<enum>I</enum><header>Pell Grants for Children</header> <section id="HAF35993E1712402EAF94CA9787BA11AE" section-type="section-one"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Pell Grants for Kids Act of 2008</short-title></quote>.</text> </section><section id="H538DD86A4AD84DDBBA90E811777BCF33"><enum>102.</enum><header>Purpose</header><text display-inline="no-display-inline">It is the purpose of this title to support State efforts to enable students who attend an identified school or a school with low graduation rate to attend a public charter school.</text> </section><section id="H472768CD36254C76A782A0D127B6957"><enum>103.</enum><header>Support for proven charter schools and increasing the supply of high quality charter schools</header> <subsection id="H9A1915539D1C49409070DBDBCFEABD"><enum>(a)</enum><header>Grants</header><text display-inline="yes-display-inline">Subject to advance appropriations, the Secretary shall award grants, on a competitive basis, to eligible entities for the purpose of enabling such entities to make subgrants to eligible public charter schools to allow such schools to serve additional eligible students.</text> </subsection><subsection id="H4BF530A1861C46EB8703F618AD528F36"><enum>(b)</enum><header>Priorities</header><text display-inline="yes-display-inline">In awarding a grant under this section, the Secretary shall—</text> <paragraph id="H935D99BA3EBA4FD6005E593FA49B7FA"><enum>(1)</enum><text>give priority to an eligible entity—</text> <subparagraph id="H9CD0B90B55F048EDAAA1749FB1CB5236"><enum>(A)</enum><text display-inline="yes-display-inline">that serves an area that has a large percentage of students who are enrolled in identified schools or public schools with a graduation rate of 60 percent or less as defined by their State educational agency and other factors determined appropriate by the Secretary;</text> </subparagraph><subparagraph id="HDE843C1CB131467BA14BB9DAF83E5A1"><enum>(B)</enum><text display-inline="yes-display-inline">that oversees one or more academically successful eligible public charter schools as determined by the Secretary using adequately yearly progress measures, State accountability measures, and other measures deemed appropriate by the Secretary;</text> </subparagraph><subparagraph id="H7042AC53B8D9415EA5EDDEFA228F6E"><enum>(C)</enum><text display-inline="yes-display-inline">that is effectively monitoring the academic success of eligible public charter schools under the jurisdiction of the eligible entity;</text> </subparagraph><subparagraph id="H5AECC3F01BE24D5381DCDE18FD05D5"><enum>(D)</enum><text display-inline="yes-display-inline">that ensures that eligible public charter schools under the jurisdiction of the eligible entity receive funding (including funding for school facilities) on a per pupil basis that is commensurate with the amount of funding (including funding for school facilities) provided by the eligible entity to traditional public schools;</text> </subparagraph><subparagraph id="H04FE8BBB97D641258FC4014DB00E5FF"><enum>(E)</enum><text>that ensures that each local educational agency under the jurisdiction of the eligible entity provides, in a timely manner, each public charter school under the jurisdiction of such local educational agency with the Federal, State, and local funds to which such school is entitled under applicable law; and</text> </subparagraph><subparagraph id="H884A34994A624409BECB74CBFC932388"><enum>(F)</enum><text>that is under the jurisdiction of a State that—</text> <clause id="HB0AAEEC1A4524E12A81E951D00EC094F"><enum>(i)</enum><text display-inline="yes-display-inline">requires public charter schools to meet State standards, administer State assessment tests to enrolled students, and participate in State accountability measures;</text> </clause><clause id="H000FADA4C1B046E79517D51E70D4978D"><enum>(ii)</enum><text display-inline="yes-display-inline">ensures that each public charter school under the jurisdiction of the State has—</text> <subclause id="H5200187C133C4236975D0060A96FD280"><enum>(I)</enum><text>a high degree of autonomy over the charter school’s budgets and expenditures; and</text> </subclause><subclause id="H398EA9555A404050BC2DEC1D008F41FD"><enum>(II)</enum><text>a written contract with an authorized public chartering agency that ensures that the school has an independent governing board and such board has a level of autonomy under such contract that the Secretary determines is appropriate; and</text> </subclause></clause></subparagraph></paragraph><paragraph id="HA009914D3FFD41D5AFFA22E5844BE740"><enum>(2)</enum><text>consider the number of public charter schools under the jurisdiction of the State, the number of students enrolled in charter schools, and the number of children on the waiting lists for public charter schools operating under the jurisdiction of the State.</text> </paragraph></subsection><subsection id="HB5D2E579145349AEA700DC851679FDD6"><enum>(c)</enum><header>Amount of Grants</header><text display-inline="yes-display-inline">In determining the amount of a grant to be awarded under this section to an eligible entity, the Secretary shall take into consideration—</text> <paragraph id="H5BAD05CD6A244EA6BB99C18640656E41"><enum>(1)</enum><text>the number of eligible public charter schools under the jurisdiction of the eligible entity that are operating, are approved to open, or are likely to open during the duration of the grant;</text> </paragraph><paragraph id="H6D7CEEBDD457447AB3D84B4E826300C3"><enum>(2)</enum><text>the number of seats for new students that could be created in such schools with such grant; and</text> </paragraph><paragraph id="HDA07E8A90CA04ED98800E5E200617DC9"><enum>(3)</enum><text>the number of eligible students in the State.</text> </paragraph></subsection><subsection id="H1113593EBF02448FB658897BF375F294"><enum>(d)</enum><header>Application Requirements</header> <paragraph id="HEF5C0A120E75428400E32CC7F0C61E07"><enum>(1)</enum><header>In general</header><text>To be considered for a grant under this title, an eligible entity shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.</text> </paragraph><paragraph id="H8B4C955862664885BC946DC4DFE01C30"><enum>(2)</enum><header>Contents</header><text>The application under paragraph (1) shall include, at a minimum, the following:</text> <subparagraph id="H22D02F264EEC402E8BD37B63C4D35C80"><enum>(A)</enum><header>Plan</header><text>A plan for—</text> <clause id="H92AF78F7984143FCA24BDD35EB80706B"><enum>(i)</enum><text>identifying eligible public charter schools that are willing to receive financial assistance under a grant under this title;</text> </clause><clause id="H8EEBDACFE32A47B19E15F79CF265A4B3"><enum>(ii)</enum><text>enrolling eligible students in eligible public charter schools;</text> </clause><clause id="H075C7CAE6A9A45ED8F71F3D75FB49231"><enum>(iii)</enum><text>increasing the number of seats for eligible students in eligible public charter schools;</text> </clause><clause id="H7443854F7E1B42088FFF00259D2340CD"><enum>(iv)</enum><text>ensuring that eligible public charter schools receiving assistance under this title enroll—</text> <subclause id="HEB8D296844E44CA090B683802471CA5E"><enum>(I)</enum><text>eligible students through a lottery for admission that is separate from the lottery for general admission to such school and is limited to the number of additional seats the schools is able to create as a result of the financial assistance received by such school under this title; and</text> </subclause><subclause id="HC82A03ED39224878AD88C954C20CEA2"><enum>(II)</enum><text display-inline="yes-display-inline">siblings of students currently enrolled in the eligible public charter school as a result of the financial assistance received by the school under this title; and</text> </subclause></clause><clause display-inline="no-display-inline" id="H67FF4C8BF0034E69AB719DD400E73E7F"><enum>(v)</enum><text>the manner in which the eligible entity will—</text> <subclause id="H64BC3E88489E403098FD7C50CE9460C6"><enum>(I)</enum><text>work with identified schools under their jurisdiction and the schools’ local educational agency to identify the parents of the eligible students, consistent with the requirements of the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g);</text> </subclause><subclause display-inline="no-display-inline" id="HE3C162317B6B4EC3A14828F34BDD970"><enum>(II)</enum><text>notify parents of eligible students of the option to transfer to an eligible public charter school receiving financial assistance under this title;</text> </subclause><subclause display-inline="no-display-inline" id="HB2C23DD15AED403183FAB9AAB0505FA"><enum>(III)</enum><text>provide information to parents of eligible students to enable the parents to make informed decisions regarding such students;</text> </subclause><subclause id="H390FF7ABB23E4058B6B2BE8E962645AC"><enum>(IV)</enum><text display-inline="yes-display-inline">ensure that an eligible student can continue to attend an eligible public charter school if the public charter school such student was attending in the previous school year is no longer an eligible public charter school; and</text> </subclause><subclause id="H74CAA881D53C424DB56B5C8CB2779C4B"><enum>(V)</enum><text>use funds received under this title.</text> </subclause></clause></subparagraph><subparagraph id="HC02551A904BA4B3B92FD408B26BCD4A3"><enum>(B)</enum><header>Charter school information</header><text display-inline="yes-display-inline">The number of eligible public charter schools that are operating in the State that has jurisdiction over the eligible entity, the number of eligible public charter schools approved to open in the next school year, the number of eligible public charter schools likely to open during the duration of the grant to the eligible entity, the number of seats in eligible public charter schools that could be created if the grant is awarded, and any other information the Secretary may require.</text> </subparagraph><subparagraph id="H7A0E36EE38E64E8C93FB80A0F0E192FC"><enum>(C)</enum><header> Traditional public school information</header><text>A list of identified schools and schools with a graduation rate of 60 percent or less as defined by their State educational agency, including the name of each such school and such demographic and socioeconomic information as the Secretary may require.</text> </subparagraph></paragraph></subsection></section><section id="H506473E9474D49C5B079F26C889FBD04"><enum>104.</enum><header>Use of Funds</header> <subsection id="HBC0B33A681E744F492FC38CCA22B55AD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">An eligible entity receiving a grant under this title may only use the funds for the following:</text> <paragraph id="HECF226DDDD5042578438AEB8CBCBD8B4"><enum>(1)</enum><header>Subgrants</header><text display-inline="yes-display-inline">To make a subgrant to an eligible public charter school, in such amount as the Secretary determines is appropriate—</text> <subparagraph display-inline="no-display-inline" id="H2DDE530FBA61451593D61638E400A6B7"><enum>(A)</enum><text>to allow increases in such school’s enrollment of eligible students;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H746DA92D95E74F49AF45906C4653DCB8"><enum>(B)</enum><text>to support the construction and physical expansion of school buildings and campuses to meet such increased enrollment;</text> </subparagraph><subparagraph id="HAC17AD7A830541399C3E35B435B9B8A8"><enum>(C)</enum><text display-inline="yes-display-inline">to pay costs associated with hiring additional teachers to serve eligible students;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HCD9B87888D534CC19E07A782366B84E3"><enum>(D)</enum><text>to support necessary operation activities associated with the school serving additional eligible students; and</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H67772C862B1B4177B037DBD12983C8EA"><enum>(E)</enum><text>to provide transportation to eligible students to and from school.</text> </subparagraph></paragraph><paragraph id="H7AF5E10D0F654E5C8BE200BF21C69E9C"><enum>(2)</enum><header>Administrative Expenses</header><text>To pay the administrative expenses of the eligible public charter schools and the eligible entity, but not to exceed five percent of the grant.</text> </paragraph><paragraph id="H9B2B3E9A4DDB4C4FAF19EE03A5D68C05"><enum>(3)</enum><header>Credit Enhancement and Revolving loan fund</header><text display-inline="yes-display-inline">To make a competitive grant that does not exceed 20 percent of the amount of the grant to an eligible entity for credit enhancement (as defined in Sec. 5230 of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7223i">20 U.S.C. 7223i</external-xref>))—</text> <subparagraph id="HCC57E7A0017E45F6BAEC12C8005DDDFA"><enum>(A)</enum><text>to conduct credit enhancement initiatives (as defined under Section 5221 of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7223">20 U.S.C. 7223</external-xref>)) in support of facility assistance for public charter schools serving eligible students; and</text> </subparagraph><subparagraph id="HD742383B71DC4DB59BFE00FF952A605"><enum>(B)</enum><text>to establish a revolving loan fund for use by an eligible public charter school receiving a subgrant under paragraph (1) from the eligible entity to allow such school to expand to serve eligible students.</text> </subparagraph></paragraph></subsection><subsection id="H0E204A2992254C918255B64FBF61E7E"><enum>(b)</enum><header>Special rules on Frequency</header> <paragraph id="HEFF9DBD941C746E29CB3D78B28E65EE5"><enum>(1)</enum><header>Eligible Public Charter Schools with Enrolled Students</header><text>Each eligible entity to which the Secretary awards a grant under this title may award a subgrant to an eligible public charter school described in section 106(5)(A) for each year an eligible student attends such school.</text> </paragraph><paragraph id="H62FF9203DF834B8794C0B9C7662F7B7F"><enum>(2)</enum><header>Limitations on Subgrants to Developers</header><text display-inline="yes-display-inline">Each eligible entity to which the Secretary awards a grant under this title shall not award a subgrant to an eligible public charter school described in section 106(5)(B) for more than two consecutive school years.</text> </paragraph></subsection><subsection commented="no" id="H817902EA1A184A91984D4600A9EB174C"><enum>(c)</enum><header>Nonprofit assistance</header><text display-inline="yes-display-inline">In carrying out administrative tasks and outreach with financial assistance provided under this title, eligible entities may contract with an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/501">26 U.S.C. 501(c)(3)</external-xref>) and exempt from tax under section 501(a) of such Code (<external-xref legal-doc="usc" parsable-cite="usc/26/501">26 U.S.C. 501(a)</external-xref>).</text> </subsection><subsection id="HB3D20C979FAD46CCB14ED914B43250EC"><enum>(d)</enum><header>Financial Responsibility</header><text display-inline="yes-display-inline">The financial records of each eligible entity and eligible public charter school receiving a grant or subgrant under this title shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H4DC472DBED04437798A3E686A3113428"><enum>(e)</enum><header>National Evaluation</header><text display-inline="yes-display-inline">From the amounts appropriated to carry out this title, the Secretary may use not more than one percent of such amounts to conduct an annual independent evaluation, by grant or contract, of the activities carried out under this title, including an assessment of the impact of such activities on student achievement. The Secretary shall submit to Congress a report on the results of the evaluation before the end of the one-year period beginning on the date of enactment of this title and every one year thereafter.</text> </subsection></section><section id="HD3F06267F5954E61B8002472CDEE1134"><enum>105.</enum><header>Reports</header><text display-inline="no-display-inline">Each eligible entity receiving a grant under this title shall prepare and submit to the Secretary the following:</text> <paragraph commented="no" id="HBE61F77D32CA4DCFBA97EE4B0138B6DB"><enum>(1)</enum><header>Report</header><text>A report that contains such information as the Secretary may require concerning use of the grant funds by the eligible entity, including the academic achievement of the students attending eligible public charter schools as a result of the grant. Such report shall be submitted before the end of the two-year period beginning on the date of enactment of this title and every two years thereafter.</text> </paragraph><paragraph commented="no" id="H643BBBAFC714419096E0DFB07DF8FE"><enum>(2)</enum><header>Performance information</header><text>Such performance information as the Secretary may require for the national evaluation conducted under section 104(e).</text> </paragraph></section><section id="H31A55662D0434F799C1CC3CB5DDD31DD"><enum>106.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions apply:</text> <paragraph id="HEAC817CB21F2458D980691009209121E"><enum>(1)</enum><header>Adequate yearly progress</header><text>The term <term>adequate yearly progress</term> has the meaning given such term in section 1111(b)(2) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6311">20 U.S.C. 6311(b)(2)</external-xref>).</text> </paragraph><paragraph display-inline="no-display-inline" id="H4E7145F374E844F198EC27518765D911"><enum>(2)</enum><header>Administrative expenses</header><text>The term <term>administrative expenses</term> includes costs associated with—</text> <subparagraph id="H23F5A04BA24C4D898056FA316C7402B2"><enum>(A)</enum><text>recruiting and selecting eligible students;</text> </subparagraph><subparagraph id="H88B47143E080469AA400E3C5D6F08DC"><enum>(B)</enum><text>outreach to parents; and</text> </subparagraph><subparagraph id="H31C3A28BC0284E119959C1004EA599C"><enum>(C)</enum><text display-inline="yes-display-inline">providing information to parents and school officials.</text> </subparagraph></paragraph><paragraph id="H0F5BB591A63D48AAA59690DDD74249D6"><enum>(3)</enum><header>Eligible entity</header><text display-inline="yes-display-inline">The term <term>eligible entity</term> means—</text> <subparagraph display-inline="no-display-inline" id="H9485CDBFA2E74C869EF641C4EF3390F7"><enum>(A)</enum><text>a State educational agency;</text> </subparagraph><subparagraph id="HE354B4E65BB345B698EC5200CE17D8AF"><enum>(B)</enum><text>an authorized public chartering agency;</text> </subparagraph><subparagraph id="H9BA144A60DFC4E3FA2146700E273C8EC"><enum>(C)</enum><text>a local educational agency; or</text> </subparagraph><subparagraph commented="no" id="H81941D60A8184CD3B1ACA8704B443B65"><enum>(D)</enum><text display-inline="yes-display-inline">in the case of a State in which a grant is not made under section 103 in a fiscal year to an agency described in subparagraphs (A), (B), or (C), an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/501">26 U.S.C. 501(c)(3)</external-xref>) and exempt from tax under section 501(a) of such Code (<external-xref legal-doc="usc" parsable-cite="usc/26/501">26 U.S.C. 501(a)</external-xref>).</text> </subparagraph></paragraph><paragraph id="HE25262F093014B28BBB80053D7C83F3B"><enum>(4)</enum><header>Eligible student</header><text>The term <term>eligible student</term> means a student who—</text> <subparagraph id="H0188D4B677874374BC49FAC1249ECA75"><enum>(A)</enum><text>with respect to a school identified for restructuring under section 1116(b)(8) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6316">20 U.S.C. 6316(b)(8)</external-xref>)—</text> <clause id="H2CAB25778B6145819556EBEB66C87563"><enum>(i)</enum><text>is eligible to enroll in the earliest grade offered by the school and attended the school for the entire school year preceding the date of such identification; or</text> </clause><clause id="HB39112B653584830B5CEB0000772457"><enum>(ii)</enum><text>transfers to the school to attend any grade beyond the earliest grade offered by the school and attends the school for the remainder of the school year in which such transfer occurs; or</text> </clause></subparagraph><subparagraph id="HE11FA62EA85B45448103C622E7BB2D40"><enum>(B)</enum><text>in the immediately preceding school year, occupied a seat created as a result of financial assistance under this title at an eligible public charter school.</text> </subparagraph></paragraph><paragraph id="H705F544B3A4C47278C38FEB295ED2C84"><enum>(5)</enum><header>Eligible public charter school</header><text>The term <term>eligible public charter school</term> means—</text> <subparagraph id="HF1B5B2881534415A895CF58C008FFFA"><enum>(A)</enum><text>a charter school (as defined under section 5210 (1) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7221i">20 U.S.C. 7221i(1)</external-xref>)) (including the campuses of such school) that—</text> <clause display-inline="no-display-inline" id="H2B6D8DD718AA4B3FBD712FB5F562D5D4"><enum>(i)</enum><text>has made adequate yearly progress for the last two consecutive school years; or</text> </clause><clause id="H53823BFD0E764B29B027B93E3EE08C20"><enum>(ii)</enum><text>successfully meets qualifications set forth by the State educational agency or the Secretary; or</text> </clause></subparagraph><subparagraph id="H37CCD2F468D847458F8CB6BE3878B460"><enum>(B)</enum><text display-inline="yes-display-inline">a charter school that is being developed by developer (as defined under section 5210(2) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7221i">20 U.S.C. 7221i(2)</external-xref>)).</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H2CE7EFE46EFE40F5BBBED9A889D1F54"><enum>(6)</enum><header>Identified school</header><text display-inline="yes-display-inline">The term <term>identified school</term> means a school identified for restructuring under section 1116(b)(8) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6316">20 U.S.C. 6316(b)(8)</external-xref>).</text> </paragraph><paragraph id="H3F80674BA1544F49ADD541D2B299F76"><enum>(7)</enum><header>Traditional public school</header><text display-inline="yes-display-inline">The term <term>traditional public school</term> does not include charter schools as defined under section 5210(1) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7221i">20 U.S.C. 7221i(1)</external-xref>).</text> </paragraph><paragraph id="HC48D0B6C7B1A4282BAC19F11BB8F1ED9"><enum>(8)</enum><header>School year</header><text display-inline="yes-display-inline">The term <term>school year</term> has the meaning given such term in section 12(d) of the Richard B. Russell National School Lunch Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1760">42 U.S.C. 1760(d)</external-xref>).</text> </paragraph><paragraph id="HE7E777EBF3784024AC0040B9B905F05E"><enum>(9)</enum><header>State accountability measures</header><text display-inline="yes-display-inline">The term <term>State accountability measures</term> includes measures undertaken under an accountability system developed and implemented by a State under section 1111(b)(2) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(2)).</text> </paragraph></section><section id="HA6E995D8068747A8A8B912CBA4DA43B4"><enum>107.</enum><header>Authorization of Appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to carry out this title $300,000,000 for fiscal year 2009 and such sums as may be necessary for each of the four succeeding fiscal years.</text> </section>

110 HR 5647 IH: Pell Grants for Kids Act of U.S. House of Representatives 2008-03-14 text/xml EN 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.

<enum>I</enum><header>Pell Grants for Children</header> <section id="HAF35993E1712402EAF94CA9787BA11AE" section-type="section-one"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Pell Grants for Kids Act of 2008</short-title></quote>.</text> </section><section id="H538DD86A4AD84DDBBA90E811777BCF33"><enum>102.</enum><header>Purpose</header><text display-inline="no-display-inline">It is the purpose of this title to support State efforts to enable students who attend an identified school or a school with low graduation rate to attend a public charter school.</text> </section><section id="H472768CD36254C76A782A0D127B6957"><enum>103.</enum><header>Support for proven charter schools and increasing the supply of high quality charter schools</header> <subsection id="H9A1915539D1C49409070DBDBCFEABD"><enum>(a)</enum><header>Grants</header><text display-inline="yes-display-inline">Subject to advance appropriations, the Secretary shall award grants, on a competitive basis, to eligible entities for the purpose of enabling such entities to make subgrants to eligible public charter schools to allow such schools to serve additional eligible students.</text> </subsection><subsection id="H4BF530A1861C46EB8703F618AD528F36"><enum>(b)</enum><header>Priorities</header><text display-inline="yes-display-inline">In awarding a grant under this section, the Secretary shall—</text> <paragraph id="H935D99BA3EBA4FD6005E593FA49B7FA"><enum>(1)</enum><text>give priority to an eligible entity—</text> <subparagraph id="H9CD0B90B55F048EDAAA1749FB1CB5236"><enum>(A)</enum><text display-inline="yes-display-inline">that serves an area that has a large percentage of students who are enrolled in identified schools or public schools with a graduation rate of 60 percent or less as defined by their State educational agency and other factors determined appropriate by the Secretary;</text> </subparagraph><subparagraph id="HDE843C1CB131467BA14BB9DAF83E5A1"><enum>(B)</enum><text display-inline="yes-display-inline">that oversees one or more academically successful eligible public charter schools as determined by the Secretary using adequately yearly progress measures, State accountability measures, and other measures deemed appropriate by the Secretary;</text> </subparagraph><subparagraph id="H7042AC53B8D9415EA5EDDEFA228F6E"><enum>(C)</enum><text display-inline="yes-display-inline">that is effectively monitoring the academic success of eligible public charter schools under the jurisdiction of the eligible entity;</text> </subparagraph><subparagraph id="H5AECC3F01BE24D5381DCDE18FD05D5"><enum>(D)</enum><text display-inline="yes-display-inline">that ensures that eligible public charter schools under the jurisdiction of the eligible entity receive funding (including funding for school facilities) on a per pupil basis that is commensurate with the amount of funding (including funding for school facilities) provided by the eligible entity to traditional public schools;</text> </subparagraph><subparagraph id="H04FE8BBB97D641258FC4014DB00E5FF"><enum>(E)</enum><text>that ensures that each local educational agency under the jurisdiction of the eligible entity provides, in a timely manner, each public charter school under the jurisdiction of such local educational agency with the Federal, State, and local funds to which such school is entitled under applicable law; and</text> </subparagraph><subparagraph id="H884A34994A624409BECB74CBFC932388"><enum>(F)</enum><text>that is under the jurisdiction of a State that—</text> <clause id="HB0AAEEC1A4524E12A81E951D00EC094F"><enum>(i)</enum><text display-inline="yes-display-inline">requires public charter schools to meet State standards, administer State assessment tests to enrolled students, and participate in State accountability measures;</text> </clause><clause id="H000FADA4C1B046E79517D51E70D4978D"><enum>(ii)</enum><text display-inline="yes-display-inline">ensures that each public charter school under the jurisdiction of the State has—</text> <subclause id="H5200187C133C4236975D0060A96FD280"><enum>(I)</enum><text>a high degree of autonomy over the charter school’s budgets and expenditures; and</text> </subclause><subclause id="H398EA9555A404050BC2DEC1D008F41FD"><enum>(II)</enum><text>a written contract with an authorized public chartering agency that ensures that the school has an independent governing board and such board has a level of autonomy under such contract that the Secretary determines is appropriate; and</text> </subclause></clause></subparagraph></paragraph><paragraph id="HA009914D3FFD41D5AFFA22E5844BE740"><enum>(2)</enum><text>consider the number of public charter schools under the jurisdiction of the State, the number of students enrolled in charter schools, and the number of children on the waiting lists for public charter schools operating under the jurisdiction of the State.</text> </paragraph></subsection><subsection id="HB5D2E579145349AEA700DC851679FDD6"><enum>(c)</enum><header>Amount of Grants</header><text display-inline="yes-display-inline">In determining the amount of a grant to be awarded under this section to an eligible entity, the Secretary shall take into consideration—</text> <paragraph id="H5BAD05CD6A244EA6BB99C18640656E41"><enum>(1)</enum><text>the number of eligible public charter schools under the jurisdiction of the eligible entity that are operating, are approved to open, or are likely to open during the duration of the grant;</text> </paragraph><paragraph id="H6D7CEEBDD457447AB3D84B4E826300C3"><enum>(2)</enum><text>the number of seats for new students that could be created in such schools with such grant; and</text> </paragraph><paragraph id="HDA07E8A90CA04ED98800E5E200617DC9"><enum>(3)</enum><text>the number of eligible students in the State.</text> </paragraph></subsection><subsection id="H1113593EBF02448FB658897BF375F294"><enum>(d)</enum><header>Application Requirements</header> <paragraph id="HEF5C0A120E75428400E32CC7F0C61E07"><enum>(1)</enum><header>In general</header><text>To be considered for a grant under this title, an eligible entity shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.</text> </paragraph><paragraph id="H8B4C955862664885BC946DC4DFE01C30"><enum>(2)</enum><header>Contents</header><text>The application under paragraph (1) shall include, at a minimum, the following:</text> <subparagraph id="H22D02F264EEC402E8BD37B63C4D35C80"><enum>(A)</enum><header>Plan</header><text>A plan for—</text> <clause id="H92AF78F7984143FCA24BDD35EB80706B"><enum>(i)</enum><text>identifying eligible public charter schools that are willing to receive financial assistance under a grant under this title;</text> </clause><clause id="H8EEBDACFE32A47B19E15F79CF265A4B3"><enum>(ii)</enum><text>enrolling eligible students in eligible public charter schools;</text> </clause><clause id="H075C7CAE6A9A45ED8F71F3D75FB49231"><enum>(iii)</enum><text>increasing the number of seats for eligible students in eligible public charter schools;</text> </clause><clause id="H7443854F7E1B42088FFF00259D2340CD"><enum>(iv)</enum><text>ensuring that eligible public charter schools receiving assistance under this title enroll—</text> <subclause id="HEB8D296844E44CA090B683802471CA5E"><enum>(I)</enum><text>eligible students through a lottery for admission that is separate from the lottery for general admission to such school and is limited to the number of additional seats the schools is able to create as a result of the financial assistance received by such school under this title; and</text> </subclause><subclause id="HC82A03ED39224878AD88C954C20CEA2"><enum>(II)</enum><text display-inline="yes-display-inline">siblings of students currently enrolled in the eligible public charter school as a result of the financial assistance received by the school under this title; and</text> </subclause></clause><clause display-inline="no-display-inline" id="H67FF4C8BF0034E69AB719DD400E73E7F"><enum>(v)</enum><text>the manner in which the eligible entity will—</text> <subclause id="H64BC3E88489E403098FD7C50CE9460C6"><enum>(I)</enum><text>work with identified schools under their jurisdiction and the schools’ local educational agency to identify the parents of the eligible students, consistent with the requirements of the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g);</text> </subclause><subclause display-inline="no-display-inline" id="HE3C162317B6B4EC3A14828F34BDD970"><enum>(II)</enum><text>notify parents of eligible students of the option to transfer to an eligible public charter school receiving financial assistance under this title;</text> </subclause><subclause display-inline="no-display-inline" id="HB2C23DD15AED403183FAB9AAB0505FA"><enum>(III)</enum><text>provide information to parents of eligible students to enable the parents to make informed decisions regarding such students;</text> </subclause><subclause id="H390FF7ABB23E4058B6B2BE8E962645AC"><enum>(IV)</enum><text display-inline="yes-display-inline">ensure that an eligible student can continue to attend an eligible public charter school if the public charter school such student was attending in the previous school year is no longer an eligible public charter school; and</text> </subclause><subclause id="H74CAA881D53C424DB56B5C8CB2779C4B"><enum>(V)</enum><text>use funds received under this title.</text> </subclause></clause></subparagraph><subparagraph id="HC02551A904BA4B3B92FD408B26BCD4A3"><enum>(B)</enum><header>Charter school information</header><text display-inline="yes-display-inline">The number of eligible public charter schools that are operating in the State that has jurisdiction over the eligible entity, the number of eligible public charter schools approved to open in the next school year, the number of eligible public charter schools likely to open during the duration of the grant to the eligible entity, the number of seats in eligible public charter schools that could be created if the grant is awarded, and any other information the Secretary may require.</text> </subparagraph><subparagraph id="H7A0E36EE38E64E8C93FB80A0F0E192FC"><enum>(C)</enum><header> Traditional public school information</header><text>A list of identified schools and schools with a graduation rate of 60 percent or less as defined by their State educational agency, including the name of each such school and such demographic and socioeconomic information as the Secretary may require.</text> </subparagraph></paragraph></subsection></section><section id="H506473E9474D49C5B079F26C889FBD04"><enum>104.</enum><header>Use of Funds</header> <subsection id="HBC0B33A681E744F492FC38CCA22B55AD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">An eligible entity receiving a grant under this title may only use the funds for the following:</text> <paragraph id="HECF226DDDD5042578438AEB8CBCBD8B4"><enum>(1)</enum><header>Subgrants</header><text display-inline="yes-display-inline">To make a subgrant to an eligible public charter school, in such amount as the Secretary determines is appropriate—</text> <subparagraph display-inline="no-display-inline" id="H2DDE530FBA61451593D61638E400A6B7"><enum>(A)</enum><text>to allow increases in such school’s enrollment of eligible students;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H746DA92D95E74F49AF45906C4653DCB8"><enum>(B)</enum><text>to support the construction and physical expansion of school buildings and campuses to meet such increased enrollment;</text> </subparagraph><subparagraph id="HAC17AD7A830541399C3E35B435B9B8A8"><enum>(C)</enum><text display-inline="yes-display-inline">to pay costs associated with hiring additional teachers to serve eligible students;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HCD9B87888D534CC19E07A782366B84E3"><enum>(D)</enum><text>to support necessary operation activities associated with the school serving additional eligible students; and</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H67772C862B1B4177B037DBD12983C8EA"><enum>(E)</enum><text>to provide transportation to eligible students to and from school.</text> </subparagraph></paragraph><paragraph id="H7AF5E10D0F654E5C8BE200BF21C69E9C"><enum>(2)</enum><header>Administrative Expenses</header><text>To pay the administrative expenses of the eligible public charter schools and the eligible entity, but not to exceed five percent of the grant.</text> </paragraph><paragraph id="H9B2B3E9A4DDB4C4FAF19EE03A5D68C05"><enum>(3)</enum><header>Credit Enhancement and Revolving loan fund</header><text display-inline="yes-display-inline">To make a competitive grant that does not exceed 20 percent of the amount of the grant to an eligible entity for credit enhancement (as defined in Sec. 5230 of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7223i">20 U.S.C. 7223i</external-xref>))—</text> <subparagraph id="HCC57E7A0017E45F6BAEC12C8005DDDFA"><enum>(A)</enum><text>to conduct credit enhancement initiatives (as defined under Section 5221 of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7223">20 U.S.C. 7223</external-xref>)) in support of facility assistance for public charter schools serving eligible students; and</text> </subparagraph><subparagraph id="HD742383B71DC4DB59BFE00FF952A605"><enum>(B)</enum><text>to establish a revolving loan fund for use by an eligible public charter school receiving a subgrant under paragraph (1) from the eligible entity to allow such school to expand to serve eligible students.</text> </subparagraph></paragraph></subsection><subsection id="H0E204A2992254C918255B64FBF61E7E"><enum>(b)</enum><header>Special rules on Frequency</header> <paragraph id="HEFF9DBD941C746E29CB3D78B28E65EE5"><enum>(1)</enum><header>Eligible Public Charter Schools with Enrolled Students</header><text>Each eligible entity to which the Secretary awards a grant under this title may award a subgrant to an eligible public charter school described in section 106(5)(A) for each year an eligible student attends such school.</text> </paragraph><paragraph id="H62FF9203DF834B8794C0B9C7662F7B7F"><enum>(2)</enum><header>Limitations on Subgrants to Developers</header><text display-inline="yes-display-inline">Each eligible entity to which the Secretary awards a grant under this title shall not award a subgrant to an eligible public charter school described in section 106(5)(B) for more than two consecutive school years.</text> </paragraph></subsection><subsection commented="no" id="H817902EA1A184A91984D4600A9EB174C"><enum>(c)</enum><header>Nonprofit assistance</header><text display-inline="yes-display-inline">In carrying out administrative tasks and outreach with financial assistance provided under this title, eligible entities may contract with an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/501">26 U.S.C. 501(c)(3)</external-xref>) and exempt from tax under section 501(a) of such Code (<external-xref legal-doc="usc" parsable-cite="usc/26/501">26 U.S.C. 501(a)</external-xref>).</text> </subsection><subsection id="HB3D20C979FAD46CCB14ED914B43250EC"><enum>(d)</enum><header>Financial Responsibility</header><text display-inline="yes-display-inline">The financial records of each eligible entity and eligible public charter school receiving a grant or subgrant under this title shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H4DC472DBED04437798A3E686A3113428"><enum>(e)</enum><header>National Evaluation</header><text display-inline="yes-display-inline">From the amounts appropriated to carry out this title, the Secretary may use not more than one percent of such amounts to conduct an annual independent evaluation, by grant or contract, of the activities carried out under this title, including an assessment of the impact of such activities on student achievement. The Secretary shall submit to Congress a report on the results of the evaluation before the end of the one-year period beginning on the date of enactment of this title and every one year thereafter.</text> </subsection></section><section id="HD3F06267F5954E61B8002472CDEE1134"><enum>105.</enum><header>Reports</header><text display-inline="no-display-inline">Each eligible entity receiving a grant under this title shall prepare and submit to the Secretary the following:</text> <paragraph commented="no" id="HBE61F77D32CA4DCFBA97EE4B0138B6DB"><enum>(1)</enum><header>Report</header><text>A report that contains such information as the Secretary may require concerning use of the grant funds by the eligible entity, including the academic achievement of the students attending eligible public charter schools as a result of the grant. Such report shall be submitted before the end of the two-year period beginning on the date of enactment of this title and every two years thereafter.</text> </paragraph><paragraph commented="no" id="H643BBBAFC714419096E0DFB07DF8FE"><enum>(2)</enum><header>Performance information</header><text>Such performance information as the Secretary may require for the national evaluation conducted under section 104(e).</text> </paragraph></section><section id="H31A55662D0434F799C1CC3CB5DDD31DD"><enum>106.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions apply:</text> <paragraph id="HEAC817CB21F2458D980691009209121E"><enum>(1)</enum><header>Adequate yearly progress</header><text>The term <term>adequate yearly progress</term> has the meaning given such term in section 1111(b)(2) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6311">20 U.S.C. 6311(b)(2)</external-xref>).</text> </paragraph><paragraph display-inline="no-display-inline" id="H4E7145F374E844F198EC27518765D911"><enum>(2)</enum><header>Administrative expenses</header><text>The term <term>administrative expenses</term> includes costs associated with—</text> <subparagraph id="H23F5A04BA24C4D898056FA316C7402B2"><enum>(A)</enum><text>recruiting and selecting eligible students;</text> </subparagraph><subparagraph id="H88B47143E080469AA400E3C5D6F08DC"><enum>(B)</enum><text>outreach to parents; and</text> </subparagraph><subparagraph id="H31C3A28BC0284E119959C1004EA599C"><enum>(C)</enum><text display-inline="yes-display-inline">providing information to parents and school officials.</text> </subparagraph></paragraph><paragraph id="H0F5BB591A63D48AAA59690DDD74249D6"><enum>(3)</enum><header>Eligible entity</header><text display-inline="yes-display-inline">The term <term>eligible entity</term> means—</text> <subparagraph display-inline="no-display-inline" id="H9485CDBFA2E74C869EF641C4EF3390F7"><enum>(A)</enum><text>a State educational agency;</text> </subparagraph><subparagraph id="HE354B4E65BB345B698EC5200CE17D8AF"><enum>(B)</enum><text>an authorized public chartering agency;</text> </subparagraph><subparagraph id="H9BA144A60DFC4E3FA2146700E273C8EC"><enum>(C)</enum><text>a local educational agency; or</text> </subparagraph><subparagraph commented="no" id="H81941D60A8184CD3B1ACA8704B443B65"><enum>(D)</enum><text display-inline="yes-display-inline">in the case of a State in which a grant is not made under section 103 in a fiscal year to an agency described in subparagraphs (A), (B), or (C), an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/501">26 U.S.C. 501(c)(3)</external-xref>) and exempt from tax under section 501(a) of such Code (<external-xref legal-doc="usc" parsable-cite="usc/26/501">26 U.S.C. 501(a)</external-xref>).</text> </subparagraph></paragraph><paragraph id="HE25262F093014B28BBB80053D7C83F3B"><enum>(4)</enum><header>Eligible student</header><text>The term <term>eligible student</term> means a student who—</text> <subparagraph id="H0188D4B677874374BC49FAC1249ECA75"><enum>(A)</enum><text>with respect to a school identified for restructuring under section 1116(b)(8) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6316">20 U.S.C. 6316(b)(8)</external-xref>)—</text> <clause id="H2CAB25778B6145819556EBEB66C87563"><enum>(i)</enum><text>is eligible to enroll in the earliest grade offered by the school and attended the school for the entire school year preceding the date of such identification; or</text> </clause><clause id="HB39112B653584830B5CEB0000772457"><enum>(ii)</enum><text>transfers to the school to attend any grade beyond the earliest grade offered by the school and attends the school for the remainder of the school year in which such transfer occurs; or</text> </clause></subparagraph><subparagraph id="HE11FA62EA85B45448103C622E7BB2D40"><enum>(B)</enum><text>in the immediately preceding school year, occupied a seat created as a result of financial assistance under this title at an eligible public charter school.</text> </subparagraph></paragraph><paragraph id="H705F544B3A4C47278C38FEB295ED2C84"><enum>(5)</enum><header>Eligible public charter school</header><text>The term <term>eligible public charter school</term> means—</text> <subparagraph id="HF1B5B2881534415A895CF58C008FFFA"><enum>(A)</enum><text>a charter school (as defined under section 5210 (1) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7221i">20 U.S.C. 7221i(1)</external-xref>)) (including the campuses of such school) that—</text> <clause display-inline="no-display-inline" id="H2B6D8DD718AA4B3FBD712FB5F562D5D4"><enum>(i)</enum><text>has made adequate yearly progress for the last two consecutive school years; or</text> </clause><clause id="H53823BFD0E764B29B027B93E3EE08C20"><enum>(ii)</enum><text>successfully meets qualifications set forth by the State educational agency or the Secretary; or</text> </clause></subparagraph><subparagraph id="H37CCD2F468D847458F8CB6BE3878B460"><enum>(B)</enum><text display-inline="yes-display-inline">a charter school that is being developed by developer (as defined under section 5210(2) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7221i">20 U.S.C. 7221i(2)</external-xref>)).</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H2CE7EFE46EFE40F5BBBED9A889D1F54"><enum>(6)</enum><header>Identified school</header><text display-inline="yes-display-inline">The term <term>identified school</term> means a school identified for restructuring under section 1116(b)(8) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6316">20 U.S.C. 6316(b)(8)</external-xref>).</text> </paragraph><paragraph id="H3F80674BA1544F49ADD541D2B299F76"><enum>(7)</enum><header>Traditional public school</header><text display-inline="yes-display-inline">The term <term>traditional public school</term> does not include charter schools as defined under section 5210(1) of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7221i">20 U.S.C. 7221i(1)</external-xref>).</text> </paragraph><paragraph id="HC48D0B6C7B1A4282BAC19F11BB8F1ED9"><enum>(8)</enum><header>School year</header><text display-inline="yes-display-inline">The term <term>school year</term> has the meaning given such term in section 12(d) of the Richard B. Russell National School Lunch Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1760">42 U.S.C. 1760(d)</external-xref>).</text> </paragraph><paragraph id="HE7E777EBF3784024AC0040B9B905F05E"><enum>(9)</enum><header>State accountability measures</header><text display-inline="yes-display-inline">The term <term>State accountability measures</term> includes measures undertaken under an accountability system developed and implemented by a State under section 1111(b)(2) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311(b)(2)).</text> </paragraph></section><section id="HA6E995D8068747A8A8B912CBA4DA43B4"><enum>107.</enum><header>Authorization of Appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to carry out this title $300,000,000 for fiscal year 2009 and such sums as may be necessary for each of the four succeeding fiscal years.</text> </section><enum>II</enum><header>Fair Share for Government Contractors</header> <section id="H40241610D6554CCDA25DBC4F24D8B181" section-type="subsequent-section"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote>Fair Share Act of 2008</quote>.</text> </section><section id="HDA7AD651A51744EFAC64C3C58CD6483E" section-type="subsequent-section"><enum>202.</enum><header>Certain domestically controlled foreign persons performing services under contract with United States Government treated as American employers</header> <subsection id="HF9E07E4137394F1D939F49BCD839DF60"><enum>(a)</enum><header>FICA taxes</header><text display-inline="yes-display-inline">Section 3121 of the Internal Revenue Code of 1986 (relating to definitions) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HD5ADC3594F154C70B6CAF97D1358C97" style="OLC"> <subsection id="H831161AF253E4046869DD9EECA15B0DE"><enum>(z)</enum><header>Treatment of certain foreign persons as American employers</header> <paragraph id="HA89CFDDE9B14464AA34D26A5B51C5E94"><enum>(1)</enum><header>In general</header><text>If any employee of a foreign person is performing services in connection with a contract between the United States Government (or any instrumentality thereof) and any member of any domestically controlled group of entities which includes such foreign person, such foreign person shall be treated for purposes of this chapter as an American employer with respect to such services performed by such employee.</text> </paragraph><paragraph id="HFBE614050D544C75ABA4025FB970BD6B"><enum>(2)</enum><header>Domestically controlled group of entities</header><text>For purposes of this subsection—</text> <subparagraph id="H8917E9FC92C1431E9C94FF3202BA3E7D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>domestically controlled group of entities</term> means a controlled group of entities the common parent of which is a domestic corporation.</text> </subparagraph><subparagraph id="H7B1C54CE8AFC40D0BFCCC94CF2738B7F"><enum>(B)</enum><header>Controlled group of entities</header><text display-inline="yes-display-inline">The term <term>controlled group of entities</term> means a controlled group of corporations as defined in section 1563(a)(1), except that—</text> <clause id="HF2A950521CED4D768332D3F5552BB039"><enum>(i)</enum><text><quote>more than 50 percent</quote> shall be substituted for <quote>at least 80 percent</quote> each place it appears therein, and</text> </clause><clause id="HFEF2F665269847F28851B8D02FEB15F"><enum>(ii)</enum><text>the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563.</text> </clause><continuation-text continuation-text-level="subparagraph">A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence).</continuation-text></subparagraph></paragraph><paragraph id="H5249B2B0D5C04EBC85BEDB79697CBAE"><enum>(3)</enum><header>Liability of common parent</header><text display-inline="yes-display-inline">In the case of a foreign person who is a member of any domestically controlled group of entities, the common parent of such group shall be jointly and severally liable for any tax under this chapter for which such foreign person is liable by reason of this subsection.</text> </paragraph><paragraph id="H00C577D595D04CE880F0F94BFC70954F"><enum>(4)</enum><header>Cross reference</header><text>For relief from taxes in cases covered by certain international agreements, see sections 3101(c) and 3111(c).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H785C6292B8C94D0C8B92118BD500DB09"><enum>(b)</enum><header>Social Security benefits</header><text>Subsection (e) of section 210 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/410">42 U.S.C. 410(e)</external-xref>) is amended—</text> <paragraph id="HB08C87EF390C43CB9030F730AEC0006"><enum>(1)</enum><text>by striking <quote>(e) The term</quote> and inserting <quote>(e)(1) The term</quote>,</text> </paragraph><paragraph id="HD9A2EBBBF9A44E01B2F95E5CAE3308"><enum>(2)</enum><text>by redesignating paragraphs (1) through (6) as subparagraphs (A) through (F), respectively, and</text> </paragraph><paragraph id="HBB0AF63DDEBE43959D230954E561347C"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H3E1EB3B58377483D99D8FF9BC7494C1B" style="traditional"> <paragraph id="H56BAB2B034D945018FB92F5782BA483E"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H1AA25ADEAA954A9AA4D5101ED883E02C"><enum>(A)</enum><text>If any employee of a foreign person is performing services in connection with a contract between the United States Government (or any instrumentality thereof) and any member of any domestically controlled group of entities which includes such foreign person, such foreign person shall be treated for purposes of this chapter as an American employer with respect to such services performed by such employee.</text> </subparagraph><subparagraph id="H4937E019909647CD96A1389C3C3C59E9" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">For purposes of this paragraph—</text> <clause display-inline="no-display-inline" id="H8093E04D40414822AE1176D1AFBCFBF0"><enum>(i)</enum><text>The term <term>domestically controlled group of entities</term> means a controlled group of entities the common parent of which is a domestic corporation.</text> </clause><clause id="HE3DA9DEBE2984BD6A05DDD9B6850DD53"><enum>(ii)</enum><text>The term <term>controlled group of entities</term> means a controlled group of corporations as defined in section 1563(a)(1) of the Internal Revenue Code of 1986, except that—</text> <subclause id="HC75140F2C71E4DEE995E31B8AD4DF5D0"><enum>(I)</enum><text display-inline="yes-display-inline"><quote>more than 50 percent</quote> shall be substituted for <quote>at least 80 percent</quote> each place it appears therein, and</text> </subclause><subclause id="H07F7E0631AD448C69C189B47AC448DBE"><enum>(II)</enum><text>the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563 of such Code.</text> </subclause><continuation-text continuation-text-level="clause">A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3) of such Code) by members of such group (including any entity treated as a member of such group by reason of this sentence).</continuation-text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HE9F7E3646A2A4626A42599892BE398EC"><enum>(c)</enum><header>Effective date</header><text>The amendment made by this section shall apply to services performed after the date of the enactment of this title.</text> </subsection></section>