basic charter school grant program
 
Sec. 8062. Program authorized


(a) In general

    The Secretary may award grants to State educational agencies having 
applications approved pursuant to section 8063 of this title 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 8063 of this title, the Secretary may award a 
grant to an eligible applicant that serves such State and has an 
application approved pursuant to section 8063(c) of this title.

(c) Program periods

                        (1) Grants to States

        Grants awarded to State educational agencies under this subpart 
    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 subpart 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 8064(f)(6)(B) of this title.

(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) of this section; or
        (2) more than one grant for activities under subparagraph (C) of 
    subsection (c)(2) of this section.

(e) Priority treatment

                           (1) In general

        (A) Fiscal years 1999, 2000, and 2001

            In awarding grants under this subpart for any of the fiscal 
        years 1999, 2000, and 2001 from funds appropriated under section 
        8067 of this title that are in excess of $51,000,000 for the 
        fiscal year, 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).

        (B) Succeeding fiscal years

            In awarding grants under this subpart for fiscal year 2002 
        or any succeeding fiscal year from any funds appropriated under 
        section 8067 of this title, 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) is 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 academic 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 
        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.

            (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.

(Pub. L. 89-10, title X, Sec. 10302, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3825; amended Pub. L. 105-278, 
Sec. 3(b), Oct. 22, 1998, 112 Stat. 2682; Pub. L. 106-554, Sec. 1(a)(1) 
[title III, Sec. 322(b)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A-61.)


                               Amendments

    2000--Pub. L. 106-554 substituted ``subpart'' for ``part'' wherever 
appearing.
    1998--Subsec. (c)(2)(C). Pub. L. 105-278, Sec. 3(b)(1), added 
subpar. (C).
    Subsec. (d). Pub. L. 105-278, Sec. 3(b)(2), amended heading and text 
of subsec. (d) generally. Prior to amendment, text read as follows: 
``The Secretary shall not award more than one grant and State 
educational agencies shall not award more than one subgrant under this 
part to support a particular charter school.''
    Subsecs. (e), (f). Pub. L. 105-278, Sec. 3(b)(3), added subsecs. (e) 
and (f).

                  Section Referred to in Other Sections

    This section is referred to in sections 8063, 8064 of this title.
