(1) in subsection (a)(7) by striking ‘‘(f)(6)(B)’’ 
and inserting ‘‘(g)(6)(B)’’; 
(2) by striking subsection (g); 
(3) by redesignating subsections (b) through (f) 
as (c) through (g), respectively; 
(4) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) SELECTION CRITERIA FOR AUTHORIZED PUB-
LIC CHARTERING AGENCIES.— 
‘‘(1) IN GENERAL.—The Secretary shall award 
grants to authorized public chartering agencies 
under this subpart on the basis of the quality of the 
applications submitted under section 5203(c), after 
considering such factors as— 
‘‘(A) the contribution that a proposed 
grant will make to assisting educationally dis-
advantaged and other students in meeting State 
academic content standards and State student 
academic achievement standards; 
‘‘(B) the degree of flexibility afforded by 
the State educational agency to charter schools 
under the State’s charter school law; 
‘‘(C) the ambitiousness of the objectives 
for the proposed project; 
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‘‘(D) the quality of the strategy for assess-
ing achievement of those objectives; 
‘‘(E) the likelihood that the proposed grant 
will meet those objectives and improve edu-
cational results for students; 
‘‘(F) the number of high-quality charter 
schools created under this subpart by the agen-
cy; and 
‘‘(G) in the case of an authorized public 
chartering agency that proposes to use grant 
funds to support dissemination activities under 
subsection (g)(6)(B), the quality of those activi-
ties and the likelihood that those activities will 
improve student academic achievement. 
‘‘(2) REQUIREMENTS.—The Secretary may 
award a grant to an authorized public chartering 
agency only if the Secretary determines that— 
‘‘(A) the agency has the capacity to make 
subgrants effectively; and 
‘‘(B) making the grant would benefit char-
ter schools in the State.’’; 
(5) in subsection (c) (as so redesignated)—— 
(A) in the matter preceding paragraph (1) 
by striking ‘‘5203(c)’’ and inserting ‘‘5203(d)’’; 
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(B) by striking paragraph (4) and insert-
ing the following: 
‘‘(4) the objectives for the charter school and a 
description of how such objectives will be fulfilled, 
including steps taken by the charter school to in-
clude teachers, parents, and communities in fulfilling 
the objectives;’’; and 
(C) 
in 
paragraph 
(7) 
by 
striking 
‘‘(f)(6)(B)’’ and inserting ‘‘(g)(6)(B)’’; 
(6) in subsection (d) (as so redesignated) by in-
serting after ‘‘State educational agency’’ the fol-
lowing: ‘‘or authorized public chartering agency’’; 
(7) in subsection (e) (as so redesignated)— 
(A) in the matter preceding paragraph (1) 
by inserting after ‘‘State educational agency’’ 
the following: ‘‘or authorized public chartering 
agency’’; and 
(B) in paragraph (2) by striking ‘‘, such as 
approaches designed to reduce school size’’; 
(8) in subsection (g) (as so redesignated)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) STATE EDUCATIONAL AGENCIES AND AU-
THORIZED
PUBLIC
CHARTERING
AGENCIES.—Each 
State educational agency or authorized public char-
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tering agency receiving a grant under this subpart 
shall use such grant funds to award subgrants to 
one or more eligible applicants in the State to enable 
such applicant to plan and implement a charter 
school in accordance with this subpart, provided that 
most of the funds be awarded to charter school de-
velopers, equitably distributed among public non-
profit organizations, private nonprofit organizations, 
and groups of teachers, administrators, parents, and 
others. A State educational agency or authorized 
public chartering agency may vary the dollar amount 
per grant that it awards to eligible applicants based 
upon a variety of factors, including whether the eli-
gible applicant is a start-up charter school or a con-
version charter school and whether the eligible appli-
cant is creating a charter school under a new char-
ter or an existing charter.’’; 
(B) in paragraph (2) by striking ‘‘or a 
State educational agency’’ and inserting ‘‘, or 
from a State educational agency or authorized 
public chartering agency,’’; 
(C) in paragraph (3)— 
(i) in subparagraph (A) by striking 
‘‘and’’ at the end; 
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(ii) in subparagraph (B) by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) dissemination activities as described 
in paragraphs (2) and (6).’’; 
(D) in paragraph (4) by amending sub-
paragraph (A) to read as follows: 
‘‘(A) STATE
EDUCATIONAL
AGENCY
AND 
AUTHORIZED PUBLIC CHARTERING AGENCY AD-
MINISTRATIVE
EXPENSES.—Each State edu-
cational agency or authorized public chartering 
agency receiving a grant pursuant to this sub-
part may reserve not more than 5 percent of 
such grant funds for administrative expenses 
associated with the charter school grant pro-
gram assisted under this subpart.’’; and 
(E) in paragraph (6)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘IN
GENERAL’’ 
and inserting ‘‘CHARTER
SCHOOL’’; 
and 
(II) by striking ‘‘whether or not 
the charter school has applied for or 
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