I 

110TH CONGRESS 

2D SESSION H. R. 5647 

To provide public charter school options for those students that attend schools 

that are in need of improvement and have been identified for restructuring and those schools with a graduation rate of less than 60 percent, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2008 

Mr. EMANUEL introduced the following bill; which was referred to the Committee on Education and Labor, and in addition to the Committee on 

Ways and Means, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To provide public charter school options for those students 

that attend schools that are in need of improvement 

and have been identified for restructuring and those 

schools with a graduation rate of less than 60 percent, 

and for other purposes. 

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


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1 TITLE I—PELL GRANTS FOR 

2 CHILDREN 

3 SECTION 101. SHORT TITLE. 

4 This title may be cited as the ‘‘Pell Grants for Kids 

5 Act of 2008’’. 

6 SEC. 102. PURPOSE. 

7 It is the purpose of this title to support State efforts 

8 to enable students who attend an identified school or a 

9 school with low graduation rate to attend a public charter 

10 school. 

11 SEC. 103. SUPPORT FOR PROVEN CHARTER SCHOOLS AND 

12 INCREASING THE SUPPLY OF HIGH QUALITY 

13 CHARTER SCHOOLS. 

14 (a) GRANTS.—Subject to advance appropriations, the 

15 Secretary shall award grants, on a competitive basis, to 

16 eligible entities for the purpose of enabling such entities 

17 to make subgrants to eligible public charter schools to 

18 allow such schools to serve additional eligible students. 

19 (b) PRIORITIES.—In awarding a grant under this sec20 tion, the Secretary shall— 

21 (1) give priority to an eligible entity— 

22 (A) that serves an area that has a large 

23 percentage of students who are enrolled in iden24 tified schools or public schools with a gradua25 tion rate of 60 percent or less as defined by 


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1 their State educational agency and other factors 

2 determined appropriate by the Secretary; 

3 (B) that oversees one or more academically 

4 successful eligible public charter schools as de5 termined by the Secretary using adequately 

6 yearly progress measures, State accountability 

7 measures, and other measures deemed appro8 priate by the Secretary; 

9 (C) that is effectively monitoring the aca10 demic success of eligible public charter schools 

11 under the jurisdiction of the eligible entity; 

12 (D) that ensures that eligible public char13 ter schools under the jurisdiction of the eligible 

14 entity receive funding (including funding for 

15 school facilities) on a per pupil basis that is 

16 commensurate with the amount of funding (in17 cluding funding for school facilities) provided by 

18 the eligible entity to traditional public schools; 

19 (E) that ensures that each local edu20 cational agency under the jurisdiction of the eli21 gible entity provides, in a timely manner, each 

22 public charter school under the jurisdiction of 

23 such local educational agency with the Federal, 

24 State, and local funds to which such school is 

25 entitled under applicable law; and 


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1 (F) that is under the jurisdiction of a 

2 State that— 

3 (i) requires public charter schools to 

4 meet State standards, administer State as5 sessment tests to enrolled students, and 

6 participate in State accountability meas7 ures; 

8 (ii) ensures that each public charter 

9 school under the jurisdiction of the State 

10 has— 

11 (I) a high degree of autonomy 

12 over the charter school’s budgets and 

13 expenditures; and 

14 (II) a written contract with an 

15 authorized public chartering agency 

16 that ensures that the school has an 

17 independent governing board and such 

18 board has a level of autonomy under 

19 such contract that the Secretary de20 termines is appropriate; and 

21 (2) consider the number of public charter 

22 schools under the jurisdiction of the State, the num23 ber of students enrolled in charter schools, and the 

24 number of children on the waiting lists for public 


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1 charter schools operating under the jurisdiction of 

2 the State. 

3 (c) AMOUNT OF GRANTS.—In determining the 

4 amount of a grant to be awarded under this section to 

5 an eligible entity, the Secretary shall take into consider6 ation— 

7 (1) the number of eligible public charter schools 

8 under the jurisdiction of the eligible entity that are 

9 operating, are approved to open, or are likely to 

10 open during the duration of the grant; 

11 (2) the number of seats for new students that 

12 could be created in such schools with such grant; 

13 and 

14 (3) the number of eligible students in the State. 

15 (d) APPLICATION REQUIREMENTS.— 

16 (1) IN GENERAL.—To be considered for a grant 

17 under this title, an eligible entity shall submit an ap18 plication to the Secretary at such time, in such man19 ner, and containing such information as the Sec20 retary may require. 

21 (2) CONTENTS.—The application under para22 graph (1) shall include, at a minimum, the following: 

23 (A) PLAN.—A plan for— 


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1 (i) identifying eligible public charter 

2 schools that are willing to receive financial 

3 assistance under a grant under this title; 

4 (ii) enrolling eligible students in eligi5 ble public charter schools; 

6 (iii) increasing the number of seats 

7 for eligible students in eligible public char8 ter schools; 

9 (iv) ensuring that eligible public char10 ter schools receiving assistance under this 

11 title enroll— 

12 (I) eligible students through a 

13 lottery for admission that is separate 

14 from the lottery for general admission 

15 to such school and is limited to the 

16 number of additional seats the schools 

17 is able to create as a result of the fi18 nancial assistance received by such 

19 school under this title; and 

20 (II) siblings of students currently 

21 enrolled in the eligible public charter 

22 school as a result of the financial as23 sistance received by the school under 

24 this title; and 


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1 (v) the manner in which the eligible 

2 entity will— 

3 (I) work with identified schools 

4 under their jurisdiction and the 

5 schools’ local educational agency to 

6 identify the parents of the eligible stu7 dents, consistent with the require8 ments of the Family Educational 

9 Rights and Privacy Act of 1974 (20 

10 U.S.C. 1232g); 

11 (II) notify parents of eligible stu12 dents of the option to transfer to an 

13 eligible public charter school receiving 

14 financial assistance under this title; 

15 (III) provide information to par16 ents of eligible students to enable the 

17 parents to make informed decisions 

18 regarding such students; 

19 (IV) ensure that an eligible stu20 dent can continue to attend an eligible 

21 public charter school if the public 

22 charter school such student was at23 tending in the previous school year is 

24 no longer an eligible public charter 

25 school; and 


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1 (V) use funds received under this 

2 title. 

3 (B) CHARTER SCHOOL INFORMATION.— 

4 The number of eligible public charter schools 

5 that are operating in the State that has juris6 diction over the eligible entity, the number of 

7 eligible public charter schools approved to open 

8 in the next school year, the number of eligible 

9 public charter schools likely to open during the 

10 duration of the grant to the eligible entity, the 

11 number of seats in eligible public charter 

12 schools that could be created if the grant is 

13 awarded, and any other information the Sec14 retary may require. 

15 (C) TRADITIONAL PUBLIC SCHOOL INFOR16 MATION.—A list of identified schools and 

17 schools with a graduation rate of 60 percent or 

18 less as defined by their State educational agen19 cy, including the name of each such school and 

20 such demographic and socioeconomic informa21 tion as the Secretary may require. 

22 SEC. 104. USE OF FUNDS. 

23 (a) IN GENERAL.—An eligible entity receiving a 

24 grant under this title may only use the funds for the fol25 lowing: 


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1 (1) SUBGRANTS.—To make a subgrant to an el2 igible public charter school, in such amount as the 

3 Secretary determines is appropriate— 

4 (A) to allow increases in such school’s en5 rollment of eligible students; 

6 (B) to support the construction and phys7 ical expansion of school buildings and campuses 

8 to meet such increased enrollment; 

9 (C) to pay costs associated with hiring ad10 ditional teachers to serve eligible students; 

11 (D) to support necessary operation activi12 ties associated with the school serving addi13 tional eligible students; and 

14 (E) to provide transportation to eligible 

15 students to and from school. 

16 (2) ADMINISTRATIVE EXPENSES.—To pay the 

17 administrative expenses of the eligible public charter 

18 schools and the eligible entity, but not to exceed five 

19 percent of the grant. 

20 (3) CREDIT ENHANCEMENT AND REVOLVING

21 LOAN FUND.—To make a competitive grant that 

22 does not exceed 20 percent of the amount of the 

23 grant to an eligible entity for credit enhancement (as 

24 defined in Sec. 5230 of the Elementary and Sec25 ondary Education Act of 1965 (20 U.S.C. 7223i))— 


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1 (A) to conduct credit enhancement initia2 tives (as defined under Section 5221 of the Ele3 mentary and Secondary Education Act of 1965 

4 (20 U.S.C. 7223)) in support of facility assist5 ance for public charter schools serving eligible 

6 students; and 

7 (B) to establish a revolving loan fund for 

8 use by an eligible public charter school receiving 

9 a subgrant under paragraph (1) from the eligi10 ble entity to allow such school to expand to 

11 serve eligible students. 

12 (b) SPECIAL RULES ON FREQUENCY.— 

13 (1) ELIGIBLE PUBLIC CHARTER SCHOOLS WITH

14 ENROLLED STUDENTS.—Each eligible entity to 

15 which the Secretary awards a grant under this title 

16 may award a subgrant to an eligible public charter 

17 school described in section 106(5)(A) for each year 

18 an eligible student attends such school. 

19 (2) LIMITATIONS ON SUBGRANTS TO DEVEL20 OPERS.—Each eligible entity to which the Secretary 

21 awards a grant under this title shall not award a 

22 subgrant to an eligible public charter school de23 scribed in section 106(5)(B) for more than two con24 secutive school years. 


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1 (c) NONPROFIT ASSISTANCE.—In carrying out ad2 ministrative tasks and outreach with financial assistance 

3 provided under this title, eligible entities may contract 

4 with an organization described in section 501(c)(3) of the 

5 Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and 

6 exempt from tax under section 501(a) of such Code (26 

7 U.S.C. 501(a)). 

8 (d) FINANCIAL RESPONSIBILITY.—The financial 

9 records of each eligible entity and eligible public charter 

10 school receiving a grant or subgrant under this title shall 

11 be maintained in accordance with generally accepted ac12 counting principles and shall be subject to an annual audit 

13 by an independent public accountant. 

14 (e) NATIONAL EVALUATION.—From the amounts ap15 propriated to carry out this title, the Secretary may use 

16 not more than one percent of such amounts to conduct 

17 an annual independent evaluation, by grant or contract, 

18 of the activities carried out under this title, including an 

19 assessment of the impact of such activities on student 

20 achievement. The Secretary shall submit to Congress a re21 port on the results of the evaluation before the end of the 

22 one-year period beginning on the date of enactment of this 

23 title and every one year thereafter. 


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1 SEC. 105. REPORTS. 

2 Each eligible entity receiving a grant under this title 

3 shall prepare and submit to the Secretary the following: 

4 (1) REPORT.—A report that contains such in5 formation as the Secretary may require concerning 

6 use of the grant funds by the eligible entity, includ7 ing the academic achievement of the students at8 tending eligible public charter schools as a result of 

9 the grant. Such report shall be submitted before the 

10 end of the two-year period beginning on the date of 

11 enactment of this title and every two years there12 after. 

13 (2) PERFORMANCE INFORMATION.—Such per14 formance information as the Secretary may require 

15 for the national evaluation conducted under section 

16 104(e). 

17 SEC. 106. DEFINITIONS. 

18 In this title, the following definitions apply: 

19 (1) ADEQUATE YEARLY PROGRESS.—The term 

20 ‘‘adequate yearly progress’’ has the meaning given 

21 such term in section 1111(b)(2) of the Elementary 

22 and Secondary Education Act of 1965 (20 U.S.C. 

23 6311(b)(2)). 

24 (2) ADMINISTRATIVE EXPENSES.—The term 

25 ‘‘administrative expenses’’ includes costs associated 

26 with— 


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1 (A) recruiting and selecting eligible stu2 dents; 

3 (B) outreach to parents; and 

4 (C) providing information to parents and 

5 school officials. 

6 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti7 ty’’ means— 

8 (A) a State educational agency; 

9 (B) an authorized public chartering agen10 cy; 

11 (C) a local educational agency; or 

12 (D) in the case of a State in which a grant 

13 is not made under section 103 in a fiscal year 

14 to an agency described in subparagraphs (A), 

15 (B), or (C), an organization described in section 

16 501(c)(3) of the Internal Revenue Code of 1986 

17 (26 U.S.C. 501(c)(3)) and exempt from tax 

18 under section 501(a) of such Code (26 U.S.C. 

19 501(a)). 

20 (4) ELIGIBLE STUDENT.—The term ‘‘eligible 

21 student’’ means a student who— 

22 (A) with respect to a school identified for 

23 restructuring under section 1116(b)(8) of the 

24 Elementary and Secondary Education Act of 

25 1965 (20 U.S.C. 6316(b)(8))— 


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1 (i) is eligible to enroll in the earliest 

2 grade offered by the school and attended 

3 the school for the entire school year pre4 ceding the date of such identification; or 

5 (ii) transfers to the school to attend 

6 any grade beyond the earliest grade offered 

7 by the school and attends the school for 

8 the remainder of the school year in which 

9 such transfer occurs; or 

10 (B) in the immediately preceding school 

11 year, occupied a seat created as a result of fi12 nancial assistance under this title at an eligible 

13 public charter school. 

14 (5) ELIGIBLE PUBLIC CHARTER SCHOOL.—The 

15 term ‘‘eligible public charter school’’ means— 

16 (A) a charter school (as defined under sec17 tion 5210 (1) of the Elementary and Secondary 

18 Education Act of 1965 (20 U.S.C. 7221i(1))) 

19 (including the campuses of such school) that— 

20 (i) has made adequate yearly progress 

21 for the last two consecutive school years; 

22 or 

23 (ii) successfully meets qualifications 

24 set forth by the State educational agency 

25 or the Secretary; or 


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1 (B) a charter school that is being devel2 oped by developer (as defined under section 

3 5210(2) of the Elementary and Secondary Edu4 cation Act of 1965 (20 U.S.C. 7221i(2))). 

5 (6) IDENTIFIED SCHOOL.—The term ‘‘identified 

6 school’’ means a school identified for restructuring 

7 under section 1116(b)(8) of the Elementary and 

8 Secondary Education Act of 1965 (20 U.S.C. 

9 6316(b)(8)). 

10 (7) TRADITIONAL PUBLIC SCHOOL.—The term 

11 ‘‘traditional public school’’ does not include charter 

12 schools as defined under section 5210(1) of the Ele13 mentary and Secondary Education Act of 1965 (20 

14 U.S.C. 7221i(1)). 

15 (8) SCHOOL YEAR.—The term ‘‘school year’’ 

16 has the meaning given such term in section 12(d) of 

17 the Richard B. Russell National School Lunch Act 

18 (42 U.S.C. 1760(d)). 

19 (9) STATE ACCOUNTABILITY MEASURES.—The 

20 term ‘‘State accountability measures’’ includes meas21 ures undertaken under an accountability system de22 veloped and implemented by a State under section 

23 1111(b)(2) of the Elementary and Secondary Edu24 cation Act of 1965 (20 U.S.C. 6311(b)(2)). 


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1 SEC. 107. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated to carry out 

3 this title $300,000,000 for fiscal year 2009 and such sums 

4 as may be necessary for each of the four succeeding fiscal 

5 years. 

6 TITLE II—FAIR SHARE FOR 

7 GOVERNMENT CONTRACTORS 

8 SEC. 201. SHORT TITLE. 

9 This title may be cited as the ‘‘Fair Share Act of 

10 2008’’. 

11 SEC. 202. CERTAIN DOMESTICALLY CONTROLLED FOREIGN 

12 PERSONS PERFORMING SERVICES UNDER 

13 CONTRACT WITH UNITED STATES GOVERN14 MENT TREATED AS AMERICAN EMPLOYERS. 

15 (a) FICA TAXES.—Section 3121 of the Internal Rev16 enue Code of 1986 (relating to definitions) is amended by 

17 adding at the end the following new subsection: 

18 ‘‘(z) TREATMENT OF CERTAIN FOREIGN PERSONS AS

19 AMERICAN EMPLOYERS.— 

20 ‘‘(1) IN GENERAL.—If any employee of a for21 eign person is performing services in connection with 

22 a contract between the United States Government 

23 (or any instrumentality thereof) and any member of 

24 any domestically controlled group of entities which 

25 includes such foreign person, such foreign person 

26 shall be treated for purposes of this chapter as an 


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1 American employer with respect to such services per2 formed by such employee. 

3 ‘‘(2) DOMESTICALLY CONTROLLED GROUP OF

4 ENTITIES.—For purposes of this subsection— 

5 ‘‘(A) IN GENERAL.—The term ‘domesti6 cally controlled group of entities’ means a con7 trolled group of entities the common parent of 

8 which is a domestic corporation. 

9 ‘‘(B) CONTROLLED GROUP OF ENTITIES.— 

10 The term ‘controlled group of entities’ means a 

11 controlled group of corporations as defined in 

12 section 1563(a)(1), except that— 

13 ‘‘(i) ‘more than 50 percent’ shall be 

14 substituted for ‘at least 80 percent’ each 

15 place it appears therein, and 

16 ‘‘(ii) the determination shall be made 

17 without regard to subsections (a)(4) and 

18 (b)(2) of section 1563. 

19 A partnership or any other entity (other than a 

20 corporation) shall be treated as a member of a 

21 controlled group of entities if such entity is con22 trolled (within the meaning of section 

23 954(d)(3)) by members of such group (includ24 ing any entity treated as a member of such 

25 group by reason of this sentence). 


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1 ‘‘(3) LIABILITY OF COMMON PARENT.—In the 

2 case of a foreign person who is a member of any do3 mestically controlled group of entities, the common 

4 parent of such group shall be jointly and severally 

5 liable for any tax under this chapter for which such 

6 foreign person is liable by reason of this subsection. 

7 ‘‘(4) CROSS REFERENCE.—For relief from taxes 

8 in cases covered by certain international agreements, 

9 see sections 3101(c) and 3111(c).’’. 

10 (b) SOCIAL SECURITY BENEFITS.—Subsection (e) of 

11 section 210 of the Social Security Act (42 U.S.C. 410(e)) 

12 is amended— 

13 (1) by striking ‘‘(e) The term’’ and inserting 

14 ‘‘(e)(1) The term’’, 

15 (2) by redesignating paragraphs (1) through 

16 (6) as subparagraphs (A) through (F), respectively, 

17 and 

18 (3) by adding at the end the following new 

19 paragraph: 

20 ‘‘(2)(A) If any employee of a foreign person is 

21 performing services in connection with a contract be22 tween the United States Government (or any instru23 mentality thereof) and any member of any domesti24 cally controlled group of entities which includes such 

25 foreign person, such foreign person shall be treated 


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1 for purposes of this chapter as an American em2 ployer with respect to such services performed by 

3 such employee. 

4 ‘‘(B) For purposes of this paragraph— 

5 ‘‘(i) The term ‘domestically controlled 

6 group of entities’ means a controlled group of 

7 entities the common parent of which is a do8 mestic corporation. 

9 ‘‘(ii) The term ‘controlled group of entities’ 

10 means a controlled group of corporations as de11 fined in section 1563(a)(1) of the Internal Rev12 enue Code of 1986, except that— 

13 ‘‘(I) ‘more than 50 percent’ shall be 

14 substituted for ‘at least 80 percent’ each 

15 place it appears therein, and 

16 ‘‘(II) the determination shall be made 

17 without regard to subsections (a)(4) and 

18 (b)(2) of section 1563 of such Code. 

19 A partnership or any other entity (other than a 

20 corporation) shall be treated as a member of a 

21 controlled group of entities if such entity is con22 trolled (within the meaning of section 954(d)(3) 

23 of such Code) by members of such group (in24 cluding any entity treated as a member of such 

25 group by reason of this sentence).’’. 


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1 (c) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to services performed after the 

3 date of the enactment of this title. 

Æ 


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