[Congressional Bills 112th Congress]
[From the U.S. Government Printing Office]
[H.R. 2218 Referred in Senate (RFS)]
112th CONGRESS
1st Session
H. R. 2218
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 14, 2011
Received; read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
AN ACT
To amend the charter school program under the Elementary and Secondary
Education Act of 1965.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Empowering Parents through Quality
Charter Schools Act''.
SEC. 2. REFERENCES.
Except as otherwise specifically provided, whenever in this Act a
section or other provision is amended or repealed, such amendment or
repeal shall be considered to be made to that section or other
provision of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.).
SEC. 3. PURPOSE.
Section 5201 (20 U.S.C. 7221) is amended to read as follows:
``SEC. 5201. PURPOSE.
``It is the purpose of this subpart to--
``(1) improve the United States education system and
educational opportunities for all Americans by supporting
innovation in public education in public school settings that
prepare students to compete and contribute to the global
economy;
``(2) provide financial assistance for the planning,
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 student
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 opportunities
for students with disabilities, limited English proficient
students, 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 management,
including transparency, monitoring, and evaluation of such
schools.''.
SEC. 4. PROGRAM AUTHORIZED.
Section 5202 (20 U.S.C. 7221a) is amended to read as follows:
``SEC. 5202. PROGRAM AUTHORIZED.
``(a) In General.--This subpart authorizes the Secretary to carry
out a charter school program that supports charter schools that serve
elementary school and secondary school students by--
``(1) supporting the startup, replication, and expansion of
charter schools;
``(2) assisting charter schools in accessing credit to
acquire and renovate facilities for school use; and
``(3) carrying out national activities to support--
``(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 program.
``(b) Funding Allotment.--From the amount made available under
section 5211 for a fiscal year, the Secretary shall--
``(1) reserve 15 percent to support charter school
facilities assistance under section 5204;
``(2) reserve not more than 5 percent to carry out national
activities under section 5205; and
``(3) use the remaining amount after the Secretary reserves
funds under paragraphs (1) and (2) to carry out section 5203.
``(c) Prior Grants and Subgrants.--The recipient of a grant or
subgrant under this subpart or subpart 2, as such subpart was in effect
on the day before the date of enactment of the Empowering Parents
through Quality Charter Schools Act, shall continue to receive funds in
accordance with the terms and conditions of such grant or subgrant.''.
SEC. 5. GRANTS TO SUPPORT HIGH-QUALITY CHARTER SCHOOLS.
Section 5203 (20 U.S.C. 7221b) is amended to read as follows:
``SEC. 5203. GRANTS TO SUPPORT HIGH-QUALITY CHARTER SCHOOLS.
``(a) In General.--From the amount reserved under section
5202(b)(3), the Secretary shall award grants to State entities having
applications approved pursuant 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 charter
school models; or
``(C) expanding high-quality charter schools; and
``(2) provide technical assistance to eligible applicants
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 accordance with
the quality charter school program described in the
entity's application approved pursuant to subsection
(f), for the purposes 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 include technical assistance.
``(2) Contracts and grants.--A State entity may use a grant
received under this section to carry out the activities
described in subparagraphs (A) and (B) of paragraph (1)
directly or through grants, contracts, or cooperative
agreements.
``(c) Program Periods; Peer Review; Grant Number and Amount;
Diversity of Projects; Waivers.--
``(1) Program periods.--
``(A) Grants.--A grant awarded by the Secretary to
a State entity under this section shall be for a period
of not more than 5 years.
``(B) Subgrants.--A subgrant awarded by a State
entity under this section shall be for a period of not
more than 5 years, of which an eligible applicant may
use not more than 18 months for planning and program
design.
``(2) Peer review.--The Secretary, and each State entity
receiving a grant under this section, shall use a peer review
process to review applications for assistance under this
section.
``(3) Grant number and amount.--The Secretary shall ensure
that the number of grants awarded 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.
``(4) Diversity of projects.--Each State entity receiving a
grant under this section shall award subgrants under this
section in a manner that, to the extent possible, ensures that
such subgrants--
``(A) are distributed throughout different areas,
including urban, suburban, and rural areas; and
``(B) will assist charter schools representing a
variety of educational approaches.
``(5) Waivers.--The Secretary may waive any statutory or
regulatory requirement over which the Secretary exercises
administrative authority except any such requirement relating
to the elements of a charter school described in section
5210(1), if--
``(A) the waiver is requested in an approved
application under this section; and
``(B) the Secretary determines that granting such a
waiver will promote the purpose of this subpart.
``(d) Limitations.--
``(1) Grants.--A State entity may not receive more than 1
grant under this section for a 5-year period.
``(2) Subgrants.--An eligible applicant may not receive
more than 1 subgrant under this section per charter school for
a 5-year period, unless the eligible applicant demonstrates to
the State entity not less than 3 years of improved educational
results in the areas described in subparagraphs (A) and (D) of
section 5210(6) for students enrolled in such charter school.
``(e) Applications.--A State entity desiring to receive a grant
under this section shall submit an application to the Secretary at such
time and in such manner as the Secretary may require. The application
shall include the following:
``(1) Description of program.--A description of the
entity's objectives in running a quality charter school program
under this section and how the objectives of the program will
be carried out, including a description--
``(A) of how the entity--
``(i) will support both new charter school
startup and the expansion and replication of
high-quality charter school models;
``(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
receive, and help the charter schools supported
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
educational agency and the charter
schools in the State to maximize
charter school participation in Federal
and State programs for charter schools;
and
``(II) will work with the State
educational agency to adequately
operate the entity's program under this
section, where applicable;
``(v) will ensure eligible applicants that
receive a subgrant under the entity's program
are prepared to continue to operate the charter
schools receiving the subgrant funds once the
funds have expired;
``(vi) will support charter schools in
local educational agencies with large numbers
of schools that must comply with the
requirements of section 1116(b);
``(vii) will work with charter schools to
promote inclusion of all students and support
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 charter
schools;
``(ix) will share best and promising
practices between charter schools and other
public schools, including, where appropriate,
instruction and professional development in
science, math, technology, and engineering
education;
``(x) will ensure the charter schools they
support can meet the educational needs of their
students, including students with disabilities
and limited English proficient students; 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
applicants, 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 on the
State's academic accountability system
will be a primary factor for renewal;
and
``(III) a description of how the
eligible applicant will solicit and
consider input from parents and other
members of the community on the
implementation 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 entity's
quality charter school program, in whole or in part, of
the roles and responsibilities of this partner;
``(E) of how the entity will help the charter
schools receiving funds under the entity's program
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 degree of autonomy
over budget and operations;
``(B) the entity will support charter schools in
meeting the educational needs of their students as
described in paragraph (1)(A)(x);
``(C) the entity will ensure that the authorized
public chartering agency of any charter school that
receives funds under the entity's program--
``(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 Rehabilitation 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, including
students with disabilities and limited English
proficient students; 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 technical
assistance to eligible applicants to--
``(i) meet the objectives described in
clauses (vii) and (viii) of paragraph (1)(A)
and paragraph (2)(B); and
``(ii) enroll traditionally underserved
students, including students with disabilities
and limited English proficient students, to
promote an inclusive education environment;
``(E) the entity will promote quality authorizing,
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 appropriate,
graduation rates and student growth; and
``(ii) reviewing the schools' independent,
annual audits of financial statements conducted
in accordance with generally accepted
accounting principles, and ensuring any such
audits are publically reported;
``(F) the entity will work to ensure that charter
schools are included with the traditional public school
system in decision-making about the public school
system in the State; and
``(G) the entity will ensure that each charter
school in the State make publicly available, consistent
with the dissemination requirements of the annual State
report card, the information parents need to make
informed decisions about the educational options
available to their children, including information on
the educational program, student support services, and
annual performance and enrollment data for the groups
of students described in section 1111(b)(2)(C)(v)(II).
``(3) Requests for waivers.--A request and justification
for waivers of any Federal statutory or regulatory provisions
that the entity believes are necessary for the successful
operation of the charter schools that will receive funds under
the entity's program under this section, and a description of
any State or local rules, generally applicable to public
schools, that will be waived, or otherwise not apply to such
schools.
``(f) Selection Criteria; Priority.--
``(1) Selection criteria.--The Secretary shall award grants
to State entities under this section on the basis of the
quality of the applications submitted under subsection (e),
after taking into 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 objectives
for the quality charter school program carried out
under this section;
``(C) the quality of the strategy for assessing
achievement of those objectives;
``(D) the likelihood that the eligible applicants
receiving subgrants under the program will meet those
objectives and improve educational results for
students;
``(E) the proposed number of new charter schools to
be opened, and the proposed number 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
duplication 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 entity'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 consider
input from parents and other members of the community
on the implementation and operation of the charter
schools in the State.
``(2) Priority.--In awarding grants under this section, the
Secretary shall give priority to State entities to the extent
that they meet the following criteria:
``(A) In the case of a State entity located in a
State that allows an entity other than a local
educational agency to be an authorized public
chartering agency, the State has a quality 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 students that may attend
charter schools in the State.
``(C) The State entity is located in a State that
ensures equitable financing, as compared to traditional
public schools, for charter schools and students in a
prompt manner.
``(D) The State entity is located in a State that
uses charter schools and best practices from charter
schools to help improve struggling schools and local
educational agencies.
``(E) The State entity partners with an
organization that has a demonstrated record of success
in developing management organizations 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 disabilities
and limited English proficient students.
``(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 charter
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 or replicable, high-quality charter school models, or expand
existing high-quality charter schools.
``(h) Reporting Requirements.--Each State entity 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 by each subgrant
awarded under this section and, if applicable, 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 meeting the
priorities described in subsection (f)(2), as applicable;
``(4) how the entity met the objectives of the quality
charter school program described in the entity'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, including how the 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; or
``(3) a Governor of a State.''.
SEC. 6. FACILITIES FINANCING ASSISTANCE.
Section 5204 (20 U.S.C. 7221c) is amended to read as follows:
``SEC. 5204. FACILITIES FINANCING ASSISTANCE.
``(a) Grants to Eligible Entities.--
``(1) In general.--From the amount reserved under section
5202(b)(1), the Secretary shall award grants to eligible
entities that have the highest-quality applications approved
under subsection (d), after considering the diversity of such
applications, to demonstrate innovative methods of assisting
charter schools to address the cost of acquiring, constructing,
and renovating facilities by enhancing the availability of
loans or bond financing.
``(2) Eligible entity defined.--For purposes 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 subsection (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 Secretary an application
in such form as the Secretary 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 activities
will leverage the maximum amount of private-sector
financing capital relative to the amount of 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 assistance from the entity under this section;
``(E) a description of how the eligible entity
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 submitted by a
State governmental entity, a description 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 access private sector capital to accomplish one or both of
the following objectives:
``(1) The acquisition (by purchase, lease, donation, or
otherwise) of an interest (including an interest 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 operation of a charter school.
``(2) The construction of new facilities, including
predevelopment costs, or the renovation, repair, or alteration
of existing facilities, 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 subsection (a) shall,
in accordance with State and local law, directly or indirectly,
alone or in collaboration with others, deposit the funds
received under subsection (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 reinsuring bonds,
notes, evidences of debt, loans, and interests therein,
the proceeds of which are used for an objective
described in subsection (e).
``(B) Guaranteeing and insuring leases of personal
and real property for an objective described in
subsection (e).
``(C) Facilitating financing by identifying
potential lending sources, encouraging private lending,
and other similar activities that directly 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 established under paragraph
(1) shall be invested in obligations issued or guaranteed by
the United States or a State, or in other similarly low-risk
securities.
``(3) Reinvestment of earnings.--Any earnings on funds
received under subsection (a) shall be deposited in the reserve
account established under paragraph (1) and used in accordance
with such paragraph.
``(g) Limitation on Administrative Costs.--An eligible entity may
use not more than 2.5 percent of the funds received under subsection
(a) for the administrative costs of carrying out its responsibilities
under this section (excluding subsection (k)).
``(h) Audits and Reports.--
``(1) Financial record maintenance and audit.--The
financial records of each eligible entity receiving a grant
under subsection (a) shall be maintained in accordance with
generally accepted accounting 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 subsection (a) annually shall
submit to the Secretary a report of its operations and
activities under this section.
``(B) Contents.--Each annual report submitted under
subparagraph (A) shall include--
``(i) a copy of the most recent financial
statements, and any accompanying opinion on
such statements, prepared by the independent
public accountant reviewing the financial
records of the eligible entity;
``(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
entity 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 facilitated by
the grant, and the type of assistance provided
to the charter schools;
``(v) a description of the activities
carried out by the eligible entity to assist
charter schools in meeting the objectives set
forth in subsection (e); and
``(vi) a description of the characteristics
of lenders and other financial institutions
participating in the activities undertaken by
the eligible entity under this section
(excluding subsection (k)) during the reporting
period.
``(C) Secretarial report.--The Secretary shall
review the reports submitted under subparagraph (A) and
shall provide a comprehensive annual report to Congress
on the activities 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 obligation under a guarantee, bond, note,
evidence of debt, or loan) shall be an obligation of, or guaranteed in
any respect 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 accordance 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 subsection
(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 eligible 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 reserve
account established by an eligible entity under
subsection (f)(1) if the Secretary determines that the
eligible entity has permanently ceased to use all or a
portion of the funds in such account to accomplish any
purpose described in subsection (f)(1).
``(2) Exercise of authority.--The Secretary shall not
exercise the authority provided in paragraph (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 Provisions Act shall apply to
the recovery of funds under paragraph (1).
``(4) Construction.--This subsection shall not be construed
to impair or affect the authority of the Secretary to recover
funds under part D of the General Education Provisions Act.
``(k) Per-pupil Facilities Aid Program.--
``(1) Definition of per-pupil facilities aid program.--In
this subsection, the term `per-pupil facilities aid program'
means a program in which a State makes payments, on a per-pupil
basis, to charter 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 reserved under
section 5202(b)(1) remaining after the Secretary makes
grants under subsection (a), the Secretary shall make
grants, on a competitive basis, to States to pay for
the Federal share of the cost of establishing or
enhancing, and administering per-pupil facilities aid
programs.
``(B) Period.--The Secretary shall award grants
under this subsection for periods of not more than 5
years.
``(C) Federal share.--The Federal share of the cost
described in subparagraph (A) for a per-pupil
facilities aid program shall be not more than--
``(i) 90 percent of the cost, for the first
fiscal year for which the program receives
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 percent of the State
share of the cost of establishing or enhancing, and
administering the per-pupil facilities aid program.
``(E) Multiple grants.--A State may receive more
than 1 grant under this subsection, so long as the
amount of such funds provided to charter schools
increases with each successive grant.
``(3) Use of funds.--
``(A) In general.--A State that receives a grant
under this subsection shall use the funds made
available through the grant to establish or enhance,
and administer, a per-pupil facilities aid program for
charter schools in the State of the applicant.
``(B) Evaluations; technical assistance;
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 provide per pupil facilities aid
programs, operations financing programs, or other
programs, for charter schools.
``(4) Requirements.--
``(A) Voluntary participation.--No State may be
required to participate in a program carried out under
this subsection.
``(B) State law.--
``(i) In general.--Except as provided 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.--Notwithstanding
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 manner, and containing such
information as the Secretary may require.''.
SEC. 7. NATIONAL ACTIVITIES.
Section 5205 (20 U.S.C. 7221d) is amended to read as follows:
``SEC. 5205. NATIONAL ACTIVITIES.
``(a) In General.--From the amount reserved under section
5202(b)(2), the Secretary shall--
``(1) use not less than 50 percent of such funds to award
grants in accordance with subsection (b); and
``(2) use the remainder of such funds to--
``(A) disseminate technical assistance to State
entities in awarding subgrants under section 5203, and
eligible entities and States receiving grants under
section 5204;
``(B) disseminate best practices; and
``(C) evaluate the impact of the charter school
program, including the impact on student achievement,
carried out under this subpart.
``(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 described in section 5202(a)(1),
subparagraphs (A) through (C) of section 5203(a)(1), and
section 5203(g).
``(2) Terms and conditions.--Except as otherwise provided
in this subsection, grants awarded under this subsection shall
have the same terms and conditions as grants awarded to State
entities under section 5203.
``(3) Eligible applicant defined.--For purposes of this
subsection, the term `eligible applicant' means an eligible
applicant that desires to open a charter school in--
``(A) a State that did not apply for a grant under
section 5203;
``(B) a State that did not receive a grant under
section 5203; or
``(C) a State that received a grant under section
5203 and is in the 4th or 5th year of the grant period
for such grant.
``(c) Contracts and Grants.--The Secretary may carry out any of the
activities described in this section directly or through grants,
contracts, or cooperative agreements.''.
SEC. 8. RECORDS TRANSFER.
Section 5208 (20 U.S.C. 7221g) is amended--
(1) by inserting ``as quickly as possible and'' before ``to
the extent practicable''; and
(2) by striking ``section 602'' and inserting ``section
602(14)''.
SEC. 9. DEFINITIONS.
Section 5210 (20 U.S.C. 7221i) is amended--
(1) in paragraph (1)--
(A) by striking ``and'' at the end of subparagraph
(K);
(B) by striking the period at the end of
subparagraph (L) and inserting ``; and''; and
(C) by adding at the end, the following:
``(M) may serve prekindergarten or post secondary
students.'';
(2) in paragraph (3)(B), by striking ``under section
5203(d)(3)''; and
(3) by adding at the end the following:
``(5) Expansion of a high-quality charter school.--The term
`expansion of a high-quality charter school' means a high-
quality charter school that either significantly increases its
enrollment or adds one or more grades to its school.
``(6) High-quality charter school.--The term `high-quality
charter school' means a charter school that--
``(A) shows evidence of strong academic results,
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 significantly
increasing student academic achievement and attainment
for all students served by charter schools; and
``(D) has demonstrated success in increasing
student academic achievement for the groups of students
described in section 1111(b)(2)(C)(v)(II).
``(7) Replicable, high-quality charter school model.--The
term `replicable, high-quality charter school model' means a
high-quality charter school that will open a new campus under
an existing charter.''.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
Section 5211 (20 U.S.C. 7221j) is amended to read as follows:
``SEC. 5211. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
$300,000,000 for fiscal year 2012 and each of the 5 succeeding fiscal
years.''.
SEC. 11. CONFORMING AMENDMENTS.
(a) Repeal.--Subpart 2 of part B of title V (20 U.S.C. 7223 et
seq.) is repealed.
(b) Table of Contents.--The table of contents in section 2 is
amended--
(1) by striking the item relating to section 5203 and
inserting the following:
``Sec. 5203. Grants to support high-quality charter schools.'';
(2) by striking the item relating to section 5204 and
inserting the following:
``Sec. 5204. Facilities Financing Assistance.''; and
(3) by striking subpart 2 of part B of title V.
Passed the House of Representatives September 13, 2011.
Attest:
KAREN L. HAAS,
Clerk.