39–006 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–423 

SUCCESS AND OPPORTUNITY THROUGH QUALITY 

CHARTER SCHOOLS ACT 

APRIL 29, 2014.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. KLINE, from the Committee on Education and the Workforce, 

submitted the following 

R E P O R T 

[To accompany H.R. 10] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Education and the Workforce, to whom was 

referred the bill (H.R. 10) to amend the charter school program 

under the Elementary and Secondary Education Act of 1965, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Success and Opportunity through Quality Charter 

Schools Act’’. 

SEC. 2. REFERENCES. 

Except as otherwise specifically provided, whenever in this Act a section or other 

provision is amended or repealed, such amendment or repeal shall be considered to 

be made to that section or other provision of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.). 

SEC. 3. SUBPART HEADING; PURPOSE. 

(a) SUBPART HEADING.—The heading for subpart 1 of part B of title V (20 U.S.C. 

7221 et seq.) is amended to read as follows: ‘‘Charter School Program’’. 

(b) PURPOSE.—Section 5201 (20 U.S.C. 7221) is amended to read as follows: 

‘‘SEC. 5201. PURPOSE. 

‘‘It is the purpose of this subpart to— 

‘‘(1) improve the United States education system and education opportunities 

for all Americans by supporting innovation in public education in public school 

settings that prepare students to compete and contribute to the global economy; 

‘‘(2) provide financial assistance for the planning, program design, and initial 

implementation of charter schools; 

‘‘(3) expand the number of high-quality charter schools available to students 

across the Nation; 


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‘‘(4) evaluate the impact of such schools on student achievement, families, and 

communities, and share best practices between charter schools and other public 

schools; 

‘‘(5) encourage States to provide support to charter schools for facilities financing in an amount more nearly commensurate to the amount the States 

have typically provided for traditional public schools; 

‘‘(6) improve student services to increase opportunities for students with disabilities, limited English proficient students, and other traditionally underserved students to attend charter schools and meet challenging State academic 

achievement standards; 

‘‘(7) support efforts to strengthen the charter school authorizing process to improve performance management, including transparency, oversight, monitoring, 

and evaluation of such schools; and 

‘‘(8) support quality accountability and transparency in the operational performance of all authorized public chartering agencies, which include State educational agencies, local educational agencies, and other authorizing entities.’’. 

SEC. 4. PROGRAM AUTHORIZED. 

Section 5202 (20 U.S.C. 7221a) is amended to read as follows: 

‘‘SEC. 5202. PROGRAM AUTHORIZED. 

‘‘(a) IN GENERAL.—This subpart authorizes the Secretary to carry out a charter 

school program that supports charter schools that serve elementary school and secondary school students by— 

‘‘(1) supporting the startup of charter schools, and the replication and expansion of high-quality charter schools; 

‘‘(2) assisting charter schools in accessing credit to acquire and renovate facilities for school use; and 

‘‘(3) carrying out national activities to support— 

‘‘(A) charter school development; 

‘‘(B) the dissemination of best practices of charter schools for all schools; 

‘‘(C) the evaluation of the impact of the program on schools participating 

in the program; and 

‘‘(D) stronger charter school authorizing. 

‘‘(b) FUNDING ALLOTMENT.—From the amount made available under section 5211 

for a fiscal year, the Secretary shall— 

‘‘(1) reserve 12.5 percent to support charter school facilities assistance under 

section 5204; 

‘‘(2) reserve not more than 10 percent to carry out national activities under 

section 5205; and 

‘‘(3) use the remaining amount after the Secretary reserves funds under paragraphs (1) and (2) to carry out section 5203. 

‘‘(c) PRIOR GRANTS AND SUBGRANTS.—The recipient of a grant or subgrant under 

this subpart or subpart 2, as such subpart was in effect on the day before the date 

of enactment of the Success and Opportunity through Quality Charter Schools Act, 

shall continue to receive funds in accordance with the terms and conditions of such 

grant or subgrant.’’. 

SEC. 5. GRANTS TO SUPPORT HIGH-QUALITY CHARTER SCHOOLS. 

Section 5203 (20 U.S.C. 7221b) is amended to read as follows: 

‘‘SEC. 5203. GRANTS TO SUPPORT HIGH-QUALITY CHARTER SCHOOLS. 

‘‘(a) IN GENERAL.—From the amount reserved under section 5202(b)(3), the Secretary shall award grants to State entities having applications approved pursuant 

to subsection (f) to enable such entities to— 

‘‘(1) award subgrants to eligible applicants for opening and preparing to operate— 

‘‘(A) new charter schools; 

‘‘(B) replicated, high-quality charter school models; or 

‘‘(C) expanded, high-quality charter schools; and 

‘‘(2) provide technical assistance to eligible applicants and authorized public 

chartering agencies in carrying out the activities described in paragraph (1) and 

work with authorized public chartering agencies in the State to improve authorizing quality. 

‘‘(b) STATE USES OF FUNDS.— 

‘‘(1) IN GENERAL.—A State entity receiving a grant under this section shall— 

‘‘(A) use not less than 90 percent of the grant funds to award subgrants 

to eligible applicants, in accordance with the quality charter school program 

described in the State entity’s application approved pursuant to subsection 

(f), for the purposes described in subparagraphs (A) through (C) of subsection (a)(1); 


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‘‘(B) reserve not less than 7 percent of such funds to carry out the activities described in subsection (a)(2); and 

‘‘(C) reserve not more than 3 percent of such funds for administrative 

costs which may include technical assistance. 

‘‘(2) CONTRACTS AND GRANTS.—A State entity may use a grant received under 

this section to carry out the activities described in subparagraphs (A) and (B) 

of paragraph (1) directly or through grants, contracts, or cooperative agreements. 

‘‘(3) RULE OF CONSTRUCTION.—Nothing in this Act shall prohibit the Secretary 

from awarding grants to States that use a weighted lottery to give slightly better chances for admission to all, or a subset of, educationally disadvantaged students if— 

‘‘(A) the use of weighted lotteries in favor of such students is not prohibited by State law, and such State law is consistent with laws described in 

section 5210(1)(G); and 

‘‘(B) such weighted lotteries are not used for the purpose of creating 

schools exclusively to serve a particular subset of students. 

‘‘(c) PROGRAM PERIODS; PEER REVIEW; GRANT NUMBER AND AMOUNT; DIVERSITY OF

PROJECTS; WAIVERS.— ‘‘(1) PROGRAM PERIODS.— ‘‘(A) GRANTS.—A grant awarded by the Secretary to a State entity under 

this section shall be for a period of not more than 5 years. 

‘‘(B) SUBGRANTS.—A subgrant awarded by a State entity under this section shall be for a period of not more than 5 years, of which an eligible applicant may use not more than 18 months for planning and program design. 

‘‘(2) PEER REVIEW.—The Secretary, and each State entity receiving a grant 

under this section, shall use a peer review process to review applications for assistance under this section. 

‘‘(3) GRANT AWARDS.—The Secretary shall— 

‘‘(A) for each fiscal year for which funds are appropriated under section 

5211— 

‘‘(i) award not less than 3 grants under this section; 

‘‘(ii) wholly fund each grant awarded under this section, without 

making continuation awards; and 

‘‘(iii) fully obligate the funds appropriated for the purpose of awarding grants under this section in the fiscal year for which such grants 

are awarded; and 

‘‘(B) midway through the grant period of each grant awarded under this 

section to a State entity, review the grant to determine whether the State 

entity will meet the agreed upon uses of funds in the State entity’s application, and if not, reallot the grant funds that will not be used for such agreed 

upon uses of funds to other State entities during the succeeding grant competition under this section. 

‘‘(4) DIVERSITY OF PROJECTS.—Each State entity receiving a grant under this 

section shall award subgrants under this section in a manner that, to the extent 

possible, ensures that such subgrants— 

‘‘(A) are distributed throughout different areas, including urban, suburban, and rural areas; and 

‘‘(B) will assist charter schools representing a variety of educational approaches. 

‘‘(5) WAIVERS.—The Secretary may waive any statutory or regulatory requirement over which the Secretary exercises administrative authority except any 

such requirement relating to the elements of a charter school described in section 5210(1), if— 

‘‘(A) the waiver is requested in an approved application under this section; and 

‘‘(B) the Secretary determines that granting such a waiver will promote 

the purpose of this subpart. 

‘‘(d) LIMITATIONS.— 

‘‘(1) GRANTS.—A State entity may not receive more than 1 grant under this 

section for a 5-year period. 

‘‘(2) SUBGRANTS.—An eligible applicant may not receive more than 1 subgrant 

under this section per individual charter school for a 5-year period, unless the 

eligible applicant demonstrates to the State entity not less than 3 years of improved educational results in the areas described in subparagraphs (A) and (D) 

of section 5210(8) for students enrolled in such charter school. 

‘‘(e) APPLICATIONS.—A State entity desiring to receive a grant under this section 

shall submit an application to the Secretary at such time and in such manner as 

the Secretary may require. The application shall include the following: 


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‘‘(1) DESCRIPTION OF PROGRAM.—A description of the State entity’s objectives 

under this section and how the objectives of the program will be carried out, 

including a description— 

‘‘(A) of how the State entity— 

‘‘(i) will support the opening of new charter schools, replicated, highquality charter school models, or expanded, high-quality charter 

schools, and a description of the proposed number of each type of charter school or model, if applicable, to be opened under the State entity’s 

program; 

‘‘(ii) will inform eligible charter schools, developers, and authorized 

public chartering agencies of the availability of funds under the program; 

‘‘(iii) will work with eligible applicants to ensure that the eligible applicants access all Federal funds that they are eligible to receive, and 

help the charter schools supported by the applicants and the students 

attending the charter schools— 

‘‘(I) participate in the Federal programs in which the schools and 

students are eligible to participate; 

‘‘(II) receive the commensurate share of Federal funds the schools 

and students are eligible to receive under such programs; and 

‘‘(III) meet the needs of students served under such programs, including student with disabilities and English learners; 

‘‘(iv) will have clear plans and procedures to assist students enrolled 

in a charter school that closes or loses its charter to attend other highquality schools; 

‘‘(v) in the case in which the State entity is not a State educational 

agency— 

‘‘(I) will work with the State educational agency and the charter 

schools in the State to maximize charter school participation in 

Federal and State programs for charter schools; and 

‘‘(II) will work with the State educational agency to adequately 

operate the State entity’s program under this section, where applicable; 

‘‘(vi) will ensure each eligible applicant that receives a subgrant 

under the State entity’s program to open and prepare to operate a new 

charter school, a replicated, high-quality charter school model, or an expanded, high-quality charter school— 

‘‘(I) will ensure such school or model meets the requirements 

under section 5210(1); and 

‘‘(II) is prepared to continue to operate such school or model, in 

a manner consistent with the eligible applicant’s application, after 

the subgrant funds have expired; 

‘‘(vii) will support charter schools in local educational agencies with 

large numbers of schools identified by the State for improvement; 

‘‘(viii) will work with charter schools to promote inclusion of all students and support all students once they are enrolled to promote retention; 

‘‘(ix) will work with charter schools on recruitment practices, including efforts to engage groups that may otherwise have limited opportunities to participate in charter schools, and to ensure such schools do 

not have in effect policies or procedures that may create barriers to enrollment of students, including educationally disadvantaged students, 

and are in compliance with all Federal and State laws on enrollment 

practices; 

‘‘(x) will share best and promising practices between charter schools 

and other public schools, including, where appropriate, instruction and 

professional development in core academic subjects, and science, technology, engineering, and math education, including computer science; 

‘‘(xi) will ensure the charter schools receiving funds under the State 

entity’s program meet the educational needs of their students, including students with disabilities and English learners; 

‘‘(xii) will support efforts to increase quality initiatives, including 

meeting the quality authorizing elements described in paragraph (2)(E); 

‘‘(xiii) in the case of a State entity not described in clause (xiv), will 

provide oversight of authorizing activity, including how the State will 

approve, actively monitor, and re-approve or revoke the authority of an 

authorized public chartering agency based on the performance of the 

charter schools authorized by such agency in the areas of student 


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achievement, student safety, financial management, and compliance 

with all applicable statutes and regulations; and 

‘‘(xiv) in the case of a State entity defined in subsection (i)(4), will 

work with the State to provide assistance to and oversight of authorized public chartering agencies for authorizing activity described in 

clause (xiii); 

‘‘(B) of the extent to which the State entity— 

‘‘(i) is able to meet and carry out the priorities listed in subsection 

(f)(2); and 

‘‘(ii) is working to develop or strengthen a cohesive statewide system 

to support the opening of new charter schools, replicated, high-quality 

charter school models, or expanded, high-quality charter schools; 

‘‘(C) of how the State entity will carry out the subgrant competition, including— 

‘‘(i) a description of the application each eligible applicant desiring to 

receive a subgrant will submit, including— 

‘‘(I) a description of the roles and responsibilities of eligible applicants, partner organizations, and management organizations, including the administrative and contractual roles and responsibilities; 

‘‘(II) a description of the quality controls agreed to between the 

eligible applicant and the authorized public chartering agency involved, such as a contract or performance agreement, how a 

school’s performance in the State’s academic accountability system 

will be a primary factor for renewal or revocation of the school’s 

charter, and how the State entity and the authorized public chartering agency involved will reserve the right to revoke or not renew 

a school’s charter based on financial, structural, or operational factors involving the management of the school; 

‘‘(III) a description of how the eligible applicant will solicit and 

consider input from parents and other members of the community 

on the implementation and operation of each charter school receiving funds under the State entity’s program; and 

‘‘(IV) a description of the planned activities and expenditures for 

the subgrant funds for purposes of opening and preparing to operate a new charter school, a replicated, high-quality charter school 

model, or an expanded, high-quality charter school, and how the 

school or model will maintain financial sustainability after the end 

of the subgrant period; and 

‘‘(ii) a description of how the State entity will review applications; 

‘‘(D) in the case of an entity that partners with an outside organization 

to carry out the State entity’s quality charter school program, in whole or 

in part, of the roles and responsibilities of this partner; 

‘‘(E) of how the State entity will help the charter schools receiving funds 

under the State entity’s program consider the transportation needs of the 

schools’ students; and 

‘‘(F) of how the State entity will support diverse charter school models, 

including models that serve rural communities. 

‘‘(2) ASSURANCES.—Assurances, including a description of how the assurances 

will be met, that— 

‘‘(A) each charter school receiving funds under the State entity’s program 

will have a high degree of autonomy over budget and operations; 

‘‘(B) the State entity will support charter schools in meeting the educational needs of their students as described in paragraph (1)(A)(x); 

‘‘(C) the State entity will ensure that the authorized public chartering 

agency of any charter school that receives funds under the State entity’s 

program— 

‘‘(i) adequately monitors each charter school in recruiting, enrolling, 

and meeting the needs of all students, including students with disabilities and English learners; and 

‘‘(ii) ensures that each charter school solicits and considers input 

from parents and other members of the community on the implementation and operation of the school; 

‘‘(D) the State entity will provide adequate technical assistance to eligible 

applicants to— 

‘‘(i) meet the objectives described in clauses (vii) and (viii) of paragraph (1)(A) and paragraph (2)(B); and 


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‘‘(ii) recruit, enroll, and retain traditionally underserved students, including students with disabilities and English learners, at rates similar 

to traditional public schools; 

‘‘(E) the State entity will promote quality authorizing, such as through 

providing technical assistance and supporting all authorized public chartering agencies in the State to improve the oversight of their charter 

schools, including by— 

‘‘(i) assessing annual performance data of the schools, including, as 

appropriate, graduation rates and student academic growth; 

‘‘(ii) reviewing the schools’ independent, annual audits of financial 

statements conducted in accordance with generally accepted accounting 

principles, and ensuring any such audits are publically reported; and 

‘‘(iii) holding charter schools accountable to the academic, financial, 

and operational quality controls agreed to between the charter school 

and the authorized public chartering agency involved, such as through 

renewal, non-renewal, or revocation of the school’s charter; 

‘‘(F) the State entity will work to ensure that charter schools are included 

with the traditional public schools in decision-making about the public 

school system in the State; and 

‘‘(G) the State entity will ensure that each charter school in the State 

make publicly available, consistent with the dissemination requirements of 

the annual State report card, information to help parents make informed 

decisions about the education options available to their children, including 

information on the educational program, student support services, and annual performance and enrollment data for the groups of students described 

in section 1111(b)(2)(C)(v)(II). 

‘‘(3) REQUESTS FOR WAIVERS.—A request and justification for waivers of any 

Federal statutory or regulatory provisions that the State entity believes are necessary for the successful operation of the charter schools that will receive funds 

under the State entity’s program under this section, and a description of any 

State or local rules, generally applicable to public schools, that will be waived, 

or otherwise not apply to such schools or, in the case of a State entity defined 

in subsection (i)(4), a description of how the State entity will work with the 

State to request necessary waivers where applicable. 

‘‘(f) SELECTION CRITERIA; PRIORITY.— 

‘‘(1) SELECTION CRITERIA.—The Secretary shall award grants to State entities 

under this section on the basis of the quality of the applications submitted 

under subsection (e), after taking into consideration— 

‘‘(A) the degree of flexibility afforded by the State’s public charter school 

law and how the State entity will work to maximize the flexibility provided 

to charter schools under the law; 

‘‘(B) the ambitiousness of the State entity’s objectives for the quality charter school program carried out under this section; 

‘‘(C) the quality of the strategy for assessing achievement of those objectives; 

‘‘(D) the likelihood that the eligible applicants receiving subgrants under 

the program will meet those objectives and improve educational results for 

students; 

‘‘(E) the State entity’s plan to— 

‘‘(i) adequately monitor the eligible applicants receiving subgrants 

under the State entity’s program; 

‘‘(ii) work with the authorized public chartering agencies involved to 

avoid duplication of work for the charter schools and authorized public 

chartering agencies; and 

‘‘(iii) provide adequate technical assistance and support for— 

‘‘(I) the charter schools receiving funds under the State entity’s 

program; and 

‘‘(II) quality authorizing efforts in the State; and 

‘‘(F) the State entity’s plan to solicit and consider input from parents and 

other members of the community on the implementation and operation of 

the charter schools in the State. 

‘‘(2) PRIORITY.—In awarding grants under this section, the Secretary shall 

give priority to State entities to the extent that they meet the following criteria: 

‘‘(A) In the case of a State entity located in a State that allows an entity 

other than a local educational agency to be an authorized public chartering 

agency, the State has a quality authorized public chartering agency that is 

an entity other than a local educational agency. 

‘‘(B) The State entity is located in a State that does not impose any limitation on the number or percentage of charter schools that may exist or the 


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number or percentage of students that may attend charter schools in the 

State. 

‘‘(C) The State entity is located in a State that ensures equitable financing, as compared to traditional public schools, for charter schools and students in a prompt manner. 

‘‘(D) The State entity is located in a State that uses charter schools and 

best practices from charter schools to help improve struggling schools and 

local educational agencies. 

‘‘(E) The State entity partners with an organization that has a demonstrated record of success in developing management organizations to support the development of charter schools in the State. 

‘‘(F) The State entity supports charter schools that support at-risk students through activities such as dropout prevention or dropout recovery. 

‘‘(G) The State entity authorizes all charter schools in the State to serve 

as school food authorities. 

‘‘(H) The State entity has taken steps to ensure that all authorizing public chartering agencies implement best practices for charter school authorizing. 

‘‘(g) LOCAL USES OF FUNDS.—An eligible applicant receiving a subgrant under this 

section shall use such funds to carry out activities related to opening and preparing 

to operate a new charter school, a replicated, high-quality charter school model, or 

an expanded, high-quality charter school, such as— 

‘‘(1) preparing teachers and school leaders, including through professional development; 

‘‘(2) acquiring equipment, educational materials, and supplies; and 

‘‘(3) necessary renovations and minor facilities repairs (excluding construction). 

‘‘(h) REPORTING REQUIREMENTS.—Each State entity receiving a grant under this 

section shall submit to the Secretary, at the end of the third year of the 5-year grant 

period and at the end of such grant period, a report on— 

‘‘(1) the number of students served by each subgrant awarded under this section and, if applicable, how many new students were served during each year 

of the subgrant period; 

‘‘(2) the progress the State entity made toward meeting the priorities described in subsection (f)(2), as applicable; 

‘‘(3) how the State entity met the objectives of the quality charter school program described in the State entity’s application under subsection (e); 

‘‘(4) how the State entity complied with, and ensured that eligible applicants 

complied with, the assurances described in the State entity’s application; 

‘‘(5) how the State entity worked with authorized public chartering agencies, 

including how the agencies worked with the management company or leadership of the schools that received subgrants under this section; and 

‘‘(6) the number of subgrants awarded under this section to carry out each 

of the following: 

‘‘(A) The opening of new charter schools. 

‘‘(B) The opening of replicated, high-quality charter school models. 

‘‘(C) The opening of expanded, high-quality charter schools. 

‘‘(i) STATE ENTITY DEFINED.—For purposes of this section, the term ‘State entity’ 

means— 

‘‘(1) a State educational agency; 

‘‘(2) a State charter school board; 

‘‘(3) a Governor of a State; or 

‘‘(4) a charter school support organization.’’. 

SEC. 6. FACILITIES FINANCING ASSISTANCE. 

Section 5204 (20 U.S.C. 7221c) is amended to read as follows: 

‘‘SEC. 5204. FACILITIES FINANCING ASSISTANCE. 

‘‘(a) GRANTS TO ELIGIBLE ENTITIES.— 

‘‘(1) IN GENERAL.—From the amount reserved under section 5202(b)(1), the 

Secretary shall not use less than 50 percent to award grants to eligible entities 

that have the highest-quality applications approved under subsection (d), after 

considering the diversity of such applications, to demonstrate innovative methods of assisting charter schools to address the cost of acquiring, constructing, 

and renovating facilities by enhancing the availability of loans or bond financing. 

‘‘(2) ELIGIBLE ENTITY DEFINED.—For purposes of this section, the term ‘eligible 

entity’ means— 

‘‘(A) a public entity, such as a State or local governmental entity; 

‘‘(B) a private nonprofit entity; or 


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‘‘(C) a consortium of entities described in subparagraphs (A) and (B). 

‘‘(b) GRANTEE SELECTION.—The Secretary shall evaluate each application submitted under subsection (d), and shall determine whether the application is sufficient to merit approval. 

‘‘(c) GRANT CHARACTERISTICS.—Grants under subsection (a) shall be of a sufficient 

size, scope, and quality so as to ensure an effective demonstration of an innovative 

means of enhancing credit for the financing of charter school acquisition, construction, or renovation. 

‘‘(d) APPLICATIONS.— ‘‘(1) IN GENERAL.—To receive a grant under subsection (a), an eligible entity 

shall submit to the Secretary an application in such form as the Secretary may 

reasonably require. 

‘‘(2) CONTENTS.—An application submitted under paragraph (1) shall contain— 

‘‘(A) a statement identifying the activities proposed to be undertaken with 

funds received under subsection (a), including how the eligible entity will 

determine which charter schools will receive assistance, and how much and 

what types of assistance charter schools will receive; 

‘‘(B) a description of the involvement of charter schools in the application’s development and the design of the proposed activities; 

‘‘(C) a description of the eligible entity’s expertise in capital market financing; 

‘‘(D) a description of how the proposed activities will leverage the maximum amount of private-sector financing capital relative to the amount of 

public funding used and otherwise enhance credit available to charter 

schools, including how the eligible entity will offer a combination of rates 

and terms more favorable than the rates and terms that a charter school 

could receive without assistance from the eligible entity under this section; 

‘‘(E) a description of how the eligible entity possesses sufficient expertise 

in education to evaluate the likelihood of success of a charter school program for which facilities financing is sought; and 

‘‘(F) in the case of an application submitted by a State governmental entity, a description of the actions that the entity has taken, or will take, to 

ensure that charter schools within the State receive the funding the charter 

schools need to have adequate facilities. 

‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible entity receiving a grant under this 

section shall use the funds deposited in the reserve account established under subsection (f) to assist one or more charter schools to access private sector capital to 

accomplish one or more of the following objectives: 

‘‘(1) The acquisition (by purchase, lease, donation, or otherwise) of an interest 

(including an interest held by a third party for the benefit of a charter school) 

in improved or unimproved real property that is necessary to commence or continue the operation of a charter school. 

‘‘(2) The construction of new facilities, or the renovation, repair, or alteration 

of existing facilities, necessary to commence or continue the operation of a charter school. 

‘‘(3) The predevelopment costs required to assess sites for purposes of paragraph (1) or (2) and which are necessary to commence or continue the operation 

of a charter school. 

‘‘(f) RESERVE ACCOUNT.— 

‘‘(1) USE OF FUNDS.—To assist charter schools to accomplish the objectives described in subsection (e), an eligible entity receiving a grant under subsection 

(a) shall, in accordance with State and local law, directly or indirectly, alone or 

in collaboration with others, deposit the funds received under subsection (a) 

(other than funds used for administrative costs in accordance with subsection 

(g)) in a reserve account established and maintained by the eligible entity for 

this purpose. Amounts deposited in such account shall be used by the eligible 

entity for one or more of the following purposes: 

‘‘(A) Guaranteeing, insuring, and reinsuring bonds, notes, evidences of 

debt, loans, and interests therein, the proceeds of which are used for an objective described in subsection (e). 

‘‘(B) Guaranteeing and insuring leases of personal and real property for 

an objective described in subsection (e). 

‘‘(C) Facilitating financing by identifying potential lending sources, encouraging private lending, and other similar activities that directly promote 

lending to, or for the benefit of, charter schools. 

‘‘(D) Facilitating the issuance of bonds by charter schools, or by other 

public entities for the benefit of charter schools, by providing technical, administrative, and other appropriate assistance (including the recruitment of 


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bond counsel, underwriters, and potential investors and the consolidation of 

multiple charter school projects within a single bond issue). 

‘‘(2) INVESTMENT.—Funds received under this section and deposited in the reserve account established under paragraph (1) shall be invested in obligations 

issued or guaranteed by the United States or a State, or in other similarly lowrisk securities. 

‘‘(3) REINVESTMENT OF EARNINGS.—Any earnings on funds received under subsection (a) shall be deposited in the reserve account established under paragraph (1) and used in accordance with such paragraph. 

‘‘(g) LIMITATION ON ADMINISTRATIVE COSTS.—An eligible entity may use not more 

than 2.5 percent of the funds received under subsection (a) for the administrative 

costs of carrying out its responsibilities under this section (excluding subsection (k)). 

‘‘(h) AUDITS AND REPORTS.— ‘‘(1) FINANCIAL RECORD MAINTENANCE AND AUDIT.—The financial records of 

each eligible entity receiving a grant under subsection (a) shall be maintained 

in accordance with generally accepted accounting principles and shall be subject 

to an annual audit by an independent public accountant. 

‘‘(2) REPORTS.— ‘‘(A) GRANTEE ANNUAL REPORTS.—Each eligible entity receiving a grant 

under subsection (a) annually shall submit to the Secretary a report of its 

operations and activities under this section. 

‘‘(B) CONTENTS.—Each annual report submitted under subparagraph (A) 

shall include— 

‘‘(i) a copy of the most recent financial statements, and any accompanying opinion on such statements, prepared by the independent public accountant reviewing the financial records of the eligible entity; 

‘‘(ii) a copy of any report made on an audit of the financial records 

of the eligible entity that was conducted under paragraph (1) during 

the reporting period; 

‘‘(iii) an evaluation by the eligible entity of the effectiveness of its use 

of the Federal funds provided under subsection (a) in leveraging private 

funds; 

‘‘(iv) a listing and description of the charter schools served during the 

reporting period, including the amount of funds used by each school, 

the type of project facilitated by the grant, and the type of assistance 

provided to the charter schools; 

‘‘(v) a description of the activities carried out by the eligible entity 

to assist charter schools in meeting the objectives set forth in subsection (e); and 

‘‘(vi) a description of the characteristics of lenders and other financial 

institutions participating in the activities undertaken by the eligible 

entity under this section (excluding subsection (k)) during the reporting 

period. 

‘‘(C) SECRETARIAL REPORT.—The Secretary shall review the reports submitted under subparagraph (A) and shall provide a comprehensive annual 

report to Congress on the activities conducted under this section (excluding 

subsection (k)). 

‘‘(i) NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATION.—No financial obligation of an eligible entity entered into pursuant to this section (such as an obligation 

under a guarantee, bond, note, evidence of debt, or loan) shall be an obligation of, 

or guaranteed in any respect by, the United States. The full faith and credit of the 

United States is not pledged to the payment of funds which may be required to be 

paid under any obligation made by an eligible entity pursuant to any provision of 

this section. 

‘‘(j) RECOVERY OF FUNDS.— 

‘‘(1) IN GENERAL.—The Secretary, in accordance with chapter 37 of title 31, 

United States Code, shall collect— 

‘‘(A) all of the funds in a reserve account established by an eligible entity 

under subsection (f)(1) if the Secretary determines, not earlier than 2 years 

after the date on which the eligible entity first received funds under this 

section (excluding subsection (k)), that the eligible entity has failed to make 

substantial progress in carrying out the purposes described in subsection 

(f)(1); or 

‘‘(B) all or a portion of the funds in a reserve account established by an 

eligible entity under subsection (f)(1) if the Secretary determines that the 

eligible entity has permanently ceased to use all or a portion of the funds 

in such account to accomplish any purpose described in subsection (f)(1). 

‘‘(2) EXERCISE OF AUTHORITY.—The Secretary shall not exercise the authority 

provided in paragraph (1) to collect from any eligible entity any funds that are 


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10 

being properly used to achieve one or more of the purposes described in subsection (f)(1). 

‘‘(3) PROCEDURES.—The provisions of sections 451, 452, and 458 of the General Education Provisions Act 20 U.S.C. 124, 1234a, 1234g shall apply to the 

recovery of funds under paragraph (1). 

‘‘(4) CONSTRUCTION.—This subsection shall not be construed to impair or affect the authority of the Secretary to recover funds under part D of the General 

Education Provisions Act (20 U.S.C. 1234 et seq.). 

‘‘(k) PER-PUPIL FACILITIES AID PROGRAM.— ‘‘(1) DEFINITION OF PER-PUPIL FACILITIES AID PROGRAM.—In this subsection, 

the term ‘per-pupil facilities aid program’ means a program in which a State 

makes payments, on a per-pupil basis, to charter schools to provide the schools 

with financing— 

‘‘(A) that is dedicated solely for funding charter school facilities; or 

‘‘(B) a portion of which is dedicated for funding charter school facilities. 

‘‘(2) GRANTS.— ‘‘(A) IN GENERAL.—From the amount under section 5202(b)(1) remaining 

after the Secretary makes grants under subsection (a), the Secretary shall 

make grants, on a competitive basis, to States to pay for the Federal share 

of the cost of establishing or enhancing, and administering per-pupil facilities aid programs. 

‘‘(B) PERIOD.—The Secretary shall award grants under this subsection for 

periods of not more than 5 years. 

‘‘(C) FEDERAL SHARE.—The Federal share of the cost described in subparagraph (A) for a per-pupil facilities aid program shall be not more 

than— 

‘‘(i) 90 percent of the cost, for the first fiscal year for which the program receives assistance under this subsection; 

‘‘(ii) 80 percent in the second such year; 

‘‘(iii) 60 percent in the third such year; 

‘‘(iv) 40 percent in the fourth such year; and 

‘‘(v) 20 percent in the fifth such year. 

‘‘(D) STATE SHARE.—A State receiving a grant under this subsection may 

partner with 1 or more organizations to provide up to 50 percent of the 

State share of the cost of establishing or enhancing, and administering the 

per-pupil facilities aid program. 

‘‘(E) MULTIPLE GRANTS.—A State may receive more than 1 grant under 

this subsection, so long as the amount of such funds provided to charter 

schools increases with each successive grant. 

‘‘(3) USE OF FUNDS.— 

‘‘(A) IN GENERAL.—A State that receives a grant under this subsection 

shall use the funds made available through the grant to establish or enhance, and administer, a per-pupil facilities aid program for charter schools 

in the State of the applicant. 

‘‘(B) EVALUATIONS; TECHNICAL ASSISTANCE; DISSEMINATION.—From the 

amount made available to a State through a grant under this subsection 

for a fiscal year, the State may reserve not more than 5 percent to carry 

out evaluations, to provide technical assistance, and to disseminate information. 

‘‘(C) SUPPLEMENT, NOT SUPPLANT.—Funds made available under this subsection shall be used to supplement, and not supplant, State and local public funds expended to provide per pupil facilities aid programs, operations 

financing programs, or other programs, for charter schools. 

‘‘(4) REQUIREMENTS.— 

‘‘(A) VOLUNTARY PARTICIPATION.—No State may be required to participate 

in a program carried out under this subsection. 

‘‘(B) STATE LAW.— 

‘‘(i) IN GENERAL.—Except as provided in clause (ii), to be eligible to 

receive a grant under this subsection, a State shall establish or enhance, and administer, a per-pupil facilities aid program for charter 

schools in the State, that— 

‘‘(I) is specified in State law; and 

‘‘(II) provides annual financing, on a per-pupil basis, for charter 

school facilities. 

‘‘(ii) SPECIAL RULE.—Notwithstanding clause (i), a State that is required under State law to provide its charter schools with access to 

adequate facility space, but which does not have a per-pupil facilities 

aid program for charter schools specified in State law, may be eligible 

to receive a grant under this subsection if the State agrees to use the 


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11 

funds to develop a per-pupil facilities aid program consistent with the 

requirements of this subsection. 

‘‘(5) APPLICATIONS.—To be eligible to receive a grant under this subsection, a 

State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.’’. 

SEC. 7. NATIONAL ACTIVITIES. 

Section 5205 (20 U.S.C. 7221d) is amended to read as follows: 

‘‘SEC. 5205. NATIONAL ACTIVITIES. 

‘‘(a) IN GENERAL.—From the amount reserved under section 5202(b)(2), the Secretary shall— 

‘‘(1) use not less than 75 percent of such funds to award grants in accordance 

with subsection (b); and 

‘‘(2) use not more than 25 percent of such funds to— 

‘‘(A) provide technical assistance to State entities in awarding subgrants 

under section 5203, and eligible entities and States receiving grants under 

section 5204; 

‘‘(B) disseminate best practices; and 

‘‘(C) evaluate the impact of the charter school program, including the impact on student achievement, carried out under this subpart. 

‘‘(b) GRANTS.— ‘‘(1) IN GENERAL.—The Secretary shall make grants, on a competitive basis, 

to eligible applicants for the purpose of carrying out the activities described in 

section 5202(a)(1), subparagraphs (A) through (C) of section 5203(a)(1), and section 5203(g). 

‘‘(2) TERMS AND CONDITIONS.—Except as otherwise provided in this subsection, grants awarded under this subsection shall have the same terms and 

conditions as grants awarded to State entities under section 5203. 

‘‘(3) CHARTER MANAGEMENT ORGANIZATIONS.—The Secretary shall— 

‘‘(A) use not less than 75 percent of the funds described in subsection 

(a)(1) to make grants, on a competitive basis, to eligible applicants described in paragraph (4)(C); and 

‘‘(B) notwithstanding paragraphs (1)(A) and (2) of section 5203(f)— 

‘‘(i) award grants to eligible applicants on the basis of the quality of 

the applications submitted under this subsection; and 

‘‘(ii) in awarding grants to eligible applicants described in paragraph 

(4)(C), give priority to each such eligible applicant that— 

‘‘(I) demonstrates a high proportion of high-quality charter 

schools within the network of the eligible applicant; 

‘‘(II) demonstrates success in serving students who are educationally disadvantaged; 

‘‘(III) does not have a significant proportion of charter schools 

that have been closed, had their charter revoked for compliance 

issues, or had their affiliation with such eligible applicant revoked; 

‘‘(IV) has sufficient procedures in effect to ensure timely closure 

of low-performing or financially-mismanaged charter schools and 

clear plans and procedures in effect for the students in such schools 

to attend other high-quality schools; and 

‘‘(V) demonstrates success in working with schools identified for 

improvement by the State. 

‘‘(4) ELIGIBLE APPLICANT DEFINED.—For purposes of this subsection, the term 

‘eligible applicant’ means an eligible applicant (as defined in section 5210) 

that— 

‘‘(A) desires to open a charter school in— 

‘‘(i) a State that did not apply for a grant under section 5203; or 

‘‘(ii) a State that did not receive a grant under section 5203; or 

‘‘(B) is a charter management organization. 

‘‘(c) CONTRACTS AND GRANTS.—The Secretary may carry out any of the activities 

described in this section directly or through grants, contracts, or cooperative agreements.’’. 

SEC. 8. RECORDS TRANSFER. 

Section 5208 (20 U.S.C. 7221g) is amended— 

(1) by inserting ‘‘as quickly as possible and’’ before ‘‘to the extent practicable’’; 

and 

(2) by striking ‘‘section 602’’ and inserting ‘‘section 602(14)’’. 

SEC. 9. DEFINITIONS. 

Section 5210 (20 U.S.C. 7221i) is amended— 

(1) by amending paragraph (1) to read as follows: 


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‘‘(1) CHARTER SCHOOL.—The term ‘charter school’ means a public school 

that— 

‘‘(A) in accordance with a specific State statute authorizing the granting 

of charters to schools, is exempt from significant State or local rules that 

inhibit the flexible operation and management of public schools, but not 

from any rules relating to the other requirements of this paragraph; 

‘‘(B) is created by a developer as a public school, or is adapted by a developer from an existing public school, and is operated under public supervision and direction; 

‘‘(C) operates in pursuit of a specific set of educational objectives determined by the school’s developer and agreed to by the authorized public 

chartering agency; 

‘‘(D) provides a program of elementary or secondary education, or both; 

‘‘(E) is nonsectarian in its programs, admissions policies, employment 

practices, and all other operations, and is not affiliated with a sectarian 

school or religious institution; 

‘‘(F) does not charge tuition; 

‘‘(G) complies with the Age Discrimination Act of 1975, title VI of the 

Civil Rights Act of 1964, title IX of the Education Amendments of 1972, section 504 of the Rehabilitation Act of 1973, part B of the Individuals with 

Disabilities Education Act, the Americans with Disabilities Act of 1990 (42 

U.S.C. 12101 et seq.), and section 444 of the General Education Provisions 

Act (20 U.S.C. 1232(g)) (commonly known as the ‘Family Education Rights 

and Privacy Act of 1974’); 

‘‘(H) is a school to which parents choose to send their children, and admits students on the basis of a lottery if more students apply for admission 

than can be accommodated, except that in cases in which students who are 

enrolled in a charter school affiliated (such as by sharing a network) with 

another charter school, those students may be automatically enrolled in the 

next grade level at such other charter school, so long as a lottery is used 

to fill seats created through regular attrition in student enrollment; 

‘‘(I) agrees to comply with the same Federal and State audit requirements 

as do other elementary schools and secondary schools in the State, unless 

such State audit requirements are waived by the State; 

‘‘(J) meets all applicable Federal, State, and local health and safety requirements; 

‘‘(K) operates in accordance with State law; 

‘‘(L) has a written performance contract with the authorized public chartering agency in the State that includes a description of how student performance will be measured in charter schools pursuant to State assessments that are required of other schools and pursuant to any other assessments mutually agreeable to the authorized public chartering agency and 

the charter school; and 

‘‘(M) may serve prekindergarten or postsecondary students.’’; 

(2) by redesignating paragraphs (2) through (4) as paragraphs (4) through (6), 

respectively; 

(3) by inserting after paragraph (1), the following: 

‘‘(2) CHARTER MANAGEMENT ORGANIZATION.—The term ‘charter management 

organization’ means a not-for-profit organization that manages a network of 

charter schools linked by centralized support, operations, and oversight. 

‘‘(3) CHARTER SCHOOL SUPPORT ORGANIZATION.—The term ‘charter school support organization’ means a nonprofit, nongovernmental entity that is not an authorized public chartering agency, which provides on a statewide basis— 

‘‘(A) assistance to developers during the planning, program design, and 

initial implementation of a charter school; and 

‘‘(B) technical assistance to charter schools to operate such schools.’’; 

(4) in paragraph (5)(B), as so redesignated, by striking ‘‘under section 

5203(d)(3)’’; and 

(5) by adding at the end the following: 

‘‘(7) EXPANDED, HIGH-QUALITY CHARTER SCHOOL.—The term ‘expanded, highquality charter school’ means a high-quality charter school that has either significantly increased its enrollment or added one or more grades to its school. 

‘‘(8) HIGH-QUALITY CHARTER SCHOOL.—The term ‘high-quality charter school’ 

means a charter school that— 

‘‘(A) shows evidence of strong academic results, which may include strong 

academic growth as determined by a State; 

‘‘(B) has no significant issues in the areas of student safety, operational 

and financial management, or statutory or regulatory compliance; 


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‘‘(C) has demonstrated success in significantly increasing student academic achievement, including graduation rates where applicable, consistent 

with the requirements under title I, for all students served by the charter 

school; and 

‘‘(D) has demonstrated success in increasing student academic achievement, including graduation rates where applicable, for the groups of students described in section 1111(b)(2)(C)(v)(II), except that such demonstration is not required in a case in which the number of students in a group 

is insufficient to yield statistically reliable information or the results would 

reveal personally identifiable information about an individual student. 

‘‘(9) REPLICATED, HIGH-QUALITY CHARTER SCHOOL MODEL.—The term ‘replicated, high-quality charter school model’ means a high-quality charter school 

that has opened a new campus under an existing charter or an additional charter if required by State law.’’. 

SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

Section 5211 (20 U.S.C. 7221j) is amended to read as follows: 

‘‘SEC. 5211. AUTHORIZATION OF APPROPRIATIONS. 

‘‘There are authorized to be appropriated to carry out this subpart $300,000,000 

for fiscal year 2015 and each of the 5 succeeding fiscal years.’’. 

SEC. 11. CONFORMING AMENDMENTS. 

(a) REPEAL.—Subpart 2 of part B of title V (20 U.S.C. 7223 et seq.) is repealed. 

(b) TABLE OF CONTENTS.—The table of contents in section 2 is amended— 

(1) by striking the item relating to subpart 1 of part B of title V and inserting 

the following: 

‘‘Subpart 1—Charter School Program’’; 

(2) by striking the item relating to section 5203 and inserting the following: 

‘‘Sec. 5203. Grants to support high-quality charter schools.’’; 

(3) by striking the item relating to section 5204 and inserting the following: 

‘‘Sec. 5204. Facilities financing assistance.’’; and 

(4) by striking the items relating to subpart 2 of part B of title V. 

H.R. 10, THE SUCCESS AND OPPORTUNITY THROUGH 

QUALITY CHARTER SCHOOLS ACT 

COMMITTEE REPORT 

PURPOSE

H.R. 10, the Success and Opportunity through Quality Charter 

Schools Act, reauthorizes and modernizes the Charter School Program under the Elementary and Secondary Education Act. The bill 

increases the number of high-quality charter schools available to 

students and families; ensures charter schools share their best 

practices with all public schools; improves charter school access 

and services for all students, including students with disabilities 

and English learners; and emphasizes quality and accountability in 

charter school authorizing. 

COMMITTEE ACTION

H.R. 10 is the latest effort by the committee to reauthorize and 

reform the Charter School Program under the Elementary and Secondary Education Act. It builds on the committee’s legislation proposed in previous congresses, as well as lessons learned from hearings and other activity in the 113th Congress. 


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111TH CONGRESS

Hearings 

On June 4, 2009, the Committee on Education and Labor held 

a hearing entitled ‘‘Building on What Works at Charter Schools.’’ 

The purpose of the hearing was to learn how representatives from 

the U.S. Department of Education, states, charter school authorizers, and charter school providers produce high-quality charter 

schools and how those programs can be replicated and brought to 

scale. Testifying before the committee were The Honorable Barbara 

O’Brien, Lieutenant Governor, State of Colorado, Denver, CO; Mr. 

James Shelton, Assistant Deputy Secretary for Innovation and Improvement, U.S. Department of Education, Washington, DC; Mr. 

Steve Barr, Founder and Chairman, Green Dot Public Schools, Los 

Angeles, CA; Dr. John King, Managing Director, Excellence and 

Preparatory Network of Uncommon Schools, New York, NY; Mr. 

David Dunn, Executive Director, Texas Charter Schools Association, Austin, TX; and Mr. James Goenner, Executive Director, The 

Center for Charter Schools, Central Michigan University, Mount 

Pleasant, MI. 

On February 24, 2010, the Committee on Education and Labor 

held a hearing on quality charter schools and H.R. 4330, the All 

Students Achieving through Reform Act. The purpose of the hearing 

was to discuss how charter school providers maintain quality in 

charter schools, what student populations charter schools serve, 

and the importance of keeping charter schools autonomous. The 

hearing focused on H.R. 4330, which created a new program under 

the Charter School Program to provide funding for the expansion 

and replication of charter schools. Testifying before the committee 

were Ms. Eva Moskowitz, Founder, Success Charter Network, New 

York, NY; Ms. Robin J. Lake, Associate Director, Center on Reinventing Public Education, Seattle, WA; Dr. Thomas Hehir, Professor of Practice, Harvard Graduate School of Education, Cambridge, MA; Mr. Greg Richmond, President and CEO, National Association of Charter School Authorizers, Chicago, IL; Ms. Eileen 

Ahern, Director, National Association of State Directors of Special 

Education, Alexandria, VA; and Dr. Caprice Young, President and 

CEO, KC Distance Learning, Portland, OR. 

Legislative action 

In H.R. 3288, the Consolidated Appropriations Act of 2010, the 

Committee on Appropriations provided $256 million for the Charter 

School Program and reserved $50 million of those funds to support 

the expansion and replication of existing high-quality charter 

schools. H.R. 3288 was signed into law on December 16, 2009. 

112TH CONGRESS

Hearings 

On April 7, 2011, the Committee on Education and the Workforce 

held a hearing entitled ‘‘Education Reforms: Promoting Flexibility 

and Innovation.’’ The purpose of the hearing was to discuss the appropriate federal role in K–12 education and explore the work of 

state and local education leaders who advocate for innovative approaches to education reform and greater state and local flexibility. 


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Testifying before the committee were Dr. Janet Barresi, Oklahoma 

State Superintendent of Public Instruction, Oklahoma City, OK; 

Dr. Gary Amoroso, Superintendent, Lakeville Area Public Schools, 

Lakeville, MN; Mr. Yohance Maqubela, Chief Operating Officer, 

Howard University Middle School of Mathematics and Science, 

Washington, DC; and Dr. Terry Grier, Superintendent, Houston 

Independent School District, Houston, TX. 

On June 1, 2011, the Committee on Education and the Workforce 

Subcommittee on Early Childhood, Elementary, and Secondary 

Education held a hearing entitled ‘‘Education Reforms: Exploring 

the Vital Role of Charter Schools.’’ The purpose of the hearing was 

to examine the contributions of charter schools to state and local 

efforts to improve public education and the importance of empowering parents to choose the best school environment for their children. Testifying before the subcommittee were Ms. DeAnna Rowe, 

Executive Director, Arizona State Board for Charter Schools, Phoenix, AZ; Ms. Debbie Beyer, Executive Director, Literacy First Charter Schools, El Cajon, CA; Dr. Gary Miron, College of Education, 

Western Michigan University, Kalamazoo, MI; and Dr. Beth 

Purvis, Executive Director, Chicago International Charter School, 

Chicago, IL. 

Legislative action 

H.R. 1473, the Department of Defense and Full-Year Continuing 

Appropriations Act of 2011, included $256 million for the Charter 

School Program and reserved $50 million to support the expansion 

and replication of existing high-quality charter schools. H.R. 1473 

was signed into law on April 15, 2011. 

On June 16, 2011, Rep. Duncan Hunter (R–CA) and Chairman 

John Kline (R–MN) introduced H.R. 2218, the Empowering Parents 

through Quality Charter Schools Act. This bill reauthorized and improved the existing charter school provisions under the Elementary 

and Secondary Education Act. H.R. 2218 was cosponsored by Rep. 

George Miller (D–CA), Rep. Tom Petri (R–WI), Rep. Howard P. 

‘‘Buck’’ McKeon (R–CA), Rep. Phil Roe (R–TN), Rep. Trey Gowdy 

(R–SC), Rep. Larry Bucshon (R–IN), Rep. Tim Walberg (R–MI), 

Rep. Scott DesJarlais (R–TN), Rep. Mike Kelly (R–PA), Rep. Jared 

Polis (D–CO), Rep. Todd Rokita (R–IN), and Rep. Ander Crenshaw 

(R–FL). 

On June 22, 2011, the Committee on Education and the Workforce considered H.R. 2218 in legislative session and reported it favorably, as amended, to the House of Representatives by a bipartisan vote of 34–5. The committee considered and adopted one 

amendment to the bill, an Amendment in the Nature of a Substitute, offered by Rep. Duncan Hunter (R–CA). 

The Committee received letters of support for H.R. 2218 from the 

following organizations: The U.S. Chamber of Commerce, Business 

Roundtable, Chiefs for Change, Knowledge Is Power Program 

(KIPP) Foundation, Council for Exceptional Children, Charter 

School Lenders Coalition, Democrats for Education Reform, National Association for Charter School Authorizers, National Alliance for Public Charter Schools, National Association of State Directors of Special Education, New Schools Venture Fund, the California Charter Schools Association, and the Texas Charter Schools 

Association. 


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113TH CONGRESS

Hearings 

On March 12, 2014, the Committee on Education and the Workforce held a hearing entitled ‘‘Raising the Bar: The Role of Charter 

Schools in K–12 Education’’ to highlight the role charter schools 

play in improving K–12 education and discuss innovative public 

school choice models from across the country. Testifying before the 

committee were Dr. Deborah McGriff, Chair of the Board, National 

Alliance for Public Charter Schools, Milwaukee, WI; Mrs. Lisa Graham Keegan, Chair of the Board, National Association of Charter 

School Authorizers, Peoria, AZ; Mr. David Linzey, Executive Director, Clayton Valley Charter High School, Concord, CA; Ms. Alyssa 

Whitehead-Bust, Chief of Innovation and Reform, Denver Public 

Schools, Denver, CO; and Mr. Alan Rosskamm, Chief Executive Officer, Breakthrough Schools, Cleveland, OH. 

Legislative action 

On July 19, 2013, the House of Representatives passed H.R. 5, 

the Student Success Act, by a vote of 221–207. The House-passage 

of H.R. 5 followed consideration of the bill by the Committee on 

Education and the Workforce on June 19, 2013, in legislative session and reported it favorably, as amended, to the House of Representatives by a vote of 23–16. H.R. 5 was introduced by Chairman John Kline (R–MN) on June 6, 2013, and reauthorized the Elementary and Secondary Education Act in its entirety, including 

the Charter School Program. The charter school provisions in the 

bill differed slightly from H.R. 2218 (112th Congress), notably by 

adding charter support organizations as entities eligible for state 

grants. An amendment in the nature of a substitute to H.R. 5 offered by the committee’s senior democratic, Ranking Member 

George Miller (D–CA), also included reauthorization of the Charter 

School Program. 

On April 1, 2014, Chairman Kline and Ranking Member Miller 

introduced H.R. 10, the Success and Opportunity through Quality 

Charter Schools Act. This bill reauthorizes and improves the existing charter school provisions under the Elementary and Secondary 

Education Act. H.R. 10 is cosponsored by Rep. Susan Brooks (R– 

IN), Rep. Larry Bucshon (R–IN), Rep. Bradley Byrne (R–AL), Rep. 

Scott DesJarlais (R–TN), Rep. Sean Duffy (R–WI), Rep. Blake 

Farenthold (R–TX), Rep. Brett Guthrie (R–KY), Rep. Joseph Heck 

(R–NV), Rep. Rube ́n Hinojosa (D–TX), Rep. Richard Hudson (R– 

NC), Rep. Duncan Hunter (R–CA), Rep. Luke Messer (R–IN), Rep. 

Scott Peters (D–CA), Rep. Tom Petri (R–WI), Rep. Jared Polis (D– 

CO), Rep. Phil Roe (R–TN), Rep. Todd Rokita (R–IN), Rep. Tim 

Walberg (R–MI), Rep. Daniel Webster (R–FL), Rep. Joe Wilson (R– 

SC) and Rep. Steve Womack (R–AR). 

On April 8, 2014, the Committee on Education and the Workforce 

considered H.R. 10, the Success and Opportunity through Quality 

Charter Schools Act, in legislative session and reported the bill favorably, as amended, to the House of Representatives by a vote of 

36–3. 

The committee considered and adopted the following amendment 

to H.R. 10: 


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Rep. Luke Messer (R–IN) offered an amendment in the nature of 

a substitute. It passed by voice. This amendment: • Makes technical edits, such as clarifying the secretary 

‘‘provides’’ technical assistance, permitting local uses of funds 

to include acquiring equipment and supplies, and clarifying the 

admission by feeder pattern language. • Adds a phrase to ensure only schools meeting the definition of a ‘‘charter school’’ are receiving subgrants under this 

program. • Clarifies the definition of ‘‘replicable, high-quality charter 

school’’ to ensure schools replicating a high quality model can 

do it under a new charter if the state requires each school operate under a separate charter. • Adjusts the funding allocation by moving 2.5 percent of the 

funding for facilities aid to the state grants. This provides 

more money to the states opening new schools, and still leaves 

a significant share of funding for facilities aid. • Clarifies computer science is a part of technology within 

science, technology, engineering, and math activities. Also provides states can share best practices on core academic subjects. • Adds a new requirement for states to assist students to 

find new schools in the event their charter school closes. • Clarifies a weighted lottery may not be used to create a 

school to serve a select population. 

The Committee received letters of support for H.R. 10 from the 

following organizations: The Arc, Autism National Committee, 

Breakthrough Schools, U.S. Chamber of Commerce, Charter Management Organizations Coalition, Chiefs for Change, Consortium 

for Citizens with Disabilities, Council for Exceptional Children, 

Council of Chief State School Officers, Council of Parent Attorneys 

and Advocates, Inc., Education Trust, National Association of Charter School Authorizers, National Alliance for Public Charter 

Schools, National Association of State Directors of Special Education, Inc., National Center for Learning Disabilities, the National 

Center for Special Education in Charter Schools, Foundation for 

Excellence in Education, National Council of La Raza, and the 

Business Roundtable. 


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smartinez on DSK6TPTVN1PROD with REPORTSInsert offset folio 20 here HR423.001

April 2, 2014 

The Honorable John Kline 

2439 House Office Building 

DC 20515 

Dear Congressmen Kline & Miller, 

The Arc is the 

intellectual and de',el'oprne,ntal 

We for the House Bill to amend the charter school 

Secondary Act of 1965. Thank for ;nt'Arl"o;r,,, 

1825 K Street NW, $ulte 1200 

Washington, DC 20006 

207534-3700 

our long-standing concerns about the in 

Sincerely, 

Maureen 

Director 

charter school authorizers to monitor how charter schools recruit and enroll 

how the schools plan to retain these students once enrolled. The bill also 

rA'" ,irf'",pnt< that will charter schools for and consider how they will 

students with and how to help them 

for your work to ensure that students with 
19 


smartinez on DSK6TPTVN1PROD with REPORTSInsert offset folio 21 here HR423.002

Autism National ~''' ..... " Inc. 

A Quarter Celltu!'}, ()fSocia/ Jllstice alld Autism Adv{}c()cy 

www.autcom.org 

Butler. Congressional Affairs 

March 31. 2014 

The Honorable John Kline, Chair 

The Honorable George Miller, Ranking Member 

House Education & Workforce Committee 

Washington, DC 20515 

Re: Charter School Sill 

Dear Congressman Kline & Congressman Miller, 

The Autism National Committee is a 23 year old national organization dedicated to advocatingfor children 

and adults with autism and related disabilities. We are an organization composed of people with autism; 

parents of children with autism; professionals; advocates; colleagues and friends. 

Thank you for introducing important legislation to amend the charter school program under the Elementary 

and Secondary Education Act of 1965. We support this bill. 

We have been quite concerned about the under-enrollment of children with disabilities in charter schools 

for a long time. The bill will mandate that charter school authorizers monitor how charter schools recruit 

and enroll students with disabilities. Importantly, it will require monitoring of how schools plan to retain 

students once enrolled and their ongoing retention efforts. This will increase retention of students with 

disabilities and prevent charter schools from excluding them. The bill also includes new requirements that 

will help charter schools intentionally plan for and consider how they will meet the needs of students with 

disabilities and how to help them thrive. 

Of similar great importance, the bill will continue ESEA's requirement that the Individuals with Disabilities 

Education Act, Section 504 of the Rehabilitation Act, and other important civil rights laws will apply to 

charter schools. Significantly, the bill will further increase protections for people with disabilities by 

requiring charter schools to adhere to the Americans with Disabilities Act. The bill will also ensure that 

students and parents in charter schools will receive the right to their students records and to privacy of 

those records under the Family Educational Rights and Privacy Act. 

People with disabilities have contributed so much to America. Students with disabilities have a wealth of 

potential to succeed and meet high standards, so they can make similar great contributions after finishing 

schooL The Autism National Committee applauds your bipartisan effort to ensure that students with 

disabilities can be appropriately served in charter schools. 

Sincerely, 

Jess Butler 

Congressional Affairs Coordinator 

Autism National Committee 
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Preside/It 

Board of Directors 

April 2014 

The Honorable John Kline 

Chairman 

The Honorable George Miller 

Members 

Committee on Education and the Workforce 

House Office Building 

DC 20515 

Dear Chairman Kline and Ranking Member Miller: 

",q,,-q,ua'"v, college preparatory 

of the biil's provision to allow students to remain in within their 

schools from elementary to middle school without having to 

is essential for our students to ensure that the 

success is not taken away by chance, Some 

Avenue, Suite 3103A • Cleveland, OH 44114 

• BreakthroughSchools,orgl1'riends 

DONATE' ADVOCATE· VOLUNTEER 
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of our proudest moments have been and in our network and 

""'CR'SST! l!!V transition from one of our schools schools, We 

the bill includes this important element 

evidence that the can drive 

increases in achievement on our 

staff, we would 

authorization level of the 

additional consideration be 

currently capped at 

larger authorization would provide more funding as the economy improves, 

"h"II"nr,,,s of the 21 51 century, we hope that Congress will see fit to 

invest si"nifi"Q"tI" Charter schools to innovation in education, 

school models are strong academic 

",,,,,nr,,,,,,,,,,,,, "'S""'''''''",,,,,, children, We would, therefore, soecifici311v 

for tile Replication and Expansion 

drafted, this bill would provide only $18,6 million at the current appropriations level 

million at the maximum authorization level, Even under the best-case scenario, 

level is less than what was in the FY 2014 Omnibus 

Annrr\f)ri"ti"n~ bill, ensured that no less than would be for this specific 

AdditilonEllly, we would the to work with ensure that 

(;n,nnrp~si()n,,1 more uses grant funds, the entire CSP 

return on investmentlhan the dollars committed to replicating 

schools that work, these networks Iha! have the demonstrated ability to assure 

success for hundreds of thousands more children, 

of our students and our schools, We look forward to 

this bill as it moves forward in the House of Representatives, 

Sincerely, 

Alan Rosskamm John Zitzner 

Chief Executive Officer, Breakthrough Schools President, Friends of Breakthrough Schools 

• Cleveland, OB 44114 

DONATE • ADVOCATE • VOLUNTEER 
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CHAMBER OF COMMERCE 

OFTIIE 

UNITED STATES OF AMERICA 

R. BRUCE JOSTEN EXECUTIVE VICE PRESIDENT 

GOVERNMENT AFFAIRS 

1615 H STREET, N.W. 

WASIDNGTON, D.C. 20062~2000 

202/463-5310 

April 7, 2014 

The Honorable John Kline 

Chairman 

Committee on Education and 

the Workforce 

U.S. House of Representatives 

Washington, DC 20515 

Dear Chairman Kline and Ranking Member Miller: 

The Honorable George Miller 

Ranking Member 

Committee on Education and 

the Workforce 

U.S. House of Representatives 

Washington, DC 20515 

The U.S. Chamber of Commerce, the world's largest business federation representing the 

interests of more than three million businesses of all sizes, sectors, and regions, as well as state 

and local chambers and industry associations, and dedicated to promoting, protecting, and 

defending America's free enterprise system, supports H.R. 10, the "Success and Opportunity 

through Quality Charter Schools Act." 

The availability of high-quality human talent is the number-one issue facing businesses 

today. Business leaders increasingly place improving public education at the top of their list of 

priorities because they believe the education system in our country fails to produce graduates 

prepared to compete both locally and in a global economy. 

Accordingly, the Chamber has encouraged policymakers to embrace a choice of 

education options that would provide greater flexibility to parents and encourage schools to be 

more responsive to community needs and accountable for academic achievement. In particular, 

the Chamber has asked that Congress develop and implement innovative education initiatives, 

such as public charter school models, that would provide flexibility in the design and 

implementation of educational programming, as long as such schools are held accountable for 

results. 

Public charter schools are the fastest growing seetor of America's public education 

system. Currently, there are more than 6,400 public charter schools enrolling over 2.5 million 

students in forty-two states and the District of Columbia. In addition to increased demand for 

charter schools, research shows that federal investments in the charter sector are paying off when 

it comes to results. Since 2010, numerous independent studies have found that students in 

charter schools do better than their traditional school peers. Most recently, the Center for 

Research on Educational Outcomes at Stanford University found that charter schools specifically 

do a better job teaching low income students, minority students, and students who are still 

learning English than traditional schools. Additionally, separate studies by the Center for 

Reinventing Public Education and Mathematica Policy Research have found that charter school 
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students are more likely to graduate from high school, go on to college, stay in college and have 

higher earnings in early adulthood. 

Federal support for the Charter Schools Program has been critical to the charter sector's 

growth to meet parental demand for educational options. While public charter schools are 

inherently local, the movement would not have achieved its current success had it not been for 

the federal Charter Schools Program. 

H.R. 10 would help to further promote state and local efforts to develop and expand 

charter schools; improve charter school authorizing efforts to support the replication and 

expansion of successful charter models; support the sharing of best practices between public 

charter schools and traditional public schools; and encourage charter schools to reach out to 

special populations, including at-risk students, students with disabilities, and English learners. 

Thank you for introducing this bipartisan bill to reauthorize the federal Charter Schools 

Program. The U.S. Chamber of Commerce has been at the forefront of efforts to improve K-12 

education so that every child is prepared for higher education or productive careers. The 

Chamber continues to advocate for commonsense reforms ofthe education system, including 

support for expanded access to charter schools. We look forward working with you and other 

Members ofthe Committee as this bill moves through the legislative process. 

Sincerely, 

;£~k R. Bruce Josten 

cc: Members of the Committee on Education and the Workforce 
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Bill to amend the charter school program under the Elementary and Secondary Education Act 0/ 1965 

April 7, 2014 

Chairman John Kline 

U.S. House Committee on Education 

and the Workforce 

2181 Rayburn House Office Building 

Washington, DC 20515 

Dear Chairman Kline and Congressman Miller: 

Senior Democrat George Miller 

U.S. House Committee on Education 

and the Workforce 

2101 Rayburn House Office Building 

Washington, DC 20515 

The group of non-profit Charter Management Organizations (CMOs) represented in this letter operate 

more than 400 charter schools across 53 urban and rural communities and 23 states, serving more than 

150,000 students. We are united by our commitment to improving academic and life outcomes for all 

students, particularly students in historically underserved communities. With high expectations for both 

students and adults, we believe that a child's 21P code should not predict the quality of his or her 

education. 

We are enthusiastic supporters of the provision in this bipartisan bill that supports charter schools in 

allowing for a feeder-school system that builds on student success over time. Beyond growing the 

number of students we serve, many public charter school operators are committed to providing 

comprehensive kindergarten through 12th grade educations to their students. By enrolling students as 

young as 4 or 5 years of age we can provide our students with the foundation needed to successfully 

launch into middle school and by staying with our students through their high school years we can 

better ensure that our students continue on a trajectory to be well prepared to enter college. It is the 

cornerstone of our mission to prepare our students to go to and through college and we are deeply 

appreciative of this change. 

We are pleased that the proposed bill contains a provision for CMOs to compete directly for funding 

based on our success in serving educationally disadvantaged populations and our ability to produce 

strong academic achievement results. This much-needed language would codify the existing practice 

that has been in place since 2010. However, we are concerned about the percentage of funding that has 

been allocated for this high-impact investment and the impact this will have on our ability to grow to 

reach more students on our waitlists. To date, direct funds have seeded more than 330 new, highquality charter schools in 20 states. In the next five years alone, our organizations aspire to open more 

than 370 new schools serving nearly 200,000 more students - and the 126,000 students on our schools' 

existing waiting lists have already expressed their interest in filling many of these seats. 

As this bill moves to the floor, we hope additional consideration will be given to the overall 

authorization level of the Charter Schools Program, which is capped at $300 million. While we recognize 

that the federal budget has been tight over the past several years, a higher authorization level would 

provide room for growth should the economy improve. Capping the Charter Schools Program funding 

level severely handicaps our ability to meet the demand by parents nation-wide to enroll their students 

in a public charter school. According to a survey conducted by the National Alliance of Public Charter 

Schools in June of 2013, public charter school waitlists are approaching one million names nationally. 
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letter - Charter School Program bill 

April 7, 2014 

Page 2 

This survey demonstrates that parental demand for public charter school seats continues to far outpace 

the supply. 

We strongly believe that that the current Charter Schaols Program Grants for the Replicatian and 

Expansion of High-Quality Schools is efficiently and effectively achieving its aim to replicate and expand 

high-quality charter school models based on demonstrated academic achievement results and success in 

serving educationally disadvantaged populations. To this end, we would be grateful if the bill would 

authorize funding consistent with the levels appropriated by Congress, and allow for this competition to 

grow enough to support us in opening 370 schools to reach an additional 200,000 students in the next 

five years. As currently drafted, this bill would provide $18.6 million at the current appropriations level 

and just $22.5 million at the maximum authorization level. Even under the best-case scenario, this 

funding level dwarfs what was appropriated in the FY 2014 Omnibus Appropriations bill, which ensured 

that no less than $45 million would be targeted for this specific purpose. 

Finally, we look forward to partnering with you to ensure clear guidance is offered to highlight 

Congressional intent that these grants funds should indeed be utilized in a flexible way to support strong 

school starts and meet the unique needs of each community. Flexibility is needed to allow federal 

Charter Schools Program funds to be spent not only on previously allowed expenses such as desks and 

books, but also on equally crucial items such as transportation (especially critical in rural areas), and 

improved programming for English language learners and special education students. 

Thank you for taking up this important legislation, and for the important changes that this bill 

makes to the Charter Schools Program. We look forward to partnering with you to further refine 

this bill to modernize the Charter Schools Program as it moves forward in the House of 

Representatives. 

Sincerely, 

Achievement First 

Alliance College-Ready Public Schools 

Aspire Public Schools 

Breakthrough Schools 

Brooke Charter Schools 

Charter School Growth Fund 

DSST Public Schools 

Explore Schools 

Gestalt Community Schools 

Green Dot Public Schools 

IDEA Public Schools 

KIPP 

LEARN Charter School Network 

Mastery Charter Schools 
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letter - Charter School Program bill 

April 7, 2014 

Page 3 

Noble Network of Charter Schools 

Rocketship Education 

STRIVE Preparatory Schools 

Success Academy Charter Schools 

Tindley Accelerated Schools 

Uncommon Schools 

Uplift Education 

YES Prep Public Schools 
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Chiefs~ 

CHANGE 

April 14, 2014 

The Honorable john Kline 

Chairman 

Committee on Education and the Workforce 

2181 Rayburn House Office Building 

Washington, DC 20515 

Dear Chairman Kline and Senior Democrat Miller: 

The Honorable George Miller 

Senior Democrat 

Committee on Education and the Workforce 

2101 Rayburn House Office Building 

Washington, DC 20515 

Chiefs for Change is pleased to support H.R. the Success and Opportunity through Quality Charter 

Schools Act which will expand the number of high-quality charter schools and help to increase 

educational opportunities for all students by supporting innovation in our public education system. 

Chiefs for Change is a bipartisan coalition of current and former state education chiefs who believe that 

American public education can be dramatically improved and share an urgency to achieve that goal. 

Together, we provide a strong voice for bold reform at the federal, state and local levels. 

Chiefs for Change offers a network of state education leaders with experience in successful reform who 

continue to advance proven policies for the betterment of education. The coalition formed by five state 

education chiefs in November 2010, today represents a number of ethnically- and geographicallydiverse states. By placing the interests of children above the well-being of its members, Chiefs for 

Change has taken on the entrenched practices that have long held back our education systempractices that have favored adults, instead of students. 

As part of our guiding principles, Chiefs for Change believes that there should viable educational 

options, including public charter schools, for all students. We support policies that provide all students 

with the opportunity to attend an excellent school and believe funding should follow the student and 

allow for parents to decide what is best for their child. 

Public charter schools are the fastest growing sector of America's public education system. The 

movement began in 1992 with a single charter school enrolling just a few hundred students. Today, 

there are more than 6,400 public charter schools enrolling over 2.5 million students in forty-two states 

and the District of Columbia. And, according to a 2013 study conducted by Stanford University's Center 

for Research on Educational Outcomes (CREDO), charter school students are outperforming their peers 

in traditional public schools and closing the achievement gap. As a result, charter school waiting lists are 

long and growing longer, signifying the hunger for more educational options by families around the 

nation. 

The federal government has played a crucial role in jumpstarting - and then growing - the charter 

school movement. The federal Charter Schools Program (CSP) provides the start-up capital needed to 

P.O. Box 10691' Tallahassee, FL' 32302' www.chiefsforchange.org 
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design a school, hire a school leader, recruit students and staff, prepare curricula and programs, and 

make initial purchases of materials and equipment, until regular state and local funding is available. In 

fact, CSP has become indispensable to the development and growth of public charter schools becauseunlike traditional schools - charter schools do not have access to district or state funds to plan and 

implement their educational programs. 

Chiefs for Change is, therefore, pleased that the Success and Opportunity through Quality Charter 

Schools Act would reauthorize the CSP to improve federal support for the start-up, replication, and 

expansion of high-quality charter schools. In particular, Chiefs for Change is pleased that the legislation 

would encourage greater expansion and replication of proven, high-quality charter school models at the 

state level, broaden uses of funds to include activities related to "opening and preparing to operate" 

charter schools, and also focus on charter school authorizer quality. Chiefs for Change also supports the 

formal creation of a federal program for charter management organizations (CMOs). CMOs play an 

important role in the replication and expansion of high-quality charter schools, but Chiefs for Change 

believes that states should make most of the decisions about how to distribute CSP funds to maximize 

educational opportunities within their boundaries. 

We are pleased that the bill was reported by the Committee on Education and the Workforce by a 

strong bipartisan vote. We look forward to working with you on the bill as it moves through the 

legislative process. We believe that a strong focus on the CSP program at the federal level will help to 

provide all students with high-quality educational options that will prepare them for college, for 

productive citizenship, and for life. 

Sincerely, 

Members of Chiefs for Change 

Janet Barresi, Oklahoma State Superintendent of Public Instruction 

Deborah A. Gist, Rhode Island Commissioner of Elementary ond Secondary Education 

Kevin Huffman, Tennessee Commissioner of Education 

Tom Luna, Idaho State Superintendent of Public Instruction 

Mark Murphy, Delaware Secretary of Education 

Hanna Skandera, New Mexico Public Education Department Secretary-Designate 

John White, Louisiana State Superintendent of Education 

P.O. Box 10691' Tallahassee, FL' 32302' www.chiefsforchange.org 
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CONSORT!UM FOR CITIZENS 

WITH DISABILITIES 

March 31, 2014 

The Honorable John Kline 

2439 Rayburn House Office Building 

Washington, DC 20515 

Dear Congressmen Kline & Miller, 

The Honorable George Miller 

2205 Rayburn House Office Building 

Washington, DC 20515 

The Consortium for Citizens with Disabilities Education Task Force (CCD) is a coalition of more than 

100 organizations that advance the rights of our nation's six million children and youth with 

disabilities eligible for services under the Individuals with Disabilities Education Act (IDEA). We are 

writing to express support for the Success and Opportunity through Quality Charter Schools Act. 

Thank you for introducing this important legislation. 

This bill addresses our long-standing concerns about the under-enrollment of students with 

disabilities in charter schools by requiring charter school authorizers to monitor how charter schools 

not only recruit and enroll students with disabilities but also how the schools plan to retain these 

students once enrolled. The bill also includes new requirements that will help charter schools 

intentionally plan for and consider how they will meet the needs of students with disabilities and 

how to help them thrive. 

We know that the challenges facing students with disabilities issues are many, but these students 

possess a wealth of potential to succeed and meet high standards. We applaud this bipartisan effort 

and thank you for your work to ensure that students with disabilities are appropriately served in 

charter schools. 

Sincerely, 

ACCSES 

Autism National Committee 

Brain Injury Association of America 

Council for Exceptional Children 

Council for Parent Attorneys and Advocates 

Disability Rights Education & Defense Fund 

Higher Education Consortium for Special Education 

National Association of State Directors of Special Education 

National Center for Learning Disabilities 

National Down Syndrome Congress 

National Parent Teacher Association 

The Advocacy Institute 
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Consortium for Citizens with Disabilities is a coalition national consumer, advocacy, provider and 

professional organizations headquartered in Washington, D,C. Since 1973, the CCD has advocated on behalf of 

people of all ages with physical and mental disabilities and their families, CCD has worked to achieve federal 

legislation and regulations that assure that the 54 million children and adults with disabilities are fully 

integrated into the mainstream of society, For additional information, please contact: 

Katy Beh Neas, Easter Seals 

Cindy Smith, National Disability Rights Network 

Lindsay Jones, National Center for learning Disabilities, 

202.347.3066 

202-408-9514 ext, 101 ",,e'''.Lo,2'cC! .. '''',,"'''2'",,C'''''''J5 646-616-1257 
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April 1, 2014 

The Honorable John KHne 

2439 Rayburn House Office Building 

Washington, DC 20515 

Tnt':' Honorable George Miller 

2205 Rayburn House Office Building 

Washington, DC 20515 

Dear Congressmen K1ine & Miner, 

On behalf of the Coundl for Exceptional ChHdren ((EC), the largest professional organization of teachers, administrators, parents, 

and others concerned with the education of children with disabilities and/or gifts and ta!ents! am writing to express support for the 

Success and Opportunity through QuaUty Charter Schools Act. 

CEC has long been concerned by the lack of access for students with disabHities to charter schools and the lack of oversight ensuring 

that students with dlsabHities In charter schools are appropriately served and receive all of their rights under the !ndividuals with 

Disabilities Education Act (IDEA}. pleased to see provisions within the Success and Opportunity through Quality 

Charter Schools Act which would support increased access, 

encouraged to see the following: 

and accountabiHty for these schools. Spec1flcaHy, CEC is 

A requirement that State entities de.scribe in their 8pplications how they will ensure charters can meet the 

educational needs of students with disabilities; 

An entities will ensure authorizing agencies ensure charter schools are meeting the 

obligations of lDEA and section 504; 

At) <.!ssuranc,,' that State entities will adequ<:ltE'!Y monitor and help charter schools to recruit, EnroJi, 

needs of all students with disabilities; and 

The definition of High Quality Charter School spedflca!1y includes schools that have demonstrated in 

significantly incrt'<lsing aC3demic achievement for a1l students, and specifically students with disabilities. 

provisions represent a step forward for education policy in our nation and an acknowledgement that charter schools must 

include and do more for students with disabilities. We commend this bi~partisan effort and look forward to working together to 

ensure that the needs of students with disabilities adequately address in a11 federal education initiatives, 

Sincerely, 

Deborah A. Ziegler 

Associate Director 

Polky and Advocacy Services 

Council for Exceptional Children 
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April?,2014 

Chairman John Kline 

Congressman George Miller 

U.s, House Committee on Education and the Workforce 

2181 Rayburn House Office Building 

Washington, DC 20515 

Dear Chairman Kline and Congressman Miller: 

On behalf of state education leaders across the nation, I am pleased to support HJt 10, the 

Success and Opportunity through Quality Charter Schools Act, This bipartisan bill would 

reauthorize and update the federal Charter Schools Program under the Elementary and 

Secondary Education Act to help prepare students to better compete and contribute to our 

global economy through innovative public school settings, 

KR, 10 supports state efforts to develop and expand charter schools by authorizing activities 

related to opening and preparing to operate new charter schools, as well as for the replication 

and expansion of successful charter models, 

The Success and Opportunity through Quality Charter Schools Act also includes provisions to 

support the evaluation of the impact of the charter school program, including the impact on 

student achievement; ensures that charter schools that receive funds meet the educational 

needs of all students, including students with disabilities and English learners; supports efforts 

to strengthen the charter school authorizing process; and continues support for the sharing of 

best practices between charter schools and traditional public schools, 

We hope and expect that reauthorization of the Charter Schools Program will facilitate 

additional bipartisan legislative activity on overdue reauthorizations such as the Elementary 

and Secondary Education Act, We look forward to working with you and your congreSSional 

colleagues to fully update federal education law and policy to support state education system 

improvement 

Sincerely, 

Chris Minnich 

Executive Director 
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The COlillcil of Parent and Advocates, Inc. 

A national voice ji)r special education rights ami advocacy 

l, 

Tile llonorable John Kline. Chairman The Honorable Miller. Ranking Member 

Education 

U.S. House 

Chairman Kline and Ranking Member Miller: 

Education & the Workforce Committee 

U.s. House of Representatives 

Washington, DC 20515 

The Council of Parent Altol11eys and Advocates, Inc. (COPAA) is an independent, nonprofit, 

of attorneys. advocates, parents and related Over 1 AOO 

civi! rights and secure excel knee in education on 

COPAA', mission to be a national voice lor 

COPAA is in the heliefthat 

or her community. 

schoois appropriately serving students with 

taxYour hill takes students with disabilities must have equal 

the outcomes of these students. Specifically, the bill: 

Requires that the explanation of how it \vill \.'I/ork to 

the needs of studc111S served such progran:1S, including students with disahilities .. l' 

that State entity provide assurances that it \:viH provide technical to enroll, to 

recruit and (llso to retain traditionally underserved at similar to non-charter public schools. 

Requires eligible charter schools hyall federal laws impacting educational civil rights of 

students with disabilities and their lamilies including: the Elementary and Secondary Education Act, part B 

lndividuals witb Disabilities Education Act, title Vl ofthe Act of 1964, section 504 of 

the Rehabilitation Act of 1973, the Age Discrimination of 1975, title IX ofille Education Amendments 

of the Family Educational Rights and Privacy Act and the Americans iNith Disabilities Act. 

Requires high-quality charter schools 10 demonstrate student academic achievement and an in 

rates as an example ofhmv high charter school might accornplish such achievement. 

PO Box 6767, Towson MD 21285 Ph: (4Hl) 372-0208 Fax: (410)372·{)209 www.copaa.org 
34 


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Page2of2 

COPAA commends you for these additions to the bill. We also urge you to engage in an open and public dialogue 

- and include in the Congressional Record - the many reasons why students with disabilities should be more 

equitably included in the recruitment, enrollment and retention efforts of charter schools receiving federal funds. 

Students with disabilities can and do achieve meaningful outcomes when they are taught to the same high standards 

as their peers and provided the instructional supports, services and accommodations they require to fully 

demonstrate their full range of knowledge of skills. 

COPAA looks forward to working with you as the process moves forward to bring this bill to the House floor. 

Sincerely, 

Denise Marshall 

~~~ 

Executive Director 

PO Box 6767, Towson MD 21285 Ph: (410) 372-0208 Fax: (410)372-0209 www.copaa.org 
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April 7, 2014 

The Honorable John Kline 

The Honorable George Miller 

U.s, House Committee on Education and the Workforce 

2181 Rayburn House Office Building 

Washington, DC 20515 

Dear Chairman Kline and Ranking Member Miller: 

I am writing to express The Education Trust's support for H,R, 10, the Success and Opportunity through 

Quality Charter Schools Act Charter schools remain an important education reform tool for aUf nation's 

children, especially for low-income students and students of color, and this bill will strengthen their 

impacL Thank you for your leadership in moving this important legislation, 

In expressing our support for H,R, 10, we want to thank the Committee for taking measures to improve 

charter school quality, strengthen access and outcomes for English learners and students with 

disabilities at charter schools, and ensure parents have the information they need to make the best 

educational decision for their children, Setting a critical expectation around quality, the bill places a 

stronger emphasis on the standards for charter schools and the authorizing process used to approve 

them, The bill's additional technical assistance should ensure better services and educational outcomes 

for students that attend such schools, Furthermore, the bill's focus on quality controls between states 

and charter school authorizers is critical, especially in regards to how a charter school's academic 

performance will factor into the renewal or revocation of its charter, 

Building on the emphasis around quality, H,R, 10 makes a number of improvements to the statute 

pertaining to students with disabilities and English language learners, Specifically, the bill requires states 

to monitor recruitment and enrollment to ensure that the needs of these students are met in charter 

schools, In addition, states would provide technical assistance to foster higher charter school 

enrollments of students with disabilities and English language learners, comparable with that in 

traditional public schools, 

lastly, the bill ensures that charter schools provide information about program offerings, support 

services, and performance and enrollment data so parents can make informed decisions on where their 

children go to schooL This additional information will allow parents to fully understand the educational 

environment and course offerings of the schooL 

Thank you again for your leadership in moving this important bill forward, We urge the Committee to 

pass this legislation with bipartisan support, 

Sincerely, 

Kati Haycock 

The Education Trust 
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FOR IMMEDIATE RELEASE 

April 1, 2014 

Contact: Katie Kelly, 312,376.2327 

katiek@qualitycharters,org 

National Association of Charter School Authorizers Announces Support 

for U.S. House Quality Charter Schools Sill 

Provisions to Strengthen Authorizing a Key Component of the Bipartisan legislation 

The £tl.!:jQllil!J::,J;iQl;@!illILQ!J1lliJjl!lL2!;!lQ£!lllJilllQ!~!2 (NACSA) has announced its strang support for 

new legislation that focuses on both the growth and the quality of the charter school sector. The 

organization's support for the Success and Opportunity through Quality Charter Schools Act (HR 10) was 

announced Monday during a congressional visit to Global Academy Charter School in Minneapolis by 

one of the Act's primary authors, U.s. Representative John Kline (R-MN), Kline was accompanied by 

committee member Representative Luke Messer (R-IN) and NACSA president and CEO §r!~f,\jf.tlmQ!l£!, 

Kline, Chair of the House Education and the Workforce Committee, along with ranking Democratic 

Representative George Miller (D-CA) introduced the bipartisan legislation Tuesday with the intent of 

both expanding and strengthening the federal Charter School Program (CSP). In its announcement, 

NACSA noted the Act's specific provisions to support the continued growth of the charter sector both 

among successful networks of charter schools and by stand-alone charter schools launched by 

educators, parents and communities. 

"The federal CSP program is a primary driver for growth in the sector, but more importantly, it is a 

primary lever for improved quality, Growth without quality is not our objective," said Greg Richmond, 

NACSA president and CEO, "Quality is our objective and the Act contains strong provisions to promote 

quality and accountability among charter schools:' 

Richmond noted several new provisions that expand both the power and the reach of this lever: 

States receiving CSP grants may spend at least 7% of these funds to improve the quality of 

charter school authorizing and their application will be judged by the quality of their plan to 

do so; 

State recipients must support authorizers in their school accountability efforts including the 

provision of student performance data; and 

States must demonstrate that they have certain controls in place to ensure that schools can 

be held accountable for academic, financial and operational performance. 

Richmond said that through this program states are granted the resources to grow a strong quality 

charter sector, the incentives to improve authoring in their state, and the flexibility to support a vibrant 

educational environment. Richmond also pointed to the creation of a new grant program to replicate 

and expand high quality charter schools, 

He added that the emphasis on replicating quality is important In 2012-2013, the sector served more 

than 2.3 million students in nearly 6,000 schools, If recent growth trends continue, the sector could 

double in size by 2025, serving 4,6 million children and representing nearly 10% of all public school 
37 


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FOR IMMEDIATE RElEASE 

April 1, 2014 

Contact: Katie Kelly, 312.376.2327 

katiek@qualitycharters.org 

students, But in some places quality remains an issue·· an issue that NACSA's Richmond contends 

requires stronger authorizing, 

"Through its 12~.Milli'ln UI[!i:!i campaign, NACSA is committed to changing the lives of one million 

children across the nation. This can only happen through stronger policies that govern charter schools, 

stronger practices to ensure autonomy and accountability, and stronger people dedicated to doing the 

important work of authorizing, This legislation is an important step in that campaign." 

NACSA's support for the federal legislation is in line with recommendations included in its recent 

pu blication !i!?121i£flli1mJ:]gf!lilJd'Q}jj:y1f!:92illU1€1l!1i11if:m..!Q.;lli1;'l2Q!r11I::!!Lf5f12li£!;ill()flJ1!:!ii:siJ:QJ:!!!l1J'dlt1flJ.'l: 

f§.;f1Q!1ll!flijWWYll2f1lQ:QfjS!!.?Qj~~2!1\!i. The report called on legislators, authorizers, and other 

policymakers to build a policy environment that encourages the creation of more great schools based on 

successful models. 

The National Association of Charter School Authorizers (NACSA) is committed to advancing excellence 

and accountability the charter school sector and to increasing the number af high· quality charter 

schools across the nation. To accomplish this mission, NACSA works to improve the poliCies and proctices 

of authorizers-the organizations deSignated to approve, monitor, renew, and, if necessary, close charter 

schools, NACSA provides troining, consulting, and policy guidance to authorizers, It also advocates for 

laws and policies that raise the bar for excellence among authorizers and the schools they charter, In late 

2012, NACSA launched its One Million Lives compoign to give one million more children the opportunity 

to attend a great school, 

### 
38 


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April 7, 2014 

The Honorable John Kline 

Chairman 

The Honorable George Miller 

Senior Democrat 

Committee on Education and the Workforce 

2181 Rayburn House Office Building 

Washington, DC 20515 

Committee on Education and the Workforce 

2101 Rayburn HOllse Office 

Washington, DC 20515 

Dear Chairman Kline and Senior Democrat Miller: 

On behalf onhc National Alliance for Public Charter Schools (National Alliance), I am writing 

to thank you for introducing H.R. ] O. the Success and through Quality Charter 

Schools Act. This bipartisan bill 10 reauthorize the Charter Schools Program (CSP) wi!! 

strengthen education by the growth of high-quality public charter schools and 

increasing educational all studcnts by innovation in our public 

education system. 

Many of our nation's most successtl.i! charter schools would not have been able to their 

doors without the CSP program, and we are grateful that H.R. 10 will bctter target to states 

with laws that support the growth charter schools. In particular, \ve are thankful 

that the Amendment in the Nature to H.R. 10 proposes several key improvements 

to existing law, such as: 

in the state grant competition to states 

charter schools; 

do not limit the growth of 

aside it portion of state grant awards to improve the quality of charter schoo! 

Formally creating a federal grant program to support the replication and expansion of 

high-quality charter schools; 

Making state charter support organizations eligible to receive grants and disburse sub 

gran!s; 

and in statute the Department of Education's recent lottery 

to allow schools to serve more students; 
39 


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The Honorable John Kline 

The Honorable George Miller 

April 7, 2014 

Page 2 

Strengthening state application requirements to ensure that start-up funds are awarded to 

charter schools that meet the definition of a charter school, and not to schools that lack 

fundamental autonomy over budget, operations and personnel; 

Allowing students to remain within an existing network of charter schools as they move 

from elementary to middle to high school, without having to reapply through a lottery; 

and 

Providing increased flexibility for the use of start-up grant funds to design and open new 

public charter schools. 

The National Alliance believes these policy changes will pave the way for more high-quality 

charter schools to begin serving students and families and help reduce the length of charter 

school waiting lists, which currently include nearly one million student names. 

While the National Alliance supports H.R. 10, we also look forward to working with you and 

other Members of the Committee to further refine and improve the proposal, in the following 

areas, as it moves through the legislative process. 

• Authorization Level- NAPCS asks that additional consideration be given to the overall 

authorization level for the Charter Schools Program, which the bill would cap at $300 

million for each year of the authorization. While we understand the difficult funding 

choices that Congress must make, the National Alliance believes an increased 

authorization level for H.R. 10 (including growth in the out-years) is needed to help meet 

the existing and growing parent demand for high-quality public school options and the 

major need for facilities support for public charter schools. 

Grant Awards - NAPCS has concerns about the implementation of grant awards under 

section 5203( c )(3), which would require the Secretary to "front-load" grants by wholly 

funding each grant awarded, without making continuation awards. The National Alliance 

is concerned that this provision may limit the Department of Education's ability to hold 

grantees accountable, redirect funds from states that make fewer subgrants than 

anticipated, and impose on states the burden associated with more frequent more 

competitions. 

• Priorities - To better support efforts to ensure equitable facilities policies at the state 

level, the National Alliance recommends that priority language be added to section 

5203(f)(2) for a state that provides charter schools, or requires districts and cities to 

provide: funding for facilities; assistance with facilities acquisition; access to public 

facilities; the ability to share in bonds and mill levies; the right of first refusal to lease or 

purchase public school buildings; or low or no-cost leasing privileges to charter schools. 
40 


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The Honorable John Kline 

The Honorable George Miller 

April 7,2014 

Page 3 

• Uses of Funds - The National Alliance appreciates the Committee's efforts to allow CSP 

funds to be used more flexibly so that school leaders are equipped to meet the unique 

needs of the communities they serve. While the language in H.R.l 0 is significantly more 

flexible than current law, we would like to ensure the language is interpreted as allowing 

for critical start-up costs. Flexibility is needed to allow Charter Schools Program funds to 

be spent not only on previously allowed expenses such as desks and books, but also on 

equally crucial items such as transportation, which is especially critical in rural 

communities. 

• Replication and Expansion of High-Ouality Charter Schools - We recommend that the 

funding available for charter management organizations to replicate and expand highquality charter schools under section 5205(b) be more consistent with the level 

appropriated by Congress under the FY 2014 Consolidated Appropriations Act, which 

requires that the Secretary spend not less than $45 million for this specific purpose. In 

addition, the application requirements for replication and expansion grants need to be 

clarified, as the purpose of this grant competition differs from the state grant competition, 

and it therefore requires different application requirements. 

Thank you again for introducing bipartisan legislation to update and improve the Charter Schools 

Program. Charter schools are showing us that it is possible for all students - regardless of their 

backgrounds - to achieve at high levels and be prepared for college and life. We are pleased that 

the Committee will consider H.R. 10, the Success and Opportunity through Quality Charter 

Schools Act, and look forward to helping enact this critical legislation into law. 

Sincerely, 

President and CEO 

National Alliance for Public Charter Schools 
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National Association of State Directors of Special Education, Inc. 225 Reinekers Lane, Suite 420, Alexandria, VA 22314 

Tel: 7031519-3800 Fax: 703/519-3808 www.nasdse.org 

March 31, 2014 

The Honorable John Kline 

2439 Rayburn House Office Building 

Washington, DC 20515 

The Honorable George Miller 

2205 Rayburn House Office Building 

Washington, DC 20515 

Dear Chairman Kline and Ranking Member Miller: 

On behalf of The National Association of State Directors of Special Education (NASDSE), which 

represents the state directors of special education in the states, D.C., the Department of 

Defense Education Agency, the federal territories and the Freely Associated States, I am writing 

in support of your new charter school legislation, the Success and Opportunity through 

Quality Charter Schools Act. Thank you for introducing this important legislation. 

NASDSE staff has been working with charter school authorizers and operators for more than 20 

years to train them in their responsibilities regarding students with disabilities. We are pleased 

that this bill addresses our long-standing concerns about the under-enrollment of students with 

disabilities in charter schools by requiring charter school authorizers to monitor how their 

schools not only recruit and enroll students with disabilities, but also how the schools plan to 

retain these students once they enroll. The bill also includes new requirements that are 

designed to help charter schools plan for, and consider, how they will meet the needs of 

students with disabilities and how to help them thrive. 

Charter schools are a well-established integral part of education in many communities across 

the country. We want to make certain that students with disabilities are welcome in these 

environments and we believe that your bipartisan bill is an excellent step towards meeting this 

goal. Thank you for your work to appropriately consider their needs. 

Sincerely, 

~6W)~~. 

Theron (Bill) East, Jr., Ed.D. 

Executive Director 
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March 31, 2014 

The Honorahle John Kline 

2439 Rayburn House OfTice Building 

Washington, DC 20515 

The I !onorable George Miller 

2205 Rayburn House Ot1'icc Building 

Washington, DC 2051 

Dear Congressmen Kline & Miller, 

On behalf of the 60 million cbildren and adults with learning and attcntion issues and the more 

than 600,000 parents serve each month, I am writing to for the Success and 

Opportunity through Quality Charter Schools Act. Thank you this important 

legislation. 

This bill addresses our long-standing concerns about the under-enrollment of students with 

learning and attention issues in chalter schools hy charter schoo! authorizers to monitor 

how charter schools not only recruit and enroll students disabilities but also how the schools 

plan to retain these students once enrolled. The bill also includes new requirements that will 

chatter schools intentionally plan and consider how they will meet the needs of students 

disabilities and how to help them thrive. 

We know that the challenges facing students with learning and attention issues are many, but 

these students arc among the brightest in our nation and possess a wealth of potential to succeed 

and meet high standards. We applaud this bipartisan effort and thank you for your work to 

appropriately consider their needs. 

Sincerely, 

James H. Wendorf 

Executive Director 

381 Park Avenue So .• Suile 1401 

LD.org 

• Fax: (212) 545·9665 
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April L 2014 

CJ<hc Honorable John 

Education 

U.S. House 

Dear Chairman Kline and Ranking Member Miller: 

The mission of the National Center for Special Education in Charter Schools (NCSECS) is to advocate for students 

with teaming needs to ensure lhat if they are interested in attending chaneI' schools, they are able 10 

and thrive in schools designed to enable all students to sllcceed. NCSECS is \\THing today to support the 

introduction of the "Sw.:ce5...<; and Opportunity through Quality Charter Schools Act:' We appreciate your attcntinTI 

[in the billJ to\\'ard fostering and promoting innovation in the charter sector that ·will better support and address the 

lcm"ning needs of students \vith disahilities. SpeciHcally. the bill nmv reinforces the importance of: 

Ensuring that students with disabilities are recruited. tl1ro!!ed and retained at compmahle rates jo their 

while also ensuring that the bill docs tmintC'nded consequences that can lead to quotasetting -or some other flawed methodology that \".m undermine the goa! to include students 'with a wide 

oC disabilities being served by charler schools, 

Rcqulrin¥. state to include in their application an explanation ofhmv they 'will work to "meet the 

needs of students served by such programs. including students with disabilities ... " This addition heirs 

much needed emphasis on the up-front planning that must occur in order to intentionally and 

successfully meet the needs of students with disabilities. 

Allowing program thl.': use of\vcightcd lottcries in charter school admissions that comply \vith 

state and federal b\v. NCSECS 5UPP01is p0Jicy that seeks to create a balance of authorizer autonomy with 

servirc-orirJltcd process that will directly benefl1 students. 

These additions to the charter ](1\V will help support and rclnforc .. ' ... that after 20 years of innovation and investment 

ill cbarter $chools ~ there still a critical necd to .ensure students with disabitities have equitable access to a quality 

education and must be supported and expc('ied to achieve thl.~ same outcomes other students, 

look forward to I,vorking '\-vith you the bill advances through the House. 

Sincerely, 

Lauren Morando Rhim 

Executive Director 

215 Madison Avenue, 6th Floor New York 
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Honorable John 

Chairman 

April 2014 

The Honorable 

Senior Democrat 

Miller 

Committee on Education and the Workforce 

2181 Rayburn House Office Building 

DC 

Committee on Education and the Workforce 

2101 Rayburn HOLlse Office BUilding 

Washington, DC 

Dear Chairman Kline and Senior Democrat Miller: 

On behalf of the Foundation for Excellence Education, ! am pleased to write in support of 

H,R, 10, the Success Opportunity through Quality Charter Schools Act, which will promote 

state efforts to authorize, develop, and expand high-quality charter schools and help ensure 

more children have access to the critical educational opportunities they deserve, 

The Foundation for Excellence in Education, founded by fonner Governor Jeb Bush in 2008, 

with decision makers on developing, adopting and implementing education reform 

policies, We are a hands-on, how-to organization that provides model legislation, rUle-making 

expertise, implementation strategies, and public outreach, Our staff has years of experience 

working with state and local governments and legislative bodies, in the classroom, and with the 

media, We are working toward an education system that maximizes every student's potential 

learning and prepares all students for success in the century, 

Across our nation's diverse and dynamic one thing unites us all: concern about the 

quality of education in America, We know a quality education can change a life; it can provide 

each and every student with the knowledge and skills to achieve his or dreams, while 

states across our nation are experiencing a fundamental shift toward reform-minded education 

policies, too many students remain victims of the status quo, 

Therefore, the Foundation supports a comprehensive reform agenda to create a high-quality, 

student-centered education system, including policies that empower families to choose 

educational options through public charter schools, 

Accordingly, the Foundi.ltion for Excellence in Education is pleased the Success and 

Opportunity through Quality Charter Schools Act: refocuses the federal Charter Schools 

Program to promote high-quality charter schools at the state and local level; promotes 

initiatives designed to improve charter school authorizing; allows states to use funds to start 

new charter schools well as expand and replicate existing high-quality charter schools; 

authorizes a federal Charter Management Organization (CMOl grant program to support the 
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of high-quality charter schools nationwide; and upholds states' authority over most 

decisions to distribute charter funds within boundaries. 

We are pleased reported by the on Education the IAlclrkl-mc-p 

bipartisan and look forward to working with on this bill it 

legislative process. 

Foundation Excellence in 
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April 8, 2014 

The Honorable John Kline The Honorable Miller 

House Education and Workforce Committee 

2181 Rayburn House Office Building 

Washington, DC 20515 

House Education Workforce Committee 

2JOI Rayburn House Office Building 

Washington, DC 20510 

Dear Chairman Kline and Ranking Member Miller: 

On behalf of the National Council of La Ran, the nation's largest 

organization,1 introduction of The Success 

Quality Charter 10). This hi!! is an overdue step strengthening and 

mCldernizin'g the federal chmiel' schools and will have a positive impact on a vast 

number school children and across the country. 

As a result of your thonghtfnlleadership, H.R. 10 will raise student achievement, increase access 

to enrollment, and promote replicable models of successful schools nationwide. NCLR believes 

this bill is an important step in an ongoing (0 rethink innovation in edncation and strive 

(0 advance outcomes across indicators. For the Latino legislation 

such as this is important to provide the best possible education to all too 

often lett 

When too many low-income, minority, and Limited Proficiency students tall behind 

their peers, charter schools have a record these students and their 

long-term success. H.R. ! 0 solidify this trend and deserves (he support 

Committee and members of the House of Representatives. 

As consideration of this hill moves forward, I 

the bill and am always available for any 

Sincerely, 

Delia Pompa 

Senior Vice President 

to work with your staff to continue to perfect 

questions. 
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April 9, 2014 

The Honorable John Kline 

Chairman, Committee on 

Education and the Workforce 

U.S. House of Representatives 

2175 Rayburn House Office Building 

Washington, DC 20515 

The Honorable George Miller 

Ranking Member, Committee on 

Education and the Workforce 

u.s. House of Representatives 

2175 Rayburn House Office Building 

Washington, DC 20515 

Dear Chairman Kline and Ranking Member Miller: 

On behalf of the more than 200 chief executive officers who are members of 

Business Roundtable, I write to express support for H.R. 10, the Success and 

Opportunity through Quality Charter Schools Act, which reauthorizes the 

federal Charter Schools Program under the Elementary and Secondary 

Education Act. 

Last year, Business Roundtable released a report titled "TaldngActlon on 

Education and Workforce Preparedness." As part of this report, we 

recommended that federal, state and local policymakers Increase the 

number of public school options, including charter schools, available to 

parents and students. This bipartisan legislation takes an Important step 

toward achieving this goa!. 

Our nation's capacity to develop a skilled, prepared workforce Is inextricably 

linked to the quality of our education system. Innovations, such as charter 

schools, playa critical role in efforts to improve education and give more of 

our nation's children access to the opportunities they deserve. 

We thank you for introducing this Important legislation and look forward to 

working with you, other members of the House of Representatives, the 

Senate and the Administration to ensure that H.R.l0 is enacted into law. 
48 

SUMMARY

H.R. 10, the Success and Opportunity through Quality Charter 

Schools Act, streamlines and modernizes the existing charter school 

programs under the Elementary and Secondary Education Act. In 

current law, two charter school programs exist: 

• The Charter School Program supports grants for charter 

school developers to open new charter schools. The program 

also provides funds to disseminate best practices and provide 

state facilities aid to charter schools. The program was last authorized at $300 million in FY 2002 and such sums as necessary for FY 2003 through 2007. 

• The Charter School Credit Enhancement Program assists 

charter schools in accessing better credit terms for funding to 

acquire and renovate facilities used to operate a charter school. 

The program was last authorized at $150 million in FY 2002 

and such sums as necessary for FY 2003 through 2007. 

The Success and Opportunity through Quality Charter Schools 

Act consolidates the two programs into one, refocuses the new program to promote high-quality charter schools at the state and local 

levels, and allows states to use federal funds to start new charter 

schools as well as expand and replicate existing high-quality charter schools. Additionally, the bill authorizes a Charter Management 

Organization grant program to support the organization’s success 

in replicating and expanding high-quality charter schools nationwide. 

The new Charter School Program will consist of three parts: 

• Grants to support high-quality charter schools will be 

awarded to a State Educational Agency, the State Charter 

School Board, the Governor, or a Charter School Support Organization. The grants will support the expansion and replication 

of high-quality charter schools, along with new, innovative 

charter school models by state entities committed to charter 

school quality, which increases opportunities for all students to 

benefit from quality charter schools. Additionally, each state 

will use a portion of the funding to support quality initiatives 

aimed toward improved charter school authorizing. 

• Facilities Aid will be awarded to continue credit enhancement activities and support state facilities aid for charter 

schools. 

• National Activities will allow the Secretary of Education to 

operate a grant competition for charter schools in states that 

did not win or compete for a state grant and a grant competition for high quality charter management organizations 

(CMO). This section also requires the secretary to offer technical assistance to eligible grantees applying for the grant, and 

to grantees implementing the grant. The secretary will also be 

allowed to disseminate best practices to ensure all public 

schools may benefit from charter schools’ success. Finally, the 

secretary will conduct an evaluation of the effects of the legislation on charter schools, including on student achievement. 

The Success and Opportunity through Quality Charter Schools 

Act authorizes the Charter School Program at $300 million for FY 

2015 through FY 2020. The bill clarifies state-determined weighted 

lotteries are permitted under this program and clarifies students in 


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49 

affiliated charter schools can attend the next immediate grade in 

that network’s school. 

Furthermore, the bill makes technical corrections to other provisions in the Charter School Program, including modifying the definition of a ‘‘charter school’’ to clarify a charter school can serve 

early childhood students as well as postsecondary students. Finally, the legislation adds five new definitions to the law: ‘‘charter 

management organization,’’ ‘‘charter support organization,’’ ‘‘highquality charter school,’’ ‘‘expansion of a high-quality charter 

school,’’ and ‘‘replicable, high-quality charter school model.’’ 

COMMITTEE VIEWS

BACKGROUND

A public charter school is a publicly-funded elementary or secondary school operated according to the terms of a charter or contract granted by a public chartering agency. The terms of a charter 

typically provide the charter school operator with increased autonomy in how to operate the school in exchange for greater accountability for results or student outcomes. Charters are usually granted for a limited time period, typically ranging from fewer than five 

years to as many as 15 years. In order to retain or renew its charter, a school must adhere to the accountability requirements written into its charter and attract enough students to continue functioning as a viable school. 

Charter schools are a state education reform initiative that 

began in Minnesota in 1991. The Improving America’s Schools Act 

of 1994 included support for starting charter schools. The Credit 

Enhancement Program, which began in 2001 through the appropriations process, provides grants to eligible entities to help charter 

schools leverage other funds through credit enhancement initiatives to acquire, construct, renovate, or lease academic facilities. 

The first charter school opened in 1992. Today, 6,400 charter 

schools in 42 states and the District of Columbia serve more than 

2.5 million students. Forty-two states have enacted charter school 

laws, giving parents and students an education alternative to traditional public schools. However, this growth is not enough to meet 

the demand. An estimated 920,000 students are on waitlists to 

enter charter schools. The demand is understandable. Since 2010, 

15 of 16 ‘‘gold standard’’ research studies conducted on public charter school student achievement have found public charter school 

students are outperforming their traditional school peers. In 2013, 

the Center for Research on Educational Outcomes released a study 

that found a charter school education had a positive impact for 

many subgroups, including Black students, students in poverty, 

English learners, and students in special education. For English 

learner students who are Hispanic, attending a charter school resulted in 50 additional days of learning in reading and 43 additional days of learning in math. Yet, charter schools continue to 

face challenges in serving certain populations of students, in particular students with disabilities—including those with lower incidence disabilities—and English learners. 


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50 

LEGISLATIVE CHANGES

H.R. 10, the Success and Opportunity through Quality Charter 

Schools Act, improves access for traditionally underserved populations, supports the creation, replication and expansion of highquality charter schools, and strengthens accountability for developers who receive federal funding to open, replicate, or expand 

charter schools. Consolidating the two charter school provisions 

into one program better focuses support for all elements important 

to creating high-quality charter schools. 

The charter school movement has seen robust growth over the 

past decade. There are now many high-quality charter schools eligible to receive federal and state support to expand and replicate 

their successes. The Committee on Appropriations supported this 

effort through a reservation within the Charter School Program appropriation, and the Committee on Education and the Workforce 

believes it is important to update the authorizing legislation to ensure states support these schools. The Success and Opportunity 

through Quality Charter Schools Act adds an expansion and replication use of funds under each State Quality Charter School 

Grant to support the start-up of new, innovative charter school 

models, as well as the expansion and replication of high-quality 

charter schools. The committee believes successful replication and 

expansion of high-quality charter schools are dependent on state 

support and community buy-in. This belief is reflected in the allowance of state entity subgranting for these purposes and a decreased 

reliance on funds awarded directly to developers from the secretary 

of education. 

Charter schools receiving funds under this program must admit 

their students through a lottery system if the demand for attendance exceeds the available slots in the schools. It is important to 

assist these schools in reaching all students who may benefit from 

the opening or expansion of charter schools. However, the focus 

must be on increasing the number of quality education options, not 

just increasing the number of charter schools available. In order to 

expand access to quality public charter schools, the legislation includes provisions to help state grantees reach out to charter school 

developers and school leaders to recruit traditionally underserved 

students, including students with disabilities and English learners; 

to promote inclusion and retention; and to meet the needs of those 

students. Further, the state grantees must award grants to urban, 

suburban, and rural areas (including Indian reservations) to ensure 

quality charter school options reach as many students as possible, 

including American Indian and Alaska Native students. 

The Success and Opportunity through Quality Charter Schools 

Act supports charter schools in serving students with disabilities, 

including students with lower incidence disabilities, English learners, and other traditionally underserved students. The legislation 

recognizes charter schools need support in recruiting, enrolling, 

and retaining these students and includes provisions to help charter schools address those challenges. The committee believes the 

technical assistance required of grantees will help charter schools 

with these goals. H.R. 10 will allow weighted lotteries that help ensure educationally disadvantaged students have a better chance to 

attend a charter school. A weighted lottery is a mechanism used to 


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51 

create diverse student populations. H.R. 10 permits the weighting 

of specific student attributes to give a statistical advantage to disadvantaged students, or a subset of those students. The lottery 

should remain a fair process to ensure all students have the opportunity to attend these sought-after schools. In addition, this provision clarifies charter schools in receipt of Charter School Program 

funds may use a weighted lottery for educationally disadvantaged 

students, provided the weighted lottery is not prohibited by state 

law and is not used to create a school made exclusively of one student subgroup. 

Ensuring grantees award funds for the creation, replication, and 

expansion of high-quality charter school remains paramount. When 

awarding subgrants, state entities should ensure charter school developers open a school that meets the intent and requirements of 

the law, and in particular, the definition of a charter school. When 

subgrantees are applying to expand or replicate already existing 

charter school models, the state entity must ensure the models 

meet the definition of high-quality charter school. In particular, the 

state entity should ensure the charter school is exempt from significant state and local requirements that inhibit the operation of 

a school and has a high degree of autonomy over budget and all 

operations. 

When recruiting students, charter schools should ensure parents 

have the information they need to make the best decisions possible 

for their children. This includes encouraging parents to examine 

the academic success of the school, the teaching philosophy of the 

school, and the ability of the school to meet the education needs of 

any student admitted to the school. The legislation encourages 

state entities to monitor charter schools to ensure compliance with 

all federal civil rights statutes and there are no barriers to enrollment that could prevent the enrollment of students based on socioeconomic status, language proficiency, academic performance, disability, or parental involvement. The legislation supports charter 

schools that promote an inclusive environment. High-quality charter schools, as defined in the legislation, raise the achievement of 

all students, including students with disabilities, English learners, 

and other traditionally underserved populations. 

In modernizing the Charter School Program, H.R. 10 includes a 

new provision that reserves seven percent of each state grant to 

support initiatives to improve charter school authorizing. This initiative will help charter school authorizers identify key indicators 

of quality, including how to ensure the school and the authorizer 

clearly articulate the goals and expectations of each party. It will 

also help charter schools meet their obligations under existing laws 

and this Act. The funds will also be used to increase the number 

of high-quality charter schools available to students by opening 

new charter schools and by helping charter schools recruit, enroll, 

and meet the needs of students with disabilities, including students 

with low-incidence disabilities, and English learners. 

The bill requires eligible applicants to describe the quality controls agreed to in the authorizing contract and the terms of contracts with other organizations. In their applications, charter 

schools must describe how their authorizers evaluate the success of 

the schools primarily on the academic achievement of all of their 

students, as well as through other performance measures deterVerDate Mar 15 2010 04:14 Apr 30, 2014 Jkt 039006 PO 00000 Frm 00051 Fmt 6659 Sfmt 6602 E:\HR\OC\HR423.XXX HR423

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52 

mined by state law, the authorizer, and the school, as outlined in 

a legally binding performance contract. 

The legislation also requires charter schools to have transparent 

contractual relationships with management organizations. As stipulated in the U.S. Department of Education non-regulatory guidance for the current Charter School Program, charter schools receiving grants under this program should avoid conflicts of interest. 

In promoting quality authorizing practices, state grantees should 

support authorizers that make annual, independent financial audits publicly available and easily accessible, such as through posting on the school or authorizer website. In addition, state grantees 

must describe how they will provide oversight of authorizing activity in their application. 

The committee intends the requirement to describe such a system will not inhibit participation or competition by states with 

legal, constitutional, or structural barriers that constrain the 

state’s authority over the authorized public chartering agency or 

the type or number of authorized public chartering agencies. Further, as the purpose of the Success and Opportunity through Quality Charter Schools Act is to expand the number of high-quality 

charter schools available to students across the nation, it is the 

committee’s intent that oversight of authorizing activity must not 

abolish all public chartering agencies or all authorizing activity in 

any given geographic area, as this would prevent the expansion of 

high-quality charter schools and would be contrary to the purpose 

of this Act. The committee believes it is important authorizers and 

charter schools have as much flexibility in complying with these 

provisions as possible to ensure charter schools meet the expectations of their respective authorizers and still operate in an autonomous manner to meet the goals of the school. 

The Success and Opportunity through Quality Charter Schools 

Act also allows new eligible entities to compete for funding under 

State Quality Charter School Grants and provides increased flexibility in the operation of the state grant competition for start-up 

of charter schools. The bill expands the eligible entities for state 

grants to include state charter school boards, governors, and charter school support organizations, in addition to the State Educational Agency (SEA) allowed under current law. This expansion 

of eligible grantees will ensure charter schools have an opportunity 

to open and expand with the support of a grantee that believes in 

the benefit of charter schools and offers the greatest assistance to 

those schools that win subgrants. To ensure grantees are able to 

meet the requirements of the program, the legislation allows states 

to partner with an entity that can help it operate a quality program that adequately supports the thoughtful growth of charter 

schools in the state. While there may be multiple eligible grantees 

for each state, the committee supports limiting each state to one 

grant to avoid duplication in the state, ensure funds are used to 

build a cohesive statewide network of support and ensure funds 

reach as many states, and therefore schools, as possible across the 

nation. 

The new eligible grantees are also required to collaborate with 

the SEA, where appropriate. While this provision does not give the 

SEA any authority over the grantee or program the grantee is running, it will ensure the SEA and charter school operators are workVerDate Mar 15 2010 04:14 Apr 30, 2014 Jkt 039006 PO 00000 Frm 00052 Fmt 6659 Sfmt 6602 E:\HR\OC\HR423.XXX HR423

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ing together in a cohesive, statewide system, rather than creating 

parallel systems. The SEA may help distribute grants to schools, 

help the entity run the grant competition, or provide guidance to 

support the peer review requirement in the law. In addition, should 

a charter school support organization administer the grant, nothing 

in this bill shall be interpreted to grant the charter school support 

organization any authority over authorized public chartering agencies. 

H.R. 10 includes a clear listing of assurances, priorities, and selection criteria for awarding charter school grants, which will improve charter schools, improve access to high-quality charter 

schools, and expand the availability of high-quality charter schools 

as an integral component of state public school systems. For example, grantees will ensure charter schools actively participate in decisions about the public school system, providing charter schools, as 

public schools, the same voice in decisions affecting the schools and 

their students as traditional public schools. The committee believes 

this important change is an opportunity to share best practices between all public schools and ensure all schools have an equal voice 

in the public school system. An assurance each charter school has 

a high level of autonomy, particularly over budgets and all operations (including personnel) will also ensure the schools can be innovative in responding to the needs of the community. Additionally, 

the bill includes a selection priority for state entities in states that 

maximize the flexibility of their charter school statute to foster innovation and support quality charter schools. 

The legislation incentivizes states to support more high-quality 

charter schools that meet the needs of the local community. Provisions supporting the elimination of caps on students or schools will 

help get funds to states that can open new schools. The bill includes a priority for those states that have more than one statewide authorizer, or an appeals process if the only local authorizer 

is the Local Educational Agency. The committee believes this will 

ensure charter schools are not held hostage to the traditional public school system that sees charter schools as competition, rather 

than an enhancement to the public school system. The committee 

believes these provisions will help charter schools better serve students, including students with disabilities and English learners. 

H.R. 10 removes language in current law that impedes the effective use of subgrants for start-up costs, and instead permits funds 

to be used for appropriate activity related to opening and preparing 

to operate a new charter school. The committee believes this language will ensure charter schools can use funds for any non-sustained costs, including costs not permitted under current law. For 

example, transportation outlays such as a school bus, initial personnel costs, and building renovations and improvements to meet 

code would be permitted under this language. H.R. 10 also requires 

all subgrantees submit planned expenditures for the life of the 

grant and demonstrate the financial sustainability of each charter 

school receiving program funds following the grant period. 

The committee believes reporting requirements are an important 

tool for evaluating the success of grantees in fulfilling the purpose 

of the program. H.R. 10 requires grantees to report to the secretary 

of education at the end of the third year of the five-year grant period. The information submitted to the secretary on the number of 


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students served during each year of the grant period should be reported by subgrant, but is not intended to create any increased 

burdens for the schools participating in the program. 

The legislation consolidates the existing credit enhancement program and the state facilities aid program to clarify the law. The requirement to reserve 12.5 percent of the total appropriated funds 

ensures there are funds sufficient to award more than one grant 

each year under the credit enhancement program. This program 

helps charter schools access credit to obtain or renovate facilities 

to open the school. The legislative changes made to this provision 

increase the administrative reservation to 2.5 percent of each grant 

to ensure the grantee can reach out to, serve, and properly monitor 

charter schools assisted under the grant. The bill also increases the 

flexibility in awarding grants under the credit enhancement program to ensure the best grantees are receiving federal funds. 

The Success and Opportunity through Quality Charter Schools 

Act updates the national activities provisions to allow the Secretary 

of Education to run a competition for charter schools wanting to 

open in states that did not win or compete for a state grant. Additionally, the legislation authorizes the secretary to run a competition for CMOs, targeted to those having a proven record of success 

increasing academic achievement for students, operating and managing a network of schools, and partnering with states and districts 

to turn around chronically low-performing schools, not simply open 

new schools. These competitions will ensure students are not left 

behind in states that have not demonstrated the leadership to support charter schools. Successful CMOs can thoughtfully replicate 

and expand high-quality charter school models, approved by individual states in accordance with state laws. 

It is the committee’s expectation the secretary will assess the 

quality of applicants in the same manner as in the state competition and will consider their demonstrated track record of opening 

high quality schools serving a high percentage of economically disadvantaged students, and the application requirements will reflect 

this purpose of the program. The secretary will also be required to 

offer technical assistance to maximize the impact of the funds. The 

secretary will disseminate best practices to help all public schools 

benefit from the success of charter schools. Finally, the secretary 

is required to conduct an evaluation measuring the effectiveness of 

the program on charter schools, including student achievement. A 

rigorous evaluation is critical to determining whether the program 

has been successful in meeting its purpose of supporting high-quality charter schools. 

The legislation makes a few key changes to the definitions in the 

program. H.R. 10 adds five new definitions to the program: ‘‘charter school support organization,’’ ‘‘charter management organization,’’ ‘‘high-quality charter school,’’ ‘‘replicated high-quality charter 

school model,’’ and ‘‘expanded high-quality charter school.’’ The bill 

outlines charter schools must comply with the Americans with Disabilities Act and section 444 of the General Education Provisions 

Act (commonly known as the ‘‘Family Education Rights and Privacy Act of 1974’’). Additionally, the definition of a ‘‘charter school’’ 

clarifies these schools must comply with all applicable federal laws, 

such as those listed above and the Individuals with Disabilities 

Education Act, section 504 of the Rehabilitation Act, Title VI of the 


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Civil Rights Act of 1964, and the other applicable provisions of the 

Elementary and Secondary Education Act. This addition clarifies 

the requirements that must be met by the state grantees and the 

charter schools they support. Another change in the definition of a 

‘‘charter school’’ clarifies admission is permissible to the next grade 

in a school in the same network, known as a feeder pattern. The 

schools must be affiliated and the student must be entering the 

next succeeding grade. Schools may not use this provision to stop 

utilizing a lottery to fill seats created through regular attrition; 

each school must continue to abide by the class size as envisioned 

in the creation of the school. 

CONCLUSION

H.R. 10, the Success and Opportunity through Quality Charter 

Schools Act, modernizes and streamlines the charter school provisions under the Elementary and Secondary Education Act. The bill 

makes needed improvements to emphasize quality, accountability, 

and equity to the Charter School Program to better support highquality charter schools. The bill consolidates the current funding 

streams for charter schools under one authorization at $300 million 

to increase efficiencies within the operation of the program and better leverage federal funding to improve the program. 

SECTION-BY-SECTION ANALYSIS

SECTION 1—SHORT TITLE

States the short title as the ‘‘Success and Opportunity through 

Quality Charter Schools.’’ 

SECTION 2—REFERENCES

References the Elementary and Secondary Education Act. 

SECTION 3—SUBPART HEADING, PURPOSE

Amends the subpart heading and states the purpose of the Charter School Program. 

SECTION 4—PROGRAM AUTHORIZED

Authorizes the Charter School Program. 

SECTION 5—GRANTS TO SUPPORT QUALITY CHARTER SCHOOLS

Specifies the general requirements of state grants to support the 

startup or expansion and replication of charter schools. Specifies 

the information the Secretary of Education will look for in the state 

application, what assurances the grantee will be required to provide, the criteria the secretary will use to determine grant winners, 

and the priorities for grant awards. 

SECTION 6—FACILITIES FINANCING ASSISTANCE

Specifies the general requirements for facilities financing assistance. Prioritizes credit enhancement activities over state facilities 

aid. 


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SECTION 7—NATIONAL ACTIVITIES

Specifies the activities the Secretary of Education will support 

under the program, including disseminating best practices, providing technical assistance, operating a startup competition for 

non-state grant winners, operating an expansion and replication 

grant competition for charter management organizations, and conducting an evaluation of the program. 

SECTION 8—RECORDS TRANSFER

Modifies the provision to encourage more timely delivery of 

records transfer and amends the reference to the Individuals with 

Disabilities Education Act. 

SECTION 9—DEFINITIONS

Makes a change to the definition of a ‘‘charter school’’ and adds 

definitions for ‘‘charter management organization,’’ ‘‘charter school 

support organization,’’ ‘‘expansion of a high-quality charter school,’’ 

‘‘high-quality charter school,’’ and ‘‘replicable, high-quality charter 

school model.’’ 

SECTION 10—AUTHORIZATION OF APPROPRIATIONS

Authorizes the program at $300 million for each year from FY 

2015 through FY 2020. 

SECTION 11—CONFORMING AMENDMENTS

Modifies the Elementary and Secondary Education Act to address 

the changes made under this legislation. 

EXPLANATION OF AMENDMENTS

The amendments, including the amendment in the nature of a 

substitute, are explained in the body of this report. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch. H.R. 10 increases the number of high-quality charter schools; ensures charter 

schools share best practices with all public schools; improves charter school access and services for all students, including students 

with disabilities and English learners; and emphasizes quality and 

accountability in charter school authorizing. 

UNFUNDED MANDATE STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104–4) requires a statement of whether the 

provisions of the reported bill include unfunded mandates. This 

issue is addressed in the CBO letter. 

EARMARK STATEMENT

H.R. 10 does not contain any congressional earmarks, limited tax 

benefits, or limited tariff benefits as defined in clause 9 of House 

Rule XXI. 


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ROLL CALL VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee Report to include for each record vote 

on a motion to report the measure or matter and on any amendments offered to the measure or matter the total number of votes 

for and against and the names of the Members voting for and 

against. 


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smartinez on DSK6TPTVN1PROD with REPORTSInsert offset folio 60 here HR423.031

Date: April 8, 2014 

COMMITTEE ON EDUCATION AND THE WORKFORCE RECORD OF COMMITTEE VOTE 

Roll Call: 

Disposition: Ordered favorably reported to the House, as amended, 

Sponsorl Amendment: Mr. Roe ~ motion to report the bill to the House with an amendment and with the recommendation that 

the amendment be agreed to, and the bill as amended do pass. II 

Name & State Ayo No v~,¥:g Name & State Ayo No v~::g 

Mr. KLINE (MN) (Chairman) X Mr. MILLER (CA) (Ranking) X 

Mr. PETRI (WI) X Mr. SCOTT (VA) X 

Mr. McKEON (CA) X Mr. HINOJOSA (TX) X 

Mr. WILSON (SC) X Mrs. McCARTHY (NY) X 

Mrs. FOXX (NC) X Mr. TIERNEY (MA) X 

Mr. PRICE (GA) X Mr. HOLT (NJ) X 

Mr. MARCHANT (TX) X Mrs. DAVIS (CA) X 

Mr. HUNTER (CA) X Mr. GRIJALVA (AZ) X 

Mr. ROE (TN) X Mr. BISHOP (NY) X 

Mr. THOMPSON (PA) X Mr. LOEB SACK (IA) X 

Mr. WALBERG (MI) X Mr. COURTNEY (CT) X 

Mr. SALMON (AZ) X Ms. FUDGE (OH) X 

Mr. GUTHRIE (KY) X ML POLIS (CO) X 

Mr. DesJARLAIS (TN) X Mr. SABLAN (MP) X 

Mr. ROKlTA (IN) X Ms. WILSON (FL) X 

Mr. BUCSHON (IN) X Ms. BONAMICI (OR) x 

Mr. GOWDY (SC) x MLPOCAN(Wl) x 

Mr. BARLETTA (PA) x Mr. TAKANO (CA) x 

Mr. HECK (NV) x 

Mrs. BROOKS (IN) X 

Mr. HUDSON (NC) X 

Mr. MESSER (IN) X 

[Vacant] 

Totals: Aye: _____ 36 _ No: ___ 3 __ _ Not Voting: _____ _ 

Total: 40 / Quorum: 13/ Report: 21 
59 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause (3)(c) of House Rule XIII, the goal of 

H.R. 10 is to improve the quality of and access to charter schools. 

The committee expects the U.S. Department of Education to comply 

with these provisions and implement the law in accordance with 

the stated goal. 

DUPLICATION OF FEDERAL PROGRAMS

No provision of H.R. 10 establishes or reauthorizes a program of 

the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

The committee estimates that enacting H.R. 10 does not specifically direct the completion of any specific rule makings within the 

meaning of 5 U.S.C. 551. 

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause 2(b)(1) 

of rule X of the Rules of the House of Representatives, the committee’s oversight findings and recommendations are reflected in the 

body of this report. 

NEW BUDGET AUTHORITY AND CBO COST ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause 3(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 1974, the 

committee has received the following estimate for H.R. 10 from the 

Director of the Congressional Budget Office: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, April 18, 2014. 

Hon. JOHN KLINE, Chairman, Committee on Education and the Workforce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 10, the Success and Opportunity through Quality Charter Schools Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Justin Humphrey. 

Sincerely, 

DOUGLAS W. ELMENDORF, 

Director. 

Enclosure. 


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1For Charter School Programs, prior law authorized the appropriation of $300 million for fiscal year 2002 and such sums as might be necessary through fiscal year 2008. For Credit Enhancement for Charter School Initiatives, prior law authorized the appropriation of $150 million 

for fiscal year 2002 and such sums as might be necessary through fiscal year 2004. 

H.R. 10—Success and Opportunity through Quality Charter Schools 

Act 

H.R. 10 would amend and reauthorize both the Charter School 

Programs and the Credit Enhancement for Charter School Initiatives under Title V of the Elementary and Secondary Education Act 

of 1965 through fiscal year 2020 and combine them into a single 

authorization. (This authorization would automatically be extended 

one year through 2021 under the General Education Provisions 

Act.) The bill would authorize the appropriation of $300 million for 

each of fiscal years 2015 through 2021 for grants to states to develop and expand charter school facilities and to public and private 

nonprofit entities to develop means of enhancing credit to finance 

the construction and renovation of charter schools. 

For fiscal year 2014, the Congress appropriated about $250 million for Charter School Programs, but provided no funding for 

Credit Enhancement Initiatives. The previous authorization for 

Charter School Programs expired in 2008 and the previous authorization for Credit Enhancement for Charter School Initiatives expired in 2004.1

As shown in the following table, CBO estimates that implementing the bill would cost $1.0 billion over the 2015–2019 period, 

assuming appropriation of the authorized amounts. The costs of 

this legislation fall within budget function 500 (education, training, 

employment, and social services). For this estimate, CBO assumes 

that spending will follow historical patterns for the affected programs. 

Enacting the bill would have no impact on direct spending or revenues; therefore, pay-as-you-go procedures do not apply. 

H.R. 10 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

By fiscal year, in millions of dollars— 

2015 2016 2017 2018 2019 2015–2019 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ............................................... 300 300 300 300 300 1,500 

Estimated Outlays ................................................ 15 150 255 300 300 1,020 

The CBO staff contact for this estimate is Justin Humphrey. 

This estimate was approved by Peter H. Fontaine, Assistant Director for Budget Analysis. 

COMMITTEE COST ESTIMATE

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison of the costs 

that would be incurred in carrying out H.R. 10. However, clause 

3(d)(2)(B) of that rule provides that this requirement does not 

apply when the committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional 

Budget Act. 


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CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

ELEMENTARY AND SECONDARY EDUCATION ACT OF 

1965 

* * * * * * * 

SEC. 2. TABLE OF CONTENTS. 

The table of contents for this Act is as follows: 

* * * * * * * 

TITLE V—PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE 

PROGRAMS 

* * * * * * * 

PART B—PUBLIC CHARTER SCHOOLS

øSubpart 1—Charter School Programs 

Subpart 1—Charter School Program 

* * * * * * * 

øSec. 5203. Applications. 

øSec. 5204. Administration.¿ 

Sec. 5203. Grants to support high-quality charter schools. 

Sec. 5204. Facilities financing assistance. 

* * * * * * * 

øSubpart 2—Credit Enhancement Initiatives To Assist Charter School Facility 

Acquisition, Construction, and Renovation 

øSec. 5221. Purpose. 

øSec. 5222. Grants to eligible entities. 

øSec. 5223. Applications. 

øSec. 5224. Charter school objectives. 

øSec. 5225. Reserve account. 

øSec. 5226. Limitation on administrative costs. 

øSec. 5227. Audits and reports. 

øSec. 5228. No full faith and credit for grantee obligations. 

øSec. 5229. Recovery of funds. 

øSec. 5230. Definitions. 

øSec. 5231. Authorization of appropriations.¿ 

* * * * * * * 

TITLE V—PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE 

PROGRAMS 

* * * * * * * 


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PART B—PUBLIC CHARTER SCHOOLS 

Subpart 1—øCharter School Programs¿ Charter 

School Program 

øSEC. 5201. PURPOSE. 

øIt is the purpose of this subpart to increase national understanding of the charter schools model by— 

ø(1) providing financial assistance for the planning, program 

design, and initial implementation of charter schools; 

ø(2) evaluating the effects of such schools, including the effects on students, student academic achievement, staff, and 

parents; 

ø(3) expanding the number of high-quality charter schools 

available to students across the Nation; and 

ø(4) encouraging the States to provide support to charter 

schools for facilities financing in an amount more nearly commensurate to the amount the States have typically provided for 

traditional public schools. 

øSEC. 5202. PROGRAM AUTHORIZED. 

ø(a) IN GENERAL.—The Secretary may award grants to State 

educational agencies having applications approved pursuant to section 5203 to enable such agencies to conduct a charter school grant 

program in accordance with this subpart. 

ø(b) SPECIAL RULE.—If a State educational agency elects not to 

participate in the program authorized by this subpart or does not 

have an application approved under section 5203, the Secretary 

may award a grant to an eligible applicant that serves such State 

and has an application approved pursuant to section 5203(c). 

ø(c) PROGRAM PERIODS.— 

ø(1) GRANTS TO STATES.—Grants awarded to State educational agencies under this subpart shall be for a period of not 

more than 3 years. 

ø(2) GRANTS TO ELIGIBLE APPLICANTS.—Grants awarded by 

the Secretary to eligible applicants or subgrants awarded by 

State educational agencies to eligible applicants under this 

subpart shall be for a period of not more than 3 years, of which 

the eligible applicant may use— 

ø(A) not more than 18 months for planning and program 

design; 

ø(B) not more than 2 years for the initial implementation of a charter school; and 

ø(C) not more than 2 years to carry out dissemination 

activities described in section 5204(f)(6)(B). 

ø(d) LIMITATION.—A charter school may not receive— 

ø(1) more than one grant for activities described in subparagraphs (A) and (B) of subsection (c)(2); or 

ø(2) more than one grant for activities under subparagraph 

(C) of subsection (c)(2). 

ø(e) PRIORITY TREATMENT.— 

ø(1) IN GENERAL.—In awarding grants under this subpart for 

fiscal year 2002 or any succeeding fiscal year from any funds 

appropriated under section 5211 (other than funds reserved to 

carry out section 5205(b)), the Secretary shall give priority to 


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States to the extent that the States meet the criteria described 

in paragraph (2) and one or more of the criteria described in 

subparagraph (A), (B), or (C) of paragraph (3). 

ø(2) REVIEW AND EVALUATION PRIORITY CRITERIA.—The criteria referred to in paragraph (1) are that the State provides 

for periodic review and evaluation by the authorized public 

chartering agency of each charter school, at least once every 5 

years unless required more frequently by State law, to determine whether the charter school is meeting the terms of the 

school’s charter, and is meeting or exceeding the student academic achievement requirements and goals for charter schools 

as set forth under State law or the school’s charter. 

ø(3) PRIORITY CRITERIA.—The criteria referred to in paragraph (1) are the following: 

ø(A) The State has demonstrated progress, in increasing 

the number of high-quality charter schools that are held 

accountable in the terms of the schools’ charters for meeting clear and measurable objectives for the educational 

progress of the students attending the schools, in the period prior to the period for which a State educational agency or eligible applicant applies for a grant under this subpart. 

ø(B) The State— 

ø(i) provides for one authorized public chartering 

agency that is not a local educational agency, such as 

a State chartering board, for each individual or entity 

seeking to operate a charter school pursuant to such 

State law; or 

ø(ii) in the case of a State in which local educational 

agencies are the only authorized public chartering 

agencies, allows for an appeals process for the denial 

of an application for a charter school. 

ø(C) The State ensures that each charter school has a 

high degree of autonomy over the charter school’s budgets 

and expenditures. 

ø(f) AMOUNT CRITERIA.—In determining the amount of a grant to 

be awarded under this subpart to a State educational agency, the 

Secretary shall take into consideration the number of charter 

schools that are operating, or are approved to open, in the State. 

øSEC. 5203. APPLICATIONS. 

ø(a) APPLICATIONS FROM STATE AGENCIES.—Each State educational agency desiring a grant from the Secretary under this subpart shall submit to the Secretary an application at such time, in 

such manner, and containing or accompanied by such information 

as the Secretary may require. 

ø(b) CONTENTS OF A STATE EDUCATIONAL AGENCY APPLICATION.— 

Each application submitted pursuant to subsection (a) shall— 

ø(1) describe the objectives of the State educational agency’s 

charter school grant program and a description of how such objectives will be fulfilled, including steps taken by the State 

educational agency to inform teachers, parents, and communities of the State educational agency’s charter school grant 

program; and 

ø(2) describe how the State educational agency— 


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ø(A) will inform each charter school in the State regarding— 

ø(i) Federal funds that the charter school is eligible 

to receive; and 

ø(ii) Federal programs in which the charter school 

may participate; 

ø(B) will ensure that each charter school in the State receives the charter school’s commensurate share of Federal 

education funds that are allocated by formula each year, 

including during the first year of operation of the charter 

school; and 

ø(C) will disseminate best or promising practices of charter schools to each local educational agency in the State; 

and 

ø(3) contain assurances that the State educational agency 

will require each eligible applicant desiring to receive a 

subgrant to submit an application to the State educational 

agency containing— 

ø(A) a description of the educational program to be implemented by the proposed charter school, including— 

ø(i) how the program will enable all students to 

meet challenging State student academic achievement 

standards; 

ø(ii) the grade levels or ages of children to be served; 

and 

ø(iii) the curriculum and instructional practices to 

be used; 

ø(B) a description of how the charter school will be managed; 

ø(C) a description of— 

ø(i) the objectives of the charter school; and 

ø(ii) the methods by which the charter school will 

determine its progress toward achieving those objectives; 

ø(D) a description of the administrative relationship between the charter school and the authorized public chartering agency; 

ø(E) a description of how parents and other members of 

the community will be involved in the planning, program 

design, and implementation of the charter school; 

ø(F) a description of how the authorized public chartering agency will provide for continued operation of the 

school once the Federal grant has expired, if such agency 

determines that the school has met the objectives described in subparagraph (C)(i); 

ø(G) a request and justification for waivers of any Federal statutory or regulatory provisions that the eligible applicant believes are necessary for the successful operation 

of the charter school, and a description of any State or 

local rules, generally applicable to public schools, that will 

be waived for, or otherwise not apply to, the school; 

ø(H) a description of how the subgrant funds or grant 

funds, as appropriate, will be used, including a description 

of how such funds will be used in conjunction with other 

Federal programs administered by the Secretary; 


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ø(I) a description of how students in the community will 

be— 

ø(i) informed about the charter school; and 

ø(ii) given an equal opportunity to attend the charter school; 

ø(J) an assurance that the eligible applicant will annually provide the Secretary and the State educational agency such information as may be required to determine if the 

charter school is making satisfactory progress toward 

achieving the objectives described in subparagraph (C)(i); 

ø(K) an assurance that the eligible applicant will cooperate with the Secretary and the State educational agency in 

evaluating the program assisted under this subpart; 

ø(L) a description of how a charter school that is considered a local educational agency under State law, or a local 

educational agency in which a charter school is located, 

will comply with sections 613(a)(5) and 613(e)(1)(B) of the 

Individuals with Disabilities Education Act; 

ø(M) if the eligible applicant desires to use subgrant 

funds for dissemination activities under section 

5202(c)(2)(C), a description of those activities and how 

those activities will involve charter schools and other public schools, local educational agencies, developers, and potential developers; and 

ø(N) such other information and assurances as the Secretary and the State educational agency may require. 

ø(c) ELIGIBLE APPLICANT APPLICATION.—Each eligible applicant 

desiring a grant pursuant to section 5202(b) shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require. 

ø(d) CONTENTS OF ELIGIBLE APPLICANT APPLICATION.—Each application submitted pursuant to subsection (c) shall contain— 

ø(1) the information and assurances described in subparagraphs (A) through (N) of subsection (b)(3), except that for purposes of this subsection subparagraphs (J), (K), and (N) of such 

subsection shall be applied by striking ‘‘and the State educational agency’’ each place such term appears; 

ø(2) assurances that the State educational agency— 

ø(A) will grant, or will obtain, waivers of State statutory 

or regulatory requirements; and 

ø(B) will assist each subgrantee in the State in receiving 

a waiver under section 5204(e); and 

ø(3) assurances that the eligible applicant has provided its 

authorized public chartering authority timely notice, and a 

copy, of the application, except that the State educational 

agency (or the Secretary, in the case of an application submitted to the Secretary) may waive the requirement of this 

paragraph in the case of an application for a precharter planning grant or subgrant if the authorized public chartering authority to which a charter school proposal will be submitted 

has not been determined at the time the grant or subgrant application is submitted. 


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øSEC. 5204. ADMINISTRATION. 

ø(a) SELECTION CRITERIA FOR STATE EDUCATIONAL AGENCIES.— 

The Secretary shall award grants to State educational agencies 

under this subpart on the basis of the quality of the applications 

submitted under section 5203(b), after taking into consideration 

such factors as— 

ø(1) the contribution that the charter schools grant program 

will make to assisting educationally disadvantaged and other 

students in meeting State academic content standards and 

State student academic achievement standards; 

ø(2) the degree of flexibility afforded by the State educational 

agency to charter schools under the State’s charter schools law; 

ø(3) the ambitiousness of the objectives for the State charter 

school grant program; 

ø(4) the quality of the strategy for assessing achievement of 

those objectives; 

ø(5) the likelihood that the charter school grant program will 

meet those objectives and improve educational results for students; 

ø(6) the number of high-quality charter schools created 

under this subpart in the State; and 

ø(7) in the case of State educational agencies that propose to 

use grant funds to support dissemination activities under subsection (f)(6)(B), the quality of those activities and the likelihood that those activities will improve student academic 

achievement. 

ø(b) SELECTION CRITERIA FOR ELIGIBLE APPLICANTS.—The Secretary shall award grants to eligible applicants under this subpart 

on the basis of the quality of the applications submitted under section 5203(c), after taking into consideration such factors as— 

ø(1) the quality of the proposed curriculum and instructional 

practices; 

ø(2) the degree of flexibility afforded by the State educational 

agency and, if applicable, the local educational agency to the 

charter school; 

ø(3) the extent of community support for the application; 

ø(4) the ambitiousness of the objectives for the charter 

school; 

ø(5) the quality of the strategy for assessing achievement of 

those objectives; 

ø(6) the likelihood that the charter school will meet those objectives and improve educational results for students; and 

ø(7) in the case of an eligible applicant that proposes to use 

grant funds to support dissemination activities under subsection (f)(6)(B), the quality of those activities and the likelihood that those activities will improve student achievement. 

ø(c) PEER REVIEW.—The Secretary, and each State educational 

agency receiving a grant under this subpart, shall use a peer review process to review applications for assistance under this subpart. 

ø(d) DIVERSITY OF PROJECTS.—The Secretary and each State educational agency receiving a grant under this subpart, shall award 

grants and subgrants under this subpart in a manner that, to the 

extent possible, ensures that such grants and subgrants— 


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67 

ø(1) are distributed throughout different areas of the Nation 

and each State, including urban and rural areas; and 

ø(2) will assist charter schools representing a variety of educational approaches, such as approaches designed to reduce 

school size. 

ø(e) WAIVERS.—The Secretary may waive any statutory or regulatory requirement over which the Secretary exercises administrative authority except any such requirement relating to the elements of a charter school described in section 5210(1), if— 

ø(1) the waiver is requested in an approved application 

under this subpart; and 

ø(2) the Secretary determines that granting such a waiver 

will promote the purpose of this subpart. 

ø(f) USE OF FUNDS.— 

ø(1) STATE EDUCATIONAL AGENCIES.—Each State educational 

agency receiving a grant under this subpart shall use such 

grant funds to award subgrants to one or more eligible applicants in the State to enable such applicant to plan and implement a charter school in accordance with this subpart, except 

that the State educational agency may reserve not more than 

10 percent of the grant funds to support dissemination activities described in paragraph (6). 

ø(2) ELIGIBLE APPLICANTS.—Each eligible applicant receiving 

funds from the Secretary or a State educational agency shall 

use such funds to plan and implement a charter school, or to 

disseminate information about the charter school and successful practices in the charter school, in accordance with this subpart. 

ø(3) ALLOWABLE ACTIVITIES.—An eligible applicant receiving 

a grant or subgrant under this subpart may use the grant or 

subgrant funds only for— 

ø(A) post-award planning and design of the educational 

program, which may include— 

ø(i) refinement of the desired educational results 

and of the methods for measuring progress toward 

achieving those results; and 

ø(ii) professional development of teachers and other 

staff who will work in the charter school; and 

ø(B) initial implementation of the charter school, which 

may include— 

ø(i) informing the community about the school; 

ø(ii) acquiring necessary equipment and educational 

materials and supplies; 

ø(iii) acquiring or developing curriculum materials; 

and 

ø(iv) other initial operational costs that cannot be 

met from State or local sources. 

ø(4) ADMINISTRATIVE EXPENSES.— 

ø(A) STATE EDUCATIONAL AGENCY ADMINISTRATIVE EXPENSES.—Each State educational agency receiving a grant 

pursuant to this subpart may reserve not more than 5 percent of such grant funds for administrative expenses associated with the charter school grant program assisted 

under this subpart. 


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ø(B) LOCAL ADMINISTRATIVE EXPENSES.—A local educational agency may not deduct funds for administrative 

fees or expenses from a subgrant awarded to an eligible 

applicant, unless the eligible applicant enters voluntarily 

into a mutually agreed upon arrangement for administrative services with the relevant local educational agency. 

Absent such approval, the local educational agency shall 

distribute all such subgrant funds to the eligible applicant 

without delay. 

ø(5) REVOLVING LOAN FUNDS.—Each State educational agency receiving a grant pursuant to this subpart may reserve not 

more than 10 percent of the grant funds for the establishment 

of a revolving loan fund. Such fund may be used to make loans 

to eligible applicants that have received a subgrant under this 

subpart, under such terms as may be determined by the State 

educational agency, for the initial operation of the charter 

school grant program of the eligible applicant until such time 

as the recipient begins receiving ongoing operational support 

from State or local financing sources. 

ø(6) DISSEMINATION.— 

ø(A) IN GENERAL.—A charter school may apply for funds 

under this subpart, whether or not the charter school has 

applied for or received funds under this subpart for planning, program design, or implementation, to carry out the 

activities described in subparagraph (B) if the charter 

school has been in operation for at least 3 consecutive 

years and has demonstrated overall success, including— 

ø(i) substantial progress in improving student academic achievement; 

ø(ii) high levels of parent satisfaction; and 

ø(iii) the management and leadership necessary to 

overcome initial start-up problems and establish a 

thriving, financially viable charter school. 

ø(B) ACTIVITIES.—A charter school described in subparagraph (A) may use funds reserved under paragraph (1) to 

assist other schools in adapting the charter school’s program (or certain aspects of the charter school’s program), 

or to disseminate information about the charter school, 

through such activities as— 

ø(i) assisting other individuals with the planning 

and start-up of one or more new public schools, including charter schools, that are independent of the assisting charter school and the assisting charter school’s 

developers, and that agree to be held to at least as 

high a level of accountability as the assisting charter 

school; 

ø(ii) developing partnerships with other public 

schools, including charter schools, designed to improve 

student academic achievement in each of the schools 

participating in the partnership; 

ø(iii) developing curriculum materials, assessments, 

and other materials that promote increased student 

achievement and are based on successful practices 

within the assisting charter school; and 


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ø(iv) conducting evaluations and developing materials that document the successful practices of the assisting charter school and that are designed to improve student performance in other schools. 

ø(g) TRIBALLY CONTROLLED SCHOOLS.—Each State that receives 

a grant under this subpart and designates a tribally controlled 

school as a charter school shall not consider payments to a school 

under the Tribally Controlled Schools Act of 1988 (25 U.S.C. 2507) 

in determining— 

ø(1) the eligibility of the school to receive any other Federal, 

State, or local aid; or 

ø(2) the amount of such aid. 

øSEC. 5205. NATIONAL ACTIVITIES. 

ø(a) IN GENERAL.—The Secretary shall reserve for each fiscal 

year the greater of 5 percent or $5,000,000 of the amount appropriated to carry out this subpart, except that in no fiscal year shall 

the total amount so reserved exceed $8,000,000, to carry out the 

following activities: 

ø(1) To provide charter schools, either directly or through 

State educational agencies, with— 

ø(A) information regarding— 

ø(i) Federal funds that charter schools are eligible to 

receive; and 

ø(ii) other Federal programs in which charter 

schools may participate; and 

ø(B) assistance in applying for Federal education funds 

that are allocated by formula, including assistance with filing deadlines and submission of applications. 

ø(2) To provide for other evaluations or studies that include 

the evaluation of the impact of charter schools on student academic achievement, including information regarding— 

ø(A) students attending charter schools reported on the 

basis of race, age, disability, gender, limited English proficiency, and previous enrollment in public school; and 

ø(B) the professional qualifications of teachers within a 

charter school and the turnover of the teaching force. 

ø(3) To provide— 

ø(A) information to applicants for assistance under this 

subpart; 

ø(B) assistance to applicants for assistance under this 

subpart with the preparation of applications under section 

5203; 

ø(C) assistance in the planning and startup of charter 

schools; 

ø(D) training and technical assistance to existing charter 

schools; and 

ø(E) for the dissemination to other public schools of best 

or promising practices in charter schools. 

ø(4) To provide (including through the use of one or more 

contracts that use a competitive bidding process) for the collection of information regarding the financial resources available 

to charter schools, including access to private capital, and to 

widely disseminate to charter schools any such relevant information and model descriptions of successful programs. 


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ø(5) To carry out evaluations of, technical assistance for, and 

information dissemination regarding, the per-pupil facilities 

aid programs. In carrying out the evaluations, the Secretary 

may carry out one or more evaluations of State programs assisted under this subsection, which shall, at a minimum, address— 

ø(A) how, and the extent to which, the programs promote educational equity and excellence; and 

ø(B) the extent to which charter schools supported 

through the programs are— 

ø(i) held accountable to the public; 

ø(ii) effective in improving public education; and 

ø(iii) open and accessible to all students. 

ø(b) PER-PUPIL FACILITIES AID PROGRAMS.— 

ø(1) DEFINITION OF PER-PUPIL FACILITIES AID PROGRAM.—In 

this subsection, the term ‘‘per-pupil facilities aid program’’ 

means a program in which a State makes payments, on a perpupil basis, to charter schools to provide the schools with financing— 

ø(A) that is dedicated solely for funding charter school 

facilities; or 

ø(B) a portion of which is dedicated for funding charter 

school facilities. 

ø(2) GRANTS.— 

ø(A) IN GENERAL.—From the amount made available to 

carry out this subsection under paragraphs (2) and (3)(B) 

of section 5211(b) for any fiscal year, the Secretary shall 

make grants, on a competitive basis, to States to pay for 

the Federal share of the cost of establishing or enhancing, 

and administering per-pupil facilities aid programs. 

ø(B) PERIOD.—The Secretary shall award grants under 

this subsection for periods of not more than 5 years. 

ø(C) FEDERAL SHARE.—The Federal share of the cost described in subparagraph (A) for a per-pupil facilities aid 

program shall be not more than— 

ø(i) 90 percent of the cost, for the first fiscal year for 

which the program receives assistance under this subsection; 

ø(ii) 80 percent in the second such year; 

ø(iii) 60 percent in the third such year; 

ø(iv) 40 percent in the fourth such year; and 

ø(v) 20 percent in the fifth such year. 

ø(3) USE OF FUNDS.— 

ø(A) IN GENERAL.—A State that receives a grant under 

this subsection shall use the funds made available through 

the grant to establish or enhance, and administer, a perpupil facilities aid program for charter schools in the 

State. 

ø(B) EVALUATIONS; TECHNICAL ASSISTANCE; DISSEMINATION.—From the amount made available to a State 

through a grant under this subsection for a fiscal year, the 

State may reserve not more than 5 percent to carry out 

evaluations, to provide technical assistance, and to disseminate information. 


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ø(C) SUPPLEMENT, NOT SUPPLANT.—Funds made available under this subsection shall be used to supplement, 

and not supplant, State and local public funds expended to 

provide per pupil facilities aid programs, operations financing programs, or other programs, for charter schools. 

ø(4) REQUIREMENTS.— ø(A) VOLUNTARY PARTICIPATION.—No State may be required to participate in a program carried out under this 

subsection. 

ø(B) STATE LAW.—To be eligible to receive a grant under 

this subsection, a State shall establish or enhance, and administer, a per-pupil facilities aid program for charter 

schools in the State, that— 

ø(i) is specified in State law; and 

ø(ii) provides annual financing, on a per-pupil basis, 

for charter school facilities. 

ø(5) APPLICATIONS.—To be eligible to receive a grant under 

this subsection, a State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. 

ø(6) PRIORITIES.—In making grants under this subsection, 

the Secretary shall give priority to States that meet the criteria described in paragraph (2), and subparagraphs (A), (B), 

and (C) of paragraph (3), of section 5202(e). 

ø(c) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed to require charter schools to collect any data described 

in subsection (a).¿ 

SEC. 5201. PURPOSE. 

It is the purpose of this subpart to— 

(1) improve the United States education system and education 

opportunities for all Americans by supporting innovation in 

public education in public school settings that prepare students 

to compete and contribute to the global economy; 

(2) provide financial assistance for the planning, program design, and initial implementation of charter schools; 

(3) expand the number of high-quality charter schools available to students across the Nation; 

(4) evaluate the impact of such schools on student achievement, families, and communities, and share best practices between charter schools and other public schools; 

(5) encourage States to provide support to charter schools for 

facilities financing in an amount more nearly commensurate to 

the amount the States have typically provided for traditional 

public schools; 

(6) improve student services to increase opportunities for students with disabilities, limited English proficient students, and 

other traditionally underserved students to attend charter 

schools and meet challenging State academic achievement 

standards; 

(7) support efforts to strengthen the charter school authorizing process to improve performance management, including 

transparency, oversight, monitoring, and evaluation of such 

schools; and 

(8) support quality accountability and transparency in the 

operational performance of all authorized public chartering 


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agencies, which include State educational agencies, local educational agencies, and other authorizing entities. 

SEC. 5202. PROGRAM AUTHORIZED. 

(a) IN GENERAL.—This subpart authorizes the Secretary to carry 

out a charter school program that supports charter schools that 

serve elementary school and secondary school students by— 

(1) supporting the startup of charter schools, and the replication and expansion of high-quality charter schools; 

(2) assisting charter schools in accessing credit to acquire and 

renovate facilities for school use; and 

(3) carrying out national activities to support— 

(A) charter school development; 

(B) the dissemination of best practices of charter schools 

for all schools; 

(C) the evaluation of the impact of the program on 

schools participating in the program; and 

(D) stronger charter school authorizing. 

(b) FUNDING ALLOTMENT.—From the amount made available 

under section 5211 for a fiscal year, the Secretary shall— 

(1) reserve 12.5 percent to support charter school facilities assistance under section 5204; 

(2) reserve not more than 10 percent to carry out national activities under section 5205; and 

(3) use the remaining amount after the Secretary reserves 

funds under paragraphs (1) and (2) to carry out section 5203. 

(c) PRIOR GRANTS AND SUBGRANTS.—The recipient of a grant or 

subgrant under this subpart or subpart 2, as such subpart was in 

effect on the day before the date of enactment of the Success and Opportunity through Quality Charter Schools Act, shall continue to receive funds in accordance with the terms and conditions of such 

grant or subgrant. 

SEC. 5203. GRANTS TO SUPPORT HIGH-QUALITY CHARTER SCHOOLS. 

(a) IN GENERAL.—From the amount reserved under section 

5202(b)(3), the Secretary shall award grants to State entities having 

applications approved pursuant to subsection (f) to enable such entities to— 

(1) award subgrants to eligible applicants for opening and 

preparing to operate— 

(A) new charter schools; 

(B) replicated, high-quality charter school models; or 

(C) expanded, high-quality charter schools; and 

(2) provide technical assistance to eligible applicants and authorized public chartering agencies in carrying out the activities 

described in paragraph (1) and work with authorized public 

chartering agencies in the State to improve authorizing quality. 

(b) STATE USES OF FUNDS.— 

(1) IN GENERAL.—A State entity receiving a grant under this 

section shall— 

(A) use not less than 90 percent of the grant funds to 

award subgrants to eligible applicants, in accordance with 

the quality charter school program described in the State 

entity’s application approved pursuant to subsection (f), for 

the purposes described in subparagraphs (A) through (C) of 

subsection (a)(1); 


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(B) reserve not less than 7 percent of such funds to carry 

out the activities described in subsection (a)(2); and 

(C) reserve not more than 3 percent of such funds for administrative costs which may include technical assistance. 

(2) CONTRACTS AND GRANTS.—A State entity may use a grant 

received under this section to carry out the activities described 

in subparagraphs (A) and (B) of paragraph (1) directly or 

through grants, contracts, or cooperative agreements. 

(3) RULE OF CONSTRUCTION.—Nothing in this Act shall prohibit the Secretary from awarding grants to States that use a 

weighted lottery to give slightly better chances for admission to 

all, or a subset of, educationally disadvantaged students if— 

(A) the use of weighted lotteries in favor of such students 

is not prohibited by State law, and such State law is consistent with laws described in section 5210(1)(G); and 

(B) such weighted lotteries are not used for the purpose 

of creating schools exclusively to serve a particular subset 

of students. 

(c) PROGRAM PERIODS; PEER REVIEW; GRANT NUMBER AND

AMOUNT; DIVERSITY OF PROJECTS; WAIVERS.— (1) PROGRAM PERIODS.— (A) GRANTS.—A grant awarded by the Secretary to a 

State entity under this section shall be for a period of not 

more than 5 years. 

(B) SUBGRANTS.—A subgrant awarded by a State entity 

under this section shall be for a period of not more than 5 

years, of which an eligible applicant may use not more 

than 18 months for planning and program design. 

(2) PEER REVIEW.—The Secretary, and each State entity receiving a grant under this section, shall use a peer review process to review applications for assistance under this section. 

(3) GRANT AWARDS.—The Secretary shall— 

(A) for each fiscal year for which funds are appropriated 

under section 5211— 

(i) award not less than 3 grants under this section; 

(ii) wholly fund each grant awarded under this section, without making continuation awards; and 

(iii) fully obligate the funds appropriated for the purpose of awarding grants under this section in the fiscal 

year for which such grants are awarded; and 

(B) midway through the grant period of each grant 

awarded under this section to a State entity, review the 

grant to determine whether the State entity will meet the 

agreed upon uses of funds in the State entity’s application, 

and if not, reallot the grant funds that will not be used for 

such agreed upon uses of funds to other State entities during the succeeding grant competition under this section. 

(4) DIVERSITY OF PROJECTS.—Each State entity receiving a 

grant under this section shall award subgrants under this section in a manner that, to the extent possible, ensures that such 

subgrants— 

(A) are distributed throughout different areas, including 

urban, suburban, and rural areas; and 

(B) will assist charter schools representing a variety of 

educational approaches. 


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(5) WAIVERS.—The Secretary may waive any statutory or regulatory requirement over which the Secretary exercises administrative authority except any such requirement relating to the 

elements of a charter school described in section 5210(1), if— 

(A) the waiver is requested in an approved application 

under this section; and 

(B) the Secretary determines that granting such a waiver 

will promote the purpose of this subpart. 

(d) LIMITATIONS.— (1) GRANTS.—A State entity may not receive more than 1 

grant under this section for a 5-year period. 

(2) SUBGRANTS.—An eligible applicant may not receive more 

than 1 subgrant under this section per individual charter 

school for a 5-year period, unless the eligible applicant demonstrates to the State entity not less than 3 years of improved 

educational results in the areas described in subparagraphs (A) 

and (D) of section 5210(8) for students enrolled in such charter 

school. 

(e) APPLICATIONS.—A State entity desiring to receive a grant 

under this section shall submit an application to the Secretary at 

such time and in such manner as the Secretary may require. The 

application shall include the following: 

(1) DESCRIPTION OF PROGRAM.—A description of the State entity’s objectives under this section and how the objectives of the 

program will be carried out, including a description— 

(A) of how the State entity— 

(i) will support the opening of new charter schools, 

replicated, high-quality charter school models, or expanded, high-quality charter schools, and a description 

of the proposed number of each type of charter school 

or model, if applicable, to be opened under the State 

entity’s program; 

(ii) will inform eligible charter schools, developers, 

and authorized public chartering agencies of the availability of funds under the program; 

(iii) will work with eligible applicants to ensure that 

the eligible applicants access all Federal funds that 

they are eligible to receive, and help the charter schools 

supported by the applicants and the students attending 

the charter schools— 

(I) participate in the Federal programs in which 

the schools and students are eligible to participate; 

(II) receive the commensurate share of Federal 

funds the schools and students are eligible to receive under such programs; and 

(III) meet the needs of students served under 

such programs, including student with disabilities 

and English learners; 

(iv) will have clear plans and procedures to assist 

students enrolled in a charter school that closes or 

loses its charter to attend other high-quality schools; 

(v) in the case in which the State entity is not a State 

educational agency— 

(I) will work with the State educational agency 

and the charter schools in the State to maximize 


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charter school participation in Federal and State 

programs for charter schools; and 

(II) will work with the State educational agency 

to adequately operate the State entity’s program 

under this section, where applicable; 

(vi) will ensure each eligible applicant that receives 

a subgrant under the State entity’s program to open 

and prepare to operate a new charter school, a replicated, high-quality charter school model, or an expanded, high-quality charter school— 

(I) will ensure such school or model meets the requirements under section 5210(1); and 

(II) is prepared to continue to operate such 

school or model, in a manner consistent with the 

eligible applicant’s application, after the subgrant 

funds have expired; 

(vii) will support charter schools in local educational 

agencies with large numbers of schools identified by 

the State for improvement; 

(viii) will work with charter schools to promote inclusion of all students and support all students once they 

are enrolled to promote retention; 

(ix) will work with charter schools on recruitment 

practices, including efforts to engage groups that may 

otherwise have limited opportunities to participate in 

charter schools, and to ensure such schools do not have 

in effect policies or procedures that may create barriers 

to enrollment of students, including educationally disadvantaged students, and are in compliance with all 

Federal and State laws on enrollment practices; 

(x) will share best and promising practices between 

charter schools and other public schools, including, 

where appropriate, instruction and professional development in core academic subjects, and science, technology, engineering, and math education, including 

computer science; 

(xi) will ensure the charter schools receiving funds 

under the State entity’s program meet the educational 

needs of their students, including students with disabilities and English learners; 

(xii) will support efforts to increase quality initiatives, including meeting the quality authorizing elements described in paragraph (2)(E); 

(xiii) in the case of a State entity not described in 

clause (xiv), will provide oversight of authorizing activity, including how the State will approve, actively monitor, and re-approve or revoke the authority of an authorized public chartering agency based on the performance of the charter schools authorized by such 

agency in the areas of student achievement, student 

safety, financial management, and compliance with all 

applicable statutes and regulations; and 

(xiv) in the case of a State entity defined in subsection (i)(4), will work with the State to provide assistance to and oversight of authorized public chartering 


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agencies for authorizing activity described in clause 

(xiii); 

(B) of the extent to which the State entity— 

(i) is able to meet and carry out the priorities listed 

in subsection (f)(2); and 

(ii) is working to develop or strengthen a cohesive 

statewide system to support the opening of new charter 

schools, replicated, high-quality charter school models, 

or expanded, high-quality charter schools; 

(C) of how the State entity will carry out the subgrant 

competition, including— 

(i) a description of the application each eligible applicant desiring to receive a subgrant will submit, including— 

(I) a description of the roles and responsibilities 

of eligible applicants, partner organizations, and 

management organizations, including the administrative and contractual roles and responsibilities; 

(II) a description of the quality controls agreed 

to between the eligible applicant and the authorized public chartering agency involved, such as a 

contract or performance agreement, how a school’s 

performance in the State’s academic accountability 

system will be a primary factor for renewal or revocation of the school’s charter, and how the State 

entity and the authorized public chartering agency 

involved will reserve the right to revoke or not 

renew a school’s charter based on financial, structural, or operational factors involving the management of the school; 

(III) a description of how the eligible applicant 

will solicit and consider input from parents and 

other members of the community on the implementation and operation of each charter school receiving funds under the State entity’s program; and 

(IV) a description of the planned activities and 

expenditures for the subgrant funds for purposes of 

opening and preparing to operate a new charter 

school, a replicated, high-quality charter school 

model, or an expanded, high-quality charter 

school, and how the school or model will maintain 

financial sustainability after the end of the 

subgrant period; and 

(ii) a description of how the State entity will review 

applications; 

(D) in the case of an entity that partners with an outside 

organization to carry out the State entity’s quality charter 

school program, in whole or in part, of the roles and responsibilities of this partner; 

(E) of how the State entity will help the charter schools 

receiving funds under the State entity’s program consider 

the transportation needs of the schools’ students; and 

(F) of how the State entity will support diverse charter 

school models, including models that serve rural communities. 


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(2) ASSURANCES.—Assurances, including a description of how 

the assurances will be met, that— 

(A) each charter school receiving funds under the State 

entity’s program will have a high degree of autonomy over 

budget and operations; 

(B) the State entity will support charter schools in meeting the educational needs of their students as described in 

paragraph (1)(A)(x); 

(C) the State entity will ensure that the authorized public 

chartering agency of any charter school that receives funds 

under the State entity’s program— 

(i) adequately monitors each charter school in recruiting, enrolling, and meeting the needs of all students, including students with disabilities and English 

learners; and 

(ii) ensures that each charter school solicits and considers input from parents and other members of the 

community on the implementation and operation of the 

school; 

(D) the State entity will provide adequate technical assistance to eligible applicants to— 

(i) meet the objectives described in clauses (vii) and 

(viii) of paragraph (1)(A) and paragraph (2)(B); and 

(ii) recruit, enroll, and retain traditionally underserved students, including students with disabilities 

and English learners, at rates similar to traditional 

public schools; 

(E) the State entity will promote quality authorizing, 

such as through providing technical assistance and supporting all authorized public chartering agencies in the 

State to improve the oversight of their charter schools, including by— 

(i) assessing annual performance data of the schools, 

including, as appropriate, graduation rates and student academic growth; 

(ii) reviewing the schools’ independent, annual audits of financial statements conducted in accordance 

with generally accepted accounting principles, and ensuring any such audits are publically reported; and 

(iii) holding charter schools accountable to the academic, financial, and operational quality controls 

agreed to between the charter school and the authorized public chartering agency involved, such as 

through renewal, non-renewal, or revocation of the 

school’s charter; 

(F) the State entity will work to ensure that charter 

schools are included with the traditional public schools in 

decision-making about the public school system in the 

State; and 

(G) the State entity will ensure that each charter school 

in the State make publicly available, consistent with the 

dissemination requirements of the annual State report 

card, information to help parents make informed decisions 

about the education options available to their children, including information on the educational program, student 


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support services, and annual performance and enrollment 

data for the groups of students described in section 

1111(b)(2)(C)(v)(II). 

(3) REQUESTS FOR WAIVERS.—A request and justification for 

waivers of any Federal statutory or regulatory provisions that 

the State entity believes are necessary for the successful operation of the charter schools that will receive funds under the 

State entity’s program under this section, and a description of 

any State or local rules, generally applicable to public schools, 

that will be waived, or otherwise not apply to such schools or, 

in the case of a State entity defined in subsection (i)(4), a description of how the State entity will work with the State to request necessary waivers where applicable. 

(f) SELECTION CRITERIA; PRIORITY.— 

(1) SELECTION CRITERIA.—The Secretary shall award grants 

to State entities under this section on the basis of the quality 

of the applications submitted under subsection (e), after taking 

into consideration— 

(A) the degree of flexibility afforded by the State’s public 

charter school law and how the State entity will work to 

maximize the flexibility provided to charter schools under 

the law; 

(B) the ambitiousness of the State entity’s objectives for 

the quality charter school program carried out under this 

section; 

(C) the quality of the strategy for assessing achievement 

of those objectives; 

(D) the likelihood that the eligible applicants receiving 

subgrants under the program will meet those objectives and 

improve educational results for students; 

(E) the State entity’s plan to— 

(i) adequately monitor the eligible applicants receiving subgrants under the State entity’s program; 

(ii) work with the authorized public chartering agencies involved to avoid duplication of work for the charter schools and authorized public chartering agencies; 

and 

(iii) provide adequate technical assistance and support for— 

(I) the charter schools receiving funds under the 

State entity’s program; and 

(II) quality authorizing efforts in the State; and 

(F) the State entity’s plan to solicit and consider input 

from parents and other members of the community on the 

implementation and operation of the charter schools in the 

State. 

(2) PRIORITY.—In awarding grants under this section, the 

Secretary shall give priority to State entities to the extent that 

they meet the following criteria: 

(A) In the case of a State entity located in a State that 

allows an entity other than a local educational agency to be 

an authorized public chartering agency, the State has a 

quality authorized public chartering agency that is an entity other than a local educational agency. 


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(B) The State entity is located in a State that does not 

impose any limitation on the number or percentage of charter schools that may exist or the number or percentage of 

students that may attend charter schools in the State. 

(C) The State entity is located in a State that ensures equitable financing, as compared to traditional public 

schools, for charter schools and students in a prompt manner. 

(D) The State entity is located in a State that uses charter schools and best practices from charter schools to help 

improve struggling schools and local educational agencies. 

(E) The State entity partners with an organization that 

has a demonstrated record of success in developing management organizations to support the development of charter schools in the State. 

(F) The State entity supports charter schools that support 

at-risk students through activities such as dropout prevention or dropout recovery. 

(G) The State entity authorizes all charter schools in the 

State to serve as school food authorities. 

(H) The State entity has taken steps to ensure that all authorizing public chartering agencies implement best practices for charter school authorizing. 

(g) LOCAL USES OF FUNDS.—An eligible applicant receiving a 

subgrant under this section shall use such funds to carry out activities related to opening and preparing to operate a new charter 

school, a replicated, high-quality charter school model, or an expanded, high-quality charter school, such as— 

(1) preparing teachers and school leaders, including through 

professional development; 

(2) acquiring equipment, educational materials, and supplies; 

and 

(3) necessary renovations and minor facilities repairs (excluding construction). 

(h) REPORTING REQUIREMENTS.—Each State entity receiving a 

grant under this section shall submit to the Secretary, at the end 

of the third year of the 5-year grant period and at the end of such 

grant period, a report on— 

(1) the number of students served by each subgrant awarded 

under this section and, if applicable, how many new students 

were served during each year of the subgrant period; 

(2) the progress the State entity made toward meeting the priorities described in subsection (f)(2), as applicable; 

(3) how the State entity met the objectives of the quality charter school program described in the State entity’s application 

under subsection (e); 

(4) how the State entity complied with, and ensured that eligible applicants complied with, the assurances described in the 

State entity’s application; 

(5) how the State entity worked with authorized public chartering agencies, including how the agencies worked with the 

management company or leadership of the schools that received 

subgrants under this section; and 

(6) the number of subgrants awarded under this section to 

carry out each of the following: 


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(A) The opening of new charter schools. 

(B) The opening of replicated, high-quality charter school 

models. 

(C) The opening of expanded, high-quality charter 

schools. 

(i) STATE ENTITY DEFINED.—For purposes of this section, the term 

‘‘State entity’’ means— 

(1) a State educational agency; 

(2) a State charter school board; 

(3) a Governor of a State; or 

(4) a charter school support organization. 

SEC. 5204. FACILITIES FINANCING ASSISTANCE. 

(a) GRANTS TO ELIGIBLE ENTITIES.— (1) IN GENERAL.—From the amount reserved under section 

5202(b)(1), the Secretary shall not use less than 50 percent to 

award grants to eligible entities that have the highest-quality 

applications approved under subsection (d), after considering 

the diversity of such applications, to demonstrate innovative 

methods of assisting charter schools to address the cost of acquiring, constructing, and renovating facilities by enhancing 

the availability of loans or bond financing. 

(2) ELIGIBLE ENTITY DEFINED.—For purposes of this section, 

the term ‘‘eligible entity’’ means— 

(A) a public entity, such as a State or local governmental 

entity; 

(B) a private nonprofit entity; or 

(C) a consortium of entities described in subparagraphs 

(A) and (B). 

(b) GRANTEE SELECTION.—The Secretary shall evaluate each application submitted under subsection (d), and shall determine 

whether the application is sufficient to merit approval. 

(c) GRANT CHARACTERISTICS.—Grants under subsection (a) shall 

be of a sufficient size, scope, and quality so as to ensure an effective 

demonstration of an innovative means of enhancing credit for the 

financing of charter school acquisition, construction, or renovation. 

(d) APPLICATIONS.— (1) IN GENERAL.—To receive a grant under subsection (a), an 

eligible entity shall submit to the Secretary an application in 

such form as the Secretary may reasonably require. 

(2) CONTENTS.—An application submitted under paragraph 

(1) shall contain— 

(A) a statement identifying the activities proposed to be 

undertaken with funds received under subsection (a), including how the eligible entity will determine which charter 

schools will receive assistance, and how much and what 

types of assistance charter schools will receive; 

(B) a description of the involvement of charter schools in 

the application’s development and the design of the proposed activities; 

(C) a description of the eligible entity’s expertise in capital market financing; 

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ing how the eligible entity will offer a combination of rates 

and terms more favorable than the rates and terms that a 

charter school could receive without assistance from the eligible entity under this section; 

(E) a description of how the eligible entity possesses sufficient expertise in education to evaluate the likelihood of 

success of a charter school program for which facilities financing is sought; and 

(F) in the case of an application submitted by a State 

governmental entity, a description of the actions that the 

entity has taken, or will take, to ensure that charter schools 

within the State receive the funding the charter schools 

need to have adequate facilities. 

(e) CHARTER SCHOOL OBJECTIVES.—An eligible entity receiving a 

grant under this section shall use the funds deposited in the reserve 

account established under subsection (f) to assist one or more charter schools to access private sector capital to accomplish one or more 

of the following objectives: 

(1) The acquisition (by purchase, lease, donation, or otherwise) of an interest (including an interest held by a third party 

for the benefit of a charter school) in improved or unimproved 

real property that is necessary to commence or continue the operation of a charter school. 

(2) The construction of new facilities, or the renovation, repair, or alteration of existing facilities, necessary to commence 

or continue the operation of a charter school. 

(3) The predevelopment costs required to assess sites for purposes of paragraph (1) or (2) and which are necessary to commence or continue the operation of a charter school. 

(f) RESERVE ACCOUNT.— (1) USE OF FUNDS.—To assist charter schools to accomplish 

the objectives described in subsection (e), an eligible entity receiving a grant under subsection (a) shall, in accordance with 

State and local law, directly or indirectly, alone or in collaboration with others, deposit the funds received under subsection (a) 

(other than funds used for administrative costs in accordance 

with subsection (g)) in a reserve account established and maintained by the eligible entity for this purpose. Amounts deposited 

in such account shall be used by the eligible entity for one or 

more of the following purposes: 

(A) Guaranteeing, insuring, and reinsuring bonds, notes, 

evidences of debt, loans, and interests therein, the proceeds 

of which are used for an objective described in subsection 

(e). 

(B) Guaranteeing and insuring leases of personal and 

real property for an objective described in subsection (e). 

(C) Facilitating financing by identifying potential lending sources, encouraging private lending, and other similar 

activities that directly promote lending to, or for the benefit 

of, charter schools. 

(D) Facilitating the issuance of bonds by charter schools, 

or by other public entities for the benefit of charter schools, 

by providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consoliVerDate Mar 15 2010 04:14 Apr 30, 2014 Jkt 039006 PO 00000 Frm 00081 Fmt 6659 Sfmt 6603 E:\HR\OC\HR423.XXX HR423

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dation of multiple charter school projects within a single 

bond issue). 

(2) INVESTMENT.—Funds received under this section and deposited in the reserve account established under paragraph (1) 

shall be invested in obligations issued or guaranteed by the 

United States or a State, or in other similarly low-risk securities. 

(3) REINVESTMENT OF EARNINGS.—Any earnings on funds received under subsection (a) shall be deposited in the reserve account established under paragraph (1) and used in accordance 

with such paragraph. 

(g) LIMITATION ON ADMINISTRATIVE COSTS.—An eligible entity 

may use not more than 2.5 percent of the funds received under subsection (a) for the administrative costs of carrying out its responsibilities under this section (excluding subsection (k)). 

(h) AUDITS AND REPORTS.— 

(1) FINANCIAL RECORD MAINTENANCE AND AUDIT.—The financial records of each eligible entity receiving a grant under subsection (a) shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual 

audit by an independent public accountant. 

(2) REPORTS.— 

(A) GRANTEE ANNUAL REPORTS.—Each eligible entity receiving a grant under subsection (a) annually shall submit 

to the Secretary a report of its operations and activities 

under this section. 

(B) CONTENTS.—Each annual report submitted under 

subparagraph (A) shall include— 

(i) a copy of the most recent financial statements, 

and any accompanying opinion on such statements, 

prepared by the independent public accountant reviewing the financial records of the eligible entity; 

(ii) a copy of any report made on an audit of the financial records of the eligible entity that was conducted under paragraph (1) during the reporting period; 

(iii) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under 

subsection (a) in leveraging private funds; 

(iv) a listing and description of the charter schools 

served during the reporting period, including the 

amount of funds used by each school, the type of 

project facilitated by the grant, and the type of assistance provided to the charter schools; 

(v) a description of the activities carried out by the 

eligible entity to assist charter schools in meeting the 

objectives set forth in subsection (e); and 

(vi) a description of the characteristics of lenders and 

other financial institutions participating in the activities undertaken by the eligible entity under this section 

(excluding subsection (k)) during the reporting period. 

(C) SECRETARIAL REPORT.—The Secretary shall review 

the reports submitted under subparagraph (A) and shall 

provide a comprehensive annual report to Congress on the 


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activities conducted under this section (excluding subsection (k)). 

(i) NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATION.—No 

financial obligation of an eligible entity entered into pursuant to 

this section (such as an obligation under a guarantee, bond, note, 

evidence of debt, or loan) shall be an obligation of, or guaranteed 

in any respect by, the United States. The full faith and credit of the 

United States is not pledged to the payment of funds which may be 

required to be paid under any obligation made by an eligible entity 

pursuant to any provision of this section. 

(j) RECOVERY OF FUNDS.— (1) IN GENERAL.—The Secretary, in accordance with chapter 

37 of title 31, United States Code, shall collect— 

(A) all of the funds in a reserve account established by 

an eligible entity under subsection (f)(1) if the Secretary determines, not earlier than 2 years after the date on which 

the eligible entity first received funds under this section (excluding subsection (k)), that the eligible entity has failed to 

make substantial progress in carrying out the purposes described in subsection (f)(1); or 

(B) all or a portion of the funds in a reserve account established by an eligible entity under subsection (f)(1) if the 

Secretary determines that the eligible entity has permanently ceased to use all or a portion of the funds in such 

account to accomplish any purpose described in subsection 

(f)(1). 

(2) EXERCISE OF AUTHORITY.—The Secretary shall not exercise the authority provided in paragraph (1) to collect from any 

eligible entity any funds that are being properly used to achieve 

one or more of the purposes described in subsection (f)(1). 

(3) PROCEDURES.—The provisions of sections 451, 452, and 

458 of the General Education Provisions Act 20 U.S.C. 124, 

1234a, 1234g shall apply to the recovery of funds under paragraph (1). 

(4) CONSTRUCTION.—This subsection shall not be construed to 

impair or affect the authority of the Secretary to recover funds 

under part D of the General Education Provisions Act (20 

U.S.C. 1234 et seq.). 

(k) PER-PUPIL FACILITIES AID PROGRAM.— (1) DEFINITION OF PER-PUPIL FACILITIES AID PROGRAM.—In 

this subsection, the term ‘‘per-pupil facilities aid program’’ 

means a program in which a State makes payments, on a perpupil basis, to charter schools to provide the schools with financing— 

(A) that is dedicated solely for funding charter school facilities; or 

(B) a portion of which is dedicated for funding charter 

school facilities. 

(2) GRANTS.— (A) IN GENERAL.—From the amount under section 

5202(b)(1) remaining after the Secretary makes grants 

under subsection (a), the Secretary shall make grants, on a 

competitive basis, to States to pay for the Federal share of 

the cost of establishing or enhancing, and administering 

per-pupil facilities aid programs. 


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(B) PERIOD.—The Secretary shall award grants under 

this subsection for periods of not more than 5 years. 

(C) FEDERAL SHARE.—The Federal share of the cost described in subparagraph (A) for a per-pupil facilities aid 

program shall be not more than— 

(i) 90 percent of the cost, for the first fiscal year for 

which the program receives assistance under this subsection; 

(ii) 80 percent in the second such year; 

(iii) 60 percent in the third such year; 

(iv) 40 percent in the fourth such year; and 

(v) 20 percent in the fifth such year. 

(D) STATE SHARE.—A State receiving a grant under this 

subsection may partner with 1 or more organizations to 

provide up to 50 percent of the State share of the cost of establishing or enhancing, and administering the per-pupil 

facilities aid program. 

(E) MULTIPLE GRANTS.—A State may receive more than 

1 grant under this subsection, so long as the amount of 

such funds provided to charter schools increases with each 

successive grant. 

(3) USE OF FUNDS.— (A) IN GENERAL.—A State that receives a grant under 

this subsection shall use the funds made available through 

the grant to establish or enhance, and administer, a perpupil facilities aid program for charter schools in the State 

of the applicant. 

(B) EVALUATIONS; TECHNICAL ASSISTANCE; DISSEMINA- TION.—From the amount made available to a State through 

a grant under this subsection for a fiscal year, the State 

may reserve not more than 5 percent to carry out evaluations, to provide technical assistance, and to disseminate 

information. 

(C) SUPPLEMENT, NOT SUPPLANT.—Funds made available 

under this subsection shall be used to supplement, and not 

supplant, State and local public funds expended to provide 

per pupil facilities aid programs, operations financing programs, or other programs, for charter schools. 

(4) REQUIREMENTS.— (A) VOLUNTARY PARTICIPATION.—No State may be required to participate in a program carried out under this 

subsection. 

(B) STATE LAW.— 

(i) IN GENERAL.—Except as provided in clause (ii), to 

be eligible to receive a grant under this subsection, a 

State shall establish or enhance, and administer, a 

per-pupil facilities aid program for charter schools in 

the State, that— 

(I) is specified in State law; and 

(II) provides annual financing, on a per-pupil 

basis, for charter school facilities. 

(ii) SPECIAL RULE.—Notwithstanding clause (i), a 

State that is required under State law to provide its 

charter schools with access to adequate facility space, 

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gram for charter schools specified in State law, may be 

eligible to receive a grant under this subsection if the 

State agrees to use the funds to develop a per-pupil facilities aid program consistent with the requirements of 

this subsection. 

(5) APPLICATIONS.—To be eligible to receive a grant under 

this subsection, a State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. 

SEC. 5205. NATIONAL ACTIVITIES. 

(a) IN GENERAL.—From the amount reserved under section 

5202(b)(2), the Secretary shall— 

(1) use not less than 75 percent of such funds to award grants 

in accordance with subsection (b); and 

(2) use not more than 25 percent of such funds to— 

(A) provide technical assistance to State entities in 

awarding subgrants under section 5203, and eligible entities and States receiving grants under section 5204; 

(B) disseminate best practices; and 

(C) evaluate the impact of the charter school program, including the impact on student achievement, carried out 

under this subpart. 

(b) GRANTS.— (1) IN GENERAL.—The Secretary shall make grants, on a competitive basis, to eligible applicants for the purpose of carrying 

out the activities described in section 5202(a)(1), subparagraphs 

(A) through (C) of section 5203(a)(1), and section 5203(g). 

(2) TERMS AND CONDITIONS.—Except as otherwise provided in 

this subsection, grants awarded under this subsection shall 

have the same terms and conditions as grants awarded to State 

entities under section 5203. 

(3) CHARTER MANAGEMENT ORGANIZATIONS.—The Secretary 

shall— 

(A) use not less than 75 percent of the funds described in 

subsection (a)(1) to make grants, on a competitive basis, to 

eligible applicants described in paragraph (4)(C); and 

(B) notwithstanding paragraphs (1)(A) and (2) of section 

5203(f)— 

(i) award grants to eligible applicants on the basis of 

the quality of the applications submitted under this 

subsection; and 

(ii) in awarding grants to eligible applicants described in paragraph (4)(C), give priority to each such 

eligible applicant that— 

(I) demonstrates a high proportion of high-quality charter schools within the network of the eligible applicant; 

(II) demonstrates success in serving students 

who are educationally disadvantaged; 

(III) does not have a significant proportion of 

charter schools that have been closed, had their 

charter revoked for compliance issues, or had their 

affiliation with such eligible applicant revoked; 

(IV) has sufficient procedures in effect to ensure 

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mismanaged charter schools and clear plans and 

procedures in effect for the students in such schools 

to attend other high-quality schools; and 

(V) demonstrates success in working with schools 

identified for improvement by the State. 

(4) ELIGIBLE APPLICANT DEFINED.—For purposes of this subsection, the term ‘‘eligible applicant’’ means an eligible applicant (as defined in section 5210) that— 

(A) desires to open a charter school in— 

(i) a State that did not apply for a grant under section 5203; or 

(ii) a State that did not receive a grant under section 

5203; or 

(B) is a charter management organization. 

(c) CONTRACTS AND GRANTS.—The Secretary may carry out any of 

the activities described in this section directly or through grants, 

contracts, or cooperative agreements. 

* * * * * * * 

SEC. 5208. RECORDS TRANSFER. 

State educational agencies and local educational agencies, as 

quickly as possible and to the extent practicable, shall ensure that 

a student’s records and, if applicable, a student’s individualized 

education program as defined in øsection 602¿ section 602(14) of 

the Individuals with Disabilities Education Act, are transferred to 

a charter school upon the transfer of the student to the charter 

school, and to another public school upon the transfer of the student from a charter school to another public school, in accordance 

with applicable State law. 

* * * * * * * 

SEC. 5210. DEFINITIONS. 

In this subpart: 

ø(1) CHARTER SCHOOL.—The term ‘‘charter school’’ means a 

public school that— 

ø(A) in accordance with a specific State statute authorizing the granting of charters to schools, is exempt from 

significant State or local rules that inhibit the flexible operation and management of public schools, but not from 

any rules relating to the other requirements of this paragraph; 

ø(B) is created by a developer as a public school, or is 

adapted by a developer from an existing public school, and 

is operated under public supervision and direction; 

ø(C) operates in pursuit of a specific set of educational 

objectives determined by the school’s developer and agreed 

to by the authorized public chartering agency; 

ø(D) provides a program of elementary or secondary education, or both; 

ø(E) is nonsectarian in its programs, admissions policies, 

employment practices, and all other operations, and is not 

affiliated with a sectarian school or religious institution; 

ø(F) does not charge tuition; 

ø(G) complies with the Age Discrimination Act of 1975, 

title VI of the Civil Rights Act of 1964, title IX of the EduVerDate Mar 15 2010 04:14 Apr 30, 2014 Jkt 039006 PO 00000 Frm 00086 Fmt 6659 Sfmt 6601 E:\HR\OC\HR423.XXX HR423

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cation Amendments of 1972, section 504 of the Rehabilitation Act of 1973, and part B of the Individuals with Disabilities Education Act; 

ø(H) is a school to which parents choose to send their 

children, and that admits students on the basis of a lottery, if more students apply for admission than can be accommodated; 

ø(I) agrees to comply with the same Federal and State 

audit requirements as do other elementary schools and 

secondary schools in the State, unless such requirements 

are specifically waived for the purpose of this program; 

ø(J) meets all applicable Federal, State, and local health 

and safety requirements; 

ø(K) operates in accordance with State law; and 

ø(L) has a written performance contract with the authorized public chartering agency in the State that includes a 

description of how student performance will be measured 

in charter schools pursuant to State assessments that are 

required of other schools and pursuant to any other assessments mutually agreeable to the authorized public chartering agency and the charter school.¿ 

(1) CHARTER SCHOOL.—The term ‘‘charter school’’ means a 

public school that— 

(A) in accordance with a specific State statute authorizing the granting of charters to schools, is exempt from significant State or local rules that inhibit the flexible operation and management of public schools, but not from any 

rules relating to the other requirements of this paragraph; 

(B) is created by a developer as a public school, or is 

adapted by a developer from an existing public school, and 

is operated under public supervision and direction; 

(C) operates in pursuit of a specific set of educational objectives determined by the school’s developer and agreed to 

by the authorized public chartering agency; 

(D) provides a program of elementary or secondary education, or both; 

(E) is nonsectarian in its programs, admissions policies, 

employment practices, and all other operations, and is not 

affiliated with a sectarian school or religious institution; 

(F) does not charge tuition; 

(G) complies with the Age Discrimination Act of 1975, 

title VI of the Civil Rights Act of 1964, title IX of the Education Amendments of 1972, section 504 of the Rehabilitation Act of 1973, part B of the Individuals with Disabilities 

Education Act, the Americans with Disabilities Act of 1990 

(42 U.S.C. 12101 et seq.), and section 444 of the General 

Education Provisions Act (20 U.S.C. 1232(g)) (commonly 

known as the ‘‘Family Education Rights and Privacy Act of 

1974’’); 

(H) is a school to which parents choose to send their children, and admits students on the basis of a lottery if more 

students apply for admission than can be accommodated, 

except that in cases in which students who are enrolled in 

a charter school affiliated (such as by sharing a network) 

with another charter school, those students may be autoVerDate Mar 15 2010 04:14 Apr 30, 2014 Jkt 039006 PO 00000 Frm 00087 Fmt 6659 Sfmt 6603 E:\HR\OC\HR423.XXX HR423

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matically enrolled in the next grade level at such other 

charter school, so long as a lottery is used to fill seats created through regular attrition in student enrollment; 

(I) agrees to comply with the same Federal and State 

audit requirements as do other elementary schools and secondary schools in the State, unless such State audit requirements are waived by the State; 

(J) meets all applicable Federal, State, and local health 

and safety requirements; 

(K) operates in accordance with State law; 

(L) has a written performance contract with the authorized public chartering agency in the State that includes a 

description of how student performance will be measured in 

charter schools pursuant to State assessments that are required of other schools and pursuant to any other assessments mutually agreeable to the authorized public chartering agency and the charter school; and 

(M) may serve prekindergarten or postsecondary students. 

(2) CHARTER MANAGEMENT ORGANIZATION.—The term ‘‘charter management organization’’ means a not-for-profit organization that manages a network of charter schools linked by centralized support, operations, and oversight. 

(3) CHARTER SCHOOL SUPPORT ORGANIZATION.—The term 

‘‘charter school support organization’’ means a nonprofit, nongovernmental entity that is not an authorized public chartering 

agency, which provides on a statewide basis— 

(A) assistance to developers during the planning, program design, and initial implementation of a charter 

school; and 

(B) technical assistance to charter schools to operate such 

schools. 

ø(2)¿ (4) DEVELOPER.—The term ‘‘developer’’ means an individual or group of individuals (including a public or private 

nonprofit organization), which may include teachers, administrators and other school staff, parents, or other members of the 

local community in which a charter school project will be carried out. 

ø(3)¿ (5) ELIGIBLE APPLICANT.—The term ‘‘eligible applicant’’ 

means a developer that has— 

(A) applied to an authorized public chartering authority 

to operate a charter school; and 

(B) provided adequate and timely notice to that 

authorityø under section 5203(d)(3)¿. 

ø(4)¿ (6) AUTHORIZED PUBLIC CHARTERING AGENCY.—The 

term ‘‘authorized public chartering agency’’ means a State educational agency, local educational agency, or other public entity 

that has the authority pursuant to State law and approved by 

the Secretary to authorize or approve a charter school. 

(7) EXPANDED, HIGH-QUALITY CHARTER SCHOOL.—The term 

‘‘expanded, high-quality charter school’’ means a high-quality 

charter school that has either significantly increased its enrollment or added one or more grades to its school. 

(8) HIGH-QUALITY CHARTER SCHOOL.—The term ‘‘high-quality 

charter school’’ means a charter school that— 


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(A) shows evidence of strong academic results, which may 

include strong academic growth as determined by a State; 

(B) has no significant issues in the areas of student safety, operational and financial management, or statutory or 

regulatory compliance; 

(C) has demonstrated success in significantly increasing 

student academic achievement, including graduation rates 

where applicable, consistent with the requirements under 

title I, for all students served by the charter school; and 

(D) has demonstrated success in increasing student academic achievement, including graduation rates where applicable, for the groups of students described in section 

1111(b)(2)(C)(v)(II), except that such demonstration is not 

required in a case in which the number of students in a 

group is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student. 

(9) REPLICATED, HIGH-QUALITY CHARTER SCHOOL MODEL.— 

The term ‘‘replicated, high-quality charter school model’’ means 

a high-quality charter school that has opened a new campus 

under an existing charter or an additional charter if required 

by State law. 

øSEC. 5211. AUTHORIZATION OF APPROPRIATIONS. 

ø(a) IN GENERAL.—There are authorized to be appropriated to 

carry out this subpart $300,000,000 for fiscal year 2002 and such 

sums as may be necessary for each of the 5 succeeding fiscal years. 

ø(b) RESERVATION.—From the amount appropriated under subsection (a) for each fiscal year, the Secretary shall reserve— 

ø(1) $200,000,000 to carry out this subpart, other than section 5205(b); and 

ø(2) any funds in excess of $200,000,000, that do not exceed 

$300,000,000, to carry out section 5205(b); and 

ø(3)(A) 50 percent of any funds in excess of $300,000,000 to 

carry out this subpart, other than section 5205(b); and 

ø(B) 50 percent of any funds in excess of $300,000,000 to 

carry out section 5205(b).¿ 

SEC. 5211. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to carry out this subpart 

$300,000,000 for fiscal year 2015 and each of the 5 succeeding fiscal 

years. 

øSubpart 2—Credit Enhancement Initiatives To 

Assist Charter School Facility Acquisition, Construction, and Renovation 

øSEC. 5221. PURPOSE. 

øThe purpose of this subpart is to provide grants to eligible entities to permit the eligible entities to demonstrate innovative credit 

enhancement initiatives that assist charter schools to address the 

cost of acquiring, constructing, and renovating facilities. 

øSEC. 5222. GRANTS TO ELIGIBLE ENTITIES. 

ø(a) GRANTS.—The Secretary shall use 100 percent of the amount 

available to carry out this subpart to award not less than three 


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grants to eligible entities that have applications approved under 

this subpart to demonstrate innovative methods of assisting charter schools to address the cost of acquiring, constructing, and renovating facilities by enhancing the availability of loans or bond financing. 

ø(b) GRANTEE SELECTION.— ø(1) EVALUATION OF APPLICATION.—The Secretary shall 

evaluate each application submitted under section 5223, and 

shall determine whether the application is sufficient to merit 

approval. 

ø(2) DISTRIBUTION OF GRANTS.—The Secretary shall award at 

least one grant to an eligible entity described in section 

5230(2)(A), at least one grant to an eligible entity described in 

section 5230(2)(B), and at least one grant to an eligible entity 

described in section 5230(2)(C), if applications are submitted 

that permit the Secretary to do so without approving an application that is not of sufficient quality to merit approval. 

ø(c) GRANT CHARACTERISTICS.—Grants under this subpart shall 

be of a sufficient size, scope, and quality so as to ensure an effective demonstration of an innovative means of enhancing credit for 

the financing of charter school acquisition, construction, or renovation. 

ø(d) SPECIAL RULE.—In the event the Secretary determines that 

the funds made available under this subpart are insufficient to permit the Secretary to award not less than three grants in accordance with subsections (a) through (c), such three-grant minimum 

and subsection (b)(2) shall not apply, and the Secretary may determine the appropriate number of grants to be awarded in accordance with subsection (c). 

øSEC. 5223. APPLICATIONS. 

ø(a) IN GENERAL.—To receive a grant under this subpart, an eligible entity shall submit to the Secretary an application in such 

form as the Secretary may reasonably require. 

ø(b) CONTENTS.—An application submitted under subsection (a) 

shall contain— 

ø(1) a statement identifying the activities proposed to be undertaken with funds received under this subpart, including 

how the eligible entity will determine which charter schools 

will receive assistance, and how much and what types of assistance charter schools will receive; 

ø(2) a description of the involvement of charter schools in the 

application’s development and the design of the proposed activities; 

ø(3) a description of the eligible entity’s expertise in capital 

market financing; 

ø(4) a description of how the proposed activities will leverage 

the maximum amount of private-sector financing capital relative to the amount of government funding used and otherwise 

enhance credit available to charter schools; 

ø(5) a description of how the eligible entity possesses sufficient expertise in education to evaluate the likelihood of success of a charter school program for which facilities financing 

is sought; 

ø(6) in the case of an application submitted by a State governmental entity, a description of the actions that the entity 


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has taken, or will take, to ensure that charter schools within 

the State receive the funding the charter schools need to have 

adequate facilities; and 

ø(7) such other information as the Secretary may reasonably 

require. 

øSEC. 5224. CHARTER SCHOOL OBJECTIVES. 

øAn eligible entity receiving a grant under this subpart shall use 

the funds deposited in the reserve account established under section 5225(a) to assist one or more charter schools to access private 

sector capital to accomplish one or both of the following objectives: 

ø(1) The acquisition (by purchase, lease, donation, or otherwise) of an interest (including an interest held by a third party 

for the benefit of a charter school) in improved or unimproved 

real property that is necessary to commence or continue the 

operation of a charter school. 

ø(2) The construction of new facilities, or the renovation, repair, or alteration of existing facilities, necessary to commence 

or continue the operation of a charter school. 

øSEC. 5225. RESERVE ACCOUNT. 

ø(a) USE OF FUNDS.—To assist charter schools to accomplish the 

objectives described in section 5224, an eligible entity receiving a 

grant under this subpart shall, in accordance with State and local 

law, directly or indirectly, alone or in collaboration with others, deposit the funds received under this subpart (other than funds used 

for administrative costs in accordance with section 5226) in a reserve account established and maintained by the eligible entity for 

this purpose. Amounts deposited in such account shall be used by 

the eligible entity for one or more of the following purposes: 

ø(1) Guaranteeing, insuring, and reinsuring bonds, notes, 

evidences of debt, loans, and interests therein, the proceeds of 

which are used for an objective described in section 5224. 

ø(2) Guaranteeing and insuring leases of personal and real 

property for an objective described in section 5224. 

ø(3) Facilitating financing by identifying potential lending 

sources, encouraging private lending, and other similar activities that directly promote lending to, or for the benefit of, charter schools. 

ø(4) Facilitating the issuance of bonds by charter schools, or 

by other public entities for the benefit of charter schools, by 

providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue). 

ø(b) INVESTMENT.—Funds received under this subpart and deposited in the reserve account established under subsection (a) shall 

be invested in obligations issued or guaranteed by the United 

States or a State, or in other similarly low-risk securities. 

ø(c) REINVESTMENT OF EARNINGS.—Any earnings on funds received under this subpart shall be deposited in the reserve account 

established under subsection (a) and used in accordance with such 

subsection. 


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øSEC. 5226. LIMITATION ON ADMINISTRATIVE COSTS. 

øAn eligible entity may use not more than 0.25 percent of the 

funds received under this subpart for the administrative costs of 

carrying out its responsibilities under this subpart. 

øSEC. 5227. AUDITS AND REPORTS. 

ø(a) FINANCIAL RECORD MAINTENANCE AND AUDIT.—The financial records of each eligible entity receiving a grant under this subpart shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an 

independent public accountant. 

ø(b) REPORTS.— 

ø(1) GRANTEE ANNUAL REPORTS.—Each eligible entity receiving a grant under this subpart annually shall submit to the 

Secretary a report of its operations and activities under this 

subpart. 

ø(2) CONTENTS.—Each annual report submitted under paragraph (1) shall include— 

ø(A) a copy of the most recent financial statements, and 

any accompanying opinion on such statements, prepared 

by the independent public accountant reviewing the financial records of the eligible entity; 

ø(B) a copy of any report made on an audit of the financial records of the eligible entity that was conducted under 

subsection (a) during the reporting period; 

ø(C) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under this 

subpart in leveraging private funds; 

ø(D) a listing and description of the charter schools 

served during the reporting period; 

ø(E) a description of the activities carried out by the eligible entity to assist charter schools in meeting the objectives set forth in section 5224; and 

ø(F) a description of the characteristics of lenders and 

other financial institutions participating in the activities 

undertaken by the eligible entity under this subpart during the reporting period. 

ø(3) SECRETARIAL REPORT.—The Secretary shall review the 

reports submitted under paragraph (1) and shall provide a 

comprehensive annual report to Congress on the activities conducted under this subpart. 

øSEC. 5228. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS. 

øNo financial obligation of an eligible entity entered into pursuant to this subpart (such as an obligation under a guarantee, bond, 

note, evidence of debt, or loan) shall be an obligation of, or guaranteed in any respect by, the United States. The full faith and credit 

of the United States is not pledged to the payment of funds which 

may be required to be paid under any obligation made by an eligible entity pursuant to any provision of this subpart. 

øSEC. 5229. RECOVERY OF FUNDS. 

ø(a) IN GENERAL.—The Secretary, in accordance with chapter 37 

of title 31, United States Code, shall collect— 

ø(1) all of the funds in a reserve account established by an 

eligible entity under section 5225(a) if the Secretary determines, not earlier than 2 years after the date on which the eliVerDate Mar 15 2010 04:14 Apr 30, 2014 Jkt 039006 PO 00000 Frm 00092 Fmt 6659 Sfmt 6601 E:\HR\OC\HR423.XXX HR423

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gible entity first received funds under this subpart, that the eligible entity has failed to make substantial progress in carrying out the purposes described in section 5225(a); or 

ø(2) all or a portion of the funds in a reserve account established by an eligible entity under section 5225(a) if the Secretary determines that the eligible entity has permanently 

ceased to use all or a portion of the funds in such account to 

accomplish any purpose described in section 5225(a). 

ø(b) EXERCISE OF AUTHORITY.—The Secretary shall not exercise 

the authority provided in subsection (a) to collect from any eligible 

entity any funds that are being properly used to achieve one or 

more of the purposes described in section 5225(a). 

ø(c) PROCEDURES.—The provisions of sections 451, 452, and 458 

of the General Education Provisions Act shall apply to the recovery 

of funds under subsection (a). 

ø(d) CONSTRUCTION.—This section shall not be construed to impair or affect the authority of the Secretary to recover funds under 

part D of the General Education Provisions Act. 

øSEC. 5230. DEFINITIONS. 

øIn this subpart: 

ø(1) CHARTER SCHOOL.—The term ‘‘charter school’’ has the 

meaning given such term in section 5210. 

ø(2) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means— 

ø(A) a public entity, such as a State or local governmental entity; 

ø(B) a private nonprofit entity; or 

ø(C) a consortium of entities described in subparagraphs 

(A) and (B). 

øSEC. 5231. AUTHORIZATION OF APPROPRIATIONS. 

øFor the purpose of carrying out this subpart, there are authorized to be appropriated $150,000,000 for fiscal year 2002 and such 

sums as may be necessary for fiscal year 2003.¿ 

* * * * * * * 

Æ 


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