TITLE I—PELL GRANTS FOR 
CHILDREN 
SECTION 101. SHORT TITLE. 
This title may be cited as the ‘‘Pell Grants for Kids 
Act of 2008’’. 
SEC. 102. PURPOSE. 
It is the purpose of this title to support State efforts 
to enable students who attend an identified school or a 
school with low graduation rate to attend a public charter 
school. 
SEC. 103. SUPPORT FOR PROVEN CHARTER SCHOOLS AND 
INCREASING THE SUPPLY OF HIGH QUALITY 
CHARTER SCHOOLS. 
(a) GRANTS.—Subject to advance appropriations, the 
Secretary shall award grants, on a competitive basis, to 
eligible entities for the purpose of enabling such entities 
to make subgrants to eligible public charter schools to 
allow such schools to serve additional eligible students. 
(b) PRIORITIES.—In awarding a grant under this sec-
tion, the Secretary shall— 
(1) give priority to an eligible entity— 
(A) that serves an area that has a large 
percentage of students who are enrolled in iden-
tified schools or public schools with a gradua-
tion rate of 60 percent or less as defined by 
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their State educational agency and other factors 
determined appropriate by the Secretary; 
(B) that oversees one or more academically 
successful eligible public charter schools as de-
termined by the Secretary using adequately 
yearly progress measures, State accountability 
measures, and other measures deemed appro-
priate by the Secretary; 
(C) that is effectively monitoring the aca-
demic success of eligible public charter schools 
under the jurisdiction of the eligible entity; 
(D) that ensures that eligible public char-
ter schools under the jurisdiction of the eligible 
entity receive funding (including funding for 
school facilities) on a per pupil basis that is 
commensurate with the amount of funding (in-
cluding funding for school facilities) provided by 
the eligible entity to traditional public schools; 
(E) that ensures that each local edu-
cational agency under the jurisdiction of the eli-
gible entity provides, in a timely manner, each 
public charter school under the jurisdiction of 
such local educational agency with the Federal, 
State, and local funds to which such school is 
entitled under applicable law; and 
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(F) that is under the jurisdiction of a 
State that— 
(i) requires public charter schools to 
meet State standards, administer State as-
sessment tests to enrolled students, and 
participate in State accountability meas-
ures; 
(ii) ensures that each public charter 
school under the jurisdiction of the State 
has— 
(I) a high degree of autonomy 
over the charter school’s budgets and 
expenditures; and 
(II) a written contract with an 
authorized public chartering agency 
that ensures that the school has an 
independent governing board and such 
board has a level of autonomy under 
such contract that the Secretary de-
termines is appropriate; and 
(2) consider the number of public charter 
schools under the jurisdiction of the State, the num-
ber of students enrolled in charter schools, and the 
number of children on the waiting lists for public 
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charter schools operating under the jurisdiction of 
the State. 
(c) AMOUNT
OF
GRANTS.—In determining the 
amount of a grant to be awarded under this section to 
an eligible entity, the Secretary shall take into consider-
ation— 
(1) the number of eligible public charter schools 
under the jurisdiction of the eligible entity that are 
operating, are approved to open, or are likely to 
open during the duration of the grant; 
(2) the number of seats for new students that 
could be created in such schools with such grant; 
and 
(3) the number of eligible students in the State. 
(d) APPLICATION REQUIREMENTS.— 
(1) IN GENERAL.—To be considered for a grant 
under this title, an eligible entity shall submit an ap-
plication to the Secretary at such time, in such man-
ner, and containing such information as the Sec-
retary may require. 
(2) CONTENTS.—The application under para-
graph (1) shall include, at a minimum, the following: 
(A) PLAN.—A plan for— 
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(i) identifying eligible public charter 
schools that are willing to receive financial 
assistance under a grant under this title; 
(ii) enrolling eligible students in eligi-
ble public charter schools; 
(iii) increasing the number of seats 
for eligible students in eligible public char-
ter schools; 
(iv) ensuring that eligible public char-
ter schools receiving assistance under this 
title enroll— 
(I) eligible students through a 
lottery for admission that is separate 
from the lottery for general admission 
to such school and is limited to the 
number of additional seats the schools 
is able to create as a result of the fi-
nancial assistance received by such 
school under this title; and 
(II) siblings of students currently 
enrolled in the eligible public charter 
school as a result of the financial as-
sistance received by the school under 
this title; and 
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(v) the manner in which the eligible 
entity will— 
(I) work with identified schools 
under 
their 
jurisdiction 
and 
the 
schools’ local educational agency to 
identify the parents of the eligible stu-
dents, consistent with the require-
ments of the Family Educational 
Rights and Privacy Act of 1974 (20 
U.S.C. 1232g); 
(II) notify parents of eligible stu-
dents of the option to transfer to an 
eligible public charter school receiving 
financial assistance under this title; 
(III) provide information to par-
ents of eligible students to enable the 
parents to make informed decisions 
regarding such students; 
(IV) ensure that an eligible stu-
dent can continue to attend an eligible 
public charter school if the public 
charter school such student was at-
tending in the previous school year is 
no longer an eligible public charter 
school; and 
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(V) use funds received under this 
title. 
(B) CHARTER
SCHOOL
INFORMATION.— 
The number of eligible public charter schools 
that are operating in the State that has juris-
diction over the eligible entity, the number of 
eligible public charter schools approved to open 
in the next school year, the number of eligible 
public charter schools likely to open during the 
duration of the grant to the eligible entity, the 
number of seats in eligible public charter 
schools that could be created if the grant is 
awarded, and any other information the Sec-
retary may require. 
(C) TRADITIONAL PUBLIC SCHOOL INFOR-
MATION.—A list of identified schools and 
schools with a graduation rate of 60 percent or 
less as defined by their State educational agen-
cy, including the name of each such school and 
such demographic and socioeconomic informa-
tion as the Secretary may require. 
SEC. 104. USE OF FUNDS. 
(a) IN GENERAL.—An eligible entity receiving a 
grant under this title may only use the funds for the fol-
lowing: 
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(1) SUBGRANTS.—To make a subgrant to an el-
igible public charter school, in such amount as the 
Secretary determines is appropriate— 
(A) to allow increases in such school’s en-
rollment of eligible students; 
(B) to support the construction and phys-
ical expansion of school buildings and campuses 
to meet such increased enrollment; 
(C) to pay costs associated with hiring ad-
ditional teachers to serve eligible students; 
(D) to support necessary operation activi-
ties associated with the school serving addi-
tional eligible students; and 
(E) to provide transportation to eligible 
students to and from school. 
(2) ADMINISTRATIVE EXPENSES.—To pay the 
administrative expenses of the eligible public charter 
schools and the eligible entity, but not to exceed five 
percent of the grant. 
(3) CREDIT
ENHANCEMENT
AND
REVOLVING 
LOAN
FUND.—To make a competitive grant that 
does not exceed 20 percent of the amount of the 
grant to an eligible entity for credit enhancement (as 
defined in Sec. 5230 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7223i))— 
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(A) to conduct credit enhancement initia-
tives (as defined under Section 5221 of the Ele-
mentary and Secondary Education Act of 1965 
(20 U.S.C. 7223)) in support of facility assist-
ance for public charter schools serving eligible 
students; and 
(B) to establish a revolving loan fund for 
use by an eligible public charter school receiving 
a subgrant under paragraph (1) from the eligi-
ble entity to allow such school to expand to 
serve eligible students. 
(b) SPECIAL RULES ON FREQUENCY.— 
(1) ELIGIBLE PUBLIC CHARTER SCHOOLS WITH 
ENROLLED
STUDENTS.—Each eligible entity to 
which the Secretary awards a grant under this title 
may award a subgrant to an eligible public charter 
school described in section 106(5)(A) for each year 
an eligible student attends such school. 
(2) LIMITATIONS
ON
SUBGRANTS
TO
DEVEL-
OPERS.—Each eligible entity to which the Secretary 
awards a grant under this title shall not award a 
subgrant to an eligible public charter school de-
scribed in section 106(5)(B) for more than two con-
secutive school years. 
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(c) NONPROFIT ASSISTANCE.—In carrying out ad-
ministrative tasks and outreach with financial assistance 
provided under this title, eligible entities may contract 
with an organization described in section 501(c)(3) of the 
Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and 
exempt from tax under section 501(a) of such Code (26 
U.S.C. 501(a)). 
(d) FINANCIAL
RESPONSIBILITY.—The financial 
records of each eligible entity and eligible public charter 
school receiving a grant or subgrant under this title shall 
be maintained in accordance with generally accepted ac-
counting principles and shall be subject to an annual audit 
by an independent public accountant. 
(e) NATIONAL EVALUATION.—From the amounts ap-
propriated to carry out this title, the Secretary may use 
not more than one percent of such amounts to conduct 
an annual independent evaluation, by grant or contract, 
of the activities carried out under this title, including an 
assessment of the impact of such activities on student 
achievement. The Secretary shall submit to Congress a re-
port on the results of the evaluation before the end of the 
one-year period beginning on the date of enactment of this 
title and every one year thereafter. 
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SEC. 105. REPORTS. 
Each eligible entity receiving a grant under this title 
shall prepare and submit to the Secretary the following: 
(1) REPORT.—A report that contains such in-
formation as the Secretary may require concerning 
use of the grant funds by the eligible entity, includ-
ing the academic achievement of the students at-
tending eligible public charter schools as a result of 
the grant. Such report shall be submitted before the 
end of the two-year period beginning on the date of 
enactment of this title and every two years there-
after. 
(2) PERFORMANCE INFORMATION.—Such per-
formance information as the Secretary may require 
for the national evaluation conducted under section 
104(e). 
SEC. 106. DEFINITIONS. 
In this title, the following definitions apply: 
(1) ADEQUATE YEARLY PROGRESS.—The term 
‘‘adequate yearly progress’’ has the meaning given 
such term in section 1111(b)(2) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 
6311(b)(2)). 
(2) ADMINISTRATIVE
EXPENSES.—The term 
‘‘administrative expenses’’ includes costs associated 
with— 
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(A) recruiting and selecting eligible stu-
dents; 
(B) outreach to parents; and 
(C) providing information to parents and 
school officials. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a State educational agency; 
(B) an authorized public chartering agen-
cy; 
(C) a local educational agency; or 
(D) in the case of a State in which a grant 
is not made under section 103 in a fiscal year 
to an agency described in subparagraphs (A), 
(B), or (C), an organization described in section 
501(c)(3) of the Internal Revenue Code of 1986 
(26 U.S.C. 501(c)(3)) and exempt from tax 
under section 501(a) of such Code (26 U.S.C. 
501(a)). 
(4) ELIGIBLE
STUDENT.—The term ‘‘eligible 
student’’ means a student who— 
(A) with respect to a school identified for 
restructuring under section 1116(b)(8) of the 
Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6316(b)(8))— 
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(i) is eligible to enroll in the earliest 
grade offered by the school and attended 
the school for the entire school year pre-
ceding the date of such identification; or 
(ii) transfers to the school to attend 
any grade beyond the earliest grade offered 
by the school and attends the school for 
the remainder of the school year in which 
such transfer occurs; or 
(B) in the immediately preceding school 
year, occupied a seat created as a result of fi-
nancial assistance under this title at an eligible 
public charter school. 
(5) ELIGIBLE PUBLIC CHARTER SCHOOL.—The 
term ‘‘eligible public charter school’’ means— 
(A) a charter school (as defined under sec-
tion 5210 (1) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7221i(1))) 
(including the campuses of such school) that— 
(i) has made adequate yearly progress 
for the last two consecutive school years; 
or 
(ii) successfully meets qualifications 
set forth by the State educational agency 
or the Secretary; or 
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(B) a charter school that is being devel-
oped by developer (as defined under section 
5210(2) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7221i(2))). 
(6) IDENTIFIED SCHOOL.—The term ‘‘identified 
school’’ means a school identified for restructuring 
under section 1116(b)(8) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 
6316(b)(8)). 
(7) TRADITIONAL PUBLIC SCHOOL.—The term 
‘‘traditional public school’’ does not include charter 
schools as defined under section 5210(1) of the Ele-
mentary and Secondary Education Act of 1965 (20 
U.S.C. 7221i(1)). 
(8) SCHOOL
YEAR.—The term ‘‘school year’’ 
has the meaning given such term in section 12(d) of 
the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1760(d)). 
(9) STATE ACCOUNTABILITY MEASURES.—The 
term ‘‘State accountability measures’’ includes meas-
ures undertaken under an accountability system de-
veloped and implemented by a State under section 
1111(b)(2) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311(b)(2)). 
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SEC. 107. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this title $300,000,000 for fiscal year 2009 and such sums 
as may be necessary for each of the four succeeding fiscal 
years. 
TITLE II—FAIR SHARE FOR 
GOVERNMENT CONTRACTORS 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Fair Share Act of 
2008’’. 
SEC. 202. CERTAIN DOMESTICALLY CONTROLLED FOREIGN 
PERSONS PERFORMING SERVICES UNDER 
CONTRACT WITH UNITED STATES GOVERN-
MENT TREATED AS AMERICAN EMPLOYERS. 
(a) FICA TAXES.—Section 3121 of the Internal Rev-
enue Code of 1986 (relating to definitions) is amended by 
adding at the end the following new subsection: 
‘‘(z) TREATMENT OF CERTAIN FOREIGN PERSONS AS 
AMERICAN EMPLOYERS.— 
‘‘(1) IN GENERAL.—If any employee of a for-
eign person is performing services in connection with 
a contract between the United States Government 
(or any instrumentality thereof) and any member of 
any domestically controlled group of entities which 
includes such foreign person, such foreign person 
shall be treated for purposes of this chapter as an 
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American employer with respect to such services per-
formed by such employee. 
‘‘(2) DOMESTICALLY CONTROLLED GROUP OF 
ENTITIES.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘domesti-
cally controlled group of entities’ means a con-
trolled group of entities the common parent of 
which is a domestic corporation. 
‘‘(B) CONTROLLED GROUP OF ENTITIES.— 
The term ‘controlled group of entities’ means a 
controlled group of corporations as defined in 
section 1563(a)(1), except that— 
‘‘(i) ‘more than 50 percent’ shall be 
substituted for ‘at least 80 percent’ each 
place it appears therein, and 
‘‘(ii) the determination shall be made 
without regard to subsections (a)(4) and 
(b)(2) of section 1563. 
A partnership or any other entity (other than a 
corporation) shall be treated as a member of a 
controlled group of entities if such entity is con-
trolled 
(within 
the 
meaning 
of 
section 
954(d)(3)) by members of such group (includ-
ing any entity treated as a member of such 
group by reason of this sentence). 
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‘‘(3) LIABILITY OF COMMON PARENT.—In the 
case of a foreign person who is a member of any do-
mestically controlled group of entities, the common 
parent of such group shall be jointly and severally 
liable for any tax under this chapter for which such 
foreign person is liable by reason of this subsection. 
‘‘(4) CROSS REFERENCE.—For relief from taxes 
in cases covered by certain international agreements, 
see sections 3101(c) and 3111(c).’’. 
(b) SOCIAL SECURITY BENEFITS.—Subsection (e) of 
section 210 of the Social Security Act (42 U.S.C. 410(e)) 
is amended— 
(1) by striking ‘‘(e) The term’’ and inserting 
‘‘(e)(1) The term’’, 
(2) by redesignating paragraphs (1) through 
(6) as subparagraphs (A) through (F), respectively, 
and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2)(A) If any employee of a foreign person is 
performing services in connection with a contract be-
tween the United States Government (or any instru-
mentality thereof) and any member of any domesti-
cally controlled group of entities which includes such 
foreign person, such foreign person shall be treated 
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(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to services performed after the 
date of the enactment of this title. 
Æ 
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