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‘‘(ii) the methods by which the charter 
school will determine its progress toward 
achieving those objectives; 
‘‘(D) a description of the administrative re-
lationship between the charter school and the au-
thorized public chartering agency; 
‘‘(E) a description of how parents and other 
members of the community will be involved in 
the planning, program design and implementa-
tion of the charter school; 
‘‘(F) a description of how the authorized 
public chartering agency will provide for contin-
ued operation of the school once the Federal 
grant has expired, if such agency determines that 
the school has met the objectives described in sub-
paragraph (C)(i); 
‘‘(G) a request and justification for waivers 
of any Federal statutory or regulatory provisions 
that the applicant believes are necessary for the 
successful operation of the charter school, and a 
description of any State or local rules, generally 
applicable to public schools, that will be waived 
for, or otherwise not apply to, the school; 
‘‘(H) a description of how the subgrant 
funds or grant funds, as appropriate, will be 
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used, including a description of how such funds 
will be used in conjunction with other Federal 
programs administered by the Secretary; 
‘‘(I) a description of how students in the 
community will be— 
‘‘(i) informed about the charter school; 
and 
‘‘(ii) given an equal opportunity to at-
tend the charter school; 
‘‘(J) an assurance that the eligible appli-
cant will annually provide the Secretary and the 
State educational agency such information as 
may be required to determine if the charter 
school is making satisfactory progress toward 
achieving the objectives described in subpara-
graph (C)(i); 
‘‘(K) an assurance that the applicant will 
cooperate with the Secretary and the State edu-
cational agency in evaluating the program as-
sisted under this part; 
‘‘(L) a description of how a charter school 
that is considered a local educational agency 
under State law, or a local educational agency 
in which a charter school is located, will comply 
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•HR 1 RH1&2 
with sections 613(a)(5) and 613(e)(1)(B) of the 
Individuals with Disabilities Education Act; 
‘‘(M) if the eligible applicant desires to use 
subgrant funds for dissemination activities 
under section 4202(c)(2)(C), a description of 
those activities and how those activities will in-
volve charter schools and other public schools, 
local educational agencies, developers, and poten-
tial developers; and 
‘‘(N) such other information and assurances 
as the Secretary and the State educational agen-
cy may require. 
‘‘(c) CONTENTS OF ELIGIBLE APPLICANT APPLICA-
TION.—Each eligible applicant desiring a grant pursuant 
to section 4202(b) shall submit an application to the State 
educational agency or Secretary, respectively, at such time, 
in such manner, and accompanied by such information as 
the State educational agency or Secretary, respectively, 
may reasonably require. 
‘‘(d) CONTENTS OF APPLICATION.—Each application 
submitted pursuant to subsection (c) shall contain— 
‘‘(1) the information and assurances described in 
subparagraphs (A) through (N) of subsection (b)(3), 
except that for purposes of this subsection subpara-
graphs (J), (K), and (N) of such subsection shall be 
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•HR 1 RH1&2 
applied by striking ‘and the State educational agen-
cy’ each place such term appears; 
‘‘(2) assurances that the State educational agen-
cy— 
‘‘(A) will grant, or will obtain, waivers of 
State statutory or regulatory requirements; and 
‘‘(B) will assist each subgrantee in the State 
in receiving a waiver under section 4204(e); and 
‘‘(3) assurances that the eligible applicant has 
provided its authorized public chartering authority 
timely notice, and a copy, of the application, except 
that the State educational agency (or the Secretary, 
in the case of an application submitted to the Sec-
retary) may waive this requirement in the case of an 
application for a precharter planning grant or 
subgrant if the authorized public chartering authority 
to which a charter school proposal will be submitted 
has not been determined at the time the grant or 
subgrant application is submitted. 
‘‘SEC. 4204. ADMINISTRATION. 
‘‘(a) SELECTION CRITERIA FOR STATE EDUCATIONAL 
AGENCIES.—The Secretary shall award grants to State edu-
cational agencies under this part on the basis of the quality 
of the applications submitted under section 4203(b), after 
taking into consideration such factors as— 
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‘‘(1) the contribution that the charter schools 
grant program will make to assisting educationally 
disadvantaged and other students to achieving State 
academic content standards and State student aca-
demic achievement standards and, in general, a 
State’s education improvement plan; 
‘‘(2) the degree of flexibility afforded by the State 
educational agency to charter schools under the 
State’s charter schools law; 
‘‘(3) the ambitiousness of the objectives for the 
State charter school grant program; 
‘‘(4) the quality of the strategy for assessing 
achievement of those objectives; 
‘‘(5) the likelihood that the charter school grant 
program will meet those objectives and improve edu-
cational results for students; 
‘‘(6) the number of high quality charter schools 
created under this part in the State; and 
‘‘(7) in the case of State educational agencies 
that propose to use grant funds to support dissemina-
tion activities under section 4202(c)(2)(C), the qual-
ity of those activities and the likelihood that those ac-
tivities will improve student academic achievement. 
‘‘(b) SELECTION CRITERIA
FOR ELIGIBLE APPLI-
CANTS.—The Secretary shall award grants to eligible appli-
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cants under this part on the basis of the quality of the ap-
plications submitted under section 4203(c), after taking 
into consideration such factors as— 
‘‘(1) the quality of the proposed curriculum and 
instructional practices; 
‘‘(2) the degree of flexibility afforded by the State 
educational agency and, if applicable, the local edu-
cational agency to the charter school; 
‘‘(3) the extent of community support for the ap-
plication; 
‘‘(4) the ambitiousness of the objectives for the 
charter school; 
‘‘(5) the quality of the strategy for assessing 
achievement of those objectives; 
‘‘(6) the likelihood that the charter school will 
meet those objectives and improve educational results 
for students; and 
‘‘(7) in the case of an eligible applicant that pro-
poses to use grant funds to support dissemination ac-
tivities under section 4202(c)(2)(C), the quality of 
those activities and the likelihood that those activities 
will improve student achievement. 
‘‘(c) PEER REVIEW.—The Secretary, and each State 
educational agency receiving a grant under this part, shall 
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•HR 1 RH1&2 
use a peer review process to review applications for assist-
ance under this part. 
‘‘(d) DIVERSITY OF PROJECTS.—The Secretary and 
each State educational agency receiving a grant under this 
part, shall award subgrants under this part in a manner 
that, to the extent possible, ensures that such grants and 
subgrants— 
‘‘(1) are distributed throughout different areas of 
the Nation and each State, including urban and rural 
areas; and 
‘‘(2) will assist charter schools representing a va-
riety of educational approaches, such as approaches 
designed to reduce school size. 
‘‘(e) WAIVERS.—The Secretary may waive any statu-
tory or regulatory requirement over which the Secretary ex-
ercises administrative authority except any such require-
ment relating to the elements of a charter school described 
in section 4210(1), if— 
‘‘(1) the waiver is requested in an approved ap-
plication under this part; and 
‘‘(2) the Secretary determines that granting such 
a waiver will promote the purpose of this part. 
‘‘(f) USE OF FUNDS.— 
‘‘(1) STATE
EDUCATIONAL
AGENCIES.—Each 
State educational agency receiving a grant under this 
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part shall use such grant funds to award subgrants 
to one or more eligible applicants in the State to en-
able such applicant to plan and implement a charter 
school in accordance with this part, except that the 
State educational agency may reserve not more than 
10 percent of the grant funds to support dissemina-
tion activities described in paragraph (6). 
‘‘(2) ELIGIBLE APPLICANTS.—Each eligible ap-
plicant receiving funds from the Secretary or a State 
educational agency shall use such funds to plan and 
implement a charter school, or to disseminate infor-
mation about the charter school and successful prac-
tices in the charter school, in accordance with this 
part. 
‘‘(3) ALLOWABLE ACTIVITIES.—An eligible appli-
cant receiving a grant or subgrant under this part 
may use the grant or subgrant funds only for— 
‘‘(A) post-award planning and design of the 
educational program, which may include— 
‘‘(i) refinement of the desired edu-
cational results and of the methods for 
measuring progress toward achieving those 
results; and 
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‘‘(ii) professional development of teach-
ers and other staff who will work in the 
charter school; and 
‘‘(B) initial implementation of the charter 
school, which may include— 
‘‘(i) informing the community about 
the school; 
‘‘(ii) acquiring necessary equipment 
and educational materials and supplies; 
‘‘(iii) acquiring or developing cur-
riculum materials; and 
‘‘(iv) other initial operational costs 
that cannot be met from State or local 
sources. 
‘‘(4) ADMINISTRATIVE
EXPENSES.—Each State 
educational agency receiving a grant pursuant to this 
part may reserve not more than 5 percent of such 
grant funds for administrative expenses associated 
with the charter school grant program assisted under 
this part. A local educational agency may not deduct 
funds for administrative fees or expenses from a 
subgrant awarded to an eligible applicant. 
‘‘(5) REVOLVING LOAN FUNDS.—Each State edu-
cational agency receiving a grant pursuant to this 
part may reserve not more than 10 percent of the 
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grant amount for the establishment of a revolving 
loan fund. Such fund may be used to make loans to 
eligible applicants that have received a subgrant 
under this part, under such terms as may be deter-
mined by the State educational agency, for the initial 
operation of the charter school grant program of such 
recipient until such time as the recipient begins re-
ceiving ongoing operational support from State or 
local financing sources. 
‘‘(6) DISSEMINATION.— 
‘‘(A) IN GENERAL.—A charter school may 
apply for funds under this part, whether or not 
the charter school has applied for or received 
funds under this part for planning, program de-
sign, or implementation, to carry out the activi-
ties described in subparagraph (B) if the charter 
school has been in operation for at least 3 con-
secutive years and has demonstrated overall suc-
cess, including— 
‘‘(i) substantial progress in improving 
student academic achievement; 
‘‘(ii) high levels of parent satisfaction; 
and 
‘‘(iii) the management and leadership 
necessary to overcome initial start-up prob-
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•HR 1 RH1&2 
lems and establish a thriving, financially 
viable charter school. 
‘‘(B) ACTIVITIES.—A charter school de-
scribed in subparagraph (A) may use funds re-
served under paragraph (1) to assist other 
schools in adapting the charter school’s program 
(or certain aspects of the charter school’s pro-
gram), or to disseminate information about the 
charter school, through such activities as— 
‘‘(i) assisting other individuals with 
the planning and start-up of one or more 
new 
public 
schools, 
including 
charter 
schools, that are independent of the assist-
ing charter school and the assisting charter 
school’s developers, and that agree to be held 
to at least as high a level of accountability 
as the assisting charter school; 
‘‘(ii) 
developing 
partnerships 
with 
other public schools, including charter 
schools, designed to improve student aca-
demic achievement in each of the schools 
participating in the partnership; 
‘‘(iii) developing curriculum materials, 
academic assessments, and other materials 
that promote increased student academic 
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), from the amount made available under sec-
tion 5003(2) to carry out this subpart for each fiscal 
year, the Secretary shall allocate among the States— 
‘‘(A) one-half of such amount according to 
the ratio between the school-aged population of 
each State and the school-aged population of all 
the States; and 
‘‘(B) one-half of such amount according to 
the ratio between the amount each State received 
under part A of title I for the preceding year 
and the sum of such amounts received by all the 
States. 
‘‘(2) MINIMUM.—For any fiscal year, no State 
shall be allotted under this subsection an amount that 
is less than one-half of 1 percent of the total amount 
allotted to all the States under this subsection. 
‘‘(b) REALLOTMENT OF UNUSED FUNDS.—If any State 
does not apply for an allotment under this subpart for a 
fiscal year, the Secretary shall reallot the amount of the 
State’s allotment to the remaining States in accordance 
with this section. 
‘‘(c) STATE FUNDS.— 
‘‘(1) IN GENERAL.—Each State that receives a 
grant under this subpart shall reserve an amount 
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