[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5984 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 5984
To amend the Elementary and Secondary Education Act of 1965 to improve
oversight of private charter management organizations, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2020
Ms. Tlaib (for herself, Mr. Blumenauer, Mr. Cicilline, Mr. Clay, Mr.
DeFazio, Ms. DeLauro, Mrs. Dingell, Mr. Garcia of Illinois, Ms. Garcia
of Texas, Ms. Haaland, Mrs. Hayes, Ms. Jayapal, Ms. Kelly of Illinois,
Mr. Khanna, Mr. Kildee, Mrs. Lawrence, Mr. Levin of Michigan, Mr.
McNerney, Ms. Moore, Ms. Ocasio-Cortez, Ms. Omar, Mr. Pocan, Ms.
Porter, Ms. Pressley, Mr. Raskin, Mr. Ryan, Ms. Schakowsky, Ms. Sewell
of Alabama, Ms. Shalala, Ms. Slotkin, Ms. Stevens, Mr. Vela, Ms.
Velazquez, Ms. Wild, and Mr. Wilson of South Carolina) introduced the
following bill; which was referred to the Committee on Education and
Labor
_______________________________________________________________________
A BILL
To amend the Elementary and Secondary Education Act of 1965 to improve
oversight of private charter management organizations, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Charter Oversight, Accountability,
and Transparency Act'' or the ``COAT Act''.
SEC. 2. OVERSIGHT OF PRIVATE CHARTER MANAGEMENT ORGANIZATIONS.
(a) State Plan Assurance.--Section 1111(g) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311(g)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (M), by striking ``and'' at the
end;
(B) in subparagraph (N), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(O) the State educational agency will ensure that
each contract between a charter school located in the
State and a private charter management organization for
the operation or management of the charter school
satisfies the requirements described in paragraph
(5).''; and
(2) by adding at the end the following new paragraph:
``(5) Private charter management organization oversight.--
``(A) In general.--A contract described in
paragraph (2)(O) shall require a private charter
management organization to comply, while under
contract, with the following:
``(i) Annual disclosures.--The private
charter management organization shall disclose
annually to the Secretary, for the most
recently completed fiscal year, the following
information:
``(I) The identity of each charter
school operated or managed by the
private charter management
organization.
``(II) The identity of each
executive, including the chief
executive officer, chief operating
officer, chief financial officer, and
general counsel, of the private charter
management organization (with updates
provided to the Secretary not later
than one month after a change with
respect to any such executive).
``(III) The salary of each such
executive.
``(IV) The amount earned in excess
of salary by each such executive.
``(V) The amount expended by the
private charter management organization
on the following:
``(aa) The operations of
each charter school that is
served by the private charter
management organization.
``(bb) The administration
of the private charter
management organization,
excluding amounts accounted for
under item (aa).
``(VI) An audited income statement
and balance sheet demonstrating
revenue, costs, and profit margin
(prepared in accordance with generally
accepted accounting principles).
``(VII) The amount expended by the
private charter management
organization, and the percentage of the
annual budget of the private charter
management organization that each such
amount comprises, for the following:
``(aa) Administrative
costs.
``(bb) Costs of advertising
and marketing.
``(cc) Salary and benefits
for teachers, support staff,
school leaders (including the
principal and vice principal),
and special education
instructional support staff.
``(dd) Costs of
instructional supplies,
including books, writing
material, and curriculum
material.
``(ee) Any other cost
exceeding one percent of the
annual budget of the private
charter management
organization.
``(VIII) Whether the private
charter management organization is a
for-profit or nonprofit organization.
``(IX) The identity of any entity
that has entered into a contract with
the private charter management
organization and with respect to which
the private charter management
organization--
``(aa) owns a security;
``(bb) extends credit;
``(cc) is a parent,
subsidiary, or sibling company;
or
``(dd) is under common
control.
``(ii) Board meetings.--The private charter
management organization shall--
``(I) hold board meetings that are
open to the public;
``(II) one week prior to the date
of a board meeting, issue a public
notice of the meeting; and
``(III) ensure that board meetings
are reasonably accessible to the
community by holding the meetings
during a time of day that is reasonably
convenient for the parents of children
enrolled in a charter school served by
the private charter management
organization.
``(B) Private charter management organization
defined.--For purposes of this subsection, the term
`private charter management organization' means a
private organization that operates or manages a charter
school or a network of charter schools linked by
centralized support, operations, and oversight, without
regard to whether such organization is a for-profit or
nonprofit organization.''.
(b) Public Availability and Report to Congress.--Not later than six
months after receiving information disclosed pursuant to section
1111(g)(5) of the Elementary and Secondary Education Act of 1965, as
added by subsection (a), the Secretary of Education shall--
(1) make available the information on a public website of
the Department of Education; and
(2) submit to the Committee on Education and Labor of the
House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate a report
containing the information.
(c) Effective Date.--The amendment made in subsection (a) shall
apply with respect to contracts entered into, renewed, or modified on
or after the date of the enactment of this Act.
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