SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Empowering Parents 
through Quality Charter Schools Act’’. 
SEC. 2. REFERENCES. 
Except as otherwise specifically provided, whenever in 
this Act a section or other provision is amended or re-
pealed, such amendment or repeal shall be considered to 
be made to that section or other provision of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C. 
6301 et seq.). 
SEC. 3. PURPOSE. 
Section 5201 (20 U.S.C. 7221) is amended to read 
as follows: 
‘‘SEC. 5201. PURPOSE. 
‘‘It is the purpose of this subpart to— 
‘‘(1) improve the United States education sys-
tem and educational opportunities for all Americans 
by supporting innovation in public education in pub-
lic school settings that prepare students to compete 
and contribute to the global economy; 
‘‘(2) provide financial assistance for the plan-
ning, program design, and initial implementation of 
charter schools; 
‘‘(3) expand the number of high-quality charter 
schools available to students across the Nation;
‘‘(4) evaluate the impact of such schools on stu-
dent achievement, families, and communities, and 
share best practices between charter schools and 
other public schools; 
‘‘(5) encourage States to provide support to 
charter schools for facilities financing in an amount 
more nearly commensurate to the amount the States 
have typically provided for traditional public schools; 
‘‘(6) improve student services to increase oppor-
tunities for students with disabilities, limited 
English proficient students, and other traditionally 
underserved students to attend charter schools and 
meet challenging State academic achievement stand-
ards; and 
‘‘(7) support efforts to strengthen the charter 
school authorizing process to improve performance 
management, including transparency, monitoring, 
and evaluation of such schools.’’. 
SEC. 4. PROGRAM AUTHORIZED. 
Section 5202 (20 U.S.C. 7221a) is amended to read 
as follows: 
‘‘SEC. 5202. PROGRAM AUTHORIZED. 
‘‘(a) IN GENERAL.—This subpart authorizes the Sec-
retary to carry out a charter school program that supports
charter schools that serve elementary school and sec-
ondary school students by— 
‘‘(1) supporting the startup, replication, and ex-
pansion of charter schools; 
‘‘(2) assisting charter schools in accessing cred-
it to acquire and renovate facilities for school use; 
and 
‘‘(3) carrying out national activities to sup-
port— 
‘‘(A) charter school development; 
‘‘(B) the dissemination of best practices of 
charter schools for all schools; and 
‘‘(C) the evaluation of the impact of the 
program on schools participating in the pro-
gram. 
‘‘(b) FUNDING
ALLOTMENT.—From the amount 
made available under section 5211 for a fiscal year, the 
Secretary shall— 
‘‘(1) reserve 15 percent to support charter 
school facilities assistance under section 5204; 
‘‘(2) reserve not more than 5 percent to carry 
out national activities under section 5205; and 
‘‘(3) use the remaining amount after the Sec-
retary reserves funds under paragraphs (1) and (2) 
to carry out section 5203.
‘‘(c) PRIOR GRANTS AND SUBGRANTS.—The recipi-
ent of a grant or subgrant under this subpart or subpart 
2, as such subpart was in effect on the day before the 
date of enactment of the Empowering Parents through 
Quality Charter Schools Act, shall continue to receive 
funds in accordance with the terms and conditions of such 
grant or subgrant.’’. 
SEC. 5. GRANTS TO SUPPORT HIGH-QUALITY CHARTER 
SCHOOLS. 
Section 5203 (20 U.S.C. 7221b) is amended to read 
as follows: 
‘‘SEC. 5203. GRANTS TO SUPPORT HIGH-QUALITY CHARTER 
SCHOOLS. 
‘‘(a) IN GENERAL.—From the amount reserved 
under section 5202(b)(3), the Secretary shall award 
grants to State entities having applications approved pur-
suant to subsection (f) to enable such entities to— 
‘‘(1) award subgrants to eligible applicants 
for— 
‘‘(A) opening new charter schools; 
‘‘(B) opening replicable, high-quality char-
ter school models; or 
‘‘(C) 
expanding 
high-quality 
charter 
schools; and
‘‘(2) provide technical assistance to eligible ap-
plicants and authorized public chartering agencies in 
carrying out the activities described in paragraph (1) 
and work with authorized public chartering agencies 
in the State to improve authorizing quality. 
‘‘(b) STATE USES OF FUNDS.— 
‘‘(1) IN GENERAL.—A State entity receiving a 
grant under this section shall— 
‘‘(A) use 90 percent of the grant funds to 
award subgrants to eligible applicants, in ac-
cordance with the quality charter school pro-
gram described in the entity’s application ap-
proved pursuant to subsection (f), for the pur-
poses described in subparagraphs (A) through 
(C) of subsection (a)(1); and 
‘‘(B) reserve 10 percent of such funds to 
carry out the activities described in subsection 
(a)(2), of which not more than 30 percent may 
be used for administrative costs which may in-
clude technical assistance. 
‘‘(2) CONTRACTS AND GRANTS.—A State entity 
may use a grant received under this section to carry 
out the activities described in subparagraphs (A) 
and (B) of paragraph (1) directly or through grants, 
contracts, or cooperative agreements.
‘‘(c) PROGRAM PERIODS; PEER REVIEW; GRANT 
NUMBER AND AMOUNT; DIVERSITY OF PROJECTS; WAIV-
ERS.— 
‘‘(1) PROGRAM PERIODS.— 
‘‘(A) GRANTS.—A grant awarded by the 
Secretary to a State entity under this section 
shall be for a period of not more than 5 years. 
‘‘(B) SUBGRANTS.—A subgrant awarded 
by a State entity under this section shall be for 
a period of not more than 5 years, of which an 
eligible applicant may use not more than 18 
months for planning and program design. 
‘‘(2) PEER REVIEW.—The Secretary, and each 
State entity receiving a grant under this section, 
shall use a peer review process to review applications 
for assistance under this section. 
‘‘(3) GRANT NUMBER AND AMOUNT.—The Sec-
retary shall ensure that the number of grants award-
ed under this section and the award amounts will 
allow for a sufficient number of new grants to be 
awarded under this section for each succeeding fiscal 
year. 
‘‘(4) DIVERSITY OF PROJECTS.—Each State en-
tity receiving a grant under this section shall award
subgrants under this section in a manner that, to 
the extent possible, ensures that such subgrants— 
‘‘(A) are distributed throughout different 
areas, including urban, suburban, and rural 
areas; and 
‘‘(B) will assist charter schools rep-
resenting a variety of educational approaches. 
‘‘(5) WAIVERS.—The Secretary may waive any 
statutory or regulatory requirement over which the 
Secretary exercises administrative authority except 
any such requirement relating to the elements of a 
charter school described in section 5210(1), if— 
‘‘(A) the waiver is requested in an ap-
proved application under this section; and 
‘‘(B) the Secretary determines that grant-
ing such a waiver will promote the purpose of 
this subpart. 
‘‘(d) LIMITATIONS.— 
‘‘(1) GRANTS.—A State entity may not receive 
more than 1 grant under this section for a 5-year 
period. 
‘‘(2) SUBGRANTS.—An eligible applicant may 
not receive more than 1 subgrant under this section 
per charter school for a 5-year period, unless the eli-
gible applicant demonstrates to the State entity not
less than 3 years of improved educational results in 
the areas described in subparagraphs (A) and (D) of 
section 5210(6) for students enrolled in such charter 
school. 
‘‘(e) APPLICATIONS.—A State entity desiring to re-
ceive a grant under this section shall submit an application 
to the Secretary at such time and in such manner as the 
Secretary may require. The application shall include the 
following: 
‘‘(1) DESCRIPTION OF PROGRAM.—A descrip-
tion of the entity’s objectives in running a quality 
charter school program under this section and how 
the objectives of the program will be carried out, in-
cluding a description— 
‘‘(A) of how the entity— 
‘‘(i) will support both new charter 
school startup and the expansion and rep-
lication of high-quality charter school mod-
els; 
‘‘(ii) 
will 
inform 
eligible 
charter 
schools, developers, and authorized public 
chartering agencies of the availability of 
funds under the program; 
‘‘(iii) will work with eligible applicants 
to ensure that the applicants access all
Federal funds that they are eligible to re-
ceive, and help the charter schools sup-
ported by the applicants and the students 
attending the charter schools— 
‘‘(I) participate in the Federal 
programs in which the schools and 
students are eligible to participate; 
and 
‘‘(II) receive the commensurate 
share of Federal funds the schools 
and students are eligible to receive 
under such programs; 
‘‘(iv) in the case in which the entity is 
not a State educational agency— 
‘‘(I) will work with the State edu-
cational 
agency 
and 
the 
charter 
schools in the State to maximize char-
ter school participation in Federal and 
State programs for charter schools; 
and 
‘‘(II) will work with the State 
educational agency to adequately op-
erate the entity’s program under this 
section, where applicable;
‘‘(v) will ensure eligible applicants 
that receive a subgrant under the entity’s 
program are prepared to continue to oper-
ate the charter schools receiving the 
subgrant funds once the funds have ex-
pired; 
‘‘(vi) will support charter schools in 
local educational agencies with large num-
bers of schools that must comply with the 
requirements of section 1116(b); 
‘‘(vii) will work with charter schools to 
promote inclusion of all students and sup-
port all students once they are enrolled to 
promote retention; 
‘‘(viii) will work with charter schools 
on recruitment practices, including efforts 
to engage groups that may otherwise have 
limited opportunities to participate in char-
ter schools; 
‘‘(ix) will share best and promising 
practices between charter schools and 
other public schools, including, where ap-
propriate, instruction and professional de-
velopment in science, math, technology, 
and engineering education;
‘‘(x) will ensure the charter schools 
they support can meet the educational 
needs of their students, including students 
with disabilities and limited English pro-
ficient students; and 
‘‘(xi) will support efforts to increase 
quality initiatives, including meeting the 
quality authorizing elements described in 
paragraph (2)(E); 
‘‘(B) of the extent to which the entity— 
‘‘(i) is able to meet and carry out the 
priorities listed in subsection (f)(2); and 
‘‘(ii) 
is 
working 
to 
develop 
or 
strengthen a cohesive statewide system to 
support the opening of new charter schools 
and replicable, high-quality charter school 
models, and the expansion of high-quality 
charter schools; 
‘‘(C) of how the entity will carry out the 
subgrant competition, including— 
‘‘(i) a description of the application 
each eligible applicant desiring to receive a 
subgrant will submit, including— 
‘‘(I) a description of the roles 
and responsibilities of eligible appli-
cants, 
partner 
organizations, 
and 
management organizations, including 
the administrative and contractual 
roles and responsibilities; 
‘‘(II) a description of the quality 
controls agreed to between the eligible 
applicant and the authorized public 
chartering agency involved, such as a 
contract or performance agreement, 
and how a school’s performance on 
the State’s academic accountability 
system will be a primary factor for re-
newal; and 
‘‘(III) a description of how the el-
igible applicant will solicit and con-
sider input from parents and other 
members of the community on the im-
plementation and operation of each 
charter school receiving funds under 
the entity’s program; and 
‘‘(ii) a description of how the entity 
will review applications; 
‘‘(D) in the case of an entity that partners 
with an outside organization to carry out the 
entity’s quality charter school program, in
whole or in part, of the roles and responsibil-
ities of this partner; 
‘‘(E) of how the entity will help the charter 
schools receiving funds under the entity’s pro-
gram consider the transportation needs of the 
schools’ students; and 
‘‘(F) of how the entity will support diverse 
charter school models, including models that 
serve rural communities. 
‘‘(2) ASSURANCES.—Assurances, including a 
description of how the assurances will be met, 
that— 
‘‘(A) each charter school receiving funds 
under the entity’s program will have a high de-
gree of autonomy over budget and operations; 
‘‘(B) the entity will support charter schools 
in meeting the educational needs of their stu-
dents as described in paragraph (1)(A)(x); 
‘‘(C) the entity will ensure that the author-
ized public chartering agency of any charter 
school that receives funds under the entity’s 
program— 
‘‘(i) ensures that each charter school 
is meeting the obligations under this Act, 
part B of the Individuals with Disabilities
Education Act, title VI of the Civil Rights 
Act of 1964, section 504 of the Rehabilita-
tion Act of 1973, the Age Discrimination 
Act of 1975, and title IX of the Education 
Amendments of 1972; 
‘‘(ii) adequately monitors and helps 
each charter school in recruiting, enrolling, 
and meeting the needs of all students, in-
cluding students with disabilities and lim-
ited English proficient students; and 
‘‘(iii) ensures that each charter school 
solicits and considers input from parents 
and other members of the community on 
the implementation and operation of the 
school; 
‘‘(D) the entity will provide adequate tech-
nical assistance to eligible applicants to— 
‘‘(i) meet the objectives described in 
clauses (vii) and (viii) of paragraph (1)(A) 
and paragraph (2)(B); and 
‘‘(ii) enroll traditionally underserved 
students, including students with disabil-
ities and limited English proficient stu-
dents, to promote an inclusive education 
environment;
‘‘(E) the entity will promote quality au-
thorizing, such as through providing technical 
assistance, to support all authorized public 
chartering agencies in the State to improve the 
monitoring of their charter schools, including 
by— 
‘‘(i) assessing annual performance 
data of the schools, including, as appro-
priate, 
graduation 
rates 
and 
student 
growth; and 
‘‘(ii) reviewing the schools’ inde-
pendent, annual audits of financial state-
ments conducted in accordance with gen-
erally accepted accounting principles, and 
ensuring any such audits are publically re-
ported; 
‘‘(F) the entity will work to ensure that 
charter schools are included with the traditional 
public school system in decision-making about 
the public school system in the State; and 
‘‘(G) the entity will ensure that each char-
ter school in the State make publicly available, 
consistent with the dissemination requirements 
of the annual State report card, the information 
parents need to make informed decisions about
the educational options available to their chil-
dren, including information on the educational 
program, student support services, and annual 
performance and enrollment data for the groups 
of 
students 
described 
in 
section 
1111(b)(2)(C)(v)(II). 
‘‘(3) REQUESTS FOR WAIVERS.—A request and 
justification for waivers of any Federal statutory or 
regulatory provisions that the entity believes are nec-
essary for the successful operation of the charter 
schools that will receive funds under the entity’s pro-
gram under this section, and a description of any 
State or local rules, generally applicable to public 
schools, that will be waived, or otherwise not apply 
to such schools. 
‘‘(f) SELECTION CRITERIA; PRIORITY.— 
‘‘(1) SELECTION
CRITERIA.—The Secretary 
shall award grants to State entities under this sec-
tion on the basis of the quality of the applications 
submitted under subsection (e), after taking into 
consideration— 
‘‘(A) the degree of flexibility afforded by 
the State’s public charter school law and how 
the entity will work to maximize the flexibility 
provided to charter schools under the law;
‘‘(B) the ambitiousness of the entity’s ob-
jectives for the quality charter school program 
carried out under this section; 
‘‘(C) the quality of the strategy for assess-
ing achievement of those objectives; 
‘‘(D) the likelihood that the eligible appli-
cants receiving subgrants under the program 
will meet those objectives and improve edu-
cational results for students; 
‘‘(E) the proposed number of new charter 
schools to be opened, and the proposed number 
of high-quality charter schools to be replicated 
or expanded under the program; 
‘‘(F) the entity’s plan to— 
‘‘(i) adequately monitor the eligible 
applicants receiving subgrants under the 
entity’s program; and 
‘‘(ii) work with the authorized public 
chartering agencies involved to avoid dupli-
cation of work for the charter schools and 
authorized public chartering agencies; 
‘‘(G) the entity’s plan to provide adequate 
technical assistance, as described in the entity’s 
application under subsection (e), for the eligible
applicants receiving subgrants under the enti-
ty’s program under this section; 
‘‘(H) the entity’s plan to support quality 
authorizing efforts in the State, consistent with 
the objectives described in subparagraph (B); 
and 
‘‘(I) the entity’s plan to solicit and con-
sider input from parents and other members of 
the community on the implementation and oper-
ation of the charter schools in the State. 
‘‘(2) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to State en-
tities to the extent that they meet the following cri-
teria: 
‘‘(A) In the case of a State entity located 
in a State that allows an entity other than a 
local educational agency to be an authorized 
public chartering agency, the State has a qual-
ity authorized public chartering agency that is 
an entity other than a local educational agency. 
‘‘(B) The State entity is located in a State 
that does not impose any limitation on the 
number or percentage of charter schools that 
may exist or the number or percentage of stu-
dents that may attend charter schools in the 
State. 
‘‘(C) The State entity is located in a State 
that ensures equitable financing, as compared 
to traditional public schools, for charter schools 
and students in a prompt manner. 
‘‘(D) The State entity is located in a State 
that uses charter schools and best practices 
from charter schools to help improve struggling 
schools and local educational agencies. 
‘‘(E) The State entity partners with an or-
ganization that has a demonstrated record of 
success in developing management organiza-
tions to support the development of charter 
schools in the State. 
‘‘(F) The State entity demonstrates quality 
policies and practices to support and monitor 
charter schools through factors including— 
‘‘(i) the proportion of high-quality 
charter schools in the State; and 
‘‘(ii) the proportion of charter schools 
enrolling, at a rate similar to traditional 
public schools, traditionally underserved 
students, including students with disabil-
ities and limited English proficient stu-
dents. 
‘‘(G) The State entity supports charter 
schools that support at-risk students through 
activities such as dropout prevention or dropout 
recovery. 
‘‘(H) The State entity authorizes all char-
ter schools in the State to serve as school food 
authorities. 
‘‘(g) LOCAL USES OF FUNDS.—An eligible applicant 
receiving a subgrant under this section shall use such 
funds to open new charter schools or replicable, high-qual-
ity charter school models, or expand existing high-quality 
charter schools. 
‘‘(h) REPORTING REQUIREMENTS.—Each State enti-
ty receiving a grant under this section shall submit to the 
Secretary, at the end of the third year of the 5-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 opening of replicable, 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-
ership of the schools that received subgrants under 
this section. 
‘‘(i) STATE ENTITY DEFINED.—For purposes of this 
section, the term ‘State entity’ means— 
‘‘(1) a State educational agency; 
‘‘(2) a State charter school board; or 
‘‘(3) a Governor of a State.’’.
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.—From the amount reserved 
under section 5202(b)(1), the Secretary shall award 
grants to eligible entities that have the highest-qual-
ity applications approved under subsection (d), after 
considering the diversity of such applications, to 
demonstrate innovative methods of assisting charter 
schools to address the cost of acquiring, con-
structing, and renovating facilities by enhancing the 
availability of loans 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.—Grants under sub-
section (a) shall be of a sufficient size, scope, and quality 
so as to ensure an effective demonstration of an innovative 
means of enhancing credit for the financing of charter 
school acquisition, 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, 
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; and 
‘‘(F) 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. 
‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible 
entity receiving a grant under this section shall use the 
funds deposited in the reserve account established under 
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)) in a reserve 
account established and maintained by the eligible 
entity for this purpose. Amounts deposited in such 
account shall be used by 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-
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-
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; 
‘‘(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 
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 
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 
a competitive basis, to States to pay for the 
Federal share of the cost of establishing or en-
hancing, and administering per-pupil facilities 
aid programs. 
‘‘(B) PERIOD.—The Secretary shall award 
grants under this subsection for periods of not 
more than 5 years. 
‘‘(C) 
FEDERAL
SHARE.—The 
Federal 
share of the cost described in subparagraph (A) 
for a per-pupil facilities aid program shall be 
not more than— 
‘‘(i) 90 percent of the cost, for the 
first fiscal year for which the program re-
ceives assistance under this subsection; 
‘‘(ii) 80 percent in the second such 
year; 
‘‘(iii) 60 percent in the third such 
year; 
‘‘(iv) 40 percent in the fourth such 
year; and 
‘‘(v) 20 percent in the fifth such year. 
‘‘(D) STATE SHARE.—A State receiving a 
grant under this subsection may partner with 1 
or more organizations to provide up to 50 per-
cent of the State share of the cost of estab-
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-
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 
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. 
‘‘(a) IN GENERAL.—From the amount reserved 
under section 5202(b)(2), the Secretary shall— 
‘‘(1) use not less than 50 percent of such funds 
to award grants in accordance with subsection (b); 
and 
‘‘(2) use the remainder of such funds to— 
‘‘(A) disseminate technical assistance to 
State entities in awarding subgrants under sec-
tion 5203, and eligible entities and States re-
ceiving grants under section 5204; 
‘‘(B) disseminate best practices; and 
‘‘(C) evaluate the impact of the charter 
school program, including the impact on stu-
dent achievement, carried out under this sub-
part. 
‘‘(b) GRANTS.— 
‘‘(1) IN GENERAL.—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), subparagraphs (A) 
through (C) of section 5203(a)(1), and section 
5203(g). 
‘‘(2) TERMS AND CONDITIONS.—Except as oth-
erwise provided in this subsection, grants awarded 
under this subsection shall have the same terms and 
conditions as grants awarded to State entities under 
section 5203. 
‘‘(3) ELIGIBLE APPLICANT DEFINED.—For pur-
poses of this subsection, the term ‘eligible applicant’ 
means an eligible applicant that desires to open a 
charter school in— 
‘‘(A) a State that did not apply for a grant 
under section 5203; 
‘‘(B) a State that did not receive a grant 
under section 5203; or 
‘‘(C) a State that received a grant under 
section 5203 and is in the 4th or 5th year of 
the grant period for such grant.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 
Section 5211 (20 U.S.C. 7221j) is amended to read 
as follows: 
‘‘SEC. 5211. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this subpart $300,000,000 for fiscal year 2012 and each 
of the 5 succeeding fiscal years.’’. 
SEC. 11. CONFORMING AMENDMENTS. 
(a) REPEAL.—Subpart 2 of part B of title V (20 
U.S.C. 7223 et seq.) is repealed. 
(b) TABLE OF CONTENTS.—The table of contents in 
section 2 is amended— 
(1) by striking the item relating to section 5203 
and inserting the following: 
‘‘Sec. 5203. Grants to support high-quality charter schools.’’; 
(2) by striking the item relating to section 5204 
and inserting the following: 
‘‘Sec. 5204. Facilities Financing Assistance.’’; 
and 
(3) by striking subpart 2 of part B of title V. 
Passed the House of Representatives September 13, 
2011. 
Attest: 
Clerk.
112TH CONGRESS 
1ST SESSION 
H. R. 2218 
AN ACT 
To amend the charter school program under the 
Elementary and Secondary Education Act of 1965.