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<bill bill-stage="Introduced-in-House" bill-type="olc" dms-id="HD0A42E2B883D491CACC0A06906F30500" public-private="public">
<metadata xmlns:dc="http://purl.org/dc/elements/1.1/">
<dublinCore>
<dc:title>110 HR 2904 IH: Charter School Program Enhancement Act
</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2007-06-28</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
</dublinCore>
</metadata>
	<form>
		<distribution-code display="yes">I</distribution-code>
		<congress>110th CONGRESS</congress>
		<session>1st Session</session>
		<legis-num>H. R. 2904</legis-num>
		<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber>
		<action>
			<action-date date="20070628">June 28, 2007</action-date>
			<action-desc><sponsor name-id="B001255">Mr. Boustany</sponsor> (for
			 himself, <cosponsor name-id="M000508">Mr. McKeon</cosponsor>,
			 <cosponsor name-id="C000243">Mr. Castle</cosponsor>,
			 <cosponsor name-id="H000676">Mr. Hoekstra</cosponsor>,
			 <cosponsor name-id="M000309">Mrs. McCarthy of New York</cosponsor>, and
			 <cosponsor name-id="F000449">Mr. Fortuño</cosponsor>) introduced the following
			 bill; which was referred to the <committee-name committee-id="HED00">Committee
			 on Education and Labor</committee-name></action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title>To amend the Elementary and Secondary Education Act of
		  1965 to reauthorize the laws relating to public charter schools to improve
		  academic achievement of all students.</official-title>
	</form>
	<legis-body id="H1E7C141A7D8B434BA51531357CA9A025" style="OLC">
		<section id="H696BC5F5C38E4157A9C6B3A58BEE3DAE" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the
			 <quote><short-title>Charter School Program Enhancement Act
			 of 2007.</short-title></quote>.</text>
		</section><section id="HEC149C6024EB41C7BD87DA7D809E3403"><enum>2.</enum><header>Charter schools
			 program</header>
			<subsection id="H1312AE49A89141A5B3F5C25C7546AD2"><enum>(a)</enum><header>Purpose</header><text>Section
			 5201 of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7221">20 U.S.C. 7221</external-xref>) is
			 amended—</text>
				<paragraph id="H1FEAA70F53A74F84A039009948AF62F1"><enum>(1)</enum><text>in the matter
			 preceding paragraph (1) by striking <quote>to increase national understanding
			 of the charter schools model by—</quote> and inserting <quote>to support the
			 Nation’s charter schools in increasing the academic achievement of students,
			 by—</quote>;</text>
				</paragraph><paragraph id="HC414BD2E9AB349CEA846677F839D37E4"><enum>(2)</enum><text>in paragraph
			 (3)—</text>
					<subparagraph id="HA6A76155AA3C435490F0F3CAE326C315"><enum>(A)</enum><text>by inserting
			 before the semicolon the following: <quote>, especially those students that
			 attend schools that have been identified as in need of improvement</quote>;
			 and</text>
					</subparagraph><subparagraph id="HC96AF0DF9D5A44009C74A46BE15D5FB3"><enum>(B)</enum><text>by striking
			 <quote>and</quote> at the end;</text>
					</subparagraph></paragraph><paragraph id="H1E14E3BA05954FF99BE53207A99568B7"><enum>(3)</enum><text>by redesignating
			 paragraph (4) as (6); and</text>
				</paragraph><paragraph id="H27F15AF425544F76BC60A7285E692B3E"><enum>(4)</enum><text>by inserting after
			 paragraph (3) the following:</text>
					<quoted-block display-inline="no-display-inline" id="HA14151731EC541A2BE2838554DF94921" style="OLC">
						<paragraph id="H4419D46917E04B56907EDC05D2D9B728"><enum>(4)</enum><text>encouraging the
				replication of successful charter school models;</text>
						</paragraph><paragraph id="H5A2ACC4C8C2845F800EFB5B5D580287"><enum>(5)</enum><text>disseminating
				charter school innovations throughout public education;
				and</text>
						</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection id="H9A0F0F4BAE944202A483C51BF3746C05"><enum>(b)</enum><header>Program
			 authorized</header><text>Section 5202 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7221a">20 U.S.C. 7221a</external-xref>) is
			 amended—</text>
				<paragraph id="H30C24581FA864398BF3C80CA7DE2D2B"><enum>(1)</enum><text>in
			 subsection (a) by inserting after <quote>State educational agencies</quote> the
			 following: <quote>and authorized public chartering agencies</quote>;</text>
				</paragraph><paragraph id="HCF0E1767570842FCBEACED285CE10FE"><enum>(2)</enum><text>in
			 subsection (b) by striking <quote>5203(c)</quote> and inserting
			 <quote>5203(d)</quote>;</text>
				</paragraph><paragraph id="HCEF133AC8C6C44E8AC40AB2BC7B4D6B"><enum>(3)</enum><text>in
			 subsection (c)—</text>
					<subparagraph id="H886D2714E0074AB7A2E7898C770073C3"><enum>(A)</enum><text>in paragraph
			 (1)—</text>
						<clause id="HE72E482A16D04E95ACEB6FE66E46342"><enum>(i)</enum><text>by
			 striking <quote>under this section</quote> and inserting <quote>or authorized
			 public chartering agencies under this section</quote>; and</text>
						</clause><clause id="H40D5FFCB796044A1B79B3BBF537500B2"><enum>(ii)</enum><text>by
			 striking <quote>3 years</quote> and inserting <quote>5 years</quote>;
			 and</text>
						</clause></subparagraph><subparagraph id="HF59407A3AB484E4C8525D015B9C3242F"><enum>(B)</enum><text>by amending
			 paragraph (2) to read as follows:</text>
						<quoted-block display-inline="no-display-inline" id="H186CA121DB91438200BEE2EF874B497E" style="OLC">
							<paragraph id="HCF5FD189A04B43668CB487B322094813"><enum>(2)</enum><header>Grants to
				eligible applicants</header><text>Grants awarded by the Secretary to eligible
				applicants under subsection (b) or subgrants awarded by State educational
				agencies or authorized public chartering agencies to eligible applicants under
				section 5204(g)(1) shall be for a period of not more than 3 years. The eligible
				applicant shall use a portion of that period for planning and program design
				and a portion for the initial implementation of a charter
				school.</text>
							</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
					</subparagraph></paragraph><paragraph id="HBAD248B085AC4166B63C3E3350F0C81"><enum>(4)</enum><text>by
			 striking subsection (d);</text>
				</paragraph><paragraph id="H7B6CFEE8C6234C0D8F48C01C003826EC"><enum>(5)</enum><text>by redesignating
			 subsections (e) and (f) as (d) and (e), respectively;</text>
				</paragraph><paragraph id="H75B29A298CB1426FB4AFF97122A8ED08"><enum>(6)</enum><text>in subsection (d)
			 (as so redesignated)—</text>
					<subparagraph id="H5E46BD9093DB43E7A21BB702959F4DC7"><enum>(A)</enum><text>by amending
			 paragraph (1) to read as follows:</text>
						<quoted-block display-inline="no-display-inline" id="HBDDC15DE0B06464E9D3E32144D0029FD" style="OLC">
							<paragraph id="H72A4A52107A34B1A917C91E4B8A7862D"><enum>(1)</enum><header>In
				general</header><text display-inline="yes-display-inline">In awarding grants
				under this subpart from any funds appropriated under section 5211 (other than
				funds reserved to carry out section 5205(b)), the Secretary shall—</text>
								<subparagraph id="HA173BC8ABB2E45C680AE5B2799353BD9"><enum>(A)</enum><text display-inline="yes-display-inline">exclude applications from a State to the
				extent the State has laws that meet the criteria described in paragraph (4),
				unless the application demonstrates that such laws do not stifle growth of
				charter schools or limit parental options; and</text>
								</subparagraph><subparagraph id="H41225B6D25DF499EB2B0A971FB18EE43"><enum>(B)</enum><text display-inline="yes-display-inline">give priority to States to the extent that
				the States meet the criteria described in paragraph (2) and one or more of the
				criteria described in paragraph
				(3).</text>
								</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
					</subparagraph><subparagraph id="H35EE2C14BCF241BDBCF66C71D4D9D9E"><enum>(B)</enum><text>in paragraph
			 (2)—</text>
						<clause id="HB8132717785B4F02B5639E6E27CEF56E"><enum>(i)</enum><text>by
			 striking <quote>paragraph (1)</quote> and inserting <quote>paragraph
			 (1)(B)</quote>;</text>
						</clause><clause id="HC575D8FE5AB34B5CBFB6A88007FD1096"><enum>(ii)</enum><text>by
			 striking <quote>periodic</quote> and inserting <quote>annual</quote>;
			 and</text>
						</clause><clause id="HA41209D3830E481CA8D9F1D2754E3CB2"><enum>(iii)</enum><text>by
			 striking <quote>, at least once every five years unless required more
			 frequently by State law,</quote>;</text>
						</clause></subparagraph><subparagraph id="H998B174FB7FD4C11B938B9A611E06200"><enum>(C)</enum><text>in paragraph
			 (3)—</text>
						<clause id="H7C1E18EC2F9249BD8025C138BD12F6B"><enum>(i)</enum><text>by
			 striking <quote>paragraph (1)</quote> and inserting <quote>paragraph
			 (1)(B)</quote>;</text>
						</clause><clause id="H06930B4A416046169BE85505E785478"><enum>(ii)</enum><text>in
			 subparagraph (A) by inserting after <quote>State educational agency</quote> the
			 following: <quote>, authorized public chartering agency,</quote>; and</text>
						</clause><clause id="H0EBD9DC06CCB4C9B8C183E6BEF3EDC1D"><enum>(iii)</enum><text>by
			 striking subparagraphs (B) and (C) and inserting the following:</text>
							<quoted-block display-inline="no-display-inline" id="H7848061205494FA7A07B8D6663584100" style="OLC">
								<subparagraph id="H4A96AE311C8741758505CF23B7DC888D"><enum>(B)</enum><text display-inline="yes-display-inline">The State provides for one authorized
				public chartering agency that is not a local educational agency, such as a
				State chartering board, for each individual or entity seeking to operate a
				charter school pursuant to such State law.</text>
								</subparagraph><subparagraph id="H4191443B2E93497E94323B87ABE45FDA"><enum>(C)</enum><text>The State allows
				for an appeals process for the denial of an application for a charter school.</text>
								</subparagraph><subparagraph id="H195FB15C331743598DCF00C9A836B2E0"><enum>(D)</enum><text>The State ensures
				that each charter school has a high degree of autonomy over the charter
				school's budgets and expenditures and an independent governing board that
				enters into a written performance contract with an authorized public chartering
				agency.</text>
								</subparagraph><subparagraph id="H45E869C027F6491099197C943932C2BE"><enum>(E)</enum><text>The State provides
				public charter schools with funding commensurate with that provided to other
				public schools, including provision for school facilities, and ensures that
				local educational agencies send to public charter schools the Federal, State,
				and local dollars to which they are entitled in a timely manner.</text>
								</subparagraph><subparagraph id="H7B2336F2D0374BCEB4FDD5B9A8303FA1"><enum>(F)</enum><text>The State makes it
				a priority to create charter schools in districts or geographical areas with
				large numbers of schools designated as in need of improvement.</text>
								</subparagraph><subparagraph id="H2527A67BEF7E47C58C75DBEB6BD8A8EA"><enum>(G)</enum><text>The State
				demonstrates that a high percentage of its charter school students are either
				achieving at or above the proficient level or making sufficient progress toward
				proficient levels on the State reading or language arts, and mathematics,
				assessments administered under section
				1111(b)(3).</text>
								</subparagraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
						</clause></subparagraph><subparagraph id="HA6989F7B071A4386AEB70090179F134F"><enum>(D)</enum><text>by adding at the
			 end the following:</text>
						<quoted-block display-inline="no-display-inline" id="H507BA2F162494BFEAF2307F1BB7D8653" style="OLC">
							<paragraph id="HB49E0F6413194835B1C3C1EF32412CE"><enum>(4)</enum><header>Exclusion
				criteria</header><text>The criteria referred to in paragraph (1)(A) are the
				following:</text>
								<subparagraph id="H047320BE404D41BABCF1AA4F50570119"><enum>(A)</enum><text display-inline="yes-display-inline">The laws limit the number of charter
				schools in the State.</text>
								</subparagraph><subparagraph id="H939B6F9683B54DC98F5B2C9C96109380"><enum>(B)</enum><text>The laws limit the
				number of new charter schools per year.</text>
								</subparagraph><subparagraph id="HC06C082BA33645D49BEFDDAF025BFE17"><enum>(C)</enum><text>The laws limit the
				number of start-up charter schools.</text>
								</subparagraph><subparagraph id="H7429D53FA2D847E7B46CF56625F9F27"><enum>(D)</enum><text>The laws limit the
				number of charter schools per approved authorizer.</text>
								</subparagraph><subparagraph id="HCCBC92C214AA4B34A47541006B38B472"><enum>(E)</enum><text>The laws limit the
				number or percentages of students who may attend a charter school.</text>
								</subparagraph><subparagraph id="H1A2E1A1F21D64F8BB171D0A85D7E5505"><enum>(F)</enum><text>The laws limit the
				number or percentages of a State’s student population who may attend a charter
				school.</text>
								</subparagraph><subparagraph id="H97901DE107EE41B1AF4F389F8DFBCB45"><enum>(G)</enum><text>The laws limit the
				percentage of a school district’s budget allocated to charter schools.</text>
								</subparagraph><subparagraph id="H880448E7BBE8494895D4AA6C03946FEC"><enum>(H)</enum><text>The laws limit, in
				any other way the Secretary considers material, the ability of the State to use
				charter schools to serve students in the
				State.</text>
								</subparagraph></paragraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</subparagraph></paragraph><paragraph id="H7B0FD832C5E545E6A9EC38F823C83FD9"><enum>(7)</enum><text>in subsection (e)
			 (as so redesignated)—</text>
					<subparagraph id="H173C8480391447A1B6247D9787E7DFAA"><enum>(A)</enum><text>by striking
			 <quote>subpart</quote> and inserting <quote>section</quote>;</text>
					</subparagraph><subparagraph id="HEF993CCF970948FA00C5A57920231F3B"><enum>(B)</enum><text>by inserting after
			 <quote>State educational agency</quote> the following: <quote>or authorized
			 public chartering agency</quote>;</text>
					</subparagraph><subparagraph id="HF6183801268B4543BF96A5D703E133A2"><enum>(C)</enum><text>by striking
			 <quote>take into consideration</quote> and inserting <quote>consider</quote>;
			 and</text>
					</subparagraph><subparagraph id="H76DC3352D74E4DA4A500BE200C883BA"><enum>(D)</enum><text>by inserting before
			 the period at the end the following: <quote>and the number of subgrants the
			 Secretary believes the State educational agency or authorized public chartering
			 agency would be able to make</quote>.</text>
					</subparagraph></paragraph></subsection><subsection id="H1A2D948BF44F4556BD9792009B039EDB"><enum>(c)</enum><header>Applications</header><text>Section
			 5203 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7221b">20 U.S.C. 7221b</external-xref>) is amended—</text>
				<paragraph id="H597C09102949454380CC8B1553A243F0"><enum>(1)</enum><text>in subsection (a)
			 by striking <quote>may require</quote> and inserting <quote>may reasonably
			 require</quote>;</text>
				</paragraph><paragraph id="H8996D4855CD84B0B9EC8CBE4179E95F"><enum>(2)</enum><text>in
			 subsection (b)—</text>
					<subparagraph id="HCE897C2FB8C14152B1FF7887CD016116"><enum>(A)</enum><text>in paragraph (1)
			 by striking <quote>and</quote> at the end;</text>
					</subparagraph><subparagraph id="HA550A74A5FB94B26BA96058E25C979BA"><enum>(B)</enum><text>in paragraph (2)
			 by striking <quote>and</quote> at the end;</text>
					</subparagraph><subparagraph id="HC26F2EA7FBBD457DBCD543EF55C268EC"><enum>(C)</enum><text>by redesignating
			 paragraph (3) as (4);</text>
					</subparagraph><subparagraph id="H683353D4BE6C41C2A34F1977D3403210"><enum>(D)</enum><text>by inserting after
			 paragraph (2) the following:</text>
						<quoted-block display-inline="no-display-inline" id="H73298C04E13642639157C4F6AD7CE0A8" style="OLC">
							<paragraph id="HD6A347AADF88400FA5CCD6A395ED06E5"><enum>(3)</enum><text>describe the
				criteria that the eligible entity will use to award subgrants to eligible
				applicants to ensure high-quality charter schools;
				and</text>
							</paragraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</subparagraph><subparagraph id="H549F0C064BCC471A954117FA46915091"><enum>(E)</enum><text>in paragraph (4)
			 (as so redesignated)—</text>
						<clause id="H7F4DD1260D9F401EB91B8123777E947B"><enum>(i)</enum><text>in
			 subparagraph (F) by striking <quote>authorized public chartering agency will
			 provide for continued operation</quote> and inserting <quote>State educational
			 agency will provide for continued funding</quote>;</text>
						</clause><clause id="HA5329B4C5F5A413D83A34FCED8D704C9"><enum>(ii)</enum><text>by
			 redesignating subparagraphs (G) through (M), and subparagraph (N), as (H)
			 through (N), and (Q), respectively;</text>
						</clause><clause id="HA8F13824E366439DBD8EFC9EBC792896"><enum>(iii)</enum><text>by
			 inserting after subparagraph (F) the following:</text>
							<quoted-block display-inline="no-display-inline" id="H71904D539C98442899E48519D6DB7F84" style="OLC">
								<subparagraph id="HDA4E78E54AD04395A8C668B9E4F959DA"><enum>(G)</enum><text>a description of
				how the State educational agency will ensure that the creation of charter
				schools are targeted toward those districts or geographical areas with a large
				number of schools designated as in need of
				improvement;</text>
								</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
						</clause><clause id="H1C2D94B2CD164B8CB3262C5446A277A7"><enum>(iv)</enum><text>in
			 subparagraph (I) (as so redesignated) by inserting before the semicolon at the
			 end the following: <quote>and how such funds will be used for planning and
			 program design and for the initial implementation of a charter
			 school</quote>;</text>
						</clause><clause id="HFB4316C9B7CF4B0181A3F2BC81FE9E"><enum>(v)</enum><text>in
			 subparagraph (J)(ii) (as so redesignated) by inserting before the semicolon at
			 the end the following: <quote>, including a description of how the eligible
			 applicant will hold a lottery if the number of applicants exceeds the number of
			 seats available</quote>;</text>
						</clause><clause id="H712720352F6448BBA4F6007D015C16C0"><enum>(vi)</enum><text>in
			 subparagraph (N) (as so redesignated)—</text>
							<subclause id="H7C7D17BC52574867895D8350A2A1BBEE"><enum>(I)</enum><text>by striking
			 <quote>under section 5202(c)(2)(C)</quote> and inserting <quote>as described in
			 section 5204(g)(6)</quote>; and</text>
							</subclause><subclause id="H8C980D23263E46B3897C9F75E3BD4B6F"><enum>(II)</enum><text>by striking
			 <quote>and</quote> at the end; and</text>
							</subclause></clause><clause id="HD45A6CC2EC64463B9E65473BD000EA7F"><enum>(vii)</enum><text>by
			 inserting after subparagraph (N) (as so redesignated) the following:</text>
							<quoted-block display-inline="no-display-inline" id="HE9A506343F9049DC91894928FE1EDDD4" style="OLC">
								<subparagraph id="HA641A808D12B441EA3F5C8F476E1B289"><enum>(O)</enum><text display-inline="yes-display-inline">information demonstrating support of the
				application from the State’s charter school community;</text>
								</subparagraph><subparagraph id="H0C25606105A14C8AA1AA498DEC3D06D8"><enum>(P)</enum><text>a description of
				how the State encourages the inclusion, on independent governing boards,
				including those overseeing multi-campus charters, individuals with a diversity
				of skills, including business management, financial management, real estate
				finance, and curriculum and instruction;
				and</text>
								</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
						</clause></subparagraph></paragraph><paragraph id="HE5F8BFEBBE0C403793BEE5595C00D093"><enum>(3)</enum><text>by redesignating
			 subsections (c) and (d) as (d) and (e), respectively;</text>
				</paragraph><paragraph id="H68598A202AE34E54AE42BF22E8246189"><enum>(4)</enum><text>by inserting after
			 subsection (b) the following:</text>
					<quoted-block display-inline="no-display-inline" id="HE9DE6D5B68CB47EA9B1F1F62B2B3FFCF" style="OLC">
						<subsection id="H70F2AEC59FFC48CBA5DA92003D736E3D"><enum>(c)</enum><header>Authorized
				public chartering agency’s application</header>
							<paragraph id="H19BCE67B7C83432A9DF2589EBB98C730"><enum>(1)</enum><header>In
				general</header><text>Each authorized public chartering agency desiring a grant
				under section 5202(a) shall submit an application to the Secretary at such
				time, in such manner, and accompanied by such information as the Secretary may
				reasonably require.</text>
							</paragraph><paragraph id="H644521646B964223B752A91AB73FFF8"><enum>(2)</enum><header>Contents</header><text>Each
				application submitted pursuant to paragraph (1) shall contain the information
				and assurances described in subsection (b), as appropriately applied to
				authorized public chartering agencies.</text>
							</paragraph></subsection><after-quoted-block>;
				and</after-quoted-block></quoted-block>
				</paragraph><paragraph id="H703E77536C154BF7A2481367F2172093"><enum>(5)</enum><text>in subsection (e)
			 (as so redesignated)—</text>
					<subparagraph id="H64220358AC4E464CAE079EC594C6A551"><enum>(A)</enum><text>in the matter
			 preceding paragraph (1) by striking <quote>subsection (c)</quote> and inserting
			 <quote>subsection (d)</quote>;</text>
					</subparagraph><subparagraph id="H6DC7FEBF5D4F49D4A24F008172DE066D"><enum>(B)</enum><text>in paragraph
			 (1)—</text>
						<clause id="HE708ABF93DE74B0B90F117768748537E"><enum>(i)</enum><text>by
			 striking <quote>(A) through (N)</quote> and inserting <quote>(A) through
			 (Q)</quote>; and</text>
						</clause><clause id="H57E1864636BD46F1B35C7900F38A277"><enum>(ii)</enum><text>by
			 striking <quote>(J), (K), and (N)</quote> and inserting <quote>(K), (L), and
			 (Q)</quote>; and</text>
						</clause></subparagraph><subparagraph id="H81A9C6D733BE4F239483C6DF3047D572"><enum>(C)</enum><text>in paragraph
			 (2)(B) by striking <quote>5204(e)</quote> and inserting
			 <quote>5204(f)</quote>.</text>
					</subparagraph></paragraph></subsection><subsection id="HC3D354AEC2F745309C2B92BBFAD90079"><enum>(d)</enum><header>Administration</header><text>Section
			 5204 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7221c">20 U.S.C. 7221c</external-xref>) is amended—</text>
				<paragraph id="HED0E6FBDA83C4333A47ED18583340553"><enum>(1)</enum><text>in subsection
			 (a)(7) by striking <quote>(f)(6)(B)</quote> and inserting
			 <quote>(g)(6)(B)</quote>;</text>
				</paragraph><paragraph id="H335DD070DA2A4CD092A0DC7E84A145EB"><enum>(2)</enum><text>by striking
			 subsection (g);</text>
				</paragraph><paragraph id="H6F1447138558446EB63C506D4C7BB08"><enum>(3)</enum><text>by
			 redesignating subsections (b) through (f) as (c) through (g),
			 respectively;</text>
				</paragraph><paragraph id="H6B5574609097430991CEBD1CF8D098F"><enum>(4)</enum><text>by
			 inserting after subsection (a) the following:</text>
					<quoted-block display-inline="no-display-inline" id="H30DF957404194F138E6EA163C45152A8" style="OLC">
						<subsection id="HAFF15AD660E847DDA29671D63B3DAAE8"><enum>(b)</enum><header>Selection
				criteria for authorized public chartering agencies</header>
							<paragraph id="H67CCF09CECA542E89200ADFDC5A82BA5"><enum>(1)</enum><header>In
				general</header><text>The Secretary shall award grants to authorized public
				chartering agencies under this subpart on the basis of the quality of the
				applications submitted under section 5203(c), after considering such factors
				as—</text>
								<subparagraph id="H781F2E4B94F7457FA8DC81DBEAFF6F8D"><enum>(A)</enum><text>the contribution
				that a proposed grant will make to assisting educationally disadvantaged and
				other students in meeting State academic content standards and State student
				academic achievement standards;</text>
								</subparagraph><subparagraph id="HF2A4205143314BF7AD4FEF8E4E37D243"><enum>(B)</enum><text>the degree of
				flexibility afforded by the State educational agency to charter schools under
				the State's charter school law;</text>
								</subparagraph><subparagraph id="H2ECD8F5C88EB4B68A18742B00F98966"><enum>(C)</enum><text>the ambitiousness
				of the objectives for the proposed project;</text>
								</subparagraph><subparagraph id="H48880337610347CEAA85AFFFC4648365"><enum>(D)</enum><text>the quality of the
				strategy for assessing achievement of those objectives;</text>
								</subparagraph><subparagraph id="H98059688EB2741C396EABEEAFAF82934"><enum>(E)</enum><text>the likelihood
				that the proposed grant will meet those objectives and improve educational
				results for students;</text>
								</subparagraph><subparagraph id="HC9FBDA73166941DFAA10E9082438305B"><enum>(F)</enum><text>the number of
				high-quality charter schools created under this subpart by the agency; and</text>
								</subparagraph><subparagraph id="H67051EBD1893401B8BAA00FAEA00DA63"><enum>(G)</enum><text>in the case of an
				authorized public chartering agency that proposes to use grant funds to support
				dissemination activities under subsection (g)(6)(B), the quality of those
				activities and the likelihood that those activities will improve student
				academic achievement.</text>
								</subparagraph></paragraph><paragraph id="HEC7ED0F59D094A9589DD464B95C0035"><enum>(2)</enum><header>Requirements</header><text>The
				Secretary may award a grant to an authorized public chartering agency only if
				the Secretary determines that—</text>
								<subparagraph id="H93AA173993F0424B8DDA1F15E4DF5D92"><enum>(A)</enum><text>the agency has the
				capacity to make subgrants effectively; and</text>
								</subparagraph><subparagraph id="HD89ACA9862264D3CAEAE8DE5820FE44"><enum>(B)</enum><text>making the grant
				would benefit charter schools in the
				State.</text>
								</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
				</paragraph><paragraph id="H460E680201B74DBBBBC897C3CA4006D"><enum>(5)</enum><text>in
			 subsection (c) (as so redesignated)——</text>
					<subparagraph id="H58387F3B5A8547298FFA5E789E1C07F8"><enum>(A)</enum><text>in the matter
			 preceding paragraph (1) by striking <quote>5203(c)</quote> and inserting
			 <quote>5203(d)</quote>;</text>
					</subparagraph><subparagraph id="H8F470018A18A4643B553A6DC036CBD63"><enum>(B)</enum><text>by striking
			 paragraph (4) and inserting the following:</text>
						<quoted-block display-inline="no-display-inline" id="H44CB02B93D474DB7A82BFF35E07C052C" style="OLC">
							<paragraph id="H1DC9C3E8F70245F1AC9781BD7BD22B6B"><enum>(4)</enum><text display-inline="yes-display-inline">the objectives for the charter school and a
				description of how such objectives will be fulfilled, including steps taken by
				the charter school to include teachers, parents, and communities in fulfilling
				the objectives;</text>
							</paragraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</subparagraph><subparagraph id="H66EFFBAC800644F28147FCBAE27486B"><enum>(C)</enum><text>in paragraph (7) by
			 striking <quote>(f)(6)(B)</quote> and inserting
			 <quote>(g)(6)(B)</quote>;</text>
					</subparagraph></paragraph><paragraph id="H602EBE398DC94F6900F13ECD243C148E"><enum>(6)</enum><text>in subsection (d)
			 (as so redesignated) by inserting after <quote>State educational agency</quote>
			 the following: <quote>or authorized public chartering agency</quote>;</text>
				</paragraph><paragraph id="HCF8FC195740347789DD0E7444E68F6FA"><enum>(7)</enum><text display-inline="yes-display-inline">in subsection (e) (as so
			 redesignated)—</text>
					<subparagraph id="HE762A9E3C3124ABD8B4FDBBB6362CE50"><enum>(A)</enum><text>in the matter
			 preceding paragraph (1) by inserting after <quote>State educational
			 agency</quote> the following: <quote>or authorized public chartering
			 agency</quote>; and</text>
					</subparagraph><subparagraph id="HA2BB2B879DC6406600141100423C8E69"><enum>(B)</enum><text>in paragraph (2)
			 by striking <quote>, such as approaches designed to reduce school size</quote>;</text>
					</subparagraph></paragraph><paragraph id="HC0EDD44834F64995BE69B0C4A08FB5E1"><enum>(8)</enum><text>in subsection (g)
			 (as so redesignated)—</text>
					<subparagraph id="HEE5748FA231D49A38FA3CFFBFD850091"><enum>(A)</enum><text>by amending
			 paragraph (1) to read as follows:</text>
						<quoted-block display-inline="no-display-inline" id="H21B58A7A0B024708B6FC9E484F7CE000" style="OLC">
							<paragraph id="H7E3BF0EEF03D47E2A76E501B9D82007C"><enum>(1)</enum><header>State
				educational agencies and authorized public chartering agencies</header><text display-inline="yes-display-inline">Each State educational agency or authorized
				public chartering agency receiving a grant under this subpart shall use such
				grant funds to award subgrants to one or more eligible applicants in the State
				to enable such applicant to plan and implement a charter school in accordance
				with this subpart, provided that most of the funds be awarded to charter school
				developers, equitably distributed among public nonprofit organizations, private
				nonprofit organizations, and groups of teachers, administrators, parents, and
				others. A State educational agency or authorized public chartering agency may
				vary the dollar amount per grant that it awards to eligible applicants based
				upon a variety of factors, including whether the eligible applicant is a
				start-up charter school or a conversion charter school and whether the eligible
				applicant is creating a charter school under a new charter or an existing
				charter.</text>
							</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
					</subparagraph><subparagraph id="HA63BDAEF28064C54B8E500C1AF83EA97"><enum>(B)</enum><text>in paragraph (2)
			 by striking <quote>or a State educational agency</quote> and inserting <quote>,
			 or from a State educational agency or authorized public chartering
			 agency,</quote>;</text>
					</subparagraph><subparagraph id="H05E2E051D85B4724897D25EE30C67B00"><enum>(C)</enum><text>in paragraph
			 (3)—</text>
						<clause id="H8CB69E6760C0440E001D7C5851ACADB6"><enum>(i)</enum><text>in
			 subparagraph (A) by striking <quote>and</quote> at the end;</text>
						</clause><clause id="H37C38A79A2154FCBB84154338E2B0769"><enum>(ii)</enum><text>in
			 subparagraph (B) by striking the period at the end and inserting <quote>;
			 and</quote>; and</text>
						</clause><clause id="H4DDFCEC785494B2690234B49B8AC276B"><enum>(iii)</enum><text>by
			 adding at the end the following:</text>
							<quoted-block display-inline="no-display-inline" id="H8F17EC121C6B4FBC8D6C91013BC0E216" style="OLC">
								<subparagraph id="H917B982828EC4D4CA7CBE8E4FFFDE93B"><enum>(C)</enum><text>dissemination
				activities as described in paragraphs (2) and
				(6).</text>
								</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
						</clause></subparagraph><subparagraph id="H427B97E517F64FC4BA73A99D30ECDAC5"><enum>(D)</enum><text>in paragraph (4)
			 by amending subparagraph (A) to read as follows:</text>
						<quoted-block display-inline="no-display-inline" id="H6E6037B511BA4B2BA4D0F6D46B008826" style="OLC">
							<subparagraph id="H811EB60E54F840F2A1343CF19C19F5C"><enum>(A)</enum><header>State educational
				agency and authorized public chartering agency administrative
				expenses</header><text display-inline="yes-display-inline">Each State
				educational agency or authorized public chartering agency receiving a grant
				pursuant to this subpart may reserve not more than 5 percent of such grant
				funds for administrative expenses associated with the charter school grant
				program assisted under this subpart.</text>
							</subparagraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</subparagraph><subparagraph id="H4650AA3B717C4DBAA4B38F26ACCEFE76"><enum>(E)</enum><text>in paragraph
			 (6)—</text>
						<clause id="HBA7A35C741EE4E64A0D154E1B20A8C6"><enum>(i)</enum><text>in
			 subparagraph (A)—</text>
							<subclause id="HDE7F80E7BC3949E0BAE5F0E731E9EFF0"><enum>(I)</enum><text>by striking
			 <quote><header-in-text level="paragraph" style="OLC">In
			 general</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Charter school</header-in-text></quote>;
			 and</text>
							</subclause><subclause id="H2861C77E325445E694FD5291BBB0000"><enum>(II)</enum><text>by striking
			 <quote>whether or not the charter school has applied for or received funds
			 under this subpart for planning, program design, or implementation,</quote>;
			 and</text>
							</subclause></clause><clause id="H2DA7DCAC4BDD4039825C0002EE62E4C6"><enum>(ii)</enum><text>by
			 adding at the end the following:</text>
							<quoted-block display-inline="no-display-inline" id="H076214849FA1499D97DF6EC2F5DA464" style="OLC">
								<subparagraph id="H8C2E8269353444A3852F28877E27CF4C"><enum>(C)</enum><header>State
				dissemination activities</header>
									<clause id="H860424091C6C4F1BB7299258088E5726"><enum>(i)</enum><header>General
				rule</header><text display-inline="yes-display-inline">A State educational
				agency or authorized public chartering agency may use funds authorized to be
				reserved for dissemination activities under paragraph (3) to make subgrants for
				dissemination activities, described in subparagraph (B), for charter schools
				described in subparagraph (A), to—</text>
										<subclause id="HF382F88EBA6744E3BB291CB5CBABED3"><enum>(I)</enum><text>eligible
				applicants; or</text>
										</subclause><subclause id="H343B9404F79C494C9E615F84708DA03D"><enum>(II)</enum><text>non-profit
				organizations that have demonstrated knowledge of, and experience with, the
				activities described in subparagraph (B).</text>
										</subclause></clause><clause id="H0D0C9CD85A3848EB9B899C52DBFB805C"><enum>(ii)</enum><header>Special
				rule</header><text>A State educational agency may also use funds authorized to
				be reserved for dissemination under paragraph (3) to make a subgrant, for
				dissemination activities described in subparagraph (B), to an authorized public
				chartering agency that does not receive a direct grant from the Secretary under
				section
				5202.</text>
									</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
						</clause></subparagraph></paragraph></subsection><subsection id="H55FEBF2FB29A466CA6EA3FAB7629000"><enum>(e)</enum><header>National
			 activities</header><text>Section 5205 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7221d">20 U.S.C. 7221d</external-xref>) is
			 amended—</text>
				<paragraph id="H03A991E72E99410486022BE08C8EB9FB"><enum>(1)</enum><text>in subsection
			 (a)—</text>
					<subparagraph id="H616D4C2DCDC44617AC76B6728819F95E"><enum>(A)</enum><text>in paragraph (1)
			 by inserting after <quote>State educational agencies</quote> the following:
			 <quote>or authorized public chartering agencies</quote>;</text>
					</subparagraph><subparagraph id="H3BD89D5CF4F64EC900981D33239299F7"><enum>(B)</enum><text>in paragraph
			 (3)(E) by inserting before the period at the end the following: <quote>,
			 authorized public chartering agencies, and charter support
			 organizations</quote>; and</text>
					</subparagraph><subparagraph id="HEF89A0F54F374CE5A2527C04D5B5C2BB"><enum>(C)</enum><text>by striking
			 paragraph (5) and inserting the following:</text>
						<quoted-block display-inline="no-display-inline" id="H03276CC52AEF4382AC00DAF155BC78E0" style="OLC">
							<paragraph id="H2D28CA13DD774D2CADFC2E19C8762EC6"><enum>(6)</enum><text display-inline="yes-display-inline">To provide technical assistance to charter
				schools on how to meet the requirements of part B of the Individuals with
				Disabilities Education
				Act.</text>
							</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
					</subparagraph></paragraph><paragraph id="H97FEC8BAE27743DF819BC471CF4C782"><enum>(2)</enum><text>in
			 subsection (b)—</text>
					<subparagraph id="H1C1D4BCE835B4790AAF154CB8E3060CB"><enum>(A)</enum><text>in paragraph
			 (2)(A) by striking <quote>subsection</quote> and all that follows through
			 <quote>the Secretary shall</quote> and inserting <quote>subpart, the Secretary
			 may</quote>;</text>
					</subparagraph><subparagraph id="H90FE7433ACA74D56BF4FC179215B0097"><enum>(B)</enum><text>in paragraph (4)
			 by striking subparagraph (B) and inserting the following:</text>
						<quoted-block display-inline="no-display-inline" id="HFC3880DF276A4563A7411C0924112554" style="OLC">
							<subparagraph id="H9819B06DE1954F04000099CCFF83E73F"><enum>(B)</enum><header>Eligibility</header><text display-inline="yes-display-inline">To be eligible to receive a grant under
				this subsection, a State shall—</text>
								<clause id="HA68FC71C91BC4F3288E14868AFF1B730"><enum>(i)</enum><text>establish or
				enhance, and administer, a per-pupil facilities aid program for charter schools
				in the State, that is specified in State law and provides annual financing, on
				a per-pupil basis, for charter school facilities; or</text>
								</clause><clause id="H664EA1AD67124C8AA5002E4800648F24"><enum>(ii)</enum><text>provide funding
				for operations, capital costs, and interest for charter schools in the State in
				an amount that, on a per-pupil basis, is commensurate with what it provides for
				those costs to public elementary and secondary schools in the
				State.</text>
								</clause></subparagraph><after-quoted-block>;
				</after-quoted-block></quoted-block>
					</subparagraph><subparagraph id="HA9602C42D8664D2B82416F8C70F412DA"><enum>(C)</enum><text>in paragraph (6)
			 by striking <quote>(A), (B), and (C) of paragraph (3), of section
			 5202(e)</quote> and inserting <quote>(A) through (G) of paragraph (3), of
			 section 5202(d)</quote>; and</text>
					</subparagraph><subparagraph id="H120C5DED53984984BF882F85249991EA"><enum>(D)</enum><text>by adding at the
			 end the following:</text>
						<quoted-block display-inline="no-display-inline" id="HBBDB0E4B4EBC4B248199030000C971C6" style="OLC">
							<paragraph id="HDE3F59C4C6434F9283CE237E3E88F68D"><enum>(7)</enum><header>Evaluations</header><text>The
				Secretary shall carry out evaluations of, technical assistance for, and
				information dissemination regarding, the per-pupil facilities aid programs. In
				carrying out the evaluations, the Secretary may carry out one or more
				evaluations of State programs assisted under this subsection, which shall, at a
				minimum, address—</text>
								<subparagraph id="H12624A8CBEC248D7AB1602652CEB9C39"><enum>(A)</enum><text>how, and the
				extent to which, the programs promote educational equity and excellence;
				and</text>
								</subparagraph><subparagraph id="H0A45EE3CE911475DAA15CEE8DCF9DE5B"><enum>(B)</enum><text>the extent to
				which charter schools supported through the programs are—</text>
									<clause id="H5EF5A7AA280C4EA0806CD12354D67C47"><enum>(i)</enum><text>held accountable
				to the public;</text>
									</clause><clause id="H5015C819A9E3410D9D5E7DB7D7832255"><enum>(ii)</enum><text>effective in
				improving public education; and</text>
									</clause><clause id="H734971736A944AB7B980BFDC0915E475"><enum>(iii)</enum><text>open and
				accessible to all students.</text>
									</clause></subparagraph></paragraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</subparagraph></paragraph><paragraph id="H88E01DAB9A5A4C5F8E8828745C9DC6A5"><enum>(3)</enum><text>by adding at the
			 end the following:</text>
					<quoted-block display-inline="no-display-inline" id="HCFC56B235C98492C9157AA5F05610014" style="OLC">
						<subsection id="HFA506BE972C94330AA9DAAA45B6ECC46"><enum>(d)</enum><header>Dissemination
				grants</header>
							<paragraph id="H5CC366CA5FD84689BCCE6250A0001D97"><enum>(1)</enum><header>In
				general</header><text display-inline="yes-display-inline">The Secretary may
				reserve not more than 7 percent of the funds appropriated under section 5211
				for any fiscal year to make grants, on a competitive basis, to State
				educational agencies, authorized public chartering agencies, local educational
				agencies, nonprofit organizations, or a consortium of charter schools, in any
				combination, for multi-State dissemination activities designed to increase the
				number of high-quality charter schools nationally by carrying out such
				activities as—</text>
								<subparagraph id="H963E4AAAC3334E099EF221BA34B42FE9"><enum>(A)</enum><text>assisting others
				with the planning and start-up of one or more new public schools, including
				charter schools;</text>
								</subparagraph><subparagraph id="H91A23BAF90F247FA9FA5803C4FB4AD6"><enum>(B)</enum><text>developing
				partnerships designed to improve student academic achievement;</text>
								</subparagraph><subparagraph id="H11C51D5F4A574A5DB8795657F6F71F30"><enum>(C)</enum><text>developing
				curriculum materials, assessments, and other materials that promote increased
				student achievement and are based on successful practices within charter
				schools;</text>
								</subparagraph><subparagraph id="H4A9DBF010E1E42C7003F1C5B8E29F4E0"><enum>(D)</enum><text>conducting
				evaluations and developing materials that document successful practices at
				charter schools and that are designed to improve student performance in other
				schools; and</text>
								</subparagraph><subparagraph id="HC5863452C3074392B73BFBD7D9270215"><enum>(E)</enum><text>training personnel
				of the adopting local educational agencies, charter schools, authorized public
				chartering agencies, and charter support organizations in the innovative
				practice developed at the original site.</text>
								</subparagraph></paragraph><paragraph id="HE4A834311A664DDA9DFC68028FF8C9A5"><enum>(2)</enum><header>Application</header><text>An
				eligible entity desiring a grant under paragraph (1) shall submit an
				application to the Secretary at such time, in such manner, and containing such
				information as the Secretary may reasonably
				require.</text>
							</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection id="HE46955762E3B43C89BF2242F3C9E5F39"><enum>(f)</enum><header>Definitions</header><text>Section
			 5210 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7221i">20 U.S.C. 7221i</external-xref>) is amended—</text>
				<paragraph id="H6D81B9E8338444519B55C81BC5304C00"><enum>(1)</enum><text>in paragraph
			 (1)—</text>
					<subparagraph id="H35A93A419C974EE4AAECB5E26900342F"><enum>(A)</enum><text>by striking
			 subparagraph (L);</text>
					</subparagraph><subparagraph id="H6E23A55A031047F5001E2B5776FA04DD"><enum>(B)</enum><text>by redesignating
			 subparagraphs (C) through (K) as (D) through (L);</text>
					</subparagraph><subparagraph id="H719CA4870DB5432B99E9CB85E980F167"><enum>(C)</enum><text>by inserting after
			 subparagraph (B) the following:</text>
						<quoted-block display-inline="no-display-inline" id="HE9E4930C211042CEBF7850CBC743D97C" style="OLC">
							<subparagraph id="H074098475D1E41858BD049A895F03774"><enum>(C)</enum><text display-inline="yes-display-inline">has an independent governing board that
				enters into a performance-based agreement—</text>
								<clause id="H51F7D8FC69C9490FA7070036B51092B8"><enum>(i)</enum><text>that encompasses
				one or more campuses with an authorized public chartering agency in the
				State;</text>
								</clause><clause id="HAA57DC793D954394A4E1F149AC04A600"><enum>(ii)</enum><text>that includes a
				description of how student performance will be measured in charter schools
				pursuant to State assessments that are required of other schools and pursuant
				to any other assessments or evaluations mutually agreeable to the authorized
				public chartering agency and the charter school and criteria for renewal or
				revocation;</text>
								</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
					</subparagraph><subparagraph id="H2EF3CEE18BF549DDB7692B77FEBC4413"><enum>(D)</enum><text>in subparagraph
			 (I) (as so redesignated) by inserting before the semicolon at the end the
			 following: <quote>, and does not give admissions preference to any student on
			 the basis of prior academic achievement</quote>;</text>
					</subparagraph><subparagraph id="H4332C49C3D994B9395A098DC16E17C77"><enum>(E)</enum><text>in subparagraph
			 (K) (as so redesignated) by adding <quote>and</quote> at the end; and</text>
					</subparagraph><subparagraph id="HAD3E44E64B7A41779EB6423E3F7B9EA9"><enum>(F)</enum><text>in subparagraph
			 (L) (as so redesignated) by striking <quote>; and</quote> and inserting a
			 period;</text>
					</subparagraph></paragraph><paragraph id="H4A7E4F62FC1B4594A968C9F0F0058CB"><enum>(2)</enum><text>by
			 amending paragraph (3) to read as follows:</text>
					<quoted-block display-inline="no-display-inline" id="H9542559705FB4FC191F59DB18F54E69" style="OLC">
						<paragraph id="H500A12101345429690A2F16B8C21FA8D"><enum>(3)</enum><header>Eligible
				applicant</header><text>The term <term>eligible applicant</term> means—</text>
							<subparagraph id="H36F76E16FA8F45E4883D80D8099C5EC5"><enum>(A)</enum><text display-inline="yes-display-inline">a developer that has applied to an
				authorized public chartering authority to operate a charter school and provided
				adequate and timely notice and a copy of the application to that authority
				under section 5203(e)(3); or</text>
							</subparagraph><subparagraph id="H3746E68FE63D4BEEA81DB8219CA6A97"><enum>(B)</enum><text>a charter support
				organization.</text>
							</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
				</paragraph><paragraph id="H5FA20BBBD2AE4A608500738575DB8E49"><enum>(3)</enum><text>in paragraph (4)
			 by striking <quote>or other public entity</quote> and inserting <quote>other
			 public entity, private nonprofit entity, or a consortium of entities</quote>;
			 and</text>
				</paragraph><paragraph id="H9FEBF102EEDC47D282A66508B247C4A8"><enum>(4)</enum><text>by adding at the
			 end the following:</text>
					<quoted-block display-inline="no-display-inline" id="HC0958F355CA94C04BBA73E43D1C2B83B" style="OLC">
						<paragraph id="HE2523BC31D49414D86C200FDE1B5006F"><enum>(5)</enum><header>Charter support
				organization</header><text display-inline="yes-display-inline">The term
				<term>charter support organization</term> means a public or private nonprofit
				organization that provides assistance to developers during the planning,
				program design, and initial implementation of a charter school.</text>
						</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection><subsection id="H4328A970A0874180BA40A7C2B4104AB"><enum>(g)</enum><header>Authorization of
			 appropriations</header><text>Section 5211 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7221j">20 U.S.C. 7221j</external-xref>) is
			 amended—</text>
				<paragraph id="HBD73358A005B4EDBBB368D8410E9AAF1"><enum>(1)</enum><text>in subsection (a)
			 by striking <quote>2002</quote> and inserting <quote>2008</quote>; and</text>
				</paragraph><paragraph id="HCDE17F896231412FA55CB4281BB10265"><enum>(2)</enum><text>by striking
			 subsection (b) and inserting the following:</text>
					<quoted-block display-inline="no-display-inline" id="HE15233FD61C34210B437DCDFA6AB7E12" style="OLC">
						<subsection id="H9ABF0696D20B4CC5918E520031648962"><enum>(b)</enum><header>Considerations</header><text display-inline="yes-display-inline">In allocating funds under this subpart for
				any fiscal year, the Secretary shall consider the relative need between the
				programs under section 5202 and section 5205(b) and (d) and the quality of the
				applications
				submitted.</text>
						</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection></section><section id="H460ADD7478E04DCE8C8F065EEA97ED93"><enum>3.</enum><header>Charter school
			 credit enhancement program</header>
			<subsection id="HFA59F59DD4FB47C1BD5B38EBC38DD036"><enum>(a)</enum><header>Grants to
			 eligible entities</header><text>Section 5222(a) of that Act (20 U.S.C.
			 7223a(a)) is amended by striking <quote>The Secretary shall use 100 percent of
			 the amount available</quote> and inserting <quote>After reserving any funds as
			 necessary for grant evaluation or administration consistent with applicable
			 provisions (including section 9601(a) of this Act and section 402(b)(1) of the
			 Department of Education Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/20/3462">20 U.S.C. 3462(b)(1)</external-xref>)), the Secretary
			 shall use the amounts available</quote>.</text>
			</subsection><subsection id="HFA5AF2EC68864584B632F529C21F4EBE"><enum>(b)</enum><header>Applications</header><text>Section
			 5223(b)(4) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7223b">20 U.S.C. 7223b(b)(4)</external-xref>) is amended by inserting before
			 the semicolon at the end the following: <quote>, including how the applicant
			 will offer a combination of rates and terms more favorable than those that a
			 charter school could receive without assistance under this
			 subpart</quote>.</text>
			</subsection><subsection id="H7ACDC453C2294CD798511DBD0062944E"><enum>(c)</enum><header>Charter school
			 objectives</header><text>Section 5224(2) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7223c">20 U.S.C. 7223c(2)</external-xref>) is
			 amended by inserting after <quote>construction</quote> the following:
			 <quote>(including predevelopment costs, even in rare instances where
			 construction or renovation cannot proceed as a result of pre-development
			 findings)</quote>.</text>
			</subsection><subsection id="HE0A5230413CB4C0BB17105DD11D303CB"><enum>(d)</enum><header>Reserve
			 account</header><text>Section 5225(a) of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7223d">20 U.S.C. 7223d(a)</external-xref>) is
			 amended by adding at the end the following:</text>
				<quoted-block display-inline="no-display-inline" id="H108EC52103024A21B9B0F18F4608DCA" style="OLC">
					<paragraph id="H490F86691D43434084043C01BAA2CEB1"><enum>(5)</enum><text display-inline="yes-display-inline">Making limited loans to charter schools,
				under such terms and conditions as the Secretary may
				prescribe.</text>
					</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
			</subsection><subsection id="HB598C027ED534F509E6D484784233238"><enum>(e)</enum><header>Limitation on
			 administrative costs</header><text>Section 5226 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7223e">20 U.S.C. 7223e</external-xref>)
			 is amended by striking <quote>0.25 percent of the funds received</quote> and
			 inserting <quote>two percent of the funds received for any fiscal
			 year</quote>.</text>
			</subsection><subsection id="HB2B3609970674EF2AD12185EBB819374"><enum>(f)</enum><header>Authorization of
			 appropriations</header><text>Section 5231 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/20/7223j">20 U.S.C. 7223j</external-xref>) is
			 amended by striking <quote>for fiscal year 2002</quote> and all that follows
			 through the period at the end and inserting <quote>for fiscal year 2008 and
			 such sums as may be necessary for each of the five succeeding fiscal
			 years.</quote>.</text>
			</subsection></section></legis-body>
</bill>


