A r c h i v e d  I n f o r m a t i o n

``SEC. 10304. ADMINISTRATION.

``(a) Selection Criteria for State Educational Agencies.--The Secretary shall award grants to State educational agencies under this part on the basis of the quality of the applications submitted under section 10303(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 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; and
``(5) the likelihood that the charter school grant program will meet those objectives and improve educational results for students.
``(b) Selection Criteria for Eligible Applicants.--The Secretary shall award grants to eligible applicants under this part on the basis of the quality of the applications submitted under section 10303(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;
``(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; and
``(6) the likelihood that the charter school will meet those objectives and improve educational results for students.
``(c) Peer Review.--The Secretary, and each State educational agency receiving a grant under this part, shall use a peer review process to review applications for assistance under this part.
``(d) Diversity of Projects.--The Secretary and each State educational agency receiving a grant under this part, shall award subgrants under this part 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 10306(1), if--
``(1) the waiver is requested in an approved application under this part; and
``(2) the Secretary determines that granting such a waiver will promote the purpose of this part.
``(f) Use of Funds.--
``(1) State educational agencies.--Each State educational agency receiving a grant under this part 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 part.
``(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 in accordance with this part.
``(3) Allowable activities.--An eligible applicant receiving a grant or subgrant under this part 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 part may reserve not more than 5 percent of such grant funds for administrative expenses associated with the charter school grant program assisted under this part.
``(5) Revolving loan funds.--Each State educational agency receiving a grant pursuant to this part may reserve not more than 20 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 part, 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.

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SEC. 10303. APPLICATIONS. Table of Contents SEC. 10305. NATIONAL ACTIVITIES.