S. 1078Senate108th Congress (2003-2005)In Committee

Stable Transition in Education for Armed Services' Dependent Youth Act

Introduced May 19, 2003

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR S6628-6631)

May 19, 2003

View full timeline
SenateIntro Referral

Introduced in Senate

May 19, 2003

SenateIntro Referral

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR S6628-6631)

May 19, 2003

Floor Debate

7 members

What members said about S. 1078 on the floor

4 Republicans3 Democrats
Arlen Specter
Sen. Arlen SpecterR-PA · May 19, 2003

Mr. President, I am introducing legislation today to direct the Department of Veterans Affairs, VA, to construct a national cemetery in southeastern Pennsylvania. In order to facilitate the…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · May 19, 2003

Mr. President, I rise today to introduce the ``Antitrust Improvements Act of 2003.'' I want to thank the Ranking Democrat Member from the Judiciary Committee, Senator Leahy, for joining me in…

Chuck Hagel
Sen. Chuck HagelR-NE · May 19, 2003

Mr. President, I rise today to introduce the Vietnam Veterans Memorial Education Center Bill. I am joined by my colleagues and fellow Vietnam veterans, Senators McCain and Kerry, in sponsoring this…

Pete V. Domenici
Sen. Pete V. DomeniciR-NM · May 19, 2003

Mr. President, I rise today to introduce a bill that will amend Title V of the Higher Education Act. Specifically, this bill will eliminate the 2-year wait-out period now required between…

John F. Kerry
Sen. John F. KerryD-MA · May 19, 2003

Mr. President, the Vietnam Veterans Memorial is a special place on the national mall. Its design has proven moving to millions of visitors, offering a place of reflection, remembrance, and healing.…

Show 3 more
Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · May 19, 2003

Mr. President, I am pleased to join Senator Hatch today in offering this bill to increase criminal penalties against those who monopolize or restrict the market using unfair and illegal business…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · May 19, 2003

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · May 19, 2003

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued May 19, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1078 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 1078

To provide for military charters between military installations and
local school districts, to provide credit enhancement initiatives to
promote military charter school facility acquisition, construction, and
renovation, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 19, 2003

Ms. Landrieu introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

A BILL

To provide for military charters between military installations and
local school districts, to provide credit enhancement initiatives to
promote military charter school facility acquisition, construction, and
renovation, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

TITLE I--STABLE TRANSITIONS IN EDUCATION FOR ARMED SERVICES' DEPENDENT
YOUTH

SEC. 101. SHORT TITLE.

This title may be cited as the ``Stable Transitions in Education
for Armed Services' Dependent Youth Act''.

SEC. 102. FINDINGS.

Congress finds that--
(1) States are establishing new and higher academic
standards for students in kindergarten through grade 12;
(2) no Federal funding streams are specifically designed to
help States and school districts with the costs of providing
military or mobile students who are struggling academically,
with the extended learning time and accelerated curricula that
the students need to meet high academic standards;
(3) forty-eight States now require State accountability
tests to determine student grade-level performance and
progress;
(4) nineteen States currently rate the performance of all
schools or identify low-performing schools through State
accountability tests;
(5) sixteen States now have the power to close, take over,
or overhaul chronically failing schools on the basis of those
tests;
(6) fourteen States provide high-performing schools with
monetary rewards on the basis of those tests;
(7) nineteen States currently require students to pass
State accountability tests to graduate from secondary school;
(8) six States currently link student promotion to results
on State accountability tests;
(9) thirty-seven States have a process in place that allows
charters to be a useful tool to bridge the gap created by
frequent school changes;
(10) excessive percentages of students are not meeting
their State standards and are failing to perform at high levels
on State accountability tests; and
(11) among mobile students, a common thread is that school
transcripts are not easily transferred and credits are not
accepted between public school districts in the United States.

SEC. 103. PURPOSE.

The purpose of this title is to provide Federal support through a
new demonstration program to States and local educational agencies, to
enable the States and local educational agencies to develop models for
high quality military charter schools that are specifically designed to
help mobile military dependent students attending public school make a
smooth transition from one school district to another, even across
State lines, and achieve a symbiotic relationship between military
installations and these school districts.

SEC. 104. DEFINITIONS.

In this title:
(1) Elementary school; secondary school; local educational
agency; state educational agency.--The terms ``elementary
school'', ``secondary school'', ``local educational agency'',
and ``State educational agency'' have the meanings given such
terms in section 9101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801).
(2) Military installation.--The term ``military
installation'' has the meaning given such term in section
2687(e)(1) of title 10, United States Code.
(3) Military dependent student.--The term ``military
dependent student'' means an elementary school or secondary
school student who has a parent who is a member of the Armed
Forces, including a member of a reserve component of the Armed
Forces, without regard to whether the member is on active duty
or full-time National Guard duty (as defined in section 101(d)
of title 10, United States Code).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Defense.
(5) Student.--The term ``student'' means an elementary
school or secondary school student.

SEC. 105. GRANTS TO STATES.

(a) Grants Authorized.--
(1) In general.--From amounts appropriated under section
110, the Secretary, in consultation with the Secretary of
Education, shall establish a demonstration program through
which the Secretary shall make grants to State educational
agencies, on a competitive basis, to enable the State
educational agencies to assist local educational agencies in
establishing and maintaining high quality military charter
schools.
(2) Distribution rule.--In awarding grants under this title
the Secretary shall ensure that such grants serve not more than
10 States and not more than 35 local educational agencies with
differing demographics.
(3) Special local rule.--
(A) Nonparticipating state.--If a State chooses not
to participate in the demonstration program assisted
under this title or does not have an application
approved under subsection (c), then the Secretary may
award a grant directly to a local educational agency in
the State to assist the local educational agency in
carrying out high quality military charter schools.
(B) Local educational agency application.--To be
eligible to receive a grant under this paragraph, a
local educational agency shall submit an application to
the Secretary at such time, in such manner, and
containing such information as the Secretary may
require.
(C) Regulations.--The Secretary shall promulgate
such regulations as the Secretary determines necessary
to carry out this paragraph.
(b) Eligibility and Selection.--
(1) Eligibility.--For a State educational agency to be
eligible to receive a grant under subsection (a), the State
served by the State educational agency shall--
(A) have in effect all standards and assessments
required under section 1111 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311);
(B) compile and annually distribute to parents a
public school report card that, at a minimum, includes
information on student and school performance for each
of the assessments required under section 1111 of the
Elementary and Secondary Education Act of 1965;
(C) require each military charter school assisted
under this title to be an independent public school;
(D) require each military charter school assisted
under this title to operate under an initial 5-year
charter granted by a State charter authority, with
specified check points and renewal, as required by
State law; and
(E) require each military charter school assisted
under this title to participate in the State's testing
program.
(2) Selection.--In selecting State educational agencies to
receive grants under this section, the Secretary shall make the
selections in a manner consistent with the purpose of this
title.
(c) Application.--
(1) In general.--To be eligible to receive a grant under
this section, a State educational agency shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
(2) Contents.--Such application shall include--
(A) information describing specific measurable
goals and objectives to be achieved in the State
through the military charter schools carried out under
this title, which may include specific measurable
annual educational goals and objectives relating to--
(i) increased student academic achievement;
(ii) decreased student dropout rates;
(iii) governance, parental involvement
plans, and disciplinary policies;
(iv) a military charter school admissions
policy that requires a minimum of 60 percent
military dependent elementary school or
secondary school students, and a maximum of 80
percent of military dependent students, except
where such percentages are impossible to
maintain because of the demographics of the
area around the military installation;
(v) liability and other insurance coverage,
business and accounting practices, and the
procedures and methods employed by the
chartering authority in monitoring the school;
and
(vi) such other factors as the State
educational agency may choose to measure; and
(B) information on criteria, established or adopted
by the State, that--
(i) the State will use to select local
educational agencies for participation in the
military charter schools carried out under this
title; and
(ii) at a minimum, will assure that grants
provided under this title are provided to--
(I) the local educational agencies
in the State that are sympathetic to,
and take actions to ease the transition
burden upon, such local educational
agencies' military dependent students;
(II) the local educational agencies
in the State that have the highest
percentage of military dependent
students impacting the local school
system or not meeting basic or minimum
required standards for State
assessments required under section 1111
of the Elementary and Secondary
Education Act of 1965; and
(III) an assortment of local
educational agencies serving urban,
suburban, and rural areas, and impacted
by a local military installation.

SEC. 106. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

(a) In General.--
(1) First year.--Except as provided in paragraph (3), for
the first year that a State educational agency receives a grant
under this title, the State educational agency shall use the
funds made available through the grant to make grants to
eligible local educational agencies in the State to pay for the
Federal share of the cost of planning for or carrying out the
military charter school programs.
(2) Succeeding years.--Except as provided in paragraph (3),
for the second and third year that a State educational agency
receives a grant under this title, the State educational agency shall
use the funds made available through the grant to make grants to
eligible local educational agencies in the State to pay for the Federal
share of the cost of carrying out the military charter school programs.
(3) Technical assistance and planning assistance.--The
State educational agency may use not more than 5 percent of the
grant funds received under this title for a fiscal year--
(A) to provide to the local educational agencies
technical assistance that is aligned with the
curriculum of the local educational agencies for the
programs;
(B) to enable the local educational agencies to
obtain such technical assistance from entities other
than the State educational agency that have
demonstrated success in using the curriculum; and
(C) to assist the local educational agencies in
evaluating activities carried out under this title.
(b) Application.--
(1) In general.--To be eligible to receive a grant under
this section, a local educational agency shall submit an
application to the State educational agency at such time, in
such manner, and containing such information as the Secretary
or the State educational agency may require.
(2) Contents.--Each such application shall include, to the
greatest extent practicable--
(A) information that--
(i) demonstrates that the local educational
agency will carry out a military charter school
program funded under this section--
(I) that provides intensive high
quality programs that are aligned with
challenging State content and student
performance standards, and that is
focused on reinforcing and boosting the
core academic skills and knowledge of
students who are struggling
academically, as determined by the
State;
(II) that focuses on accelerated
learning, rather than remediation, so
that students served through the
program will master the high level
skills and knowledge needed to meet the
highest State standards or to perform
at high levels on all State assessments
required under section 1111 of the
Elementary and Secondary Education Act
of 1965;
(III) that is based on, and
incorporates best practices relating to
the charter schools including practices
relating to the ``academic passport''
concept, which would ease transitions
for mobile students;
(IV) that has a proposed curriculum
that is directly aligned with State
student performance standards, and
which may incorporate a curriculum from
the Department of Defense Education
Activity;
(V) for which only teachers who are
certified and licensed, and are
otherwise fully qualified teachers,
provide academic instruction to
students enrolled in the program;
(VI) that offers to staff in the
program professional development and
technical assistance that are aligned
with the approved curriculum for the
program; and
(VII) that incorporates a parental
involvement component that seeks to
involve parents in the program's topics
and students' daily activities; and
(ii) may include--
(I) the proposed curriculum for the
military charter school program;
(II) the local educational agency's
plan for recruiting highly qualified
and highly effective teachers
(including encouraging members of the
Reserves and Guard who possess all
required qualifications to serve as
teachers) to participate in the
program; and
(III) a schedule for the program
that indicates that the program is of
sufficient duration and intensity to
achieve the State's goals and
objectives described in section
105(c)(2)(A);
(B) an outline indicating how the local educational
agency will utilize applicable Federal, State, local,
or public funds, other than funds made available
through the grant, to support the program;
(C) an explanation of how the local educational
agency will ensure that the instruction provided
through the program will be provided by qualified
teachers;
(D) an explanation of the types of intensive
training or professional development, aligned with the
curriculum of the program, that will be provided for
staff of the program;
(E) an explanation of the facilities to be used for
the program;
(F) an explanation regarding the duration of the
periods of time that students and teachers in the
program will have contact for instructional purposes
(such as the hours per day and days per week of that
contact, and the total length of the program);
(G) an explanation of the proposed student-to-
teacher ratio for the program, analyzed by grade level;
(H) an explanation of the grade levels that will be
served by the program;
(I) an explanation of the approximate cost per
student for the program;
(J) an explanation of the salary costs for teachers
in the program;
(K) a description of a method for evaluating the
effectiveness of the program at the local level;
(L) information describing specific measurable
goals and objectives, for each academic subject in
which the program will provide instruction, that are
consistent with, or more rigorous than, the adequate
yearly progress goals established by the State under
section 1111 of the Elementary and Secondary Education
Act of 1965;
(M) a description of how the local educational
agency will involve parents and the community in the
program in order to raise academic achievement;
(N) a description of how the local educational
agency will acquire any needed technical assistance
that is aligned with the curriculum of the local
educational agency for the program, from the State
educational agency or other entities with demonstrated
success in using the curriculum; and
(O) a statement of a clearly defined goal for
providing counseling and other transition burden relief
for military dependent children.
(c) Priority.--In making grants under this section, the State
educational agency shall give priority to local educational agencies
that demonstrate a high level of need for the military charter school
programs.
(d) Federal Share.--
(1) In general.--The Federal share of the cost described in
subsection (a) is 50 percent.
(2) Non-federal share.--The non-Federal share of the cost
may be provided in cash or in kind, fairly evaluated, including
plant, equipment, or services.

SEC. 107. SUPPLEMENT NOT SUPPLANT.

Funds appropriated pursuant to the authority of this title shall be
used to supplement and not supplant other Federal, State, local, or
private funds expended to support military charter school programs.

SEC. 108. REPORTS.

(a) State Reports.--Each State educational agency that receives a
grant under this title shall annually prepare and submit to the
Secretary a report. The report shall describe--
(1) the method the State educational agency used to make
grants to eligible local educational agencies and to provide
assistance to schools under this title;
(2) the specific measurable goals and objectives described
in section 105(c)(2)(A) for the State as a whole and the extent
to which the State met each of the goals and objectives in the
year preceding the submission of the report;
(3) the specific measurable goals and objectives described
in section 106(b)(2)(L) for each of the local educational
agencies receiving a grant under this title in the State and
the extent to which each of the agencies met each of the goals
and objectives in that preceding year;
(4) the steps that the State educational agency will take
to ensure that any such local educational agency that did not
meet the goals and objectives in that year will meet the goals
and objectives in the year following the submission of the
report, or the plan that the State educational agency has for
revoking the grant awarded to such an agency and redistributing
the grant funds to existing or new military charter school
programs;
(5) how eligible local educational agencies and schools
used funds provided by the State educational agency under this
title;
(6) the degree to which progress has been made toward
meeting the goals and objectives described in section
105(c)(2)(A); and
(7) best practices for the Secretary to share with
interested parties.
(b) Report to Congress.--The Secretary shall annually prepare and
submit to Congress a report. The report shall describe--
(1) the methods the State educational agencies used to make
grants to eligible local educational agencies and to provide
assistance to schools under this title;
(2) how eligible local educational agencies and schools
used funds provided under this title; and
(3) the degree to which progress has been made toward
meeting the goals and objectives described in sections
105(c)(2)(A) and 106(b)(2)(L).
(c) Government Accounting Office Report to Congress.--The
Comptroller General of the United States shall conduct a study
regarding the demonstration program carried out under this title and
the impact of the program on student achievement. The Comptroller
General shall prepare and submit to Congress a report containing the
results of the study.

SEC. 109. ADMINISTRATION.

(a) Federal.--The Secretary shall develop program guidelines for
and oversee the demonstration program carried out under this title.
(b) Local.--The commander of each military installation served by a
military charter school assisted under this title shall establish a
nonprofit corporation or an oversight group to provide the applicable
local educational agency with oversight and guidance regarding the day-
to-day operations of the military charter school.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this title--
(1) $5,000,000 for fiscal year 2004;
(2) $7,000,000 for fiscal year 2005;
(3) $9,000,000 for fiscal year 2006;
(4) $11,000,000 for fiscal year 2007; and
(5) $13,000,000 for fiscal year 2008.

SEC. 111. TERMINATION.

The authority provided by this title terminates 5 years after the
date of the enactment of this Act.

TITLE II--CREDIT ENHANCEMENT INITIATIVES TO PROMOTE MILITARY CHARTER
SCHOOL FACILITY ACQUISITION, CONSTRUCTION, AND RENOVATION

SEC. 201. CREDIT ENHANCEMENT INITIATIVES TO PROMOTE MILITARY CHARTER
SCHOOL FACILITY ACQUISITION, CONSTRUCTION, AND
RENOVATION.

Title V of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7201 et seq.) is amended by adding at the end the following:

``PART E--CREDIT ENHANCEMENT INITIATIVES TO PROMOTE MILITARY CHARTER
SCHOOL FACILITY ACQUISITION, CONSTRUCTION, AND RENOVATION.

``SEC. 5701. PURPOSE.

``The purpose of this part is to provide grants to eligible
entities to permit the eligible entities to establish or improve
innovative credit enhancement initiatives that assist military charter
schools to address the cost of acquiring, constructing, and renovating
facilities.

``SEC. 5702. GRANTS TO ELIGIBLE ENTITIES.

``(a) Grants for Initiatives.--
``(1) In general.--The Secretary shall use 100 percent of
the amount available to carry out this part to award grants to
eligible entities that have applications approved under this
part, to enable the eligible entities to carry out innovative
initiatives for assisting military charter schools to address
the cost of acquiring, constructing, and renovating facilities
by enhancing the availability of loans or bond financing.
``(2) Number of grants.--The Secretary shall award not less
than 4 grants under this part in each fiscal year.
``(b) Grantee Selection.--
``(1) Determination.--The Secretary shall evaluate each
application submitted, and shall determine which applications
are of sufficient quality to merit approval and which are not.
``(2) Minimum grants.--The Secretary shall award at least--
``(A) 1 grant to an eligible entity described in
section 5710(1)(A);
``(B) 1 grant to an eligible entity described in
section 5710(1)(B); and
``(C) 1 grant to an eligible entity described in
section 5710(1)(C),
if applications are submitted that permit the Secretary to
award the grants without approving an application that is not
of sufficient quality to merit approval.
``(c) Grant Characteristics.--Grants under this part shall be in
sufficient amounts, and for initiatives of sufficient scope and
quality, so as to effectively enhance credit for the financing of
military charter school acquisition, construction, or renovation.
``(d) Special Rule.--In the event the Secretary determines that the
funds available to carry out this part are insufficient to permit the
Secretary to award not less than 4 grants in accordance with
subsections (a) through (c)--
``(1) subsections (a)(2) and (b)(2) shall not apply; and
``(2) the Secretary may determine the appropriate number of
grants to be awarded in accordance with subsections (a)(1),
(b)(1), and (c).

``SEC. 5703. APPLICATIONS.

``(a) In General.--To receive a grant under this part, an eligible
entity shall submit to the Secretary an application in such form as the
Secretary may reasonably require.
``(b) Contents.--An application submitted under subsection (a)
shall contain--
``(1) a statement identifying the activities proposed to be
undertaken with funds received under this part, including how
the eligible entity will determine which military charter
schools will receive assistance, and how much and what types of
assistance the military charter schools will receive;
``(2) a description of the involvement of military charter
schools in the application's development and the design of the
proposed activities;
``(3) a description of the eligible entity's expertise in
capital market financing;
``(4) a description of how the proposed activities will--
``(A) leverage private sector financing capital, to
obtain the maximum amount of private sector financing
capital, relative to the amount of government funding
used, to assist military charter schools; and
``(B) otherwise enhance credit available to
military charter schools;
``(5) a description of how the eligible entity possesses
sufficient expertise in education to evaluate the likelihood of
success of a military charter school program for which facilities
financing is sought;
``(6) in the case of an application submitted by a State
governmental entity, a description of the actions that the
entity has taken, or will take, to ensure that military charter
schools within the State receive the funding the schools need
to have adequate facilities;
``(7) an assurance that the eligible entity will give
priority to funding initiatives that assist military charter
schools in which students have demonstrated academic excellence
or improvement during the 2 consecutive academic years
preceding submission of the application; and
``(8) such other information as the Secretary may
reasonably require.

``SEC. 5704. MILITARY CHARTER SCHOOL OBJECTIVES.

``An eligible entity receiving a grant under this part shall use
the funds received through the grant, and deposited in the reserve
account established under section 5705(a), to assist 1 or more military
charter schools to access private sector capital to accomplish 1 or
more of the following objectives:
``(1) The acquisition (by purchase, lease, donation, or
otherwise) of an interest (including an interest held by a
third party for the benefit of a military charter school) in
improved or unimproved real property that is necessary to
commence or continue the operation of a military charter
school.
``(2) The construction of new facilities, or the
renovation, repair, or alteration of existing facilities,
necessary to commence or continue the operation of a military
charter school.
``(3) The payment of startup costs, including the costs of
training teachers and purchasing materials and equipment,
including instructional materials and computers, for a military
charter school.

``SEC. 5705. RESERVE ACCOUNT.

``(a) In General.--For the purpose of assisting military charter
schools to accomplish the objectives described in section 5704, an
eligible entity receiving a grant under this part shall deposit the
funds received through the grant (other than funds used for
administrative costs in accordance with section 5706) in a reserve
account established and maintained by the eligible entity for that
purpose. The eligible entity shall make the deposit in accordance with
State and local law and may make the deposit directly or indirectly,
and alone or in collaboration with others.
``(b) Use of Funds.--Amounts deposited in such account shall be
used by the eligible entity for 1 or more of the following purposes:
``(1) Guaranteeing, insuring, and reinsuring bonds, notes,
evidences of debt, loans, and interests therein, the proceeds
of which are used for an objective described in section 5704.
``(2) Guaranteeing and insuring leases of personal and real
property for such an objective.
``(3) Facilitating financing for such an objective by
identifying potential lending sources, encouraging private
lending, and carrying out other similar activities that
directly promote lending to, or for the benefit of, military
charter schools.
``(4) Facilitating the issuance of bonds by military
charter schools, or by other public entities for the benefit of
military charter schools, for such an objective, by providing
technical, administrative, and other appropriate assistance
(including the recruitment of bond counsel, underwriters, and
potential investors and the consolidation of multiple military
charter school projects within a single bond issue).
``(c) Investment.--Funds received under this part and deposited in
the reserve account shall be invested in obligations issued or
guaranteed by the United States or a State, or in other similarly low-
risk securities.
``(d) Reinvestment of Earnings.--Any earnings on funds received
under this part shall be deposited in the reserve account established
under subsection (a) and used in accordance with subsection (b).

``SEC. 5706. LIMITATION ON ADMINISTRATIVE COSTS.

``An eligible entity that receives a grant under this part may use
not more than 0.25 percent of the funds received through the grant for
the administrative costs of carrying out the eligible entity's
responsibilities under this part.

``SEC. 5707. AUDITS AND REPORTS.

``(a) Financial Record Maintenance and Audit.--The financial
records of each eligible entity receiving a grant under this part shall
be maintained in accordance with generally accepted accounting
principles and shall be subject to an annual audit by an independent
public accountant.
``(b) Reports.--
``(1) Eligible entity annual reports.--Each eligible entity
receiving a grant under this part annually shall submit to the
Secretary a report of the eligible entity's operations and
activities under this part.
``(2) Contents.--Each such annual report shall include--
``(A) a copy of the eligible entity's most recent
financial statements, and any accompanying opinion on
such statements, prepared by the independent public
accountant auditing the financial records of the
eligible entity;
``(B) a copy of any report made on an audit of the
financial records of the eligible entity that was
conducted under subsection (a) during the reporting
period;
``(C) an evaluation by the eligible entity of the
effectiveness of the entity's use of the Federal funds
provided under this part in leveraging private funds;
``(D) a listing and description of the military
charter schools served by the eligible entity with such
Federal funds during the reporting period;
``(E) a description of the activities carried out
by the eligible entity to assist military charter
schools in meeting the objectives set forth in section
5704; and
``(F) a description of the characteristics of
lenders and other financial institutions participating
in the activities undertaken by the eligible entity
under this part during the reporting period.
``(3) Secretarial report.--The Secretary shall review the
reports submitted under paragraph (1) and shall provide a
comprehensive annual report to Congress on the activities
conducted under this part.

``SEC. 5708. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.

``No financial obligation of an eligible entity entered into
pursuant to this part (such as an obligation under a guarantee, bond,
note, evidence of debt, or loan) shall be an obligation of, or
guaranteed in any respect by, the United States. The full faith and
credit of the United States is not pledged to the payment of funds that
may be required to be paid under any obligation made by an eligible
entity pursuant to any provision of this part.

``SEC. 5709. RECOVERY OF FUNDS.

``(a) In General.--The Secretary, in accordance with chapter 37 of
title 31, United States Code, shall collect--
``(1) all of the funds in a reserve account established by
an eligible entity under section 5705(a), if the Secretary
determines, not earlier than 2 years after the date on which
the entity first received funds under this part, that the
entity has failed to make substantial progress in carrying out
the purposes described in section 5705(b); or
``(2) all or a portion of the funds in a reserve account
established by an eligible entity under section 5705(a), if the
Secretary determines that the eligible entity has permanently
ceased to use all or a portion of the funds in such account to
accomplish any purpose described in section 5705(b).
``(b) Exercise of Authority.--The Secretary shall not exercise the
authority provided in subsection (a) to collect from any eligible
entity any funds that are being properly used to achieve 1 or more of
the purposes described in section 5705(b).
``(c) Procedures.--The provisions of sections 451, 452, and 458 of
the General Education Provisions Act (20 U.S.C. 1234, 1234a, 1234g)
shall apply to the recovery of funds under subsection (a).
``(d) Construction.--This section shall not be construed to impair
or affect the authority of the Secretary to recover funds under part D
of the General Education Provisions Act (20 U.S.C. 1234 et seq.).

``SEC. 5710. DEFINITIONS.

``In this part:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a public entity, such as a military
installation as defined in section 2687(e)(1) of title
10, United States Code;
``(B) a private nonprofit entity; or
``(C) a consortium of entities described in
subparagraphs (A) and (B).
``(2) Military charter school.--The term `military charter
school' has the meaning given such term by regulations
promulgated by the Secretary of Defense.

``SEC. 5711. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this part
$10,000,000 for fiscal year 2004 and each succeeding fiscal year.''.
<all>