HR 2218 RFS
‘‘(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, 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
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. 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
‘‘(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. 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
‘‘(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 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
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.— 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
‘‘(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). 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
‘‘(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-
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
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. 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
‘‘(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-
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
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 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
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-
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
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. 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
‘‘(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 
(2) by striking ‘‘section 602’’ and inserting 
‘‘section 602(14)’’. 
SEC. 9. DEFINITIONS. 
Section 5210 (20 U.S.C. 7221i) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (K); 
(B) by striking the period at the end of 
subparagraph (L) and inserting ‘‘; and’’; and 
(C) by adding at the end, the following: 
‘‘(M) may serve prekindergarten or post 
secondary students.’’; 
(2) in paragraph (3)(B), by striking ‘‘under 
section 5203(d)(3)’’; and 
(3) by adding at the end the following: 
‘‘(5) EXPANSION OF A HIGH-QUALITY CHARTER 
SCHOOL.—The term ‘expansion of a high-quality 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
charter school’ means a high-quality charter school 
that either significantly increases its enrollment or 
adds one or more grades to its school. 
‘‘(6) HIGH-QUALITY
CHARTER
SCHOOL.—The 
term ‘high-quality charter school’ means a charter 
school that— 
‘‘(A) shows evidence of strong academic re-
sults, which may include strong academic 
growth as determined by a State; 
‘‘(B) has no significant issues in the areas 
of student safety, financial management, or 
statutory or regulatory compliance; 
‘‘(C) has demonstrated success in signifi-
cantly increasing student academic achievement 
and attainment for all students served by char-
ter schools; and 
‘‘(D) has demonstrated success in increas-
ing student academic achievement for the 
groups 
of 
students 
described 
in 
section 
1111(b)(2)(C)(v)(II). 
‘‘(7) REPLICABLE, 
HIGH-QUALITY
CHARTER 
SCHOOL MODEL.—The term ‘replicable, high-quality 
charter school model’ means a high-quality charter 
school that will open a new campus under an exist-
ing charter.’’. 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS
HR 2218 RFS
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: 
KAREN L. HAAS, 
Clerk. 
VerDate Mar 15 2010 
07:09 Sep 15, 2011
Jkt 099200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H2218.RFS
H2218
tjames on DSK6SPTVN1PROD with BILLS