HR 10 RFS
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-
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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 
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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 75 percent of such funds 
to award grants in accordance with subsection (b); 
and 
‘‘(2) use not more than 25 percent of such 
funds to— 
‘‘(A) provide technical assistance to State 
entities in awarding subgrants under section 
5203, and eligible entities and States receiving 
grants under section 5204; 
‘‘(B) disseminate best practices; and 
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‘‘(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) 
CHARTER
MANAGEMENT
ORGANIZA-
TIONS.—The Secretary shall— 
‘‘(A) use not less than 75 percent of the 
funds described in subsection (a)(1) to make 
grants, on a competitive basis, to eligible appli-
cants described in paragraph (4)(B); and 
‘‘(B) notwithstanding paragraphs (1)(A) 
and (2) of section 5203(f)— 
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‘‘(i) award grants to eligible appli-
cants on the basis of the quality of the ap-
plications submitted under this subsection; 
and 
‘‘(ii) in awarding grants to eligible ap-
plicants described in paragraph (4)(B), 
take into consideration whether such an el-
igible applicant— 
‘‘(I) demonstrates a high propor-
tion of high-quality charter schools 
within the network of the eligible ap-
plicant; 
‘‘(II) demonstrates success in 
serving students who are educationally 
disadvantaged; 
‘‘(III) does not have a significant 
proportion of charter schools that 
have been closed, had their charter re-
voked for compliance issues, or had 
their affiliation with such eligible ap-
plicant revoked; 
‘‘(IV) has sufficient procedures in 
effect to ensure timely closure of low- 
performing or financially-mismanaged 
charter schools and clear plans and 
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procedures in effect for the students 
in such schools to attend other high- 
quality schools; and 
‘‘(V) demonstrates success in 
working with schools identified for im-
provement by the State. 
‘‘(4) ELIGIBLE APPLICANT DEFINED.—For pur-
poses of this subsection, the term ‘eligible applicant’ 
means an eligible applicant (as defined in section 
5210) that— 
‘‘(A) desires to open a charter school in— 
‘‘(i) a State that did not apply for a 
grant under section 5203; or 
‘‘(ii) a State that did not receive a 
grant under section 5203; or 
‘‘(B) is a charter management organiza-
tion. 
‘‘(c) CONTRACTS AND GRANTS.—The Secretary may 
carry out any of the activities described in this section di-
rectly or through grants, contracts, or cooperative agree-
ments.’’. 
SEC. 8. RECORDS TRANSFER. 
Section 5208 (20 U.S.C. 7221g) is amended— 
(1) by inserting ‘‘as quickly as possible and’’ 
before ‘‘to the extent practicable’’; and 
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(2) by striking ‘‘section 602’’ and inserting 
‘‘section 602(14)’’. 
SEC. 9. DEFINITIONS. 
Section 5210 (20 U.S.C. 7221i) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) CHARTER
SCHOOL.—The term ‘charter 
school’ means a public school that— 
‘‘(A) in accordance with a specific State 
statute authorizing the granting of charters to 
schools, is exempt from significant State or 
local rules that inhibit the flexible operation 
and management of public schools, but not 
from any rules relating to the other require-
ments of this paragraph; 
‘‘(B) is created by a developer as a public 
school, or is adapted by a developer from an ex-
isting public school, and is operated under pub-
lic supervision and direction; 
‘‘(C) operates in pursuit of a specific set of 
educational 
objectives 
determined 
by 
the 
school’s developer and agreed to by the author-
ized public chartering agency; 
‘‘(D) provides a program of elementary or 
secondary education, or both; 
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