[Congressional Bills 112th Congress]
[From the U.S. Government Printing Office]
[S. 1566 Introduced in Senate (IS)]
112th CONGRESS
1st Session
S. 1566
To amend the Elementary and Secondary Education Act of 1965 regarding
public charter schools.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 15, 2011
Mr. Kirk (for himself, Mr. Alexander, Mr. Burr, Mr. Isakson, Mr.
McCain, Mr. Roberts, Mr. Rubio, and Mr. Wicker) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Elementary and Secondary Education Act of 1965 regarding
public charter schools.
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section or other provision is amended or repealed, such amendment or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) provide financial assistance for the planning,
program design, and initial implementation of charter schools;
``(2) expand the number of high-quality charter schools
available to students across the Nation;
``(3) evaluate the impact of such schools on student
achievement, families, and communities, and share best
practices between charter schools and other public schools;
``(4) 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;
``(5) improve student services to increase opportunities
for students who are children with disabilities, English
language learners, and other traditionally underserved students
to attend charter schools and meet challenging State academic
achievement standards; and
``(6) 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.--The Secretary is authorized 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, 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) Definitions.--In this section:
``(1) Charter management organization.--The term `charter
management organization' means a nonprofit organization that
operates, manages, or oversees multiple charter schools by
centralizing or sharing certain functions and resources among
schools, or a group or consortium of such organizations.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a State entity;
``(B) an authorized public chartering agency;
``(C) a local educational agency; or
``(D) a charter management organization.
``(3) State entity.--The term `State entity' means--
``(A) a State educational agency;
``(B) a State charter school board; or
``(C) a Governor of a State.
``(b) Program Authorized.--From the amount reserved under section
5202(b)(3), the Secretary shall award grants, on a competitive basis,
to eligible entities to enable--
``(1) eligible entities described in subparagraph (A), (B),
or (C) of subsection (a)(2) to--
``(A) award subgrants to eligible applicants--
``(i) to open new charter schools;
``(ii) to open replicable, high-quality
charter school models; or
``(iii) to expand high-quality charter
schools; and
``(B) provide technical assistance to eligible
applicants and authorized public chartering agencies in
carrying out the activities described in subparagraph
(A) and work with authorized public chartering agencies
in the State to improve authorizing quality; or
``(2) eligible entities described in subparagraph (B), (C),
or (D) of subsection (a)(2) to open new charter schools or
replicable high-quality charter school models or to expand
high-quality charter schools.
``(c) Uses of Funds.--
``(1) Special rule for subgranting entities.--An eligible
entity receiving a grant under subsection (b)(1) shall--
``(A) use 90 percent of the grant funds to carry
out subsection (b)(1)(A), in accordance with the
quality charter school program described in the
entity's application approved pursuant to subsection
(g); and
``(B) reserve 10 percent of such funds to carry out
the activities described in subsection (b)(1)(B), of
which not more than 30 percent may be used for
administrative costs which may include technical
assistance.
``(2) Contracts and grants.--An eligible entity may use a
grant received under this section to carry out the activities
described in subsection (b) directly or through grants,
contracts, or cooperative agreements.
``(d) Program Periods; Peer Review; Diversity of Projects.--
``(1) Program periods.--
``(A) Grants.--A grant awarded by the Secretary to
an eligible entity under this section shall be for a
period of 5 years.
``(B) Subgrants.--A subgrant awarded by an eligible
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 eligible entity
awarding subgrants under this section, shall use a peer review
process to review applications for assistance under this
section.
``(3) Diversity of projects.--Each eligible entity awarding
subgrants under this section shall award subgrants in a manner
that, to the extent practicable and applicable, 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.
``(e) Limitations.--
``(1) Grants.--An eligible entity may not receive more than
1 grant under this section for a 5-year period, unless the
eligible entity demonstrates to the Secretary that, for each
charter school supported under the first grant, the education
results, in the areas described in subparagraphs (A) and (D) of
section 5210(6), for the students enrolled in the charter
school have improved for not less than 3 consecutive years
during the grant period.
``(2) Subgrants.--An eligible applicant may not receive
more than 1 subgrant under this section per charter school for
a 5-year period.
``(f) Applications.--An eligible 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) 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) a description of how the entity will--
``(i) support both new charter school
startup and the expansion and replication of
high-quality charter school models;
``(ii) will work with charter schools to
promote inclusion of all students and support
all students once they are enrolled to promote
retention;
``(iii) will work with charter schools on
recruitment practices, including efforts to
engage groups that may otherwise have limited
opportunities to participate in charter
schools;
``(iv) will share best and promising
practices between charter schools and other
public schools;
``(v) will ensure the charter schools the
eligible entity supports can meet the
educational needs of their students, including
students who are children with disabilities and
English language learners; and
``(vi) will support efforts to increase
quality initiatives, including meeting the
quality authorizing elements described in
paragraph (2)(D)(ii);
``(B) in the case of any eligible entity that will
be awarding subgrants under subsection (b)(1)(A), a
description of how the entity--
``(i) will inform eligible charter schools,
developers, authorized public chartering
agencies, and other entities of the
availability of funds under the program;
``(ii) 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;
``(iii) 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;
``(iv) will support charter schools in
local educational agencies with large numbers
of schools that are required to comply with the
requirements of section 1116(b); and
``(v) will carry out the subgrant
competition, including--
``(I) a description of the
application each eligible applicant
desiring to receive a subgrant will
submit, which application shall
include--
``(aa) a description of the
roles and responsibilities of
eligible applicants, partner
organizations, and management
organizations, including the
administrative and contractual
roles and responsibilities; and
``(bb) 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
``(II) a description of how the
entity will review applications;
``(C) except in the case of an eligible entity
described in subsection (a)(3)(A), a description of how
the entity--
``(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;
``(D) in the case of an eligible entity that is a
State entity, a description of the extent to which the
entity--
``(i) is able to meet and carry out the
priorities described in subsection (g)(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
expanding high-quality charter schools; and
``(E) 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.
``(2) Assurances, including a description of how the
assurances will be met, that--
``(A) the eligible entity, if awarding subgrants,
will--
``(i) consider applications from eligible
charter schools, authorized public chartering
agencies, charter management organizations, and
other entities as applicable under State law;
and
``(ii) provide adequate technical
assistance to eligible applicants to--
``(I) meet the objectives described
in clauses (ii) and (iii) of paragraph
(1)(A) and subparagraph (B); and
``(II) enroll traditionally
underserved students, including
students who are children with
disabilities and English language
learners, to promote an inclusive
education environment;
``(B) each charter school receiving funds under the
entity's program will have a high degree of autonomy
over budget and operations;
``(C) the entity will support charter schools in
meeting the educational needs of their students as
described in paragraph (1)(A)(v);
``(D) in the case of an eligible entity that is a
State entity--
``(i) 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 the 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, and
section 504 of the Rehabilitation Act
of 1973; and
``(II) adequately monitors and
helps the schools in recruiting,
enrolling, and meeting the needs of all
students, including students who are
children with disabilities and English
language learners; and
``(ii) 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) using annual performance
data, which may include graduation
rates and student growth data, as
appropriate, to measure the progress of
their schools toward becoming high-
quality charter schools; 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.
``(3) 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.
``(g) Selection Criteria; Priority.--
``(1) Selection criteria.--The Secretary shall award grants
to eligible entities under this section on the basis of the
quality of the applications submitted under subsection (f),
after taking into consideration--
``(A) the degree of flexibility afforded by the
State's public charter school law and, in the case of
an eligible entity described in subsection (a)(2)(A),
how the entity will work to maximize the flexibility
provided to charter schools under the law;
``(B) the quality of the strategy for assessing
achievement of the entity's objectives under subsection
(f)(1);
``(C) the likelihood that the eligible entity, and
any eligible applicants receiving subgrants from the
eligible entity, will meet those objectives and improve
educational results for students;
``(D) the proposed number of new charter schools to
be opened, and the number of high-quality charter
schools to be replicated or expanded under the program;
``(E) in the case of an eligible entity awarding
subgrants under subsection (b)(1)(A), the entity's plan
to--
``(i) adequately monitor the eligible
applicants receiving subgrants under the
entity's program;
``(ii) work with the authorized public
chartering agencies involved to avoid
duplication of work for the charter schools and
authorized public chartering agencies; and
``(iii) provide adequate technical
assistance, as described in the entity's
application under subsection (f), for the
eligible applicants receiving subgrants under
the entity's program; and
``(F) the entity's plan to support quality
authorizing efforts in the State, consistent with the
objectives under subsection (f)(1).
``(2) Priority.--In selecting State entities to receive a
portion of the grants awarded under this section, the Secretary
shall give priority to State entities to the extent that they
meet the following criteria:
``(A) In the case in which a State entity is
located in a State that allows an entity other than the
State educational agency to be an authorized public
chartering agency or a State in which only a local
educational agency may be an authorized public
chartering agency, the State has an appeals process for
the denial of an application for a charter school.
``(B) 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.
``(C) 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.
``(D) 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.
``(E) The State entity supports charter schools
that support at-risk students through activities such
as dropout prevention or dropout recovery.
``(h) 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.
``(i) Reporting Requirements.--Each eligible 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 and, if applicable, how
many new students were served during each year of the grant
period;
``(2) in the case of an eligible entity awarding subgrants
under subsection (b)(1)(A), 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) in the case of an eligible entity receiving a grant
under subsection (b)(2), the number of new charter schools
opened, the number of replicable high-quality charter school
models opened, and the number of high-quality charter schools
expanded under the grant;
``(4) in the case of a State entity, the progress the State
entity made toward meeting the priorities described in
subsection (g)(2), as applicable;
``(5) how the entity met the objectives of the quality
charter school program described in the entity's application
under subsection (f);
``(6) how the entity complied with, and, if applicable,
ensured that eligible applicants complied with, the assurances
described in the entity's application; and
``(7) how the entity worked with authorized public
chartering agencies, including how the agencies worked with the
management company or leadership of the schools in which the
subgrants were awarded, if applicable.''.
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 not less than 3 grants to
eligible entities that have applications approved under
subsection (d) 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.--
``(1) Evaluation of application.--The Secretary shall
evaluate each application submitted under subsection (d), and
shall determine whether the application is sufficient to merit
approval.
``(2) Distribution of grants.--The Secretary shall award
not less than one grant to an eligible entity described in
subsection (a)(2)(A), not less than one grant to an eligible
entity described in subsection (a)(2)(B), and not less than one
grant to an eligible entity described in subsection (a)(2)(C),
if applications are submitted that permit the Secretary to do
so without approving an application that is not of sufficient
quality 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 subsection.
``(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 such subsection; 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 such subsection.
``(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.--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.--A State that is
required under State law to provide its charter
schools with access to adequate facility space
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(b)(1)(A);
``(B) disseminate best practices regarding public
charter schools; 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.--From the amounts described in subsection
(a)(1), 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) and section
5203(b).
``(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 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 State
that--
``(A) did not apply for a grant under section 5203;
``(B) did not receive a grant under section 5203;
or
``(C) received a grant under section 5203 and is in
the fourth or fifth 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 by inserting ``as quickly
as possible and'' before ``to the extent practicable''.
SEC. 9. DEFINITIONS.
Section 5210 (20 U.S.C. 7221i) is amended--
(1) in paragraph (1)--
(A) in subparagraph (K), by striking ``and'' at the
end;
(B) in subparagraph (L), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end, the following:
``(M) may serve prekindergarten or postsecondary
students.'';
(2) in paragraph (3), 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;
``(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 subgroups 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.'';
and
(2) by striking the item relating to section 5204 and
inserting the following:
``Sec. 5204. Facilities financing assistance.''.
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