83_FR_61763 83 FR 61532 - Final Priorities, Requirements, Definitions, and Selection Criteria-Expanding Opportunity Through Quality Charter Schools Program; Grants to Charter Management Organizations for the Replication and Expansion of High-Quality Charter Schools

83 FR 61532 - Final Priorities, Requirements, Definitions, and Selection Criteria-Expanding Opportunity Through Quality Charter Schools Program; Grants to Charter Management Organizations for the Replication and Expansion of High-Quality Charter Schools

DEPARTMENT OF EDUCATION

Federal Register Volume 83, Issue 231 (November 30, 2018)

Page Range61532-61546
FR Document2018-26095

The Acting Assistant Deputy Secretary for Innovation and Improvement announces priorities, requirements, definitions, and selection criteria for Grants to Charter Management Organizations for the Replication and Expansion of High-Quality Charter Schools (CMO grants or CMO grant program) under the Expanding Opportunity Through Quality Charter Schools Program (CSP), Catalog of Federal Domestic Assistance (CFDA) number 84.282M. We may use one or more of these priorities, requirements, definitions, and selection criteria for competitions in fiscal year (FY) 2019 and later years. We take this action to support the replication and expansion of high-quality charter schools by charter management organizations (CMOs) throughout the Nation, particularly those that serve educationally disadvantaged students, such as students who are individuals from low-income families, students with disabilities, and English learners; and students who traditionally have been underserved by charter schools, such as Native American students and students in rural communities.

Federal Register, Volume 83 Issue 231 (Friday, November 30, 2018)
[Federal Register Volume 83, Number 231 (Friday, November 30, 2018)]
[Rules and Regulations]
[Pages 61532-61546]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26095]


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DEPARTMENT OF EDUCATION

34 CFR Chapter II

[Docket ID ED-2018-OII-0062]
RIN 1855-AA14


Final Priorities, Requirements, Definitions, and Selection 
Criteria--Expanding Opportunity Through Quality Charter Schools 
Program; Grants to Charter Management Organizations for the Replication 
and Expansion of High-Quality Charter Schools

AGENCY: Office of Innovation and Improvement, Department of Education.

ACTION: Final priorities, requirements, definitions, and selection 
criteria.

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SUMMARY: The Acting Assistant Deputy Secretary for Innovation and 
Improvement announces priorities, requirements, definitions, and 
selection criteria for Grants to Charter Management Organizations for 
the Replication and Expansion of High-Quality Charter Schools (CMO 
grants or CMO grant program) under the Expanding Opportunity Through 
Quality Charter Schools Program (CSP), Catalog of Federal Domestic 
Assistance (CFDA) number 84.282M. We may use one or more of these 
priorities, requirements, definitions, and selection criteria for 
competitions in fiscal year (FY) 2019 and later years. We take this 
action to support the replication and expansion of high-quality charter 
schools by charter management organizations (CMOs) throughout the 
Nation, particularly those that serve educationally disadvantaged 
students, such as students who are individuals from low-income 
families, students with disabilities, and English learners; and 
students who traditionally have been underserved by charter schools, 
such as Native American students and students in rural communities.

DATES: These priorities, requirements, definitions, and selection 
criteria are effective November 30, 2018.

FOR FURTHER INFORMATION CONTACT: Allison Holte, U.S. Department of 
Education, 400 Maryland Avenue SW, Room 4W243, Washington, DC 20202. 
Telephone: (202) 205-7726.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: Summary of the Major Provisions of This 
Regulatory Action: We announce these final priorities, requirements, 
definitions, and selection criteria to achieve two main goals.
    First, we seek to continue to use funds under this program to 
support high-quality applications from highly qualified applicants. To 
that end, we announce priorities, requirements, definitions, and 
selection criteria that encourage or require applicants to describe, 
for example: Past successes working with academically poor-performing 
public schools; \1\ experience operating or managing multiple charter 
schools; plans to expand their reach into new and diverse communities; 
logical connections between their proposed projects and intended 
outcomes for the students they propose to serve; and plans to evaluate 
the extent to which their proposed projects, if funded, yield intended 
outcomes.
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    \1\ Italicized terms are defined in the Final Definitions 
section of this document.
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    Second, these final priorities, requirements, definitions, and 
selection criteria are designed to increase the likelihood that CMO 
grants support expanded high-quality educational opportunities for 
educationally disadvantaged students, as well as students who 
traditionally have been underserved by charter schools, such as Native 
American students and students in rural communities. Specifically, 
among other things, the final priorities, requirements, definitions, 
and selection criteria enable the Department to give

[[Page 61533]]

priority to applications that propose to: Replicate or expand high-
quality charter schools with an intentional focus on recruiting 
students from racially and socioeconomically diverse backgrounds, and 
maintaining racially and socioeconomically diverse student bodies, 
consistent with nondiscrimination requirements contained in the U.S. 
Constitution and Federal civil rights laws; serve a meaningful 
proportion of students who are individuals from low-income families; 
and replicate or expand high-quality charter schools that serve high 
school students, students in rural communities, and Native American 
students. Further, in order to meet the final requirements announced in 
this document, CMO applicants must describe how the schools they intend 
to replicate or expand would recruit and enroll educationally 
disadvantaged students and support such students in mastering State 
academic standards.
    Costs and Benefits: The Department of Education (Department) 
believes that the benefits of this regulatory action outweigh any 
associated costs, which we believe would be minimal. While this action 
imposes cost-bearing requirements on participating CMOs, we expect that 
applicants will include requests for funds to cover such costs in their 
proposed project budgets. We believe this regulatory action strengthens 
accountability for the use of Federal funds by helping to ensure that 
the Department awards CSP grants to CMOs that are most capable of 
expanding the number of high-quality charter schools available to our 
Nation's students. Please refer to the Regulatory Impact Analysis in 
this document for a more detailed discussion of costs and benefits.
    Purpose of Program: The major purposes of the CSP are to: Expand 
opportunities for all students, particularly students facing 
educational disadvantages and students who traditionally have been 
underserved by charter schools, to attend high-quality charter schools 
and meet challenging State academic standards; provide financial 
assistance for the planning, program design, and initial implementation 
of public charter schools; increase the number of high-quality charter 
schools available to students across the United States; evaluate the 
impact of charter schools on student achievement, families, and 
communities; share best practices between charter schools and other 
public schools; encourage States to provide facilities support to 
charter schools; and support efforts to strengthen the charter school 
authorizing process. Through the CMO grant program, the Department 
provides funds to CMOs on a competitive basis to enable them to 
replicate or expand one or more high-quality charter schools. More 
specifically, grant funds may be used to expand the enrollment of one 
or more existing high-quality charter schools, or to open one or more 
high-quality charter schools by replicating an existing high-quality 
charter school model.
    Program Authority: Title IV, Part C of the Elementary and Secondary 
Education Act of 1965, as amended by the Every Student Succeeds Act 
(ESEA).
    We published a notice of proposed priorities, requirements, 
definitions, and selection criteria for this program in the Federal 
Register on July 27, 2018 (83 FR 35571) (NPP). The NPP contained 
background information and our reasons for proposing the particular 
priorities, requirements, definitions, and selection criteria.
    There are several significant differences between the NPP and this 
notice of final priorities, requirements, definitions, and selection 
criteria (NFP). First, we have revised the title and focus of Priority 
2 (which was proposed as ``School Improvement through Restart 
Efforts'') to clarify that applicants addressing the priority should be 
focused on reopening, and not restarting, academically low-performing 
public schools as charter schools. In addition, we have revised 
Priority 2 to require applicants to address each subpart in order to 
meet the priority. Second, we have revised Priority 3--High School 
Students to clarify that there is a broad range of postsecondary 
education options for which high-quality charter schools that serve 
high school students may prepare their students, including certain one-
year training programs as well as two- and four-year colleges and 
universities. We have also revised Priority 3 to specify that high 
school students include educationally disadvantaged students. In 
addition, we have revised Priority 4--Low-Income Demographic to require 
applicants receiving priority points to demonstrate that they will 
maintain a poverty threshold that is the same as, or substantially 
similar to, the level specified in the grant application for the entire 
grant period. Further, we have revised Priority 7 and related 
definitions to include students who are Native Hawaiian or Native 
American Pacific Islander, as well as students who are Indians 
(including Alaska Natives), and to clarify that applicants must 
meaningfully collaborate with community leaders. Finally, we have 
revised Selection Criterion (b)--Significance of Contribution in 
Assisting Educationally Disadvantaged Students to emphasize students 
with disabilities \2\ and English learners. We discuss these changes in 
detail in the Analysis of Comments and Changes section of this 
document.
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    \2\ For purposes of these final priorities, requirements, 
definitions, and selection criteria, ``students with disabilities'' 
or ``student with a disability'' has the same meaning as ``children 
with disabilities'' or ``child with a disability,'' respectively, as 
defined in section 8101(4) of the Elementary and Secondary Education 
Act of 1965, as amended by the Every Student Succeeds Act (ESEA). 
Under section 8101(4), ``child with a disability'' has the same 
meaning given that term in section 602 of the Individuals with 
Disabilities Education Act.
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    Public Comment: In response to our invitation in the NPP, 36 
parties submitted comments on the proposed priorities, requirements, 
definitions, and selection criteria.
    We group major issues according to subject. Generally, we do not 
address technical and other minor changes. In addition, we do not 
address comments that raised concerns not directly related to the 
proposed priorities, requirements, definitions, or selection criteria.
    Analysis of Comments and Changes: An analysis of the comments and 
changes in the priorities, requirements, definitions, and selection 
criteria since publication of the NPP follows.

General

    Comments: One commenter suggested that we include a focus on 
students from military families, noting that military families may not 
be able to afford charter school tuition.
    Discussion: First, we note that charter schools are public schools 
and, by definition, may not charge tuition (ESEA section 4310(2)). 
Nonetheless, we agree that military- and veteran-connected students 
often face unique challenges. On March 2, 2018, the Department 
published in the Federal Register (83 FR 9096) the Secretary's Final 
Supplemental Priorities and Definitions for Discretionary Grant 
Programs (Supplemental Priorities), which are available for use in all 
of the Department's discretionary grant programs, including the CMO 
grant program. In recognition of the unique challenges faced by 
military families, Priority 11 in the Supplemental Priorities focuses 
on ensuring that service members, veterans, and their families have 
access to high-quality educational options. In any fiscal year in which 
the Department awards new grants under the CMO grant program, we may 
use this supplemental priority in conjunction with the priorities, 
requirements, definitions, and selection

[[Page 61534]]

criteria in the ESEA and established in this document. Therefore, we 
decline to revise the final priorities, requirements, definitions, and 
selection criteria to add a focus on military families.
    Changes: None.
    Comments: Seven commenters urged the Department to clarify through 
these final priorities, requirements, definitions, and selection 
criteria that virtual charter schools must ensure that all students, 
particularly students with disabilities, can access virtual and online 
content. Several commenters requested that we require all virtual 
public schools, including virtual charter schools, to demonstrate 
compliance with the Web Content Accessibility Guidelines (WCAG). Other 
commenters suggested that applicants proposing to replicate or expand 
virtual charter schools be required to focus on enrollment and 
retention of, and academic outcomes for, educationally disadvantaged 
students, and make performance and compliance data available publicly 
and in a timely manner. One commenter suggested that we refrain from 
awarding grants to virtual charter schools altogether.
    Discussion: Section 4310(2)(G) of the ESEA requires charter schools 
receiving CSP funds to comply with various laws, including section 504 
of the Rehabilitation Act of 1973 (Section 504), the Americans with 
Disabilities Act of 1990 (ADA), and Part B of the Individuals with 
Disabilities Education Act (IDEA). Thus, consistent with the 
requirements in Section 504 and Title II of the ADA, virtual charter 
schools must ensure that all content is accessible to students with 
disabilities enrolled in the school as well as prospective students 
with disabilities and parents or guardians. Similarly, like other local 
educational agencies (LEAs), public charter schools that operate as 
LEAs under State law, including virtual charter school LEAs and LEAs 
that include virtual charter schools among their public schools, must 
ensure that eligible students with disabilities enrolled in these 
schools receive a free appropriate public education (FAPE) in 
accordance with the requirements of Part B of the IDEA.\3\ To meet this 
obligation, these schools must provide instructional materials to 
students with disabilities in accessible formats, consistent with the 
requirements in Section 504 and Title II of the ADA. If web-based 
instruction or online instructional platforms are used, these schools 
must ensure that the information provided through those sources is 
accessible to students with disabilities, consistent with the 
requirements in Section 504 and Title II of the ADA. Because these 
requirements are already established by Federal law, we decline to 
revise these final priorities, requirements, definitions, or selection 
criteria.
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    \3\ Students with disabilities attending public charter schools 
and their parents retain all rights under Part B of the IDEA. 
Further, charter schools that operate as LEAs under State law, as 
well as LEAs that include charter schools among their public 
schools, are responsible for ensuring that the requirements of Part 
B of the IDEA are met, unless State law assigns that responsibility 
to some other entity. See 34 CFR 300.209.
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    Further, while we understand that WCAG is designed to make web 
content accessible to a wide range of individuals with disabilities and 
that demonstrating compliance with WCAG is a widely accepted method for 
public schools, including virtual public charter schools, to meet the 
obligations discussed above, the Department does not require grantees 
to adopt a particular standard to ensure accessibility of web content 
or online platforms to meet their obligations under Section 504 or 
Title II of the ADA. Moreover, the WCAG standards are updated 
periodically.
    With respect to requiring virtual charter schools to focus on the 
enrollment and retention of, and academic outcomes for, educationally 
disadvantaged students, to receive a grant under the CMO grant program, 
an applicant must provide, among other things, student assessment 
results and attendance and retention rates for all students served by 
its schools, including educationally disadvantaged students (ESEA 
section 4305(b)(3)(A)). Further, CMO grantees must assure that each 
charter school receiving CSP funds makes annual performance and 
enrollment data publicly available (ESEA section 4303(f)(2)(G)(v)). CMO 
applicants must also provide the Department with information on 
existing significant compliance and management issues (ESEA section 
4305(b)(3)(A)(iii)). These requirements apply to all CMO grantees, 
regardless of whether they intend to replicate or expand virtual or 
brick-and-mortar charter schools.
    Finally, while we recognize that virtual charter schools can 
present unique challenges with respect to the enforcement of CSP 
requirements, the ESEA does not preclude virtual charter schools from 
receiving CSP funds. For this reason, we decline to adopt the 
commenter's suggestion that we preclude applicants that propose to 
replicate or expand virtual charter schools from applying for funds 
under this program.
    Changes: None.
    Comments: Several commenters requested that we clarify that charter 
schools are obligated to serve students with disabilities. One 
commenter stated that charter schools must adhere to the IDEA, hold 
regular individualized education plan meetings, and offer face-
inclusive policies as codified by State law. Another commenter urged 
the Department to focus specifically on the needs of students with 
Tourette's syndrome and obsessive compulsive disorder. Several 
commenters suggested that we include a priority for applicants that 
propose to replicate or expand high-quality charter schools that serve 
students with disabilities.
    Discussion: It is unclear what the commenter meant by ``face-
inclusive policies,'' but we agree that students with disabilities face 
unique educational challenges. As stated above, all eligible students 
with disabilities attending public charter schools and their parents 
retain all rights under Part B of the IDEA, including the right to 
receive FAPE. In addition, these final priorities, requirements, 
definitions, and selection criteria include a requirement that 
applicants for CMO grants describe how they intend to comply with Part 
B of the IDEA.
    Further, a number of priorities, requirements, definitions, and 
selection criteria under this program focus on educationally 
disadvantaged students, which include students who are children with 
disabilities, as defined in section 8101(4) of the ESEA. The 
Supplemental Priorities also include two priorities that focus on the 
needs of students with disabilities and could be used in future CMO 
grant competitions. These priorities are: Priority 1--Empowering 
Families and Individuals to Choose a High-quality Education that Meets 
their Unique Needs (which includes a specific option for focusing on 
students with disabilities) and Priority 5--Meeting the Unique Needs of 
Students and Children with Disabilities and/or Those with Unique Gifts 
and Talents. For these reasons, we decline to include a specific 
priority for students with disabilities or to focus this priority on 
students with a particular disability or impairment, such as Tourette's 
Syndrome or obsessive compulsive disorder.
    Changes: None.
    Comments: Several commenters urged the Department to clarify 
whether applicants could still apply for CMO grants as groups or 
consortia and, if so, what the Department's expectations are for how a 
group or consortium application should be organized.
    Discussion: Federal regulations at 34 CFR 75.127-75.129 
specifically

[[Page 61535]]

authorize applicants to apply as a group or consortium, and prescribe 
the requirements governing such applications. These final priorities, 
requirements, definitions, and selection criteria do not alter the 
requirements for group applications in 34 CFR 75.127-75.129. Therefore, 
we decline to make any changes in this area.
    Changes: None.
    Comments: One commenter suggested that the Department allow high-
performing applicants to submit streamlined applications for CMO 
grants. The commenter also suggested that we increase per-seat funding 
caps for CMOs that are expanding grades in schools because grade 
expansion can often be as costly as opening new schools. In addition, 
the commenter asked that we allow CMOs to apply for CMO grants and 
subgrants under section 4303 of the ESEA. Finally, the commenter asked 
that we issue nonregulatory guidance that would broadly interpret the 
term ``minor facilities repairs'' to ensure that charter schools can 
use CSP funds to ensure that students attend safe, clean, and well-
maintained schools.
    Discussion: Although the Department may have information regarding 
the past performance of some applicants--in particular, CMOs that have 
received CSP grants previously--we rely on the expertise of independent 
peer reviewers to evaluate the quality of applications submitted under 
a grant competition in order to ensure the fairness and integrity of 
the competition. Further, each application proposes to carry out 
different activities, and an applicant's successful implementation of 
one project does not guarantee the successful implementation of 
subsequent projects. To ensure an equal playing field, we believe it is 
critical that all applicants be required to submit the same general 
information for review. Therefore, we decline to enable high-performing 
applicants to submit streamlined applications, as suggested by the 
commenter.
    With respect to the commenter's suggestion to raise per-seat 
funding caps, no revisions to these final priorities, requirements, 
definitions, or selection criteria are necessary for the Department to 
change per-seat funding caps for CMO grants in a given year. Under 34 
CFR 75.101 and 75.104(b), the Secretary may establish maximum funding 
amounts for grants by publishing a notice in the Federal Register. When 
establishing funding limits under a CMO grant competition for a given 
fiscal year, the Department considers a number of factors, including 
the availability of funds.
    We also note that section 4303 of the ESEA authorizes the CSP 
Grants to State Entities (State Entities) program, under which the 
Department awards grants to State entities, and State entities, in 
turn, award subgrants to eligible applicants (i.e., charter school 
developers and charter schools) to enable such eligible applicants to 
open and prepare for the operation of new charter schools and 
replicated high-quality charter schools, and to expand high-quality 
charter schools. The ESEA does not explicitly prohibit an entity that 
qualifies as a CMO and an eligible applicant from applying for both a 
CMO grant under section 4305(b) and a subgrant under section 4303(b). 
In order to receive funds under both programs, however, the CMO must 
propose to carry out different activities under each application and 
demonstrate that it has the resources and capability to administer 
multiple projects effectively and efficiently.
    Finally, we agree that students learn best in safe, clean, and 
well-maintained environments. Section 4303(h)(3) of the ESEA authorizes 
the use of CSP funds to ``[carry] out necessary renovations to ensure 
that a new school building complies with applicable statutes and 
regulations, and minor facilities repairs (excluding construction)'' 
(20 U.S.C. 7221b(h)(3)).\4\ We believe this provision affords CMO 
grantees the flexibility they need to ensure that the charter schools 
they manage occupy buildings and facilities that are safe, clean, and 
well-maintained. For examples of the types of repairs that could 
qualify as ``minor facilities repairs'' under section 4305(c), please 
see the Department's nonregulatory guidance entitled, ``Charter Schools 
Program New Flexibilities under the Every Student Succeeds Act (ESSA): 
Frequently Asked Questions.'' \5\
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    \4\ Under section 4305(c) of the ESEA, ``the same terms and 
conditions'' that apply to State Entity grants under section 4303 
apply to CMO grants.
    \5\ See https://innovation.ed.gov/files/2017/12/CSP-ESSA-Flexibilities-FAQ-2017.pdf.
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    Changes: None.
    Comments: One commenter suggested that we add a priority for CMOs 
that propose to replicate or expand high-quality charter schools that 
focus on dropout recovery and academic re-entry in order to maintain 
consistency with the authorizing statute.
    Discussion: We agree that these final priorities, requirements, 
definitions, and selection criteria should align with the ESEA and 
believe that they do. Section 4305(b)(5)(D) of the ESEA authorizes the 
Secretary to give priority to applicants that ``propose to operate or 
manage high-quality charter schools that focus on dropout recovery and 
academic re-entry.'' We believe this statutory language is clear. Like 
the other statutory priorities as well as the priorities established 
under this NFP, the Secretary may choose to apply the statutory 
priority for dropout recovery and academic re-entry charter schools 
under a CMO grant competition in FY 2019 and future years. Accordingly, 
we decline to add a priority for CMOs that propose to replicate or 
expand high-quality charter schools that focus on dropout recovery and 
academic re-entry.
    Changes: None.
    Comments: Several commenters suggested that we designate specific 
priorities as absolute priorities or competitive preference priorities 
for competitions in FY 2019 and later years.
    Discussion: Federal regulations at 34 CFR 75.105 authorize the 
Department to establish annual priorities and to designate the 
priorities as invitational, competitive preference, or absolute. 
Therefore, we do not need to revise the final priorities in order to 
designate them as absolute or competitive preference priorities for 
competitions in FY 2019 and in later years. In accordance with 34 CFR 
75.105(c), we will designate specific priorities as invitational, 
absolute or competitive preference priorities for the FY 2019 
competition, and competitions in later years, through a notice inviting 
applications (NIA) in the Federal Register.
    Changes: None.

Priority 1--Promoting Diversity

    Comments: Several commenters expressed support for a priority that 
encourages diverse student populations. One commenter recommended that 
we follow a specific methodology for assessing whether applicants meet 
the priority. Several commenters questioned whether an applicant could 
meet this priority and Priority 4--Low-Income Demographic, stating that 
it may be difficult for a school focused on socioeconomic diversity to 
maintain a high percentage of students who are individuals from low-
income families. Some commenters recommended that the Department expand 
the scope of the priority to include students with disabilities, in 
addition to students from racially and socioeconomically diverse 
backgrounds. Finally, two commenters expressed concern about the 
priority's effect on communities and school districts more broadly. 
Specifically, one commenter argued that providing incentives for CMOs 
that propose to replicate or expand charter schools with diverse 
student bodies is unlikely to be

[[Page 61536]]

successful because students typically attend schools in or near their 
neighborhoods, and neighborhoods, particularly in cities, tend to be 
segregated due to decades of deeply rooted societal forces, including 
racially motivated housing practices and school assignments. Another 
commenter suggested that we revise the priority to require that any 
efforts to replicate or expand high-quality charter schools with an 
intentional focus on diversity yield ``zero net effect'' on the 
demographics of the schools from which the students are recruited.
    Discussion: We believe that students can benefit from attending 
high-quality charter schools with racially and socioeconomically 
diverse student bodies. We agree that following a rubric, or 
methodology, for determining whether an applicant meets the priority 
can be useful. We will determine an appropriate method for reviewing 
applications addressing this priority in the NIA for a given 
competition.
    We agree with the commenters that some aspects of Priority 1--
Promoting Diversity could potentially conflict with certain subparts of 
Priority 4--Low-Income Demographic and, as such, it may be challenging 
for a CMO grant application to meet both priorities. The Department has 
flexibility in choosing priorities, requirements, and selection 
criteria for its grant competitions. In FY 2019 and in future years, we 
will select a combination of priorities, requirements, and selection 
criteria that is appropriate for the CMO program and aligned with the 
Secretary's policy objectives.
    In addition, we share the commenters' concerns about ensuring that 
students with disabilities receive FAPE. However, this priority focuses 
specifically on diversity with respect to race and socioeconomic 
status. Race and socioeconomic status are commonly cited in research on 
diversity and its relationship with student academic achievement as two 
demographic factors that have a major impact.\6\ Further, we believe it 
is important that the final priority aligns with the statutory priority 
for this program in ESEA section 4305(b)(5)(A), which focuses on 
replicating or expanding high-quality charter schools with racially and 
socioeconomically diverse student bodies.
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    \6\ See, e.g.: The Century Foundation (2018). Diverse by Design 
Charter Schools. https://tcf.org/content/report/diverse-design-charter-schools/.
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    We agree with the commenter that cultivating and maintaining a 
diverse student body can be difficult and is unlikely to happen 
overnight. We also agree that high-quality charter schools can be a 
powerful option for educationally disadvantaged students but that many 
factors, such as safe and reliable transportation to and from school, 
can impact a family's realistic educational choices. This priority 
focuses on applicants that propose to replicate or expand high-quality 
charter schools with an intentional focus on racial and socioeconomic 
diversity, but it does not dictate how a CMO should approach this work. 
Promising practices for promoting diversity continue to emerge, and 
charter schools have great flexibility to choose an educational program 
that attracts students from diverse backgrounds and geographic areas 
outside of the immediate area surrounding the school. The intent of 
this priority is to encourage CMOs to replicate or expand high-quality 
charter schools with purposefully diverse student bodies through 
strategies that comply with non-discrimination requirements in the U.S. 
Constitution and in Federal civil rights laws, make sense for their 
local contexts, and are aligned with reliable research on the 
relationship between academic achievement and racial and socioeconomic 
diversity in schools.
    Finally, we agree with the commenter that CMOs should consider the 
community context when replicating or expanding high-quality charter 
schools, particularly charter schools with an intentional focus on 
racial and socioeconomically diverse student bodies. However, we do not 
think it is appropriate or practical to require that CMOs demonstrate 
to the Department a net zero effect on surrounding schools. For these 
reasons, we decline to revise the priority.
    Changes: None.
    Comment: None.
    Discussion: Upon further review, we determined that it is critical 
to remind applicants addressing Priority 1 of their nondiscrimination 
obligations under Federal law. As such, we are revising the priority to 
clarify that proposed projects must be consistent with 
nondiscrimination requirements contained in the U.S. Constitution and 
Federal civil rights laws.
    Changes: We have added the phrase ``consistent with 
nondiscrimination requirements contained in the U.S. Constitution and 
Federal civil rights laws'' to the priority.

Priority 2--Reopening Academically Poor-Performing Public Schools as 
Charter Schools

    Comments: Several commenters expressed support for this priority. 
One commenter asked that we revise the priority to encourage 
applications from CMOs that can share best practices for turning around 
low-performing traditional public schools. Two commenters requested 
that we clarify whether an applicant could address the priority by 
proposing to open a new charter school, rather than to reopen an 
academically poor-performing public school as a charter school. One 
commenter suggested that we focus the priority on reopening 
academically poor-performing middle and high schools as charter 
schools.
    Discussion: We agree with the commenters that the purpose of this 
priority--to ``reopen'' academically poor-performing charter schools--
could be clearer. An applicant proposing only to open new charter 
schools, and not ``reopen'' an academically poor-performing public 
school as a charter school, would not meet this specific priority (but 
could meet other priorities established in this NFP). Therefore, in 
order to clarify the purpose of this priority, we are replacing the 
term ``restart'' with ``reopen.'' In addition, we agree that starting a 
new school is an important endeavor, and note that opening new high-
quality charter schools is a key element of the CSP. We also believe 
that charter schools can play an important role in helping to improve 
academic outcomes for students in low-performing public schools. 
Therefore, this priority is specifically focused on CMOs that propose 
to reopen academically poor-performing public schools as charter 
schools.
    We also agree that applicants should be required to demonstrate 
past success working with low-achieving public schools in order to meet 
the priority. Accordingly, we are revising the stem of the priority to 
require applicants to address each subpart of the priority, including 
the subpart focused on demonstrating past success working with at least 
one academically poor-performing public school or schools that were 
designated as persistently lowest-achieving schools or priority schools 
under the School Improvement Grant program or ESEA flexibility. Under 
this standard, an applicant can share best practices working with 
traditional public schools as well as nontraditional public schools, 
such as public charter schools.
    Finally, we agree that a focus on middle schools and high schools 
may be appropriate in specific contexts, and have included a priority 
for applications that propose to replicate or expand high-quality 
charter schools that serve high school students. Under this priority, 
an applicant can propose to

[[Page 61537]]

reopen an academically poor-performing middle school or high school as 
a charter school as it sees fit. Therefore, we decline to revise the 
priority to focus on reopening academically poor-performing middle 
schools and high schools.
    Changes: We have revised the priority to replace the term 
``restart'' with ``reopen.'' In addition, we have revised the stem of 
the priority so that all subparts must be addressed in order for an 
applicant to meet the priority.
    Comments: Several commenters opined that there is a 
disproportionately high percentage of students with disabilities in 
turnaround schools and suggested that we require CMOs proposing to 
reopen academically poor-performing public schools as charter schools 
to address the issue.
    Discussion: A major goal of these priorities, requirements, 
definitions, and selection criteria is to expand high-quality 
educational opportunities for educationally disadvantaged students, 
including students with disabilities. CMO grantees, and the charter 
schools they manage, must comply with applicable laws, including Part B 
of the IDEA, Section 504, and Title II of the ADA. Further, to meet the 
priority, an applicant must propose a strategy that targets a student 
population that is demographically similar to that of the academically 
poor-performing public school. Therefore, we decline to revise this 
priority in the manner suggested by the commenter.
    Changes: None.
    Comments: Several commenters requested that the Department clarify 
its policy regarding admissions lotteries, including how a CMO might 
use a weighted lottery to address this priority. One commenter urged 
the Department to ensure that any grantee using a weighted lottery meet 
all relevant statutory requirements, and another commenter suggested 
that we ensure that any weighted lotteries are designed to enroll 
students with disabilities in proportion to the enrollment of such 
students in neighboring schools. Several commenters suggested that the 
Department update its nonregulatory guidance to clarify that CMOs that 
are reopening academically poor-performing public schools as charter 
schools could exempt from admissions lotteries students who are 
enrolled in the academically poor-performing public school at the time 
it is reopened.
    Discussion: Under section 4303(c)(3) of the ESEA, charter schools 
receiving funds under a CMO grant generally may use ``a weighted 
lottery to give slightly better chances for admission to all, or a 
subset of, educationally disadvantaged students,'' so long as weighted 
lotteries in favor of such students are not prohibited under State law 
and are not used to create schools that would serve a particular group 
of students exclusively.\7\ Therefore, a charter school could use a 
weighted lottery for the purpose of enrolling a proportionate number of 
students with disabilities in the charter school as compared to the 
number of such students enrolled in neighboring schools. As such, the 
Department declines to expand the statutory requirements for weighted 
lotteries as they apply to CMO grants.
---------------------------------------------------------------------------

    \7\ As stated above, under section 4305(c) of the ESEA, CMO 
grantees generally are subject to the same terms and conditions as 
State entity grantees funded under section 4303.
---------------------------------------------------------------------------

    Further, the Department's most recent update to the CSP 
nonregulatory guidance was issued in January 2014.\8\ Although that 
guidance was issued prior to enactment of the ESSA, much of it is 
applicable to the CSP lottery requirement in section 4310(2)(H) of the 
ESEA. Specifically, the January 2014 CSP Nonregulatory Guidance 
identifies several categories of students who may be exempted from a 
charter school's lottery, including students who are enrolled in a 
public school at the time it is converted into a charter school. The 
Department may update this guidance to address changes to the CSP made 
by the ESSA. In the meantime, CMO grantees may continue to follow the 
guidelines in the January 2014 CSP Nonregulatory Guidance regarding the 
categories of students who may be exempted from the lottery 
requirement.
---------------------------------------------------------------------------

    \8\ See http://www2.ed.gov/programs/charter/fy14cspnonregguidance.doc.
---------------------------------------------------------------------------

    Changes: None.
    Comments: One commenter recommended that we use Priority 2 
cautiously because available research on charter school performance is 
mixed.
    Discussion: We agree that, where possible, Federal funding should 
be used primarily to support strategies that are based on research. To 
meet this priority, applicants would need to demonstrate past success 
working with academically poor-performing public schools. In addition, 
all applicants, regardless of whether they address this priority, must 
disclose compliance issues, provide a logic model for how they will 
replicate or expand high-quality charter schools, and describe how they 
currently operate or manage high-quality charter schools. This program 
specifically supports the replication and expansion of high-quality 
charter schools, and the final priorities, requirements, definitions, 
and selection criteria are designed to differentiate between high-
quality applications that are likely to be successful and low-quality 
applications that have little chance of succeeding.
    Changes: None.
    Comment: None.
    Discussion: Upon further review, we determined that it is critical 
to remind applicants addressing Priority 2 of their nondiscrimination 
obligations under Federal law. As such, we are revising the priority to 
clarify that proposed projects must be consistent with 
nondiscrimination requirements contained in the U.S. Constitution and 
Federal civil rights laws.
    Changes: We have added the phrase ``consistent with 
nondiscrimination requirements contained in the U.S. Constitution and 
Federal civil rights laws'' to the priority.

Priority 3--High School Students

    Comments: Several commenters expressed support for the priority but 
asked that we revise it to require applicants to demonstrate that their 
proposed strategy for replicating or expanding high-quality charter 
high schools is evidence-based. One commenter also suggested that 
applicants be required to provide data on former students' 
postsecondary degree attainment and employment. Conversely, another 
commenter suggested we use this priority cautiously due to a lack of 
research on charter high schools.
    Discussion: We agree that using research to inform CMO grant 
proposals is useful in certain contexts, but we also understand that 
research in this area is limited. The Department's regulations at 34 
CFR 75.226 specifically authorize the Secretary to give priority to 
applications that are supported by ``evidence.'' The Department may 
choose to implement such a priority under the CMO grant competition in 
a given year.
    Likewise, we agree that obtaining data on students' postsecondary 
degree attainment and employment may be relevant and encourage 
applicants to submit such information, as appropriate. On the other 
hand, the Department must balance its interest in obtaining sufficient 
information to assist peer reviewers in evaluating the quality of 
applications with its interest in minimizing the burden on applicants. 
In order to meet the priority, an applicant must describe how it will 
prepare students for postsecondary education and provide support for 
its graduates who enroll in institutions of higher education (IHEs) and 
certain one-year training programs that prepare students for gainful 
employment in a recognized occupation. In addition, applicants must 
establish one or more project-specific

[[Page 61538]]

performance measures that will provide reliable information about the 
grantee's progress in meeting the objectives of the project. We believe 
these requirements will generate the necessary information to enable 
peer reviewers to evaluate the quality of applications without placing 
an undue burden on applicants. For these reasons, we decline to revise 
the priority in the manner suggested by the commenters.
    Changes: None.
    Comments: Several commenters suggested that we broaden the priority 
to focus on high schools that prepare students for paths to career and 
technical training and military service, as well as enrollment in two- 
and four-year colleges and universities. Several other commenters 
suggested that we revise the priority to encompass high schools that 
focus on transitional programming for students with disabilities.
    Discussion: We agree that sending students to two- or four-year 
colleges and universities is not the only measure of a charter high 
school's success and that, for some students, getting a job or 
attending technical school may be the best option immediately after 
high school. Accordingly, we are revising subparts (ii) and (iii) of 
the priority to encompass a broader range of postsecondary education, 
training, and career options. Specifically, for this priority, 
postsecondary education institutions include both IHEs and educational 
institutions that offer one-year training programs that prepare 
students for gainful employment in a recognized occupation (as 
described in section 101(b)(1) of the Higher Education Act of 1965, as 
amended (HEA)). For clarity, we are also defining ``IHE'' in this NFP. 
The definition we are adding to the NFP is the same as the definition 
of ``IHE'' in section 8101(29) of the ESEA.
    Further, while a career in the military can be very rewarding, the 
Department's mission is to promote student academic achievement and 
preparation for global competitiveness by fostering educational 
excellence and ensuring equal access. Therefore, we believe the primary 
goal of elementary and secondary education should be preparing students 
for success at the postsecondary education level. Nevertheless, charter 
schools have great flexibility to establish a unique mission and 
educational focus. Thus, an applicant may propose to replicate or 
expand charter schools with a wide range of educational programs, 
including a military (i.e., Reserve Officers' Training Corps (ROTC)) 
focus, so long as the charter school meets the definition of ``high-
quality charter school'' in section 4310(8) of the ESEA and the terms 
of its charter. Our ultimate focus remains on ensuring that students 
graduate from high school prepared to succeed in a wide variety of 
postsecondary education options.
    We also agree with the commenters that ensuring that students with 
disabilities (as well as other educationally disadvantaged students) 
graduate from high school with adequate preparation for postsecondary 
education options is paramount. Therefore, we are revising the priority 
to include specific references to educationally disadvantaged students 
where appropriate. Also, as stated above, eligible students with 
disabilities attending public charter schools and their parents retain 
their right to receive FAPE, and the IDEA requirements for transition 
services apply beginning with the first individualized education plan 
(IEP) to be in effect when the student turns 16, or younger if 
determined appropriate by the IEP team.\9\ Further, in order to be 
considered a high-quality charter school (a key aspect of this 
program), a charter school that serves high school students must have 
demonstrated success in increasing student academic achievement and 
graduation rates, and must provide that information disaggregated by 
subgroups of students defined in section 1111(c)(2) of the ESEA, which 
includes children with disabilities, as defined in the IDEA. Therefore, 
while we are revising the priority to include specific references to 
educationally disadvantaged students, we decline to revise the priority 
to include a specific focus on high schools that provide transitional 
programming (i.e., preparation for specific postsecondary education 
options) for students with disabilities.
---------------------------------------------------------------------------

    \9\ See 20 U.S.C. 1414(d)(1)(A)(i)(VIII) and 34 CFR 300.320(b); 
see also 20 U.S.C. 1401(34) and 34 CFR 300.43.
---------------------------------------------------------------------------

    Changes: We have revised Priority 3--High School Students to 
include specific references to educationally disadvantaged students and 
to clarify that the priority applies to high-quality charter schools 
that prepare high school students to attend IHEs, which generally 
consist of two- and four-year colleges and universities, as well as 
certain postsecondary education institutions that offer one-year 
training programs. We have also added a definition for ``IHE;'' this 
change is discussed later in this notice.

Priority 4--Low-Income Demographic

    Comments: Several commenters expressed support for the priority but 
requested that we revise it to support only CMOs that can demonstrate 
that at least 60 percent of the students across all of the charter 
schools they operate or manage are individuals from low-income 
families. One commenter stated that the vast majority of CMOs operate 
schools with at least 60 percent students who are individuals from low-
income families, so this priority would not meaningfully differentiate 
applicants. Another commenter suggested that we keep the priority's 
original structure but revise it to support CMOs that can demonstrate 
that 60 to 90 percent, instead of 40 to 60 percent, of the students 
across all of the charter schools that they operate or manage are 
individuals from low-income families.
    Discussion: We believe that this priority is essential to provide 
incentives for CMOs to support charter schools that serve student 
populations with the most need. As written, the priority affords the 
Secretary discretion to establish a poverty threshold of 40 percent, 50 
percent, or 60 percent individuals from low-income families under the 
CMO grant competition in a given fiscal year. We believe that 40 
percent is an appropriate lower bound for this priority because it is 
aligned with the poverty threshold a Title I school generally must meet 
in order to operate a schoolwide program under section 1114 of the 
ESEA. For this reason, we decline to revise the priority to establish 
only one poverty threshold of 60 percent individuals from low-income 
families.
    We also decline to revise the priority to require that CMOs operate 
or manage charter schools with 60 to 90 percent students who are 
individuals from low-income families since, as stated above, the 
priority could potentially conflict with Priority 1--Promoting 
Diversity in a single competition. We recognize that many CMOs focus 
their efforts in high-need communities, but we believe it is also 
important to support high-quality charter schools that are designed 
with an intentional focus on racial and socioeconomic diversity. In any 
given year, we may include in an NIA one or more of these final 
priorities, requirements, definitions, and selection criteria 
individually or in combination with each other; therefore, we decline 
to revise the priority as suggested by the commenters.
    Changes: None.
    Comments: One commenter stated that applicants addressing this 
priority must demonstrate past success. The commenter also suggested 
that we revise the priority to encourage applicants to provide 
transportation and meal services to students.

[[Page 61539]]

    Discussion: While applicants' past performance is not an explicit 
focus of this priority, it is embedded in the program through the 
various application priorities, requirements, definitions, and 
selection criteria, including the Quality of the Eligible Applicant 
selection criterion. We also recognize that transportation and meals 
are important issues for charter schools that serve large numbers of 
low-income students. While CSP funds may be used to provide 
transportation and ``healthy snacks'' for students in limited 
circumstances, a number of other Federal, State, and local programs 
(such as the United States Department of Agriculture's National School 
Lunch Program) provide resources specifically for those purposes. For 
this reason, we decline to revise the priority to encourage applicants 
to provide transportation and meal services to students.
    Changes: None.
    Comments: One commenter asked that we expand the priority to focus 
on other high-need populations, such as students with disabilities and 
English learners.
    Discussion: Many aspects of the CMO grant program and these 
priorities, requirements, definitions, and selection criteria focus on 
educationally disadvantaged students, which include students with 
disabilities and English learners. In addition, we are revising some 
selection factors under the Contribution in Assisting Educationally 
Disadvantaged Students criterion to include specific references to 
students with disabilities and English learners. Further, the 
Supplemental Priorities, which may be used under the CMO grant program, 
include several priorities (e.g., Priority 1(b)(ii) and (iii) and 
Priority 5) that focus on students with disabilities and English 
learners. Therefore, we decline to revise this priority to focus on 
other high-need groups, such as students with disabilities or English 
learners.
    Changes: None.
    Comments: One commenter requested that we clarify how the priority 
would work as a competitive preference priority in a competition. 
Specifically, the commenter asked us to clarify whether points would be 
awarded on a sliding scale (e.g., one point for an applicant that can 
demonstrate its schools have at least 40 percent students who are 
individuals from low-income families, two points for an applicant that 
can demonstrate its schools have at least 50 percent students who are 
individuals from low-income families, and three points for an applicant 
that can demonstrate its schools have at least 60 percent students who 
are individuals from low-income families). The commenter expressed 
concern that an applicant could receive the maximum number of priority 
points for a higher poverty threshold, but only be required to maintain 
the minimum threshold throughout its grant project. The commenter also 
expressed concern that the focus of the priority is on all schools 
operated or managed by the CMO, and not only on the charter schools to 
be replicated or expanded as part of the grant project.
    Discussion: While the priority is written in a manner that gives 
the Department flexibility to apply one, two, or all three poverty 
standards in a single competition, we do not anticipate applying more 
than one poverty standard in a single competition or assigning points 
on a sliding scale.
    We agree with the commenter that an applicant receiving points for 
this priority should be required to maintain the same, or a 
substantially similar, poverty threshold throughout the life of the 
grant. As such, we are revising the priority to clarify that an 
applicant must demonstrate not only that its current portfolio of 
schools meets the specified poverty threshold, but also that it will 
maintain the same, or a substantially similar, poverty level in the 
charter schools that it replicates or expands, as well as its other 
schools, for the entire grant period. We recognize that the percentage 
of students who are individuals from low-income families may fluctuate 
on an annual basis and, for this reason, believe the priority should 
focus on all schools operated by a CMO and not just the charter schools 
to be replicated or expanded as part of the grant project.
    Changes: We have added a requirement that applicants demonstrate 
that they will maintain for the entire grant period a poverty threshold 
across the schools they operate or manage that is the same as, or 
substantially similar to, the poverty level proposed in the grant 
application.

Priority 5--Number of Charter Schools Operated or Managed by the 
Eligible Applicant

    Comments: Several commenters suggested that we use the priority 
sparingly or remove it altogether. One commenter noted that the size of 
a CMO does not directly correlate to the quality of its schools, and 
another cited recent research suggesting that CMO size should not be 
used as a proxy for other characteristics. Other commenters expressed 
concern that the priority would dilute the quality of funded 
applications because it would create several smaller competitions for 
CMO grants. One commenter questioned the purpose of the priority, 
noting that if the intent is to support smaller, less-established CMOs, 
we may get better results using the priority for novice applicants in 
34 CFR 75.225.
    Discussion: We agree that size is not necessarily positively 
correlated with quality. We note, however, that the Department can 
employ several mechanisms, established in the ESEA and these final 
priorities, requirements, definitions, and selection criteria, to 
assess the quality of an applicant and its proposal. This priority, by 
itself, is not intended to assess quality with respect to the size of 
the applicant. Rather, this priority is designed primarily to enable 
the Secretary to give a competitive advantage to small, medium, or 
large CMOs in a given year based on the Department's policy objectives 
for that year. We understand the concern that this priority could be 
used to create smaller sub-competitions that would decrease the amount 
of available funds for other CMOs. In any year in which we announce a 
competition, we will select a combination of priorities, requirements, 
and selection criteria that meet the requirements of the CMO grant 
program and is aligned with the Secretary's policy objectives.
    Finally, we agree that 34 CFR 75.225 provides a useful tool for 
encouraging applications from novice applicants. The Department will 
continue to follow the requirements in 34 CFR 75.225 to give priority 
to novice applicants in future CMO grant competitions, as we deem 
appropriate.
    Changes: None.

Priority 6--Rural Community

    Comments: Several commenters expressed support for the priority but 
questioned whether an applicant could meet the priority by proposing to 
replicate or expand schools in a combination of rural communities and 
other communities.
    Discussion: As written, this priority gives the Department 
flexibility to establish an absolute or competitive preference priority 
for applications that propose to replicate or expand one or more high-
quality charter schools in a rural community or one or more high-
quality charter schools in a non-rural community. To meet the priority, 
an applicant would need to propose to replicate or expand at least one 
high-quality charter school in a rural community or at least one high-
quality charter school in a non-rural community, depending on the 
Department's policy objectives in a given year and which prong of the

[[Page 61540]]

priority the applicant is addressing. The priority language does not 
preclude an applicant from also proposing to replicate or expand high-
quality charter schools in other communities. We believe the priority 
is clear and, therefore, decline to revise it.
    Changes: None.
    Comments: One commenter asked that we revise the priority to focus 
on opening new charter schools in rural areas. Conversely, another 
commenter raised concerns that new charter schools in rural areas would 
drain resources from traditional public schools.
    Discussion: The purpose of the CMO grant program is to replicate or 
expand high-quality charter schools. Although replicated charter 
schools are based on educational models at existing high-quality 
charter schools, for all practical purposes, they are new charter 
schools. Further, in light of the unique challenges faced by rural 
communities, we believe prospective applicants for CMO grants should 
have the flexibility to design their projects in a way that meets the 
specific needs of the communities they plan to serve, including 
determining whether a particular rural community would be best served 
by creating a new, or replicated, charter school or by expanding an 
existing charter school.
    In addition, we recognize that replicating or expanding high-
quality charter schools will impact the surrounding community and is 
likely to have a greater impact in a rural community. The Department's 
broad focus is on expanding high-quality educational options for all 
students, including students in rural communities. Ideally, increasing 
access to high-quality educational options in rural communities will 
help improve student academic achievement not only in charter schools, 
but also in traditional public schools in the community. For these 
reasons, we decline to revise the priority.
    Changes: None.

Priority 7--Replicating or Expanding High-Quality Charter Schools To 
Serve Native American Students

    Comments: Several commenters urged the Department to add a priority 
that would support Indian students by encouraging CMOs to replicate or 
expand dual language immersion schools that focus primarily on Indian 
languages. Another commenter suggested that the Department consider a 
CMO's ability to meaningfully engage with Tribal communities when 
making CMO grant decisions.
    Discussion: As discussed in the ``Definitions'' section below, we 
have replaced the term ``students who are Indians'' with the term 
``Native American students'' in this priority. These changes allow 
applicants to receive priority points for proposing to replicate or 
expand high-quality charter schools that serve Native Hawaiian and 
Native American Pacific Islander students, as well as students who are 
Indians (including Alaska Natives). We agree with the commenters that 
cultivating strong relationships with the communities to be served is 
crucial, and that focusing on Native American language immersion is a 
promising strategy for building and maintaining those relationships and 
improving academic outcomes for Native American students. To meet this 
priority, an applicant must propose to replicate or expand a high-
quality charter school that will meet the unique needs of Native 
American students. The applicant may employ various strategies that 
reflect and preserve Native American language, culture, and history, 
including a ``dual language immersion'' program that focuses on Native 
American languages. Thus, an applicant proposing to replicate or expand 
a high-quality charter school with a dual language immersion program 
that focuses on Native American languages could meet this priority.
    In addition, while we believe that a requirement for applicants to 
demonstrate a commitment to meaningfully collaborate with Tribal 
communities would result in actual collaborations, we agree that the 
language in the priority could be clearer with respect to requiring 
applicants to meaningfully engage with Tribal communities. Therefore, 
we are revising the priority to clarify that applicants must do more 
than demonstrate a commitment to collaborate.
    Changes: We have revised the priority to replace the phrase 
``demonstrate a commitment to meaningfully collaborate'' with 
``meaningfully collaborate.''
    Comments: One commenter expressed support for the priority but 
suggested that we revise it to require applicants to submit a 
resolution or official document, rather than a letter, from surrounding 
Indian Tribes or Indian organizations that demonstrates their support 
for the proposed project. The commenter also suggested that we clarify 
our expectations for the composition of the board for a charter school 
to be replicated or expanded under the grant, and suggested that we 
require the board to have a percentage of Indian Tribe or Indian 
organization members that is comparable to the percentage of Native 
American students enrolled in the school. Finally, the commenter 
suggested that we revise the priority to require that applicants 
demonstrate a record of success in Tribal communities, particularly for 
applicants proposing to replicate or expand virtual charter schools.
    Discussion: We agree that a CMO with strong support from 
surrounding Indian Tribes or Indian organizations is more likely to 
succeed in replicating or expanding high-quality charter schools that 
serve a high proportion of Native American students. Accordingly, in 
order to meet this priority, the applicant must submit a letter of 
support from an Indian Tribe or Indian organization located in the area 
to be served by the charter school. While a resolution is not required, 
an applicant is not precluded from submitting a resolution, or other 
official document, to demonstrate support.
    Likewise, we believe that charter school developers and charter 
schools in the communities where the charter school will be located are 
best suited to assemble a school board that understands the unique 
educational needs of the students to be served. We believe that 
requiring a specific percentage or number of board members from Indian 
Tribes or Indian organizations could limit the ability of applicants to 
fully respond to the needs of the communities they propose to serve. In 
order to meet the priority, however, CMOs will need to collaborate with 
an Indian Tribe or Indian organization in the communities in which they 
propose to replicate or expand high-quality charter schools to ensure 
that school boards represent their students appropriately. While a 
school board with a percentage of members of Indian Tribes or Indian 
organizations that is comparable to the percentage of Native American 
students to be served could satisfy the substantial percentage 
requirement in this priority, there may be circumstances where a 
smaller or larger percentage of members from an Indian Tribe or Indian 
organization is appropriate. For these reasons, we decline to revise 
the priority as suggested by the commenter.
    Finally, while an applicant is not precluded from demonstrating 
past success working with Tribal communities, we decline to revise the 
priority to impose such a requirement. In order to receive CMO funds, 
all applicants must describe how they operate or manage the charter 
schools (including virtual charter schools) for which they have 
presented evidence of success (see Requirement (e)). We believe that 
Indian Tribes and Indian

[[Page 61541]]

organizations located in the community to be served by the replicated 
or expanded charter school are in the best position to determine 
whether a particular CMO applicant has the requisite knowledge and 
experience to serve Native American students effectively. Therefore, 
the requirements that an applicant obtain a letter of support from, and 
meaningfully collaborate with, a local Indian Tribe or Indian 
organization should prevent CMOs that lack the knowledge and experience 
necessary to serve Tribal communities successfully from meeting the 
priority. For these reasons, we decline to revise the priority in the 
manner suggested by the commenter.
    Changes: None.
    Comment: None.
    Discussion: Upon further review, we determined that it is critical 
to remind applicants addressing Priority 7 of their nondiscrimination 
obligations under Federal law. As such, we are revising the priority to 
clarify that proposed projects must be consistent with 
nondiscrimination requirements contained in the U.S. Constitution and 
Federal civil rights laws.
    Changes: We have added the phrase ``consistent with 
nondiscrimination requirements contained in the U.S. Constitution and 
Federal civil rights laws'' to the priority.
    Requirements
    Comments: A few commenters requested that we clarify which 
requirements we would include in future CMO grant competitions. One 
commenter also requested that we clarify which requirements represent 
existing obligations under Federal law.
    Discussion: As a general matter, the CSP statute prescribes the 
priorities, requirements, definitions, and selection criteria that 
apply to all CMO grants, regardless of the fiscal year in which the 
grant is awarded. In addition, the Department's regulations at 34 CFR 
part 75 prescribe the procedures the Department must follow when 
awarding and administering discretionary grants. The main purposes of 
these final priorities, requirements, definitions, and selection 
criteria are to clarify the Department's interpretation of certain 
statutory requirements and to establish other priorities, requirements, 
definitions, and selection criteria consistent with congressional 
intent. The Department generally has discretion to choose specific 
priorities, requirements, definitions, and selection criteria to apply 
to CMO grants in a given year based on the Department's policy 
objectives for that year. All of the requirements in this NFP are 
aligned with existing requirements for CMO grants under the ESEA and 
the Department's regulations.
    Changes: None.
    Comments: One commenter suggested that we require applicants to 
disclose whether any charter schools in their network meet the 
definition of ``academically poor-performing public school.'' The 
commenter also suggested that we differentiate between ``schools'' and 
``campuses'' because States vary in how they define the two terms.
    Discussion: We agree that knowing whether an applicant has 
``academically poor-performing public schools'' in its network could 
give the Department an indication of the overall quality of the CMO's 
charter schools. On the other hand, there are many reasons why a 
charter school may qualify as an academically poor-performing public 
school and, ultimately, the existence of one or more academically poor-
performing public schools in a CMO's network is not necessarily 
dispositive proof that the CMO is unable to administer a CMO grant 
effectively and efficiently. For example, it would not be unusual for 
an applicant that has reopened one or more low-achieving public schools 
to have an academically poor-performing public school in its network. 
Under Requirement (e), any CMO that receives a grant must provide 
evidence of success, regardless of whether the CMO has operated or 
managed academically poor-performing public schools.
    In addition, Requirement (a) provides that applicants must 
demonstrate that they operate more than one charter school. Requirement 
(a) clearly states that, for purposes of the CMO grant program, 
multiple charter schools are considered to be separate schools if each 
school meets the definition of ``charter school'' in section 4310(2) of 
the ESEA and is treated as a separate school by its authorized public 
chartering agency and the State in which the charter school is located, 
including for purposes of accountability and reporting under Title I, 
Part A of the ESEA. For these reasons, we decline to revise the 
priority as suggested by the commenter.
    Changes: None.
    Definitions
    Comments: Several commenters requested that we clarify the 
definition of ``high proportion,'' as that term is used in Priority 7. 
One commenter provided data suggesting that the definition of ``high 
proportion'' may not be ambitious enough. Conversely, one commenter 
suggested that we define ``high proportion'' as 25 percent students who 
are Indians, consistent with one of the requirements in section 6112 of 
the ESEA.
    Discussion: As discussed above, we are revising Priority 7--
Replicating or Expanding High-Quality Charter Schools to Serve Native 
American Students to replace ``students who are Indians'' with ``Native 
American students.'' As written, the priority gives applicants an 
opportunity to explain why the number of Native American students it 
proposes to serve constitutes a ``high proportion,'' based on the 
specific circumstances and context of the community in which the 
charter school is or will be located. For this reason, we decline to 
require charter schools to serve a specific percentage of Native 
American students, such as 25 percent, in order to meet the priority.
    We appreciate that some data may suggest that many charter schools 
have student bodies comprised of 75 percent or more Native American 
students. Such schools would generally meet the definition of high 
proportion established in this document. On the other hand, if an 
applicant proposes to replicate or expand a charter school that has 
less than a majority of Native American students but provides a 
compelling rationale for why the school should be considered to have a 
high proportion of Native American students, we may consider the 
applicant to have met the standard. Applicants addressing Priority 7 
must, among other things, meaningfully collaborate with Indian Tribes 
or Indian organizations and must replicate or expand high-quality 
charter schools that have an academic program purposely designed to 
meet the unique needs of Native American students. We believe that all 
of the components of Priority 7, including the definition of ``high 
proportion,'' set an appropriately rigorous bar for CMO applicants 
while also affording some flexibility. Therefore, we decline to revise 
the definition of high proportion as suggested by the commenters.
    Changes: None.
    Comments: A few commenters suggested that we revise the definition 
of ``Indian'' to include Native Hawaiians.
    Discussion: We agree that Native Hawaiian students have many of the 
same unique educational needs as students who are Indians. We also 
believe that students who are Native American Pacific Islanders have 
similar educational needs. Therefore, as stated above, we are replacing 
the terms ``Indian'' and ``Indian language,'' respectively, with 
``Native American'' and ``Native American language'' throughout the 
final priorities, requirements, definitions, and selection criteria. 
Likewise, we are removing the definition of the term ``Indian'' and

[[Page 61542]]

adding definitions for ``Native American'' and ``Native American 
language,'' based on the definitions for those terms in section 
8101(34) of the ESEA.\10\ The ESEA definition of ``Native American'' 
explicitly includes Indians (including Alaska Natives), Native 
Hawaiians, and Native American Pacific Islanders.
---------------------------------------------------------------------------

    \10\ Section 8101(34) defines ``Native American'' and ``Native 
American language'' as having the same meaning given those terms in 
section 103 of the Native American Languages Act of 1990 (NALA). 
Under section 103, ``Native American'' includes Indians (including 
Alaska Natives), Native Hawaiians, and Native American Pacific 
Islanders.
---------------------------------------------------------------------------

    Changes: We have removed the definition of ``Indian'' and added 
definitions for ``Native American'' and ``Native American language.''
    Comments: One commenter suggested that we use the term ``Tribal 
organization'' instead of ``Indian organization'' because ``Tribal 
organization'' is the term used in the ESEA.
    Discussion: While the term ``Tribal organization'' is used under 
several ESEA programs, the term is not defined in section 8101 of the 
ESEA, which provides general definitions that apply to programs 
authorized under the ESEA. The term ``Indian organization'' is used in 
the authorizing statute for the Department's Indian Education program 
(20 U.S.C. 7401-7492) and defined in the Department's regulations 
implementing the Indian Education program at 34 CFR 263.20. We think it 
is important to maintain consistency with the Indian Education program.
    Changes: None.

Selection Criteria

    Comments: One commenter suggested that we revise Selection 
Criterion (b)--Contribution in assisting educationally disadvantaged 
students to enable the Department to assess better the extent to which 
an applicant would effectively support students with disabilities. 
Specifically, the commenter suggested that we add a selection factor 
focused on attendance rates and outcomes for educationally 
disadvantaged students, including students with disabilities and 
English learners, and revise the existing selection factors to focus on 
effective instructional strategies for educationally disadvantaged 
students.
    Discussion: Two major purposes of the CSP are to expand educational 
opportunities for educationally disadvantaged students and to assist 
such students in meeting State academic content and performance 
standards. As written in the NPP, this selection criterion would enable 
the Department to evaluate the quality of an application with respect 
to achieving these two objectives. While educationally disadvantaged 
students include students with disabilities, we agree with the 
commenter that an emphasis should be placed on students with 
disabilities and English learners because enrollment of such students 
in charter schools tends to be lower than enrollment of such students 
in neighboring traditional public schools. Therefore, we are revising 
the selection criterion to emphasize students with disabilities and 
English learners.
    Changes: We have revised two selection factors in Selection 
Criterion (b) to sharpen the criterion's focus on serving educationally 
disadvantaged students. We also have revised the title of the criterion 
to clarify the focus on the significance of the contribution in 
assisting educationally disadvantaged students.

Final Priorities

Priority 1--Promoting Diversity

    Under this priority, applicants must propose to replicate or expand 
high-quality charter schools that have an intentional focus on 
recruiting students from racially and socioeconomically diverse 
backgrounds and maintaining racially and socioeconomically diverse 
student bodies in those charter schools, consistent with 
nondiscrimination requirements contained in the U.S. Constitution and 
Federal civil rights laws.

Priority 2--Reopening Academically Poor-Performing Public Schools as 
Charter Schools

    Under this priority, applicants must--
    (i) Demonstrate past success working with one or more academically 
poor-performing public schools or schools that previously were 
designated as persistently lowest-achieving schools or priority schools 
under the former School Improvement Grant program or in States that 
exercised ESEA flexibility, respectively, under the ESEA, as amended by 
the No Child Left Behind Act of 2001; and
    (ii) Propose to use grant funds under this program to reopen one or 
more academically poor-performing public schools as charter schools 
during the project period by--
    (A) Replicating one or more high-quality charter schools based on a 
successful charter school model for which the applicant has provided 
evidence of success; and
    (B) Targeting a demographically similar student population in the 
replicated charter schools as was served by the academically poor-
performing public schools, consistent with nondiscrimination 
requirements contained in the U.S. Constitution and Federal civil 
rights laws.

Priority 3--High School Students

    Under this priority, applicants must propose to--
    (i) Replicate or expand high-quality charter schools to serve high 
school students, including educationally disadvantaged students;
    (ii) Prepare students, including educationally disadvantaged 
students, in those schools for enrollment in postsecondary education 
institutions through activities such as, but not limited to, 
accelerated learning programs (including Advanced Placement and 
International Baccalaureate courses and programs, dual or concurrent 
enrollment programs, and early college high schools), college 
counseling, career and technical education programs, career counseling, 
internships, work-based learning programs (such as apprenticeships), 
assisting students in the college admissions and financial aid 
application processes, and preparing students to take standardized 
college admissions tests;
    (iii) Provide support for students, including educationally 
disadvantaged students, who graduate from those schools and enroll in 
postsecondary education institutions in persisting in, and attaining a 
degree or certificate from, such institutions, through activities such 
as, but not limited to, mentorships, ongoing assistance with the 
financial aid application process, and establishing or strengthening 
peer support systems for such students attending the same institution; 
and
    (iv) Propose one or more project-specific performance measures, 
including aligned leading indicators or other interim milestones, that 
will provide valid and reliable information about the applicant's 
progress in preparing students, including educationally disadvantaged 
students, for enrollment in postsecondary education institutions and in 
supporting those students in persisting in and attaining a degree or 
certificate from such institutions. An applicant addressing this 
priority and receiving a CMO grant must provide data that are 
responsive to the measure(s), including performance targets, in its 
annual performance reports to the Department.
    (v) For purposes of this priority, postsecondary education 
institutions include institutions of higher education, as defined in 
section 8101(29) of the Elementary and Secondary Education Act of 1965, 
as amended by the Every

[[Page 61543]]

Student Succeeds Act, and one-year training programs that meet the 
requirements of section 101(b)(1) of the HEA.

Priority 4--Low-Income Demographic

    Under this priority, applicants must demonstrate one of the 
following--
    (i) That at least 40 percent of the students across all of the 
charter schools the applicant operates or manages are individuals from 
low-income families, and that the applicant will maintain the same, or 
a substantially similar, percentage of such students across all of its 
charter schools during the grant period;
    (ii) That at least 50 percent of the students across all of the 
charter schools the applicant operates or manages are individuals from 
low-income families, and that the applicant will maintain the same, or 
a substantially similar, percentage of such students across all of its 
charter schools during the grant period; or
    (iii) That at least 60 percent of the students across all of the 
charter schools the applicant operates or manages are individuals from 
low-income families, and that the applicant will maintain the same, or 
a substantially similar, percentage of such students across all of its 
charter schools during the grant period.

Priority 5--Number of Charter Schools Operated or Managed by the 
Eligible Applicant

    Under this priority, applicants must demonstrate one of the 
following--
    (i) That they currently operate or manage two to five charter 
schools;
    (ii) That they currently operate or manage six to 20 charter 
schools; or
    (iii) That they currently operate or manage 21 or more charter 
schools.

Priority 6--Rural Community

    Under this priority, applicants must propose to replicate or expand 
one or more high-quality charter schools in--
    (i) A rural community; or
    (ii) A community that is not a rural community.

Priority 7--Replicating or Expanding High-Quality Charter Schools To 
Serve Native American Students

    Under this priority, applicants must--
    (i) Propose to replicate or expand one or more high-quality charter 
schools that--
    (A) Utilize targeted outreach and recruitment in order to serve a 
high proportion of Native American students, consistent with 
nondiscrimination requirements contained in the U.S. Constitution and 
Federal civil rights laws;
    (B) Have a mission and focus that will address the unique 
educational needs of Native American students, such as through the use 
of instructional programs and teaching methods that reflect and 
preserve Native American language, culture, and history; and
    (C) Have a governing board with a substantial percentage of members 
who are members of Indian Tribes or Indian organizations located within 
the area to be served by the replicated or expanded charter school;
    (ii) Submit a letter of support from at least one Indian Tribe or 
Indian organization located within the area to be served by the 
replicated or expanded charter school; and
    (iii) Meaningfully collaborate with the Indian Tribe(s) or Indian 
organization(s) from which the applicant has received a letter of 
support in a timely, active, and ongoing manner with respect to the 
development and implementation of the educational program at the 
charter school.

Types of Priorities

    When inviting applications for a competition using one or more 
priorities, we designate the type of each priority as absolute, 
competitive preference, or invitational through a notice in the Federal 
Register. The effect of each type of priority follows:
    Absolute priority: Under an absolute priority, we consider only 
applications that meet the priority (34 CFR 75.105(c)(3)).
    Competitive preference priority: Under a competitive preference 
priority, we give competitive preference to an application by (1) 
awarding additional points, depending on the extent to which the 
application meets the priority (34 CFR 75.105(c)(2)(i)); or (2) 
selecting an application that meets the priority over an application of 
comparable merit that does not meet the priority (34 CFR 
75.105(c)(2)(ii)).
    Invitational priority: Under an invitational priority, we are 
particularly interested in applications that meet the priority. 
However, we do not give an application that meets the priority a 
preference over other applications (34 CFR 75.105(c)(1)).

Final Requirements

    Applicants for funds under this program must meet one or more of 
the following requirements--
    (a) Demonstrate that the applicant currently operates or manages 
more than one charter school. For purposes of this program, multiple 
charter schools are considered to be separate schools if each school--
    (i) Meets each element of the definition of ``charter school'' 
under section 4310(2) of the ESEA; and
    (ii) Is treated as a separate school by its authorized public 
chartering agency and the State in which the charter school is located, 
including for purposes of accountability and reporting under title I, 
part A of the ESEA.
    (b) Provide information regarding any compliance issues, and how 
they were resolved, for any charter schools operated or managed by the 
applicant that have--
    (i) Closed;
    (ii) Had their charter(s) revoked due to problems with statutory or 
regulatory compliance, including compliance with sections 4310(2)(G) 
and (J) of the ESEA; or
    (iii) Had their affiliation with the applicant revoked or 
terminated, including through voluntary disaffiliation.
    (c) Provide a complete logic model (as defined in 34 CFR 77.1) for 
the grant project. The logic model must include the applicant's 
objectives for replicating or expanding one or more high-quality 
charter schools with funding under this program, including the number 
of high-quality charter schools the applicant proposes to replicate or 
expand.
    (d) If the applicant currently operates, or is proposing to 
replicate or expand, a single-sex charter school or coeducational 
charter school that provides a single-sex class or extracurricular 
activity (collectively referred to as a ``single-sex educational 
program''), demonstrate that the existing or proposed single-sex 
educational program is in compliance with title IX of the Education 
Amendments of 1972 (20 U.S.C. 1681, et seq.) and its implementing 
regulations, including 34 CFR 106.34.
    (e) Describe how the applicant currently operates or manages the 
high-quality charter schools for which it has presented evidence of 
success and how the proposed replicated or expanded charter schools 
will be operated or managed, including the legal relationship between 
the applicant and its schools. If a legal entity other than the 
applicant has entered or will enter into a performance contract with an 
authorized public chartering agency to operate or manage one or more of 
the applicant's schools, the applicant must also describe its 
relationship with that entity.
    (f) Describe how the applicant will solicit and consider input from 
parents and other members of the community on the implementation and 
operation of each replicated or expanded charter

[[Page 61544]]

school, including in the area of school governance.
    (g) Describe the lottery and enrollment procedures that will be 
used for each replicated or expanded charter school if more students 
apply for admission than can be accommodated, including how any 
proposed weighted lottery complies with section 4303(c)(3)(A) of the 
ESEA.
    (h) Describe how the applicant will ensure that all eligible 
children with disabilities receive a free appropriate public education 
in accordance with part B of the IDEA.
    (i) Describe how the proposed project will assist educationally 
disadvantaged students in mastering challenging State academic 
standards.
    (j) Provide a budget narrative, aligned with the activities, target 
grant project outputs, and outcomes described in the logic model, that 
outlines how grant funds will be expended to carry out planned 
activities.
    (k) Provide the applicant's most recent independently audited 
financial statements prepared in accordance with generally accepted 
accounting principles.
    (l) Describe the applicant's policies and procedures to assist 
students enrolled in a charter school that closes or loses its charter 
to attend other high-quality schools.
    (m) Provide--
    (i) A request and justification for waivers of any Federal 
statutory or regulatory provisions that the applicant believes are 
necessary for the successful operation of the charter schools to be 
replicated or expanded; and
    (ii) A description of any State or local rules, generally 
applicable to public schools, that will be waived, or otherwise not 
apply, to such schools.

Final Definitions

    Academically poor-performing public school means:
    (a) A school identified by the State for comprehensive support and 
improvement under section 1111(c)(4)(D)(i) of the ESEA; or
    (b) A public school otherwise identified by the State or, in the 
case of a charter school, its authorized public chartering agency, as 
similarly academically poor-performing.
    Educationally disadvantaged student means a student in one or more 
of the categories described in section 1115(c)(2) of the ESEA, which 
include children who are economically disadvantaged, students who are 
children with disabilities, migrant students, English learners, 
neglected or delinquent students, homeless students, and students who 
are in foster care.
    High proportion, when used to refer to Native American students, 
means a fact-specific, case-by-case determination based upon the unique 
circumstances of a particular charter school or proposed charter 
school. The Secretary considers ``high proportion'' to include a 
majority of Native American students. In addition, the Secretary may 
determine that less than a majority of Native American students 
constitutes a ``high proportion'' based on the unique circumstances of 
a particular charter school or proposed charter school, as described in 
the application for funds.
    Indian organization means an organization that--
    (1) Is legally established--
    (i) By Tribal or inter-Tribal charter or in accordance with State 
or Tribal law; and
    (ii) With appropriate constitution, by-laws, or articles of 
incorporation;
    (2) Includes in its purposes the promotion of the education of 
Indians;
    (3) Is controlled by a governing board, the majority of which is 
Indian;
    (4) If located on an Indian reservation, operates with the sanction 
or by charter of the governing body of that reservation;
    (5) Is neither an organization or subdivision of, nor under the 
direct control of, any institution of higher education; and
    (6) Is not an agency of State or local government.
    Indian Tribe means a federally-recognized or a State-recognized 
Tribe.
    Individual from a low-income family means an individual who is 
determined by a State educational agency or local educational agency to 
be a child from a low-income family on the basis of (a) data used by 
the Secretary to determine allocations under section 1124 of the ESEA, 
(b) data on children eligible for free or reduced-price lunches under 
the Richard B. Russell National School Lunch Act, (c) data on children 
in families receiving assistance under part A of title IV of the Social 
Security Act, (d) data on children eligible to receive medical 
assistance under the Medicaid program under title XIX of the Social 
Security Act, or (e) an alternate method that combines or extrapolates 
from the data in items (a) through (d) of this definition.
    Institution of higher education means an educational institution in 
any State that--
    (i) Admits as regular students only persons having a certificate of 
graduation from a school providing secondary education, or the 
recognized equivalent of such a certificate, or persons who meet the 
requirements of section 484(d)of the HEA;
    (ii) Is legally authorized within such State to provide a program 
of education beyond secondary education;
    (iii) Provides an educational program for which the institution 
awards a bachelor's degree or provides not less than a 2-year program 
that is acceptable for full credit toward such a degree, or awards a 
degree that is acceptable for admission to a graduate or professional 
degree program, subject to review and approval by the Secretary;
    (iv) Is a public or other nonprofit institution; and
    (v) Is accredited by a nationally recognized accrediting agency or 
association, or if not so accredited, is an institution that has been 
granted preaccreditation status by such an agency or association that 
has been recognized by the Secretary for the granting of 
preaccreditation status, and the Secretary has determined that there is 
satisfactory assurance that the institution will meet the accreditation 
standards of such an agency or association within a reasonable time.
    Native American means an Indian (including an Alaska Native), 
Native Hawaiian, or Native American Pacific Islander.
    Native American language means the historical, traditional 
languages spoken by Native Americans.
    Rural community means a community that is served by a local 
educational agency that is eligible to apply for funds under the Small 
Rural School Achievement (SRSA) program or the Rural and Low-Income 
School (RLIS) program authorized under title V, part B of the ESEA. 
Applicants may determine whether a particular local educational agency 
is eligible for these programs by referring to information on the 
following Department websites. For the SRSA program: www2.ed.gov/programs/reapsrsa/eligible16/index.html. For the RLIS program: 
www2.ed.gov/programs/reaprlisp/eligibility.html.

Final Selection Criteria

    (a) Quality of the eligible applicant. In determining the quality 
of the eligible applicant, the Secretary considers one or more of the 
following factors:
    (i) The extent to which the academic achievement results (including 
annual student performance on statewide assessments, annual student 
attendance and retention rates, and, where applicable and available, 
student academic growth, high school graduation rates, college 
attendance rates, and college persistence rates) for educationally 
disadvantaged students served by the charter schools operated or 
managed by the applicant have exceeded the average academic

[[Page 61545]]

achievement results for such students served by other public schools in 
the State.
    (ii) The extent to which one or more charter schools operated or 
managed by the applicant have closed; have had a charter revoked due to 
noncompliance with statutory or regulatory requirements; or have had 
their affiliation with the applicant revoked or terminated, including 
through voluntary disaffiliation.
    (iii) The extent to which one or more charter schools operated or 
managed by the applicant have had any significant issues in the area of 
financial or operational management or student safety, or have 
otherwise experienced significant problems with statutory or regulatory 
compliance that could lead to revocation of the school's charter.
    (b) Significance of contribution in assisting educationally 
disadvantaged students.
    In determining the significance of the contribution the proposed 
project will make in expanding educational opportunities for 
educationally disadvantaged students and enabling those students to 
meet challenging State academic standards, the Secretary considers one 
or more of the following factors:
    (i) The extent to which charter schools currently operated or 
managed by the applicant serve educationally disadvantaged students, 
particularly students with disabilities and English learners, at rates 
comparable to surrounding public schools or, in the case of virtual 
charter schools, at rates comparable to public schools in the State.
    (ii) The quality of the plan to ensure that the charter schools the 
applicant proposes to replicate or expand will recruit, enroll, and 
effectively serve educationally disadvantaged students, particularly 
students with disabilities and English learners.
    (c) Quality of the evaluation plan for the proposed project.
    In determining the quality of the evaluation plan for the proposed 
project, the Secretary considers the extent to which the methods of 
evaluation include the use of objective performance measures that are 
clearly related to the intended outcomes of the proposed project, as 
described in the applicant's logic model (as defined in 34 CFR 77.1), 
and that will produce quantitative and qualitative data by the end of 
the grant period.
    (d) Quality of the management plan.
    In determining the quality of the applicant's management plan, the 
Secretary considers the ability of the applicant to sustain the 
operation of the replicated or expanded charter schools after the grant 
has ended, as demonstrated by the multi-year financial and operating 
model required under section 4305(b)(3)(B)(iii) of the ESEA.
    This document does not preclude us from proposing additional 
priorities, requirements, definitions, or selection criteria, subject 
to meeting applicable rulemaking requirements.
    Note: This document does not solicit applications. In any year in 
which we choose to use one or more of these priorities, requirements, 
definitions, and selection criteria, we invite applications through a 
notice in the Federal Register.

Executive Orders 12866, 13563, and 13771

Regulatory Impact Analysis

    Under Executive Order 12866, it must be determined whether this 
regulatory action is ``significant'' and, therefore, subject to the 
requirements of the Executive order and subject to review by the Office 
of Management and Budget (OMB). Section 3(f) of Executive Order 12866 
defines a ``significant regulatory action'' as an action likely to 
result in a rule that may--
    (1) Have an annual effect on the economy of $100 million or more, 
or adversely affect a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local, or 
Tribal governments or communities in a material way (also referred to 
as an ``economically significant'' rule);
    (2) Create serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impacts of entitlement grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles stated in the 
Executive order.
    This final regulatory action is not a significant regulatory action 
subject to review by OMB under section 3(f) of Executive Order 12866.
    Under Executive Order 13771, for each new rule that the Department 
proposes for notice and comment or otherwise promulgates that is a 
significant regulatory action under Executive Order 12866, and that 
imposes total costs greater than zero, it must identify two 
deregulatory actions. For Fiscal Year 2019, any new incremental costs 
associated with a new regulation must be fully offset by the 
elimination of existing costs through deregulatory actions. Because the 
proposed regulatory action is not significant, the requirements of 
Executive Order 13771 do not apply.
    We have also reviewed this final regulatory action under Executive 
Order 13563, which supplements and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established in 
Executive Order 12866. To the extent permitted by law, Executive Order 
13563 requires that an agency--
    (1) Propose or adopt regulations only upon a reasoned determination 
that their benefits justify their costs (recognizing that some benefits 
and costs are difficult to quantify);
    (2) Tailor its regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives and taking into 
account--among other things and to the extent practicable--the costs of 
cumulative regulations;
    (3) In choosing among alternative regulatory approaches, select 
those approaches that maximize net benefits (including potential 
economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity);
    (4) To the extent feasible, specify performance objectives, rather 
than the behavior or manner of compliance a regulated entity must 
adopt; and
    (5) Identify and assess available alternatives to direct 
regulation, including economic incentives--such as user fees or 
marketable permits--to encourage the desired behavior, or provide 
information that enables the public to make choices.
    Executive Order 13563 also requires an agency ``to use the best 
available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible.'' The Office of 
Information and Regulatory Affairs of OMB has emphasized that these 
techniques may include ``identifying changing future compliance costs 
that might result from technological innovation or anticipated 
behavioral changes.''
    We are issuing these final priorities, requirements, definitions, 
and selection criteria only on a reasoned determination that their 
benefits justify their costs. In choosing among alternative regulatory 
approaches, we selected those approaches that maximize net benefits. 
Based on the analysis that follows, the Department believes that this 
regulatory action is consistent with the principles in Executive Order 
13563.
    We also have determined that this regulatory action does not unduly 
interfere with State, local, and Tribal

[[Page 61546]]

governments in the exercise of their governmental functions.
    In accordance with these Executive orders, the Department has 
assessed the potential costs and benefits, both quantitative and 
qualitative, of this regulatory action. The potential costs are those 
resulting from statutory requirements and those we have determined as 
necessary for administering the Department's programs and activities.

Discussion of Potential Costs and Benefits

    The Department believes that this regulatory action does not impose 
significant costs on eligible entities, whose participation in this 
program is voluntary. While this action does impose some requirements 
on participating CMOs that are cost-bearing, the Department expects 
that applicants for this program will include in their proposed budgets 
a request for funds to support compliance with such cost-bearing 
requirements. Therefore, costs associated with meeting these 
requirements are, in the Department's estimation, minimal.
    This regulatory action strengthens accountability for the use of 
Federal funds by helping to ensure that the Department selects for CSP 
grants the CMOs that are most capable of expanding the number of high-
quality charter schools available to our Nation's students, consistent 
with a major purpose of the CSP as described in section 4301(3) of the 
ESEA. The Department believes that these benefits to the Federal 
government and to State educational agencies outweigh the costs 
associated with this action.

Regulatory Alternatives Considered

    The Department believes that the priorities, requirements, 
definitions, and selection criteria are needed to administer the 
program effectively. As an alternative to the selection criteria 
announced in this document, the Department could choose from among the 
selection criteria authorized for CSP grants to CMOs in section 4305(b) 
of the ESEA (20 U.S.C. 7221c) and the general selection criteria in 34 
CFR 75.210. We do not believe that these criteria provide a sufficient 
basis on which to evaluate the quality of applications. In particular, 
the criteria do not sufficiently enable the Department to assess an 
applicant's past performance with respect to the operation of high-
quality charter schools or with respect to compliance issues that the 
applicant has encountered.
    We note that several of the final priorities, requirements, 
definitions, and selection criteria are based on priorities, 
requirements, definitions, selection criteria, and other provisions in 
the authorizing statute for this program.

Paperwork Reduction Act of 1995

    The final priorities, requirements, and selection criteria contain 
information collection requirements that are approved by OMB under OMB 
control number 1894-0006; the final priorities, requirements, and 
selection criteria do not affect the currently approved data 
collection.
    Intergovernmental Review: This program is subject to Executive 
Order 12372 and the regulations in 34 CFR part 79. One of the 
objectives of the Executive order is to foster an intergovernmental 
partnership and a strengthened federalism. The Executive order relies 
on processes developed by State and local governments for coordination 
and review of proposed Federal financial assistance.
    This document provides early notification of our specific plans and 
actions for this program.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the program contact person 
listed under FOR FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations via the Federal Digital System at: www.thefederalregister.org/fdsys. At this site you can view this document, as well as all other 
documents of the Department published in the Federal Register, in text 
or Portable Document Format (PDF). To use PDF you must have Adobe 
Acrobat Reader, which is available free at the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

    Dated: November 27, 2018.
James C. Blew,
Acting Assistant Deputy Secretary for Innovation and Improvement.
[FR Doc. 2018-26095 Filed 11-29-18; 8:45 am]
 BILLING CODE 4000-01-P



                                           61532            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations

                                             Dated: November 27, 2018.                             authorized by the Captain of the Port                 action to support the replication and
                                           Hal R. Pitts,                                           Marine Safety Unit Pittsburgh (COTP) or               expansion of high-quality charter
                                           Bridge Program Manager, Fifth Coast Guard               a designated representative. Persons or               schools by charter management
                                           District.                                               vessels desiring to enter into or pass                organizations (CMOs) throughout the
                                           [FR Doc. 2018–26051 Filed 11–29–18; 8:45 am]            through the area must request                         Nation, particularly those that serve
                                           BILLING CODE 9110–04–P                                  permission from the COTP or a                         educationally disadvantaged students,
                                                                                                   designated representative. They can be                such as students who are individuals
                                                                                                   reached on VHF FM channel 16. If                      from low-income families, students with
                                           DEPARTMENT OF HOMELAND                                  permission is granted, all persons and                disabilities, and English learners; and
                                           SECURITY                                                vessel shall comply with the                          students who traditionally have been
                                                                                                   instructions of the COTP or designated                underserved by charter schools, such as
                                           Coast Guard                                             representative.                                       Native American students and students
                                                                                                     In addition to this notice of                       in rural communities.
                                           33 CFR Part 165                                         enforcement in the Federal Register, the              DATES: These priorities, requirements,
                                           [Docket No. USCG–2018–1041]                             COTP or a designated representative                   definitions, and selection criteria are
                                                                                                   will inform the public through                        effective November 30, 2018.
                                           Recurring Safety Zone; Steelers                         Broadcast Notices to Mariners (BNMs),                 FOR FURTHER INFORMATION CONTACT:
                                           Fireworks, Pittsburgh, PA                               Local Notices to Mariners (LNMs),                     Allison Holte, U.S. Department of
                                                                                                   Marine Safety Information Bulletins                   Education, 400 Maryland Avenue SW,
                                           AGENCY:  Coast Guard, DHS.                              (MSIBs), and/or through other means of                Room 4W243, Washington, DC 20202.
                                           ACTION: Notice of enforcement of                        public notice as appropriate at least 24              Telephone: (202) 205–7726.
                                           regulation.                                             hours in advance of each enforcement.                    If you use a telecommunications
                                           SUMMARY:   The Coast Guard will enforce                   Dated: November 26, 2018.                           device for the deaf (TDD) or a text
                                           the safety zone for the Pittsburgh                      F.M. Smith,                                           telephone (TTY), call the Federal Relay
                                           Steelers Fireworks to provide for the                   Commander, U.S. Coast Guard, Acting                   Service (FRS), toll free, at 1–800–877–
                                           safety of persons, vessels, and the                     Captain of the Port Marine Safety Unit                8339.
                                           marine environment on the navigable                     Pittsburgh.                                           SUPPLEMENTARY INFORMATION: Summary
                                           waters of the Allegheny, Ohio, and                      [FR Doc. 2018–26050 Filed 11–29–18; 8:45 am]          of the Major Provisions of This
                                           Monongahela Rivers during this event.                   BILLING CODE 9110–04–P                                Regulatory Action: We announce these
                                           Our regulation for marine events within                                                                       final priorities, requirements,
                                           the Eighth Coast Guard District                                                                               definitions, and selection criteria to
                                           identifies the regulated area for this                  DEPARTMENT OF EDUCATION                               achieve two main goals.
                                           event in Pittsburgh, PA. During the                                                                              First, we seek to continue to use funds
                                           enforcement periods, entry into this                    34 CFR Chapter II                                     under this program to support high-
                                           zone is prohibited unless authorized by                 [Docket ID ED–2018–OII–0062]                          quality applications from highly
                                           the Captain of the Port Marine Safety                                                                         qualified applicants. To that end, we
                                           Unit Pittsburgh or a designated                         RIN 1855–AA14                                         announce priorities, requirements,
                                           representative.                                         Final Priorities, Requirements,                       definitions, and selection criteria that
                                           DATES:  The regulations in 33 CFR                       Definitions, and Selection Criteria—                  encourage or require applicants to
                                           165.801, Table 1, Line 57 will be                       Expanding Opportunity Through                         describe, for example: Past successes
                                           enforced from 7 p.m. through 11 p.m. on                 Quality Charter Schools Program;                      working with academically poor-
                                           December 2, 2018.                                       Grants to Charter Management                          performing public schools; 1 experience
                                                                                                   Organizations for the Replication and                 operating or managing multiple charter
                                           FOR FURTHER INFORMATION CONTACT: If
                                                                                                   Expansion of High-Quality Charter                     schools; plans to expand their reach into
                                           you have questions about this notice of
                                                                                                   Schools                                               new and diverse communities; logical
                                           enforcement, call or email Petty Officer
                                                                                                                                                         connections between their proposed
                                           Jennifer Haggins, Marine Safety Unit                    AGENCY:  Office of Innovation and                     projects and intended outcomes for the
                                           Pittsburgh, U.S. Coast Guard; telephone                 Improvement, Department of Education.                 students they propose to serve; and
                                           412–221–0807, email
                                                                                                   ACTION: Final priorities, requirements,               plans to evaluate the extent to which
                                           Jennifer.L.Haggins@uscg.mil.
                                                                                                   definitions, and selection criteria.                  their proposed projects, if funded, yield
                                           SUPPLEMENTARY INFORMATION: The Coast                                                                          intended outcomes.
                                           Guard will enforce a safety zone for the                SUMMARY:    The Acting Assistant Deputy                  Second, these final priorities,
                                           Steelers fireworks listed in 33 CFR                     Secretary for Innovation and                          requirements, definitions, and selection
                                           165.801, Table 1, Line 57 from 7 p.m.                   Improvement announces priorities,                     criteria are designed to increase the
                                           through 11 p.m. on December 2, 2018.                    requirements, definitions, and selection              likelihood that CMO grants support
                                           This action is being taken to provide for               criteria for Grants to Charter                        expanded high-quality educational
                                           the safety of persons, vessels, and the                 Management Organizations for the                      opportunities for educationally
                                           marine environment on the navigable                     Replication and Expansion of High-                    disadvantaged students, as well as
                                           waters of the Allegheny, Ohio, and                      Quality Charter Schools (CMO grants or                students who traditionally have been
                                           Monongahela Rivers during this event.                   CMO grant program) under the                          underserved by charter schools, such as
                                           Our regulation for marine events within                 Expanding Opportunity Through                         Native American students and students
                                           the Eighth Coast Guard District,                        Quality Charter Schools Program (CSP),
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                                                                                                                                                         in rural communities. Specifically,
                                           § 165.801, specifies the location of the                Catalog of Federal Domestic Assistance                among other things, the final priorities,
                                           safety zone for the Steelers fireworks,                 (CFDA) number 84.282M. We may use                     requirements, definitions, and selection
                                           which covers a less than one-mile                       one or more of these priorities,                      criteria enable the Department to give
                                           stretch of the Ohio, Allegheny, and                     requirements, definitions, and selection
                                           Monongahela Rivers. Entry into the                      criteria for competitions in fiscal year                1 Italicized terms are defined in the Final

                                           safety zone is prohibited unless                        (FY) 2019 and later years. We take this               Definitions section of this document.



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                                                            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations                                                 61533

                                           priority to applications that propose to:               authorizing process. Through the CMO                  Significance of Contribution in Assisting
                                           Replicate or expand high-quality charter                grant program, the Department provides                Educationally Disadvantaged Students
                                           schools with an intentional focus on                    funds to CMOs on a competitive basis                  to emphasize students with disabilities 2
                                           recruiting students from racially and                   to enable them to replicate or expand                 and English learners. We discuss these
                                           socioeconomically diverse backgrounds,                  one or more high-quality charter                      changes in detail in the Analysis of
                                           and maintaining racially and                            schools. More specifically, grant funds               Comments and Changes section of this
                                           socioeconomically diverse student                       may be used to expand the enrollment                  document.
                                           bodies, consistent with                                 of one or more existing high-quality                    Public Comment: In response to our
                                           nondiscrimination requirements                          charter schools, or to open one or more               invitation in the NPP, 36 parties
                                           contained in the U.S. Constitution and                  high-quality charter schools by                       submitted comments on the proposed
                                           Federal civil rights laws; serve a                      replicating an existing high-quality                  priorities, requirements, definitions, and
                                           meaningful proportion of students who                   charter school model.                                 selection criteria.
                                           are individuals from low-income                            Program Authority: Title IV, Part C of               We group major issues according to
                                           families; and replicate or expand high-                 the Elementary and Secondary                          subject. Generally, we do not address
                                           quality charter schools that serve high                 Education Act of 1965, as amended by                  technical and other minor changes. In
                                           school students, students in rural                      the Every Student Succeeds Act (ESEA).                addition, we do not address comments
                                           communities, and Native American                           We published a notice of proposed                  that raised concerns not directly related
                                           students. Further, in order to meet the                 priorities, requirements, definitions, and            to the proposed priorities, requirements,
                                           final requirements announced in this                    selection criteria for this program in the            definitions, or selection criteria.
                                           document, CMO applicants must                           Federal Register on July 27, 2018 (83 FR                Analysis of Comments and Changes:
                                           describe how the schools they intend to                 35571) (NPP). The NPP contained                       An analysis of the comments and
                                           replicate or expand would recruit and                   background information and our reasons                changes in the priorities, requirements,
                                           enroll educationally disadvantaged                      for proposing the particular priorities,              definitions, and selection criteria since
                                           students and support such students in                   requirements, definitions, and selection              publication of the NPP follows.
                                           mastering State academic standards.                     criteria.
                                                                                                      There are several significant                      General
                                              Costs and Benefits: The Department of
                                           Education (Department) believes that                    differences between the NPP and this                     Comments: One commenter suggested
                                           the benefits of this regulatory action                  notice of final priorities, requirements,             that we include a focus on students
                                           outweigh any associated costs, which                    definitions, and selection criteria (NFP).            from military families, noting that
                                           we believe would be minimal. While                      First, we have revised the title and focus            military families may not be able to
                                           this action imposes cost-bearing                        of Priority 2 (which was proposed as                  afford charter school tuition.
                                           requirements on participating CMOs, we                  ‘‘School Improvement through Restart                     Discussion: First, we note that charter
                                           expect that applicants will include                     Efforts’’) to clarify that applicants                 schools are public schools and, by
                                           requests for funds to cover such costs in               addressing the priority should be                     definition, may not charge tuition
                                           their proposed project budgets. We                      focused on reopening, and not                         (ESEA section 4310(2)). Nonetheless, we
                                           believe this regulatory action                          restarting, academically low-performing               agree that military- and veteran-
                                           strengthens accountability for the use of               public schools as charter schools. In                 connected students often face unique
                                           Federal funds by helping to ensure that                 addition, we have revised Priority 2 to               challenges. On March 2, 2018, the
                                           the Department awards CSP grants to                     require applicants to address each                    Department published in the Federal
                                           CMOs that are most capable of                           subpart in order to meet the priority.                Register (83 FR 9096) the Secretary’s
                                           expanding the number of high-quality                    Second, we have revised Priority 3—                   Final Supplemental Priorities and
                                           charter schools available to our Nation’s               High School Students to clarify that                  Definitions for Discretionary Grant
                                           students. Please refer to the Regulatory                there is a broad range of postsecondary               Programs (Supplemental Priorities),
                                           Impact Analysis in this document for a                  education options for which high-                     which are available for use in all of the
                                           more detailed discussion of costs and                   quality charter schools that serve high               Department’s discretionary grant
                                           benefits.                                               school students may prepare their                     programs, including the CMO grant
                                              Purpose of Program: The major                        students, including certain one-year                  program. In recognition of the unique
                                           purposes of the CSP are to: Expand                      training programs as well as two- and                 challenges faced by military families,
                                           opportunities for all students,                         four-year colleges and universities. We               Priority 11 in the Supplemental
                                           particularly students facing educational                have also revised Priority 3 to specify               Priorities focuses on ensuring that
                                           disadvantages and students who                          that high school students include                     service members, veterans, and their
                                           traditionally have been underserved by                  educationally disadvantaged students.                 families have access to high-quality
                                           charter schools, to attend high-quality                 In addition, we have revised Priority 4—              educational options. In any fiscal year
                                           charter schools and meet challenging                    Low-Income Demographic to require                     in which the Department awards new
                                           State academic standards; provide                       applicants receiving priority points to               grants under the CMO grant program,
                                           financial assistance for the planning,                  demonstrate that they will maintain a                 we may use this supplemental priority
                                           program design, and initial                             poverty threshold that is the same as, or             in conjunction with the priorities,
                                           implementation of public charter                        substantially similar to, the level                   requirements, definitions, and selection
                                           schools; increase the number of high-                   specified in the grant application for the
                                           quality charter schools available to                    entire grant period. Further, we have                    2 For purposes of these final priorities,

                                           students across the United States;                      revised Priority 7 and related definitions            requirements, definitions, and selection criteria,
                                           evaluate the impact of charter schools                  to include students who are Native                    ‘‘students with disabilities’’ or ‘‘student with a
                                                                                                                                                         disability’’ has the same meaning as ‘‘children with
                                           on student achievement, families, and                   Hawaiian or Native American Pacific
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                                                                                                                                                         disabilities’’ or ‘‘child with a disability,’’
                                           communities; share best practices                       Islander, as well as students who are                 respectively, as defined in section 8101(4) of the
                                           between charter schools and other                       Indians (including Alaska Natives), and               Elementary and Secondary Education Act of 1965,
                                           public schools; encourage States to                     to clarify that applicants must                       as amended by the Every Student Succeeds Act
                                                                                                                                                         (ESEA). Under section 8101(4), ‘‘child with a
                                           provide facilities support to charter                   meaningfully collaborate with                         disability’’ has the same meaning given that term
                                           schools; and support efforts to                         community leaders. Finally, we have                   in section 602 of the Individuals with Disabilities
                                           strengthen the charter school                           revised Selection Criterion (b)—                      Education Act.



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                                           61534            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations

                                           criteria in the ESEA and established in                 consistent with the requirements in                      Comments: Several commenters
                                           this document. Therefore, we decline to                 Section 504 and Title II of the ADA. If               requested that we clarify that charter
                                           revise the final priorities, requirements,              web-based instruction or online                       schools are obligated to serve students
                                           definitions, and selection criteria to add              instructional platforms are used, these               with disabilities. One commenter stated
                                           a focus on military families.                           schools must ensure that the                          that charter schools must adhere to the
                                              Changes: None.                                       information provided through those                    IDEA, hold regular individualized
                                              Comments: Seven commenters urged                     sources is accessible to students with                education plan meetings, and offer face-
                                           the Department to clarify through these                 disabilities, consistent with the                     inclusive policies as codified by State
                                           final priorities, requirements,                         requirements in Section 504 and Title II              law. Another commenter urged the
                                           definitions, and selection criteria that                of the ADA. Because these requirements                Department to focus specifically on the
                                           virtual charter schools must ensure that                are already established by Federal law,               needs of students with Tourette’s
                                           all students, particularly students with                we decline to revise these final                      syndrome and obsessive compulsive
                                           disabilities, can access virtual and                    priorities, requirements, definitions, or             disorder. Several commenters suggested
                                           online content. Several commenters                      selection criteria.                                   that we include a priority for applicants
                                           requested that we require all virtual                      Further, while we understand that                  that propose to replicate or expand
                                           public schools, including virtual charter               WCAG is designed to make web content                  high-quality charter schools that serve
                                           schools, to demonstrate compliance                      accessible to a wide range of individuals             students with disabilities.
                                           with the Web Content Accessibility                      with disabilities and that demonstrating                 Discussion: It is unclear what the
                                           Guidelines (WCAG). Other commenters                     compliance with WCAG is a widely                      commenter meant by ‘‘face-inclusive
                                           suggested that applicants proposing to                  accepted method for public schools,                   policies,’’ but we agree that students
                                           replicate or expand virtual charter                     including virtual public charter schools,             with disabilities face unique
                                           schools be required to focus on                         to meet the obligations discussed above,              educational challenges. As stated above,
                                           enrollment and retention of, and                        the Department does not require                       all eligible students with disabilities
                                           academic outcomes for, educationally                    grantees to adopt a particular standard               attending public charter schools and
                                           disadvantaged students, and make                        to ensure accessibility of web content or             their parents retain all rights under Part
                                           performance and compliance data                         online platforms to meet their                        B of the IDEA, including the right to
                                           available publicly and in a timely                      obligations under Section 504 or Title II             receive FAPE. In addition, these final
                                           manner. One commenter suggested that                    of the ADA. Moreover, the WCAG                        priorities, requirements, definitions, and
                                           we refrain from awarding grants to                      standards are updated periodically.                   selection criteria include a requirement
                                           virtual charter schools altogether.                                                                           that applicants for CMO grants describe
                                                                                                      With respect to requiring virtual
                                              Discussion: Section 4310(2)(G) of the                                                                      how they intend to comply with Part B
                                                                                                   charter schools to focus on the
                                           ESEA requires charter schools receiving                                                                       of the IDEA.
                                                                                                   enrollment and retention of, and                         Further, a number of priorities,
                                           CSP funds to comply with various laws,                  academic outcomes for, educationally
                                           including section 504 of the                                                                                  requirements, definitions, and selection
                                                                                                   disadvantaged students, to receive a                  criteria under this program focus on
                                           Rehabilitation Act of 1973 (Section 504),               grant under the CMO grant program, an
                                           the Americans with Disabilities Act of                                                                        educationally disadvantaged students,
                                                                                                   applicant must provide, among other                   which include students who are
                                           1990 (ADA), and Part B of the                           things, student assessment results and
                                           Individuals with Disabilities Education                                                                       children with disabilities, as defined in
                                                                                                   attendance and retention rates for all                section 8101(4) of the ESEA. The
                                           Act (IDEA). Thus, consistent with the                   students served by its schools, including
                                           requirements in Section 504 and Title II                                                                      Supplemental Priorities also include
                                                                                                   educationally disadvantaged students                  two priorities that focus on the needs of
                                           of the ADA, virtual charter schools must                (ESEA section 4305(b)(3)(A)). Further,
                                           ensure that all content is accessible to                                                                      students with disabilities and could be
                                                                                                   CMO grantees must assure that each                    used in future CMO grant competitions.
                                           students with disabilities enrolled in the              charter school receiving CSP funds
                                           school as well as prospective students                                                                        These priorities are: Priority 1—
                                                                                                   makes annual performance and                          Empowering Families and Individuals
                                           with disabilities and parents or                        enrollment data publicly available
                                           guardians. Similarly, like other local                                                                        to Choose a High-quality Education that
                                                                                                   (ESEA section 4303(f)(2)(G)(v)). CMO                  Meets their Unique Needs (which
                                           educational agencies (LEAs), public                     applicants must also provide the
                                           charter schools that operate as LEAs                                                                          includes a specific option for focusing
                                                                                                   Department with information on                        on students with disabilities) and
                                           under State law, including virtual                      existing significant compliance and
                                           charter school LEAs and LEAs that                                                                             Priority 5—Meeting the Unique Needs
                                                                                                   management issues (ESEA section                       of Students and Children with
                                           include virtual charter schools among                   4305(b)(3)(A)(iii)). These requirements
                                           their public schools, must ensure that                                                                        Disabilities and/or Those with Unique
                                                                                                   apply to all CMO grantees, regardless of              Gifts and Talents. For these reasons, we
                                           eligible students with disabilities                     whether they intend to replicate or
                                           enrolled in these schools receive a free                                                                      decline to include a specific priority for
                                                                                                   expand virtual or brick-and-mortar                    students with disabilities or to focus
                                           appropriate public education (FAPE) in                  charter schools.
                                           accordance with the requirements of                                                                           this priority on students with a
                                                                                                      Finally, while we recognize that                   particular disability or impairment,
                                           Part B of the IDEA.3 To meet this                       virtual charter schools can present
                                           obligation, these schools must provide                                                                        such as Tourette’s Syndrome or
                                                                                                   unique challenges with respect to the                 obsessive compulsive disorder.
                                           instructional materials to students with                enforcement of CSP requirements, the                     Changes: None.
                                           disabilities in accessible formats,                     ESEA does not preclude virtual charter                   Comments: Several commenters urged
                                                                                                   schools from receiving CSP funds. For                 the Department to clarify whether
                                             3 Students with disabilities attending public
                                                                                                   this reason, we decline to adopt the                  applicants could still apply for CMO
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                                           charter schools and their parents retain all rights
                                           under Part B of the IDEA. Further, charter schools      commenter’s suggestion that we                        grants as groups or consortia and, if so,
                                           that operate as LEAs under State law, as well as        preclude applicants that propose to                   what the Department’s expectations are
                                           LEAs that include charter schools among their           replicate or expand virtual charter                   for how a group or consortium
                                           public schools, are responsible for ensuring that the
                                           requirements of Part B of the IDEA are met, unless
                                                                                                   schools from applying for funds under                 application should be organized.
                                           State law assigns that responsibility to some other     this program.                                            Discussion: Federal regulations at 34
                                           entity. See 34 CFR 300.209.                                Changes: None.                                     CFR 75.127–75.129 specifically


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                                                            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations                                        61535

                                           authorize applicants to apply as a group                   We also note that section 4303 of the              high-quality charter schools that focus
                                           or consortium, and prescribe the                        ESEA authorizes the CSP Grants to State               on dropout recovery and academic re-
                                           requirements governing such                             Entities (State Entities) program, under              entry.’’ We believe this statutory
                                           applications. These final priorities,                   which the Department awards grants to                 language is clear. Like the other
                                           requirements, definitions, and selection                State entities, and State entities, in turn,          statutory priorities as well as the
                                           criteria do not alter the requirements for              award subgrants to eligible applicants                priorities established under this NFP,
                                           group applications in 34 CFR 75.127–                    (i.e., charter school developers and                  the Secretary may choose to apply the
                                           75.129. Therefore, we decline to make                   charter schools) to enable such eligible              statutory priority for dropout recovery
                                           any changes in this area.                               applicants to open and prepare for the                and academic re-entry charter schools
                                              Changes: None.                                       operation of new charter schools and                  under a CMO grant competition in FY
                                              Comments: One commenter suggested                    replicated high-quality charter schools,              2019 and future years. Accordingly, we
                                           that the Department allow high-                         and to expand high-quality charter                    decline to add a priority for CMOs that
                                           performing applicants to submit                         schools. The ESEA does not explicitly                 propose to replicate or expand high-
                                           streamlined applications for CMO                        prohibit an entity that qualifies as a                quality charter schools that focus on
                                           grants. The commenter also suggested                    CMO and an eligible applicant from                    dropout recovery and academic re-entry.
                                           that we increase per-seat funding caps                  applying for both a CMO grant under                      Changes: None.
                                           for CMOs that are expanding grades in                   section 4305(b) and a subgrant under                     Comments: Several commenters
                                           schools because grade expansion can                     section 4303(b). In order to receive                  suggested that we designate specific
                                           often be as costly as opening new                       funds under both programs, however,                   priorities as absolute priorities or
                                           schools. In addition, the commenter                     the CMO must propose to carry out                     competitive preference priorities for
                                           asked that we allow CMOs to apply for                   different activities under each                       competitions in FY 2019 and later years.
                                           CMO grants and subgrants under section                  application and demonstrate that it has                  Discussion: Federal regulations at 34
                                           4303 of the ESEA. Finally, the                          the resources and capability to                       CFR 75.105 authorize the Department to
                                           commenter asked that we issue                           administer multiple projects effectively              establish annual priorities and to
                                           nonregulatory guidance that would                       and efficiently.                                      designate the priorities as invitational,
                                           broadly interpret the term ‘‘minor                                                                            competitive preference, or absolute.
                                                                                                      Finally, we agree that students learn
                                           facilities repairs’’ to ensure that charter                                                                   Therefore, we do not need to revise the
                                                                                                   best in safe, clean, and well-maintained
                                           schools can use CSP funds to ensure                                                                           final priorities in order to designate
                                                                                                   environments. Section 4303(h)(3) of the
                                           that students attend safe, clean, and                                                                         them as absolute or competitive
                                                                                                   ESEA authorizes the use of CSP funds
                                           well-maintained schools.                                                                                      preference priorities for competitions in
                                                                                                   to ‘‘[carry] out necessary renovations to
                                              Discussion: Although the Department                                                                        FY 2019 and in later years. In
                                                                                                   ensure that a new school building
                                           may have information regarding the past                                                                       accordance with 34 CFR 75.105(c), we
                                                                                                   complies with applicable statutes and
                                           performance of some applicants—in                                                                             will designate specific priorities as
                                                                                                   regulations, and minor facilities repairs
                                           particular, CMOs that have received                                                                           invitational, absolute or competitive
                                                                                                   (excluding construction)’’ (20 U.S.C.
                                           CSP grants previously—we rely on the                                                                          preference priorities for the FY 2019
                                           expertise of independent peer reviewers                 7221b(h)(3)).4 We believe this provision
                                                                                                                                                         competition, and competitions in later
                                           to evaluate the quality of applications                 affords CMO grantees the flexibility they
                                                                                                                                                         years, through a notice inviting
                                           submitted under a grant competition in                  need to ensure that the charter schools
                                                                                                                                                         applications (NIA) in the Federal
                                           order to ensure the fairness and integrity              they manage occupy buildings and
                                                                                                                                                         Register.
                                           of the competition. Further, each                       facilities that are safe, clean, and well-               Changes: None.
                                           application proposes to carry out                       maintained. For examples of the types
                                                                                                   of repairs that could qualify as ‘‘minor              Priority 1—Promoting Diversity
                                           different activities, and an applicant’s
                                           successful implementation of one                        facilities repairs’’ under section 4305(c),              Comments: Several commenters
                                           project does not guarantee the                          please see the Department’s                           expressed support for a priority that
                                           successful implementation of                            nonregulatory guidance entitled,                      encourages diverse student populations.
                                           subsequent projects. To ensure an equal                 ‘‘Charter Schools Program New                         One commenter recommended that we
                                           playing field, we believe it is critical                Flexibilities under the Every Student                 follow a specific methodology for
                                           that all applicants be required to submit               Succeeds Act (ESSA): Frequently Asked                 assessing whether applicants meet the
                                           the same general information for review.                Questions.’’ 5                                        priority. Several commenters questioned
                                           Therefore, we decline to enable high-                      Changes: None.                                     whether an applicant could meet this
                                           performing applicants to submit                            Comments: One commenter suggested                  priority and Priority 4—Low-Income
                                           streamlined applications, as suggested                  that we add a priority for CMOs that                  Demographic, stating that it may be
                                           by the commenter.                                       propose to replicate or expand high-                  difficult for a school focused on
                                              With respect to the commenter’s                      quality charter schools that focus on                 socioeconomic diversity to maintain a
                                           suggestion to raise per-seat funding                    dropout recovery and academic re-entry                high percentage of students who are
                                           caps, no revisions to these final                       in order to maintain consistency with                 individuals from low-income families.
                                           priorities, requirements, definitions, or               the authorizing statute.                              Some commenters recommended that
                                           selection criteria are necessary for the                   Discussion: We agree that these final              the Department expand the scope of the
                                           Department to change per-seat funding                   priorities, requirements, definitions, and            priority to include students with
                                           caps for CMO grants in a given year.                    selection criteria should align with the              disabilities, in addition to students from
                                           Under 34 CFR 75.101 and 75.104(b), the                  ESEA and believe that they do. Section                racially and socioeconomically diverse
                                           Secretary may establish maximum                         4305(b)(5)(D) of the ESEA authorizes the              backgrounds. Finally, two commenters
                                           funding amounts for grants by                           Secretary to give priority to applicants              expressed concern about the priority’s
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                                           publishing a notice in the Federal                      that ‘‘propose to operate or manage                   effect on communities and school
                                           Register. When establishing funding                                                                           districts more broadly. Specifically, one
                                                                                                     4 Under section 4305(c) of the ESEA, ‘‘the same
                                           limits under a CMO grant competition                                                                          commenter argued that providing
                                                                                                   terms and conditions’’ that apply to State Entity
                                           for a given fiscal year, the Department                 grants under section 4303 apply to CMO grants.        incentives for CMOs that propose to
                                           considers a number of factors, including                  5 See https://innovation.ed.gov/files/2017/12/      replicate or expand charter schools with
                                           the availability of funds.                              CSP-ESSA-Flexibilities-FAQ-2017.pdf.                  diverse student bodies is unlikely to be


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                                           61536            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations

                                           successful because students typically                   agree that high-quality charter schools               priority to encourage applications from
                                           attend schools in or near their                         can be a powerful option for                          CMOs that can share best practices for
                                           neighborhoods, and neighborhoods,                       educationally disadvantaged students                  turning around low-performing
                                           particularly in cities, tend to be                      but that many factors, such as safe and               traditional public schools. Two
                                           segregated due to decades of deeply                     reliable transportation to and from                   commenters requested that we clarify
                                           rooted societal forces, including racially              school, can impact a family’s realistic               whether an applicant could address the
                                           motivated housing practices and school                  educational choices. This priority                    priority by proposing to open a new
                                           assignments. Another commenter                          focuses on applicants that propose to                 charter school, rather than to reopen an
                                           suggested that we revise the priority to                replicate or expand high-quality charter              academically poor-performing public
                                           require that any efforts to replicate or                schools with an intentional focus on                  school as a charter school. One
                                           expand high-quality charter schools                     racial and socioeconomic diversity, but               commenter suggested that we focus the
                                           with an intentional focus on diversity                  it does not dictate how a CMO should                  priority on reopening academically
                                           yield ‘‘zero net effect’’ on the                        approach this work. Promising practices               poor-performing middle and high
                                           demographics of the schools from which                  for promoting diversity continue to                   schools as charter schools.
                                           the students are recruited.                             emerge, and charter schools have great                   Discussion: We agree with the
                                              Discussion: We believe that students                 flexibility to choose an educational                  commenters that the purpose of this
                                           can benefit from attending high-quality                 program that attracts students from                   priority—to ‘‘reopen’’ academically
                                           charter schools with racially and                       diverse backgrounds and geographic                    poor-performing charter schools—could
                                           socioeconomically diverse student                       areas outside of the immediate area                   be clearer. An applicant proposing only
                                           bodies. We agree that following a rubric,               surrounding the school. The intent of                 to open new charter schools, and not
                                           or methodology, for determining                         this priority is to encourage CMOs to                 ‘‘reopen’’ an academically poor-
                                           whether an applicant meets the priority                 replicate or expand high-quality charter              performing public school as a charter
                                           can be useful. We will determine an                     schools with purposefully diverse                     school, would not meet this specific
                                           appropriate method for reviewing                        student bodies through strategies that                priority (but could meet other priorities
                                           applications addressing this priority in                comply with non-discrimination                        established in this NFP). Therefore, in
                                           the NIA for a given competition.                        requirements in the U.S. Constitution                 order to clarify the purpose of this
                                              We agree with the commenters that                    and in Federal civil rights laws, make                priority, we are replacing the term
                                           some aspects of Priority 1—Promoting                    sense for their local contexts, and are               ‘‘restart’’ with ‘‘reopen.’’ In addition, we
                                           Diversity could potentially conflict with               aligned with reliable research on the                 agree that starting a new school is an
                                           certain subparts of Priority 4—Low-                     relationship between academic                         important endeavor, and note that
                                           Income Demographic and, as such, it                     achievement and racial and                            opening new high-quality charter
                                           may be challenging for a CMO grant                      socioeconomic diversity in schools.                   schools is a key element of the CSP. We
                                           application to meet both priorities. The                   Finally, we agree with the commenter               also believe that charter schools can
                                           Department has flexibility in choosing                  that CMOs should consider the                         play an important role in helping to
                                           priorities, requirements, and selection                 community context when replicating or                 improve academic outcomes for
                                           criteria for its grant competitions. In FY              expanding high-quality charter schools,               students in low-performing public
                                           2019 and in future years, we will select                particularly charter schools with an                  schools. Therefore, this priority is
                                           a combination of priorities,                            intentional focus on racial and                       specifically focused on CMOs that
                                           requirements, and selection criteria that               socioeconomically diverse student                     propose to reopen academically poor-
                                           is appropriate for the CMO program and                  bodies. However, we do not think it is                performing public schools as charter
                                           aligned with the Secretary’s policy                     appropriate or practical to require that              schools.
                                           objectives.                                             CMOs demonstrate to the Department a                     We also agree that applicants should
                                              In addition, we share the commenters’                net zero effect on surrounding schools.               be required to demonstrate past success
                                           concerns about ensuring that students                   For these reasons, we decline to revise               working with low-achieving public
                                           with disabilities receive FAPE.                         the priority.                                         schools in order to meet the priority.
                                           However, this priority focuses                             Changes: None.                                     Accordingly, we are revising the stem of
                                           specifically on diversity with respect to                  Comment: None.                                     the priority to require applicants to
                                           race and socioeconomic status. Race and                    Discussion: Upon further review, we                address each subpart of the priority,
                                           socioeconomic status are commonly                       determined that it is critical to remind              including the subpart focused on
                                           cited in research on diversity and its                  applicants addressing Priority 1 of their             demonstrating past success working
                                           relationship with student academic                      nondiscrimination obligations under                   with at least one academically poor-
                                           achievement as two demographic factors                  Federal law. As such, we are revising                 performing public school or schools that
                                           that have a major impact.6 Further, we                  the priority to clarify that proposed                 were designated as persistently lowest-
                                           believe it is important that the final                  projects must be consistent with                      achieving schools or priority schools
                                           priority aligns with the statutory                      nondiscrimination requirements                        under the School Improvement Grant
                                           priority for this program in ESEA                       contained in the U.S. Constitution and                program or ESEA flexibility. Under this
                                           section 4305(b)(5)(A), which focuses on                 Federal civil rights laws.                            standard, an applicant can share best
                                           replicating or expanding high-quality                      Changes: We have added the phrase                  practices working with traditional
                                                                                                   ‘‘consistent with nondiscrimination                   public schools as well as nontraditional
                                           charter schools with racially and
                                                                                                   requirements contained in the U.S.                    public schools, such as public charter
                                           socioeconomically diverse student
                                                                                                   Constitution and Federal civil rights                 schools.
                                           bodies.
                                                                                                   laws’’ to the priority.                                  Finally, we agree that a focus on
                                              We agree with the commenter that
                                                                                                                                                         middle schools and high schools may be
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                                           cultivating and maintaining a diverse                   Priority 2—Reopening Academically                     appropriate in specific contexts, and
                                           student body can be difficult and is                    Poor-Performing Public Schools as                     have included a priority for applications
                                           unlikely to happen overnight. We also                   Charter Schools                                       that propose to replicate or expand
                                             6 See, e.g.: The Century Foundation (2018).             Comments: Several commenters                        high-quality charter schools that serve
                                           Diverse by Design Charter Schools. https://tcf.org/     expressed support for this priority. One              high school students. Under this
                                           content/report/diverse-design-charter-schools/.         commenter asked that we revise the                    priority, an applicant can propose to


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                                                            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations                                        61537

                                           reopen an academically poor-                            students,’’ so long as weighted lotteries             applications that are likely to be
                                           performing middle school or high                        in favor of such students are not                     successful and low-quality applications
                                           school as a charter school as it sees fit.              prohibited under State law and are not                that have little chance of succeeding.
                                           Therefore, we decline to revise the                     used to create schools that would serve                  Changes: None.
                                           priority to focus on reopening                          a particular group of students                           Comment: None.
                                           academically poor-performing middle                     exclusively.7 Therefore, a charter school                Discussion: Upon further review, we
                                           schools and high schools.                               could use a weighted lottery for the                  determined that it is critical to remind
                                              Changes: We have revised the priority                purpose of enrolling a proportionate                  applicants addressing Priority 2 of their
                                           to replace the term ‘‘restart’’ with                    number of students with disabilities in               nondiscrimination obligations under
                                           ‘‘reopen.’’ In addition, we have revised                the charter school as compared to the                 Federal law. As such, we are revising
                                           the stem of the priority so that all                    number of such students enrolled in                   the priority to clarify that proposed
                                           subparts must be addressed in order for                 neighboring schools. As such, the                     projects must be consistent with
                                           an applicant to meet the priority.                      Department declines to expand the                     nondiscrimination requirements
                                              Comments: Several commenters                         statutory requirements for weighted                   contained in the U.S. Constitution and
                                           opined that there is a disproportionately               lotteries as they apply to CMO grants.                Federal civil rights laws.
                                           high percentage of students with                           Further, the Department’s most recent                 Changes: We have added the phrase
                                           disabilities in turnaround schools and                  update to the CSP nonregulatory                       ‘‘consistent with nondiscrimination
                                           suggested that we require CMOs                          guidance was issued in January 2014.8                 requirements contained in the U.S.
                                           proposing to reopen academically poor-                  Although that guidance was issued prior               Constitution and Federal civil rights
                                           performing public schools as charter                    to enactment of the ESSA, much of it is               laws’’ to the priority.
                                           schools to address the issue.                           applicable to the CSP lottery                         Priority 3—High School Students
                                              Discussion: A major goal of these                    requirement in section 4310(2)(H) of the
                                           priorities, requirements, definitions, and              ESEA. Specifically, the January 2014                     Comments: Several commenters
                                           selection criteria is to expand high-                   CSP Nonregulatory Guidance identifies                 expressed support for the priority but
                                           quality educational opportunities for                   several categories of students who may                asked that we revise it to require
                                           educationally disadvantaged students,                   be exempted from a charter school’s                   applicants to demonstrate that their
                                           including students with disabilities.                   lottery, including students who are                   proposed strategy for replicating or
                                           CMO grantees, and the charter schools                   enrolled in a public school at the time               expanding high-quality charter high
                                           they manage, must comply with                           it is converted into a charter school. The            schools is evidence-based. One
                                           applicable laws, including Part B of the                Department may update this guidance to                commenter also suggested that
                                           IDEA, Section 504, and Title II of the                  address changes to the CSP made by the                applicants be required to provide data
                                           ADA. Further, to meet the priority, an                  ESSA. In the meantime, CMO grantees                   on former students’ postsecondary
                                           applicant must propose a strategy that                  may continue to follow the guidelines in              degree attainment and employment.
                                           targets a student population that is                    the January 2014 CSP Nonregulatory                    Conversely, another commenter
                                           demographically similar to that of the                  Guidance regarding the categories of                  suggested we use this priority
                                           academically poor-performing public                     students who may be exempted from the                 cautiously due to a lack of research on
                                           school. Therefore, we decline to revise                 lottery requirement.                                  charter high schools.
                                           this priority in the manner suggested by                   Changes: None.                                        Discussion: We agree that using
                                           the commenter.                                             Comments: One commenter                            research to inform CMO grant proposals
                                              Changes: None.                                       recommended that we use Priority 2                    is useful in certain contexts, but we also
                                              Comments: Several commenters                         cautiously because available research on              understand that research in this area is
                                           requested that the Department clarify its               charter school performance is mixed.                  limited. The Department’s regulations at
                                           policy regarding admissions lotteries,                     Discussion: We agree that, where                   34 CFR 75.226 specifically authorize the
                                           including how a CMO might use a                         possible, Federal funding should be                   Secretary to give priority to applications
                                           weighted lottery to address this priority.              used primarily to support strategies that             that are supported by ‘‘evidence.’’ The
                                           One commenter urged the Department                      are based on research. To meet this                   Department may choose to implement
                                           to ensure that any grantee using a                      priority, applicants would need to                    such a priority under the CMO grant
                                           weighted lottery meet all relevant                      demonstrate past success working with                 competition in a given year.
                                           statutory requirements, and another                     academically poor-performing public                      Likewise, we agree that obtaining data
                                           commenter suggested that we ensure                      schools. In addition, all applicants,                 on students’ postsecondary degree
                                           that any weighted lotteries are designed                regardless of whether they address this               attainment and employment may be
                                           to enroll students with disabilities in                 priority, must disclose compliance                    relevant and encourage applicants to
                                           proportion to the enrollment of such                    issues, provide a logic model for how                 submit such information, as
                                           students in neighboring schools. Several                they will replicate or expand high-                   appropriate. On the other hand, the
                                           commenters suggested that the                           quality charter schools, and describe                 Department must balance its interest in
                                           Department update its nonregulatory                     how they currently operate or manage                  obtaining sufficient information to assist
                                           guidance to clarify that CMOs that are                  high-quality charter schools. This                    peer reviewers in evaluating the quality
                                           reopening academically poor-                            program specifically supports the                     of applications with its interest in
                                           performing public schools as charter                    replication and expansion of high-                    minimizing the burden on applicants. In
                                           schools could exempt from admissions                    quality charter schools, and the final                order to meet the priority, an applicant
                                           lotteries students who are enrolled in                  priorities, requirements, definitions, and            must describe how it will prepare
                                           the academically poor-performing                        selection criteria are designed to                    students for postsecondary education
                                           public school at the time it is reopened.               differentiate between high-quality                    and provide support for its graduates
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                                              Discussion: Under section 4303(c)(3)                                                                       who enroll in institutions of higher
                                           of the ESEA, charter schools receiving                    7 As stated above, under section 4305(c) of the
                                                                                                                                                         education (IHEs) and certain one-year
                                           funds under a CMO grant generally may                   ESEA, CMO grantees generally are subject to the       training programs that prepare students
                                                                                                   same terms and conditions as State entity grantees
                                           use ‘‘a weighted lottery to give slightly               funded under section 4303.                            for gainful employment in a recognized
                                           better chances for admission to all, or a                 8 See http://www2.ed.gov/programs/charter/          occupation. In addition, applicants must
                                           subset of, educationally disadvantaged                  fy14cspnonregguidance.doc.                            establish one or more project-specific


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                                           61538            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations

                                           performance measures that will provide                  definition of ‘‘high-quality charter                  requested that we revise it to support
                                           reliable information about the grantee’s                school’’ in section 4310(8) of the ESEA               only CMOs that can demonstrate that at
                                           progress in meeting the objectives of the               and the terms of its charter. Our                     least 60 percent of the students across
                                           project. We believe these requirements                  ultimate focus remains on ensuring that               all of the charter schools they operate or
                                           will generate the necessary information                 students graduate from high school                    manage are individuals from low-
                                           to enable peer reviewers to evaluate the                prepared to succeed in a wide variety of              income families. One commenter stated
                                           quality of applications without placing                 postsecondary education options.                      that the vast majority of CMOs operate
                                           an undue burden on applicants. For                         We also agree with the commenters                  schools with at least 60 percent students
                                           these reasons, we decline to revise the                 that ensuring that students with                      who are individuals from low-income
                                           priority in the manner suggested by the                 disabilities (as well as other                        families, so this priority would not
                                           commenters.                                             educationally disadvantaged students)                 meaningfully differentiate applicants.
                                              Changes: None.                                       graduate from high school with                        Another commenter suggested that we
                                              Comments: Several commenters                         adequate preparation for postsecondary                keep the priority’s original structure but
                                           suggested that we broaden the priority                  education options is paramount.                       revise it to support CMOs that can
                                           to focus on high schools that prepare                   Therefore, we are revising the priority to            demonstrate that 60 to 90 percent,
                                           students for paths to career and                        include specific references to                        instead of 40 to 60 percent, of the
                                           technical training and military service,                educationally disadvantaged students                  students across all of the charter schools
                                           as well as enrollment in two- and four-                 where appropriate. Also, as stated                    that they operate or manage are
                                           year colleges and universities. Several                 above, eligible students with disabilities            individuals from low-income families.
                                           other commenters suggested that we                      attending public charter schools and                     Discussion: We believe that this
                                           revise the priority to encompass high                   their parents retain their right to receive           priority is essential to provide
                                           schools that focus on transitional                      FAPE, and the IDEA requirements for                   incentives for CMOs to support charter
                                           programming for students with                           transition services apply beginning with              schools that serve student populations
                                           disabilities.                                           the first individualized education plan               with the most need. As written, the
                                              Discussion: We agree that sending                    (IEP) to be in effect when the student                priority affords the Secretary discretion
                                           students to two- or four-year colleges                  turns 16, or younger if determined                    to establish a poverty threshold of 40
                                           and universities is not the only measure                appropriate by the IEP team.9 Further,                percent, 50 percent, or 60 percent
                                           of a charter high school’s success and                  in order to be considered a high-quality              individuals from low-income families
                                           that, for some students, getting a job or               charter school (a key aspect of this                  under the CMO grant competition in a
                                           attending technical school may be the                   program), a charter school that serves                given fiscal year. We believe that 40
                                           best option immediately after high                      high school students must have                        percent is an appropriate lower bound
                                           school. Accordingly, we are revising                    demonstrated success in increasing                    for this priority because it is aligned
                                           subparts (ii) and (iii) of the priority to              student academic achievement and                      with the poverty threshold a Title I
                                           encompass a broader range of                                                                                  school generally must meet in order to
                                                                                                   graduation rates, and must provide that
                                           postsecondary education, training, and                                                                        operate a schoolwide program under
                                                                                                   information disaggregated by subgroups
                                           career options. Specifically, for this                                                                        section 1114 of the ESEA. For this
                                                                                                   of students defined in section 1111(c)(2)
                                           priority, postsecondary education                                                                             reason, we decline to revise the priority
                                                                                                   of the ESEA, which includes children
                                           institutions include both IHEs and                                                                            to establish only one poverty threshold
                                                                                                   with disabilities, as defined in the IDEA.
                                           educational institutions that offer one-                                                                      of 60 percent individuals from low-
                                                                                                   Therefore, while we are revising the
                                           year training programs that prepare                                                                           income families.
                                                                                                   priority to include specific references to
                                           students for gainful employment in a                                                                             We also decline to revise the priority
                                                                                                   educationally disadvantaged students,
                                           recognized occupation (as described in                                                                        to require that CMOs operate or manage
                                                                                                   we decline to revise the priority to
                                           section 101(b)(1) of the Higher                                                                               charter schools with 60 to 90 percent
                                           Education Act of 1965, as amended                       include a specific focus on high schools
                                                                                                                                                         students who are individuals from low-
                                           (HEA)). For clarity, we are also defining               that provide transitional programming
                                                                                                                                                         income families since, as stated above,
                                           ‘‘IHE’’ in this NFP. The definition we                  (i.e., preparation for specific
                                                                                                                                                         the priority could potentially conflict
                                           are adding to the NFP is the same as the                postsecondary education options) for
                                                                                                                                                         with Priority 1—Promoting Diversity in
                                           definition of ‘‘IHE’’ in section 8101(29)               students with disabilities.
                                                                                                                                                         a single competition. We recognize that
                                                                                                      Changes: We have revised Priority 3—
                                           of the ESEA.                                                                                                  many CMOs focus their efforts in high-
                                              Further, while a career in the military              High School Students to include
                                                                                                                                                         need communities, but we believe it is
                                           can be very rewarding, the Department’s                 specific references to educationally
                                                                                                                                                         also important to support high-quality
                                           mission is to promote student academic                  disadvantaged students and to clarify
                                                                                                                                                         charter schools that are designed with
                                           achievement and preparation for global                  that the priority applies to high-quality
                                                                                                                                                         an intentional focus on racial and
                                           competitiveness by fostering                            charter schools that prepare high school
                                                                                                                                                         socioeconomic diversity. In any given
                                           educational excellence and ensuring                     students to attend IHEs, which generally
                                                                                                                                                         year, we may include in an NIA one or
                                           equal access. Therefore, we believe the                 consist of two- and four-year colleges
                                                                                                                                                         more of these final priorities,
                                           primary goal of elementary and                          and universities, as well as certain
                                                                                                                                                         requirements, definitions, and selection
                                           secondary education should be                           postsecondary education institutions
                                                                                                                                                         criteria individually or in combination
                                           preparing students for success at the                   that offer one-year training programs.
                                                                                                                                                         with each other; therefore, we decline to
                                           postsecondary education level.                          We have also added a definition for
                                                                                                                                                         revise the priority as suggested by the
                                           Nevertheless, charter schools have great                ‘‘IHE;’’ this change is discussed later in
                                                                                                                                                         commenters.
                                           flexibility to establish a unique mission               this notice.                                             Changes: None.
                                           and educational focus. Thus, an                         Priority 4—Low-Income Demographic                        Comments: One commenter stated
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                                           applicant may propose to replicate or                                                                         that applicants addressing this priority
                                                                                                     Comments: Several commenters
                                           expand charter schools with a wide                                                                            must demonstrate past success. The
                                                                                                   expressed support for the priority but
                                           range of educational programs,                                                                                commenter also suggested that we revise
                                           including a military (i.e., Reserve                       9 See 20 U.S.C. 1414(d)(1)(A)(i)(VIII) and 34 CFR   the priority to encourage applicants to
                                           Officers’ Training Corps (ROTC)) focus,                 300.320(b); see also 20 U.S.C. 1401(34) and 34 CFR    provide transportation and meal
                                           so long as the charter school meets the                 300.43.                                               services to students.


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                                                            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations                                         61539

                                              Discussion: While applicants’ past                   60 percent students who are individuals               several smaller competitions for CMO
                                           performance is not an explicit focus of                 from low-income families). The                        grants. One commenter questioned the
                                           this priority, it is embedded in the                    commenter expressed concern that an                   purpose of the priority, noting that if the
                                           program through the various application                 applicant could receive the maximum                   intent is to support smaller, less-
                                           priorities, requirements, definitions, and              number of priority points for a higher                established CMOs, we may get better
                                           selection criteria, including the Quality               poverty threshold, but only be required               results using the priority for novice
                                           of the Eligible Applicant selection                     to maintain the minimum threshold                     applicants in 34 CFR 75.225.
                                           criterion. We also recognize that                       throughout its grant project. The                       Discussion: We agree that size is not
                                           transportation and meals are important                  commenter also expressed concern that                 necessarily positively correlated with
                                           issues for charter schools that serve                   the focus of the priority is on all schools           quality. We note, however, that the
                                           large numbers of low-income students.                   operated or managed by the CMO, and                   Department can employ several
                                           While CSP funds may be used to                          not only on the charter schools to be                 mechanisms, established in the ESEA
                                           provide transportation and ‘‘healthy                    replicated or expanded as part of the                 and these final priorities, requirements,
                                           snacks’’ for students in limited                        grant project.                                        definitions, and selection criteria, to
                                           circumstances, a number of other                           Discussion: While the priority is                  assess the quality of an applicant and its
                                           Federal, State, and local programs (such                written in a manner that gives the                    proposal. This priority, by itself, is not
                                           as the United States Department of                      Department flexibility to apply one,                  intended to assess quality with respect
                                           Agriculture’s National School Lunch                     two, or all three poverty standards in a              to the size of the applicant. Rather, this
                                           Program) provide resources specifically                 single competition, we do not anticipate              priority is designed primarily to enable
                                           for those purposes. For this reason, we                 applying more than one poverty                        the Secretary to give a competitive
                                           decline to revise the priority to                       standard in a single competition or                   advantage to small, medium, or large
                                           encourage applicants to provide                         assigning points on a sliding scale.                  CMOs in a given year based on the
                                           transportation and meal services to                        We agree with the commenter that an                Department’s policy objectives for that
                                           students.                                               applicant receiving points for this                   year. We understand the concern that
                                              Changes: None.                                       priority should be required to maintain               this priority could be used to create
                                              Comments: One commenter asked                        the same, or a substantially similar,                 smaller sub-competitions that would
                                           that we expand the priority to focus on                 poverty threshold throughout the life of              decrease the amount of available funds
                                           other high-need populations, such as                    the grant. As such, we are revising the               for other CMOs. In any year in which
                                           students with disabilities and English                  priority to clarify that an applicant must            we announce a competition, we will
                                           learners.                                               demonstrate not only that its current                 select a combination of priorities,
                                              Discussion: Many aspects of the CMO                  portfolio of schools meets the specified              requirements, and selection criteria that
                                           grant program and these priorities,                     poverty threshold, but also that it will              meet the requirements of the CMO grant
                                           requirements, definitions, and selection                maintain the same, or a substantially                 program and is aligned with the
                                           criteria focus on educationally                         similar, poverty level in the charter                 Secretary’s policy objectives.
                                           disadvantaged students, which include                   schools that it replicates or expands, as               Finally, we agree that 34 CFR 75.225
                                           students with disabilities and English                  well as its other schools, for the entire             provides a useful tool for encouraging
                                           learners. In addition, we are revising                  grant period. We recognize that the                   applications from novice applicants.
                                           some selection factors under the                        percentage of students who are                        The Department will continue to follow
                                           Contribution in Assisting Educationally                 individuals from low-income families                  the requirements in 34 CFR 75.225 to
                                           Disadvantaged Students criterion to                     may fluctuate on an annual basis and,                 give priority to novice applicants in
                                           include specific references to students                 for this reason, believe the priority                 future CMO grant competitions, as we
                                           with disabilities and English learners.                 should focus on all schools operated by               deem appropriate.
                                           Further, the Supplemental Priorities,                   a CMO and not just the charter schools                  Changes: None.
                                           which may be used under the CMO                         to be replicated or expanded as part of
                                           grant program, include several priorities                                                                     Priority 6—Rural Community
                                                                                                   the grant project.
                                           (e.g., Priority 1(b)(ii) and (iii) and                     Changes: We have added a                             Comments: Several commenters
                                           Priority 5) that focus on students with                 requirement that applicants demonstrate               expressed support for the priority but
                                           disabilities and English learners.                      that they will maintain for the entire                questioned whether an applicant could
                                           Therefore, we decline to revise this                    grant period a poverty threshold across               meet the priority by proposing to
                                           priority to focus on other high-need                    the schools they operate or manage that               replicate or expand schools in a
                                           groups, such as students with                           is the same as, or substantially similar              combination of rural communities and
                                           disabilities or English learners.                       to, the poverty level proposed in the                 other communities.
                                              Changes: None.                                       grant application.                                      Discussion: As written, this priority
                                              Comments: One commenter requested                                                                          gives the Department flexibility to
                                           that we clarify how the priority would                  Priority 5—Number of Charter Schools                  establish an absolute or competitive
                                           work as a competitive preference                        Operated or Managed by the Eligible                   preference priority for applications that
                                           priority in a competition. Specifically,                Applicant                                             propose to replicate or expand one or
                                           the commenter asked us to clarify                         Comments: Several commenters                        more high-quality charter schools in a
                                           whether points would be awarded on a                    suggested that we use the priority                    rural community or one or more high-
                                           sliding scale (e.g., one point for an                   sparingly or remove it altogether. One                quality charter schools in a non-rural
                                           applicant that can demonstrate its                      commenter noted that the size of a CMO                community. To meet the priority, an
                                           schools have at least 40 percent students               does not directly correlate to the quality            applicant would need to propose to
                                           who are individuals from low-income                     of its schools, and another cited recent              replicate or expand at least one high-
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                                           families, two points for an applicant                   research suggesting that CMO size                     quality charter school in a rural
                                           that can demonstrate its schools have at                should not be used as a proxy for other               community or at least one high-quality
                                           least 50 percent students who are                       characteristics. Other commenters                     charter school in a non-rural
                                           individuals from low-income families,                   expressed concern that the priority                   community, depending on the
                                           and three points for an applicant that                  would dilute the quality of funded                    Department’s policy objectives in a
                                           can demonstrate its schools have at least               applications because it would create                  given year and which prong of the


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                                           61540            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations

                                           priority the applicant is addressing. The               replaced the term ‘‘students who are                  percentage of Native American students
                                           priority language does not preclude an                  Indians’’ with the term ‘‘Native                      enrolled in the school. Finally, the
                                           applicant from also proposing to                        American students’’ in this priority.                 commenter suggested that we revise the
                                           replicate or expand high-quality charter                These changes allow applicants to                     priority to require that applicants
                                           schools in other communities. We                        receive priority points for proposing to              demonstrate a record of success in
                                           believe the priority is clear and,                      replicate or expand high-quality charter              Tribal communities, particularly for
                                           therefore, decline to revise it.                        schools that serve Native Hawaiian and                applicants proposing to replicate or
                                              Changes: None.                                       Native American Pacific Islander                      expand virtual charter schools.
                                              Comments: One commenter asked                        students, as well as students who are                    Discussion: We agree that a CMO with
                                           that we revise the priority to focus on                 Indians (including Alaska Natives). We                strong support from surrounding Indian
                                           opening new charter schools in rural                    agree with the commenters that                        Tribes or Indian organizations is more
                                           areas. Conversely, another commenter                    cultivating strong relationships with the             likely to succeed in replicating or
                                           raised concerns that new charter schools                communities to be served is crucial, and              expanding high-quality charter schools
                                           in rural areas would drain resources                    that focusing on Native American                      that serve a high proportion of Native
                                           from traditional public schools.                        language immersion is a promising                     American students. Accordingly, in
                                              Discussion: The purpose of the CMO                   strategy for building and maintaining                 order to meet this priority, the applicant
                                           grant program is to replicate or expand                 those relationships and improving                     must submit a letter of support from an
                                           high-quality charter schools. Although                  academic outcomes for Native American                 Indian Tribe or Indian organization
                                           replicated charter schools are based on                 students. To meet this priority, an                   located in the area to be served by the
                                           educational models at existing high-                    applicant must propose to replicate or                charter school. While a resolution is not
                                           quality charter schools, for all practical              expand a high-quality charter school                  required, an applicant is not precluded
                                           purposes, they are new charter schools.                 that will meet the unique needs of                    from submitting a resolution, or other
                                           Further, in light of the unique                         Native American students. The                         official document, to demonstrate
                                           challenges faced by rural communities,                  applicant may employ various strategies               support.
                                           we believe prospective applicants for                   that reflect and preserve Native                         Likewise, we believe that charter
                                           CMO grants should have the flexibility                  American language, culture, and                       school developers and charter schools
                                           to design their projects in a way that                  history, including a ‘‘dual language                  in the communities where the charter
                                           meets the specific needs of the                         immersion’’ program that focuses on                   school will be located are best suited to
                                           communities they plan to serve,                         Native American languages. Thus, an                   assemble a school board that
                                           including determining whether a                         applicant proposing to replicate or                   understands the unique educational
                                           particular rural community would be                     expand a high-quality charter school                  needs of the students to be served. We
                                           best served by creating a new, or                       with a dual language immersion                        believe that requiring a specific
                                           replicated, charter school or by                        program that focuses on Native                        percentage or number of board members
                                           expanding an existing charter school.                   American languages could meet this                    from Indian Tribes or Indian
                                              In addition, we recognize that                       priority.                                             organizations could limit the ability of
                                           replicating or expanding high-quality                      In addition, while we believe that a               applicants to fully respond to the needs
                                           charter schools will impact the                         requirement for applicants to                         of the communities they propose to
                                           surrounding community and is likely to                  demonstrate a commitment to                           serve. In order to meet the priority,
                                           have a greater impact in a rural                        meaningfully collaborate with Tribal                  however, CMOs will need to collaborate
                                           community. The Department’s broad                       communities would result in actual                    with an Indian Tribe or Indian
                                           focus is on expanding high-quality                      collaborations, we agree that the                     organization in the communities in
                                           educational options for all students,                   language in the priority could be clearer             which they propose to replicate or
                                           including students in rural                             with respect to requiring applicants to               expand high-quality charter schools to
                                           communities. Ideally, increasing access                 meaningfully engage with Tribal                       ensure that school boards represent
                                           to high-quality educational options in                  communities. Therefore, we are revising               their students appropriately. While a
                                           rural communities will help improve                     the priority to clarify that applicants               school board with a percentage of
                                           student academic achievement not only                   must do more than demonstrate a                       members of Indian Tribes or Indian
                                           in charter schools, but also in traditional             commitment to collaborate.                            organizations that is comparable to the
                                           public schools in the community. For                       Changes: We have revised the priority              percentage of Native American students
                                           these reasons, we decline to revise the                 to replace the phrase ‘‘demonstrate a                 to be served could satisfy the substantial
                                           priority.                                               commitment to meaningfully                            percentage requirement in this priority,
                                              Changes: None.                                       collaborate’’ with ‘‘meaningfully                     there may be circumstances where a
                                                                                                   collaborate.’’                                        smaller or larger percentage of members
                                           Priority 7—Replicating or Expanding                        Comments: One commenter expressed                  from an Indian Tribe or Indian
                                           High-Quality Charter Schools To Serve                   support for the priority but suggested                organization is appropriate. For these
                                           Native American Students                                that we revise it to require applicants to            reasons, we decline to revise the priority
                                              Comments: Several commenters urged                   submit a resolution or official                       as suggested by the commenter.
                                           the Department to add a priority that                   document, rather than a letter, from                     Finally, while an applicant is not
                                           would support Indian students by                        surrounding Indian Tribes or Indian                   precluded from demonstrating past
                                           encouraging CMOs to replicate or                        organizations that demonstrates their                 success working with Tribal
                                           expand dual language immersion                          support for the proposed project. The                 communities, we decline to revise the
                                           schools that focus primarily on Indian                  commenter also suggested that we                      priority to impose such a requirement.
                                           languages. Another commenter                            clarify our expectations for the                      In order to receive CMO funds, all
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                                           suggested that the Department consider                  composition of the board for a charter                applicants must describe how they
                                           a CMO’s ability to meaningfully engage                  school to be replicated or expanded                   operate or manage the charter schools
                                           with Tribal communities when making                     under the grant, and suggested that we                (including virtual charter schools) for
                                           CMO grant decisions.                                    require the board to have a percentage                which they have presented evidence of
                                              Discussion: As discussed in the                      of Indian Tribe or Indian organization                success (see Requirement (e)). We
                                           ‘‘Definitions’’ section below, we have                  members that is comparable to the                     believe that Indian Tribes and Indian


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                                                            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations                                        61541

                                           organizations located in the community                  grants under the ESEA and the                            Discussion: As discussed above, we
                                           to be served by the replicated or                       Department’s regulations.                             are revising Priority 7—Replicating or
                                           expanded charter school are in the best                    Changes: None.                                     Expanding High-Quality Charter
                                           position to determine whether a                            Comments: One commenter suggested                  Schools to Serve Native American
                                           particular CMO applicant has the                        that we require applicants to disclose                Students to replace ‘‘students who are
                                           requisite knowledge and experience to                   whether any charter schools in their                  Indians’’ with ‘‘Native American
                                           serve Native American students                          network meet the definition of                        students.’’ As written, the priority gives
                                           effectively. Therefore, the requirements                ‘‘academically poor-performing public                 applicants an opportunity to explain
                                           that an applicant obtain a letter of                    school.’’ The commenter also suggested                why the number of Native American
                                           support from, and meaningfully                          that we differentiate between ‘‘schools’’             students it proposes to serve constitutes
                                           collaborate with, a local Indian Tribe or               and ‘‘campuses’’ because States vary in               a ‘‘high proportion,’’ based on the
                                           Indian organization should prevent                      how they define the two terms.                        specific circumstances and context of
                                           CMOs that lack the knowledge and                           Discussion: We agree that knowing                  the community in which the charter
                                           experience necessary to serve Tribal                    whether an applicant has ‘‘academically               school is or will be located. For this
                                           communities successfully from meeting                   poor-performing public schools’’ in its               reason, we decline to require charter
                                           the priority. For these reasons, we                     network could give the Department an                  schools to serve a specific percentage of
                                           decline to revise the priority in the                   indication of the overall quality of the              Native American students, such as 25
                                           manner suggested by the commenter.                      CMO’s charter schools. On the other                   percent, in order to meet the priority.
                                              Changes: None.                                       hand, there are many reasons why a                       We appreciate that some data may
                                              Comment: None.                                       charter school may qualify as an                      suggest that many charter schools have
                                              Discussion: Upon further review, we                  academically poor-performing public                   student bodies comprised of 75 percent
                                           determined that it is critical to remind                school and, ultimately, the existence of              or more Native American students. Such
                                           applicants addressing Priority 7 of their               one or more academically poor-                        schools would generally meet the
                                           nondiscrimination obligations under                     performing public schools in a CMO’s                  definition of high proportion established
                                           Federal law. As such, we are revising                   network is not necessarily dispositive                in this document. On the other hand, if
                                           the priority to clarify that proposed                   proof that the CMO is unable to                       an applicant proposes to replicate or
                                           projects must be consistent with                        administer a CMO grant effectively and                expand a charter school that has less
                                           nondiscrimination requirements                          efficiently. For example, it would not be             than a majority of Native American
                                           contained in the U.S. Constitution and                  unusual for an applicant that has                     students but provides a compelling
                                           Federal civil rights laws.                              reopened one or more low-achieving                    rationale for why the school should be
                                              Changes: We have added the phrase                    public schools to have an academically                considered to have a high proportion of
                                           ‘‘consistent with nondiscrimination                     poor-performing public school in its                  Native American students, we may
                                           requirements contained in the U.S.                      network. Under Requirement (e), any                   consider the applicant to have met the
                                           Constitution and Federal civil rights                   CMO that receives a grant must provide                standard. Applicants addressing Priority
                                           laws’’ to the priority.                                 evidence of success, regardless of                    7 must, among other things,
                                              Requirements                                         whether the CMO has operated or                       meaningfully collaborate with Indian
                                              Comments: A few commenters                           managed academically poor-performing                  Tribes or Indian organizations and must
                                           requested that we clarify which                         public schools.                                       replicate or expand high-quality charter
                                           requirements we would include in                           In addition, Requirement (a) provides              schools that have an academic program
                                           future CMO grant competitions. One                      that applicants must demonstrate that                 purposely designed to meet the unique
                                           commenter also requested that we                        they operate more than one charter                    needs of Native American students. We
                                           clarify which requirements represent                    school. Requirement (a) clearly states                believe that all of the components of
                                           existing obligations under Federal law.                 that, for purposes of the CMO grant                   Priority 7, including the definition of
                                              Discussion: As a general matter, the                 program, multiple charter schools are                 ‘‘high proportion,’’ set an appropriately
                                           CSP statute prescribes the priorities,                  considered to be separate schools if each             rigorous bar for CMO applicants while
                                           requirements, definitions, and selection                school meets the definition of ‘‘charter              also affording some flexibility.
                                           criteria that apply to all CMO grants,                  school’’ in section 4310(2) of the ESEA               Therefore, we decline to revise the
                                           regardless of the fiscal year in which the              and is treated as a separate school by its            definition of high proportion as
                                           grant is awarded. In addition, the                      authorized public chartering agency and               suggested by the commenters.
                                           Department’s regulations at 34 CFR part                 the State in which the charter school is                 Changes: None.
                                           75 prescribe the procedures the                         located, including for purposes of                       Comments: A few commenters
                                           Department must follow when awarding                    accountability and reporting under Title              suggested that we revise the definition
                                           and administering discretionary grants.                 I, Part A of the ESEA. For these reasons,             of ‘‘Indian’’ to include Native
                                           The main purposes of these final                        we decline to revise the priority as                  Hawaiians.
                                           priorities, requirements, definitions, and              suggested by the commenter.                              Discussion: We agree that Native
                                           selection criteria are to clarify the                      Changes: None.                                     Hawaiian students have many of the
                                           Department’s interpretation of certain                     Definitions                                        same unique educational needs as
                                           statutory requirements and to establish                    Comments: Several commenters                       students who are Indians. We also
                                           other priorities, requirements,                         requested that we clarify the definition              believe that students who are Native
                                           definitions, and selection criteria                     of ‘‘high proportion,’’ as that term is               American Pacific Islanders have similar
                                           consistent with congressional intent.                   used in Priority 7. One commenter                     educational needs. Therefore, as stated
                                           The Department generally has discretion                 provided data suggesting that the                     above, we are replacing the terms
                                           to choose specific priorities,                          definition of ‘‘high proportion’’ may not             ‘‘Indian’’ and ‘‘Indian language,’’
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                                           requirements, definitions, and selection                be ambitious enough. Conversely, one                  respectively, with ‘‘Native American’’
                                           criteria to apply to CMO grants in a                    commenter suggested that we define                    and ‘‘Native American language’’
                                           given year based on the Department’s                    ‘‘high proportion’’ as 25 percent                     throughout the final priorities,
                                           policy objectives for that year. All of the             students who are Indians, consistent                  requirements, definitions, and selection
                                           requirements in this NFP are aligned                    with one of the requirements in section               criteria. Likewise, we are removing the
                                           with existing requirements for CMO                      6112 of the ESEA.                                     definition of the term ‘‘Indian’’ and


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                                           61542            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations

                                           adding definitions for ‘‘Native                         with respect to achieving these two                   public schools, consistent with
                                           American’’ and ‘‘Native American                        objectives. While educationally                       nondiscrimination requirements
                                           language,’’ based on the definitions for                disadvantaged students include                        contained in the U.S. Constitution and
                                           those terms in section 8101(34) of the                  students with disabilities, we agree with             Federal civil rights laws.
                                           ESEA.10 The ESEA definition of ‘‘Native                 the commenter that an emphasis should                 Priority 3—High School Students
                                           American’’ explicitly includes Indians                  be placed on students with disabilities
                                           (including Alaska Natives), Native                      and English learners because enrollment                  Under this priority, applicants must
                                           Hawaiians, and Native American Pacific                  of such students in charter schools                   propose to—
                                           Islanders.                                              tends to be lower than enrollment of                     (i) Replicate or expand high-quality
                                              Changes: We have removed the                         such students in neighboring traditional              charter schools to serve high school
                                           definition of ‘‘Indian’’ and added                      public schools. Therefore, we are                     students, including educationally
                                           definitions for ‘‘Native American’’ and                 revising the selection criterion to                   disadvantaged students;
                                           ‘‘Native American language.’’                           emphasize students with disabilities                     (ii) Prepare students, including
                                              Comments: One commenter suggested                    and English learners.                                 educationally disadvantaged students,
                                           that we use the term ‘‘Tribal                                                                                 in those schools for enrollment in
                                                                                                     Changes: We have revised two
                                           organization’’ instead of ‘‘Indian                                                                            postsecondary education institutions
                                                                                                   selection factors in Selection Criterion
                                           organization’’ because ‘‘Tribal                                                                               through activities such as, but not
                                                                                                   (b) to sharpen the criterion’s focus on
                                           organization’’ is the term used in the                                                                        limited to, accelerated learning
                                                                                                   serving educationally disadvantaged
                                           ESEA.                                                                                                         programs (including Advanced
                                                                                                   students. We also have revised the title
                                              Discussion: While the term ‘‘Tribal                                                                        Placement and International
                                                                                                   of the criterion to clarify the focus on
                                           organization’’ is used under several                                                                          Baccalaureate courses and programs,
                                                                                                   the significance of the contribution in
                                           ESEA programs, the term is not defined                                                                        dual or concurrent enrollment
                                                                                                   assisting educationally disadvantaged
                                           in section 8101 of the ESEA, which                                                                            programs, and early college high
                                                                                                   students.
                                           provides general definitions that apply                                                                       schools), college counseling, career and
                                           to programs authorized under the ESEA.                  Final Priorities                                      technical education programs, career
                                           The term ‘‘Indian organization’’ is used                                                                      counseling, internships, work-based
                                                                                                   Priority 1—Promoting Diversity
                                           in the authorizing statute for the                                                                            learning programs (such as
                                                                                                      Under this priority, applicants must               apprenticeships), assisting students in
                                           Department’s Indian Education program
                                                                                                   propose to replicate or expand high-                  the college admissions and financial aid
                                           (20 U.S.C. 7401–7492) and defined in
                                                                                                   quality charter schools that have an                  application processes, and preparing
                                           the Department’s regulations
                                                                                                   intentional focus on recruiting students              students to take standardized college
                                           implementing the Indian Education
                                                                                                   from racially and socioeconomically                   admissions tests;
                                           program at 34 CFR 263.20. We think it
                                                                                                   diverse backgrounds and maintaining                      (iii) Provide support for students,
                                           is important to maintain consistency
                                                                                                   racially and socioeconomically diverse                including educationally disadvantaged
                                           with the Indian Education program.
                                              Changes: None.                                       student bodies in those charter schools,              students, who graduate from those
                                                                                                   consistent with nondiscrimination                     schools and enroll in postsecondary
                                           Selection Criteria                                      requirements contained in the U.S.                    education institutions in persisting in,
                                             Comments: One commenter suggested                     Constitution and Federal civil rights                 and attaining a degree or certificate
                                           that we revise Selection Criterion (b)—                 laws.                                                 from, such institutions, through
                                           Contribution in assisting educationally                 Priority 2—Reopening Academically                     activities such as, but not limited to,
                                           disadvantaged students to enable the                    Poor-Performing Public Schools as                     mentorships, ongoing assistance with
                                           Department to assess better the extent to               Charter Schools                                       the financial aid application process,
                                           which an applicant would effectively                                                                          and establishing or strengthening peer
                                           support students with disabilities.                       Under this priority, applicants must—               support systems for such students
                                           Specifically, the commenter suggested                     (i) Demonstrate past success working                attending the same institution; and
                                           that we add a selection factor focused                  with one or more academically poor-                      (iv) Propose one or more project-
                                           on attendance rates and outcomes for                    performing public schools or schools                  specific performance measures,
                                           educationally disadvantaged students,                   that previously were designated as                    including aligned leading indicators or
                                           including students with disabilities and                persistently lowest-achieving schools or              other interim milestones, that will
                                           English learners, and revise the existing               priority schools under the former                     provide valid and reliable information
                                           selection factors to focus on effective                 School Improvement Grant program or                   about the applicant’s progress in
                                           instructional strategies for educationally              in States that exercised ESEA flexibility,            preparing students, including
                                           disadvantaged students.                                 respectively, under the ESEA, as                      educationally disadvantaged students,
                                             Discussion: Two major purposes of                     amended by the No Child Left Behind                   for enrollment in postsecondary
                                           the CSP are to expand educational                       Act of 2001; and                                      education institutions and in supporting
                                           opportunities for educationally                           (ii) Propose to use grant funds under               those students in persisting in and
                                           disadvantaged students and to assist                    this program to reopen one or more                    attaining a degree or certificate from
                                           such students in meeting State academic                 academically poor-performing public                   such institutions. An applicant
                                           content and performance standards. As                   schools as charter schools during the                 addressing this priority and receiving a
                                           written in the NPP, this selection                      project period by—                                    CMO grant must provide data that are
                                           criterion would enable the Department                     (A) Replicating one or more high-                   responsive to the measure(s), including
                                           to evaluate the quality of an application               quality charter schools based on a                    performance targets, in its annual
                                                                                                   successful charter school model for                   performance reports to the Department.
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                                             10 Section 8101(34) defines ‘‘Native American’’       which the applicant has provided                         (v) For purposes of this priority,
                                           and ‘‘Native American language’’ as having the          evidence of success; and                              postsecondary education institutions
                                           same meaning given those terms in section 103 of          (B) Targeting a demographically                     include institutions of higher education,
                                           the Native American Languages Act of 1990
                                           (NALA). Under section 103, ‘‘Native American’’
                                                                                                   similar student population in the                     as defined in section 8101(29) of the
                                           includes Indians (including Alaska Natives), Native     replicated charter schools as was served              Elementary and Secondary Education
                                           Hawaiians, and Native American Pacific Islanders.       by the academically poor-performing                   Act of 1965, as amended by the Every


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                                                            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations                                         61543

                                           Student Succeeds Act, and one-year                         (B) Have a mission and focus that will                (i) Meets each element of the
                                           training programs that meet the                         address the unique educational needs of               definition of ‘‘charter school’’ under
                                           requirements of section 101(b)(1) of the                Native American students, such as                     section 4310(2) of the ESEA; and
                                           HEA.                                                    through the use of instructional                         (ii) Is treated as a separate school by
                                                                                                   programs and teaching methods that                    its authorized public chartering agency
                                           Priority 4—Low-Income Demographic
                                                                                                   reflect and preserve Native American                  and the State in which the charter
                                              Under this priority, applicants must                 language, culture, and history; and                   school is located, including for purposes
                                           demonstrate one of the following—                          (C) Have a governing board with a                  of accountability and reporting under
                                              (i) That at least 40 percent of the                  substantial percentage of members who                 title I, part A of the ESEA.
                                           students across all of the charter schools              are members of Indian Tribes or Indian                   (b) Provide information regarding any
                                           the applicant operates or manages are                   organizations located within the area to              compliance issues, and how they were
                                           individuals from low-income families,                   be served by the replicated or expanded               resolved, for any charter schools
                                           and that the applicant will maintain the                charter school;                                       operated or managed by the applicant
                                           same, or a substantially similar,                                                                             that have—
                                                                                                      (ii) Submit a letter of support from at
                                           percentage of such students across all of                                                                        (i) Closed;
                                                                                                   least one Indian Tribe or Indian
                                           its charter schools during the grant
                                                                                                   organization located within the area to                  (ii) Had their charter(s) revoked due to
                                           period;
                                              (ii) That at least 50 percent of the                 be served by the replicated or expanded               problems with statutory or regulatory
                                           students across all of the charter schools              charter school; and                                   compliance, including compliance with
                                           the applicant operates or manages are                      (iii) Meaningfully collaborate with the            sections 4310(2)(G) and (J) of the ESEA;
                                           individuals from low-income families,                   Indian Tribe(s) or Indian organization(s)             or
                                           and that the applicant will maintain the                from which the applicant has received                    (iii) Had their affiliation with the
                                           same, or a substantially similar,                       a letter of support in a timely, active,              applicant revoked or terminated,
                                           percentage of such students across all of               and ongoing manner with respect to the                including through voluntary
                                           its charter schools during the grant                    development and implementation of the                 disaffiliation.
                                           period; or                                              educational program at the charter                       (c) Provide a complete logic model (as
                                              (iii) That at least 60 percent of the                school.                                               defined in 34 CFR 77.1) for the grant
                                           students across all of the charter schools                                                                    project. The logic model must include
                                                                                                   Types of Priorities
                                           the applicant operates or manages are                                                                         the applicant’s objectives for replicating
                                           individuals from low-income families,                      When inviting applications for a                   or expanding one or more high-quality
                                           and that the applicant will maintain the                competition using one or more                         charter schools with funding under this
                                           same, or a substantially similar,                       priorities, we designate the type of each             program, including the number of high-
                                           percentage of such students across all of               priority as absolute, competitive                     quality charter schools the applicant
                                           its charter schools during the grant                    preference, or invitational through a                 proposes to replicate or expand.
                                           period.                                                 notice in the Federal Register. The                      (d) If the applicant currently operates,
                                                                                                   effect of each type of priority follows:              or is proposing to replicate or expand,
                                           Priority 5—Number of Charter Schools                       Absolute priority: Under an absolute               a single-sex charter school or
                                           Operated or Managed by the Eligible                     priority, we consider only applications               coeducational charter school that
                                           Applicant                                               that meet the priority (34 CFR                        provides a single-sex class or
                                             Under this priority, applicants must                  75.105(c)(3)).                                        extracurricular activity (collectively
                                           demonstrate one of the following—                          Competitive preference priority:                   referred to as a ‘‘single-sex educational
                                             (i) That they currently operate or                    Under a competitive preference priority,              program’’), demonstrate that the existing
                                           manage two to five charter schools;                     we give competitive preference to an                  or proposed single-sex educational
                                             (ii) That they currently operate or                   application by (1) awarding additional                program is in compliance with title IX
                                           manage six to 20 charter schools; or                    points, depending on the extent to                    of the Education Amendments of 1972
                                             (iii) That they currently operate or                  which the application meets the priority              (20 U.S.C. 1681, et seq.) and its
                                           manage 21 or more charter schools.                      (34 CFR 75.105(c)(2)(i)); or (2) selecting            implementing regulations, including 34
                                           Priority 6—Rural Community                              an application that meets the priority                CFR 106.34.
                                                                                                   over an application of comparable merit                  (e) Describe how the applicant
                                             Under this priority, applicants must                                                                        currently operates or manages the high-
                                                                                                   that does not meet the priority (34 CFR
                                           propose to replicate or expand one or                                                                         quality charter schools for which it has
                                                                                                   75.105(c)(2)(ii)).
                                           more high-quality charter schools in—                                                                         presented evidence of success and how
                                             (i) A rural community; or                                Invitational priority: Under an
                                             (ii) A community that is not a rural                  invitational priority, we are particularly            the proposed replicated or expanded
                                           community.                                              interested in applications that meet the              charter schools will be operated or
                                                                                                   priority. However, we do not give an                  managed, including the legal
                                           Priority 7—Replicating or Expanding                     application that meets the priority a                 relationship between the applicant and
                                           High-Quality Charter Schools To Serve                   preference over other applications (34                its schools. If a legal entity other than
                                           Native American Students                                CFR 75.105(c)(1)).                                    the applicant has entered or will enter
                                             Under this priority, applicants must—                                                                       into a performance contract with an
                                                                                                   Final Requirements
                                             (i) Propose to replicate or expand one                                                                      authorized public chartering agency to
                                           or more high-quality charter schools                      Applicants for funds under this                     operate or manage one or more of the
                                           that—                                                   program must meet one or more of the                  applicant’s schools, the applicant must
                                             (A) Utilize targeted outreach and                     following requirements—                               also describe its relationship with that
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                                           recruitment in order to serve a high                      (a) Demonstrate that the applicant                  entity.
                                           proportion of Native American students,                 currently operates or manages more                       (f) Describe how the applicant will
                                           consistent with nondiscrimination                       than one charter school. For purposes of              solicit and consider input from parents
                                           requirements contained in the U.S.                      this program, multiple charter schools                and other members of the community
                                           Constitution and Federal civil rights                   are considered to be separate schools if              on the implementation and operation of
                                           laws;                                                   each school—                                          each replicated or expanded charter


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                                           61544            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations

                                           school, including in the area of school                    High proportion, when used to refer to                (ii) Is legally authorized within such
                                           governance.                                             Native American students, means a fact-               State to provide a program of education
                                             (g) Describe the lottery and                          specific, case-by-case determination                  beyond secondary education;
                                           enrollment procedures that will be used                 based upon the unique circumstances of                   (iii) Provides an educational program
                                           for each replicated or expanded charter                 a particular charter school or proposed               for which the institution awards a
                                           school if more students apply for                       charter school. The Secretary considers               bachelor’s degree or provides not less
                                           admission than can be accommodated,                     ‘‘high proportion’’ to include a majority             than a 2-year program that is acceptable
                                           including how any proposed weighted                     of Native American students. In                       for full credit toward such a degree, or
                                           lottery complies with section                           addition, the Secretary may determine                 awards a degree that is acceptable for
                                           4303(c)(3)(A) of the ESEA.                              that less than a majority of Native                   admission to a graduate or professional
                                             (h) Describe how the applicant will                   American students constitutes a ‘‘high                degree program, subject to review and
                                           ensure that all eligible children with                  proportion’’ based on the unique                      approval by the Secretary;
                                           disabilities receive a free appropriate                 circumstances of a particular charter                    (iv) Is a public or other nonprofit
                                           public education in accordance with                     school or proposed charter school, as                 institution; and
                                           part B of the IDEA.                                     described in the application for funds.                  (v) Is accredited by a nationally
                                             (i) Describe how the proposed project                    Indian organization means an                       recognized accrediting agency or
                                           will assist educationally disadvantaged                 organization that—                                    association, or if not so accredited, is an
                                           students in mastering challenging State                    (1) Is legally established—                        institution that has been granted
                                           academic standards.                                        (i) By Tribal or inter-Tribal charter or           preaccreditation status by such an
                                             (j) Provide a budget narrative, aligned               in accordance with State or Tribal law;               agency or association that has been
                                           with the activities, target grant project               and                                                   recognized by the Secretary for the
                                           outputs, and outcomes described in the                     (ii) With appropriate constitution, by-            granting of preaccreditation status, and
                                           logic model, that outlines how grant                    laws, or articles of incorporation;                   the Secretary has determined that there
                                           funds will be expended to carry out                        (2) Includes in its purposes the                   is satisfactory assurance that the
                                           planned activities.                                     promotion of the education of Indians;                institution will meet the accreditation
                                             (k) Provide the applicant’s most                         (3) Is controlled by a governing board,            standards of such an agency or
                                           recent independently audited financial                  the majority of which is Indian;                      association within a reasonable time.
                                           statements prepared in accordance with                     (4) If located on an Indian reservation,              Native American means an Indian
                                           generally accepted accounting                           operates with the sanction or by charter              (including an Alaska Native), Native
                                           principles.                                             of the governing body of that                         Hawaiian, or Native American Pacific
                                             (l) Describe the applicant’s policies                 reservation;                                          Islander.
                                           and procedures to assist students                          (5) Is neither an organization or                     Native American language means the
                                           enrolled in a charter school that closes                subdivision of, nor under the direct                  historical, traditional languages spoken
                                           or loses its charter to attend other high-              control of, any institution of higher                 by Native Americans.
                                           quality schools.                                        education; and                                           Rural community means a community
                                             (m) Provide—                                             (6) Is not an agency of State or local             that is served by a local educational
                                             (i) A request and justification for                   government.                                           agency that is eligible to apply for funds
                                           waivers of any Federal statutory or                        Indian Tribe means a federally-                    under the Small Rural School
                                           regulatory provisions that the applicant                recognized or a State-recognized Tribe.               Achievement (SRSA) program or the
                                           believes are necessary for the successful                  Individual from a low-income family                Rural and Low-Income School (RLIS)
                                           operation of the charter schools to be                  means an individual who is determined                 program authorized under title V, part B
                                           replicated or expanded; and                             by a State educational agency or local                of the ESEA. Applicants may determine
                                             (ii) A description of any State or local              educational agency to be a child from a               whether a particular local educational
                                           rules, generally applicable to public                   low-income family on the basis of (a)                 agency is eligible for these programs by
                                           schools, that will be waived, or                        data used by the Secretary to determine               referring to information on the following
                                           otherwise not apply, to such schools.                   allocations under section 1124 of the                 Department websites. For the SRSA
                                                                                                   ESEA, (b) data on children eligible for               program: www2.ed.gov/programs/
                                           Final Definitions                                       free or reduced-price lunches under the               reapsrsa/eligible16/index.html. For the
                                             Academically poor-performing public                   Richard B. Russell National School                    RLIS program: www2.ed.gov/programs/
                                           school means:                                           Lunch Act, (c) data on children in                    reaprlisp/eligibility.html.
                                             (a) A school identified by the State for              families receiving assistance under part
                                           comprehensive support and                               A of title IV of the Social Security Act,             Final Selection Criteria
                                           improvement under section                               (d) data on children eligible to receive                (a) Quality of the eligible applicant. In
                                           1111(c)(4)(D)(i) of the ESEA; or                        medical assistance under the Medicaid                 determining the quality of the eligible
                                             (b) A public school otherwise                         program under title XIX of the Social                 applicant, the Secretary considers one
                                           identified by the State or, in the case of              Security Act, or (e) an alternate method              or more of the following factors:
                                           a charter school, its authorized public                 that combines or extrapolates from the                  (i) The extent to which the academic
                                           chartering agency, as similarly                         data in items (a) through (d) of this                 achievement results (including annual
                                           academically poor-performing.                           definition.                                           student performance on statewide
                                             Educationally disadvantaged student                      Institution of higher education means              assessments, annual student attendance
                                           means a student in one or more of the                   an educational institution in any State               and retention rates, and, where
                                           categories described in section                         that—                                                 applicable and available, student
                                           1115(c)(2) of the ESEA, which include                      (i) Admits as regular students only                academic growth, high school
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                                           children who are economically                           persons having a certificate of                       graduation rates, college attendance
                                           disadvantaged, students who are                         graduation from a school providing                    rates, and college persistence rates) for
                                           children with disabilities, migrant                     secondary education, or the recognized                educationally disadvantaged students
                                           students, English learners, neglected or                equivalent of such a certificate, or                  served by the charter schools operated
                                           delinquent students, homeless students,                 persons who meet the requirements of                  or managed by the applicant have
                                           and students who are in foster care.                    section 484(d)of the HEA;                             exceeded the average academic


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                                                            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations                                         61545

                                           achievement results for such students                   replicated or expanded charter schools                proposed regulatory action is not
                                           served by other public schools in the                   after the grant has ended, as                         significant, the requirements of
                                           State.                                                  demonstrated by the multi-year                        Executive Order 13771 do not apply.
                                              (ii) The extent to which one or more                 financial and operating model required                   We have also reviewed this final
                                           charter schools operated or managed by                  under section 4305(b)(3)(B)(iii) of the               regulatory action under Executive Order
                                           the applicant have closed; have had a                   ESEA.                                                 13563, which supplements and
                                           charter revoked due to noncompliance                       This document does not preclude us                 explicitly reaffirms the principles,
                                           with statutory or regulatory                            from proposing additional priorities,                 structures, and definitions governing
                                           requirements; or have had their                         requirements, definitions, or selection               regulatory review established in
                                           affiliation with the applicant revoked or               criteria, subject to meeting applicable               Executive Order 12866. To the extent
                                           terminated, including through voluntary                 rulemaking requirements.                              permitted by law, Executive Order
                                           disaffiliation.                                            Note: This document does not solicit               13563 requires that an agency—
                                              (iii) The extent to which one or more                applications. In any year in which we                    (1) Propose or adopt regulations only
                                           charter schools operated or managed by                  choose to use one or more of these                    upon a reasoned determination that
                                           the applicant have had any significant                  priorities, requirements, definitions, and            their benefits justify their costs
                                           issues in the area of financial or                      selection criteria, we invite applications            (recognizing that some benefits and
                                           operational management or student                       through a notice in the Federal Register.             costs are difficult to quantify);
                                           safety, or have otherwise experienced                                                                            (2) Tailor its regulations to impose the
                                           significant problems with statutory or                  Executive Orders 12866, 13563, and
                                                                                                   13771                                                 least burden on society, consistent with
                                           regulatory compliance that could lead to                                                                      obtaining regulatory objectives and
                                           revocation of the school’s charter.                     Regulatory Impact Analysis                            taking into account—among other things
                                              (b) Significance of contribution in                                                                        and to the extent practicable—the costs
                                                                                                      Under Executive Order 12866, it must
                                           assisting educationally disadvantaged                                                                         of cumulative regulations;
                                                                                                   be determined whether this regulatory
                                           students.                                                                                                        (3) In choosing among alternative
                                              In determining the significance of the               action is ‘‘significant’’ and, therefore,
                                                                                                   subject to the requirements of the                    regulatory approaches, select those
                                           contribution the proposed project will                                                                        approaches that maximize net benefits
                                           make in expanding educational                           Executive order and subject to review by
                                                                                                   the Office of Management and Budget                   (including potential economic,
                                           opportunities for educationally                                                                               environmental, public health and safety,
                                           disadvantaged students and enabling                     (OMB). Section 3(f) of Executive Order
                                                                                                   12866 defines a ‘‘significant regulatory              and other advantages; distributive
                                           those students to meet challenging State                                                                      impacts; and equity);
                                           academic standards, the Secretary                       action’’ as an action likely to result in
                                                                                                   a rule that may—                                         (4) To the extent feasible, specify
                                           considers one or more of the following                                                                        performance objectives, rather than the
                                           factors:                                                   (1) Have an annual effect on the
                                                                                                   economy of $100 million or more, or                   behavior or manner of compliance a
                                              (i) The extent to which charter
                                                                                                   adversely affect a sector of the economy,             regulated entity must adopt; and
                                           schools currently operated or managed
                                                                                                   productivity, competition, jobs, the                     (5) Identify and assess available
                                           by the applicant serve educationally
                                                                                                   environment, public health or safety, or              alternatives to direct regulation,
                                           disadvantaged students, particularly
                                                                                                   State, local, or Tribal governments or                including economic incentives—such as
                                           students with disabilities and English
                                                                                                   communities in a material way (also                   user fees or marketable permits—to
                                           learners, at rates comparable to
                                                                                                   referred to as an ‘‘economically                      encourage the desired behavior, or
                                           surrounding public schools or, in the
                                                                                                   significant’’ rule);                                  provide information that enables the
                                           case of virtual charter schools, at rates
                                                                                                      (2) Create serious inconsistency or                public to make choices.
                                           comparable to public schools in the
                                                                                                   otherwise interfere with an action taken                 Executive Order 13563 also requires
                                           State.
                                              (ii) The quality of the plan to ensure               or planned by another agency;                         an agency ‘‘to use the best available
                                           that the charter schools the applicant                     (3) Materially alter the budgetary                 techniques to quantify anticipated
                                           proposes to replicate or expand will                    impacts of entitlement grants, user fees,             present and future benefits and costs as
                                           recruit, enroll, and effectively serve                  or loan programs or the rights and                    accurately as possible.’’ The Office of
                                           educationally disadvantaged students,                   obligations of recipients thereof; or                 Information and Regulatory Affairs of
                                           particularly students with disabilities                    (4) Raise novel legal or policy issues             OMB has emphasized that these
                                           and English learners.                                   arising out of legal mandates, the                    techniques may include ‘‘identifying
                                              (c) Quality of the evaluation plan for               President’s priorities, or the principles             changing future compliance costs that
                                           the proposed project.                                   stated in the Executive order.                        might result from technological
                                              In determining the quality of the                       This final regulatory action is not a              innovation or anticipated behavioral
                                           evaluation plan for the proposed                        significant regulatory action subject to              changes.’’
                                           project, the Secretary considers the                    review by OMB under section 3(f) of                      We are issuing these final priorities,
                                           extent to which the methods of                          Executive Order 12866.                                requirements, definitions, and selection
                                           evaluation include the use of objective                    Under Executive Order 13771, for                   criteria only on a reasoned
                                           performance measures that are clearly                   each new rule that the Department                     determination that their benefits justify
                                           related to the intended outcomes of the                 proposes for notice and comment or                    their costs. In choosing among
                                           proposed project, as described in the                   otherwise promulgates that is a                       alternative regulatory approaches, we
                                           applicant’s logic model (as defined in 34               significant regulatory action under                   selected those approaches that
                                           CFR 77.1), and that will produce                        Executive Order 12866, and that                       maximize net benefits. Based on the
                                           quantitative and qualitative data by the                imposes total costs greater than zero, it             analysis that follows, the Department
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                                           end of the grant period.                                must identify two deregulatory actions.               believes that this regulatory action is
                                              (d) Quality of the management plan.                  For Fiscal Year 2019, any new                         consistent with the principles in
                                              In determining the quality of the                    incremental costs associated with a new               Executive Order 13563.
                                           applicant’s management plan, the                        regulation must be fully offset by the                   We also have determined that this
                                           Secretary considers the ability of the                  elimination of existing costs through                 regulatory action does not unduly
                                           applicant to sustain the operation of the               deregulatory actions. Because the                     interfere with State, local, and Tribal


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                                           61546            Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Rules and Regulations

                                           governments in the exercise of their                    requirements, definitions, selection                  LIBRARY OF CONGRESS
                                           governmental functions.                                 criteria, and other provisions in the
                                             In accordance with these Executive                    authorizing statute for this program.                 Copyright Office
                                           orders, the Department has assessed the
                                           potential costs and benefits, both                      Paperwork Reduction Act of 1995                       37 CFR Parts 201 and 202
                                           quantitative and qualitative, of this
                                                                                                      The final priorities, requirements, and            [Docket Nos. 2018–2, 2018–3]
                                           regulatory action. The potential costs
                                           are those resulting from statutory                      selection criteria contain information
                                                                                                   collection requirements that are                      Group Registration of Newsletters and
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                                           programs and activities.                                requirements, and selection criteria do               of Congress.
                                                                                                   not affect the currently approved data                ACTION: Final rule.
                                           Discussion of Potential Costs and                       collection.
                                           Benefits                                                                                                      SUMMARY:    The U.S. Copyright Office is
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                                           regulatory action does not impose                                                                             group registration options for
                                                                                                   12372 and the regulations in 34 CFR                   newsletters and serials. With respect to
                                           significant costs on eligible entities,
                                                                                                   part 79. One of the objectives of the                 group newsletters, the final rule amends
                                           whose participation in this program is
                                           voluntary. While this action does                       Executive order is to foster an                       the definition of ‘‘newsletter,’’
                                           impose some requirements on                             intergovernmental partnership and a                   eliminating the requirement that each
                                           participating CMOs that are cost-                       strengthened federalism. The Executive                issue must be a work made for hire, and
                                           bearing, the Department expects that                    order relies on processes developed by                the provision stating that group
                                           applicants for this program will include                State and local governments for                       newsletter claims must be received
                                           in their proposed budgets a request for                 coordination and review of proposed                   within three months after publication.
                                           funds to support compliance with such                   Federal financial assistance.                         Under the final rule, newsletter
                                           cost-bearing requirements. Therefore,                                                                         publishers now should register their
                                                                                                      This document provides early
                                           costs associated with meeting these                                                                           issues with the online application and
                                                                                                   notification of our specific plans and
                                           requirements are, in the Department’s                                                                         upload a digital copy of each issue
                                                                                                   actions for this program.                             through the electronic registration
                                           estimation, minimal.
                                             This regulatory action strengthens                       Accessible Format: Individuals with                system instead of submitting them in a
                                           accountability for the use of Federal                   disabilities can obtain this document in              physical form. With respect to group
                                           funds by helping to ensure that the                     an accessible format (e.g., braille, large            serials, the final rule clarifies that serials
                                           Department selects for CSP grants the                   print, audiotape, or compact disc) on                 governed by the rule generally must be
                                           CMOs that are most capable of                           request to the program contact person                 published at intervals of a week or
                                           expanding the number of high-quality                    listed under FOR FURTHER INFORMATION                  longer, and that the publication dates
                                           charter schools available to our Nation’s               CONTACT.                                              provided in the application need not
                                           students, consistent with a major                                                                             match the dates appearing on the issues
                                                                                                      Electronic Access to This Document:
                                           purpose of the CSP as described in                                                                            themselves. In addition, the rule phases
                                                                                                   The official version of this document is
                                           section 4301(3) of the ESEA. The                                                                              out the paper application for group
                                                                                                   the document published in the Federal
                                           Department believes that these benefits                                                                       serials and the submission of physical
                                                                                                   Register. You may access the official                 copies. Beginning one year after the rule
                                           to the Federal government and to State                  edition of the Federal Register and the
                                           educational agencies outweigh the costs                                                                       goes into effect, serial publishers will be
                                                                                                   Code of Federal Regulations via the                   required to use the online application
                                           associated with this action.                            Federal Digital System at: www.gpo.gov/               for group serials and to upload a digital
                                           Regulatory Alternatives Considered                      fdsys. At this site you can view this                 copy of each issue, rather than
                                              The Department believes that the                     document, as well as all other                        submitting them in a physical form. The
                                           priorities, requirements, definitions, and              documents of the Department published                 final rule updates the regulations for
                                           selection criteria are needed to                        in the Federal Register, in text or                   both newsletters and serials by
                                           administer the program effectively. As                  Portable Document Format (PDF). To                    confirming that publishers do not need
                                           an alternative to the selection criteria                use PDF you must have Adobe Acrobat                   to provide the Library of Congress with
                                           announced in this document, the                         Reader, which is available free at the                complimentary subscriptions to or
                                           Department could choose from among                      site.                                                 microfilm of each issue as a condition
                                           the selection criteria authorized for CSP                  You may also access documents of the               for registering their works with the
                                           grants to CMOs in section 4305(b) of the                Department published in the Federal                   Office, but newsletter and serial issues
                                           ESEA (20 U.S.C. 7221c) and the general                  Register by using the article search                  that are submitted for purposes of
                                           selection criteria in 34 CFR 75.210. We                                                                       registration will no longer satisfy the
                                                                                                   feature at: www.federalregister.gov.
                                           do not believe that these criteria provide                                                                    mandatory deposit requirement.
                                                                                                   Specifically, through the advanced
                                           a sufficient basis on which to evaluate                                                                       Publishers will be expected to
                                                                                                   search feature at this site, you can limit            separately provide the Library with two
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                                                                                                   your search to documents published by                 complimentary subscriptions if the
                                           the criteria do not sufficiently enable
                                           the Department to assess an applicant’s                 the Department.                                       newsletter or serial is published in the
                                           past performance with respect to the                      Dated: November 27, 2018.                           United States in a physical format
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                                           operation of high-quality charter schools               James C. Blew,                                        (unless the publisher is informed that
                                           or with respect to compliance issues                    Acting Assistant Deputy Secretary for                 the publication is not needed for the
                                           that the applicant has encountered.                     Innovation and Improvement.                           Library’s collections). If the newsletter
                                              We note that several of the final                    [FR Doc. 2018–26095 Filed 11–29–18; 8:45 am]
                                                                                                                                                         or serial is published solely in
                                           priorities, requirements, definitions, and                                                                    electronic form, the publisher will
                                                                                                   BILLING CODE 4000–01–P
                                           selection criteria are based on priorities,                                                                   remain exempt from mandatory deposit


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Document Created: 2018-11-30 04:35:15
Document Modified: 2018-11-30 04:35:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal priorities, requirements, definitions, and selection criteria.
DatesThese priorities, requirements, definitions, and selection criteria are effective November 30, 2018.
ContactAllison Holte, U.S. Department of Education, 400 Maryland Avenue SW, Room 4W243, Washington, DC 20202. Telephone: (202) 205-7726.
FR Citation83 FR 61532 
RIN Number1855-AA14

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