IB 
Union Calendar No. 312 
113TH CONGRESS 
2D SESSION 
H. R. 10 
[Report No. 113–423] 
To amend the charter school program under the Elementary and Secondary 
Education Act of 1965. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 1, 2014 
Mr. KLINE (for himself and Mr. GEORGE MILLER of California) introduced 
the following bill; which was referred to the Committee on Education and 
the Workforce 
APRIL 29, 2014 
Additional sponsors: Mr. HINOJOSA, Mr. HUNTER, Mr. MESSER, Mr. PETERS 
of California, Mr. POLIS, Mr. ROE of Tennessee, Mr. ROKITA, Mr. 
BUCSHON, Mr. DESJARLAIS, Mr. WALBERG, Mr. DUFFY, Mr. PETRI, Mr. 
WOMACK, Mr. WEBSTER of Florida, Mrs. BROOKS of Indiana, Mr. 
BYRNE, Mr. FARENTHOLD, Mr. GUTHRIE, Mr. HECK of Nevada, Mr. 
HUDSON, and Mr. WILSON of South Carolina 
APRIL 29, 2014 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 1, 2014] 
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A BILL 
To amend the charter school program under the Elementary 
and Secondary Education Act of 1965. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Success and Oppor-
tunity 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this Act a section or other provision is amended or repealed, 
such amendment or repeal shall be considered to be made 
to that section or other provision of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.). 
SEC. 3. SUBPART HEADING; PURPOSE. 
(a) SUBPART HEADING.—The heading for subpart 1 
of part B of title V (20 U.S.C. 7221 et seq.) is amended 
to read as follows: ‘‘Charter School Program’’. 
(b) 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 system 
and education opportunities for all Americans by 
supporting innovation in public education in public 
school settings that prepare students to compete and 
contribute to the global economy; 
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‘‘(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 char-
ter 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 under-
served students to attend charter schools and meet 
challenging State academic achievement standards; 
‘‘(7) support efforts to strengthen the charter 
school authorizing process to improve performance 
management, including transparency, oversight, mon-
itoring, and evaluation of such schools; and 
‘‘(8) support quality accountability and trans-
parency in the operational performance of all author-
ized public chartering agencies, which include State 
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educational agencies, local educational agencies, and 
other authorizing entities.’’. 
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 secondary 
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 credit 
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 pro-
gram on schools participating in the program; 
and 
‘‘(D) stronger charter school authorizing. 
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‘‘(b) FUNDING ALLOTMENT.—From the amount made 
available under section 5211 for a fiscal year, the Secretary 
shall— 
‘‘(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 recipient 
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 Qual-
ity 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 
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State entities having applications approved pursuant 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— 
‘‘(A) use not less than 90 percent of the 
grant funds to award subgrants to eligible appli-
cants, 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); 
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‘‘(B) reserve not less than 7 percent of such 
funds to carry out the activities described in sub-
section (a)(2); and 
‘‘(C) reserve not more than 3 percent of such 
funds 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, con-
tracts, 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 subset of, edu-
cationally disadvantaged students if— 
‘‘(A) the use of weighted lotteries in favor of 
such students is not prohibited by State law, and 
such State law is consistent with laws described 
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 NUM-
BER AND AMOUNT; DIVERSITY OF PROJECTS; WAIVERS.— 
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‘‘(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 eli-
gible 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— 
‘‘(i) award not less than 3 grants 
under this section; 
‘‘(ii) wholly fund each grant awarded 
under this section, without making continu-
ation 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 
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‘‘(B) midway through the grant period of 
each grant awarded under this section to a State 
entity, review the grant to determine whether the 
State entity will meet the agreed upon uses of 
funds in the State entity’s application, and if 
not, reallot the grant funds that will not be used 
for such agreed upon uses of funds to other State 
entities during the succeeding grant competition 
under this section. 
‘‘(4) DIVERSITY OF PROJECTS.—Each State enti-
ty 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 representing 
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 approved 
application under this section; and 
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‘‘(B) the Secretary determines that granting 
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 pe-
riod. 
‘‘(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 
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 receive 
a grant under this section shall submit an application to 
the Secretary at such time and in such manner as the Sec-
retary may require. The application shall include the fol-
lowing: 
‘‘(1) DESCRIPTION OF PROGRAM.—A description 
of the State entity’s objectives under this section and 
how the objectives of the program will be carried out, 
including a description— 
‘‘(A) of how the State entity— 
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‘‘(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; 
‘‘(iii) will work with eligible appli-
cants to ensure that the eligible applicants 
access all Federal funds that they are eligi-
ble to receive, and help the charter schools 
supported by the applicants and the stu-
dents attending the charter schools— 
‘‘(I) participate in the Federal 
programs in which the schools and stu-
dents are eligible to participate; 
‘‘(II) receive the commensurate 
share of Federal funds the schools and 
students are eligible to receive under 
such programs; and 
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‘‘(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 charter 
school that closes or loses its charter to at-
tend 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 schools 
in the State to maximize charter school 
participation in Federal and State 
programs for charter schools; and 
‘‘(II) will work with the State 
educational agency to adequately oper-
ate 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, 
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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 ap-
plicant’s 
application, 
after 
the 
subgrant funds have expired; 
‘‘(vii) will support charter schools in 
local educational agencies with large num-
bers of schools identified by the State for 
improvement; 
‘‘(viii) will work with charter schools 
to promote inclusion of all students and 
support all students once they are enrolled 
to promote retention; 
‘‘(ix) will work with charter schools on 
recruitment practices, including efforts to 
engage groups that may otherwise have lim-
ited opportunities to participate in charter 
schools, and to ensure such schools do not 
have in effect policies or procedures that 
may create barriers to enrollment of stu-
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dents, 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 other 
public schools, including, where appro-
priate, instruction and professional develop-
ment in core academic subjects, and science, 
technology, engineering, and math edu-
cation, including computer science; 
‘‘(xi) will ensure the charter schools re-
ceiving funds under the State entity’s pro-
gram meet the educational needs of their 
students, including students with disabil-
ities 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 over-
sight of authorizing activity, including how 
the State will approve, actively monitor, 
and re-approve or revoke the authority of 
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an authorized public chartering agency 
based on the performance of the charter 
schools authorized by such agency in the 
areas of student achievement, student safety, 
financial management, and compliance 
with all applicable statutes and regulations; 
and 
‘‘(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); 
‘‘(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 strength-
en a cohesive statewide system to support 
the opening of new charter schools, rep-
licated, high-quality charter school models, 
or expanded, high-quality charter schools; 
‘‘(C) of how the State entity will carry out 
the subgrant competition, including— 
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‘‘(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 applicants, 
partner organizations, and manage-
ment organizations, including the ad-
ministrative 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 system 
will be a primary factor for renewal or 
revocation of the school’s charter, and 
how the State entity and the author-
ized public chartering agency involved 
will reserve the right to revoke or not 
renew a school’s charter based on fi-
nancial, structural, or operational fac-
tors involving the management of the 
school; 
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‘‘(III) a description of how the eli-
gible 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 char-
ter school, a replicated, high-quality 
charter school model, or an expanded, 
high-quality charter school, and how 
the school or model will maintain fi-
nancial sustainability after the end of 
the subgrant period; and 
‘‘(ii) a description of how the State en-
tity 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 
whole or in part, of the roles and responsibilities 
of this partner; 
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‘‘(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 de-
scription 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)(x); 
‘‘(C) the State entity will ensure that the 
authorized public chartering agency of any char-
ter school that receives funds under the State en-
tity’s program— 
‘‘(i) adequately monitors each charter 
school in recruiting, enrolling, and meeting 
the needs of all students, including students 
with disabilities and English learners; and 
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‘‘(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 (vii) and (viii) 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 
oversight of their charter schools, including by— 
‘‘(i) assessing annual performance data 
of the schools, including, as appropriate, 
graduation rates and student academic 
growth; 
‘‘(ii) 
reviewing 
the 
schools’ 
inde-
pendent, annual audits of financial state-
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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 public 
chartering agency involved, such as through 
renewal, non-renewal, or revocation 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 make publicly avail-
able, consistent with the dissemination require-
ments of the annual State report card, informa-
tion to help parents make informed decisions 
about the education options available to their 
children, including information on the edu-
cational program, student support services, and 
annual performance and enrollment data for the 
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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 State entity believes are 
necessary for the successful operation of the charter 
schools that will receive funds under the State entity’s 
program 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 or, in the case of a State entity defined 
in subsection (i)(4), a description of how the State en-
tity will work with the State to request necessary 
waivers where applicable. 
‘‘(f) SELECTION CRITERIA; PRIORITY.— 
‘‘(1) SELECTION CRITERIA.—The Secretary shall 
award grants to State entities under this section on 
the basis of the quality of the applications submitted 
under subsection (e), after taking into consider-
ation— 
‘‘(A) the degree of flexibility afforded by the 
State’s public charter school law and how the 
State entity will work to maximize the flexibility 
provided to charter schools under the law; 
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‘‘(B) the ambitiousness of the State entity’s 
objectives for the quality charter school program 
carried out under this section; 
‘‘(C) the quality of the strategy for assessing 
achievement of those objectives; 
‘‘(D) the likelihood that the eligible appli-
cants receiving subgrants under the program will 
meet those objectives and improve educational re-
sults for students; 
‘‘(E) the State entity’s plan to— 
‘‘(i) adequately monitor the eligible ap-
plicants receiving subgrants under the State 
entity’s program; 
‘‘(ii) work with the authorized public 
chartering agencies involved to avoid dupli-
cation of work for the charter schools and 
authorized public chartering agencies; and 
‘‘(iii) provide adequate technical as-
sistance and support for— 
‘‘(I) the charter schools receiving 
funds under the State entity’s pro-
gram; and 
‘‘(II) quality authorizing efforts 
in the State; and 
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‘‘(F) the State entity’s plan to solicit and 
consider input from parents and other members 
of the community on the implementation and op-
eration of the charter schools in the State. 
‘‘(2) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to State enti-
ties to the extent that they meet the following criteria: 
‘‘(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 quality au-
thorized public chartering agency that is an enti-
ty other than a local educational agency. 
‘‘(B) The State entity is located in a State 
that does not impose any limitation on the num-
ber or percentage of charter schools that may 
exist or the number or percentage of students 
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 
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