IB 

Union Calendar No. 312 

113TH CONGRESS 

2D SESSION H. R. 10 

[Report No. 113–423] 

To amend the charter school program under the Elementary and Secondary 

Education Act of 1965. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2014 

Mr. KLINE (for himself and Mr. GEORGE MILLER of California) introduced 

the following bill; which was referred to the Committee on Education and 

the Workforce 

APRIL 29, 2014 

Additional sponsors: Mr. HINOJOSA, Mr. HUNTER, Mr. MESSER, Mr. PETERS

of California, Mr. POLIS, Mr. ROE of Tennessee, Mr. ROKITA, Mr. 

BUCSHON, Mr. DESJARLAIS, Mr. WALBERG, Mr. DUFFY, Mr. PETRI, Mr. 

WOMACK, Mr. WEBSTER of Florida, Mrs. BROOKS of Indiana, Mr. 

BYRNE, Mr. FARENTHOLD, Mr. GUTHRIE, Mr. HECK of Nevada, Mr. 

HUDSON, and Mr. WILSON of South Carolina 

APRIL 29, 2014 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 1, 2014] 


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A BILL 

To amend the charter school program under the Elementary 

and Secondary Education Act of 1965. 


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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 ‘‘Success and Oppor5 tunity 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8 this Act a section or other provision is amended or repealed, 

9 such amendment or repeal shall be considered to be made 

10 to that section or other provision of the Elementary and 

11 Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.). 

12 SEC. 3. SUBPART HEADING; PURPOSE. 

13 (a) SUBPART HEADING.—The heading for subpart 1 

14 of part B of title V (20 U.S.C. 7221 et seq.) is amended 

15 to read as follows: ‘‘Charter School Program’’. 

16 (b) PURPOSE.—Section 5201 (20 U.S.C. 7221) is 

17 amended to read as follows: 

18 ‘‘SEC. 5201. PURPOSE. 

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

20 ‘‘(1) improve the United States education system 

21 and education opportunities for all Americans by 

22 supporting innovation in public education in public 

23 school settings that prepare students to compete and 

24 contribute to the global economy; 


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1 ‘‘(2) provide financial assistance for the plan2 ning, program design, and initial implementation of 

3 charter schools; 

4 ‘‘(3) expand the number of high-quality charter 

5 schools available to students across the Nation; 

6 ‘‘(4) evaluate the impact of such schools on stu7 dent achievement, families, and communities, and 

8 share best practices between charter schools and other 

9 public schools; 

10 ‘‘(5) encourage States to provide support to char11 ter schools for facilities financing in an amount more 

12 nearly commensurate to the amount the States have 

13 typically provided for traditional public schools; 

14 ‘‘(6) improve student services to increase oppor15 tunities for students with disabilities, limited English 

16 proficient students, and other traditionally under17 served students to attend charter schools and meet 

18 challenging State academic achievement standards; 

19 ‘‘(7) support efforts to strengthen the charter 

20 school authorizing process to improve performance 

21 management, including transparency, oversight, mon22 itoring, and evaluation of such schools; and 

23 ‘‘(8) support quality accountability and trans24 parency in the operational performance of all author25 ized public chartering agencies, which include State 


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1 educational agencies, local educational agencies, and 

2 other authorizing entities.’’. 

3 SEC. 4. PROGRAM AUTHORIZED. 

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

5 as follows: 

6 ‘‘SEC. 5202. PROGRAM AUTHORIZED. 

7 ‘‘(a) IN GENERAL.—This subpart authorizes the Sec8 retary to carry out a charter school program that supports 

9 charter schools that serve elementary school and secondary 

10 school students by— 

11 ‘‘(1) supporting the startup of charter schools, 

12 and the replication and expansion of high-quality 

13 charter schools; 

14 ‘‘(2) assisting charter schools in accessing credit 

15 to acquire and renovate facilities for school use; and 

16 ‘‘(3) carrying out national activities to sup17 port— 

18 ‘‘(A) charter school development; 

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

20 charter schools for all schools; 

21 ‘‘(C) the evaluation of the impact of the pro22 gram on schools participating in the program; 

23 and 

24 ‘‘(D) stronger charter school authorizing. 


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1 ‘‘(b) FUNDING ALLOTMENT.—From the amount made 

2 available under section 5211 for a fiscal year, the Secretary 

3 shall— 

4 ‘‘(1) reserve 12.5 percent to support charter 

5 school facilities assistance under section 5204; 

6 ‘‘(2) reserve not more than 10 percent to carry 

7 out national activities under section 5205; and 

8 ‘‘(3) use the remaining amount after the Sec9 retary reserves funds under paragraphs (1) and (2) to 

10 carry out section 5203. 

11 ‘‘(c) PRIOR GRANTS AND SUBGRANTS.—The recipient 

12 of a grant or subgrant under this subpart or subpart 2, 

13 as such subpart was in effect on the day before the date 

14 of enactment of the Success and Opportunity through Qual15 ity Charter Schools Act, shall continue to receive funds in 

16 accordance with the terms and conditions of such grant or 

17 subgrant.’’. 

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

19 SCHOOLS. 

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

21 as follows: 

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

23 SCHOOLS. 

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

25 section 5202(b)(3), the Secretary shall award grants to 


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1 State entities having applications approved pursuant to 

2 subsection (f) to enable such entities to— 

3 ‘‘(1) award subgrants to eligible applicants for 

4 opening and preparing to operate— 

5 ‘‘(A) new charter schools; 

6 ‘‘(B) replicated, high-quality charter school 

7 models; or 

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

9 and 

10 ‘‘(2) provide technical assistance to eligible ap11 plicants and authorized public chartering agencies in 

12 carrying out the activities described in paragraph (1) 

13 and work with authorized public chartering agencies 

14 in the State to improve authorizing quality. 

15 ‘‘(b) STATE USES OF FUNDS.— 

16 ‘‘(1) IN GENERAL.—A State entity receiving a 

17 grant under this section shall— 

18 ‘‘(A) use not less than 90 percent of the 

19 grant funds to award subgrants to eligible appli20 cants, in accordance with the quality charter 

21 school program described in the State entity’s 

22 application approved pursuant to subsection (f), 

23 for the purposes described in subparagraphs (A) 

24 through (C) of subsection (a)(1); 


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1 ‘‘(B) reserve not less than 7 percent of such 

2 funds to carry out the activities described in sub3 section (a)(2); and 

4 ‘‘(C) reserve not more than 3 percent of such 

5 funds for administrative costs which may in6 clude technical assistance. 

7 ‘‘(2) CONTRACTS AND GRANTS.—A State entity 

8 may use a grant received under this section to carry 

9 out the activities described in subparagraphs (A) and 

10 (B) of paragraph (1) directly or through grants, con11 tracts, or cooperative agreements. 

12 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 

13 Act shall prohibit the Secretary from awarding grants 

14 to States that use a weighted lottery to give slightly 

15 better chances for admission to all, or a subset of, edu16 cationally disadvantaged students if— 

17 ‘‘(A) the use of weighted lotteries in favor of 

18 such students is not prohibited by State law, and 

19 such State law is consistent with laws described 

20 in section 5210(1)(G); and 

21 ‘‘(B) such weighted lotteries are not used for 

22 the purpose of creating schools exclusively to 

23 serve a particular subset of students. 

24 ‘‘(c) PROGRAM PERIODS; PEER REVIEW; GRANT NUM25 BER AND AMOUNT; DIVERSITY OF PROJECTS; WAIVERS.— 


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1 ‘‘(1) PROGRAM PERIODS.— 

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

3 Secretary to a State entity under this section 

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

5 ‘‘(B) SUBGRANTS.—A subgrant awarded by 

6 a State entity under this section shall be for a 

7 period of not more than 5 years, of which an eli8 gible applicant may use not more than 18 

9 months for planning and program design. 

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

11 State entity receiving a grant under this section, shall 

12 use a peer review process to review applications for 

13 assistance under this section. 

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

15 ‘‘(A) for each fiscal year for which funds are 

16 appropriated under section 5211— 

17 ‘‘(i) award not less than 3 grants 

18 under this section; 

19 ‘‘(ii) wholly fund each grant awarded 

20 under this section, without making continu21 ation awards; and 

22 ‘‘(iii) fully obligate the funds appro23 priated for the purpose of awarding grants 

24 under this section in the fiscal year for 

25 which such grants are awarded; and 


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1 ‘‘(B) midway through the grant period of 

2 each grant awarded under this section to a State 

3 entity, review the grant to determine whether the 

4 State entity will meet the agreed upon uses of 

5 funds in the State entity’s application, and if 

6 not, reallot the grant funds that will not be used 

7 for such agreed upon uses of funds to other State 

8 entities during the succeeding grant competition 

9 under this section. 

10 ‘‘(4) DIVERSITY OF PROJECTS.—Each State enti11 ty receiving a grant under this section shall award 

12 subgrants under this section in a manner that, to the 

13 extent possible, ensures that such subgrants— 

14 ‘‘(A) are distributed throughout different 

15 areas, including urban, suburban, and rural 

16 areas; and 

17 ‘‘(B) will assist charter schools representing 

18 a variety of educational approaches. 

19 ‘‘(5) WAIVERS.—The Secretary may waive any 

20 statutory or regulatory requirement over which the 

21 Secretary exercises administrative authority except 

22 any such requirement relating to the elements of a 

23 charter school described in section 5210(1), if— 

24 ‘‘(A) the waiver is requested in an approved 

25 application under this section; and 


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1 ‘‘(B) the Secretary determines that granting 

2 such a waiver will promote the purpose of this 

3 subpart. 

4 ‘‘(d) LIMITATIONS.— 

5 ‘‘(1) GRANTS.—A State entity may not receive 

6 more than 1 grant under this section for a 5-year pe7 riod. 

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

9 not receive more than 1 subgrant under this section 

10 per individual charter school for a 5-year period, un11 less the eligible applicant demonstrates to the State 

12 entity not less than 3 years of improved educational 

13 results in the areas described in subparagraphs (A) 

14 and (D) of section 5210(8) for students enrolled in 

15 such charter school. 

16 ‘‘(e) APPLICATIONS.—A State entity desiring to receive 

17 a grant under this section shall submit an application to 

18 the Secretary at such time and in such manner as the Sec19 retary may require. The application shall include the fol20 lowing: 

21 ‘‘(1) DESCRIPTION OF PROGRAM.—A description 

22 of the State entity’s objectives under this section and 

23 how the objectives of the program will be carried out, 

24 including a description— 

25 ‘‘(A) of how the State entity— 


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1 ‘‘(i) will support the opening of new 

2 charter schools, replicated, high-quality 

3 charter school models, or expanded, high4 quality charter schools, and a description of 

5 the proposed number of each type of charter 

6 school or model, if applicable, to be opened 

7 under the State entity’s program; 

8 ‘‘(ii) will inform eligible charter 

9 schools, developers, and authorized public 

10 chartering agencies of the availability of 

11 funds under the program; 

12 ‘‘(iii) will work with eligible appli13 cants to ensure that the eligible applicants 

14 access all Federal funds that they are eligi15 ble to receive, and help the charter schools 

16 supported by the applicants and the stu17 dents attending the charter schools— 

18 ‘‘(I) participate in the Federal 

19 programs in which the schools and stu20 dents are eligible to participate; 

21 ‘‘(II) receive the commensurate 

22 share of Federal funds the schools and 

23 students are eligible to receive under 

24 such programs; and 


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1 ‘‘(III) meet the needs of students 

2 served under such programs, including 

3 student with disabilities and English 

4 learners; 

5 ‘‘(iv) will have clear plans and proce6 dures to assist students enrolled in a charter 

7 school that closes or loses its charter to at8 tend other high-quality schools; 

9 ‘‘(v) in the case in which the State en10 tity is not a State educational agency— 

11 ‘‘(I) will work with the State edu12 cational agency and the charter schools 

13 in the State to maximize charter school 

14 participation in Federal and State 

15 programs for charter schools; and 

16 ‘‘(II) will work with the State 

17 educational agency to adequately oper18 ate the State entity’s program under 

19 this section, where applicable; 

20 ‘‘(vi) will ensure each eligible appli21 cant that receives a subgrant under the 

22 State entity’s program to open and prepare 

23 to operate a new charter school, a rep24 licated, high-quality charter school model, 


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1 or an expanded, high-quality charter 

2 school— 

3 ‘‘(I) will ensure such school or 

4 model meets the requirements under 

5 section 5210(1); and 

6 ‘‘(II) is prepared to continue to 

7 operate such school or model, in a 

8 manner consistent with the eligible ap9 plicant’s application, after the 

10 subgrant funds have expired; 

11 ‘‘(vii) will support charter schools in 

12 local educational agencies with large num13 bers of schools identified by the State for 

14 improvement; 

15 ‘‘(viii) will work with charter schools 

16 to promote inclusion of all students and 

17 support all students once they are enrolled 

18 to promote retention; 

19 ‘‘(ix) will work with charter schools on 

20 recruitment practices, including efforts to 

21 engage groups that may otherwise have lim22 ited opportunities to participate in charter 

23 schools, and to ensure such schools do not 

24 have in effect policies or procedures that 

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1 dents, including educationally disadvan2 taged students, and are in compliance with 

3 all Federal and State laws on enrollment 

4 practices; 

5 ‘‘(x) will share best and promising 

6 practices between charter schools and other 

7 public schools, including, where appro8 priate, instruction and professional develop9 ment in core academic subjects, and science, 

10 technology, engineering, and math edu11 cation, including computer science; 

12 ‘‘(xi) will ensure the charter schools re13 ceiving funds under the State entity’s pro14 gram meet the educational needs of their 

15 students, including students with disabil16 ities and English learners; 

17 ‘‘(xii) will support efforts to increase 

18 quality initiatives, including meeting the 

19 quality authorizing elements described in 

20 paragraph (2)(E); 

21 ‘‘(xiii) in the case of a State entity not 

22 described in clause (xiv), will provide over23 sight of authorizing activity, including how 

24 the State will approve, actively monitor, 

25 and re-approve or revoke the authority of 


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1 an authorized public chartering agency 

2 based on the performance of the charter 

3 schools authorized by such agency in the 

4 areas of student achievement, student safety, 

5 financial management, and compliance 

6 with all applicable statutes and regulations; 

7 and 

8 ‘‘(xiv) in the case of a State entity de9 fined in subsection (i)(4), will work with 

10 the State to provide assistance to and over11 sight of authorized public chartering agen12 cies for authorizing activity described in 

13 clause (xiii); 

14 ‘‘(B) of the extent to which the State enti15 ty— 

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

17 priorities listed in subsection (f)(2); and 

18 ‘‘(ii) is working to develop or strength19 en a cohesive statewide system to support 

20 the opening of new charter schools, rep21 licated, high-quality charter school models, 

22 or expanded, high-quality charter schools; 

23 ‘‘(C) of how the State entity will carry out 

24 the subgrant competition, including— 


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1 ‘‘(i) a description of the application 

2 each eligible applicant desiring to receive a 

3 subgrant will submit, including— 

4 ‘‘(I) a description of the roles and 

5 responsibilities of eligible applicants, 

6 partner organizations, and manage7 ment organizations, including the ad8 ministrative and contractual roles and 

9 responsibilities; 

10 ‘‘(II) a description of the quality 

11 controls agreed to between the eligible 

12 applicant and the authorized public 

13 chartering agency involved, such as a 

14 contract or performance agreement, 

15 how a school’s performance in the 

16 State’s academic accountability system 

17 will be a primary factor for renewal or 

18 revocation of the school’s charter, and 

19 how the State entity and the author20 ized public chartering agency involved 

21 will reserve the right to revoke or not 

22 renew a school’s charter based on fi23 nancial, structural, or operational fac24 tors involving the management of the 

25 school; 


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1 ‘‘(III) a description of how the eli2 gible applicant will solicit and con3 sider input from parents and other 

4 members of the community on the im5 plementation and operation of each 

6 charter school receiving funds under 

7 the State entity’s program; and 

8 ‘‘(IV) a description of the planned 

9 activities and expenditures for the 

10 subgrant funds for purposes of opening 

11 and preparing to operate a new char12 ter school, a replicated, high-quality 

13 charter school model, or an expanded, 

14 high-quality charter school, and how 

15 the school or model will maintain fi16 nancial sustainability after the end of 

17 the subgrant period; and 

18 ‘‘(ii) a description of how the State en19 tity will review applications; 

20 ‘‘(D) in the case of an entity that partners 

21 with an outside organization to carry out the 

22 State entity’s quality charter school program, in 

23 whole or in part, of the roles and responsibilities 

24 of this partner; 


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1 ‘‘(E) of how the State entity will help the 

2 charter schools receiving funds under the State 

3 entity’s program consider the transportation 

4 needs of the schools’ students; and 

5 ‘‘(F) of how the State entity will support 

6 diverse charter school models, including models 

7 that serve rural communities. 

8 ‘‘(2) ASSURANCES.—Assurances, including a de9 scription of how the assurances will be met, that— 

10 ‘‘(A) each charter school receiving funds 

11 under the State entity’s program will have a 

12 high degree of autonomy over budget and oper13 ations; 

14 ‘‘(B) the State entity will support charter 

15 schools in meeting the educational needs of their 

16 students as described in paragraph (1)(A)(x); 

17 ‘‘(C) the State entity will ensure that the 

18 authorized public chartering agency of any char19 ter school that receives funds under the State en20 tity’s program— 

21 ‘‘(i) adequately monitors each charter 

22 school in recruiting, enrolling, and meeting 

23 the needs of all students, including students 

24 with disabilities and English learners; and 


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1 ‘‘(ii) ensures that each charter school 

2 solicits and considers input from parents 

3 and other members of the community on the 

4 implementation and operation of the school; 

5 ‘‘(D) the State entity will provide adequate 

6 technical assistance to eligible applicants to— 

7 ‘‘(i) meet the objectives described in 

8 clauses (vii) and (viii) of paragraph (1)(A) 

9 and paragraph (2)(B); and 

10 ‘‘(ii) recruit, enroll, and retain tradi11 tionally underserved students, including 

12 students with disabilities and English 

13 learners, at rates similar to traditional 

14 public schools; 

15 ‘‘(E) the State entity will promote quality 

16 authorizing, such as through providing technical 

17 assistance and supporting all authorized public 

18 chartering agencies in the State to improve the 

19 oversight of their charter schools, including by— 

20 ‘‘(i) assessing annual performance data 

21 of the schools, including, as appropriate, 

22 graduation rates and student academic 

23 growth; 

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1 ments conducted in accordance with gen2 erally accepted accounting principles, and 

3 ensuring any such audits are publically re4 ported; and 

5 ‘‘(iii) holding charter schools account6 able to the academic, financial, and oper7 ational quality controls agreed to between 

8 the charter school and the authorized public 

9 chartering agency involved, such as through 

10 renewal, non-renewal, or revocation of the 

11 school’s charter; 

12 ‘‘(F) the State entity will work to ensure 

13 that charter schools are included with the tradi14 tional public schools in decision-making about 

15 the public school system in the State; and 

16 ‘‘(G) the State entity will ensure that each 

17 charter school in the State make publicly avail18 able, consistent with the dissemination require19 ments of the annual State report card, informa20 tion to help parents make informed decisions 

21 about the education options available to their 

22 children, including information on the edu23 cational program, student support services, and 

24 annual performance and enrollment data for the 


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1 groups of students described in section 

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

3 ‘‘(3) REQUESTS FOR WAIVERS.—A request and 

4 justification for waivers of any Federal statutory or 

5 regulatory provisions that the State entity believes are 

6 necessary for the successful operation of the charter 

7 schools that will receive funds under the State entity’s 

8 program under this section, and a description of any 

9 State or local rules, generally applicable to public 

10 schools, that will be waived, or otherwise not apply to 

11 such schools or, in the case of a State entity defined 

12 in subsection (i)(4), a description of how the State en13 tity will work with the State to request necessary 

14 waivers where applicable. 

15 ‘‘(f) SELECTION CRITERIA; PRIORITY.— 

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

17 award grants to State entities under this section on 

18 the basis of the quality of the applications submitted 

19 under subsection (e), after taking into consider20 ation— 

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

22 State’s public charter school law and how the 

23 State entity will work to maximize the flexibility 

24 provided to charter schools under the law; 


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1 ‘‘(B) the ambitiousness of the State entity’s 

2 objectives for the quality charter school program 

3 carried out under this section; 

4 ‘‘(C) the quality of the strategy for assessing 

5 achievement of those objectives; 

6 ‘‘(D) the likelihood that the eligible appli7 cants receiving subgrants under the program will 

8 meet those objectives and improve educational re9 sults for students; 

10 ‘‘(E) the State entity’s plan to— 

11 ‘‘(i) adequately monitor the eligible ap12 plicants receiving subgrants under the State 

13 entity’s program; 

14 ‘‘(ii) work with the authorized public 

15 chartering agencies involved to avoid dupli16 cation of work for the charter schools and 

17 authorized public chartering agencies; and 

18 ‘‘(iii) provide adequate technical as19 sistance and support for— 

20 ‘‘(I) the charter schools receiving 

21 funds under the State entity’s pro22 gram; and 

23 ‘‘(II) quality authorizing efforts 

24 in the State; and 


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1 ‘‘(F) the State entity’s plan to solicit and 

2 consider input from parents and other members 

3 of the community on the implementation and op4 eration of the charter schools in the State. 

5 ‘‘(2) PRIORITY.—In awarding grants under this 

6 section, the Secretary shall give priority to State enti7 ties to the extent that they meet the following criteria: 

8 ‘‘(A) In the case of a State entity located in 

9 a State that allows an entity other than a local 

10 educational agency to be an authorized public 

11 chartering agency, the State has a quality au12 thorized public chartering agency that is an enti13 ty other than a local educational agency. 

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

15 that does not impose any limitation on the num16 ber or percentage of charter schools that may 

17 exist or the number or percentage of students 

18 that may attend charter schools in the State. 

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

20 that ensures equitable financing, as compared to 

21 traditional public schools, for charter schools and 

22 students in a prompt manner. 

23 ‘‘(D) The State entity is located in a State 

24 that uses charter schools and best practices from 


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1 charter schools to help improve struggling schools 

2 and local educational agencies. 

3 ‘‘(E) The State entity partners with an or4 ganization that has a demonstrated record of 

5 success in developing management organizations 

6 to support the development of charter schools in 

7 the State. 

8 ‘‘(F) The State entity supports charter 

9 schools that support at-risk students through ac10 tivities such as dropout prevention or dropout 

11 recovery. 

12 ‘‘(G) The State entity authorizes all charter 

13 schools in the State to serve as school food au14 thorities. 

15 ‘‘(H) The State entity has taken steps to en16 sure that all authorizing public chartering agen17 cies implement best practices for charter school 

18 authorizing. 

19 ‘‘(g) LOCAL USES OF FUNDS.—An eligible applicant 

20 receiving a subgrant under this section shall use such funds 

21 to carry out activities related to opening and preparing to 

22 operate a new charter school, a replicated, high-quality 

23 charter school model, or an expanded, high-quality charter 

24 school, such as— 


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1 ‘‘(1) preparing teachers and school leaders, in2 cluding through professional development; 

3 ‘‘(2) acquiring equipment, educational materials, 

4 and supplies; and 

5 ‘‘(3) necessary renovations and minor facilities 

6 repairs (excluding construction). 

7 ‘‘(h) REPORTING REQUIREMENTS.—Each State entity 

8 receiving a grant under this section shall submit to the Sec9 retary, at the end of the third year of the 5-year grant pe10 riod and at the end of such grant period, a report on— 

11 ‘‘(1) the number of students served by each 

12 subgrant awarded under this section and, if applica13 ble, how many new students were served during each 

14 year of the subgrant period; 

15 ‘‘(2) the progress the State entity made toward 

16 meeting the priorities described in subsection (f)(2), 

17 as applicable; 

18 ‘‘(3) how the State entity met the objectives of the 

19 quality charter school program described in the State 

20 entity’s application under subsection (e); 

21 ‘‘(4) how the State entity complied with, and en22 sured that eligible applicants complied with, the as23 surances described in the State entity’s application; 

24 ‘‘(5) how the State entity worked with authorized 

25 public chartering agencies, including how the agencies 


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1 worked with the management company or leadership 

2 of the schools that received subgrants under this sec3 tion; and 

4 ‘‘(6) the number of subgrants awarded under this 

5 section to carry out each of the following: 

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

7 ‘‘(B) The opening of replicated, high-quality 

8 charter school models. 

9 ‘‘(C) The opening of expanded, high-quality 

10 charter schools. 

11 ‘‘(i) STATE ENTITY DEFINED.—For purposes of this 

12 section, the term ‘State entity’ means— 

13 ‘‘(1) a State educational agency; 

14 ‘‘(2) a State charter school board; 

15 ‘‘(3) a Governor of a State; or 

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

17 SEC. 6. FACILITIES FINANCING ASSISTANCE. 

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

19 as follows: 

20 ‘‘SEC. 5204. FACILITIES FINANCING ASSISTANCE. 

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

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

23 under section 5202(b)(1), the Secretary shall not use 

24 less than 50 percent to award grants to eligible enti25 ties that have the highest-quality applications apVerDate Mar 15 2010 20:48 Apr 29, 2014 Jkt 039200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6203 E:\BILLS\H10.RH H10

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1 proved under subsection (d), after considering the di2 versity of such applications, to demonstrate innova3 tive methods of assisting charter schools to address the 

4 cost of acquiring, constructing, and renovating facili5 ties by enhancing the availability of loans or bond fi6 nancing. 

7 ‘‘(2) ELIGIBLE ENTITY DEFINED.—For purposes 

8 of this section, the term ‘eligible entity’ 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.—The Secretary shall 

15 evaluate each application submitted under subsection (d), 

16 and shall determine whether the application is sufficient 

17 to merit approval. 

18 ‘‘(c) GRANT CHARACTERISTICS.—Grants under sub19 section (a) shall be of a sufficient size, scope, and quality 

20 so as to ensure an effective demonstration of an innovative 

21 means of enhancing credit for the financing of charter 

22 school acquisition, construction, or renovation. 

23 ‘‘(d) APPLICATIONS.— 

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

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


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1 Secretary an application in such form as the Sec2 retary may reasonably require. 

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

4 under paragraph (1) shall contain— 

5 ‘‘(A) a statement identifying the activities 

6 proposed to be undertaken with funds received 

7 under subsection (a), including how the eligible 

8 entity will determine which charter schools will 

9 receive assistance, and how much and what types 

10 of assistance charter schools will receive; 

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

12 charter schools in the application’s development 

13 and the design of the proposed activities; 

14 ‘‘(C) a description of the eligible entity’s ex15 pertise in capital market financing; 

16 ‘‘(D) a description of how the proposed ac17 tivities will leverage the maximum amount of 

18 private-sector financing capital relative to the 

19 amount of public funding used and otherwise en20 hance credit available to charter schools, includ21 ing how the eligible entity will offer a combina22 tion of rates and terms more favorable than the 

23 rates and terms that a charter school could re24 ceive without assistance from the eligible entity 

25 under this section; 


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1 ‘‘(E) a description of how the eligible entity 

2 possesses sufficient expertise in education to 

3 evaluate the likelihood of success of a charter 

4 school program for which facilities financing is 

5 sought; and 

6 ‘‘(F) in the case of an application submitted 

7 by a State governmental entity, a description of 

8 the actions that the entity has taken, or will 

9 take, to ensure that charter schools within the 

10 State receive the funding the charter schools need 

11 to have adequate facilities. 

12 ‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible en13 tity receiving a grant under this section shall use the funds 

14 deposited in the reserve account established under subsection 

15 (f) to assist one or more charter schools to access private 

16 sector capital to accomplish one or more of the following 

17 objectives: 

18 ‘‘(1) The acquisition (by purchase, lease, dona19 tion, or otherwise) of an interest (including an inter20 est held by a third party for the benefit of a charter 

21 school) in improved or unimproved real property that 

22 is necessary to commence or continue the operation of 

23 a charter school. 

24 ‘‘(2) The construction of new facilities, or the 

25 renovation, repair, or alteration of existing facilities, 


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1 necessary to commence or continue the operation of a 

2 charter school. 

3 ‘‘(3) The predevelopment costs required to assess 

4 sites for purposes of paragraph (1) or (2) and which 

5 are necessary to commence or continue the operation 

6 of a charter school. 

7 ‘‘(f) RESERVE ACCOUNT.— 

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

9 to accomplish the objectives described in subsection 

10 (e), an eligible entity receiving a grant under sub11 section (a) shall, in accordance with State and local 

12 law, directly or indirectly, alone or in collaboration 

13 with others, deposit the funds received under sub14 section (a) (other than funds used for administrative 

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

16 account established and maintained by the eligible en17 tity for this purpose. Amounts deposited in such ac18 count shall be used by the eligible entity for one or 

19 more of the following purposes: 

20 ‘‘(A) Guaranteeing, insuring, and rein21 suring bonds, notes, evidences of debt, loans, and 

22 interests therein, the proceeds of which are used 

23 for an objective described in subsection (e). 


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1 ‘‘(B) Guaranteeing and insuring leases of 

2 personal and real property for an objective de3 scribed in subsection (e). 

4 ‘‘(C) Facilitating financing by identifying 

5 potential lending sources, encouraging private 

6 lending, and other similar activities that directly 

7 promote lending to, or for the benefit of, charter 

8 schools. 

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

10 charter schools, or by other public entities for the 

11 benefit of charter schools, by providing technical, 

12 administrative, and other appropriate assistance 

13 (including the recruitment of bond counsel, un14 derwriters, and potential investors and the con15 solidation of multiple charter school projects 

16 within a single bond issue). 

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

18 section and deposited in the reserve account estab19 lished under paragraph (1) shall be invested in obli20 gations issued or guaranteed by the United States or 

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

22 ‘‘(3) REINVESTMENT OF EARNINGS.—Any earn23 ings on funds received under subsection (a) shall be 

24 deposited in the reserve account established under 


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1 paragraph (1) and used in accordance with such 

2 paragraph. 

3 ‘‘(g) LIMITATION ON ADMINISTRATIVE COSTS.—An eli4 gible entity may use not more than 2.5 percent of the funds 

5 received under subsection (a) for the administrative costs 

6 of carrying out its responsibilities under this section (ex7 cluding subsection (k)). 

8 ‘‘(h) AUDITS AND REPORTS.— 

9 ‘‘(1) FINANCIAL RECORD MAINTENANCE AND

10 AUDIT.—The financial records of each eligible entity 

11 receiving a grant under subsection (a) shall be main12 tained in accordance with generally accepted account13 ing principles and shall be subject to an annual audit 

14 by an independent public accountant. 

15 ‘‘(2) REPORTS.— 

16 ‘‘(A) GRANTEE ANNUAL REPORTS.—Each el17 igible entity receiving a grant under subsection 

18 (a) annually shall submit to the Secretary a re19 port of its operations and activities under this 

20 section. 

21 ‘‘(B) CONTENTS.—Each annual report sub22 mitted under subparagraph (A) shall include— 

23 ‘‘(i) a copy of the most recent financial 

24 statements, and any accompanying opinion 

25 on such statements, prepared by the indeVerDate Mar 15 2010 20:48 Apr 29, 2014 Jkt 039200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6203 E:\BILLS\H10.RH H10

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1 pendent public accountant reviewing the fi2 nancial records of the eligible entity; 

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

4 audit of the financial records of the eligible 

5 entity that was conducted under paragraph 

6 (1) during the reporting period; 

7 ‘‘(iii) an evaluation by the eligible en8 tity of the effectiveness of its use of the Fed9 eral funds provided under subsection (a) in 

10 leveraging private funds; 

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

12 charter schools served during the reporting 

13 period, including the amount of funds used 

14 by each school, the type of project facilitated 

15 by the grant, and the type of assistance pro16 vided to the charter schools; 

17 ‘‘(v) a description of the activities car18 ried out by the eligible entity to assist char19 ter schools in meeting the objectives set forth 

20 in subsection (e); and 

21 ‘‘(vi) a description of the characteris22 tics of lenders and other financial institu23 tions participating in the activities under24 taken by the eligible entity under this secVerDate Mar 15 2010 20:48 Apr 29, 2014 Jkt 039200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6203 E:\BILLS\H10.RH H10

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1 tion (excluding subsection (k)) during the 

2 reporting period. 

3 ‘‘(C) SECRETARIAL REPORT.—The Sec4 retary shall review the reports submitted under 

5 subparagraph (A) and shall provide a com6 prehensive annual report to Congress on the ac7 tivities conducted under this section (excluding 

8 subsection (k)). 

9 ‘‘(i) NO FULL FAITH AND CREDIT FOR GRANTEE OB10 LIGATION.—No financial obligation of an eligible entity en11 tered into pursuant to this section (such as an obligation 

12 under a guarantee, bond, note, evidence of debt, or loan) 

13 shall be an obligation of, or guaranteed in any respect by, 

14 the United States. The full faith and credit of the United 

15 States is not pledged to the payment of funds which may 

16 be required to be paid under any obligation made by an 

17 eligible entity pursuant to any provision of this section. 

18 ‘‘(j) RECOVERY OF FUNDS.— 

19 ‘‘(1) IN GENERAL.—The Secretary, in accordance 

20 with chapter 37 of title 31, United States Code, shall 

21 collect— 

22 ‘‘(A) all of the funds in a reserve account es23 tablished by an eligible entity under subsection 

24 (f)(1) if the Secretary determines, not earlier 

25 than 2 years after the date on which the eligible 


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1 entity first received funds under this section (ex2 cluding subsection (k)), that the eligible entity 

3 has failed to make substantial progress in car4 rying out the purposes described in subsection 

5 (f)(1); or 

6 ‘‘(B) all or a portion of the funds in a re7 serve account established by an eligible entity 

8 under subsection (f)(1) if the Secretary deter9 mines that the eligible entity has permanently 

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

11 such account to accomplish any purpose de12 scribed in subsection (f)(1). 

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

14 shall not exercise the authority provided in paragraph 

15 (1) to collect from any eligible entity any funds that 

16 are being properly used to achieve one or more of the 

17 purposes described in subsection (f)(1). 

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

19 451, 452, and 458 of the General Education Provi20 sions Act 20 U.S.C. 124, 1234a, 1234g shall apply to 

21 the recovery of funds under paragraph (1). 

22 ‘‘(4) CONSTRUCTION.—This subsection shall not 

23 be construed to impair or affect the authority of the 

24 Secretary to recover funds under part D of the GenVerDate Mar 15 2010 20:48 Apr 29, 2014 Jkt 039200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6203 E:\BILLS\H10.RH H10

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1 eral Education Provisions Act (20 U.S.C. 1234 et 

2 seq.). 

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

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

5 PROGRAM.—In this subsection, the term ‘per-pupil fa6 cilities aid program’ means a program in which a 

7 State makes payments, on a per-pupil basis, to char8 ter schools to provide the schools with financing— 

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

10 charter school facilities; or 

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

12 funding charter school facilities. 

13 ‘‘(2) GRANTS.— 

14 ‘‘(A) IN GENERAL.—From the amount 

15 under section 5202(b)(1) remaining after the 

16 Secretary makes grants under subsection (a), the 

17 Secretary shall make grants, on a competitive 

18 basis, to States to pay for the Federal share of 

19 the cost of establishing or enhancing, and admin20 istering per-pupil facilities aid programs. 

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

22 grants under this subsection for periods of not 

23 more than 5 years. 

24 ‘‘(C) FEDERAL SHARE.—The Federal share 

25 of the cost described in subparagraph (A) for a 


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1 per-pupil facilities aid program shall be not 

2 more than— 

3 ‘‘(i) 90 percent of the cost, for the first 

4 fiscal year for which the program receives 

5 assistance under this subsection; 

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

7 year; 

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

9 year; 

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

11 year; and 

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

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

14 grant under this subsection may partner with 1 

15 or more organizations to provide up to 50 per16 cent of the State share of the cost of establishing 

17 or enhancing, and administering the per-pupil 

18 facilities aid program. 

19 ‘‘(E) MULTIPLE GRANTS.—A State may re20 ceive more than 1 grant under this subsection, so 

21 long as the amount of such funds provided to 

22 charter schools increases with each successive 

23 grant. 

24 ‘‘(3) USE OF FUNDS.— 


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1 ‘‘(A) IN GENERAL.—A State that receives a 

2 grant under this subsection shall use the funds 

3 made available through the grant to establish or 

4 enhance, and administer, a per-pupil facilities 

5 aid program for charter schools in the State of 

6 the applicant. 

7 ‘‘(B) EVALUATIONS; TECHNICAL ASSIST8 ANCE; DISSEMINATION.—From the amount made 

9 available to a State through a grant under this 

10 subsection for a fiscal year, the State may re11 serve not more than 5 percent to carry out eval12 uations, to provide technical assistance, and to 

13 disseminate information. 

14 ‘‘(C) SUPPLEMENT, NOT SUPPLANT.—Funds 

15 made available under this subsection shall be 

16 used to supplement, and not supplant, State and 

17 local public funds expended to provide per pupil 

18 facilities aid programs, operations financing 

19 programs, or other programs, for charter schools. 

20 ‘‘(4) REQUIREMENTS.— 

21 ‘‘(A) VOLUNTARY PARTICIPATION.—No State 

22 may be required to participate in a program 

23 carried out under this subsection. 

24 ‘‘(B) STATE LAW.— 


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1 ‘‘(i) IN GENERAL.—Except as provided 

2 in clause (ii), to be eligible to receive a 

3 grant under this subsection, a State shall 

4 establish or enhance, and administer, a per5 pupil facilities aid program for charter 

6 schools in the State, that— 

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

8 ‘‘(II) provides annual financing, 

9 on a per-pupil basis, for charter school 

10 facilities. 

11 ‘‘(ii) SPECIAL RULE.—Notwith12 standing clause (i), a State that is required 

13 under State law to provide its charter 

14 schools with access to adequate facility 

15 space, but which does not have a per-pupil 

16 facilities aid program for charter schools 

17 specified in State law, may be eligible to re18 ceive a grant under this subsection if the 

19 State agrees to use the funds to develop a 

20 per-pupil facilities aid program consistent 

21 with the requirements of this subsection. 

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

23 grant under this subsection, a State shall submit an 

24 application to the Secretary at such time, in such 


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1 manner, and containing such information as the Sec2 retary may require.’’. 

3 SEC. 7. NATIONAL ACTIVITIES. 

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

5 as follows: 

6 ‘‘SEC. 5205. NATIONAL ACTIVITIES. 

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

8 section 5202(b)(2), the Secretary shall— 

9 ‘‘(1) use not less than 75 percent of such funds 

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

11 and 

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

13 to— 

14 ‘‘(A) provide technical assistance to State 

15 entities in awarding subgrants under section 

16 5203, and eligible entities and States receiving 

17 grants under section 5204; 

18 ‘‘(B) disseminate best practices; and 

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

20 school program, including the impact on student 

21 achievement, carried out under this subpart. 

22 ‘‘(b) GRANTS.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall make 

24 grants, on a competitive basis, to eligible applicants 

25 for the purpose of carrying out the activities described 


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1 in section 5202(a)(1), subparagraphs (A) through (C) 

2 of section 5203(a)(1), and section 5203(g). 

3 ‘‘(2) TERMS AND CONDITIONS.—Except as other4 wise provided in this subsection, grants awarded 

5 under this subsection shall have the same terms and 

6 conditions as grants awarded to State entities under 

7 section 5203. 

8 ‘‘(3) CHARTER MANAGEMENT ORGANIZATIONS.— 

9 The Secretary shall— 

10 ‘‘(A) use not less than 75 percent of the 

11 funds described in subsection (a)(1) to make 

12 grants, on a competitive basis, to eligible appli13 cants described in paragraph (4)(C); and 

14 ‘‘(B) notwithstanding paragraphs (1)(A) 

15 and (2) of section 5203(f)— 

16 ‘‘(i) award grants to eligible appli17 cants on the basis of the quality of the ap18 plications submitted under this subsection; 

19 and 

20 ‘‘(ii) in awarding grants to eligible ap21 plicants described in paragraph (4)(C), give 

22 priority to each such eligible applicant 

23 that— 

24 ‘‘(I) demonstrates a high propor25 tion of high-quality charter schools 


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1 within the network of the eligible ap2 plicant; 

3 ‘‘(II) demonstrates success in serv4 ing students who are educationally dis5 advantaged; 

6 ‘‘(III) does not have a significant 

7 proportion of charter schools that have 

8 been closed, had their charter revoked 

9 for compliance issues, or had their af10 filiation with such eligible applicant 

11 revoked; 

12 ‘‘(IV) has sufficient procedures in 

13 effect to ensure timely closure of low14 performing or financially-mismanaged 

15 charter schools and clear plans and 

16 procedures in effect for the students in 

17 such schools to attend other high-qual18 ity schools; and 

19 ‘‘(V) demonstrates success in 

20 working with schools identified for im21 provement by the State. 

22 ‘‘(4) ELIGIBLE APPLICANT DEFINED.—For pur23 poses of this subsection, the term ‘eligible applicant’ 

24 means an eligible applicant (as defined in section 

25 5210) that— 


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

2 ‘‘(i) a State that did not apply for a 

3 grant under section 5203; or 

4 ‘‘(ii) a State that did not receive a 

5 grant under section 5203; or 

6 ‘‘(B) is a charter management organization. 

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

8 carry out any of the activities described in this section di9 rectly or through grants, contracts, or cooperative agree10 ments.’’. 

11 SEC. 8. RECORDS TRANSFER. 

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

13 (1) by inserting ‘‘as quickly as possible and’’ be14 fore ‘‘to the extent practicable’’; and 

15 (2) by striking ‘‘section 602’’ and inserting ‘‘sec16 tion 602(14)’’. 

17 SEC. 9. DEFINITIONS. 

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

19 (1) by amending paragraph (1) to read as fol20 lows: 

21 ‘‘(1) CHARTER SCHOOL.—The term ‘charter 

22 school’ means a public school that— 

23 ‘‘(A) in accordance with a specific State 

24 statute authorizing the granting of charters to 

25 schools, is exempt from significant State or local 


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1 rules that inhibit the flexible operation and man2 agement of public schools, but not from any rules 

3 relating to the other requirements of this para4 graph; 

5 ‘‘(B) is created by a developer as a public 

6 school, or is adapted by a developer from an ex7 isting public school, and is operated under pub8 lic supervision and direction; 

9 ‘‘(C) operates in pursuit of a specific set of 

10 educational objectives determined by the school’s 

11 developer and agreed to by the authorized public 

12 chartering agency; 

13 ‘‘(D) provides a program of elementary or 

14 secondary education, or both; 

15 ‘‘(E) is nonsectarian in its programs, ad16 missions policies, employment practices, and all 

17 other operations, and is not affiliated with a sec18 tarian school or religious institution; 

19 ‘‘(F) does not charge tuition; 

20 ‘‘(G) complies with the Age Discrimination 

21 Act of 1975, title VI of the Civil Rights Act of 

22 1964, title IX of the Education Amendments of 

23 1972, section 504 of the Rehabilitation Act of 

24 1973, part B of the Individuals with Disabilities 

25 Education Act, the Americans with Disabilities 


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1 Act of 1990 (42 U.S.C. 12101 et seq.), and sec2 tion 444 of the General Education Provisions 

3 Act (20 U.S.C. 1232(g)) (commonly known as 

4 the ‘Family Education Rights and Privacy Act 

5 of 1974’); 

6 ‘‘(H) is a school to which parents choose to 

7 send their children, and admits students on the 

8 basis of a lottery if more students apply for ad9 mission than can be accommodated, except that 

10 in cases in which students who are enrolled in 

11 a charter school affiliated (such as by sharing a 

12 network) with another charter school, those stu13 dents may be automatically enrolled in the next 

14 grade level at such other charter school, so long 

15 as a lottery is used to fill seats created through 

16 regular attrition in student enrollment; 

17 ‘‘(I) agrees to comply with the same Federal 

18 and State audit requirements as do other elemen19 tary schools and secondary schools in the State, 

20 unless such State audit requirements are waived 

21 by the State; 

22 ‘‘(J) meets all applicable Federal, State, 

23 and local health and safety requirements; 

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


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1 ‘‘(L) has a written performance contract 

2 with the authorized public chartering agency in 

3 the State that includes a description of how stu4 dent performance will be measured in charter 

5 schools pursuant to State assessments that are 

6 required of other schools and pursuant to any 

7 other assessments mutually agreeable to the au8 thorized public chartering agency and the char9 ter school; and 

10 ‘‘(M) may serve prekindergarten or postsec11 ondary students.’’; 

12 (2) by redesignating paragraphs (2) through (4) 

13 as paragraphs (4) through (6), respectively; 

14 (3) by inserting after paragraph (1), the fol15 lowing: 

16 ‘‘(2) CHARTER MANAGEMENT ORGANIZATION.— 

17 The term ‘charter management organization’ means a 

18 not-for-profit organization that manages a network of 

19 charter schools linked by centralized support, oper20 ations, and oversight. 

21 ‘‘(3) CHARTER SCHOOL SUPPORT ORGANIZA22 TION.—The term ‘charter school support organization’ 

23 means a nonprofit, nongovernmental entity that is 

24 not an authorized public chartering agency, which 

25 provides on a statewide basis— 


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1 ‘‘(A) assistance to developers during the 

2 planning, program design, and initial imple3 mentation of a charter school; and 

4 ‘‘(B) technical assistance to charter schools 

5 to operate such schools.’’; 

6 (4) in paragraph (5)(B), as so redesignated, by 

7 striking ‘‘under section 5203(d)(3)’’; and 

8 (5) by adding at the end the following: 

9 ‘‘(7) EXPANDED, HIGH-QUALITY CHARTER

10 SCHOOL.—The term ‘expanded, high-quality charter 

11 school’ means a high-quality charter school that has 

12 either significantly increased its enrollment or added 

13 one or more grades to its school. 

14 ‘‘(8) HIGH-QUALITY CHARTER SCHOOL.—The 

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

16 school that— 

17 ‘‘(A) shows evidence of strong academic re18 sults, which may include strong academic growth 

19 as determined by a State; 

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

21 of student safety, operational and financial man22 agement, or statutory or regulatory compliance; 

23 ‘‘(C) has demonstrated success in signifi24 cantly increasing student academic achievement, 

25 including graduation rates where applicable, 


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1 consistent with the requirements under title I, for 

2 all students served by the charter school; and 

3 ‘‘(D) has demonstrated success in increasing 

4 student academic achievement, including grad5 uation rates where applicable, for the groups of 

6 students described in section 

7 1111(b)(2)(C)(v)(II), except that such demonstra8 tion is not required in a case in which the num9 ber of students in a group is insufficient to yield 

10 statistically reliable information or the results 

11 would reveal personally identifiable information 

12 about an individual student. 

13 ‘‘(9) REPLICATED, HIGH-QUALITY CHARTER

14 SCHOOL MODEL.—The term ‘replicated, high-quality 

15 charter school model’ means a high-quality charter 

16 school that has opened a new campus under an exist17 ing charter or an additional charter if required by 

18 State law.’’. 

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 2015 and each of 

25 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 subpart 1 of 

7 part B of title V and inserting the following: 

‘‘Subpart 1—Charter School Program’’; 

8 (2) by striking the item relating to section 5203 

9 and inserting the following: 

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

10 (3) by striking the item relating to section 5204 

11 and inserting the following: 

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

12 (4) by striking the items relating to subpart 2 of 

13 part B of title V. 


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Union Calendar No. 312 

113TH CONGRESS 

2D SESSION H. R. 10 

[Report No. 113–423] 

A BILL 

To amend the charter school program under the 

Elementary and Secondary Education Act of 1965. 

APRIL 29, 2014 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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