 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. 8064. 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 8063(b) of this title, 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 to 
    achieving State content standards and State student performance 
    standards and, in general, a State's education improvement plan;
        (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 section 
    8062(c)(2)(C) of this title, the quality of those activities and the 
    likelihood that those activities will improve student 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 8063(c) of this title, 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;
        (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 section 
    8062(c)(2)(C) of this title, 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,\1\ shall award subgrants under this subpart in a 
manner that, to the extent possible, ensures that such grants and 
subgrants--
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    \1\ So in original. The comma probably should not appear.
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        (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 8066(1) of this title, 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

            (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

        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.

                      (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 amount 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 such recipient 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 
            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, 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 
            performance 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.

(Pub. L. 89-10, title X, Sec. 10304, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3827; amended Pub. L. 105-78, title 
III, Sec. 315, Nov. 13, 1997, 111 Stat. 1508; Pub. L. 105-278, 
Sec. 3(d), (k), Oct. 22, 1998, 112 Stat. 2685, 2689; Pub. L. 106-554, 
Sec. 1(a)(1) [title III, Sec. 322(b)(1)], Dec. 21, 2000, 114 Stat. 2763, 
2763A-61.)

                       References in Text

    The Tribally Controlled Schools Act of 1988, referred to in subsec. 
(g), is part B (Secs. 5201-5212) of title V of Pub. L. 100-297, Apr. 28, 
1988, 102 Stat. 385, as amended, which is classified generally to 
chapter 27 (Sec. 2501 et seq.) of Title 25, Indians. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 2501 of Title 25 and Tables.


                               Amendments

    2000--Pub. L. 106-554 substituted ``subpart'' for ``part'' wherever 
appearing.
    1998--Subsec. (a)(6), (7). Pub. L. 105-278, Sec. 3(d)(1), added 
pars. (6) and (7).
    Subsec. (b)(7). Pub. L. 105-278, Sec. 3(d)(2), added par. (7).
    Subsec. (e). Pub. L. 105-278, Sec. 3(k), in introductory provisions, 
made technical amendment to reference in original act which appears in 
text as reference to section 8066(1) of this title.
    Subsec. (f)(1). Pub. L. 105-278, Sec. 3(d)(3)(A), inserted before 
period at end ``, 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)''.
    Subsec. (f)(2). Pub. L. 105-278, Sec. 3(d)(3)(B), inserted ``, or to 
disseminate information about the charter school and successful 
practices in the charter school,'' after ``charter school''.
    Subsec. (f)(5). Pub. L. 105-278, Sec. 3(d)(3)(C), substituted ``10 
percent'' for ``20 percent''.
    Subsec. (f)(6). Pub. L. 105-278, Sec. 3(d)(3)(D), added par. (6).
    1997--Subsec. (g). Pub. L. 105-78 added subsec. (g).

                  Section Referred to in Other Sections

    This section is referred to in sections 8062, 8063 of this title.
