II 

112TH CONGRESS 

1ST SESSION S. 1566 

To amend the Elementary and Secondary Education Act of 1965 regarding 

public charter schools. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 15, 2011 

Mr. KIRK (for himself, Mr. ALEXANDER, Mr. BURR, Mr. ISAKSON, Mr. 

MCCAIN, Mr. ROBERTS, Mr. RUBIO, and Mr. WICKER) introduced the 

following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

A BILL 

To amend the Elementary and Secondary Education Act 

of 1965 regarding public charter schools. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Empowering Parents 

5 through Quality Charter Schools Act’’. 

6 SEC. 2. REFERENCES. 

7 Except as otherwise specifically provided, whenever in 

8 this Act a section or other provision is amended or re9 pealed, such amendment or repeal shall be considered to 

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1 be made to that section or other provision of the Elemen2 tary and Secondary Education Act of 1965 (20 U.S.C. 

3 6301 et seq.). 

4 SEC. 3. PURPOSE. 

5 Section 5201 (20 U.S.C. 7221) is amended to read 

6 as follows: 

7 ‘‘SEC. 5201. PURPOSE. 

8 ‘‘It is the purpose of this subpart to— 

9 ‘‘(1) provide financial assistance for the plan10 ning, program design, and initial implementation of 

11 charter schools; 

12 ‘‘(2) expand the number of high-quality charter 

13 schools available to students across the Nation; 

14 ‘‘(3) evaluate the impact of such schools on stu15 dent achievement, families, and communities, and 

16 share best practices between charter schools and 

17 other public schools; 

18 ‘‘(4) encourage States to provide support to 

19 charter schools for facilities financing in an amount 

20 more nearly commensurate to the amount the States 

21 have typically provided for traditional public schools; 

22 ‘‘(5) improve student services to increase oppor23 tunities for students who are children with disabil24 ities, English language learners, and other tradition25 ally underserved students to attend charter schools 

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1 and meet challenging State academic achievement 

2 standards; and 

3 ‘‘(6) support efforts to strengthen the charter 

4 school authorizing process to improve performance 

5 management, including transparency, monitoring, 

6 and evaluation of such schools.’’. 

7 SEC. 4. PROGRAM AUTHORIZED. 

8 Section 5202 (20 U.S.C. 7221a) is amended to read 

9 as follows: 

10 ‘‘SEC. 5202. PROGRAM AUTHORIZED. 

11 ‘‘(a) IN GENERAL.—The Secretary is authorized to 

12 carry out a charter school program that supports charter 

13 schools that serve elementary school and secondary school 

14 students by— 

15 ‘‘(1) supporting the startup, replication, and ex16 pansion of charter schools; 

17 ‘‘(2) assisting charter schools in accessing cred18 it to acquire and renovate facilities for school use; 

19 and 

20 ‘‘(3) carrying out national activities to sup21 port— 

22 ‘‘(A) charter school development; 

23 ‘‘(B) the dissemination of best practices of 

24 charter schools for all schools; and 

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1 ‘‘(C) the evaluation of the impact of the 

2 program on schools participating in the pro3 gram. 

4 ‘‘(b) FUNDING ALLOTMENT.—From the amount 

5 made available under section 5211 for a fiscal year, the 

6 Secretary shall— 

7 ‘‘(1) reserve 15 percent to support charter 

8 school facilities assistance under section 5204; 

9 ‘‘(2) reserve not more than 5 percent to carry 

10 out national activities under section 5205; and 

11 ‘‘(3) use the remaining amount after the Sec12 retary reserves funds under paragraphs (1) and (2) 

13 to carry out section 5203. 

14 ‘‘(c) PRIOR GRANTS AND SUBGRANTS.—The recipi15 ent of a grant or subgrant under this subpart, as such 

16 subpart was in effect on the day before the date of enact17 ment of the Empowering Parents through Quality Charter 

18 Schools Act, shall continue to receive funds in accordance 

19 with the terms and conditions of such grant or subgrant.’’. 

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

21 SCHOOLS. 

22 Section 5203 (20 U.S.C. 7221b) is amended to read 

23 as follows: 

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

2 SCHOOLS. 

3 ‘‘(a) DEFINITIONS.—In this section: 

4 ‘‘(1) CHARTER MANAGEMENT ORGANIZATION.— 

5 The term ‘charter management organization’ means 

6 a nonprofit organization that operates, manages, or 

7 oversees multiple charter schools by centralizing or 

8 sharing certain functions and resources among 

9 schools, or a group or consortium of such organiza10 tions. 

11 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en12 tity’ means— 

13 ‘‘(A) a State entity; 

14 ‘‘(B) an authorized public chartering agen15 cy; 

16 ‘‘(C) a local educational agency; or 

17 ‘‘(D) a charter management organization. 

18 ‘‘(3) STATE ENTITY.—The term ‘State entity’ 

19 means— 

20 ‘‘(A) a State educational agency; 

21 ‘‘(B) a State charter school board; or 

22 ‘‘(C) a Governor of a State. 

23 ‘‘(b) PROGRAM AUTHORIZED.—From the amount re24 served under section 5202(b)(3), the Secretary shall 

25 award grants, on a competitive basis, to eligible entities 

26 to enable— 

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1 ‘‘(1) eligible entities described in subparagraph 

2 (A), (B), or (C) of subsection (a)(2) to— 

3 ‘‘(A) award subgrants to eligible appli4 cants— 

5 ‘‘(i) to open new charter schools; 

6 ‘‘(ii) to open replicable, high-quality 

7 charter school models; or 

8 ‘‘(iii) to expand high-quality charter 

9 schools; and 

10 ‘‘(B) provide technical assistance to eligible 

11 applicants and authorized public chartering 

12 agencies in carrying out the activities described 

13 in subparagraph (A) and work with authorized 

14 public chartering agencies in the State to im15 prove authorizing quality; or 

16 ‘‘(2) eligible entities described in subparagraph 

17 (B), (C), or (D) of subsection (a)(2) to open new 

18 charter schools or replicable high-quality charter 

19 school models or to expand high-quality charter 

20 schools. 

21 ‘‘(c) USES OF FUNDS.— 

22 ‘‘(1) SPECIAL RULE FOR SUBGRANTING ENTI23 TIES.—An eligible entity receiving a grant under 

24 subsection (b)(1) shall— 

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1 ‘‘(A) use 90 percent of the grant funds to 

2 carry out subsection (b)(1)(A), in accordance 

3 with the quality charter school program de4 scribed in the entity’s application approved pur5 suant to subsection (g); and 

6 ‘‘(B) reserve 10 percent of such funds to 

7 carry out the activities described in subsection 

8 (b)(1)(B), of which not more than 30 percent 

9 may be used for administrative costs which may 

10 include technical assistance. 

11 ‘‘(2) CONTRACTS AND GRANTS.—An eligible en12 tity may use a grant received under this section to 

13 carry out the activities described in subsection (b) 

14 directly or through grants, contracts, or cooperative 

15 agreements. 

16 ‘‘(d) PROGRAM PERIODS; PEER REVIEW; DIVERSITY

17 OF PROJECTS.— 

18 ‘‘(1) PROGRAM PERIODS.— 

19 ‘‘(A) GRANTS.—A grant awarded by the 

20 Secretary to an eligible entity under this section 

21 shall be for a period of 5 years. 

22 ‘‘(B) SUBGRANTS.—A subgrant awarded 

23 by an eligible entity under this section shall be 

24 for a period of not more than 5 years, of which 

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1 an eligible applicant may use not more than 18 

2 months for planning and program design. 

3 ‘‘(2) PEER REVIEW.—The Secretary, and each 

4 eligible entity awarding subgrants under this section, 

5 shall use a peer review process to review applications 

6 for assistance under this section. 

7 ‘‘(3) DIVERSITY OF PROJECTS.—Each eligible 

8 entity awarding subgrants under this section shall 

9 award subgrants in a manner that, to the extent 

10 practicable and applicable, ensures that such sub11 grants— 

12 ‘‘(A) are distributed throughout different 

13 areas, including urban, suburban, and rural 

14 areas; and 

15 ‘‘(B) will assist charter schools rep16 resenting a variety of educational approaches. 

17 ‘‘(e) LIMITATIONS.— 

18 ‘‘(1) GRANTS.—An eligible entity may not re19 ceive more than 1 grant under this section for a 5- 

20 year period, unless the eligible entity demonstrates 

21 to the Secretary that, for each charter school sup22 ported under the first grant, the education results, 

23 in the areas described in subparagraphs (A) and (D) 

24 of section 5210(6), for the students enrolled in the 

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1 charter school have improved for not less than 3 

2 consecutive years during the grant period. 

3 ‘‘(2) SUBGRANTS.—An eligible applicant may 

4 not receive more than 1 subgrant under this section 

5 per charter school for a 5-year period. 

6 ‘‘(f) APPLICATIONS.—An eligible entity desiring to 

7 receive a grant under this section shall submit an applica8 tion to the Secretary at such time and in such manner 

9 as the Secretary may require. The application shall include 

10 the following: 

11 ‘‘(1) A description of the entity’s objectives in 

12 running a quality charter school program under this 

13 section and how the objectives of the program will 

14 be carried out, including— 

15 ‘‘(A) a description of how the entity will— 

16 ‘‘(i) support both new charter school 

17 startup and the expansion and replication 

18 of high-quality charter school models; 

19 ‘‘(ii) will work with charter schools to 

20 promote inclusion of all students and sup21 port all students once they are enrolled to 

22 promote retention; 

23 ‘‘(iii) will work with charter schools on 

24 recruitment practices, including efforts to 

25 engage groups that may otherwise have 

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1 limited opportunities to participate in char2 ter schools; 

3 ‘‘(iv) will share best and promising 

4 practices between charter schools and 

5 other public schools; 

6 ‘‘(v) will ensure the charter schools 

7 the eligible entity supports can meet the 

8 educational needs of their students, includ9 ing students who are children with disabil10 ities and English language learners; and 

11 ‘‘(vi) will support efforts to increase 

12 quality initiatives, including meeting the 

13 quality authorizing elements described in 

14 paragraph (2)(D)(ii); 

15 ‘‘(B) in the case of any eligible entity that 

16 will be awarding subgrants under subsection 

17 (b)(1)(A), a description of how the entity— 

18 ‘‘(i) will inform eligible charter 

19 schools, developers, authorized public char20 tering agencies, and other entities of the 

21 availability of funds under the program; 

22 ‘‘(ii) will work with eligible applicants 

23 to ensure that the applicants access all 

24 Federal funds that they are eligible to re25 ceive, and help the charter schools supmstockstill on DSK4VPTVN1PROD with BILLS

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1 ported by the applicants and the students 

2 attending the charter schools— 

3 ‘‘(I) participate in the Federal 

4 programs in which the schools and 

5 students are eligible to participate; 

6 and 

7 ‘‘(II) receive the commensurate 

8 share of Federal funds the schools 

9 and students are eligible to receive 

10 under such programs; 

11 ‘‘(iii) will ensure eligible applicants 

12 that receive a subgrant under the entity’s 

13 program are prepared to continue to oper14 ate the charter schools receiving the 

15 subgrant funds once the funds have ex16 pired; 

17 ‘‘(iv) will support charter schools in 

18 local educational agencies with large num19 bers of schools that are required to comply 

20 with the requirements of section 1116(b); 

21 and 

22 ‘‘(v) will carry out the subgrant com23 petition, including— 

24 ‘‘(I) a description of the applica25 tion each eligible applicant desiring to 

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1 receive a subgrant will submit, which 

2 application shall include— 

3 ‘‘(aa) a description of the 

4 roles and responsibilities of eligi5 ble applicants, partner organiza6 tions, and management organiza7 tions, including the administra8 tive and contractual roles and re9 sponsibilities; and 

10 ‘‘(bb) a description of the 

11 quality controls agreed to be12 tween the eligible applicant and 

13 the authorized public chartering 

14 agency involved, such as a con15 tract or performance agreement, 

16 and how a school’s performance 

17 on the State’s academic account18 ability system will be a primary 

19 factor for renewal; and 

20 ‘‘(II) a description of how the en21 tity will review applications; 

22 ‘‘(C) except in the case of an eligible entity 

23 described in subsection (a)(3)(A), a description 

24 of how the entity— 

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1 ‘‘(i) will work with the State edu2 cational agency and the charter schools in 

3 the State to maximize charter school par4 ticipation in Federal and State programs 

5 for charter schools; and 

6 ‘‘(ii) will work with the State edu7 cational agency to adequately operate the 

8 entity’s program under this section, where 

9 applicable; 

10 ‘‘(D) in the case of an eligible entity that 

11 is a State entity, a description of the extent to 

12 which the entity— 

13 ‘‘(i) is able to meet and carry out the 

14 priorities described in subsection (g)(2); 

15 and 

16 ‘‘(ii) is working to develop or 

17 strengthen a cohesive statewide system to 

18 support the opening of new charter schools 

19 and replicable, high-quality charter school 

20 models, and expanding high-quality charter 

21 schools; and 

22 ‘‘(E) in the case of an entity that partners 

23 with an outside organization to carry out the 

24 entity’s quality charter school program, in 

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1 whole or in part, of the roles and responsibil2 ities of this partner. 

3 ‘‘(2) Assurances, including a description of how 

4 the assurances will be met, that— 

5 ‘‘(A) the eligible entity, if awarding sub6 grants, will— 

7 ‘‘(i) consider applications from eligible 

8 charter schools, authorized public char9 tering agencies, charter management orga10 nizations, and other entities as applicable 

11 under State law; and 

12 ‘‘(ii) provide adequate technical assist13 ance to eligible applicants to— 

14 ‘‘(I) meet the objectives described 

15 in clauses (ii) and (iii) of paragraph 

16 (1)(A) and subparagraph (B); and 

17 ‘‘(II) enroll traditionally under18 served students, including students 

19 who are children with disabilities and 

20 English language learners, to promote 

21 an inclusive education environment; 

22 ‘‘(B) each charter school receiving funds 

23 under the entity’s program will have a high de24 gree of autonomy over budget and operations; 

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1 ‘‘(C) the entity will support charter schools 

2 in meeting the educational needs of their stu3 dents as described in paragraph (1)(A)(v); 

4 ‘‘(D) in the case of an eligible entity that 

5 is a State entity— 

6 ‘‘(i) the entity will ensure that the au7 thorized public chartering agency of any 

8 charter school that receives funds under 

9 the entity’s program— 

10 ‘‘(I) ensures that the charter 

11 school is meeting the obligations 

12 under this Act, part B of the Individ13 uals with Disabilities Education Act, 

14 title VI of the Civil Rights Act of 

15 1964, and section 504 of the Rehabili16 tation Act of 1973; and 

17 ‘‘(II) adequately monitors and 

18 helps the schools in recruiting, enroll19 ing, and meeting the needs of all stu20 dents, including students who are chil21 dren with disabilities and English lan22 guage learners; and 

23 ‘‘(ii) the entity will promote quality 

24 authorizing, such as through providing 

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1 ized public chartering agencies in the State 

2 to improve the monitoring of their charter 

3 schools, including by— 

4 ‘‘(I) using annual performance 

5 data, which may include graduation 

6 rates and student growth data, as ap7 propriate, to measure the progress of 

8 their schools toward becoming high9 quality charter schools; and 

10 ‘‘(II) reviewing the schools’ inde11 pendent, annual audits of financial 

12 statements conducted in accordance 

13 with generally accepted accounting 

14 principles, and ensuring any such au15 dits are publically reported. 

16 ‘‘(3) A request and justification for waivers of 

17 any Federal statutory or regulatory provisions that 

18 the entity believes are necessary for the successful 

19 operation of the charter schools that will receive 

20 funds under the entity’s program under this section, 

21 and a description of any State or local rules, gen22 erally applicable to public schools, that will be 

23 waived, or otherwise not apply to such schools. 

24 ‘‘(g) SELECTION CRITERIA; PRIORITY.— 

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1 ‘‘(1) SELECTION CRITERIA.—The Secretary 

2 shall award grants to eligible entities under this sec3 tion on the basis of the quality of the applications 

4 submitted under subsection (f), after taking into 

5 consideration— 

6 ‘‘(A) the degree of flexibility afforded by 

7 the State’s public charter school law and, in the 

8 case of an eligible entity described in subsection 

9 (a)(2)(A), how the entity will work to maximize 

10 the flexibility provided to charter schools under 

11 the law; 

12 ‘‘(B) the quality of the strategy for assess13 ing achievement of the entity’s objectives under 

14 subsection (f)(1); 

15 ‘‘(C) the likelihood that the eligible entity, 

16 and any eligible applicants receiving subgrants 

17 from the eligible entity, will meet those objec18 tives and improve educational results for stu19 dents; 

20 ‘‘(D) the proposed number of new charter 

21 schools to be opened, and the number of high22 quality charter schools to be replicated or ex23 panded under the program; 

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1 ‘‘(E) in the case of an eligible entity 

2 awarding subgrants under subsection (b)(1)(A), 

3 the entity’s plan to— 

4 ‘‘(i) adequately monitor the eligible 

5 applicants receiving subgrants under the 

6 entity’s program; 

7 ‘‘(ii) work with the authorized public 

8 chartering agencies involved to avoid dupli9 cation of work for the charter schools and 

10 authorized public chartering agencies; and 

11 ‘‘(iii) provide adequate technical as12 sistance, as described in the entity’s appli13 cation under subsection (f), for the eligible 

14 applicants receiving subgrants under the 

15 entity’s program; and 

16 ‘‘(F) the entity’s plan to support quality 

17 authorizing efforts in the State, consistent with 

18 the objectives under subsection (f)(1). 

19 ‘‘(2) PRIORITY.—In selecting State entities to 

20 receive a portion of the grants awarded under this 

21 section, the Secretary shall give priority to State en22 tities to the extent that they meet the following cri23 teria: 

24 ‘‘(A) In the case in which a State entity is 

25 located in a State that allows an entity other 

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1 than the State educational agency to be an au2 thorized public chartering agency or a State in 

3 which only a local educational agency may be 

4 an authorized public chartering agency, the 

5 State has an appeals process for the denial of 

6 an application for a charter school. 

7 ‘‘(B) The State entity is located in a State 

8 that ensures equitable financing, as compared 

9 to traditional public schools, for charter schools 

10 and students in a prompt manner. 

11 ‘‘(C) The State entity is located in a State 

12 that uses charter schools and best practices 

13 from charter schools to help improve struggling 

14 schools and local educational agencies. 

15 ‘‘(D) The State entity partners with an or16 ganization that has a demonstrated record of 

17 success in developing management organiza18 tions to support the development of charter 

19 schools in the State. 

20 ‘‘(E) The State entity supports charter 

21 schools that support at-risk students through 

22 activities such as dropout prevention or dropout 

23 recovery. 

24 ‘‘(h) LOCAL USES OF FUNDS.—An eligible applicant 

25 receiving a subgrant under this section shall use such 

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1 funds to open new charter schools or replicable, high-qual2 ity charter school models, or expand existing high-quality 

3 charter schools. 

4 ‘‘(i) REPORTING REQUIREMENTS.—Each eligible en5 tity receiving a grant under this section shall submit to 

6 the Secretary, at the end of the third year of the 5-year 

7 grant period and at the end of such grant period, a report 

8 on— 

9 ‘‘(1) the number of students served and, if ap10 plicable, how many new students were served during 

11 each year of the grant period; 

12 ‘‘(2) in the case of an eligible entity awarding 

13 subgrants under subsection (b)(1)(A), the number of 

14 subgrants awarded under this section to carry out 

15 each of the following: 

16 ‘‘(A) the opening of new charter schools; 

17 ‘‘(B) the opening of replicable, high-quality 

18 charter school models; and 

19 ‘‘(C) the expansion of high-quality charter 

20 schools; 

21 ‘‘(3) in the case of an eligible entity receiving 

22 a grant under subsection (b)(2), the number of new 

23 charter schools opened, the number of replicable 

24 high-quality charter school models opened, and the 

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1 number of high-quality charter schools expanded 

2 under the grant; 

3 ‘‘(4) in the case of a State entity, the progress 

4 the State entity made toward meeting the priorities 

5 described in subsection (g)(2), as applicable; 

6 ‘‘(5) how the entity met the objectives of the 

7 quality charter school program described in the enti8 ty’s application under subsection (f); 

9 ‘‘(6) how the entity complied with, and, if appli10 cable, ensured that eligible applicants complied with, 

11 the assurances described in the entity’s application; 

12 and 

13 ‘‘(7) how the entity worked with authorized 

14 public chartering agencies, including how the agen15 cies worked with the management company or lead16 ership of the schools in which the subgrants were 

17 awarded, if applicable.’’. 

18 SEC. 6. FACILITIES FINANCING ASSISTANCE. 

19 Section 5204 (20 U.S.C. 7221c) is amended to read 

20 as follows: 

21 ‘‘SEC. 5204. FACILITIES FINANCING ASSISTANCE. 

22 ‘‘(a) GRANTS TO ELIGIBLE ENTITIES.— 

23 ‘‘(1) IN GENERAL.—From the amount reserved 

24 under section 5202(b)(1), the Secretary shall award 

25 not less than 3 grants to eligible entities that have 

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1 applications approved under subsection (d) to dem2 onstrate innovative methods of assisting charter 

3 schools to address the cost of acquiring, con4 structing, and renovating facilities by enhancing the 

5 availability of loans or bond financing. 

6 ‘‘(2) ELIGIBLE ENTITY DEFINED.—For pur7 poses of this section, the term ‘eligible entity’ 

8 means— 

9 ‘‘(A) a public entity, such as a State or 

10 local governmental entity; 

11 ‘‘(B) a private nonprofit entity; or 

12 ‘‘(C) a consortium of entities described in 

13 subparagraphs (A) and (B). 

14 ‘‘(b) GRANTEE SELECTION.— 

15 ‘‘(1) EVALUATION OF APPLICATION.—The Sec16 retary shall evaluate each application submitted 

17 under subsection (d), and shall determine whether 

18 the application is sufficient to merit approval. 

19 ‘‘(2) DISTRIBUTION OF GRANTS.—The Sec20 retary shall award not less than one grant to an eli21 gible entity described in subsection (a)(2)(A), not 

22 less than one grant to an eligible entity described in 

23 subsection (a)(2)(B), and not less than one grant to 

24 an eligible entity described in subsection (a)(2)(C), 

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1 retary to do so without approving an application 

2 that is not of sufficient quality to merit approval. 

3 ‘‘(c) GRANT CHARACTERISTICS.—Grants under sub4 section (a) shall be of a sufficient size, scope, and quality 

5 so as to ensure an effective demonstration of an innovative 

6 means of enhancing credit for the financing of charter 

7 school acquisition, construction, or renovation. 

8 ‘‘(d) APPLICATIONS.— 

9 ‘‘(1) IN GENERAL.—To receive a grant under 

10 subsection (a), an eligible entity shall submit to the 

11 Secretary an application in such form as the Sec12 retary may reasonably require. 

13 ‘‘(2) CONTENTS.—An application submitted 

14 under paragraph (1) shall contain— 

15 ‘‘(A) a statement identifying the activities 

16 proposed to be undertaken with funds received 

17 under subsection (a), including how the eligible 

18 entity will determine which charter schools will 

19 receive assistance, and how much and what 

20 types of assistance charter schools will receive; 

21 ‘‘(B) a description of the involvement of 

22 charter schools in the application’s development 

23 and the design of the proposed activities; 

24 ‘‘(C) a description of the eligible entity’s 

25 expertise in capital market financing; 

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1 ‘‘(D) a description of how the proposed ac2 tivities will leverage the maximum amount of 

3 private-sector financing capital relative to the 

4 amount of government funding used and other5 wise enhance credit available to charter schools, 

6 including how the entity will offer a combina7 tion of rates and terms more favorable than the 

8 rates and terms that a charter school could re9 ceive without assistance from the entity under 

10 this section; 

11 ‘‘(E) a description of how the eligible enti12 ty possesses sufficient expertise in education to 

13 evaluate the likelihood of success of a charter 

14 school program for which facilities financing is 

15 sought; and 

16 ‘‘(F) in the case of an application sub17 mitted by a State governmental entity, a de18 scription of the actions that the entity has 

19 taken, or will take, to ensure that charter 

20 schools within the State receive the funding the 

21 charter schools need to have adequate facilities. 

22 ‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible 

23 entity receiving a grant under this section shall use the 

24 funds deposited in the reserve account established under 

25 subsection (f) to assist one or more charter schools to acmstockstill on DSK4VPTVN1PROD with BILLS

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1 cess private sector capital to accomplish one or both of 

2 the following objectives: 

3 ‘‘(1) The acquisition (by purchase, lease, dona4 tion, or otherwise) of an interest (including an inter5 est held by a third party for the benefit of a charter 

6 school) in improved or unimproved real property 

7 that is necessary to commence or continue the oper8 ation of a charter school. 

9 ‘‘(2) The construction of new facilities, includ10 ing predevelopment costs, or the renovation, repair, 

11 or alteration of existing facilities, necessary to com12 mence or continue the operation of a charter school. 

13 ‘‘(f) RESERVE ACCOUNT.— 

14 ‘‘(1) USE OF FUNDS.—To assist charter schools 

15 to accomplish the objectives described in subsection 

16 (e), an eligible entity receiving a grant under sub17 section (a) shall, in accordance with State and local 

18 law, directly or indirectly, alone or in collaboration 

19 with others, deposit the funds received under sub20 section (a) (other than funds used for administrative 

21 costs in accordance with subsection (g)) in a reserve 

22 account established and maintained by the eligible 

23 entity for this purpose. Amounts deposited in such 

24 account shall be used by the eligible entity for one 

25 or more of the following purposes: 

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1 ‘‘(A) Guaranteeing, insuring, and rein2 suring bonds, notes, evidences of debt, loans, 

3 and interests therein, the proceeds of which are 

4 used for an objective described in subsection 

5 (e). 

6 ‘‘(B) Guaranteeing and insuring leases of 

7 personal and real property for an objective de8 scribed in subsection (e). 

9 ‘‘(C) Facilitating financing by identifying 

10 potential lending sources, encouraging private 

11 lending, and other similar activities that di12 rectly promote lending to, or for the benefit of, 

13 charter schools. 

14 ‘‘(D) Facilitating the issuance of bonds by 

15 charter schools, or by other public entities for 

16 the benefit of charter schools, by providing 

17 technical, administrative, and other appropriate 

18 assistance (including the recruitment of bond 

19 counsel, underwriters, and potential investors 

20 and the consolidation of multiple charter school 

21 projects within a single bond issue). 

22 ‘‘(2) INVESTMENT.—Funds received under this 

23 section and deposited in the reserve account estab24 lished under paragraph (1) shall be invested in oblimstockstill on DSK4VPTVN1PROD with BILLS

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1 gations issued or guaranteed by the United States or 

2 a State, or in other similarly low-risk securities. 

3 ‘‘(3) REINVESTMENT OF EARNINGS.—Any earn4 ings on funds received under subsection (a) shall be 

5 deposited in the reserve account established under 

6 paragraph (1) and used in accordance with such 

7 subsection. 

8 ‘‘(g) LIMITATION ON ADMINISTRATIVE COSTS.—An 

9 eligible entity may use not more than 2.5 percent of the 

10 funds received under subsection (a) for the administrative 

11 costs of carrying out its responsibilities under this section 

12 (excluding subsection (k)). 

13 ‘‘(h) AUDITS AND REPORTS.— 

14 ‘‘(1) FINANCIAL RECORD MAINTENANCE AND

15 AUDIT.—The financial records of each eligible entity 

16 receiving a grant under subsection (a) shall be main17 tained in accordance with generally accepted ac18 counting principles and shall be subject to an annual 

19 audit by an independent public accountant. 

20 ‘‘(2) REPORTS.— 

21 ‘‘(A) GRANTEE ANNUAL REPORTS.—Each 

22 eligible entity receiving a grant under sub23 section (a) annually shall submit to the Sec24 retary a report of its operations and activities 

25 under this section. 

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1 ‘‘(B) CONTENTS.—Each annual report 

2 submitted under subparagraph (A) shall in3 clude— 

4 ‘‘(i) a copy of the most recent finan5 cial statements, and any accompanying 

6 opinion on such statements, prepared by 

7 the independent public accountant review8 ing the financial records of the eligible en9 tity; 

10 ‘‘(ii) a copy of any report made on an 

11 audit of the financial records of the eligible 

12 entity that was conducted under paragraph 

13 (1) during the reporting period; 

14 ‘‘(iii) an evaluation by the eligible en15 tity of the effectiveness of its use of the 

16 Federal funds provided under subsection 

17 (a) in leveraging private funds; 

18 ‘‘(iv) a listing and description of the 

19 charter schools served during the reporting 

20 period, including the amount of funds used 

21 by each school, the type of project facili22 tated by the grant, and the type of assist23 ance provided to the charter schools; 

24 ‘‘(v) a description of the activities car25 ried out by the eligible entity to assist 

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1 charter schools in meeting the objectives 

2 set forth in subsection (e); and 

3 ‘‘(vi) a description of the characteris4 tics of lenders and other financial institu5 tions participating in the activities under6 taken by the eligible entity under this sec7 tion (excluding subsection (k)) during the 

8 reporting period. 

9 ‘‘(C) SECRETARIAL REPORT.—The Sec10 retary shall review the reports submitted under 

11 subparagraph (A) and shall provide a com12 prehensive annual report to Congress on the ac13 tivities conducted under this section (excluding 

14 subsection (k)). 

15 ‘‘(i) NO FULL FAITH AND CREDIT FOR GRANTEE

16 OBLIGATION.—No financial obligation of an eligible entity 

17 entered into pursuant to this section (such as an obliga18 tion under a guarantee, bond, note, evidence of debt, or 

19 loan) shall be an obligation of, or guaranteed in any re20 spect by, the United States. The full faith and credit of 

21 the United States is not pledged to the payment of funds 

22 which may be required to be paid under any obligation 

23 made by an eligible entity pursuant to any provision of 

24 this section. 

25 ‘‘(j) RECOVERY OF FUNDS.— 

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1 ‘‘(1) IN GENERAL.—The Secretary, in accord2 ance with chapter 37 of title 31, United States 

3 Code, shall collect— 

4 ‘‘(A) all of the funds in a reserve account 

5 established by an eligible entity under sub6 section (f)(1) if the Secretary determines, not 

7 earlier than 2 years after the date on which the 

8 eligible entity first received funds under this 

9 section (excluding subsection (k)), that the eli10 gible entity has failed to make substantial 

11 progress in carrying out the purposes described 

12 in such subsection; or 

13 ‘‘(B) all or a portion of the funds in a re14 serve account established by an eligible entity 

15 under subsection (f)(1) if the Secretary deter16 mines that the eligible entity has permanently 

17 ceased to use all or a portion of the funds in 

18 such account to accomplish any purpose de19 scribed in such subsection. 

20 ‘‘(2) EXERCISE OF AUTHORITY.—The Secretary 

21 shall not exercise the authority provided in para22 graph (1) to collect from any eligible entity any 

23 funds that are being properly used to achieve one or 

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

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1 ‘‘(3) PROCEDURES.—The provisions of sections 

2 451, 452, and 458 of the General Education Provi3 sions Act shall apply to the recovery of funds under 

4 paragraph (1). 

5 ‘‘(4) CONSTRUCTION.—This subsection shall 

6 not be construed to impair or affect the authority of 

7 the Secretary to recover funds under part D of the 

8 General Education Provisions Act. 

9 ‘‘(k) PER-PUPIL FACILITIES AID PROGRAM.— 

10 ‘‘(1) DEFINITION OF PER-PUPIL FACILITIES AID

11 PROGRAM.—In this subsection, the term ‘per-pupil 

12 facilities aid program’ means a program in which a 

13 State makes payments, on a per-pupil basis, to char14 ter schools to provide the schools with financing— 

15 ‘‘(A) that is dedicated solely for funding 

16 charter school facilities; or 

17 ‘‘(B) a portion of which is dedicated for 

18 funding charter school facilities. 

19 ‘‘(2) GRANTS.— 

20 ‘‘(A) IN GENERAL.—From the amount re21 served under section 5202(b)(1) remaining 

22 after the Secretary makes grants under sub23 section (a), the Secretary shall make grants, on 

24 a competitive basis, to States to pay for the 

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1 hancing, and administering per-pupil facilities 

2 aid programs. 

3 ‘‘(B) PERIOD.—The Secretary shall award 

4 grants under this subsection for periods of not 

5 more than 5 years. 

6 ‘‘(C) FEDERAL SHARE.—The Federal 

7 share of the cost described in subparagraph (A) 

8 for a per-pupil facilities aid program shall be 

9 not more than— 

10 ‘‘(i) 90 percent of the cost, for the 

11 first fiscal year for which the program re12 ceives assistance under this subsection; 

13 ‘‘(ii) 80 percent in the second such 

14 year; 

15 ‘‘(iii) 60 percent in the third such 

16 year; 

17 ‘‘(iv) 40 percent in the fourth such 

18 year; and 

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

20 ‘‘(D) STATE SHARE.—A State receiving a 

21 grant under this subsection may partner with 1 

22 or more organizations to provide up to 50 per23 cent of the State share of the cost of estab24 lishing or enhancing, and administering the per25 pupil facilities aid program. 

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1 ‘‘(E) MULTIPLE GRANTS.—A State may 

2 receive more than 1 grant under this sub3 section, so long as the amount of such funds 

4 provided to charter schools increases with each 

5 successive grant. 

6 ‘‘(3) USE OF FUNDS.— 

7 ‘‘(A) IN GENERAL.—A State that receives 

8 a grant under this subsection shall use the 

9 funds made available through the grant to es10 tablish or enhance, and administer, a per-pupil 

11 facilities aid program for charter schools in the 

12 State of the applicant. 

13 ‘‘(B) EVALUATIONS; TECHNICAL ASSIST14 ANCE; DISSEMINATION.—From the amount 

15 made available to a State through a grant 

16 under this subsection for a fiscal year, the State 

17 may reserve not more than 5 percent to carry 

18 out evaluations, to provide technical assistance, 

19 and to disseminate information. 

20 ‘‘(C) SUPPLEMENT, NOT SUPPLANT.— 

21 Funds made available under this subsection 

22 shall be used to supplement, and not supplant, 

23 State and local public funds expended to pro24 vide per-pupil facilities aid programs, operations 

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1 financing programs, or other programs, for 

2 charter schools. 

3 ‘‘(4) REQUIREMENTS.— 

4 ‘‘(A) VOLUNTARY PARTICIPATION.—No 

5 State may be required to participate in a pro6 gram carried out under this subsection. 

7 ‘‘(B) STATE LAW.— 

8 ‘‘(i) IN GENERAL.—To be eligible to 

9 receive a grant under this subsection, a 

10 State shall establish or enhance, and ad11 minister, a per-pupil facilities aid program 

12 for charter schools in the State, that— 

13 ‘‘(I) is specified in State law; and 

14 ‘‘(II) provides annual financing, 

15 on a per-pupil basis, for charter 

16 school facilities. 

17 ‘‘(ii) SPECIAL RULE.—A State that is 

18 required under State law to provide its 

19 charter schools with access to adequate fa20 cility space may be eligible to receive a 

21 grant under this subsection if the State 

22 agrees to use the funds to develop a per23 pupil facilities aid program consistent with 

24 the requirements of this subsection. 

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1 ‘‘(5) APPLICATIONS.—To be eligible to receive a 

2 grant under this subsection, a State shall submit an 

3 application to the Secretary at such time, in such 

4 manner, and containing such information as the Sec5 retary may require.’’. 

6 SEC. 7. NATIONAL ACTIVITIES. 

7 Section 5205 (20 U.S.C. 7221d) is amended to read 

8 as follows: 

9 ‘‘SEC. 5205. NATIONAL ACTIVITIES. 

10 ‘‘(a) IN GENERAL.—From the amount reserved 

11 under section 5202(b)(2), the Secretary shall— 

12 ‘‘(1) use not less than 50 percent of such funds 

13 to award grants in accordance with subsection (b); 

14 and 

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

16 ‘‘(A) disseminate technical assistance to 

17 State entities in awarding subgrants under sec18 tion 5203(b)(1)(A); 

19 ‘‘(B) disseminate best practices regarding 

20 public charter schools; and 

21 ‘‘(C) evaluate the impact of the charter 

22 school program, including the impact on stu23 dent achievement, carried out under this sub24 part. 

25 ‘‘(b) GRANTS.— 

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1 ‘‘(1) IN GENERAL.—From the amounts de2 scribed in subsection (a)(1), the Secretary shall 

3 make grants, on a competitive basis, to eligible ap4 plicants for the purpose of carrying out the activities 

5 described in section 5202(a)(1) and section 5203(b). 

6 ‘‘(2) TERMS AND CONDITIONS.—Except as oth7 erwise provided in this subsection, grants awarded 

8 under this subsection shall have the same terms and 

9 conditions as grants awarded under section 5203. 

10 ‘‘(3) ELIGIBLE APPLICANT DEFINED.—For pur11 poses of this subsection, the term ‘eligible applicant’ 

12 means an eligible applicant that desires to open a 

13 charter school in a State that— 

14 ‘‘(A) did not apply for a grant under sec15 tion 5203; 

16 ‘‘(B) did not receive a grant under section 

17 5203; or 

18 ‘‘(C) received a grant under section 5203 

19 and is in the fourth or fifth year of the grant 

20 period for such grant. 

21 ‘‘(c) CONTRACTS AND GRANTS.—The Secretary may 

22 carry out any of the activities described in this section di23 rectly or through grants, contracts, or cooperative agree24 ments.’’. 

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1 SEC. 8. RECORDS TRANSFER. 

2 Section 5208 (20 U.S.C. 7221g) is amended by in3 serting ‘‘as quickly as possible and’’ before ‘‘to the extent 

4 practicable’’. 

5 SEC. 9. DEFINITIONS. 

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

7 (1) in paragraph (1)— 

8 (A) in subparagraph (K), by striking 

9 ‘‘and’’ at the end; 

10 (B) in subparagraph (L), by striking the 

11 period at the end and inserting ‘‘; and’’; and 

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

13 ‘‘(M) may serve prekindergarten or post14 secondary students.’’; 

15 (2) in paragraph (3), by striking ‘‘under section 

16 5203(d)(3)’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(5) EXPANSION OF A HIGH-QUALITY CHARTER

19 SCHOOL.—The term ‘expansion of a high-quality 

20 charter school’ means a high-quality charter school 

21 that either significantly increases its enrollment or 

22 adds one or more grades to its school. 

23 ‘‘(6) HIGH-QUALITY CHARTER SCHOOL.—The 

24 term ‘high-quality charter school’ means a charter 

25 school that— 

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1 ‘‘(A) shows evidence of strong academic re2 sults; 

3 ‘‘(B) has no significant issues in the areas 

4 of student safety, financial management, or 

5 statutory or regulatory compliance; 

6 ‘‘(C) has demonstrated success in signifi7 cantly increasing student academic achievement 

8 and attainment for all students served by char9 ter schools; and 

10 ‘‘(D) has demonstrated success in increas11 ing student academic achievement for the sub12 groups of students described in section 

13 1111(b)(2)(C)(v)(II). 

14 ‘‘(7) REPLICABLE, HIGH-QUALITY CHARTER

15 SCHOOL MODEL.—The term ‘replicable, high-quality 

16 charter school model’ means a high-quality charter 

17 school that will open a new campus under an exist18 ing charter.’’. 

19 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

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

21 as follows: 

22 ‘‘SEC. 5211. AUTHORIZATION OF APPROPRIATIONS. 

23 ‘‘There are authorized to be appropriated to carry out 

24 this subpart $300,000,000 for fiscal year 2012 and each 

25 of the 5 succeeding fiscal years.’’. 

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1 SEC. 11. CONFORMING AMENDMENTS. 

2 (a) REPEAL.—Subpart 2 of part B of title V (20 

3 U.S.C. 7223 et seq.) is repealed. 

4 (b) TABLE OF CONTENTS.—The table of contents in 

5 section 2 is amended— 

6 (1) by striking the item relating to section 5203 

7 and inserting the following: 

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

8 and 

9 (2) by striking the item relating to section 5204 

10 and inserting the following: 

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

Æ 

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