[House Report 113-444]
[From the U.S. Government Printing Office]


113th Congress  }                                           {    Report
                        HOUSE OF REPRESENTATIVES
 2d Session     }                                           {   113-444

======================================================================
 
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 10) TO AMEND THE CHARTER 
  SCHOOL PROGRAM UNDER THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
 1965; RELATING TO CONSIDERATION OF THE BILL (H.R. 4438) TO AMEND THE 
   INTERNAL REVENUE CODE OF 1986 TO SIMPLIFY AND MAKE PERMANENT THE 
                RESEARCH CREDIT; AND FOR OTHER PURPOSES

                                _______
                                

 May 7, 2014.--Referred to the House Calendar and ordered to be printed

                                _______
                                

                Ms. Foxx, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 576]

    The Committee on Rules, having had under consideration 
House Resolution 576, by a vote of 6-2, report the same to the 
House with the recommendation that the resolution be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 10, the 
Success and Opportunity through Quality Charter Schools Act, 
under a structured rule. The resolution provides 90 minutes of 
general debate equally divided and controlled by the chair and 
ranking minority member of the Committee on Education and the 
Workforce. The resolution waives all points of order against 
consideration of the bill. The resolution makes in order as 
original text for the purpose of amendment the amendment in the 
nature of a substitute recommended by the Committee on 
Education and the Workforce now printed in the bill and 
provides that it shall be considered as read. The resolution 
waives all points of order against the amendment in the nature 
of a substitute. The resolution makes in order only those 
further amendments printed in part A of this report. Each such 
amendment may be offered only in the order printed in this 
report, may be offered only by a Member designated in this 
report, shall be considered as read, shall be debatable for the 
time specified in this report equally divided and controlled by 
the proponent and an opponent, shall not be subject to 
amendment, and shall not be subject to a demand for division of 
the question in the House or in the Committee of the Whole. The 
resolution waives all points of order against the amendments 
printed in part A of this report.
    The resolution provides one motion to recommit with or 
without instructions.
    Section 2 of the resolution provides that on any 
legislative day during the period from May 12, 2014, through 
May 16, 2014: the Journal of the proceedings of the previous 
day shall be considered as approved; and the Chair may at any 
time declare the House adjourned to meet at a date and time to 
be announced by the Chair in declaring the adjournment.
    Section 3 of the resolution provides that the Speaker may 
appoint Members to perform the duties of the Chair for the 
duration of the period addressed by section 2.
    Section 4 of the resolution provides that it shall be in 
order at any time on the legislative day of May 8, 2014, for 
the Speaker to entertain motions that the House suspend the 
rules relating to H.R. 4366, the Strengthening Education 
through Research Act.
    Section 5 of the resolution provides that the Committee on 
Appropriations may, at any time before 5 p.m. on Thursday, May 
15, 2014, file privileged reports to accompany measures making 
appropriations for the fiscal year ending September 30, 2015.
    Section 6 of the resolution provides that during 
consideration of the bill (H.R. 4438) to amend the Internal 
Revenue Code of 1986 to simplify and make permanent the 
research credit, pursuant to House Resolution 569, the further 
amendment printed in part B of this report shall be considered 
as adopted.
    Section 7 of the resolution provides that House Resolution 
569 is amended by striking ``90 minutes'' and inserting ``one 
hour''.

                         EXPLANATION OF WAIVERS

    Although the resolution waives all points of order against 
consideration of the bill, the Committee is not aware of any 
points of order. The waiver of all points of order is 
prophylactic in nature.
    Although the resolution waives all points of order against 
the amendment in the nature of a substitute made in order as 
original text, the Committee is not aware of any points of 
order. The waiver of all points of order is prophylactic in 
nature.
    Although the resolution waives all points of order against 
the amendments printed in part A of this report, the Committee 
is not aware of any points of order. The waiver of all points 
of order is prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 136

    Motion by Mr. McGovern to make in order and provide the 
appropriate waivers for amendment #6 by Rep. Grijalva (AZ) and 
Rep. Honda (CA), which requires public disclosure of all 
private contributions to support accountability and 
transparency in the charter sector; amendment #7 by Rep. 
Grijalva (AZ) and Rep. Honda (CA), which requires the state 
entity to create conflict of interest guidelines. Requires 
charter school board meetings to be open and transparent to 
parents, educators and the public; amendment #10 by Rep. 
Tierney (MA), which seeks to increase transparency and 
recognizes the critical importance of parental involvement in 
educational outcomes for children by requiring an assurance in 
the grant application that charter school board meetings be 
open to parents and the public; amendment #11 by Rep. Tierney 
(MA), which seeks to increase transparency and promote 
accountability by ensuring appropriate access to financial 
records, budget statements, audit reports and other relevant 
documents relating to the operation and management of the 
charter school within the custody or control of an education 
management organization; amendment #13 by Rep. Langevin which 
adds comprehensive career counseling to the criteria that the 
Secretary will take into account when prioritizing grants to 
LEAs; amendment #19 by Rep. Kaptur (OH), which requires that 
all charter schools receiving public funding as described in 
this bill provide full public disclosure of information on 
school demographics and student attrition rates in the annual 
audit report to the Secretary. The disclosure of this 
information will be made in accordance with current state and 
Federal Law; amendment #21 by Rep. Reichert (WA) and Rep. 
Larsen (WA) and Rep. DelBene (WA), protect states' rights to 
design their own charter school systems by striking language 
that places states with charter school caps at a disadvantage 
when competing for federal grants; amendment #24 by Rep. Meeks 
(NY), which provides states with caps on charter school funding 
equitable consideration for federal funding as states without 
caps. Defeated: 2-6

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................  ............
Mr. Bishop of Utah..............................  ............  Mr. McGovern......................          Yea
Mr. Cole........................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Woodall.....................................          Nay   Mr. Polis.........................  ............
Mr. Nugent......................................  ............
Mr. Webster.....................................          Nay
Ms. Ros-Lehtinen................................  ............
Mr. Burgess.....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 137

    Motion by Ms. Foxx to report the rule. Adopted: 6-2

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Yea   Ms. Slaughter.....................  ............
Mr. Bishop of Utah..............................  ............  Mr. McGovern......................          Nay
Mr. Cole........................................          Yea   Mr. Hastings of Florida...........          Nay
Mr. Woodall.....................................          Yea   Mr. Polis.........................  ............
Mr. Nugent......................................  ............
Mr. Webster.....................................          Yea
Ms. Ros-Lehtinen................................  ............
Mr. Burgess.....................................          Yea
Mr. Sessions, Chairman..........................          Yea
----------------------------------------------------------------------------------------------------------------

      SUMMARY OF THE AMENDMENTS TO H.R. 10 IN PART A MADE IN ORDER

    1. Kline (MN): Makes technical corrections and improvements 
to the underlying bill text. (10 minutes)
    2. Cassidy (LA): Requires GAO to audit/track the dollars 
and examine if the money allocated from administrative costs is 
appropriate. (10 minutes)
    3. Castor (FL): Requires the Secretary of the Department of 
Education to develop and enforce conflict of interest 
guidelines for all charter schools receiving federal 
assistance. Guidelines must include disclosures from anyone 
affiliated with the charter school that has a financial 
interest in the school. (10 minutes)
    4. Moore, Gwen (WI): Establishes a two percent set-aside 
within state funds to provide oversight of the use of funds by 
charter schools. (10 minutes)
    5. Bass (CA), Marino (PA), McDermott (WA), Bachmann (MN): 
Adds on p. 14, line 16 after all students ``, including 
eliminating any barriers to enrollment for foster youth or 
unaccompanied homeless youth,''. This will ensure that there 
are no unnecessary barriers for foster youth in charter school 
enrollment and ensure the inclusion and retention of all 
students no matter the involvement or lack of involvement of 
parents. (10 minutes)
    6. Messer, Luke (IN): Requires state entities applying for 
Charter School Program grant funds to explain how they will 
work with eligible applicants within the state to encourage the 
opening, replication, and expansion of secondary charter 
schools (10 minutes)
    7. Grayson (FL), Clarke (NY), Wilson (FL): Ensures that an 
application by a state entity to receive grants through the 
Charter School Program contains an assurance that charter 
schools will also measure student retention rates in their 
annual performance assessments--as well as graduation rates and 
student academic growth, as currently required by this bill. 
(10 minutes)
    8. Jackson Lee (TX): Directs the website publication of 
materials on the websites of Charter Schools regarding student 
recruitment, orientation materials, enrollment criteria, 
student discipline policies, behavior codes, and parent 
contract requirements, which should include any financial 
obligations such as fees for tutoring, extra-circular activity 
etc. (10 minutes)
    9. Wilson (FL), Davis, Rodney (IL), Duckworth (IL), Grayson 
(FL), McKinley (WV), Fudge (OH): Ensures collection and public 
dissemination of information that will help parents make 
informed decisions about education options for their children. 
(10 minutes)
    10. Langevin (RI), Thompson, Glenn (PA): Adds comprehensive 
career counseling to the criteria that the Secretary will take 
into account when prioritizing grants to LEAs. (10 minutes)
    11. Bonamici (OR): Clarifies the reporting requirements of 
State entities by asking State entities to include, to the 
extent known, whether efforts to share best and promising 
practices between charter schools and other schools led to the 
adoption and implementation of best practices by such other 
public schools. (10 minutes)
    12. Sanchez, Loretta (CA): Requires State entities to 
report on how they have worked with funded charter schools to 
foster community involvement. (10 minutes)

 SUMMARY OF THE AMENDMENT TO H.R. 4438 IN PART B CONSIDERED AS ADOPTED

    Inserts PAYGO scorecard language.

          PART A--TEXT OF AMENDMENTS TO H.R. 10 MADE IN ORDER

 1. An Amendment To Be Offered by Representative Kline of Minnesota or 
                 His Designee, Debatable for 10 Minutes

  Page 4, beginning line 15, strike ``limited English 
proficient students'' and insert ``English learners''.
  Page 10, beginning line 1, amend subparagraph (B) to read as 
follows:
                  ``(B) prior to the start of the final year of 
                the grant period of each grant awarded under 
                this section to a State entity, review whether 
                the State entity is using the grant funds for 
                the agreed upon uses of funds and whether the 
                full amount of the grant will be needed for the 
                remainder of the grant period and may, as 
                determined necessary based on that review, 
                terminate or reduce the amount of the grant and 
                reallocate the remaining grant funds to other 
                State entities during the succeeding grant 
                competition under this section.''.
  Page 11, beginning line 5, amend paragraph (1) to read as 
follows:
          ``(1) Grants.--The Secretary shall not award a grant 
        to a State entity under this section in a case in which 
        such award would result in more than 1 grant awarded 
        under this section being carried out in a State at the 
        same time.''.
  Page 14, line 14, insert ``, including supporting the use of 
charter schools to improve, or in turning around, struggling 
schools'' after ``improvement''.
  Page 14, line 18, insert ``including through the use of fair 
disciplinary practices'' after ``retention''.
  Page 19, line 16, strike ``(1)(A)(x)'' and insert 
``(1)(A)(xi)''.
  Page 20, line 8, strike ``(vii) and (viii)'' and insert 
``(viii) and (ix)''.
  Page 20, line 22, strike ``and student'' and insert ``, 
student''.
  Page 20, line 23, insert ``, and rates of student attrition'' 
after ``growth''.
  Page 21, line 17, strike ``make'' and insert ``makes''.
  Page 22, line 2, insert before the period at the end the 
following: ``, except that such data shall not be made publicly 
available in a case in which the number of students in a group 
is insufficient to yield statistically reliable information or 
the results would reveal personally identifiable information 
about an individual student''.
  Page 42, line 13, strike ``(4)(C)'' and insert ``(4)(B)''.
  Page 42, line 21, strike ``(4)(C)'' and insert ``(4)(B)''.
  Page 42, beginning line 21, strike ``give priority to each 
such eligible applicant that'' and inserting ``take into 
consideration whether such an eligible applicant''.
  Page 49, line 17, insert ``or permitted'' after ``required''.
                              ----------                              


2. An Amendment To Be Offered by Representative Cassidy of Louisiana or 
                 His Designee, Debatable for 10 Minutes

  Page 6, after line 17, insert the following:
  ``(d) GAO Report.--Not later than 3 years after the date of 
enactment of the Success and Opportunity through Quality 
Charter Schools Act, the Comptroller General of the United 
States shall submit a report to the Secretary and Congress 
that--
          ``(1) examines whether the funds authorized to be 
        reserved by State entities for administrative costs 
        under section 5203(b)(1)(C) is appropriate; and
          ``(2) if determined not to be appropriate, makes 
        recommendations on the appropriate reservation of 
        funding for such administrative costs.''.
                              ----------                              


 3. An Amendment To Be Offered by Representative Castor of Florida or 
                 Her Designee, Debatable for 10 Minutes

  Page 6, after line 17, insert the following:
  ``(d) Conflicts of Interest.--The Secretary shall develop and 
enforce conflict of interest guidelines for any charter school 
receiving assistance under this subpart, which shall include 
disclosures of any person affiliated with the charter school 
that has a financial interest in the charter school.''.
                              ----------                              


 4. An Amendment To Be Offered by Representative Moore of Wisconsin or 
                 His Designee, Debatable for 10 Minutes

  Page 8, line 1, strike ``7 percent'' and insert ``5 
percent''.
  Page 8, line 3, strike ``and''.
  Page 8, line 6, strike the period at the end and insert ``; 
and''.
  Page 8, after line 6, insert the following:
                  ``(D) reserve not less than 2 percent of such 
                funds for oversight of the use of public funds 
                (which shall cover Federal, State, and local 
                funds) and private funds by each public 
                chartering agency in the State of the State 
                entity for each charter school authorized by 
                such agency, by each local educational agency 
                in the State for each charter school served by 
                such agency, and by the State as a whole for 
                each charter school in the State, which shall 
                include the investigation of fraud, waste, 
                mismanagement and misconduct, including 
                monitoring the annual filing and public 
                reporting of independently audited financial 
                statements (including disclosure of amount and 
                duration of any Federal, State, and local, and 
                private financial and in-kind contributions of 
                support, and expenditures of such support).''.
                              ----------                              


 5. An Amendment To Be Offered by Representative Bass of California or 
                 Her Designee, Debatable for 10 Minutes

  Page 14, line 16, insert ``, including eliminating any 
barriers to enrollment for foster youth or unaccompanied 
homeless youth,'' after ``students''.
                              ----------                              


 6. An Amendment To Be Offered by Representative Messer of Indiana or 
                 His Designee, Debatable for 10 Minutes

  Page 16, line 7, strike ``and''.
  Page 16, line 13, insert ``and'' at the end.
  Page 16, after line 13, insert the following:
                          ``(xv) will work with eligible 
                        applicants receiving a subgrant under 
                        the State entity's program to support 
                        the opening of charter schools or 
                        charter school models described in 
                        clause (i) that are secondary 
                        schools;''.
                              ----------                              


 7. An Amendment To Be Offered by Representative Grayson of Florida or 
                 His Designee, Debatable for 10 Minutes

  Page 20, line 22, strike ``and student'' and insert ``, 
student''.
  Page 20, line 23, insert before the semicolon at the end the 
following: ``, and student retention rates''.
                              ----------                              


8. An Amendment To Be Offered by Representative Jackson Lee of Texas or 
                 Her Designee, Debatable for 10 Minutes

  Page 21, line 15, strike ``and''.
  Page 22, line 2, strike the period at the end and insert ``; 
and''.
  Page 22, after line 2, insert the following:
                  ``(H) the State entity will ensure that 
                charter schools and local educational agencies 
                serving charter schools post on their websites 
                materials with respect to charter school 
                student recruitment, student orientation, 
                enrollment criteria, student discipline 
                policies, behavior codes, and parent contract 
                requirements, including any financial 
                obligations (such as fees for tutoring or 
                extracurricular activity).''.
                              ----------                              


 9. An Amendment To Be Offered by Representative Wilson of Florida or 
                 Her Designee, Debatable for 10 Minutes

  Page 21, beginning line 16, amend subparagraph (G) to read as 
follows:
                  ``(G) The State entity will ensure that each 
                charter school in the State makes publicly 
                available, consistent with the dissemination 
                requirements of the annual State report card, 
                information to help parents make informed 
                decisions about the education options available 
                to their children, including information for 
                each school on--
                          ``(i) the educational program;
                          ``(ii) student support services;
                          ``(iii) annual performance and 
                        enrollment data, disaggregated by the 
                        groups of students described in section 
                        1111(b)(2)(C)(v)(II); and
                          ``(iv) any other information the 
                        State requires all other public schools 
                        to report for purposes of section 
                        1111(h)(1)(D).''.
                              ----------                              


  10. An Amendment To Be Offered by Representative Langevin of Rhode 
            Island or His Designee, Debatable for 10 Minutes

  Page 25, line 10, strike ``or dropout'' and inserting ``, 
dropout''.
  Page 25, line 11, insert before the period at the end the 
following: ``, or comprehensive career counseling practices''.
                              ----------                              


11. An Amendment To Be Offered by Representative Bonamici of Oregon or 
                 Her Designee, Debatable for 10 Minutes

  Page 26, line 20, insert before the semicolon at the end the 
following: ``, including how the State entity met the objective 
of sharing best and promising practices described in subsection 
(e)(1)(A)(x) in areas such as instruction, professional 
development, curricula development, and operations between 
charter schools and other public schools, and the extent to 
which, if known, such practices were adopted and implemented by 
such other public schools;''.
                              ----------                              


12. An Amendment To Be Offered by Representative Sanchez of California 
               or Her Designee, Debatable for 10 Minutes

    Page 27, line 3, strike ``and''.
    Page 27, line 10, strike the period at the end and insert 
``; and''.
    Page 27, after line 10, insert the following:
    ``(7) how the State entity has worked with charter schools 
receiving funds under the State entity's program to foster 
community involvement in the planning for and opening of such 
schools.''.
                              ----------                              


    PART B--TEXT OF THE AMENDMENT TO H.R. 4438 CONSIDERED AS ADOPTED

SEC. 3. PAYGO SCORECARD

    (a) PAYGO Scorecard.--The budgetary effects of this Act 
shall not be entered on either PAYGO scorecard maintained 
pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 
2010.
    (b) Senate PAYGO Scorecard.--The budgetary effects of this 
Act shall not be entered on any PAYGO scorecard maintained for 
purposes of section 201 of S. Con. Res. 21 (110th Congress).