HR 10 RFS
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 of charter schools, 
and the replication and expansion of high-quality 
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; 
‘‘(C) the evaluation of the impact of the 
program on schools participating in the pro-
gram; and 
‘‘(D) stronger charter school authorizing. 
‘‘(b) FUNDING
ALLOTMENT.—From the amount 
made available under section 5211 for a fiscal year, the 
Secretary shall— 
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‘‘(1) reserve 12.5 percent to support charter 
school facilities assistance under section 5204; 
‘‘(2) reserve not more than 10 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 Success and Opportunity through 
Quality Charter Schools Act, shall continue to receive 
funds in accordance with the terms and conditions of such 
grant or subgrant. 
‘‘(d) GAO REPORT.—Not later than 3 years after the 
date of enactment of the Success and Opportunity through 
Quality Charter Schools Act, the Comptroller General of 
the United States shall submit a report to the Secretary 
and Congress that— 
‘‘(1) examines whether the funds authorized to 
be reserved by State entities for administrative costs 
under section 5203(b)(1)(C) is appropriate; and 
‘‘(2) if determined not to be appropriate, makes 
recommendations on the appropriate reservation of 
funding for such administrative costs.’’. 
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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 
opening and preparing to operate— 
‘‘(A) new charter schools; 
‘‘(B) replicated, high-quality charter school 
models; or 
‘‘(C) 
expanded, 
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— 
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‘‘(A) use not less than 90 percent of the 
grant funds to award subgrants to eligible ap-
plicants, in accordance with the quality charter 
school program described in the State entity’s 
application approved pursuant to subsection (f), 
for the purposes described in subparagraphs 
(A) through (C) of subsection (a)(1); 
‘‘(B) reserve not less than 7 percent of 
such funds to carry out the activities described 
in subsection (a)(2); and 
‘‘(C) reserve not more than 3 percent of 
such funds for administrative costs which may 
include 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. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this Act shall prohibit the Secretary from awarding 
grants to States that use a weighted lottery to give 
slightly better chances for admission to all, or a sub-
set of, educationally disadvantaged students if— 
‘‘(A) the use of weighted lotteries in favor 
of such students is not prohibited by State law, 
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and such State law is consistent with laws de-
scribed in section 5210(1)(G); and 
‘‘(B) such weighted lotteries are not used 
for the purpose of creating schools exclusively 
to serve a particular subset of students. 
‘‘(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 AWARDS.—The Secretary shall— 
‘‘(A) for each fiscal year for which funds 
are appropriated under section 5211— 
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‘‘(i) award not less than 3 grants 
under this section; 
‘‘(ii) wholly fund each grant awarded 
under this section, without making con-
tinuation awards; and 
‘‘(iii) fully obligate the funds appro-
priated for the purpose of awarding grants 
under this section in the fiscal year for 
which such grants are awarded; and 
‘‘(B) prior to the start of the final year of 
the grant period of each grant awarded under 
this section to a State entity, review whether 
the State entity is using the grant funds for the 
agreed upon uses of funds and whether the full 
amount of the grant will be needed for the re-
mainder of the grant period and may, as deter-
mined necessary based on that review, termi-
nate or reduce the amount of the grant and re-
allocate the remaining grant funds to other 
State entities during the succeeding grant com-
petition under this section. 
‘‘(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— 
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‘‘(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.—The Secretary shall not award 
a grant to a State entity under this section in a case 
in which such award would result in more than 1 
grant awarded under this section being carried out 
in a State at the same time. 
‘‘(2) SUBGRANTS.—An eligible applicant may 
not receive more than 1 subgrant under this section 
per individual charter school for a 5-year period, un-
less the eligible applicant demonstrates to the State 
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entity not less than 3 years of improved educational 
results in the areas described in subparagraphs (A) 
and (D) of section 5210(8) 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 State entity’s objectives under this sec-
tion and how the objectives of the program will be 
carried out, including a description— 
‘‘(A) of how the State entity— 
‘‘(i) will support the opening of new 
charter schools, replicated, high-quality 
charter school models, or expanded, high- 
quality charter schools, and a description 
of the proposed number of each type of 
charter school or model, if applicable, to be 
opened under the State entity’s program; 
‘‘(ii) 
will 
inform 
eligible 
charter 
schools, developers, and authorized public 
chartering agencies of the availability of 
funds under the program; 
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‘‘(iii) will work with eligible applicants 
to ensure that the eligible applicants access 
all Federal funds that they are eligible to 
receive, 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; 
‘‘(II) receive the commensurate 
share of Federal funds the schools 
and students are eligible to receive 
under such programs; and 
‘‘(III) meet the needs of students 
served under such programs, including 
student with disabilities and English 
learners; 
‘‘(iv) will have clear plans and proce-
dures to assist students enrolled in a char-
ter school that closes or loses its charter to 
attend other high-quality schools; 
‘‘(v) in the case in which the State en-
tity is not a State educational agency— 
‘‘(I) will work with the State edu-
cational 
agency 
and 
the 
charter 
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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 State entity’s program 
under this section, where applicable; 
‘‘(vi) will ensure each eligible appli-
cant that receives a subgrant under the 
State entity’s program to open and prepare 
to operate a new charter school, a rep-
licated, high-quality charter school model, 
or an expanded, high-quality charter 
school— 
‘‘(I) will ensure such school or 
model meets the requirements under 
section 5210(1); and 
‘‘(II) is prepared to continue to 
operate such school or model, in a 
manner consistent with the eligible 
applicant’s 
application, 
after 
the 
subgrant funds have expired; 
‘‘(vii) will support charter schools in 
local educational agencies with large num-
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bers of schools identified by the State for 
improvement, including supporting the use 
of charter schools to improve, or in turning 
around, struggling schools; 
‘‘(viii) will work with charter schools 
to promote inclusion of all students, in-
cluding eliminating any barriers to enroll-
ment for foster youth or unaccompanied 
homeless youth, and support all students 
once they are enrolled to promote retention 
including through the use of fair discipli-
nary practice; 
‘‘(ix) 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, and to ensure such schools do 
not have in effect policies or procedures 
that may create barriers to enrollment of 
students, including educationally disadvan-
taged students, and are in compliance with 
all Federal and State laws on enrollment 
practices; 
‘‘(x) will share best and promising 
practices between charter schools and 
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other public schools, including, where ap-
propriate, instruction and professional de-
velopment in core academic subjects, and 
science, technology, engineering, and math 
education, including computer science; 
‘‘(xi) will ensure the charter schools 
receiving funds under the State entity’s 
program meet the educational needs of 
their students, including students with dis-
abilities and English learners; 
‘‘(xii) will support efforts to increase 
quality initiatives, including meeting the 
quality authorizing elements described in 
paragraph (2)(E); 
‘‘(xiii) in the case of a State entity 
not described in clause (xiv), will provide 
oversight of authorizing activity, including 
how the State will approve, actively mon-
itor, and re-approve or revoke the author-
ity of an authorized public chartering 
agency based on the performance of the 
charter schools authorized by such agency 
in the areas of student achievement, stu-
dent safety, financial management, and 
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compliance with all applicable statutes and 
regulations; 
‘‘(xiv) in the case of a State entity de-
fined in subsection (i)(4), will work with 
the State to provide assistance to and over-
sight of authorized public chartering agen-
cies for authorizing activity described in 
clause (xiii); and 
‘‘(xv) will work with eligible applicants 
receiving a subgrant under the State enti-
ty’s program to support the opening of 
charter schools or charter school models 
described in clause (i) that are secondary 
schools; 
‘‘(B) of the extent to which the State enti-
ty— 
‘‘(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, replicated, high-quality charter 
school models, or expanded, high-quality 
charter schools; 
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‘‘(C) of how the State 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, 
how a school’s performance in the 
State’s academic accountability sys-
tem will be a primary factor for re-
newal or revocation of the school’s 
charter, and how the State entity and 
the authorized public chartering agen-
cy involved will reserve the right to re-
voke or not renew a school’s charter 
based on financial, structural, or oper-
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ational factors involving the manage-
ment of the school; 
‘‘(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 State entity’s program; and 
‘‘(IV) 
a 
description 
of 
the 
planned activities and expenditures 
for the subgrant funds for purposes of 
opening and preparing to operate a 
new charter school, a replicated, high- 
quality charter school model, or an ex-
panded, high-quality charter school, 
and how the school or model will 
maintain financial sustainability after 
the end of the subgrant period; and 
‘‘(ii) a description of how the State 
entity will review applications; 
‘‘(D) in the case of an entity that partners 
with an outside organization to carry out the 
State entity’s quality charter school program, in 
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whole or in part, of the roles and responsibil-
ities of this partner; 
‘‘(E) of how the State entity will help the 
charter schools receiving funds under the State 
entity’s program consider the transportation 
needs of the schools’ students; and 
‘‘(F) of how the State 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 State entity’s program will have a 
high degree of autonomy over budget and oper-
ations; 
‘‘(B) the State entity will support charter 
schools in meeting the educational needs of 
their students as described in paragraph 
(1)(A)(xi); 
‘‘(C) the State entity will ensure that the 
authorized public chartering agency of any 
charter school that receives funds under the 
State entity’s program— 
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‘‘(i) adequately monitors each charter 
school in recruiting, enrolling, and meeting 
the needs of all students, including stu-
dents with disabilities and English learn-
ers; and 
‘‘(ii) 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 State entity will provide adequate 
technical assistance to eligible applicants to— 
‘‘(i) meet the objectives described in 
clauses (viii) and (ix) of paragraph (1)(A) 
and paragraph (2)(B); and 
‘‘(ii) recruit, enroll, and retain tradi-
tionally underserved students, including 
students with disabilities and English 
learners, at rates similar to traditional 
public schools; 
‘‘(E) the State entity will promote quality 
authorizing, such as through providing technical 
assistance and supporting all authorized public 
chartering agencies in the State to improve the 
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oversight of their charter schools, including 
by— 
‘‘(i) assessing annual performance 
data of the schools, including, as appro-
priate, graduation rates, student academic 
growth, and rates of student attrition; 
‘‘(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; and 
‘‘(iii) holding charter schools account-
able to the academic, financial, and oper-
ational quality controls agreed to between 
the charter school and the authorized pub-
lic chartering agency involved, such as 
through renewal, non-renewal, or revoca-
tion of the school’s charter; 
‘‘(F) the State entity will work to ensure 
that charter schools are included with the tradi-
tional public schools in decision-making about 
the public school system in the State; and 
‘‘(G) The State entity will ensure that each 
charter school in the State makes publicly avail-
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