99–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–178 

EMPOWERING PARENTS THROUGH QUALITY CHARTER 

SCHOOLS ACT 

JULY 22, 2011.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

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

submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 2218] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Education and the Workforce, to whom was 

referred the bill (H.R. 2218) 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 ‘‘Empowering Parents 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provision is amended or repealed, such amendment or repeal shall be considered to 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. 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) provide financial assistance for the planning, program design, and initial 

implementation of charter schools; 


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

across the Nation; 

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

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

schools; 

‘‘(4) 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; 

‘‘(5) improve student services to increase opportunities for students with disabilities, English language learners, and other traditionally underserved students to attend charter schools and meet challenging State academic achievement standards; and 

‘‘(6) support efforts to strengthen the charter school authorizing process to improve performance management, including transparency, monitoring, and evaluation of such schools.’’. 

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, replication, and expansion of 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; 

and 

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

in the program. 

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

for a fiscal year, the Secretary shall— 

‘‘(1) reserve 15 percent to support charter school facilities assistance under 

section 5204; 

‘‘(2) reserve not more than 5 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, as such subpart was in effect on the day before the date of enactment 

of the Empowering Parents 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— 

‘‘(A) opening new charter schools; 

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

‘‘(C) expanding 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 90 percent of the grant funds to award subgrants to eligible applicants, in accordance with the quality charter school program described 

in the entity’s application approved pursuant to subsection (f), for the purposes described in subparagraphs (A) through (C) of subsection (a)(1); and 

‘‘(B) reserve 10 percent of such funds to carry out the activities described 

in subsection (a)(2), of which not more than 30 percent may be used for administrative costs which may include technical assistance. 


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‘‘(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. 

‘‘(c) PROGRAM PERIODS; PEER REVIEW; DIVERSITY OF PROJECTS.— 

‘‘(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) 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. 

‘‘(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 charter school for a 5-year period. 

‘‘(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 entity’s objectives in running a quality charter school program under this section and how the objectives 

of the program will be carried out, including a description— 

‘‘(A) of how the entity— 

‘‘(i) will support both new charter school startup and the expansion 

and replication of high-quality charter school models; 

‘‘(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 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; and 

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

and students are eligible to receive under such programs; 

‘‘(iv) in the case in which the 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 entity’s program under this section, where applicable; 

‘‘(v) will ensure eligible applicants that receive a subgrant under the 

entity’s program are prepared to continue to operate the charter schools 

receiving the subgrant funds once the funds have expired; 

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

large numbers of schools that must comply with the requirements of 

section 1116(b); 

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

‘‘(viii) will work with charter schools on recruitment practices, including efforts to engage groups that may otherwise have limited opportunities to participate in charter schools; 

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

and other public schools; 


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‘‘(x) will ensure the charter schools they support can meet the edu- cational needs of their students, including students with disabilities 

and English language learners; and ‘‘(xi) will support efforts to increase quality initiatives, including meeting the quality authorizing elements described in paragraph (2)(E); ‘‘(B) of the extent to which the 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 and replicable, high-quality charter school models, and expanding high-quality charter schools; ‘‘(C) how the 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 appli- cants, partner organizations, and management organizations, including the administrative and contractual roles and responsibilities; and 

‘‘(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, and how a 

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

will be a primary factor for renewal; and 

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

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

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

of the roles and responsibilities of this partner. 

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

will be met, that— 

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

have a high degree of autonomy over budget and operations; 

‘‘(B) the entity will support charter schools in meeting the educational 

needs of their students as described in paragraph (1)(A)(x); 

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

of any charter school that receives funds under the entity’s program— 

‘‘(i) ensures that the charter school is meeting the obligations under 

this Act, part B of the Individuals with Disabilities Education Act, title 

VI of the Civil Rights Act of 1964, and section 504 of the Rehabilitation 

Act of 1973; and 

‘‘(ii) adequately monitors and helps the schools in recruiting, enrolling, and meeting the needs of all students, including students with disabilities and English language learners; 

‘‘(D) the 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) enroll traditionally underserved students, including students 

with disabilities and English language learners, to promote an inclusive 

education environment; 

‘‘(E) the entity will promote quality authorizing, such as through providing technical assistance, to support all authorized public chartering 

agencies in the State to improve the monitoring of their charter schools, including by— 

‘‘(i) using annual performance data, which may include graduation 

rates and student growth data, as appropriate, to measure the progress 

of their schools toward becoming high-quality charter schools; and 

‘‘(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 

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

the traditional public school system in decision-making about the public 

school system in the State. 

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

Federal statutory or regulatory provisions that the entity believes are necessary 

for the successful operation of the charter schools that will receive funds under 

the 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. 

‘‘(f) SELECTION CRITERIA; PRIORITY.— 


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‘‘(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 entity will work to maximize the flexibility provided to 

charter schools under the law; 

‘‘(B) the ambitiousness of the 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 proposed number of new charter schools to be opened, and the 

number of high-quality charter schools to be replicated or expanded under 

the program; ‘‘(F) the entity’s plan to— ‘‘(i) adequately monitor the eligible applicants receiving subgrants under the entity’s program; and ‘‘(ii) work with the authorized public chartering agencies involved to avoid duplication of work for the charter schools and authorized public 

chartering agencies; 

‘‘(G) the entity’s plan to provide adequate technical assistance, as described in the entity’s application under subsection (e), for the eligible applicants receiving subgrants under the entity’s program under this section; 

and 

‘‘(H) the entity’s plan to support quality authorizing efforts in the State, 

consistent with the objectives described in subparagraph (B). 

‘‘(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 in which a State entity is located in a State that allows 

an entity other than the State educational agency to be an authorized public chartering agency or a State in which only a local educational agency 

may be an authorized public chartering agency, the State has an appeals 

process for the denial of an application for a charter school. 

‘‘(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 supports full-, blended-, or hybrid-online charter 

school models. 

‘‘(E) 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. 

‘‘(F) 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. 

‘‘(G) The State entity demonstrates quality policies and practices to support and monitor charter schools through factors, including— 

‘‘(i) the proportion of high-quality charter schools in the State; and 

‘‘(ii) the proportion of charter schools enrolling, at a rate similar to 

traditional public schools, traditionally underserved students, including 

students with disabilities and English language learners. 

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

section shall use such funds to open new charter schools or replicable, high-quality 

charter school models, or expand existing high-quality charter schools. 

‘‘(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 and, if applicable, how many new students 

were served during each year of the grant period; 

‘‘(2) 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 replicable, high-quality charter school models; and 

‘‘(C) the expansion of high-quality charter schools; 


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‘‘(3) the progress the entity made toward meeting the priorities described in 

subsection (f)(2), as applicable; 

‘‘(4) how the entity met the objectives of the quality charter school program 

described in the entity’s application under subsection (e); 

‘‘(5) how the entity complied with, and ensured that eligible applicants complied with, the assurances described in the entity’s application; and 

‘‘(6) how the entity worked with authorized public chartering agencies, including how the agencies worked with the management company or leadership of 

the schools in which the subgrants were awarded. 

‘‘(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; or 

‘‘(3) a Governor of a State.’’. 

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 award not less than 3 grants to eligible entities that have applications approved under subsection (d) 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.— 

‘‘(1) EVALUATION OF APPLICATION.—The Secretary shall evaluate each application submitted under subsection (d), and shall determine whether the application is sufficient to merit approval. 

‘‘(2) DISTRIBUTION OF GRANTS.—The Secretary shall award at least one grant 

to an eligible entity described in subsection (a)(2)(A), at least one grant to an 

eligible entity described in subsection (a)(2)(B), and at least one grant to an eligible entity described in subsection (a)(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. 

‘‘(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 

government funding used and otherwise enhance credit available to charter 

schools, including how the 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 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 


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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 both 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, including predevelopment costs, or the renovation, repair, or alteration of existing facilities, 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 de- scribed 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 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 subsection. 

‘‘(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; 


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‘‘(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 sub- mitted 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 obliga- tion 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 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. 

‘‘(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 reserved 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. 


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‘‘(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.—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.—A State that is required under State law to provide its charter schools with access to adequate facility space 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. 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 50 percent of such funds to award grants in accordance 

with subsection (b); and 

‘‘(2) use the remainder of such funds to— 

‘‘(A) disseminate technical assistance to State entities in awarding subgrants under section 5203; 

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

‘eligible applicant’ means an eligible applicant that desires to open a charter 

school in— 

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

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

‘‘(C) a State that received a grant under section 5203 and is in the 4th 

or 5th year of the grant period for such grant. 

‘‘(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.’’. 


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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) in paragraph (1)— 

(A) by striking ‘‘and’’ at the end of subparagraph (K); 

(B) by striking the period at the end of subparagraph (L) and inserting 

‘‘; and’’; and 

(C) by adding at the end, the following: 

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

(2) in paragraph (3)(B), by striking ‘‘under section 5203(d)(3)’’; and 

(3) by inserting at the end the following: 

‘‘(5) EXPANSION OF A HIGH-QUALITY CHARTER SCHOOL.—The term ‘expansion of 

a high-quality charter school’ means a high-quality charter school that either 

significantly increases its enrollment or adds one or more grades to its school. 

‘‘(6) 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, financial 

management, or statutory or regulatory compliance; 

‘‘(C) has demonstrated success in significantly increasing student academic achievement and attainment for all students served by charter 

schools; and 

‘‘(D) has demonstrated success in increasing student academic achievement for the subgroups of students described in section 1111(b)(2)(C)(v)(II). 

‘‘(7) REPLICABLE, HIGH-QUALITY CHARTER SCHOOL MODEL.—The term 

‘replicable, high-quality charter school model’ means a high-quality charter 

school that will open a new campus under an existing charter.’’. 

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 2012 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 section 5203 and inserting the following: 

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

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

‘‘Sec. 5204. Facilities Financing Assistance.’’; and 

(3) by striking subpart 2 of part B of title V. 

PURPOSE

H.R. 2218, the Empowering Parents 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 charter schools available to students and 

families, ensures charter schools share their best practices with all 

public schools, and improves access to charter schools for all students, including students with disabilities and English language 

learners. 

COMMITTEE ACTION

This bill is the second in a series of bills designed to reauthorize 

the Elementary and Secondary Education Act (ESEA). H.R. 2218 

builds upon the Committee’s efforts to examine the federal investVerDate Mar 15 2010 21:41 Jul 24, 2011 Jkt 099006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR178.XXX HR178

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ment in education and evaluate elementary and secondary education programs. 

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 at 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 learn 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 also focused on H.R. 4430, 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 FY 2010 Consolidated Appropriations Act, 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 


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state and local education leaders who are pushing for innovative 

approaches to education reform and greater state and local flexibility. 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. Specifically, the hearing looked at: (1) how charter schools 

serve special populations, including students with disabilities and 

English Language Learners; (2) how charter schools serve the 

needs of the local community; and (3) how charter school authorizers work to improve quality. 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 Rep. John 

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

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

and Secondary Education Act. H.R. 2218 is 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). 

The Committee on Education and the Workforce considered H.R. 

2218 in legislative session on June 22, 2011, 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). 

This amendment: 

• Clarifies that charter schools must have autonomy from state 

and local policies and practices over their budgets and operations. 


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• Clarifies language requiring states and charter school authorizers to provide technical assistance to charter schools. It provides 

examples of the factors that charter school authorizers must look 

for as they approve and monitor charter schools in their state. • Adds a priority in the grant application encouraging states to 

support quality policies and practices in monitoring charter schools 

in their state. • Clarifies that charter schools should be part of any discussion 

or decision made about the public school system in the state. • Adds a provision encouraging charter schools and traditional 

public schools to share best practices. • Requires grantees to state they will assist charter schools in 

ensuring they support all students in an inclusive education environment. • Clarifies that the Secretary of Education will examine student 

achievement when conducting an evaluation of the program’s effects on participating charter schools. 

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. 

LETTERS OF SUPPORT


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Below is a summary of H.R. 2218: 

SUMMARY

H.R. 2218, the Empowering Parents through Quality Charter 

Schools Act, streamlines and modernizes the existing charter school 

programs under the Elementary and Secondary Education Act 

(ESEA) from two provisions to one. The two current programs are: 

• The Charter School Program supports grants for charter school 

developers to open or start 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 fiscal year 2002 and such sums as necessary for fiscal year 2003 through 2007. 

• The Charter School Credit Enhancement Program assists charter schools in accessing better credit terms to acquire and renovate 

facilities to operate a charter school. The program was last authorized at $150 million in fiscal year 2002 and such sums as necessary 

for fiscal year 2003. 

H.R. 2218 consolidates the two provisions in current law into one 

program, refocuses the program to promote charter schools at the 

state and local level, and allows states to use federal funds to start 

new charter schools and expand and replicate existing high-quality 

charter schools. The new Charter School Program will consist of 

three parts: 

• State Quality Charter School Grants will be awarded to a State 

Educational Agency, the State Charter School Board, or the Governor. These grants will support the expansion and replication of 

high-quality charter schools, new, innovative charter school models, 

and quality initiatives to improve 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 start-up competition for charter schools in states that did 

not win or compete for a State Quality Charter School Grant, or 

whose state is in the fourth or fifth year of the grant. This section 

also requires the Secretary to offer technical assistance to eligible 

grantees that are interested in applying for the grant and technical 

assistance to help grantees properly implement the grant. The Secretary will also be allowed to disseminate best practices to ensure 

all public schools may benefit from the lessons learned from charter schools. Finally, the Secretary will conduct an evaluation to examine the effects of the legislation on charter schools, including 

student achievement. 

H.R. 2218, the Empowering Parents through Quality Charter 

Schools Act authorizes the Charter School Program at $300,000,000 

for fiscal year 2012 through 2017. The bill makes technical corrections to other provisions in the Charter School Program, including 

modifying the definition of a charter school to clarify that a charter 

school can serve early childhood students as well as post-secondary 

students. The legislation adds three new definitions to the law: a 

high-quality charter school; the expansion of a high-quality charter 

school; and a replicable, high-quality charter school model. 


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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 less 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 leverage funds 

through credit enhancement initiatives to help charter schools leverage other funds to acquire, construct, renovate, or lease academic facilities. 

The first charter school opened in 1992; today, 5,200 charter 

schools in 39 states and the District of Columbia serve 1.8 million 

students. Forty 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 420,000 students are on waitlists to enter charter 

schools. Charter schools also face challenges in serving certain populations of students and, in particular, students with disabilities, 

including students with lower incidence disabilities, and English 

language learners. 

Legislative Changes 

H.R. 2218, the Empowering Parents through Quality Charter 

Schools Act, builds on the success of the charter school community, 

improves access for traditionally underserved populations, supports 

high-quality charter schools, and strengthens accountability. 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 several examples of high-quality 

schools that could receive federal and state support to expand and 

replicate their successes. While the Committee on Appropriations 

has supported this effort through a reservation for the Charter 

School Program appropriation, the Committee believes it is important to update the authorizing legislation to ensure states have a 

role in ensuring thoughtful development of charter schools in each 

state. The Empowering Parents through Quality Charter Schools 

Act includes the expansion and replication of high-quality charter 

schools as an added 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 highquality charter schools. 


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Charter schools receiving funds under this program must admit 

their students through a lottery system, as approved by state law, 

if the demand for attendance exceeds the available slots in the 

schools. The more than 400,000 students on waitlists demonstrate 

an intense demand for charter schools. It is important to assist 

these schools in reaching all students who may benefit from the 

opening or expansion of new charter schools. But the focus must 

be on increasing the number of quality education options for parents, not just increasing the number of charter schools available. 

The legislation, therefore, includes provisions to help grantees 

reach out to charter school developers and school leaders to recruit 

traditionally underserved students, including students with disabilities and English language learners; promote inclusion; and meet 

the needs of those students. 

The Empowering Parents through Quality Charter Schools Act 

supports charter schools in serving students with disabilities, including students with lower incidence disabilities, English language learners, and other traditionally underserved students. The 

legislation recognizes that charter schools need support in recruiting and serving students with special needs and includes provisions 

to help charter schools address those challenges. The Committee 

believes the technical assistance and other provisions required of 

grantees will help charter schools recruit, enroll, and serve these 

students. 

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 helps charter 

schools avoid application barriers that exclude 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 language 

learners, and other traditionally underserved populations. 

In modernizing the Charter School Program, H.R. 2218 includes 

a new provision that reserves 10 percent of each state grant to support initiatives to improve charter school authorizing. While a 

small percentage will be used for state administrative costs, the 

majority of the funds will benefit all charter schools in the state 

by helping charter school authorizers identify key indicators of 

quality, including how to ensure the school and the authorizer are 

clear on the goals and expectations of each party, including helping 

charter schools meet their obligations under existing laws and this 

Act. The funds will also be used to increase the number of quality 

charter schools available for students, not just the opening of new 

charter schools, and support access and services for all students by 

helping charter schools recruit, enroll, and meet the needs of students with disabilities, including students with lower incidence disabilities, and English language learners. 

The bill requires eligible applicants to describe the quality controls agreed to with their authorizers in their contract, and the 

terms of contracts with other organizations. In the applications, 


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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 

determined by state law, the authorizer, and the school, as outlined 

in a legally binding performance contract. The legislation requires 

charter schools to be transparent about contractual relationships 

with management organizations. As stipulated in the U.S. Department of Education nonregulatory guidance for the Charter School 

Program, charter schools that receive grants under this program 

should avoid conflicts of interest. In promoting quality authorizing, 

grantees should support authorizers that ensure annual, independent financial audits are publicly reported and easily accessible, 

such as through posting on the school or authorizer website. The 

Committee believes it is important that authorizers and charter 

schools have as much flexibility in complying with these provisions 

as possible in order to ensure charter schools can meet the expectations of their respective authorizers and still operate in an autonomous manner to meet the goals of the school. 

In addition, the Empowering Parents through Quality Charter 

Schools Act allows new eligible grantees to compete for funding 

under State Quality Charter School Grants and provides more 

flexibility in the operation of the state grant competition for the 

start-up of charter schools. The bill allows state charter school 

boards and governors to apply for state grants, in addition to the 

State Educational Agency (SEA), which is allowed under current 

law. This expansion of eligible grantees is meant to ensure that 

charter schools have an opportunity to open and expand with the 

support of a grantee who 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 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 State Educational Agency, where appropriate. While this provision does not give the SEA any authority over the grantee or program the grantee is running, it should ensure that the SEA and 

charter school operators are working 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. 

H.R. 2218 includes a clear listing of assurances and priorities 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. The bill includes an assurance 

that charter schools comply with all applicable federal laws—an obligation that these schools are already required to follow—such as 

the Individuals with Disabilities Education Act, section 504 of the 

Rehabilitation Act, Title VI of the Civil Rights Act of 1964, and the 


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other applicable provisions of the Elementary and Secondary Education Act. This measure ensures state grantees and the charter 

schools they support are clear about the requirements that must be 

met. The bill also includes an assurance that 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 that will affect 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 that each charter school has a 

high level of autonomy, particularly over budgets and operations, 

will also ensure the schools can be innovative in responding to the 

needs of the community. 

The legislation’s priorities will provide an incentive to states to 

support more high-quality charter schools that meet the needs of 

the local community. Provisions that support 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. A priority is also included for those states whose 

charter schools serve students with disabilities and other traditionally underserved students at a similar rate as the local schools. The 

Committee believes that states with a high proportion of charter 

schools demonstrating this commitment have created a state environment and the state infrastructure to help charter schools serve 

these students. 

The Committee believes that reporting requirements are an important tool for evaluating the success of grantees in fulfilling the 

purpose of the program. H.R. 2218 requires grantees to report to 

the Secretary of Education at the end of the third year of the fiveyear grant period. The information submitted to the Secretary on 

the number of 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 direction to reserve 15 percent of the total appropriated funds ensures there are sufficient funds 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 removes the 

priority of awards under the credit enhancement program to ensure 

the best grantees are winning. 

The Empowering Parents through Quality Charter Schools Act 

updates the national activities portion of the grant to allow the 

Secretary of Education to run a competition for charter schools that 

want to open in states that did not win or compete for a state 


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grant, or are in a state that is in the fourth or fifth year of their 

grant. This will ensure students are not left behind in states that 

have not demonstrated the leadership to support charter schools or 

those that have already obligated their funds under the grant. It 

is the Committee’s expectation that the Secretary will assess the 

quality of applicants in the same manner as in the state competition. The Secretary will also be required to offer technical assistance to assist grantees in implementing their grants to maximize 

the impact of the funds. The Secretary will also disseminate best 

practices to help all public schools benefit from the success of charter schools. Finally, the Secretary is required to conduct an evaluation that will measure the effects 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. 

Conclusion 

H.R. 2218, the Empowering Parents through Quality Charter 

Schools Act, modernizes and streamlines the charter school provisions under the Elementary and Secondary Education Act. The bill 

updates the Charter School Program in line with the charter school 

landscape to better support high-quality 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 ‘‘Empowering Parents through Quality Charter Schools Act.’’ 

Section 2—References 

References the Elementary and Secondary Education Act. 

Section 3—Purpose 

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 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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41 

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, 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 ‘Expansion of a High-Quality Charter School,’ ‘HighQuality Charter School,’ and ‘Replicable, High-Quality Charter 

School Model.’ 

Section 10—Authorization of appropriations 

Authorizes the program at $300 million for fiscal years 2012 through 2017. 

Section 11—Conforming amendments 

Modifies the Elementary and Secondary Education Act to ad- dress 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. 2218 reforms and simplifies the federal charter schools program within the 

Elementary and Secondary Education Act. H.R. 2218 would have 

no direct impact on the Legislative Branch. 

UNFUNDED MANDATE STATEMENT

Section 423 of the Congressional Budget and Impoundment Con- trol 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. 2218 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9 of 

House Rule XXI. 

ROLLCALL 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 


sroberts on DSK5SPTVN1PROD with REPORTS
42 

for and against and the names of the Members voting for and 

against. 


sroberts on DSK5SPTVN1PROD with REPORTS
43 


sroberts on DSK5SPTVN1PROD with REPORTSInsert graphic folio 43 HR178.022
44 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause (3)(c) of House Rule XIII, the goal of 

H.R. 2188 is to reform and simplify the federal charter schools program within the Elementary and Secondary Education Act. The 

Committee expects the Department of Education to comply with 

these provisions and implement the changes to the law in accordance with these stated goals. 

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. 2218 from 

the Director of the Congressional Budget Office: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, June 30, 2011. 

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. 2218, the Empowering 

Parents 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, 

ROBERT A. SUNSHINE

(For Douglas W. Elmendorf, Director). 

Enclosure. 

H.R. 2218—Empowering Parents through Quality Charter Schools 

Act 

H.R. 2218 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 2017 and combine them into a single 

authorization. (That authorization would automatically be extended 

by one year through 2018 under the General Education Provisions 

Act.) The bill would authorize the appropriation of $300 million for 

each of fiscal years 2012 through 2018 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. 


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45 

1For Charter School Programs, prior law authorized the appropriation of $300 million for fiscal year 2002 and such sums as may 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 may be necessary through fiscal year 2004. 

For fiscal year 2011, the Department of Education allocated $256 

million for Charter School Programs and did not allocate any 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 about $1 billion over the 2012–2016 period, assuming appropriation of the authorized amounts. Additional 

authorized amounts under H.R. 2218 would be spent after 2016. 

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. 

By fiscal year, in millions of dollars— 

2012 2013 2014 2015 2016 2012– 

2016 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ....................................................................... 300 300 300 300 300 1,500 

Estimated Outlays ........................................................................ 15 150 255 300 300 1,020 

Enacting the bill would have no impact on direct spending or revenues; therefore, pay-as-you-go procedures do not apply. 

H.R. 2218 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. State and 

local entities would benefit from continued federal grant funding 

for charter schools. Any costs associated with receiving such grants 

would be incurred voluntarily as conditions of aid. 

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. 2218. 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. 

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 (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 


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46 

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

SUBPART 1—CHARTER SCHOOL PROGRAMS

* * * * * * * 

¿Sec. 5203. Applications. 

¿Sec. 5204. Administration.

Sec. 5203. Grants to support high-quality charter schools. 

Sec. 5204. Facilities Financing Assistance. 

* * * * * * * 

¿SUBPART 2—CREDIT ENHANCEMENT INITIATIVES TO ASSIST CHARTER SCHOOL FACILITY

ACQUISITION, CONSTRUCTION, AND RENOVATION

¿Sec. 5221. Purpose. 

¿Sec. 5222. Grants to eligible entities. 

¿Sec. 5223. Applications. 

¿Sec. 5224. Charter school objectives. 

¿Sec. 5225. Reserve account. 

¿Sec. 5226. Limitation on administrative costs. 

¿Sec. 5227. Audits and reports. 

¿Sec. 5228. No full faith and credit for grantee obligations. 

¿Sec. 5229. Recovery of funds. 

¿Sec. 5230. Definitions. 

¿Sec. 5231. Authorization of appropriations.

* * * * * * * 

TITLE V—PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE 

PROGRAMS 

* * * * * * * 

PART B—PUBLIC CHARTER SCHOOLS 

Subpart 1—Charter School Programs 

¿SEC. 5201. PURPOSE. 

¿It is the purpose of this subpart to increase national understanding of the charter schools model by— 

¿(1) providing financial assistance for the planning, program 

design, and initial implementation of charter schools; 

¿(2) evaluating the effects of such schools, including the effects on students, student academic achievement, staff, and 

parents; 

¿(3) expanding the number of high-quality charter schools 

available to students across the Nation; and 


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47 

¿(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. 

¿SEC. 5202. PROGRAM AUTHORIZED. 

¿(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. 

¿(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). 

¿(c) PROGRAM PERIODS.— ¿(1) GRANTS TO STATES.—Grants awarded to State educational agencies under this subpart shall be for a period of not 

more than 3 years. 

¿(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— 

¿(A) not more than 18 months for planning and program design; 

¿(B) not more than 2 years for the initial implementa- tion of a charter school; and 

¿(C) not more than 2 years to carry out dissemination activities described in section 5204(f)(6)(B). 

¿(d) LIMITATION.—A charter school may not receive— 

¿(1) more than one grant for activities described in subpara- graphs (A) and (B) of subsection (c)(2); or 

¿(2) more than one grant for activities under subparagraph (C) of subsection (c)(2). 

¿(e) PRIORITY TREATMENT.— ¿(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 

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). 

¿(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. 

¿(3) PRIORITY CRITERIA.—The criteria referred to in paragraph (1) are the following: 

¿(A) The State has demonstrated progress, in increasing 

the number of high-quality charter schools that are held 


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48 

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. 

¿(B) The State— 

¿(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 

¿(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. 

¿(C) The State ensures that each charter school has a 

high degree of autonomy over the charter school’s budgets 

and expenditures. 

¿(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. 

¿SEC. 5203. APPLICATIONS. 

¿(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. 

¿(b) CONTENTS OF A STATE EDUCATIONAL AGENCY APPLICATION.— 

Each application submitted pursuant to subsection (a) shall— 

¿(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 

¿(2) describe how the State educational agency— 

¿(A) will inform each charter school in the State regarding— 

¿(i) Federal funds that the charter school is eligible 

to receive; and 

¿(ii) Federal programs in which the charter school 

may participate; 

¿(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 

¿(C) will disseminate best or promising practices of charter schools to each local educational agency in the State; 

and 

¿(3) contain assurances that the State educational agency 

will require each eligible applicant desiring to receive a 


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49 

subgrant to submit an application to the State educational 

agency containing— 

¿(A) a description of the educational program to be implemented by the proposed charter school, including— 

¿(i) how the program will enable all students to 

meet challenging State student academic achievement 

standards; 

¿(ii) the grade levels or ages of children to be served; 

and 

¿(iii) the curriculum and instructional practices to 

be used; 

¿(B) a description of how the charter school will be managed; 

¿(C) a description of— 

¿(i) the objectives of the charter school; and 

¿(ii) the methods by which the charter school will 

determine its progress toward achieving those objectives; 

¿(D) a description of the administrative relationship between the charter school and the authorized public chartering agency; 

¿(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; 

¿(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); 

¿(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; 

¿(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; 

¿(I) a description of how students in the community will 

be— 

¿(i) informed about the charter school; and 

¿(ii) given an equal opportunity to attend the charter school; 

¿(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); 

¿(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; 

¿(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, 


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50 

will comply with sections 613(a)(5) and 613(e)(1)(B) of the 

Individuals with Disabilities Education Act; 

¿(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 

¿(N) such other information and assurances as the Secretary and the State educational agency may require. 

¿(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. 

¿(d) CONTENTS OF ELIGIBLE APPLICANT APPLICATION.—Each application submitted pursuant to subsection (c) shall contain— 

¿(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; 

¿(2) assurances that the State educational agency— 

¿(A) will grant, or will obtain, waivers of State statutory 

or regulatory requirements; and 

¿(B) will assist each subgrantee in the State in receiving 

a waiver under section 5204(e); and 

¿(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. 

¿SEC. 5204. ADMINISTRATION. 

¿(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— 

¿(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; 

¿(2) the degree of flexibility afforded by the State educational 

agency to charter schools under the State’s charter schools law; 

¿(3) the ambitiousness of the objectives for the State charter 

school grant program; 

¿(4) the quality of the strategy for assessing achievement of 

those objectives; 


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51 

¿(5) the likelihood that the charter school grant program will 

meet those objectives and improve educational results for students; 

¿(6) the number of high-quality charter schools created 

under this subpart in the State; and 

¿(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. 

¿(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— 

¿(1) the quality of the proposed curriculum and instructional 

practices; 

¿(2) the degree of flexibility afforded by the State educational 

agency and, if applicable, the local educational agency to the 

charter school; 

¿(3) the extent of community support for the application; 

¿(4) the ambitiousness of the objectives for the charter 

school; 

¿(5) the quality of the strategy for assessing achievement of 

those objectives; 

¿(6) the likelihood that the charter school will meet those objectives and improve educational results for students; and 

¿(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. 

¿(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. 

¿(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— 

¿(1) are distributed throughout different areas of the Nation 

and each State, including urban and rural areas; and 

¿(2) will assist charter schools representing a variety of educational approaches, such as approaches designed to reduce 

school size. 

¿(e) WAIVERS.—The Secretary may waive any statutory or regulatory requirement over which the Secretary exercises administrative authority except any such requirement relating to the elements of a charter school described in section 5210(1), if— 

¿(1) the waiver is requested in an approved application 

under this subpart; and 

¿(2) the Secretary determines that granting such a waiver 

will promote the purpose of this subpart. 

¿(f) USE OF FUNDS.— ¿(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 appliVerDate Mar 15 2010 21:41 Jul 24, 2011 Jkt 099006 PO 00000 Frm 00051 Fmt 6659 Sfmt 6601 E:\HR\OC\HR178.XXX HR178

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52 

cants 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). 

¿(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. 

¿(3) ALLOWABLE ACTIVITIES.—An eligible applicant receiving 

a grant or subgrant under this subpart may use the grant or 

subgrant funds only for— 

¿(A) post-award planning and design of the educational 

program, which may include— 

¿(i) refinement of the desired educational results 

and of the methods for measuring progress toward 

achieving those results; and 

¿(ii) professional development of teachers and other 

staff who will work in the charter school; and 

¿(B) initial implementation of the charter school, which 

may include— 

¿(i) informing the community about the school; 

¿(ii) acquiring necessary equipment and educational 

materials and supplies; 

¿(iii) acquiring or developing curriculum materials; 

and 

¿(iv) other initial operational costs that cannot be 

met from State or local sources. 

¿(4) ADMINISTRATIVE EXPENSES.— 

¿(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. 

¿(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. 

¿(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 


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53 

as the recipient begins receiving ongoing operational support 

from State or local financing sources. 

¿(6) DISSEMINATION.— ¿(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— 

¿(i) substantial progress in improving student aca- demic achievement; 

¿(ii) high levels of parent satisfaction; and 

¿(iii) the management and leadership necessary to overcome initial start-up problems and establish a 

thriving, financially viable charter school. 

¿(B) ACTIVITIES.—A charter school described in subpara- graph (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— 

¿(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; 

¿(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; 

¿(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 

¿(iv) conducting evaluations and developing mate- rials that document the successful practices of the assisting charter school and that are designed to improve student performance in other schools. 

¿(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— 

¿(1) the eligibility of the school to receive any other Federal, 

State, or local aid; or 

¿(2) the amount of such aid. 

¿SEC. 5205. NATIONAL ACTIVITIES. 

¿(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: 


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54 

¿(1) To provide charter schools, either directly or through 

State educational agencies, with— 

¿(A) information regarding— 

¿(i) Federal funds that charter schools are eligible to 

receive; and 

¿(ii) other Federal programs in which charter 

schools may participate; and 

¿(B) assistance in applying for Federal education funds 

that are allocated by formula, including assistance with filing deadlines and submission of applications. 

¿(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— 

¿(A) students attending charter schools reported on the 

basis of race, age, disability, gender, limited English proficiency, and previous enrollment in public school; and 

¿(B) the professional qualifications of teachers within a 

charter school and the turnover of the teaching force. 

¿(3) To provide— 

¿(A) information to applicants for assistance under this 

subpart; 

¿(B) assistance to applicants for assistance under this 

subpart with the preparation of applications under section 

5203; 

¿(C) assistance in the planning and startup of charter 

schools; 

¿(D) training and technical assistance to existing charter 

schools; and 

¿(E) for the dissemination to other public schools of best 

or promising practices in charter schools. 

¿(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. 

¿(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— 

¿(A) how, and the extent to which, the programs promote educational equity and excellence; and 

¿(B) the extent to which charter schools supported 

through the programs are— 

¿(i) held accountable to the public; 

¿(ii) effective in improving public education; and 

¿(iii) open and accessible to all students. 

¿(b) PER-PUPIL FACILITIES AID PROGRAMS.— ¿(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— 


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55 

¿(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 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. 

¿(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. 

¿(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. 

¿(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.—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. 

¿(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. 


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¿(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). 

¿(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) provide financial assistance for the planning, program design, and initial implementation of charter schools; 

(2) expand the number of high-quality charter schools available to students across the Nation; 

(3) evaluate the impact of such schools on student achievement, families, and communities, and share best practices between charter schools and other public schools; 

(4) 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; 

(5) improve student services to increase opportunities for students with disabilities, English language learners, and other 

traditionally underserved students to attend charter schools 

and meet challenging State academic achievement standards; 

and 

(6) support efforts to strengthen the charter school authorizing process to improve performance management, including 

transparency, monitoring, and evaluation of such schools. 

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, replication, and expansion of 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; and 

(C) the evaluation of the impact of the program on 

schools participating in the program. 

(b) FUNDING ALLOTMENT.—From the amount made available 

under section 5211 for a fiscal year, the Secretary shall— 

(1) reserve 15 percent to support charter school facilities assistance under section 5204; 

(2) reserve not more than 5 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, as such subpart was in effect on the 

day before the date of enactment of the Empowering Parents 

through Quality Charter Schools Act, shall continue to receive funds 


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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— 

(A) opening new charter schools; 

(B) opening replicable, high-quality charter school models; or 

(C) expanding 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 90 percent of the grant funds to award subgrants 

to eligible applicants, in accordance with the quality charter school program described in the entity’s application approved pursuant to subsection (f), for the purposes described in subparagraphs (A) through (C) of subsection 

(a)(1); and 

(B) reserve 10 percent of such funds to carry out the activities described in subsection (a)(2), of which not more 

than 30 percent may be used 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. 

(c) PROGRAM PERIODS; PEER REVIEW; DIVERSITY OF PROJECTS.— 

(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) 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. 

(d) LIMITATIONS.— 


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(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 charter school for a 5- 

year period. 

(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 entity’s 

objectives in running a quality charter school program under 

this section and how the objectives of the program will be carried out, including a description— 

(A) of how the entity— 

(i) will support both new charter school startup and 

the expansion and replication of high-quality charter 

school models; 

(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 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; 

and 

(II) receive the commensurate share of Federal 

funds the schools and students are eligible to receive under such programs; 

(iv) in the case in which the 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 entity’s program under 

this section, where applicable; 

(v) will ensure eligible applicants that receive a 

subgrant under the entity’s program are prepared to 

continue to operate the charter schools receiving the 

subgrant funds once the funds have expired; 

(vi) will support charter schools in local educational 

agencies with large numbers of schools that must comply with the requirements of section 1116(b); 

(vii) will work with charter schools to promote inclusion of all students and support all students once they 

are enrolled to promote retention; 

(viii) will work with charter schools on recruitment 

practices, including efforts to engage groups that may 

otherwise have limited opportunities to participate in 

charter schools; 


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(ix) will share best and promising practices between 

charter schools and other public schools; 

(x) will ensure the charter schools they support can 

meet the educational needs of their students, including 

students with disabilities and English language learners; and 

(xi) will support efforts to increase quality initiatives, 

including meeting the quality authorizing elements described in paragraph (2)(E); (B) of the extent to which the 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 and replicable, high-quality charter school 

models, and expanding high-quality charter schools; (C) how the 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; 

and 

(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, and how a 

school’s performance on the State’s academic accountability system will be a primary factor for renewal; and 

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

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

organization to carry out the entity’s quality charter school 

program, in whole or in part, of the roles and responsibilities of this partner. 

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

the assurances will be met, that— 

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

program will have a high degree of autonomy over budget 

and operations; 

(B) the entity will support charter schools in meeting the 

educational needs of their students as described in paragraph (1)(A)(x); 

(C) the entity will ensure that the authorized public chartering agency of any charter school that receives funds 

under the entity’s program— (i) ensures that the charter school is meeting the obligations under this Act, part B of the Individuals with 

Disabilities Education Act, title VI of the Civil Rights 

Act of 1964, and section 504 of the Rehabilitation Act 

of 1973; and 


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(ii) adequately monitors and helps the schools in recruiting, enrolling, and meeting the needs of all students, including students with disabilities and English 

language learners; (D) the 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) enroll traditionally underserved students, including students with disabilities and English language 

learners, to promote an inclusive education environment; 

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

through providing technical assistance, to support all authorized public chartering agencies in the State to improve 

the monitoring of their charter schools, including by— (i) using annual performance data, which may include graduation rates and student growth data, as 

appropriate, to measure the progress of their schools toward becoming high-quality charter schools; and (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 (F) the entity will work to ensure that charter schools are 

included with the traditional public school system in decision-making about the public school system in the State. (3) REQUESTS FOR WAIVERS.—A request and justification for 

waivers of any Federal statutory or regulatory provisions that 

the entity believes are necessary for the successful operation of 

the charter schools that will receive funds under the 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. 

(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 entity will work to maximize the flexibility provided to charter schools under the 

law; 

(B) the ambitiousness of the 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 proposed number of new charter schools to be 

opened, and the number of high-quality charter schools to 

be replicated or expanded under the program; 

(F) the entity’s plan to— 


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(i) adequately monitor the eligible applicants receiving subgrants under the entity’s program; and 

(ii) work with the authorized public chartering agencies involved to avoid duplication of work for the charter schools and authorized public chartering agencies; 

(G) the entity’s plan to provide adequate technical assistance, as described in the entity’s application under subsection (e), for the eligible applicants receiving subgrants 

under the entity’s program under this section; and 

(H) the entity’s plan to support quality authorizing efforts 

in the State, consistent with the objectives described in subparagraph (B). 

(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 in which a State entity is located in a 

State that allows an entity other than the State educational 

agency to be an authorized public chartering agency or a 

State in which only a local educational agency may be an 

authorized public chartering agency, the State has an appeals process for the denial of an application for a charter 

school. 

(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 supports full-, blended-, or hybridonline charter school models. 

(E) 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. 

(F) 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. 

(G) The State entity demonstrates quality policies and 

practices to support and monitor charter schools through 

factors, including— 

(i) the proportion of high-quality charter schools in 

the State; and 

(ii) the proportion of charter schools enrolling, at a 

rate similar to traditional public schools, traditionally 

underserved students, including students with disabilities and English language learners. 

(g) LOCAL USES OF FUNDS.—An eligible applicant receiving a 

subgrant under this section shall use such funds to open new charter schools or replicable, high-quality charter school models, or expand existing high-quality charter schools. 

(h) REPORTING REQUIREMENTS.—Each State entity receiving a 

grant under this section shall submit to the Secretary, at the end 


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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 and, if applicable, how 

many new students were served during each year of the grant 

period; 

(2) 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 replicable, high-quality charter school 

models; and 

(C) the expansion of high-quality charter schools; 

(3) the progress the entity made toward meeting the priorities 

described in subsection (f)(2), as applicable; 

(4) how the entity met the objectives of the quality charter 

school program described in the entity’s application under subsection (e); 

(5) how the entity complied with, and ensured that eligible 

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

(6) how the entity worked with authorized public chartering 

agencies, including how the agencies worked with the management company or leadership of the schools in which the subgrants were awarded. 

(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; or 

(3) a Governor of a State. 

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 award not less than 3 grants to 

eligible entities that have applications approved under subsection (d) 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.— 

(1) EVALUATION OF APPLICATION.—The Secretary shall evaluate each application submitted under subsection (d), and shall 

determine whether the application is sufficient to merit approval. 

(2) DISTRIBUTION OF GRANTS.—The Secretary shall award at 

least one grant to an eligible entity described in subsection 

(a)(2)(A), at least one grant to an eligible entity described in 

subsection (a)(2)(B), and at least one grant to an eligible entity 

described in subsection (a)(2)(C), if applications are submitted 


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that permit the Secretary to do so without approving an application that is not of sufficient quality 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 government funding used and 

otherwise enhance credit available to charter schools, including how the 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 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 both 

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, including 

predevelopment costs, or the renovation, repair, or alteration of 

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

(f) RESERVE ACCOUNT.— 


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(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 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 low-risk securities. 

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

with such subsection. 

(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, 


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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 being properly used to achieve 

one or more of the purposes described in subsection (f)(1). 


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(3) PROCEDURES.—The provisions of sections 451, 452, and 

458 of the General Education Provisions Act 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. 

(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 reserved 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 perpupil 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 evaluaVerDate Mar 15 2010 21:41 Jul 24, 2011 Jkt 099006 PO 00000 Frm 00066 Fmt 6659 Sfmt 6603 E:\HR\OC\HR178.XXX HR178

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tions, 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 re- quired to participate in a program carried out under this 

subsection. 

(B) STATE LAW.— (i) IN GENERAL.—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.—A State that is required under 

State law to provide its charter schools with access to 

adequate facility space 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 50 percent of such funds to award grants in accordance with subsection (b); and 

(2) use the remainder of such funds to— 

(A) disseminate technical assistance to State entities in 

awarding subgrants under section 5203; (B) disseminate best practices; and 

(C) evaluate the impact of the charter school program, in- cluding 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) ELIGIBLE APPLICANT DEFINED.—For purposes of this subsection, the term ‘‘eligible applicant’’ means an eligible applicant that desires to open a charter school in— 

(A) a State that did not apply for a grant under section 

5203; 


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68 

(B) a State that did not receive a grant under section 

5203; or 

(C) a State that received a grant under section 5203 and 

is in the 4th or 5th year of the grant period for such grant. (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 ¿section 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: 

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

public school that— 

(A) * * * 

* * * * * * * 

(K) operates in accordance with State law; ¿and

(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 post secondary students. 

* * * * * * * 

(3) ELIGIBLE APPLICANT.—The term ‘‘eligible applicant’’ 

means a developer that has— 

(A) * * * 

(B) provided adequate and timely notice to that authority ¿under section 5203(d)(3) . 

* * * * * * * 

(5) EXPANSION OF A HIGH-QUALITY CHARTER SCHOOL.—The 

term ‘‘expansion of a high-quality charter school’’ means a highquality charter school that either significantly increases its enrollment or adds one or more grades to its school. 

(6) 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; 


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69 

(B) has no significant issues in the areas of student safety, financial management, or statutory or regulatory compliance; 

(C) has demonstrated success in significantly increasing 

student academic achievement and attainment for all students served by charter schools; and 

(D) has demonstrated success in increasing student academic achievement for the subgroups of students described 

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

(7) REPLICABLE, HIGH-QUALITY CHARTER SCHOOL MODEL.— 

The term ‘‘replicable, high-quality charter school model’’ means 

a high-quality charter school that will open a new campus 

under an existing charter. 

¿SEC. 5211. AUTHORIZATION OF APPROPRIATIONS. 

¿(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. 

¿(b) RESERVATION.—From the amount appropriated under subsection (a) for each fiscal year, the Secretary shall reserve— 

¿(1) $200,000,000 to carry out this subpart, other than section 5205(b); and 

¿(2) any funds in excess of $200,000,000, that do not exceed 

$300,000,000, to carry out section 5205(b); and 

¿(3)(A) 50 percent of any funds in excess of $300,000,000 to 

carry out this subpart, other than section 5205(b); and 

¿(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 2012 and each of the 5 succeeding fiscal 

years. 

¿Subpart 2—Credit Enhancement Initiatives To 

Assist Charter School Facility Acquisition, Construction, and Renovation 

¿SEC. 5221. PURPOSE. 

¿The 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. 

¿SEC. 5222. GRANTS TO ELIGIBLE ENTITIES. 

¿(a) GRANTS.—The Secretary shall use 100 percent of the amount 

available to carry out this subpart to award not less than three 

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. 

¿(b) GRANTEE SELECTION.— 

¿(1) EVALUATION OF APPLICATION.—The Secretary shall 

evaluate each application submitted under section 5223, and 


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shall determine whether the application is sufficient to merit 

approval. 

¿(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. 

¿(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. 

¿(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). 

¿SEC. 5223. APPLICATIONS. 

¿(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. 

¿(b) CONTENTS.—An application submitted under subsection (a) 

shall contain— 

¿(1) a statement identifying the activities proposed to be undertaken with funds received under this 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; 

¿(2) a description of the involvement of charter schools in the 

application’s development and the design of the proposed activities; 

¿(3) a description of the eligible entity’s expertise in capital 

market financing; 

¿(4) a description of how the proposed activities will 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; 

¿(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; 

¿(6) in the case of an application submitted by a State governmental entity, a description of the actions that the entity 

has taken, or will take, to ensure that charter schools within 

the State receive the funding the charter schools need to have 

adequate facilities; and 

¿(7) such other information as the Secretary may reasonably 

require. 


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¿SEC. 5224. CHARTER SCHOOL OBJECTIVES. 

¿An 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: 

¿(1) The acquisition (by purchase, lease, donation, or other- wise) 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. 

¿SEC. 5225. RESERVE ACCOUNT. 

¿(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: 

¿(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. 

¿(2) Guaranteeing and insuring leases of personal and real 

property for an objective described in section 5224. 

¿(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. 

¿(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). 

¿(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. 

¿(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. 

¿SEC. 5226. LIMITATION ON ADMINISTRATIVE COSTS. 

¿An 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. 

¿SEC. 5227. AUDITS AND REPORTS. 

¿(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 acVerDate Mar 15 2010 21:41 Jul 24, 2011 Jkt 099006 PO 00000 Frm 00071 Fmt 6659 Sfmt 6601 E:\HR\OC\HR178.XXX HR178

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counting principles and shall be subject to an annual audit by an 

independent public accountant. 

¿(b) REPORTS.— 

¿(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. 

¿(2) CONTENTS.—Each annual report submitted under paragraph (1) shall include— 

¿(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; 

¿(B) a copy of any report made on an audit of the financial records of the eligible entity that was conducted under 

subsection (a) during the reporting period; 

¿(C) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under this 

subpart in leveraging private funds; 

¿(D) a listing and description of the charter schools 

served during the reporting period; 

¿(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 

¿(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. 

¿(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. 

¿SEC. 5228. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS. 

¿No 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. 

¿SEC. 5229. RECOVERY OF FUNDS. 

¿(a) IN GENERAL.—The Secretary, in accordance with chapter 37 

of title 31, United States Code, shall collect— 

¿(1) all of the funds in a reserve account established by an 

eligible entity under section 5225(a) if the Secretary determines, not earlier than 2 years after the date on which the eligible 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 

¿(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). 


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73 

¿(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). 

¿(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). 

¿(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. 

¿SEC. 5230. DEFINITIONS. 

¿In this subpart: 

¿(1) CHARTER SCHOOL.—The term ‘‘charter school’’ has the 

meaning given such term in section 5210. 

¿(2) ELIGIBLE ENTITY.—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). 

¿SEC. 5231. AUTHORIZATION OF APPROPRIATIONS. 

¿For 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.

* * * * * * * 


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(74) 

1Miron, G., Urschel, J. L., Mathis, W, J., & Tornquist, E. (2010). Schools without Diversity: 

Education Management Organizations, Charter Schools and the Demographic Stratification of 

the American School System. Boulder and Tempe: Education and the Public Interest Center & 

Education Policy Research Unit. Available from http://epicpolicy.org/publication/schools-without-diversity 2Miron, G., Urschel, J.L., & Saxton, N. (2011). What makes KIPP work? A study of student 

characteristics, attrition, and school finance. New York, NY: National Center for the Study of 

Privatization in Education, Teachers College, Columbia University: http://ncspe.org/publications files/OP195 3.pdf; O’Brien, T., Hupfeld, K., & Teske, P. (2008). Challenges and Charter 

Schools: How Families with Special-Needs Students Perceive and Use Charter School Options. 

Seattle, WA: National Charter Research Project at the Center on Reinventing Public Education, 

University of Washington 3 U.S. Department of Education. (2010) Supporting Charter School Excellence Through Quality Authorizing: http://www.charterschoolcenter.orgresource/supporting-charter-school-excellence-through-quality-authorizing0 4Testimony of Gary Miron. (2011). Education Reforms: Exploring the Vital Role of Charter 

Schools. Washington, DC. 

ADDITIONAL VIEWS 

I appreciate the bipartisan efforts of the Committee to work together on the Empowering Parents through Quality Charter School 

Act (H.R. 2118). However, I have strong concerns that H.R. 2218 

does not do nearly enough to advance our goal of providing equal, 

high-quality education for all students. 

For example, I believe this legislation failed to adequately address serving students with disabilities and language barriers, 

proper oversight and monitoring, increased transparency and disclosure, as well as understanding funding streams that function 

within the charter school program. 

I am troubled by the research that shows only a very small proportion of charter schools have similar demographic compositions 

as the local districts they serve.1 Additionally, I am concerned of 

increasing reports that charter schools are using tests as a condition of admissions, placement, or grade promotion tests, which 

have implications for the access and persistence of certain types of 

students, especially students with disabilities and English language learners.2

Further, as charter schools become a more prominent component 

of the public school system, and in the context of the accountability 

provisions under No Child Left Behind, the effectiveness of the 

public chartering agencies (authorizers) that license, monitor and 

evaluate charter schools has become increasingly important. Nevertheless, many authorizers lack oversight and resources. Charter 

contracts are often vague, incomplete and not based in measurable 

outcomes.3

Finally, charter schools have veered away from their original 

purpose and are primarily serving to divide limited public resources across parallel systems that perform at similar levels and 

suffer from similar breaches in accountability.4 Many states allow 

private schools to convert to public charter schools, and the proporVerDate Mar 15 2010 21:41 Jul 24, 2011 Jkt 099006 PO 00000 Frm 00074 Fmt 6604 Sfmt 6604 E:\HR\OC\HR178.XXX HR178

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tion of charter schools operated by a private management organization is increasing. 

I believe more must be done to ensure charter schools operate as 

part of the public school system and support district wide collaborative approaches that improve educational options for all students. 

In conclusion, I believe that the role of the federal government 

is to ensure that all public school students have equal access to 

high-quality education and H.R. 2118 falls short of that goal. 

JOHN F. TIERNEY. 

fi 


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