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submit an application to the State educational agen-
cy at such time, in such manner, and including such 
information as the State educational agency may 
reasonably require. 
‘‘(2) CONTENTS.—Each application submitted 
under paragraph (1) shall include— 
‘‘(A) a description of the programs and ac-
tivities to be funded and how they are con-
sistent with the purposes of this part; and 
‘‘(B) an assurance that the eligible entity 
will comply with section 5501 (regarding par-
ticipation by private school children and teach-
ers). 
‘‘(c) PEER REVIEW.—In reviewing applications under 
this section, a State educational agency shall use a peer 
review process or other methods of assuring the quality 
of such applications but the review shall only judge the 
likelihood of the activity to increase student academic 
achievement. The reviewers shall not make a determina-
tion based on the policy of the proposed activity. 
‘‘(d) GEOGRAPHIC DIVERSITY.—A State educational 
agency shall distribute funds under this section equitably 
among geographic areas within the State, including rural, 
suburban, and urban communities. 
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‘‘(e) DURATION OF AWARDS.—A State educational 
agency may award subgrants under this section for a pe-
riod of not more than 5 years. 
‘‘(f) MATCHING.—An eligible entity receiving a 
subgrant under this section shall provide, either directly 
or through private contributions, non-Federal matching 
funds equal to not less than 10 percent of the amount 
of the subgrant. 
‘‘SEC. 2222. LOCAL AUTHORIZED ACTIVITIES. 
‘‘(a) IN GENERAL.—Each eligible entity receiving a 
subgrant under section 2221 shall use such subgrant 
funds to develop, implement, and evaluate comprehensive 
programs and activities, that are in accordance with the 
purpose of this part and— 
‘‘(1) are consistent with the principles of effec-
tiveness described in subsection (b); and 
‘‘(2) may include, among other programs and 
activities— 
‘‘(A) developing and implementing initia-
tives to assist in recruiting, hiring, and retain-
ing highly effective teachers and school leaders, 
including initiatives that provide— 
‘‘(i) differential, incentive, or bonus 
pay for teachers and school leaders; 
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‘‘(ii) performance-based pay systems 
for teachers and school leaders; 
‘‘(iii) teacher and school leader ad-
vancement initiatives that promote profes-
sional growth and emphasize multiple ca-
reer paths and pay differentiation; 
‘‘(iv) new teacher and school leader 
induction and mentoring programs that 
are designed to improve instruction, stu-
dent academic achievement, and to in-
crease teacher and school leader retention; 
and 
‘‘(v) teacher residency programs, and 
school leader residency programs, designed 
to develop and support new teachers or 
new school leaders, respectively; 
‘‘(B) supporting the establishment or ex-
pansion of teacher or school leader preparation 
academies under section 2211(d)(3)(B); 
‘‘(C) recruiting qualified individuals from 
other fields, including individuals from com-
puter science and other science, technology, en-
gineering, and math fields, mid-career profes-
sionals from other occupations, and former mili-
tary personnel; 
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‘‘(D) establishing, improving, or expanding 
model instructional programs to ensure that all 
children meet the State’s academic standards; 
‘‘(E) providing evidence-based, job embed-
ded, continuous professional development for 
teachers and school leaders focused on improv-
ing teaching and student academic achievement; 
‘‘(F) implementing programs based on the 
current science of learning, which includes re-
search on positive brain change and cognitive 
skill development; 
‘‘(G) recruiting and training teachers to 
teach dual credit, dual enrollment, Advanced 
Placement, or International Baccalaureate post-
secondary-level courses to secondary school stu-
dents; and 
‘‘(H) other activities and programs identi-
fied as necessary by the local educational agen-
cy that meet the purpose of this part. 
‘‘(b) PRINCIPLES OF EFFECTIVENESS.—For a pro-
gram or activity developed pursuant to this section to meet 
the principles of effectiveness, such program or activity 
shall— 
‘‘(1) be based upon an assessment of objective 
data regarding the need for programs and activities 
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in the elementary schools and secondary schools 
served to increase the number of teachers and school 
leaders who are effective in improving student aca-
demic achievement; 
‘‘(2) reflect evidence-based research, or in the 
absence of a strong research base, reflect effective 
strategies in the field, that provide evidence that the 
program or activity will improve student academic 
achievement; and 
‘‘(3) include meaningful and ongoing consulta-
tion with, and input from, teachers, school leaders, 
and parents, in the development of the application 
and administration of the program or activity. 
‘‘Subpart 3—General Provisions 
‘‘SEC. 2231. PERIODIC EVALUATION. 
‘‘(a) IN GENERAL.—Each eligible entity and each 
teacher or school leader preparation academy that receives 
funds under this part shall undergo a periodic evaluation 
by the State educational agency involved to assess such 
entity’s or such academy’s progress toward achieving the 
purposes of this part. 
‘‘(b) USE OF RESULTS.—The results of an evaluation 
described in subsection (a) of an eligible entity or academy 
shall be— 
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‘‘(1) used to refine, improve, and strengthen 
such eligible entity or such academy, respectively; 
and 
‘‘(2) made available to the public upon request, 
with public notice of such availability provided. 
‘‘SEC. 2232. REPORTING REQUIREMENTS. 
‘‘(a) ELIGIBLE ENTITIES AND ACADEMIES.—Each 
eligible entity and each teacher or school leader prepara-
tion academy that receives funds from a State educational 
agency under this part shall prepare and submit annually 
to such State educational agency a report that includes— 
‘‘(1) a description of the progress of the eligible 
entity or teacher or school leader preparation acad-
emy, respectively, in meeting the purposes of this 
part; 
‘‘(2) a description of the programs and activi-
ties conducted by the eligible entity or teacher or 
school leader preparation academy, respectively, with 
funds received under this part; 
‘‘(3) how the eligible entity or teacher or school 
leader preparation academy, respectively, is using 
such funds; and 
‘‘(4) any such other information as the State 
educational agency may require. 
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‘‘(b) STATE EDUCATIONAL AGENCIES.—Each State 
educational agency that receives a grant under this part 
shall prepare and submit, annually, to the Secretary a re-
port that includes— 
‘‘(1) a description of the programs and activi-
ties conducted by the State educational agency with 
grant funds received under this part; 
‘‘(2) a description of the progress of the State 
educational agency in meeting the purposes of this 
part described in section 2201; 
‘‘(3) how the State educational agency is using 
grant funds received under this part; 
‘‘(4) the methods and criteria the State edu-
cational agency used to award subgrants in a timely 
manner to eligible entities under section 2221 and, 
if applicable, funds in a timely manner to teacher or 
school 
leader 
academies 
under 
section 
2211(d)(3)(B); and 
‘‘(5) the results of the periodic evaluations con-
ducted under section 2231. 
‘‘SEC. 2233. NATIONAL ACTIVITIES. 
‘‘From the funds reserved by the Secretary under sec-
tion 2211(a)(2)(A), the Secretary shall, directly or 
through grants and contracts— 
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‘‘(1) provide technical assistance to States and 
eligible entities in carrying out activities under this 
part; and 
‘‘(2) acting through the Institute of Education 
Sciences, conduct national evaluations of activities 
carried out by States and eligible entities under this 
part. 
‘‘SEC. 2234. DEFINITIONS. 
‘‘In this part: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a local educational agency or consor-
tium of local educational agencies; 
‘‘(B) an institution of higher education or 
consortium of such institutions in partnership 
with a local educational agency or consortium 
of local educational agencies; 
‘‘(C) a for-profit organization, a nonprofit 
organization, or a consortium of for-profit or 
nonprofit organizations in partnership with a 
local educational agency or consortium of local 
educational agencies; or 
‘‘(D) a consortium of the entities described 
in subparagraphs (B) and (C). 
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‘‘(2) STATE.—The term ‘State’ means each of 
the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico. 
‘‘(3) STATE AUTHORIZER.—The term ‘State au-
thorizer’ means an entity designated by the Gov-
ernor of a State to authorize teacher or school leader 
preparation academies within the State that— 
‘‘(A) enters into an agreement with a 
teacher or school leader preparation academy 
that— 
‘‘(i) specifies the goals expected of the 
academy, which, at a minimum, include the 
goals described in paragraph (4); and 
‘‘(ii) does not reauthorize the academy 
if such goals are not met; and 
‘‘(B) may be a nonprofit organization, a 
State educational agency, or other public entity, 
or consortium of such entities (including a con-
sortium of State educational agencies). 
‘‘(4) TEACHER OR SCHOOL LEADER PREPARA-
TION ACADEMY.—The term ‘teacher or school leader 
preparation academy’ means a public or private enti-
ty, or a nonprofit or for-profit organization, which 
may be an institution of higher education or an or-
ganization affiliated with an institution of higher 
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education, that will prepare teachers or school lead-
ers to serve in schools, and that— 
‘‘(A) enters into an agreement with a State 
authorizer that specifies the goals expected of 
the academy, including— 
‘‘(i) a requirement that prospective 
teachers or school leaders who are enrolled 
in a teacher or school leader preparation 
academy receive a significant part of their 
training through clinical preparation that 
partners the prospective candidate with an 
effective teacher or school leader, respec-
tively, with a demonstrated record of in-
creasing student achievement, while also 
receiving concurrent instruction from the 
academy in the content area (or areas) in 
which the prospective teacher or school 
leader will become certified or licensed; 
‘‘(ii) the number of effective teachers 
or school leaders, respectively, who will 
demonstrate success in increasing student 
achievement 
that 
the 
academy 
will 
produce; and 
‘‘(iii) a requirement that a teacher or 
school leader preparation academy will only 
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award a certificate of completion after the 
graduate demonstrates that the graduate is 
an effective teacher or school leader, re-
spectively, with a demonstrated record of 
increasing student achievement, except 
that an academy may award a provisional 
certificate for the period necessary to allow 
the graduate to demonstrate such effective-
ness; 
‘‘(B) does not have restrictions on the 
methods the academy will use to train prospec-
tive teacher or school leader candidates, includ-
ing— 
‘‘(i) obligating (or prohibiting) the 
academy’s faculty to hold advanced degrees 
or conduct academic research; 
‘‘(ii) restrictions related to the acad-
emy’s physical infrastructure; 
‘‘(iii) restrictions related to the num-
ber of course credits required as part of 
the program of study; 
‘‘(iv) restrictions related to the under-
graduate coursework completed by teachers 
teaching or working on alternative certifi-
cates, licenses, or credentials, as long as 
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such teachers have successfully passed all 
relevant State-approved content area ex-
aminations; or 
‘‘(v) restrictions related to obtaining 
accreditation from an accrediting body for 
purposes of becoming an academy; 
‘‘(C) limits admission to its program to 
prospective teacher or school leader candidates 
who demonstrate strong potential to improve 
student achievement, based on a rigorous selec-
tion process that reviews a candidate’s prior 
academic achievement or record of professional 
accomplishment; and 
‘‘(D) results in a certificate of completion 
that the State may recognize as at least the 
equivalent of a master’s degree in education for 
the purposes of hiring, retention, compensation, 
and promotion in the State. 
‘‘(5) TEACHER
RESIDENCY
PROGRAM.—The 
term ‘teacher residency program’ means a school- 
based teacher preparation program in which a pro-
spective teacher— 
‘‘(A) for one academic year, teaches along-
side an effective teacher, as determined by a 
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teacher evaluation system implemented under 
part A, who is the teacher of record; 
‘‘(B) receives concurrent instruction during 
the year described in subparagraph (A) from 
the partner institution (as defined in section 
200 of the Higher Education Act of 1965 (20 
U.S.C. 1021)), which courses may be taught by 
local educational agency personnel or residency 
program faculty, in the teaching of the content 
area in which the teacher will become certified 
or licensed; and 
‘‘(C) acquires effective teaching skills.’’. 
(d) PART C.—Part C of title II (20 U.S.C. 6671 et 
seq.) is amended— 
(1) by striking subparts 1 through 4; 
(2) by striking the heading relating to subpart 
5; 
(3) by striking sections 2361 and 2368; 
(4) in section 2362, by striking ‘‘principals’’ 
and inserting ‘‘school leaders’’; 
(5) in section 2363(6)(A), by striking ‘‘prin-
cipal’’ and inserting ‘‘school leader’’; 
(6) in section 2366(b), by striking ‘‘ate law’’ 
and inserting ‘‘(3) A State law’’; 
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(7) by redesignating section 2362 as section 
2361; 
(8) by redesignating sections 2364 through 
2367 as sections 2362 through 2365, respectively; 
and 
(9) by redesignating section 2363 as section 
2366 and transferring such section to appear after 
section 2365 (as so redesignated). 
(e) PART D.—Part D of title II (20 U.S.C. 6751 et 
seq.) is amended to read as follows: 
‘‘PART D—GENERAL PROVISIONS 
‘‘SEC. 2401. INCLUSION OF CHARTER SCHOOLS. 
‘‘In this title, the term ‘local educational agency’ in-
cludes a charter school (as defined in section 5101) that, 
in the absence of this section, would not have received 
funds under this title. 
‘‘SEC. 2402. PARENTS’ RIGHT TO KNOW. 
‘‘At the beginning of each school year, a local edu-
cational agency that receives funds under this title shall 
notify the parents of each student attending any school 
receiving funds under this title that the parents may re-
quest, and the agency will provide the parents on request 
(and in a timely manner), information regarding the pro-
fessional qualifications of the student’s classroom teach-
ers. 
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‘‘SEC. 2403. SUPPLEMENT, NOT SUPPLANT. 
‘‘Funds received under this title shall be used to sup-
plement, and not supplant, non-Federal funds that would 
otherwise be used for activities authorized under this 
title.’’. 
SEC. 202. CONFORMING REPEALS. 
(a) CONFORMING REPEALS.—Title II of the Higher 
Education Act of 1965 (20 U.S.C. 1021 et seq.) is amend-
ed by repealing sections 201 through 204. 
(b) EFFECTIVE DATE.—The repeals made by sub-
section (a) shall take effect October 1, 2013. 
TITLE III—PARENTAL ENGAGE-
MENT 
AND 
LOCAL 
FLEXI-
BILITY 
SEC. 301. PARENTAL ENGAGEMENT AND LOCAL FLEXI-
BILITY. 
Title III (20 U.S.C. 6801 et seq.) is amended to read 
as follows: 
‘‘TITLE III—PARENTAL ENGAGE-
MENT 
AND 
LOCAL 
FLEXI-
BILITY 
‘‘PART A—PARENTAL ENGAGEMENT 
‘‘Subpart 1—Charter School Program 
‘‘SEC. 3101. PURPOSE. 
‘‘It is the purpose of this subpart to— 
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‘‘(1) improve the United States education sys-
tem and educational opportunities for all Americans 
by supporting innovation in public education in pub-
lic school settings that prepare students to compete 
and contribute to the global economy; 
‘‘(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 
charter 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, English learn-
ers, and other traditionally underserved students to 
attend charter schools and meet challenging State 
academic achievement standards; and 
‘‘(7) support efforts to strengthen the charter 
school authorizing process to improve performance 
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management, including transparency, monitoring, 
and evaluation of such schools. 
‘‘SEC. 3102. PROGRAM AUTHORIZED. 
‘‘(a) IN GENERAL.—From the amounts appropriated 
under section 3(c)(1)(A), the Secretary shall carry out a 
charter school program under this subpart that supports 
charter schools that serve elementary school and sec-
ondary school students by— 
‘‘(1) supporting the startup, replication, and ex-
pansion of 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; and 
‘‘(C) the evaluation of the impact of the 
program on schools participating in the pro-
gram. 
‘‘(b) FUNDING
ALLOTMENT.—From the amount 
made available under section 3(c)(1)(A) for a fiscal year, 
the Secretary shall— 
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‘‘(1) reserve 15 percent to support charter 
school facilities assistance under section 3104; 
‘‘(2) reserve not more than 5 percent to carry 
out national activities under section 3105; and 
‘‘(3) use the remaining amount after the Sec-
retary reserves funds under paragraphs (1) and (2) 
to carry out section 3103. 
‘‘(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 Student Success Act, shall con-
tinue to receive funds in accordance with the terms and 
conditions of such grant or subgrant. 
‘‘SEC. 3103. GRANTS TO SUPPORT HIGH-QUALITY CHARTER 
SCHOOLS. 
‘‘(a) IN GENERAL.—From the amount reserved 
under section 3102(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— 
‘‘(A) opening new charter schools; 
‘‘(B) opening replicable, high-quality char-
ter school models; or 
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‘‘(C) 
expanding 
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 90 percent of the grant funds to 
award subgrants to eligible applicants, in ac-
cordance with the quality charter school pro-
gram described in the entity’s application ap-
proved pursuant to subsection (f), for the pur-
poses described in subparagraphs (A) through 
(C) of subsection (a)(1); and 
‘‘(B) reserve 10 percent of such funds to 
carry out the activities described in subsection 
(a)(2), of which not more than 30 percent may 
be used 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) 
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and (B) of paragraph (1) directly or through grants, 
contracts, or cooperative agreements. 
‘‘(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 3 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 NUMBER AND AMOUNT.—The Sec-
retary shall ensure that the number of grants award-
ed under this section and the award amounts will 
allow for a sufficient number of new grants to be 
awarded under this section for each succeeding fiscal 
year. 
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‘‘(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— 
‘‘(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 without requir-
ing the adoption of any unrelated requirements over 
which the Secretary exercises administrative author-
ity except any such requirement relating to the ele-
ments of a charter school described in section 
5101(3), 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.—A State entity may not receive 
more than 1 grant under this section for a 5-year 
period. 
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‘‘(2) SUBGRANTS.—An eligible applicant may 
not receive more than 1 subgrant under this section 
for an individual charter school for a 3-year period. 
‘‘(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 in running a 
quality charter school program under this section 
and how the objectives of the program will be car-
ried out, including a description— 
‘‘(A) of how the entity— 
‘‘(i) will support both new charter 
school startup and the expansion and rep-
lication of high-quality charter school mod-
els; 
‘‘(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 applicants 
to ensure that the applicants access all 
Federal funds that they are eligible to re-
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ceive, 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; 
and 
‘‘(II) receive the commensurate 
share of Federal funds the schools 
and students are eligible to receive 
under such programs; 
‘‘(iv) in the case in which the entity is 
not a State educational agency— 
‘‘(I) will work with the State edu-
cational 
agency 
and 
the 
charter 
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 entity’s program under this 
section, where applicable; 
‘‘(v) will ensure eligible applicants 
that receive a subgrant under the entity’s 
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program are prepared to continue to oper-
ate the charter schools receiving the 
subgrant funds once the funds have ex-
pired; 
‘‘(vi) will support charter schools in 
local educational agencies with large num-
bers of schools implementing requirements 
under the State’s school improvement sys-
tem under section 1111(b)(3)(B)(iii); 
‘‘(vii) will work with charter schools to 
promote inclusion of all students and sup-
port all students once they are enrolled to 
promote retention; 
‘‘(viii) 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; 
‘‘(ix) will share best and promising 
practices between charter schools and 
other public schools, including, where ap-
propriate, instruction and professional de-
velopment in science, math, technology, 
and engineering education; 
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‘‘(x) will ensure the charter schools 
receiving funds under the entity’s program 
can meet the educational needs of their 
students, including students with disabil-
ities and English learners; and 
‘‘(xi) will support efforts to increase 
quality initiatives, including meeting the 
quality authorizing elements described in 
paragraph (2)(E); 
‘‘(B) of the extent to which the entity— 
‘‘(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 
and replicable, high-quality charter school 
models, and the expansion of high-quality 
charter schools; 
‘‘(C) of how the 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-
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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, 
and 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 
‘‘(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 entity’s program; and 
‘‘(ii) a description of how the entity 
will review applications; 
‘‘(D) in the case of an entity that partners 
with an outside organization to carry out the 
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entity’s quality charter school program, in 
whole or in part, of the roles and responsibil-
ities of this partner; 
‘‘(E) of how the entity will help the charter 
schools receiving funds under the entity’s pro-
gram consider the transportation needs of the 
schools’ students; and 
‘‘(F) of how the 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 entity’s program will have a high de-
gree of autonomy over budget and operations, 
including personnel; 
‘‘(B) the entity will support charter schools 
in meeting the educational needs of their stu-
dents as described in paragraph (1)(A)(x); 
‘‘(C) the entity will ensure that the author-
ized public chartering agency of any charter 
school that receives funds under the entity’s 
program— 
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‘‘(i) ensures that each charter school 
is meeting the obligations under this Act, 
part B of the Individuals with Disabilities 
Education Act, title VI of the Civil Rights 
Act of 1964, section 504 of the Rehabilita-
tion Act of 1973, the Age Discrimination 
Act of 1975, and title IX of the Education 
Amendments of 1972; 
‘‘(ii) adequately monitors and helps 
each charter school in recruiting, enrolling, 
and meeting the needs of all students, in-
cluding students with disabilities and 
English learners; and 
‘‘(iii) 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 entity will provide adequate tech-
nical assistance to eligible applicants to— 
‘‘(i) meet the objectives described in 
clauses (vii), (viii), and (x) of paragraph 
(1)(A); and 
‘‘(ii) enroll traditionally underserved 
students, including students with disabil-
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ities and English learners, to promote an 
inclusive education environment; 
‘‘(E) the entity will promote quality au-
thorizing, such as through providing technical 
assistance, to support all authorized public 
chartering agencies in the State to improve the 
monitoring of their charter schools, including 
by— 
‘‘(i) assessing annual performance 
data of the schools, including, as appro-
priate, 
graduation 
rates 
and 
student 
growth; and 
‘‘(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; 
‘‘(F) the entity will work to ensure that 
charter schools are included with the traditional 
public schools in decision-making about the 
public school system in the State; 
‘‘(G) the entity will ensure that each char-
ter school in the State make publicly available, 
consistent with the dissemination requirements 
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of the annual State report card, the information 
parents need to make informed decisions about 
the education options available to their children, 
including information on the educational pro-
gram, student support services, and annual per-
formance and enrollment data for the groups of 
students 
described 
in 
section 
1111(b)(3)(B)(ii)(II); 
‘‘(H) the entity will ensure that each char-
ter school provides substantive outreach to stu-
dents from low-income families and other un-
derserved populations in its plans to open new 
charter schools, replicate high-quality charter 
school models, or expand existing high-quality 
charter schools; and 
‘‘(I) the entity will allow per pupil revenues 
to shared between local educational agencies to 
reflect split student enrollment in 2 or more 
part-time educational programs operated or au-
thorized by different local educational agencies. 
‘‘(3) REQUESTS FOR WAIVERS.—A request and 
justification for waivers of any Federal statutory or 
regulatory provisions that the entity believes are nec-
essary for the successful operation of the charter 
schools that will receive funds under the entity’s pro-
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gram 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. 
‘‘(f) SELECTION CRITERIA; PRIORITY.— 
‘‘(1) SELECTION
CRITERIA.—The Secretary 
shall award grants to State entities under this sec-
tion on the basis of the quality of the applications 
submitted under subsection (e), after taking into 
consideration— 
‘‘(A) the degree of flexibility afforded by 
the State’s public charter school law and how 
the entity will work to maximize the flexibility 
provided to charter schools under the law; 
‘‘(B) the ambitiousness of the entity’s ob-
jectives for the quality charter school program 
carried out under this section; 
‘‘(C) the quality of the strategy for assess-
ing achievement of those objectives; 
‘‘(D) the likelihood that the eligible appli-
cants receiving subgrants under the program 
will meet those objectives and improve edu-
cational results for students; 
‘‘(E) the proposed number of new charter 
schools to be opened, and the proposed number 
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of high-quality charter schools to be replicated 
or expanded under the program; 
‘‘(F) the entity’s plan to— 
‘‘(i) adequately monitor the eligible 
applicants receiving subgrants under the 
entity’s program; and 
‘‘(ii) work with the authorized public 
chartering agencies involved to avoid dupli-
cation of work for the charter schools and 
authorized public chartering agencies; 
‘‘(G) the entity’s plan to provide adequate 
technical assistance, as described in the entity’s 
application under subsection (e), for the eligible 
applicants receiving subgrants under the enti-
ty’s program under this section; 
‘‘(H) the entity’s plan to support quality 
authorizing efforts in the State, consistent with 
the objectives described in subparagraph (B); 
and 
‘‘(I) the entity’s plan to solicit and con-
sider input from parents and other members of 
the community on the implementation and oper-
ation of the charter schools in the State. 
‘‘(2) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to State en-
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tities to the extent that they meet the following cri-
teria: 
‘‘(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 qual-
ity authorized public chartering agency that is 
an entity other than a local educational agency. 
‘‘(B) The State entity is located in a State 
that does not impose any limitation on the 
number or percentage of charter schools that 
may exist or the number or percentage of stu-
dents 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 best practices from charter schools to 
help improve struggling schools and local edu-
cational agencies. 
‘‘(E) The State entity partners with an or-
ganization that has a demonstrated record of 
success in developing management organiza-
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tions to support the development of charter 
schools in the State. 
‘‘(F) The State entity demonstrates quality 
policies and practices to support and monitor 
charter schools through factors including— 
‘‘(i) the proportion of high-quality 
charter schools in the State; and 
‘‘(ii) the proportion of charter schools 
enrolling, at a rate similar to traditional 
public schools, traditionally underserved 
students, including students with disabil-
ities and English learners. 
‘‘(G) The State entity supports charter 
schools that support at-risk students through 
activities such as dropout prevention or dropout 
recovery. 
‘‘(H) The State entity authorizes all char-
ter schools in the State to serve as school food 
authorities. 
‘‘(g) LOCAL USES OF FUNDS.—An eligible applicant 
receiving a subgrant under this section shall use such 
funds to open new charter schools, open replicable, high- 
quality charter school models, or expand existing high- 
quality charter schools, which may include: (1) paying 
costs associated with preparing teachers to ensure strong 
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school starts; (2) purchasing instructional materials and 
implementing teacher and principal professional develop-
ment programs; and (3) providing the necessary renova-
tions and minor facilities repairs, excluding construction, 
to ensure a strong school opening or to meet the needs 
of increased student enrollment. 
‘‘(h) REPORTING REQUIREMENTS.—Each State enti-
ty receiving a grant under this section shall submit to the 
Secretary, at the end of the third year of the 5-year grant 
period and at the end of such grant period, a report on— 
‘‘(1) the number of students served under each 
subgrant awarded under this section and, if applica-
ble, how many new students were served during each 
year of the subgrant period; 
‘‘(2) the number of subgrants awarded under 
this section to carry out each of the following— 
‘‘(A) the opening of new charter schools; 
‘‘(B) the opening of replicable, high-quality 
charter school models; and 
‘‘(C) the expansion of high-quality charter 
schools; 
‘‘(3) the progress the entity made toward meet-
ing the priorities described in subsection (f)(2), as 
applicable; 
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‘‘(4) how the entity met the objectives of the 
quality charter school program described in the enti-
ty’s application under subsection (e); 
‘‘(5) how the entity complied with, and ensured 
that eligible applicants complied with, the assurances 
described in the entity’s application; and 
‘‘(6) how the entity worked with authorized 
public chartering agencies and how such agencies 
worked with the management company or leadership 
of the schools that received subgrants under this 
section. 
‘‘(i) STATE ENTITY DEFINED.—For purposes of this 
section, the term ‘State entity’ means— 
‘‘(1) a State educational agency; 
‘‘(2) a State charter school board; 
‘‘(3) a Governor of a State; or 
‘‘(4) a charter support organization. 
‘‘SEC. 3104. FACILITIES FINANCING ASSISTANCE. 
‘‘(a) GRANTS TO ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—The Secretary shall not use 
less than 50 percent of the amount reserved under 
section 3102(b)(1) to award grants to eligible enti-
ties that have the highest-quality applications ap-
proved under subsection (d), after considering the 
diversity of such applications, to demonstrate inno-
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vative methods of assisting charter schools to ad-
dress the cost of acquiring, constructing, and ren-
ovating facilities by enhancing the availability of 
loans or bond financing. 
‘‘(2) ELIGIBLE
ENTITY
DEFINED.—For pur-
poses of this section, the term ‘eligible entity’ 
means— 
‘‘(A) a public entity, such as a State or 
local governmental entity; 
‘‘(B) a private nonprofit entity; or 
‘‘(C) a consortium of entities described in 
subparagraphs (A) and (B). 
‘‘(b) GRANTEE SELECTION.—The Secretary shall 
evaluate each application submitted under subsection (d), 
and shall determine whether the application is sufficient 
to merit approval. 
‘‘(c) GRANT CHARACTERISTICS.—Grants under sub-
section (a) shall be of a sufficient size, scope, and quality 
so as to ensure an effective demonstration of an innovative 
means of enhancing credit for the financing of charter 
school acquisition, construction, or renovation. 
‘‘(d) APPLICATIONS.— 
‘‘(1) IN GENERAL.—To receive a grant under 
subsection (a), an eligible entity shall submit to the 
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Secretary an application in such form as the Sec-
retary may reasonably require. 
‘‘(2) CONTENTS.—An application submitted 
under paragraph (1) shall contain— 
‘‘(A) a statement identifying the activities 
proposed to be undertaken with funds received 
under subsection (a), including how the eligible 
entity will determine which charter schools will 
receive assistance, and how much and what 
types of assistance charter schools will receive; 
‘‘(B) a description of the involvement of 
charter schools in the application’s development 
and the design of the proposed activities; 
‘‘(C) a description of the eligible entity’s 
expertise in capital market financing; 
‘‘(D) a description of how the proposed ac-
tivities will leverage the maximum amount of 
private-sector financing capital relative to the 
amount of Federal, State, or local government 
funding used and otherwise enhance credit 
available to charter schools, including how the 
entity will offer a combination of rates and 
terms more favorable than the rates and terms 
that a charter school could receive without as-
sistance from the entity under this section; 
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‘‘(E) a description of how the eligible enti-
ty possesses sufficient expertise in education to 
evaluate the likelihood of success of a charter 
school program for which facilities financing is 
sought; and 
‘‘(F) in the case of an application sub-
mitted by a State governmental entity, a de-
scription of the actions that the entity has 
taken, or will take, to ensure that charter 
schools within the State receive the funding the 
charter schools need to have adequate facilities. 
‘‘(e) CHARTER SCHOOL OBJECTIVES.—An eligible 
entity receiving a grant under this section shall use the 
funds deposited in the reserve account established under 
subsection (f) to assist one or more charter schools to ac-
cess private sector capital to accomplish one or more of 
the following objectives: 
‘‘(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, 
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or alteration of existing facilities, necessary to com-
mence or continue the operation of a charter school. 
‘‘(3) The predevelopment costs required to as-
sess sites for purposes of paragraph (1) or (2) and 
which are necessary to commence 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, 
and interests therein, the proceeds of which are 
used for an objective described in subsection 
(e). 
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‘‘(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. 
‘‘(3) REINVESTMENT OF EARNINGS.—Any earn-
ings on funds received under subsection (a) shall be 
deposited in the reserve account established under 
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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. 
‘‘(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 
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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 
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-
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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.— 
‘‘(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-
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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). 
‘‘(3) PROCEDURES.—The provisions of sections 
451, 452, and 458 of the General Education Provi-
sions Act (20 U.S.C. 1234, 1234a, and 1234g) 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 
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the Secretary to recover funds under part D of the 
General Education Provisions Act (20 U.S.C. 1234 
et seq.). 
‘‘(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 3102(b)(1) and 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-
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. 
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‘‘(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. 
‘‘(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. 
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‘‘(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-
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. 
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‘‘(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 
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 
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manner, and containing such information as the Sec-
retary may require. 
‘‘SEC. 3105. NATIONAL ACTIVITIES. 
‘‘(a) IN GENERAL.—From the amount reserved 
under section 3102(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 3103, and eligible entities and States re-
ceiving grants under section 3104; 
‘‘(B) disseminate best practices; and 
‘‘(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 3102(a)(1), subparagraphs (A) 
through (C) of section 3103(a)(1), and section 
3103(g). 
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‘‘(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 3103. 
‘‘(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 3103; 
‘‘(B) a State that did not receive a grant 
under section 3103; or 
‘‘(C) a State that received a grant under 
section 3103 and is in the 4th or 5th year of 
the grant period for such grant. 
‘‘(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. 3106. FEDERAL FORMULA ALLOCATION DURING 
FIRST YEAR AND FOR SUCCESSIVE ENROLL-
MENT EXPANSIONS. 
‘‘(a) IN GENERAL.—For purposes of the allocation 
to schools by the States or their agencies of funds under 
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part A of title I, and any other Federal funds which the 
Secretary allocates to States on a formula basis, the Sec-
retary and each State educational agency shall take such 
measures as are necessary to ensure that every charter 
school receives the Federal funding for which the charter 
school is eligible not later than 5 months after the charter 
school first opens, notwithstanding the fact that the iden-
tity and characteristics of the students enrolling in that 
charter school are not fully and completely determined 
until that charter school actually opens. The measures 
similarly shall ensure that every charter school expanding 
its enrollment in any subsequent year of operation receives 
the Federal funding for which the charter school is eligible 
not later than 5 months after such expansion. 
‘‘(b) ADJUSTMENT AND LATE OPENINGS.— 
‘‘(1) IN GENERAL.—The measures described in 
subsection (a) shall include provision for appropriate 
adjustments, through recovery of funds or reduction 
of payments for the succeeding year, in cases where 
payments made to a charter school on the basis of 
estimated or projected enrollment data exceed the 
amounts that the school is eligible to receive on the 
basis of actual or final enrollment data. 
‘‘(2) RULE.—For charter schools that first 
open after November 1 of any academic year, the 
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State, in accordance with guidance provided by the 
Secretary and applicable Federal statutes and regu-
lations, shall ensure that such charter schools that 
are eligible for the funds described in subsection (a) 
for such academic year have a full and fair oppor-
tunity to receive those funds during the charter 
schools’ first year of operation. 
‘‘SEC. 3107. SOLICITATION OF INPUT FROM CHARTER 
SCHOOL OPERATORS. 
‘‘To the extent practicable, the Secretary shall ensure 
that administrators, teachers, and other individuals di-
rectly involved in the operation of charter schools are con-
sulted in the development of any rules, regulations, or non-
regulatory guidance required to implement this subpart, 
as well as in the development of any rules, regulations, 
or nonregulatory guidance relevant to charter schools that 
are required to implement part A of title I, the Individuals 
with Disabilities Education Act, or any other program ad-
ministered by the Secretary that provides education funds 
to charter schools or regulates the activities of charter 
schools. 
‘‘SEC. 3108. RECORDS TRANSFER. 
‘‘State educational agencies and local educational 
agencies, as quickly as possible and to the extent prac-
ticable, shall ensure that a student’s records and, if appli-
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cable, a student’s individualized education program as de-
fined in section 602(14) of the Individuals with Disabil-
ities Education Act, are transferred to a charter school 
upon the transfer of the student to the charter school, and 
to another public school upon the transfer of the student 
from a charter school to another public school, in accord-
ance with applicable State law. 
‘‘SEC. 3109. PAPERWORK REDUCTION. 
‘‘To the extent practicable, the Secretary and each 
authorized public chartering agency shall ensure that im-
plementation of this subpart results in a minimum of pa-
perwork for any eligible applicant or charter school. 
‘‘SEC. 3110. DEFINITIONS. 
‘‘In this subpart: 
‘‘(1) AUTHORIZED PUBLIC CHARTERING AGEN-
CY.—The term ‘authorized public chartering agency’ 
means a State educational agency, local educational 
agency, or other public entity that has the authority 
pursuant to State law and approved by the Sec-
retary to authorize or approve a charter school. 
‘‘(2) CHARTER SUPPORT ORGANIZATION.—The 
term ‘charter support organization’ means a non-
profit, nongovernmental entity that provides, on a 
statewide or regional basis— 
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‘‘(A) assistance to developers during the 
planning, program design, and initial implemen-
tation of a charter school; and 
‘‘(B) technical assistance to operate char-
ter schools. 
‘‘(3) DEVELOPER.—The term ‘developer’ means 
an individual or group of individuals (including a 
public or private nonprofit organization), which may 
include teachers, administrators and other school 
staff, parents, or other members of the local commu-
nity in which a charter school project will be carried 
out. 
‘‘(4) ELIGIBLE APPLICANT.—The term ‘eligible 
applicant’ means a developer that has— 
‘‘(A) applied to an authorized public char-
tering authority to operate a charter school; 
and 
‘‘(B) provided adequate and timely notice 
to that authority. 
‘‘(5) EXPANSION OF A HIGH-QUALITY CHARTER 
SCHOOL.—The term ‘expansion of a high-quality 
charter school’ means to significantly increase the 
enrollment of, or add one or more grades to, a high- 
quality charter school. 
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‘‘(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 the 
charter school; and 
‘‘(D) has demonstrated success in increas-
ing student academic achievement for the 
groups 
of 
students 
described 
in 
section 
1111(b)(3)(B)(ii)(II), except that such dem-
onstration is not required in a case in which the 
number of students in a group is insufficient to 
yield statistically reliable information or the re-
sults would reveal personally identifiable infor-
mation about an individual student. 
‘‘(7) REPLICABLE, 
HIGH-QUALITY
CHARTER 
SCHOOL MODEL.—The term ‘replicable, high-quality 
charter school model’ means a high-quality charter 
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school that has the capability of opening another 
such charter school under an existing charter. 
‘‘Subpart 2—Magnet School Assistance 
‘‘SEC. 3121. PURPOSE. 
‘‘The purpose of this subpart is to assist in the deseg-
regation of schools served by local educational agencies by 
providing financial assistance to eligible local educational 
agencies for— 
‘‘(1) the elimination, reduction, or prevention of 
minority group isolation in elementary schools and 
secondary schools with substantial proportions of mi-
nority students, which shall include assisting in the 
efforts of the United States to achieve voluntary de-
segregation in public schools; 
‘‘(2) the development and implementation of 
magnet school programs that will assist local edu-
cational agencies in achieving systemic reforms and 
providing all students the opportunity to meet State 
academic standards; 
‘‘(3) the development and design of innovative 
educational methods and practices that promote di-
versity and increase choices in public elementary 
schools and public secondary schools and public edu-
cational programs; 
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‘‘(4) courses of instruction within magnet 
schools that will substantially strengthen the knowl-
edge of academic subjects and the attainment of tan-
gible and marketable career, technical, and profes-
sional skills of students attending such schools; 
‘‘(5) improving the ability of local educational 
agencies, including through professional develop-
ment, to continue operating magnet schools at a 
high performance level after Federal funding for the 
magnet schools is terminated; and 
‘‘(6) ensuring that students enrolled in the 
magnet school programs have equitable access to a 
quality education that will enable the students to 
succeed academically and continue with postsec-
ondary education or employment. 
‘‘SEC. 3122. DEFINITION. 
‘‘For the purpose of this subpart, the term ‘magnet 
school’ means a public elementary school, public secondary 
school, public elementary education center, or public sec-
ondary education center that offers a special curriculum 
capable of attracting substantial numbers of students of 
different racial backgrounds. 
‘‘SEC. 3123. PROGRAM AUTHORIZED. 
‘‘From the amount appropriated under section 
3(c)(1)(B), the Secretary, in accordance with this subpart, 
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is authorized to award grants to eligible local educational 
agencies, and consortia of such agencies where appro-
priate, to carry out the purpose of this subpart for magnet 
schools that are— 
‘‘(1) part of an approved desegregation plan; 
and 
‘‘(2) designed to bring students from different 
social, economic, ethnic, and racial backgrounds to-
gether. 
‘‘SEC. 3124. ELIGIBILITY. 
‘‘A local educational agency, or consortium of such 
agencies where appropriate, is eligible to receive a grant 
under this subpart to carry out the purpose of this subpart 
if such agency or consortium— 
‘‘(1) is implementing a plan undertaken pursu-
ant to a final order issued by a court of the United 
States, or a court of any State, or any other State 
agency or official of competent jurisdiction, that re-
quires the desegregation of minority-group-seg-
regated children or faculty in the elementary schools 
and secondary schools of such agency; or 
‘‘(2) without having been required to do so, has 
adopted and is implementing, or will, if a grant is 
awarded to such local educational agency, or consor-
tium of such agencies, under this subpart, adopt and 
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implement a plan that has been approved by the 
Secretary as adequate under title VI of the Civil 
Rights Act of 1964 for the desegregation of minor-
ity-group-segregated children or faculty in such 
schools. 
‘‘SEC. 3125. APPLICATIONS AND REQUIREMENTS. 
‘‘(a) APPLICATIONS.—An eligible local educational 
agency, or consortium of such agencies, desiring to receive 
a grant under this subpart shall submit an application to 
the Secretary at such time and in such manner as the 
Secretary may reasonably require. 
‘‘(b) INFORMATION AND ASSURANCES.—Each appli-
cation submitted under subsection (a) shall include— 
‘‘(1) a description of— 
‘‘(A) how a grant awarded under this sub-
part will be used to promote desegregation, in-
cluding how the proposed magnet school pro-
grams will increase interaction among students 
of different social, economic, ethnic, and racial 
backgrounds; 
‘‘(B) the manner and extent to which the 
magnet school program will increase student 
academic achievement in the instructional area 
or areas offered by the school; 
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‘‘(C) how the applicant will continue the 
magnet school program after assistance under 
this subpart is no longer available, and, if appli-
cable, an explanation of why magnet schools es-
tablished or supported by the applicant with 
grant funds under this subpart cannot be con-
tinued without the use of grant funds under 
this subpart; 
‘‘(D) how grant funds under this subpart 
will be used— 
‘‘(i) to improve student academic 
achievement for all students attending the 
magnet school programs; and 
‘‘(ii) to implement services and activi-
ties that are consistent with other pro-
grams under this Act, and other Acts, as 
appropriate; and 
‘‘(E) the criteria to be used in selecting 
students to attend the proposed magnet school 
program; and 
‘‘(2) assurances that the applicant will— 
‘‘(A) use grant funds under this subpart 
for the purposes specified in section 3121; 
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‘‘(B) employ effective teachers in the 
courses of instruction assisted under this sub-
part; 
‘‘(C) not engage in discrimination based on 
race, religion, color, national origin, sex, or dis-
ability in— 
‘‘(i) the hiring, promotion, or assign-
ment of employees of the applicant or 
other personnel for whom the applicant has 
any administrative responsibility; 
‘‘(ii) the assignment of students to 
schools, or to courses of instruction within 
the schools, of such applicant, except to 
carry out the approved plan; and 
‘‘(iii) designing or operating extra-
curricular activities for students; 
‘‘(D) carry out a quality education pro-
gram that will encourage greater parental deci-
sionmaking and involvement; and 
‘‘(E) give students residing in the local at-
tendance area of the proposed magnet school 
program equitable consideration for placement 
in the program, consistent with desegregation 
guidelines and the capacity of the applicant to 
accommodate the students. 
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‘‘(c) SPECIAL RULE.—No grant shall be awarded 
under this subpart unless the Assistant Secretary of Edu-
cation for Civil Rights determines that the assurances de-
scribed in subsection (b)(2)(C) will be met. 
‘‘SEC. 3126. PRIORITY. 
‘‘In awarding grants under this subpart, the Sec-
retary shall give priority to applicants that— 
‘‘(1) demonstrate the greatest need for assist-
ance, based on the expense or difficulty of effectively 
carrying out approved desegregation plans and the 
magnet school program for which the grant is 
sought; 
‘‘(2) propose to carry out new magnet school 
programs, or significantly revise existing magnet 
school programs; 
‘‘(3) propose to select students to attend mag-
net school programs by methods such as lottery, 
rather than through academic examination; and 
‘‘(4) propose to serve the entire student popu-
lation of a school. 
‘‘SEC. 3127. USE OF FUNDS. 
‘‘(a) IN GENERAL.—Grant funds made available 
under this subpart may be used by an eligible local edu-
cational agency, or consortium of such agencies— 
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‘‘(1) for planning and promotional activities di-
rectly related to the development, expansion, con-
tinuation, or enhancement of academic programs 
and services offered at magnet schools; 
‘‘(2) for the acquisition of books, materials, and 
equipment, including computers and the mainte-
nance and operation of materials, equipment, and 
computers, necessary to conduct programs in mag-
net schools; 
‘‘(3) for the compensation, or subsidization of 
the compensation, of elementary school and sec-
ondary school teachers, and instructional staff where 
applicable, who are necessary to conduct programs 
in magnet schools; 
‘‘(4) with respect to a magnet school program 
offered to less than the entire student population of 
a school, for instructional activities that— 
‘‘(A) are designed to make available the 
special curriculum that is offered by the magnet 
school program to students who are enrolled in 
the school but who are not enrolled in the mag-
net school program; and 
‘‘(B) further the purpose of this subpart; 
‘‘(5) for activities, which may include profes-
sional development, that will build the recipient’s ca-
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pacity to operate magnet school programs once the 
grant period has ended; 
‘‘(6) to enable the local educational agency, or 
consortium of such agencies, to have more flexibility 
in the administration of a magnet school program in 
order to serve students attending a school who are 
not enrolled in a magnet school program; and 
‘‘(7) to enable the local educational agency, or 
consortium of such agencies, to have flexibility in de-
signing magnet schools for students in all grades. 
‘‘(b) SPECIAL RULE.—Grant funds under this sub-
part may be used for activities described in paragraphs 
(2) and (3) of subsection (a) only if the activities are di-
rectly related to improving student academic achievement 
based on the State’s academic standards or directly re-
lated to improving student reading skills or knowledge of 
mathematics, science, history, geography, English, foreign 
languages, art, or music, or to improving career, technical, 
and professional skills. 
‘‘SEC. 3128. LIMITATIONS. 
‘‘(a) DURATION OF AWARDS.—A grant under this 
subpart shall be awarded for a period that shall not exceed 
3 fiscal years. 
‘‘(b) LIMITATION ON PLANNING FUNDS.—A local 
educational agency, or consortium of such agencies, may 
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expend for planning (professional development shall not 
be considered to be planning for purposes of this sub-
section) not more than 50 percent of the grant funds re-
ceived under this subpart for the first year of the program 
and not more than 15 percent of such funds for each of 
the second and third such years. 
‘‘(c) AMOUNT.—No local educational agency, or con-
sortium of such agencies, awarded a grant under this sub-
part shall receive more than $4,000,000 under this sub-
part for any 1 fiscal year. 
‘‘(d) TIMING.—To the extent practicable, the Sec-
retary shall award grants for any fiscal year under this 
subpart not later than July 1 of the applicable fiscal year. 
‘‘SEC. 3129. EVALUATIONS. 
‘‘(a) RESERVATION.—The Secretary may reserve not 
more than 2 percent of the funds appropriated under sec-
tion 3(c)(1)(B) for any fiscal year to carry out evaluations, 
provide technical assistance, and carry out dissemination 
projects with respect to magnet school programs assisted 
under this subpart. 
‘‘(b) CONTENTS.—Each evaluation described in sub-
section (a), at a minimum, shall address— 
‘‘(1) how and the extent to which magnet school 
programs lead to educational quality and academic 
improvement; 
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‘‘(2) the extent to which magnet school pro-
grams enhance student access to a quality education; 
‘‘(3) the extent to which magnet school pro-
grams lead to the elimination, reduction, or preven-
tion of minority group isolation in elementary 
schools and secondary schools with substantial pro-
portions of minority students; and 
‘‘(4) the extent to which magnet school pro-
grams differ from other school programs in terms of 
the organizational characteristics and resource allo-
cations of such magnet school programs. 
‘‘(c) DISSEMINATION.—The Secretary shall collect 
and disseminate to the general public information on suc-
cessful magnet school programs. 
‘‘SEC. 3130. RESERVATION. 
‘‘In any fiscal year for which the amount appro-
priated under section 3(c)(1)(B) exceeds $75,000,000, the 
Secretary shall give priority in using such amounts in ex-
cess of $75,000,000 to awarding grants to local edu-
cational agencies or consortia of such agencies that did 
not receive a grant under this subpart in the preceding 
fiscal year. 
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‘‘Subpart 3—Family Engagement in Education 
Programs 
‘‘SEC. 3141. PURPOSES. 
‘‘The purposes of this subpart are the following: 
‘‘(1) To provide financial support to organiza-
tions to provide technical assistance and training to 
State and local educational agencies in the imple-
mentation and enhancement of systemic and effec-
tive family engagement policies, programs, and ac-
tivities that lead to improvements in student devel-
opment and academic achievement. 
‘‘(2) To assist State educational agencies, local 
educational agencies, community-based organiza-
tions, schools, and educators in strengthening part-
nerships among parents, teachers, school leaders, ad-
ministrators, and other school personnel in meeting 
the educational needs of children and fostering 
greater parental engagement. 
‘‘(3) To support State educational agencies, 
local educational agencies, schools, educators, and 
parents in developing and strengthening the relation-
ship between parents and their children’s school in 
order to further the developmental progress of chil-
dren. 
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‘‘(4) To coordinate activities funded under this 
subpart with parent involvement initiatives funded 
under section 1118 and other provisions of this Act. 
‘‘(5) To assist the Secretary, State educational 
agencies, and local educational agencies in the co-
ordination and integration of Federal, State, and 
local services and programs to engage families in 
education. 
‘‘SEC. 3142. GRANTS AUTHORIZED. 
‘‘(a) STATEWIDE FAMILY ENGAGEMENT CENTERS.— 
From the amount appropriated under section 3(c)(1)(C), 
the Secretary is authorized to award grants for each fiscal 
year to statewide organizations (or consortia of such orga-
nizations), to establish Statewide Family Engagement 
Centers that provide comprehensive training and technical 
assistance to State educational agencies, local educational 
agencies, schools identified by State educational agencies 
and local educational agencies, organizations that support 
family-school partnerships, and other organizations that 
carry out, or carry out directly, parent education and fam-
ily engagement in education programs. 
‘‘(b) MINIMUM AWARD.—In awarding grants under 
this section, the Secretary shall, to the extent practicable, 
ensure that a grant is awarded for a Statewide Family 
Engagement Center in an amount not less than $500,000. 
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‘‘SEC. 3143. APPLICATIONS. 
‘‘(a) SUBMISSIONS.—Each statewide organization, or 
a consortium of such organizations, that desires a grant 
under this subpart shall submit an application to the Sec-
retary at such time, in such manner, and including the 
information described in subsection (b). 
‘‘(b) CONTENTS.—Each application submitted under 
subsection (a) shall include, at a minimum, the following: 
‘‘(1) A description of the applicant’s approach 
to family engagement in education. 
‘‘(2) A description of the support that the 
Statewide Family Engagement Center that will be 
operated by the applicant will have from the State 
educational agency and any partner organization 
outlining the commitment to work with the center. 
‘‘(3) A description of the applicant’s plan for 
building a statewide infrastructure for family en-
gagement in education, that includes— 
‘‘(A) management and governance; 
‘‘(B) statewide leadership; or 
‘‘(C) systemic services for family engage-
ment in education. 
‘‘(4) A description of the applicant’s dem-
onstrated experience in providing training, informa-
tion, and support to State educational agencies, local 
educational agencies, schools, educators, parents, 
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and organizations on family engagement in edu-
cation policies and practices that are effective for 
parents (including low-income parents) and families, 
English learners, minorities, parents of students 
with disabilities, parents of homeless students, foster 
parents and students, and parents of migratory stu-
dents, including evaluation results, reporting, or 
other data exhibiting such demonstrated experience. 
‘‘(5) A description of the steps the applicant 
will take to target services to low-income students 
and parents. 
‘‘(6) An assurance that the applicant will— 
‘‘(A) establish a special advisory com-
mittee, the membership of which includes— 
‘‘(i) parents, who shall constitute a 
majority of the members of the special ad-
visory committee; 
‘‘(ii) representatives of education pro-
fessionals with expertise in improving serv-
ices for disadvantaged children; 
‘‘(iii) representatives of local elemen-
tary schools and secondary schools, includ-
ing students; 
‘‘(iv) representatives of the business 
community; and 
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‘‘(v) representatives of State edu-
cational agencies and local educational 
agencies; 
‘‘(B) use not less than 65 percent of the 
funds received under this subpart in each fiscal 
year to serve local educational agencies, schools, 
and community-based organizations that serve 
high concentrations of disadvantaged students, 
including English learners, minorities, parents 
of students with disabilities, parents of home-
less students, foster parents and students, and 
parents of migratory students; 
‘‘(C) operate a Statewide Family Engage-
ment Center of sufficient size, scope, and qual-
ity to ensure that the Center is adequate to 
serve the State educational agency, local edu-
cational agencies, and community-based organi-
zations; 
‘‘(D) ensure that the Center will retain 
staff with the requisite training and experience 
to serve parents in the State; 
‘‘(E) serve urban, suburban, and rural 
local educational agencies and schools; 
‘‘(F) work with— 
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‘‘(i) other Statewide Family Engage-
ment Centers assisted under this subpart; 
and 
‘‘(ii) parent training and information 
centers and community parent resource 
centers assisted under sections 671 and 
672 of the Individuals with Disabilities 
Education Act; 
‘‘(G) use not less than 30 percent of the 
funds received under this subpart for each fiscal 
year to establish or expand technical assistance 
for evidence-based parent education programs; 
‘‘(H) provide assistance to State edu-
cational agencies and local educational agencies 
and community-based organizations that sup-
port family members in supporting student aca-
demic achievement; 
‘‘(I) work with State educational agencies, 
local educational agencies, schools, educators, 
and parents to determine parental needs and 
the best means for delivery of services to ad-
dress such needs; 
‘‘(J) conduct sufficient outreach to assist 
parents, including parents who the applicant 
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may have a difficult time engaging with a 
school or local educational agency; and 
‘‘(K) conduct outreach to low-income stu-
dents and parents, including low-income stu-
dents and parents who are not proficient in 
English. 
‘‘SEC. 3144. USES OF FUNDS. 
‘‘(a) IN GENERAL.—Grantees shall use grant funds 
received under this subpart, based on the needs deter-
mined under section 3143(b)(5)(I), to provide training 
and technical assistance to State educational agencies, 
local educational agencies, and organizations that support 
family-school partnerships, and activities, services, and 
training for local educational agencies, school leaders, edu-
cators, and parents— 
‘‘(1) to assist parents in participating effectively 
in their children’s education and to help their chil-
dren meet State standards, such as assisting par-
ents— 
‘‘(A) to engage in activities that will im-
prove student academic achievement, including 
understanding how they can support learning in 
the classroom with activities at home and in 
afterschool and extracurricular programs; 
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‘‘(B) to communicate effectively with their 
children, teachers, school leaders, counselors, 
administrators, and other school personnel; 
‘‘(C) to become active participants in the 
development, implementation, and review of 
school-parent compacts, family engagement in 
education policies, and school planning and im-
provement; 
‘‘(D) to participate in the design and pro-
vision of assistance to students who are not 
making academic progress; 
‘‘(E) to participate in State and local deci-
sionmaking; 
‘‘(F) to train other parents; and 
‘‘(G) to help the parents learn and use 
technology applied in their children’s education; 
‘‘(2) to develop and implement, in partnership 
with the State educational agency, statewide family 
engagement in education policy and systemic initia-
tives that will provide for a continuum of services to 
remove barriers for family engagement in education 
and support school reform efforts; and 
‘‘(3) to develop and implement parental involve-
ment policies under this Act. 
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‘‘(b) MATCHING FUNDS FOR GRANT RENEWAL.— 
For each fiscal year after the first fiscal year for which 
an organization or consortium receives assistance under 
this section, the organization or consortium shall dem-
onstrate in the application that a portion of the services 
provided by the organization or consortium is supported 
through non-Federal contributions, which may be in cash 
or in-kind. 
‘‘(c) TECHNICAL ASSISTANCE.—The Secretary shall 
reserve not more than 2 percent of the funds appropriated 
under section 3(c)(1)(C) to carry out this subpart to pro-
vide technical assistance, by competitive grant or contract, 
for the establishment, development, and coordination of 
Statewide Family Engagement Centers. 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prohibit a Statewide Family En-
gagement Center from— 
‘‘(1) having its employees or agents meet with 
a parent at a site that is not on school grounds; or 
‘‘(2) working with another agency that serves 
children. 
‘‘(e) PARENTAL
RIGHTS.—Notwithstanding any 
other provision of this section— 
‘‘(1) no person (including a parent who edu-
cates a child at home, a public school parent, or a 
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private school parent) shall be required to partici-
pate in any program of parent education or develop-
mental screening under this section; and 
‘‘(2) no program or center assisted under this 
section shall take any action that infringes in any 
manner on the right of a parent to direct the edu-
cation of their children. 
‘‘SEC. 3145. FAMILY ENGAGEMENT IN INDIAN SCHOOLS. 
‘‘The Secretary of the Interior, in consultation with 
the Secretary of Education, shall establish, or enter into 
contracts and cooperative agreements with local Indian 
nonprofit parent organizations to establish and operate 
Family Engagement Centers. 
‘‘PART B—LOCAL ACADEMIC FLEXIBLE GRANT 
‘‘SEC. 3201. PURPOSE. 
‘‘The purpose of this part is to— 
‘‘(1) provide local educational agencies with the 
opportunity to access funds to support the initiatives 
important to their schools and students to improve 
academic achievement, including protecting student 
safety; and 
‘‘(2) provide nonprofit and for-profit entities 
the opportunity to work with students to improve 
academic achievement, including student safety. 
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‘‘SEC. 3202. ALLOTMENTS TO STATES. 
‘‘(a) RESERVATIONS.—From the funds appropriated 
under section 3(c)(2) for any fiscal year, the Secretary 
shall reserve— 
‘‘(1) not more than one-half of 1 percent for 
national activities to provide technical assistance to 
eligible entities in carrying out programs under this 
part; and 
‘‘(2) not more than one-half of 1 percent for 
payments to the outlying areas and the Bureau of 
Indian Education, to be allotted in accordance with 
their respective needs for assistance under this part, 
as determined by the Secretary, to enable the out-
lying areas and the Bureau to carry out the purpose 
of this part. 
‘‘(b) STATE ALLOTMENTS.— 
‘‘(1) DETERMINATION.—From the funds appro-
priated under section 3(c)(2) for any fiscal year and 
remaining after the Secretary makes reservations 
under subsection (a), the Secretary shall allot to 
each State for the fiscal year an amount that bears 
the same relationship to the remainder as the 
amount the State received under chapter B of sub-
part 1 of part A of title I for the preceding fiscal 
year bears to the amount all States received under 
that chapter for the preceding fiscal year, except 
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that no State shall receive less than an amount 
equal to one-half of 1 percent of the total amount 
made available to all States under this subsection. 
‘‘(2) REALLOTMENT OF UNUSED FUNDS.—If a 
State does not receive an allotment under this part 
for a fiscal year, the Secretary shall reallot the 
amount of the State’s allotment to the remaining 
States in accordance with this section. 
‘‘(c) STATE USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Each State that receives an 
allotment under this part shall reserve not less than 
75 percent of the amount allotted to the State under 
subsection (b) for each fiscal year for awards to eli-
gible entities under section 3204. 
‘‘(2) AWARDS
TO
NONGOVERNMENTAL
ENTI-
TIES
TO
IMPROVE
STUDENT
ACADEMIC
ACHIEVE-
MENT.—Each State that receives an allotment under 
subsection (b) for each fiscal year shall reserve not 
less than 10 percent of the amount allotted to the 
State for awards to nongovernmental entities under 
section 3205. 
‘‘(3) STATE ACTIVITIES AND STATE ADMINIS-
TRATION.—A State educational agency may reserve 
not more than 15 percent of the amount allotted to 
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the State under subsection (b) for each fiscal year 
for the following: 
‘‘(A) Enabling the State educational agen-
cy— 
‘‘(i) to pay the costs of developing the 
State assessments and standards required 
under section 1111(b), which may include 
the costs of working, at the sole discretion 
of the State, in voluntary partnerships 
with other States to develop such assess-
ments and standards; or 
‘‘(ii) if the State has developed the as-
sessments and standards required under 
section 1111(b), to administer those as-
sessments or carry out other activities re-
lated to ensuring that the State’s schools 
and local educational agencies are helping 
students meet the State’s academic stand-
ards under such section. 
‘‘(B) The administrative costs of carrying 
out its responsibilities under this part, except 
that not more than 5 percent of the reserved 
amount may be used for this purpose. 
‘‘(C) Monitoring and evaluation of pro-
grams and activities assisted under this part. 
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‘‘(D) Providing training and technical as-
sistance under this part. 
‘‘(E) Statewide academic focused pro-
grams. 
‘‘(F) Sharing evidence-based and other ef-
fective strategies with eligible entities. 
‘‘SEC. 3203. STATE APPLICATION. 
‘‘(a) IN GENERAL.—In order to receive an allotment 
under section 3202 for any fiscal year, a State shall sub-
mit to the Secretary, at such time as the Secretary may 
require, an application that— 
‘‘(1) designates the State educational agency as 
the agency responsible for the administration and 
supervision of programs assisted under this part; 
‘‘(2) describes how the State educational agency 
will use funds reserved for State-level activities, in-
cluding how, if any, of the funds will be used to sup-
port student safety; 
‘‘(3) describes the procedures and criteria the 
State educational agency will use for reviewing appli-
cations and awarding funds to eligible entities on a 
competitive basis, which shall include reviewing how 
the proposed project will help increase student aca-
demic achievement; 
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‘‘(4) describes how the State educational agency 
will ensure that awards made under this part are— 
‘‘(A) of sufficient size and scope to support 
high-quality, effective programs that are con-
sistent with the purpose of this part; and 
‘‘(B) in amounts that are consistent with 
section 3204(f); 
‘‘(5) describes the steps the State educational 
agency will take to ensure that programs implement 
effective strategies, including providing ongoing 
technical assistance and training, and dissemination 
of evidence-based and other effective strategies; 
‘‘(6) describes how the State educational agency 
will consider students across all grades when making 
these awards; 
‘‘(7) an assurance that, other than providing 
technical and advisory assistance and monitoring 
compliance with this part, the State educational 
agency has not exercised and will not exercise any 
influence in the decision-making process of eligible 
entities as to the expenditure of funds received by 
the eligible entities under this part; 
‘‘(8) describes how programs under this part 
will be coordinated with programs under this Act, 
and other programs as appropriate; 
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‘‘(9) contains an assurance that the State edu-
cational agency— 
‘‘(A) will make awards for programs for a 
period of not more than 5 years; and 
‘‘(B) will require each eligible entity seek-
ing such an award to submit a plan describing 
how the project to be funded through the award 
will continue after funding under this part 
ends, if applicable; 
‘‘(10) contains an assurance that funds appro-
priated to carry out this part will be used to supple-
ment, and not supplant, State and local public funds 
expended to provide programs and activities author-
ized under this part and other similar programs; and 
‘‘(11) an assurance that the State will support 
projects from each of the categories listed in section 
3204(b)(1)(D) in awarding subgrants to local edu-
cational agencies. 
‘‘(b) DEEMED APPROVAL.—An application submitted 
by a State educational agency pursuant to subsection (a) 
shall be deemed to be approved by the Secretary unless 
the Secretary makes a written determination, prior to the 
expiration of the 120-day period beginning on the date on 
which the Secretary received the application, that the ap-
plication is not in compliance with this part. 
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‘‘(c) DISAPPROVAL.—The Secretary shall not finally 
disapprove the application, except after giving the State 
educational agency notice and an opportunity for a hear-
ing. 
‘‘(d) NOTIFICATION.—If the Secretary finds that the 
application is not in compliance, in whole or in part, with 
this part, the Secretary shall— 
‘‘(1) give the State educational agency notice 
and an opportunity for a hearing; and 
‘‘(2) notify the State educational agency of the 
finding of noncompliance, and, in such notification, 
shall— 
‘‘(A) cite the specific provisions in the ap-
plication that are not in compliance; and 
‘‘(B) request additional information, only 
as to the noncompliant provisions, needed to 
make the application compliant. 
‘‘(e) RESPONSE.—If the State educational agency re-
sponds to the Secretary’s notification described in sub-
section (d)(2) during the 45-day period beginning on the 
date on which the agency received the notification, and 
resubmits the application with the requested information 
described in subsection (d)(2)(B), the Secretary shall ap-
prove or disapprove such application prior to the later of— 
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‘‘(1) the expiration of the 45-day period begin-
ning on the date on which the application is resub-
mitted; or 
‘‘(2) the expiration of the 120-day period de-
scribed in subsection (b). 
‘‘(f) FAILURE TO RESPOND.—If the State edu-
cational agency does not respond to the Secretary’s notifi-
cation described in subsection (d)(2) during the 45-day pe-
riod beginning on the date on which the agency received 
the notification, such application shall be deemed to be 
disapproved. 
‘‘(g) RULE OF CONSTRUCTION.—An application sub-
mitted by a State educational agency pursuant to sub-
section (a) shall not be approved or disapproved based 
upon the activities for which the agency may make funds 
available to eligible entities under section 3204 if the agen-
cy’s use of funds is consistent with section 3204(b). 
‘‘SEC. 3204. LOCAL COMPETITIVE GRANT PROGRAM. 
‘‘(a) IN GENERAL.—A State that receives funds 
under this part for a fiscal year shall provide the amount 
made available under section 3202(c)(1) to eligible entities 
in accordance with this section. 
‘‘(b) USE OF FUNDS.— 
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‘‘(1) IN GENERAL.—An eligible entity that re-
ceives an award under this part shall use the funds 
for activities that— 
‘‘(A) are evidence-based; 
‘‘(B) 
will 
improve 
student 
academic 
achievement; 
‘‘(C) are allowable under State law; and 
‘‘(D) focus on one or more projects from 
the following two categories: 
‘‘(i) Supplemental student support ac-
tivities such as before, after, or summer 
school activities, tutoring, and expanded 
learning time, but not including athletics 
or in-school learning activities. 
‘‘(ii) Activities designed to support 
students, such as academic subject specific 
programs (including computer science and 
other science, technology, engineering, and 
mathematics programs), including civic 
education, adjunct teacher programs, ex-
tended learning time programs, dual en-
rollment programs, and parent engage-
ment, but not including activities to— 
‘‘(I) support smaller class sizes 
or construction; or 
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‘‘(II) provide compensation or 
benefits to teachers, school leaders, 
other school officials, or local edu-
cational agency staff. 
‘‘(2) PARTICIPATION OF CHILDREN ENROLLED 
IN PRIVATE SCHOOLS.—An eligible entity that re-
ceives an award under this part shall ensure compli-
ance with section 5501 (relating to participation of 
children enrolled in private schools). 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—To be eligible to receive an 
award under this part, an eligible entity shall submit 
an application to the State educational agency at 
such time, in such manner, and including such infor-
mation as the State educational agency may reason-
ably require, including the contents required by 
paragraph (2). 
‘‘(2) CONTENTS.—Each application submitted 
under paragraph (1) shall include— 
‘‘(A) a description of the activities to be 
funded and how they are consistent with sub-
section (b), including any activities that will in-
crease student safety; 
‘‘(B) an assurance that funds under this 
part will be used to increase the level of State, 
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local, and other non-Federal funds that would, 
in the absence of funds under this part, be 
made available for programs and activities au-
thorized under this part, and in no case sup-
plant State, local, or non-Federal funds; 
‘‘(C) an assurance that the community will 
be given notice of an intent to submit an appli-
cation with an opportunity for comment, and 
that the application will be available for public 
review after submission of the application; and 
‘‘(D) an assurance that students who ben-
efit from any activity funded under this part 
shall continue to maintain enrollment in a pub-
lic elementary or secondary school. 
‘‘(d) REVIEW.—In reviewing local applications under 
this section, a State educational agency shall use a peer 
review process or other methods of assuring the quality 
of such applications but the review shall be limited to the 
likelihood that the project will increase student academic 
achievement. 
‘‘(e) GEOGRAPHIC DIVERSITY.—A State educational 
agency shall distribute funds under this part equitably 
among geographic areas within the State, including rural, 
suburban, and urban communities. 
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‘‘(f) AWARD.—A grant shall be awarded to all eligible 
entities that submit an application that meets the require-
ments of this section in an amount that is not less than 
$10,000, but there shall be only one award granted to any 
one local educational agency, but such award may be for 
multiple projects or programs with the local educational 
agency. 
‘‘(g) DURATION
OF AWARDS.—Grants under this 
part may be awarded for a period of not more than 5 
years. 
‘‘(h) ELIGIBLE ENTITY DEFINED.—In this section, 
the term ‘eligible entity’ means— 
‘‘(1) a local educational agency in partnership 
with a community-based organization, business enti-
ty, or nongovernmental entity; 
‘‘(2) a consortium of local educational agencies 
working in partnership with a community-based or-
ganization, business entity, or nongovernmental enti-
ty; 
‘‘(3) a community-based organization in part-
nership with a local educational agency and, if appli-
cable, a business entity or nongovernmental entity; 
or 
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‘‘(4) a business entity in partnership with a 
local educational agency and, if applicable, a commu-
nity-based organization or nongovernmental entity. 
‘‘SEC. 3205. AWARDS TO NONGOVERNMENTAL ENTITIES TO 
IMPROVE ACADEMIC ACHIEVEMENT. 
‘‘(a) IN GENERAL.—From the amount reserved 
under section 3202(c)(2), a State educational agency shall 
award grants to nongovernmental entities, including pub-
lic or private organizations, community-based or faith- 
based organizations, and business entities for a program 
or project to increase the academic achievement of public 
school students attending public elementary or secondary 
schools (or both) in compliance with the requirements in 
this section. Subject to the availability of funds, the State 
educational agency shall award a grant to each eligible ap-
plicant that meets the requirements in a sufficient size and 
scope to support the program. 
‘‘(b) APPLICATION.—The State educational agency 
shall require an application that includes the following in-
formation: 
‘‘(1) A description of the program or project 
the applicant will use the funds to support. 
‘‘(2) A description of how the applicant is using 
or will use other State, local, or private funding to 
support the program or project. 
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‘‘(3) A description of how the program or 
project will help increase student academic achieve-
ment, including the evidence to support this claim. 
‘‘(4) A description of the student population the 
program or project is targeting to impact, and if the 
program will prioritize students in high-need local 
educational agencies. 
‘‘(5) A description of how the applicant will 
conduct sufficient outreach to ensure students can 
participate in the program or project. 
‘‘(6) A description of any partnerships the ap-
plicant has entered into with local educational agen-
cies or other entities the applicant will work with, if 
applicable. 
‘‘(7) A description of how the applicant will 
work to share evidence-based and other effective 
strategies from the program or project with local 
educational agencies and other entities working with 
students to increase academic achievement. 
‘‘(8) An assurance that students who benefit 
from any program or project funded under this sec-
tion shall continue to maintain enrollment in a pub-
lic elementary or secondary school. 
‘‘(c) MATCHING CONTRIBUTION.—An eligible appli-
cant receiving a grant under this section shall provide, ei-
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ther directly or through private contributions, non-Federal 
matching funds equal to not less than 50 percent of the 
amount of the grant. 
‘‘(d) REVIEW.—The State educational agency shall 
review the application to ensure that— 
‘‘(1) the applicant is an eligible applicant; 
‘‘(2) the application clearly describes the re-
quired elements in subsection (b); 
‘‘(3) the entity meets the matching requirement 
described in subsection (c); and 
‘‘(4) the program is allowable and complies with 
Federal, State, and local laws. 
‘‘(e) DISTRIBUTION OF FUNDS.—If the application 
requests exceed the funds available, the State educational 
agency shall prioritize projects that support students in 
high-need local educational agencies and ensure geo-
graphic diversity, including serving rural, suburban, and 
urban areas. 
‘‘(f) ADMINISTRATIVE COSTS.—Not more than 1 per-
cent of a grant awarded under this section may be used 
for administrative costs. 
‘‘SEC. 3206. REPORT. 
‘‘Each recipient of a grant under section 3204 or 
3205 shall report to the State educational agency on— 
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‘‘(1) the success of the program in reaching the 
goals of the program; 
‘‘(2) a description of the students served by the 
program and how the students’ academic achieve-
ment improved; and 
‘‘(3) the results of any evaluation conducted on 
the success of the program.’’. 
TITLE IV—IMPACT AID 
SEC. 401. PURPOSE. 
Section 8001 (20 U.S.C. 7701) is amended by strik-
ing ‘‘challenging State standards’’ and inserting ‘‘State 
academic standards’’. 
SEC. 402. PAYMENTS RELATING TO FEDERAL ACQUISITION 
OF REAL PROPERTY. 
Section 8002 (20 U.S.C. 7702) is amended— 
(1) in subsection (a)(1)(C), by amending the 
matter preceding clause (i) to read as follows: 
‘‘(C) had an assessed value according to 
original records (including facsimiles or other 
reproductions of those records) documenting 
the assessed value of such property (determined 
as of the time or times when so acquired) pre-
pared by the local officials referred to in sub-
section (b)(3) or, when such original records 
are not available due to unintentional destruc-
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tion (such as natural disaster, fire, flooding, 
pest infestation, or deterioration due to age), 
other records, including Federal agency records, 
local historical records, or other records that 
the Secretary determines to be appropriate and 
reliable, aggregating 10 percent or more of the 
assessed value of—’’. 
(2) in subsection (b)(1)(B), by striking ‘‘section 
8014(a)’’ and inserting ‘‘section 3(d)(1)’’; and 
(3) by amending subsection (f) to read as fol-
lows: 
‘‘(f) SPECIAL RULE.—Beginning with fiscal year 
2014, a local educational agency shall be deemed to meet 
the requirements of subsection (a)(1)(C) if records to de-
termine eligibility under such subsection were destroyed 
prior to fiscal year 2000 and the agency received funds 
under subsection (b) in the previous year.’’; 
(4) by amending subsection (g) to read as fol-
lows: 
‘‘(g) FORMER DISTRICTS.— 
‘‘(1) CONSOLIDATIONS.—For fiscal year 2006 
and each succeeding fiscal year, if a local edu-
cational agency described in paragraph (2) is formed 
at any time after 1938 by the consolidation of two 
or more former school districts, the local educational 
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agency may elect to have the Secretary determine its 
eligibility and any amount for which the local edu-
cational agency is eligible under this section for such 
fiscal year on the basis of one or more of those 
former districts, as designated by the local edu-
cational agency. 
‘‘(2) ELIGIBLE
LOCAL
EDUCATIONAL
AGEN-
CIES.—A local educational agency described in this 
paragraph is— 
‘‘(A) any local educational agency that, for 
fiscal year 1994 or any preceding fiscal year, 
applied for, and was determined to be eligible 
under section 2(c) of the Act of September 30, 
1950 (Public Law 874, 81st Congress) as that 
section was in effect for that fiscal year; or 
‘‘(B) a local educational agency formed by 
the consolidation of 2 or more school districts, 
at least one of which was eligible for assistance 
under this section for the fiscal year preceding 
the year of the consolidation, if— 
‘‘(i) for fiscal years 2006 through 
2013, the local educational agency notifies 
the Secretary not later than 30 days after 
the date of enactment of the Student Suc-
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cess Act of the designation described in 
paragraph (1); and 
‘‘(ii) for fiscal year 2014, and each 
subsequent fiscal year, the local edu-
cational agency includes the designation in 
its application under section 8005 or any 
timely amendment to such application. 
‘‘(3) 
AVAILABILITY
OF
FUNDS.—Notwith-
standing any other provision of law limiting the pe-
riod during which the Secretary may obligate funds 
appropriated for any fiscal year after fiscal year 
2005, the Secretary may obligate funds remaining 
after final payments have been made for any of such 
fiscal years to carry out this subsection.’’; 
(5) in subsection (h)— 
(A) in paragraph (2)— 
(i) in subparagraph (C)(ii), by strik-
ing ‘‘section 8014(a)’’ and inserting ‘‘sec-
tion 3(d)(1)’’; and 
(ii) in subparagraph (D), by striking 
‘‘section 8014(a)’’ and inserting ‘‘section 
3(d)(1)’’; and 
(B) in paragraph (4), by striking ‘‘Impact 
Aid Improvement Act of 2012’’ and inserting 
‘‘Student Success Act’’; 
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(6) by repealing subsections (k) and (m); 
(7) by redesignating subsection (l) as subsection 
(j); 
(8) by amending subsection (j) (as so redesig-
nated) by striking ‘‘(h)(4)(B)’’ and inserting 
‘‘(h)(2)’’; and 
(9) by redesignating subsection (n) as sub-
section (k). 
SEC. 403. PAYMENTS FOR ELIGIBLE FEDERALLY CON-
NECTED CHILDREN. 
(a) COMPUTATION OF PAYMENT.—Section 8003(a) 
(20 U.S.C. 7703(a)) is amended— 
(1) in the matter preceding subparagraph (A) 
of paragraph (1), by inserting after ‘‘schools of such 
agency’’ the following: ‘‘(including those children en-
rolled in such agency as a result of the open enroll-
ment policy of the State in which the agency is lo-
cated, but not including children who are enrolled in 
a distance education program at such agency and 
who are not residing within the geographic bound-
aries of such agency)’’; and 
(2) in paragraph (5)(A), by striking ‘‘1984’’ 
and all that follows through ‘‘situated’’ and inserting 
‘‘1984, or under lease of off-base property under 
subchapter IV of chapter 169 of title 10, United 
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States Code, to be children described under para-
graph (1)(B) if the property described is within the 
fenced security perimeter of the military facility or 
attached to and under any type of force protection 
agreement with the military installation upon which 
such housing is situated’’. 
(b) BASIC SUPPORT PAYMENTS FOR HEAVILY IM-
PACTED
LOCAL
EDUCATIONAL
AGENCIES.—Section 
8003(b) (20 U.S.C. 7703(b)) is amended— 
(1) by striking ‘‘section 8014(b)’’ each place it 
appears and inserting ‘‘section 3(d)(2)’’; 
(2) in paragraph (1), by repealing subpara-
graph (E); 
(3) in paragraph (2)— 
(A) in subparagraph (A), by inserting at 
the end the following: 
‘‘(iii) The Secretary shall— 
‘‘(I) deem each local educational agen-
cy that received a basic support payment 
under this paragraph for fiscal year 2009 
as eligible to receive a basic support pay-
ment under this paragraph for fiscal years 
2012 and 2013; and 
‘‘(II) make a payment to each such 
local educational agency under this para-
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graph for fiscal years 2012 and 2013.’’; 
and 
(B) in subparagraph (B)— 
(i) by striking ‘‘CONTINUING’’ in the 
heading; 
(ii) by amending clause (i) to read as 
follows: 
‘‘(i) IN
GENERAL.—A heavily im-
pacted local educational agency is eligible 
to receive a basic support payment under 
subparagraph (A) with respect to a num-
ber of children determined under sub-
section (a)(1) if the agency— 
‘‘(I) is a local educational agen-
cy— 
‘‘(aa) whose boundaries are 
the same as a Federal military 
installation or an island property 
designated by the Secretary of 
the Interior to be property that is 
held in trust by the Federal Gov-
ernment; and 
‘‘(bb) that has no taxing au-
thority; 
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‘‘(II) is a local educational agen-
cy that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) that constitutes a percent-
age of the total student enroll-
ment of the agency that is not 
less than 45 percent; 
‘‘(bb) has a per-pupil ex-
penditure that is less than— 
‘‘(AA) for an agency 
that has a total student en-
rollment of 500 or more stu-
dents, 125 percent of the av-
erage per-pupil expenditure 
of the State in which the 
agency is located; or 
‘‘(BB) for any agency 
that has a total student en-
rollment less than 500, 150 
percent of the average per- 
pupil expenditure of the 
State in which the agency is 
located or the average per- 
pupil expenditure of 3 or 
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more comparable local edu-
cational 
agencies 
in 
the 
State in which the agency is 
located; and 
‘‘(cc) is an agency that— 
‘‘(AA) has a tax rate 
for general fund purposes 
that is not less than 95 per-
cent of the average tax rate 
for general fund purposes of 
comparable local educational 
agencies in the State; or 
‘‘(BB) was eligible to 
receive a payment under this 
subsection for fiscal year 
2013 and is located in a 
State that by State law has 
eliminated ad valorem tax as 
a revenue for local edu-
cational agencies; 
‘‘(III) is a local educational agen-
cy that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) that constitutes a percent-
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age of the total student enroll-
ment of the agency that is not 
less than 20 percent; 
‘‘(bb) for the 3 fiscal years 
preceding the fiscal year for 
which the determination is made, 
the average enrollment of chil-
dren who are not described in 
subsection (a)(1) and who are eli-
gible for a free or reduced price 
lunch under the Richard B. Rus-
sell National School Lunch Act 
constitutes a percentage of the 
total student enrollment of the 
agency that is not less than 65 
percent; and 
‘‘(cc) has a tax rate for gen-
eral fund purposes which is not 
less than 125 percent of the aver-
age tax rate for general fund 
purposes for comparable local 
educational agencies in the State; 
‘‘(IV) is a local educational agen-
cy that has a total student enrollment 
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of not less than 25,000 students, of 
which— 
‘‘(aa) not less than 50 per-
cent are children described in 
subsection (a)(1); and 
‘‘(bb) not less than 5,500 of 
such children are children de-
scribed in subparagraphs (A) and 
(B) of subsection (a)(1); or 
‘‘(V) is a local educational agency 
that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) including, for purposes of 
determining eligibility, those chil-
dren described in subparagraphs 
(F) and (G) of such subsection, 
that is not less than 35 percent 
of the total student enrollment of 
the agency; and 
‘‘(bb) was eligible to receive 
assistance under subparagraph 
(A) for fiscal year 2001.’’; and 
(iii) in clause (ii)— 
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(I) by striking ‘‘A heavily’’ and 
inserting the following: 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), a heavily’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(II) LOSS OF ELIGIBILITY DUE 
TO FALLING BELOW 95 PERCENT OF 
THE AVERAGE TAX RATE FOR GEN-
ERAL FUND PURPOSES.—In a case of 
a heavily impacted local educational 
agency that is eligible to receive a 
basic support payment under subpara-
graph (A), but that has had, for 2 
consecutive fiscal years, a tax rate for 
general fund purposes that falls below 
95 percent of the average tax rate for 
general fund purposes of comparable 
local educational agencies in the 
State, such agency shall be deter-
mined to be ineligible under clause (i) 
and ineligible to receive a basic sup-
port payment under subparagraph (A) 
for each fiscal year succeeding such 2 
consecutive fiscal years for which the 
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agency has such a tax rate for general 
fund purposes, and until the fiscal 
year for which the agency resumes 
such eligibility in accordance with 
clause (iii).’’; 
(C) by striking subparagraph (C); 
(D) by redesignating subparagraphs (D) 
through (H) as subparagraphs (C) through (G), 
respectively; 
(E) in subparagraph (C) (as so redesig-
nated)— 
(i) in the heading, by striking ‘‘REG-
ULAR’’; 
(ii) by striking ‘‘Except as provided in 
subparagraph (E)’’ and inserting ‘‘Except 
as provided in subparagraph (D)’’; 
(iii) by amending subclause (I) of 
clause (ii) to read as follows: ‘‘ (I)(aa) For 
a local educational agency with respect to 
which 35 percent or more of the total stu-
dent enrollment of the schools of the agen-
cy are children described in subparagraph 
(D) or (E) (or a combination thereof) of 
subsection (a)(1), and that has an enroll-
ment of children described in subpara-
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graph (A), (B), or (C) of such subsection 
equal to at least 10 percent of the agency’s 
total enrollment, the Secretary shall cal-
culate the weighted student units of those 
children described in subparagraph (D) or 
(E) of such subsection by multiplying the 
number of such children by a factor of 
0.55. 
‘‘(bb) Notwithstanding subitem (aa), a 
local educational agency that received a 
payment under this paragraph for fiscal 
year 2013 shall not be required to have an 
enrollment of children described in sub-
paragraph (A), (B), or (C) of subsection 
(a)(1) equal to at least 10 percent of the 
agency’s total enrollment.’’; and 
(iv) by amending subclause (III) of 
clause (ii) by striking ‘‘(B)(i)(II)(aa)’’ and 
inserting ‘‘subparagraph (B)(i)(I)’’; 
(F) in subparagraph (D)(i)(II) (as so re-
designated), by striking ‘‘6,000’’ and inserting 
‘‘5,500’’; 
(G) in subparagraph (E) (as so redesig-
nated)— 
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(i) by striking ‘‘Secretary’’ and all 
that follows through ‘‘shall use’’ and in-
serting ‘‘Secretary shall use’’; 
(ii) by striking ‘‘; and’’ and inserting 
a period; and 
(iii) by striking clause (ii); 
(H) in subparagraphs (F) (as so redesig-
nated), 
by 
striking 
‘‘subparagraph 
(C)(i)(II)(bb)’’ and inserting ‘‘subparagraph 
(B)(i)(II)(bb)(BB)’’; 
(I) in subparagraph (G) (as so redesig-
nated)— 
(i) in clause (i)— 
(I) by striking ‘‘subparagraph 
(B), (C), (D), or (E)’’ and inserting 
‘‘subparagraph (B), (C), or (D)’’; 
(II) by striking ‘‘by reason of’’ 
and inserting ‘‘due to’’; 
(III) by inserting after ‘‘clause 
(iii)’’ the following ‘‘, or as the direct 
result of base realignment and closure 
or modularization as determined by 
the Secretary of Defense and force 
structure change or force relocation’’; 
and 
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(IV) by inserting before the pe-
riod, the following: ‘‘or during such 
time as activities associated with base 
closure 
and 
realignment, 
modularization, 
force 
structure 
change, or force relocation are ongo-
ing’’; and 
(ii) in clause (ii), by striking ‘‘(D) or 
(E)’’ each place it appears and inserting 
‘‘(C) or (D)’’; 
(4) in paragraph (3)— 
(A) in subparagraph (B)— 
(i) by amending clause (iii) to read as 
follows: 
‘‘(iii) In the case of a local educational 
agency providing a free public education to stu-
dents enrolled in kindergarten through grade 
12, but which enrolls students described in sub-
paragraphs (A), (B), and (D) of subsection 
(a)(1) only in grades 9 through 12, and which 
received a final payment in fiscal year 2009 cal-
culated under this paragraph (as this para-
graph was in effect on the day before the date 
of enactment of the Student Success Act) for 
students in grades 9 through 12, the Secretary 
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shall, in calculating the agency’s payment, con-
sider only that portion of such agency’s total 
enrollment of students in grades 9 through 12 
when calculating the percentage under clause 
(i)(I) and only that portion of the total current 
expenditures attributed to the operation of 
grades 9 through 12 in such agency when cal-
culating the percentage under clause (i)(II).’’; 
and 
(ii) by adding at the end the fol-
lowing: 
‘‘(v) In the case of a local educational 
agency that is providing a program of distance 
education to children not residing within the ge-
ographic boundaries of the agency, the Sec-
retary shall— 
‘‘(I) for purposes of the calculation 
under clause (i)(I), disregard such children 
from the total number of children in aver-
age daily attendance at the schools served 
by such agency; and 
‘‘(II) for purposes of the calculation 
under clause (i)(II), disregard any funds 
received for such children from the total 
current expenditures for such agency.’’; 
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(B) in subparagraph (C), by striking ‘‘sub-
paragraph (D) or (E) of paragraph (2), as the 
case may be’’ and inserting ‘‘paragraph 
(2)(D)’’; and 
(C) by amending subparagraph (D) to read 
as follows: 
‘‘(D) RATABLE
DISTRIBUTION.—For any 
fiscal year described in subparagraph (A) for 
which the sums available exceed the amount re-
quired to pay each local educational agency 100 
percent of its threshold payment, the Secretary 
shall distribute the excess sums to each eligible 
local educational agency that has not received 
its full amount computed under paragraph (1) 
or (2) (as the case may be) by multiplying— 
‘‘(i) a percentage, the denominator of 
which is the difference between the full 
amount computed under paragraph (1) or 
(2) (as the case may be) for all local edu-
cational agencies and the amount of the 
threshold payment (as calculated under 
subparagraphs (B) and (C)) of all local 
educational agencies, and the numerator of 
which is the aggregate of the excess sums, 
by 
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‘‘(ii) the difference between the full 
amount computed under paragraph (1) or 
(2) (as the case may be) for the agency 
and the amount of the threshold payment 
as calculated under subparagraphs (B) and 
(C) of the agency.’’; and 
(D) by inserting at the end the following 
new subparagraphs: 
‘‘(E) INSUFFICIENT PAYMENTS.—For each 
fiscal year described in subparagraph (A) for 
which the sums appropriated under section 
3(d)(2) are insufficient to pay each local edu-
cational agency all of the local educational 
agency’s threshold payment described in sub-
paragraph (D), the Secretary shall ratably re-
duce the payment to each local educational 
agency under this paragraph. 
‘‘(F) INCREASES.—If the sums appro-
priated under section 3(d)(2) are sufficient to 
increase the threshold payment above the 100 
percent threshold payment described in sub-
paragraph (D), then the Secretary shall in-
crease payments on the same basis as such pay-
ments were reduced, except no local educational 
agency may receive a payment amount greater 
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than 100 percent of the maximum payment cal-
culated under this subsection.’’; and 
(5) in paragraph (4)— 
(A) in subparagraph (A), by striking 
‘‘through (D)’’ and inserting ‘‘and (C)’’; and 
(B) in subparagraph (B), by striking ‘‘sub-
paragraph (D) or (E)’’ and inserting ‘‘subpara-
graph (C) or (D)’’. 
(c) PRIOR YEAR DATA.—Paragraph (2) of section 
8003(c) (20 U.S.C. 7703(c)) is amended to read as fol-
lows: 
‘‘(2) EXCEPTION.—Calculation of payments for 
a local educational agency shall be based on data 
from the fiscal year for which the agency is making 
an application for payment if such agency— 
‘‘(A) is newly established by a State, for 
the first year of operation of such agency only; 
‘‘(B) was eligible to receive a payment 
under this section for the previous fiscal year 
and has had an overall increase in enrollment 
(as determined by the Secretary in consultation 
with the Secretary of Defense, the Secretary of 
Interior, or the heads of other Federal agen-
cies)— 
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‘‘(i) of not less than 10 percent, or 
100 students, of children described in— 
‘‘(I) subparagraph (A), (B), (C), 
or (D) of subsection (a)(1); or 
‘‘(II) subparagraphs (F) and (G) 
of subsection (a)(1), but only to the 
extent such children are civilian de-
pendents of employees of the Depart-
ment of Defense or the Department of 
Interior; and 
‘‘(ii) that is the direct result of closure 
or realignment of military installations 
under the base closure process or the relo-
cation of members of the Armed Forces 
and civilian employees of the Department 
of Defense as part of the force structure 
changes or movements of units or per-
sonnel between military installations or be-
cause of actions initiated by the Secretary 
of the Interior or the head of another Fed-
eral agency; or 
‘‘(C) was eligible to receive a payment 
under this section for the previous fiscal year 
and has had an increase in enrollment (as de-
termined by the Secretary)— 
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‘‘(i) of not less than 10 percent of 
children described in subsection (a)(1) or 
not less than 100 of such children; and 
‘‘(ii) that is the direct result of the 
closure of a local educational agency that 
received a payment under subsection (b)(1) 
or (b)(2) in the previous fiscal year.’’. 
(d) 
CHILDREN
WITH
DISABILITIES.—Section 
8003(d)(1) (20 U.S.C. 7703(d)) is amended by striking 
‘‘section 8014(c)’’ and inserting ‘‘section 3(d)(3)’’. 
(e) HOLD-HARMLESS.—Section 8003(e) (20 U.S.C. 
7703(e)) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the total amount the Secretary shall pay a local edu-
cational agency under subsection (b)— 
‘‘(A) for fiscal year 2014, shall not be less 
than 90 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2013; 
‘‘(B) for fiscal year 2015, shall not be less 
than 85 percent of the total amount that the 
local educational agency received under sub-
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section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2013; and 
‘‘(C) for fiscal year 2016, shall not be less 
than 80 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2013.’’; and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) MAXIMUM
AMOUNT.—The total amount 
provided to a local educational agency under sub-
paragraph (A), (B), or (C) of paragraph (1) for a 
fiscal year shall not exceed the maximum basic sup-
port payment amount for such agency determined 
under paragraph (1) or (2) of subsection (b), as the 
case may be, for such fiscal year.’’. 
(f) MAINTENANCE OF EFFORT.—Section 8003 (20 
U.S.C. 7703) is amended by striking subsection (g). 
SEC. 404. POLICIES AND PROCEDURES RELATING TO CHIL-
DREN RESIDING ON INDIAN LANDS. 
Section 8004(e)(9) is amended by striking ‘‘Bureau 
of Indian Affairs’’ and inserting ‘‘Bureau of Indian Edu-
cation’’. 
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SEC. 405. APPLICATION FOR PAYMENTS UNDER SECTIONS 
8002 AND 8003. 
Section 8005(b) (20 U.S.C. 7705(b)) is amended in 
the matter preceding paragraph (1) by striking ‘‘and shall 
contain such information,’’. 
SEC. 406. CONSTRUCTION. 
Section 8007 (20 U.S.C. 7707) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘section 
8014(e)’’ and inserting ‘‘section 3(d)(4)’’; 
(B) in paragraph (2), by adding at the end 
the following: 
‘‘(C) The agency is eligible under section 
4003(b)(2) or is receiving basic support pay-
ments under circumstances described in section 
4003(b)(2)(B)(ii).’’; and 
(C) in paragraph (3), by striking ‘‘section 
8014(e)’’ each place it appears and inserting 
‘‘section 3(d)(4)’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘section 
8014(e)’’ and inserting ‘‘section 3(d)(4)’’; 
(B) in paragraph (3)— 
(i) in subparagraph (C)(i)(I), by add-
ing at the end the following: 
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‘‘(cc) At least 10 percent of the 
property in the agency is exempt from 
State and local taxation under Fed-
eral law.’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(F) LIMITATIONS
ON
ELIGIBILITY
RE-
QUIREMENTS.—The Secretary shall not limit 
eligibility— 
‘‘(i) under subparagraph (C)(i)(I)(aa), 
to those local educational agencies in which 
the number of children determined under 
section 8003(a)(1)(C) for each such agency 
for the preceding school year constituted 
more than 40 percent of the total student 
enrollment in the schools of each such 
agency during the preceding school year; 
and 
‘‘(ii) under subparagraph (C)(i)(I)(cc), 
to those local educational agencies in which 
more than 10 percent of the property in 
each such agency is exempt from State and 
local taxation under Federal law.’’; 
(C) in paragraph (6)— 
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(1) in paragraph (1), by striking ‘‘and Marine 
Corps’’ and inserting ‘‘Marine Corps, and Coast 
Guard’’; 
(2) in paragraph (4), by striking ‘‘and title VI’’; 
(3) in paragraph (5)(A)(iii)— 
(A) in subclause (II), by striking ‘‘Stewart 
B. McKinney Homeless Assistance Act’’ and in-
serting ‘‘McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11411)’’; and 
(B) in subclause (III), by inserting before 
the semicolon, ‘‘(25 U.S.C. 4101 et seq.)’’; 
(4) in paragraph (8)(A), by striking ‘‘and 
verified by’’ and inserting ‘‘, and verified by,’’; and 
(5) in paragraph (9)(B), by inserting a comma 
before ‘‘on a case-by-case basis’’. 
SEC. 412. AUTHORIZATION OF APPROPRIATIONS. 
Section 8014 (20 U.S.C. 7801) is repealed. 
SEC. 413. CONFORMING AMENDMENTS. 
(a) IMPACT AID IMPROVEMENT ACT OF 2012.—Sub-
section (c) of the Impact Aid Improvement Act of 2012 
(20 U.S.C. 6301 note; Public Law 112–239; 126 Stat 
1748) is amended— 
(1) by striking paragraphs (1) and (4); and 
(2) by redesignating paragraphs (2) and (3), as 
paragraphs (1) and (2), respectively. 
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(b) REPEAL.—Title IV (20 U.S.C. 7101 et seq.), as 
amended by section 501(b)(2) of this Act, is repealed. 
(c) TRANSFER AND REDESIGNATION.—Title VIII (20 
U.S.C. 7701 et seq.), as amended by this title, is redesig-
nated as title IV (20 U.S.C. 7101 et seq.), and transferred 
and inserted after title III (as amended by this Act). 
(d) TITLE VIII REFERENCES.—The Act (20 U.S.C. 
6301 et seq.) is amended— 
(1) by redesignating sections 8001 through 
8005 as sections 4001 through 4005, respectively; 
(2) by redesignating sections 8007 through 
8013 as sections 4007 through 4013, respectively; 
(3) by striking ‘‘section 8002’’ each place it ap-
pears and inserting ‘‘section 4002’’; 
(4) by striking ‘‘section 8002(b)’’ each place it 
appears and inserting ‘‘section 4002(b)’’; 
(5) by striking ‘‘section 8003’’ each place it ap-
pears and inserting ‘‘section 4003’’, respectively; 
(6) by striking ‘‘section 8003(a)’’ each place it 
appears and inserting ‘‘section 4003(a)’’; 
(7) by striking ‘‘section 8003(a)(1)’’ each place 
it appears and inserting ‘‘section 4003(a)(1)’’; 
(8) by striking ‘‘section 8003(a)(1)(C)’’ each 
place 
it 
appears 
and 
inserting 
‘‘section 
4003(a)(1)(C)’’; 
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(9) by striking ‘‘section 8002(a)(2)’’ each place 
it appears and inserting ‘‘section 4002(a)(2)’’; 
(10) by striking ‘‘section 8003(b)’’ each place it 
appears and inserting ‘‘section 4003(b)’’; 
(11) by striking ‘‘section 8003(b)(1)’’ each 
place it appears and inserting ‘‘section 4003(b)(1)’’; 
(12) in section 4002(b)(1)(C) (as so redesig-
nated), by striking ‘‘section 8003(b)(1)(C)’’ and in-
serting ‘‘section 4003(b)(1)(C)’’; 
(13) in section 4002(k)(1) (as so redesignated), 
by striking ‘‘section 8013(5)(C)(iii)’’ and inserting 
‘‘section 4013(5)(C)(iii)’’; 
(14) in section 4005 (as so redesignated)— 
(A) in the section heading, by striking 
‘‘8002
AND
8003’’ and inserting ‘‘4002
AND 
4003’’; 
(B) by striking ‘‘or 8003’’ each place it ap-
pears and inserting ‘‘or 4003’’; 
(C) in subsection (b)(2), by striking ‘‘sec-
tion 8004’’ and inserting ‘‘section 4004’’; and 
(D) in subsection (d)(2), by striking ‘‘sec-
tion 8003(e)’’ and inserting ‘‘section 4003(e)’’; 
(15) in section 4007(a)(3)(A)(i)(II) (as so re-
designated), by striking ‘‘section 8008(a)’’ and in-
serting ‘‘section 4008(a)’’; 
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(16) in section 4007(a)(4) (as so redesignated), 
by striking ‘‘section 8013(3)’’ and inserting ‘‘section 
4013(3)’’; and 
(17) in section 4009 (as so redesignated)— 
(A) in subsection (b)(1)— 
(i) by striking ‘‘or 8003(b)’’ and in-
serting ‘‘or 4003(b)’’; 
(ii) 
by 
striking 
‘‘section 
8003(a)(2)(B)’’ and inserting ‘‘section 
4003(a)(2)(B)’’; and 
(iii) by striking ‘‘section 8003(b)(2)’’ 
each place it appears and inserting ‘‘sec-
tion 4003(b)(2)’’; 
(B) by striking ‘‘section 8011(a)’’ each 
place 
it 
appears 
and 
inserting 
‘‘section 
4011(a)’’; and 
(18) in section 4010(c)(2)(D) (as so redesig-
nated) by striking ‘‘section 8009(b)’’ and inserting 
‘‘section 4009(b)’’. 
TITLE V—GENERAL PROVISIONS 
FOR THE ACT 
SEC. 501. GENERAL PROVISIONS FOR THE ACT. 
(a) AMENDING TITLE V.—Title V (20 U.S.C. 7201 
et seq.) is amended to read as follows: 
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‘‘TITLE V—GENERAL 
PROVISIONS 
‘‘PART A—DEFINITIONS 
‘‘SEC. 5101. DEFINITIONS. 
‘‘Except as otherwise provided, in this Act: 
‘‘(1) AVERAGE DAILY ATTENDANCE.— 
‘‘(A) IN
GENERAL.—Except as provided 
otherwise by State law or this paragraph, the 
term ‘average daily attendance’ means— 
‘‘(i) the aggregate number of days of 
attendance of all students during a school 
year; divided by 
‘‘(ii) the number of days school is in 
session during that year. 
‘‘(B) CONVERSION.—The Secretary shall 
permit the conversion of average daily member-
ship (or other similar data) to average daily at-
tendance for local educational agencies in 
States that provide State aid to local edu-
cational agencies on the basis of average daily 
membership (or other similar data). 
‘‘(C) SPECIAL
RULE.—If the local edu-
cational agency in which a child resides makes 
a tuition or other payment for the free public 
education of the child in a school located in an-
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