the Secretary, at the end of each year of the 3-year grant 
period and at the end of such grant period, a report on— 
‘‘(1) the number of students served by each 
subgrant awarded under this section and, if applica-
ble, how many new students were served during each 
year of the subgrant period; 
‘‘(2) the number of subgrants awarded under 
this section to carry out each of the following— 
‘‘(A) the opening of new charter schools; 
‘‘(B) the replication of high-quality charter 
school models; and 
‘‘(C) the expansion of high-quality charter 
schools; 
‘‘(3) the progress the entity made toward meet-
ing the priorities described in subsection (f)(2), as 
applicable; 
‘‘(4) how the entity met the objectives of the 
quality charter school program described in the enti-
ty’s application under subsection (e); 
‘‘(5) how the entity complied with, and ensured 
that eligible applicants complied with, the assurances 
described in the entity’s application; and 
‘‘(6) how the entity worked with authorized 
public chartering agencies, including how the agen-
cies worked with the management company or lead-
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
ership of the schools that received subgrants under 
this section. 
‘‘(i) COVERED ENTITY DEFINED.—For purposes of 
this section, the term ‘covered entity’ means— 
‘‘(1) a State educational agency; 
‘‘(2) an authorized public chartering agency 
that is located in a State in which neither the State 
educational agency nor the Governor of the State 
has received a grant under this section; 
‘‘(3) a Governor of a State; or 
‘‘(4) a local educational agency that— 
‘‘(A) is not a charter school that is consid-
ered a local educational agency under State law; 
and 
‘‘(B) is located in a State in which neither 
the State educational agency nor the Governor 
of the State has received a grant under this sec-
tion.’’. 
SEC. 6. FACILITIES FINANCING ASSISTANCE. 
Section 5204 (20 U.S.C. 7221c) is amended to read 
as follows: 
‘‘SEC. 5204. FACILITIES FINANCING ASSISTANCE. 
‘‘(a) GRANTS TO ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—The Secretary shall use not 
less than 65 percent of the amount reserved under 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
section 5202(b)(1) to award grants to eligible enti-
ties that have the highest-quality applications ap-
proved under subsection (d), after considering the 
diversity of such applications, to demonstrate inno-
vative methods of assisting charter schools to ad-
dress the cost of acquiring, constructing, and ren-
ovating facilities by enhancing the availability of 
loan or bond financing. 
‘‘(2) ELIGIBLE
ENTITY
DEFINED.—For pur-
poses of this section, the term ‘eligible entity’ 
means— 
‘‘(A) a public entity, such as a State or 
local governmental entity; 
‘‘(B) a private nonprofit entity; or 
‘‘(C) a consortium of entities described in 
subparagraphs (A) and (B). 
‘‘(b) GRANTEE SELECTION.—The Secretary shall 
evaluate each application submitted under subsection (d), 
and shall determine whether the application is sufficient 
to merit approval. 
‘‘(c) GRANT CHARACTERISTICS.—In awarding grants 
under subsection (a), the Secretary shall award multiple 
grants of sufficient size, scope, and quality so as to ensure 
an effective demonstration of an innovative means of en-
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
hancing credit for the financing of charter school acquisi-
tion, construction, or renovation. 
‘‘(d) APPLICATIONS.— 
‘‘(1) IN GENERAL.—To receive a grant under 
subsection (a), an eligible entity shall submit to the 
Secretary an application in such form as the Sec-
retary may reasonably require. 
‘‘(2) CONTENTS.—An application submitted 
under paragraph (1) shall contain— 
‘‘(A) a statement identifying the activities 
proposed to be undertaken with funds received 
under subsection (a), including how the eligible 
entity will determine which charter schools will 
receive assistance, and how much and what 
types of assistance charter schools will receive; 
‘‘(B) a description of the involvement of 
charter schools in the application’s development 
and the design of the proposed activities; 
‘‘(C) a description of the eligible entity’s 
expertise in capital market financing; 
‘‘(D) a description of how the proposed ac-
tivities will leverage the maximum amount of 
private-sector financing capital relative to the 
amount of government funding used and other-
wise enhance credit available to charter schools, 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
including how the entity will offer a combina-
tion of rates and terms more favorable than the 
rates and terms that a charter school could re-
ceive without assistance from the entity under 
this section; 
‘‘(E) a description of how the eligible enti-
ty possesses sufficient expertise in education to 
evaluate the likelihood of success of a charter 
school program for which facilities financing is 
sought; 
‘‘(F) a description of how the eligible enti-
ty will encourage energy-efficient school build-
ing practices; 
‘‘(G) in the case of an application sub-
mitted by a State governmental entity, a de-
scription of the actions that the entity has 
taken, or will take, to ensure that charter 
schools within the State receive the funding the 
charter schools need to have adequate facilities; 
and 
‘‘(H) such other information as the Sec-
retary may reasonably require. 
‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible 
entity receiving a grant under this section shall use the 
funds deposited in the reserve account established under 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
subsection (f) to assist one or more charter schools to ac-
cess private sector capital to accomplish one or both of 
the following objectives: 
‘‘(1) The acquisition (by purchase, lease, dona-
tion, or otherwise) of an interest (including an inter-
est held by a third party for the benefit of a charter 
school) in improved or unimproved real property 
that is necessary to commence or continue the oper-
ation of a charter school. 
‘‘(2) The construction of new facilities, includ-
ing predevelopment costs, or the renovation, repair, 
or alteration of existing facilities, necessary to com-
mence or continue the operation of a charter school. 
‘‘(f) RESERVE ACCOUNT.— 
‘‘(1) USE OF FUNDS.—To assist charter schools 
to accomplish the objectives described in subsection 
(e), an eligible entity receiving a grant under sub-
section (a) shall, in accordance with State and local 
law, directly or indirectly, alone or in collaboration 
with others, deposit the funds received under sub-
section (a) (other than funds used for administrative 
costs in accordance with subsection (g) of this sec-
tion) in a reserve account established and main-
tained by the eligible entity for this purpose. 
Amounts deposited in such account shall be used by 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
the eligible entity for one or more of the following 
purposes: 
‘‘(A) Guaranteeing, insuring, and rein-
suring bonds, notes, evidences of debt, loans, 
and interests therein, the proceeds of which are 
used for an objective described in subsection 
(e). 
‘‘(B) Guaranteeing and insuring leases of 
personal and real property for an objective de-
scribed in subsection (e). 
‘‘(C) Facilitating financing by identifying 
potential lending sources, encouraging private 
lending, and other similar activities that di-
rectly promote lending to, or for the benefit of, 
charter schools. 
‘‘(D) Facilitating the issuance of bonds by 
charter schools, or by other public entities for 
the benefit of charter schools, by providing 
technical, administrative, and other appropriate 
assistance (including the recruitment of bond 
counsel, underwriters, and potential investors 
and the consolidation of multiple charter school 
projects within a single bond issue). 
‘‘(2) INVESTMENT.—Funds received under this 
section and deposited in the reserve account estab-
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
lished under paragraph (1) shall be invested in obli-
gations issued or guaranteed by the United States or 
a State, or in other similarly low-risk securities. 
‘‘(3) REINVESTMENT OF EARNINGS.—Any earn-
ings on funds received under subsection (a) shall be 
deposited in the reserve account established under 
paragraph (1) and used in accordance with such 
paragraph. 
‘‘(g) LIMITATION ON ADMINISTRATIVE COSTS.—An 
eligible entity may use not more than 2.5 percent of the 
funds received under subsection (a) for the administrative 
costs of carrying out its responsibilities under this section 
(excluding subsection (k)). 
‘‘(h) AUDITS AND REPORTS.— 
‘‘(1) FINANCIAL
RECORD
MAINTENANCE
AND 
AUDIT.—The financial records of each eligible entity 
receiving a grant under subsection (a) shall be main-
tained in accordance with generally accepted ac-
counting principles and shall be subject to an annual 
audit by an independent public accountant. 
‘‘(2) REPORTS.— 
‘‘(A) GRANTEE ANNUAL REPORTS.—Each 
eligible entity receiving a grant under sub-
section (a) annually shall submit to the Sec-
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
retary a report of its operations and activities 
under this section. 
‘‘(B) CONTENTS.—Each annual report 
submitted under subparagraph (A) shall in-
clude— 
‘‘(i) a copy of the most recent finan-
cial statements, and any accompanying 
opinion on such statements, prepared by 
the independent public accountant review-
ing the financial records of the eligible en-
tity; 
‘‘(ii) a copy of any report made on an 
audit of the financial records of the eligible 
entity that was conducted under paragraph 
(1) during the reporting period; 
‘‘(iii) an evaluation by the eligible en-
tity of the effectiveness of its use of the 
Federal funds provided under subsection 
(a) in leveraging private funds; 
‘‘(iv) a listing and description of the 
charter schools served during the reporting 
period, including the amount of funds used 
by each school, the type of project facili-
tated by the grant, and the type of assist-
ance provided to the charter schools; 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
‘‘(v) a description of the activities car-
ried out by the eligible entity to assist 
charter schools in meeting the objectives 
set forth in subsection (e); and 
‘‘(vi) a description of the characteris-
tics of lenders and other financial institu-
tions participating in the activities under-
taken by the eligible entity under this sec-
tion (excluding subsection (k)) during the 
reporting period. 
‘‘(C) SECRETARIAL
REPORT.—The Sec-
retary shall review the reports submitted under 
subparagraph (A) and shall provide a com-
prehensive annual report to Congress on the ac-
tivities conducted under this section (excluding 
subsection (k)). 
‘‘(i) NO FULL FAITH AND CREDIT FOR GRANTEE 
OBLIGATION.—No financial obligation of an eligible entity 
entered into pursuant to this section (such as an obliga-
tion under a guarantee, bond, note, evidence of debt, or 
loan) shall be an obligation of, or guaranteed in any re-
spect by, the United States. The full faith and credit of 
the United States is not pledged to the payment of funds 
which may be required to be paid under any obligation 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
made by an eligible entity pursuant to any provision of 
this section. 
‘‘(j) RECOVERY OF FUNDS.— 
‘‘(1) IN GENERAL.—The Secretary, in accord-
ance with chapter 37 of title 31, United States 
Code, shall collect— 
‘‘(A) all of the funds in a reserve account 
established by an eligible entity under sub-
section (f)(1) if the Secretary determines, not 
earlier than 2 years after the date on which the 
eligible entity first received funds under this 
section (excluding subsection (k)), that the eli-
gible entity has failed to make substantial 
progress in carrying out the purposes described 
in subsection (f)(1); or 
‘‘(B) all or a portion of the funds in a re-
serve account established by an eligible entity 
under subsection (f)(1) if the Secretary deter-
mines that the eligible entity has permanently 
ceased to use all or a portion of the funds in 
such account to accomplish any purpose de-
scribed in subsection (f)(1). 
‘‘(2) EXERCISE OF AUTHORITY.—The Secretary 
shall not exercise the authority provided in para-
graph (1) to collect from any eligible entity any 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
funds that are being properly used to achieve one or 
more of the purposes described in subsection (f)(1). 
‘‘(3) PROCEDURES.—The provisions of sections 
451, 452, and 458 of the General Education Provi-
sions Act shall apply to the recovery of funds under 
paragraph (1). 
‘‘(4) CONSTRUCTION.—This subsection shall 
not be construed to impair or affect the authority of 
the Secretary to recover funds under part D of the 
General Education Provisions Act. 
‘‘(k) PER-PUPIL FACILITIES AID PROGRAM.— 
‘‘(1) DEFINITION OF PER-PUPIL FACILITIES AID 
PROGRAM.—In this subsection, the term ‘per-pupil 
facilities aid program’ means a program in which a 
State makes payments, on a per-pupil basis, to char-
ter schools to provide the schools with financing— 
‘‘(A) that is dedicated solely for funding 
charter school facilities; or 
‘‘(B) a portion of which is dedicated for 
funding charter school facilities. 
‘‘(2) GRANTS.— 
‘‘(A) IN GENERAL.—From the amount re-
served under section 5202(b)(1) remaining 
after the Secretary makes grants under sub-
section (a), the Secretary shall make grants, on 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
lishing or enhancing, and administering the per- 
pupil facilities aid program. 
‘‘(E) MULTIPLE
GRANTS.—A State may 
receive more than 1 grant under this sub-
section, so long as the amount of such funds 
provided to charter schools increases with each 
successive grant. 
‘‘(3) USE OF FUNDS.— 
‘‘(A) IN GENERAL.—A State that receives 
a grant under this subsection shall use the 
funds made available through the grant to es-
tablish or enhance, and administer, a per-pupil 
facilities aid program for charter schools in the 
State of the applicant. 
‘‘(B) EVALUATIONS; TECHNICAL
ASSIST-
ANCE; 
DISSEMINATION.—From the amount 
made available to a State through a grant 
under this subsection for a fiscal year, the State 
may reserve not more than 5 percent to carry 
out evaluations, to provide technical assistance, 
and to disseminate information. 
‘‘(C) SUPPLEMENT, 
NOT
SUPPLANT.— 
Funds made available under this subsection 
shall be used to supplement, and not supplant, 
State, and local public funds expended to pro-
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
vide per pupil facilities aid programs, oper-
ations financing programs, or other programs, 
for charter schools. 
‘‘(4) REQUIREMENTS.— 
‘‘(A) 
VOLUNTARY
PARTICIPATION.—No 
State may be required to participate in a pro-
gram carried out under this subsection. 
‘‘(B) STATE LAW.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), to be eligible to receive 
a grant under this subsection, a State shall 
establish or enhance, and administer, a 
per-pupil facilities aid program for charter 
schools in the State, that— 
‘‘(I) is specified in State law; and 
‘‘(II) provides annual financing, 
on a per-pupil basis, for charter 
school facilities. 
‘‘(ii) 
SPECIAL
RULE.—Notwith-
standing clause (i), a State that is required 
under State law to provide its charter 
schools with access to adequate facility 
space, but which does not have a per-pupil 
facilities aid program for charter schools 
specified in State law, may be eligible to 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
receive a grant under this subsection if the 
State agrees to use the funds to develop a 
per-pupil facilities aid program consistent 
with the requirements of this subsection. 
‘‘(5) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, a State shall submit an 
application to the Secretary at such time, in such 
manner, and containing such information as the Sec-
retary may require.’’. 
SEC. 7. NATIONAL ACTIVITIES. 
Section 5205 (20 U.S.C. 7221d) is amended to read 
as follows: 
‘‘SEC. 5205. NATIONAL ACTIVITIES AND GRANTS FOR LOCAL 
ACTIVITIES. 
‘‘(a) TECHNICAL ASSISTANCE
AND BEST PRAC-
TICES.—From the amount reserved under section 
5202(b)(2) for carrying out this subsection, the Secretary 
shall— 
‘‘(1) disseminate technical assistance to covered 
entities in awarding subgrants under section 5203, 
and eligible entities and States receiving grants 
under section 5204; and 
‘‘(2) disseminate best practices. 
‘‘(b) EVALUATION.—From the amount reserved 
under section 5202(b)(2) for carrying out this subsection, 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
the Secretary shall, in partnership with the Institute for 
Education Sciences— 
‘‘(1) develop relevant performance metrics, in-
cluding student outcome data, for covered entities, 
eligible applicants, and charter schools that receive 
funds under section 5203; 
‘‘(2) assist such covered entities, eligible appli-
cants, and charter schools in collecting and submit-
ting, on an annual basis, data on such performance 
metrics to the Secretary; 
‘‘(3) evaluate the performance of and conduct 
related research to— 
‘‘(A) determine which policies and prac-
tices of covered entities, eligible applicants, and 
charter schools have the greatest impact on stu-
dent achievement; 
‘‘(B) drive continuous improvement with 
respect to relevant performance metrics, includ-
ing student outcome data, for covered entities, 
eligible applicants, and charter schools that re-
ceive funds under section 5203; and 
‘‘(C) inform the distribution of funds to 
higher performing covered entities, eligible ap-
plicants, and charter schools; and 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
‘‘(4) disseminate the findings of the research, 
evaluation, and data collection under this subsection 
to maximize lessons learned for other educators, 
charter schools, and policy makers. 
‘‘(c) GRANTS FOR LOCAL ACTIVITIES.— 
‘‘(1) IN GENERAL.—From the amount reserved 
under section 5202(b)(3), the Secretary shall make 
grants, on a competitive basis, to eligible applicants 
for the purpose of carrying out the activities de-
scribed in section 5202(a)(1), clauses (i) through 
(iii) of section 5203(a)(1)(A), and section 5203(g). 
‘‘(2) TERMS AND CONDITIONS.—Except as oth-
erwise provided in this subsection, each grant award-
ed under this subsection shall have the same terms 
and conditions as a grant awarded to covered enti-
ties under section 5203, including the grant limita-
tions described in subparagraphs (A) and (B) in sec-
tion 5203(d)(1), except that— 
‘‘(A) a charter school that has previously 
used funds received under this subpart for plan-
ning or charter school program design to open 
a new charter school may not use funds under 
this subsection for such planning or program 
design; and 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS
‘‘(B) notwithstanding subparagraph (A), 
an eligible applicant that is a charter manage-
ment organization may receive more than 1 
grant under this subsection during a grant pe-
riod to expand a high-quality charter school, 
replicate a high-quality charter school model, or 
open or one or more high-quality charter 
schools that are based on the charter school 
model for which the eligible applicant has pre-
sented evidence of success to the Secretary. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) the term ‘charter management orga-
nization’ a nonprofit organization, other non-
profit entity, or a group or consortium of such 
organizations or entities that— 
‘‘(i) operates, manages, or oversees 
multiple charter schools by centralizing or 
sharing certain functions and resources 
among such schools; or 
‘‘(ii) desires to open, replicate, or ex-
pand a high-quality charter school. 
‘‘(B) the term ‘eligible applicant’ means— 
VerDate Mar 15 2010 
05:36 Jun 06, 2013
Jkt 029200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H2252.IH
H2252
smartinez on DSK6TPTVN1PROD with BILLS