[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2218 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2218

To amend the charter school program under the Elementary and Secondary 
                         Education Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 16, 2011

 Mr. Hunter (for himself and Mr. Kline) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
To amend the charter school program under the Elementary and Secondary 
                         Education Act of 1965.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Empowering Parents through Quality 
Charter Schools Act''.

SEC. 2. REFERENCES.

    Except as otherwise specifically provided, whenever in this Act a 
section or other provision is amended or repealed, such amendment or 
repeal shall be considered to be made to that section or other 
provision of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6301 et seq.).

SEC. 3. PURPOSE.

    Section 5201 (20 U.S.C. 7221) is amended to read as follows:

``SEC. 5201. PURPOSE.

    ``It is the purpose of this subpart to--
            ``(1) provide financial assistance for the planning, 
        program design, and initial implementation of charter schools;
            ``(2) expand the number of high-quality charter schools 
        available to students across the Nation;
            ``(3) evaluate the impact of such schools on student 
        achievement, families, and communities, and share best 
        practices with other public schools;
            ``(4) encourage States to provide support to charter 
        schools for facilities financing in an amount more nearly 
        commensurate to the amount the States have typically provided 
        for traditional public schools;
            ``(5) improve student services to increase opportunities 
        for students with disabilities, English language learners, and 
        other traditionally underserved students to attend charter 
        schools and meet challenging State academic achievement 
        standards; and
            ``(6) support efforts to strengthen the charter school 
        authorizing process to improve performance management, 
        including transparency, monitoring, and evaluation of such 
        schools.''.

SEC. 4. PROGRAM AUTHORIZED.

    Section 5202 (20 U.S.C. 7221a) is amended to read as follows:

``SEC. 5202. PROGRAM AUTHORIZED.

    ``(a) In General.--This subpart authorizes the Secretary to carry 
out a charter school program that supports charter schools that serve 
elementary school and secondary school students by--
            ``(1) supporting the startup, replication, and expansion of 
        charter schools;
            ``(2) assisting charter schools in accessing credit to 
        acquire and renovate facilities for school use; and
            ``(3) carrying out national activities to support charter 
        school development, the dissemination of best practices of 
        charter schools for all schools, and the evaluation of the 
        impact of the program on schools participating in the program.
    ``(b) Funding Allotment.--From the amount made available under 
section 5211 for a fiscal year, the Secretary shall--
            ``(1) reserve 15 percent to support charter school 
        facilities assistance under section 5204;
            ``(2) reserve not more than 5 percent to carry out national 
        activities under section 5205; and
            ``(3) use the remaining amount after the Secretary reserves 
        funds under paragraphs (1) and (2) to carry out section 5203.
    ``(c) Prior Grants and Subgrants.--The recipient of a grant or 
subgrant under this subpart, as such subpart was in effect on the day 
before the date of enactment of the Empowering Parents through Quality 
Charter Schools Act, shall continue to receive funds in accordance with 
the terms and conditions of such grant or subgrant.''.

SEC. 5. GRANTS TO SUPPORT QUALITY CHARTER SCHOOLS.

    Section 5203 (20 U.S.C. 7221b) is amended to read as follows:

``SEC. 5203. GRANTS TO SUPPORT QUALITY CHARTER SCHOOLS.

    ``(a) In General.--From the amount reserved under section 
5202(b)(3), the Secretary shall award grants to State entities having 
applications approved pursuant to subsection (e) to enable such 
entities to--
            ``(1) award subgrants to eligible applicants for--
                    ``(A) new charter schools;
                    ``(B) replicable, high-quality charter school 
                models; and
                    ``(C) the expansion of high-quality charter 
                schools; and
            ``(2) provide technical assistance (which may be provided 
        by awarding subgrants to other entities) to eligible applicants 
        and authorized public chartering agencies in carrying out the 
        activities described in paragraph (1) and work with authorized 
        public chartering agencies in the State to improve the 
        authorizing quality.
    ``(b) State Uses of Funds.--
            ``(1) In general.--A State entity receiving a grant under 
        this section shall--
                    ``(A) use 90 percent of the grant funds for 
                activities to support quality charter schools described 
                in the entity's application approved pursuant to 
                subsection (e) by carrying out a quality charter school 
                program to award subgrants to eligible applicants for 
                the purposes described in subparagraphs (A) through (C) 
                of subsection (a)(1); and
                    ``(B) reserve 10 percent of such funds to carry out 
                the activities described in subsection (a)(2), of which 
                not more than 30 percent may be used for administrative 
                costs (including the costs for providing the technical 
                assistance described in subsection (a)(2)).
            ``(2) Administrative costs.--A State entity receiving a 
        grant under this section may not use more than 30 percent of 
        the funds reserved under paragraph (1)(B) for administrative 
        costs, which may include providing the technical assistance 
        described in subsection (a)(2).
    ``(c) Program Periods; Peer Review; Diversity of Projects.--
            ``(1) Program periods.--
                    ``(A) Grants.--A grant awarded by the Secretary to 
                a State entity under this section shall be for a period 
                of not more than 5 years.
                    ``(B) Subgrants.--A subgrant awarded by a State 
                entity to an eligible applicant under this section 
                shall be for a period of not more than 5 years, of 
                which the eligible applicant may use not more than 18 
                months for planning and program design.
            ``(2) Peer review.--The Secretary, and each State entity 
        receiving a grant under this section, shall use a peer review 
        process to review applications for assistance under this 
        section.
            ``(3) Diversity of projects.--Each State entity receiving a 
        grant under this section, shall award subgrants under this 
        section in a manner that, to the extent possible, ensures that 
        such subgrants--
                    ``(A) are distributed throughout different areas, 
                including urban, suburban, and rural areas; and
                    ``(B) will assist charter schools representing a 
                variety of educational approaches.
    ``(d) Limitations.--
            ``(1) Grants.--A State entity may not receive more than 1 
        grant under this section for a 5-year period.
            ``(2) Subgrants.--An eligible applicant may not receive 
        more than 1 subgrant under this section per charter school for 
        a 5-year period.
    ``(e) Applications.--A State entity desiring to receive a grant 
under this section shall submit an application to the Secretary at such 
time and in such manner as the Secretary may require. The application 
shall include the following:
            ``(1) Description of program.--A description of the 
        entity's objectives in running a quality charter school program 
        under this section and how the objectives of such program will 
        be carried out, including a description--
                    ``(A) of how the entity--
                            ``(i) will support both new charter school 
                        start up and the expansion and replication of 
                        high-quality charter school models;
                            ``(ii) will inform eligible charter 
                        schools, developers, and authorized public 
                        chartering agencies of the availability of 
                        funds under this program;
                            ``(iii) will work with eligible applicants 
                        to ensure that the applicants access all 
                        Federal funds that they are eligible to 
                        receive, and ensure charter schools and 
                        students attending charter schools will receive 
                        the commensurate share of Federal funds the 
                        schools and students are eligible to receive 
                        and participate;
                            ``(iv) will support efforts to increase 
                        quality initiatives for charter schools;
                            ``(v) in the case in which the entity is 
                        not a State educational agency--
                                    ``(I) will work with the State 
                                educational agency and the charter 
                                schools in the State to maximize 
                                charter school participation in Federal 
                                and State programs for charter schools; 
                                and
                                    ``(II) will work with the State 
                                educational agency, where applicable, 
                                to adequately operate the subgrant 
                                program under this section;
                            ``(vi) will ensure eligible applicants that 
                        receive a subgrant under this section are 
                        prepared to continue to operate once the 
                        subgrant funds have expired;
                            ``(vii) will support charter schools in 
                        local educational agencies with large numbers 
                        of schools that must comply with the 
                        requirements of section 1116(b);
                            ``(viii) will work with charter schools to 
                        promote inclusion of all students, engage in 
                        additional recruitment efforts with respect to 
                        groups that might otherwise have limited 
                        opportunities to participate in the charter 
                        school's program, and support students once 
                        they are admitted to the school to help avoid 
                        drop outs and transfers;
                            ``(ix) will ensure the charter schools they 
                        support can meet the educational needs of their 
                        students, including students with disabilities 
                        and English language learners; and
                            ``(x) will meet the quality authorizing 
                        elements described in paragraph (2)(F);
                    ``(B) of the extent to which the entity--
                            ``(i) is able to meet and implement the 
                        priorities listed in subsection (f)(2); and
                            ``(ii) is working to develop or strengthen 
                        a cohesive statewide system to support the 
                        opening of new charter schools and high-quality 
                        replicable charter school models, and expanding 
                        high-quality charter schools; and
                    ``(C) in the case of an entity that partners with 
                an outside organization, of what responsibilities the 
                organization will have in carrying out the quality 
                charter school program under this section.
            ``(2) Assurances.--An assurance, including a description of 
        how the assurance will be met, that--
                    ``(A) each charter school receiving funds under the 
                entity's program will have a high degree of autonomy;
                    ``(B) the entity will support charter schools so 
                they will meet the educational needs of their students 
                as described in paragraph (1)(A)(ix);
                    ``(C) the entity will ensure that the authorized 
                public chartering agency of any charter school that 
                receives funds under the entity's program--
                            ``(i) ensures that the charter school can 
                        meet the obligations under this Act, the 
                        Individuals with Disabilities Education Act, 
                        the Civil Rights Act of 1964, and the 
                        Rehabilitation Act of 1974; and
                            ``(ii) adequately monitors and helps the 
                        schools meet the needs of students with 
                        disabilities and English language learners;
                    ``(D) the entity will award subgrants to eligible 
                applicants that provide such funds to charter schools 
                that offer an evidence-based, quality academic 
                experience;
                    ``(E) the entity will provide adequate technical 
                assistance to eligible applicants to--
                            ``(i) meet the recruiting practices 
                        described in paragraph (1)(A)(viii);
                            ``(ii) meet the educational needs of their 
                        students, including through activities 
                        described in paragraph (1)(A)(ix); and
                            ``(iii) enroll students with disabilities, 
                        English language learners, and other 
                        traditionally underserved populations at a rate 
                        similar to traditional public schools in the 
                        area; and
                    ``(F) the entity will award support quality 
                authorizing that will help all authorized public 
                chartering agencies in the State to adequately monitor 
                their charter schools, including by--
                            ``(i) using annual performance data to 
                        ensure their charter schools are successful;
                            ``(ii) assisting their charter schools to 
                        conduct annual financial audits, as required 
                        under State and Federal law; and
                            ``(iii) utilizing quality control measures.
            ``(3) Requests for waivers.--A request and justification 
        for waivers of any Federal statutory or regulatory provisions 
        that the entity believes are necessary for the successful 
        operation of the charter schools that will receive funds under 
        the entity's program under this section, and a description of 
        any State or local rules, generally applicable to public 
        schools, that will be waived, or otherwise not apply to such 
        schools.
    ``(f) Selection Criteria; Priority.--
            ``(1) Selection criteria.--The Secretary shall award grants 
        to State entities under this section on the basis of the 
        quality of the applications submitted under subsection (e), 
        after taking into consideration--
                    ``(A) the degree of flexibility afforded by the 
                State's public charter school law and how the entity 
                will work to maximize the flexibility provided to 
                charter schools under the law;
                    ``(B) the ambitiousness of the State entity's 
                objectives for the quality charter school program 
                carried out under this section;
                    ``(C) the quality of the strategy for assessing 
                achievement of those objectives;
                    ``(D) the likelihood that the eligible applicants 
                receiving subgrants under the program will meet those 
                objectives and improve educational results for 
                students;
                    ``(E) the number of new, expanded, or replicated 
                charter schools proposed to be opened, and the number 
                of high quality charter schools to be replicated or 
                expanded under the program, by such eligible 
                applicants;
                    ``(F) the entity's plan to adequately monitor its 
                subgrantees and work with the authorized public 
                chartering agencies to avoid duplication of work for 
                the schools and authorized public chartering agencies;
                    ``(G) the entity's plan to provide adequate 
                technical assistance, as described in the entity's 
                application under subsection (e), for the eligible 
                applicants receiving subgrants under this section; and
                    ``(H) the entity's plan to support quality 
                authorizing efforts in the State.
            ``(2) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to State entities to the extent 
        that they meet the following criteria:
                    ``(A) In the case of a State that allows more than 
                the State educational agency or a local educational 
                agency to be an authorized public chartering agency, 
                has a quality authorized public chartering agency other 
                than the State educational agency.
                    ``(B) The State entity does not impose any 
                limitation on the number or percentage of charter 
                schools that may exist or the number or percentage of 
                students that may attend charter schools in the State.
                    ``(C) The State entity ensures equitable financing, 
                as compared to traditional public schools, for charter 
                schools and students in a prompt manner.
                    ``(D) The State entity supports full-, blended, or 
                hybrid-online charter school models.
                    ``(E) The State entity will work with the 
                traditional public school system to include charter 
                school operators in decisions about the public school 
                system in the State.
                    ``(F) The State entity uses charter schools to help 
                turn around struggling schools and local educational 
                agencies.
                    ``(G) The State entity provides for or works with 
                the State educational agency to provide an appeals 
                process for charter schools who have been denied an 
                application for a charter school.
                    ``(H) The State entity partners with an 
                organization that has a demonstrated record of success 
                in developing management organizations to support the 
                development of charter schools in the State.
    ``(g) Local Uses of Funds.--An eligible applicant receiving a 
subgrant under this section shall use such funds to--
            ``(1) open new charter schools and high-quality charter 
        school models that are replicable, or expand existing high-
        quality charter schools; and
            ``(2) support quality authorizing.
    ``(h) Reporting Requirements.--Each State entity receiving a grant 
under this section shall submit at the end of the third year of the 5-
year grant period and at the end of such grant period a report to the 
Secretary on--
            ``(1) the number of students served and, if applicable how 
        many new students were served during each year of the grant 
        period;
            ``(2) the number of subgrants awarded under this section 
        for--
                    ``(A) new charter schools;
                    ``(B) replicable charter schools; and
                    ``(C) the expansion of charter schools;
            ``(3) the progress the entity made toward meeting the 
        priorities described in subsection (f)(2), as applicable;
            ``(4) how the entity met the objectives described in the 
        entity's application under subsection (e);
            ``(5) how the entity complied with, and ensured that 
        eligible applicants complied with, the assurances described in 
        the application; and
            ``(6) how the entity worked with authorized public 
        chartering agencies, including how the agencies worked with the 
        management company or leadership of the schools in which the 
        subgrants were awarded.
    ``(i) State Entity Defined.--For purposes of this section, the term 
`State entity' means--
            ``(1) a State educational agency;
            ``(2) a State charter school board; or
            ``(3) a Governor of a State.''.

SEC. 6. FACILITIES FINANCING ASSISTANCE.

    Section 5204 (20 U.S.C. 7221c) is amended to read as follows:

``SEC. 5204. FACILITIES FINANCING ASSISTANCE.

    ``(a) Grants to Eligible Entities.--
            ``(1) In general.--From the amount reserved under section 
        5202(b)(1), the Secretary shall award not less than 3 grants to 
        eligible entities that have applications approved under 
        subsection (d) to demonstrate innovative methods of assisting 
        charter schools to address the cost of acquiring, constructing, 
        and renovating facilities by enhancing the availability of 
        loans or bond financing.
            ``(2) Eligible entity defined.--For purposes of this 
        section, the term `eligible entity' means--
                    ``(A) a public entity, such as a State or local 
                governmental entity;
                    ``(B) a private nonprofit entity; or
                    ``(C) a consortium of entities described in 
                subparagraphs (A) and (B).
    ``(b) Grantee Selection.--
            ``(1) Evaluation of application.--The Secretary shall 
        evaluate each application submitted under subsection (d), and 
        shall determine whether the application is sufficient to merit 
        approval.
            ``(2) Distribution of grants.--The Secretary shall award at 
        least one grant to an eligible entity described in subsection 
        (a)(2)(A), at least one grant to an eligible entity described 
        in subsection (a)(2)(B), and at least one grant to an eligible 
        entity described in subsection (a)(2)(C), if applications are 
        submitted that permit the Secretary to do so without approving 
        an application that is not of sufficient quality to merit 
        approval.
    ``(c) Grant Characteristics.--Grants under subsection (a) shall be 
of a sufficient size, scope, and quality so as to ensure an effective 
demonstration of an innovative means of enhancing credit for the 
financing of charter school acquisition, construction, or renovation.
    ``(d) Applications.--
            ``(1) In general.--To receive a grant under subsection (a), 
        an eligible entity shall submit to the Secretary an application 
        in such form as the Secretary may reasonably require.
            ``(2) Contents.--An application submitted under paragraph 
        (1) shall contain--
                    ``(A) a statement identifying the activities 
                proposed to be undertaken with funds received under 
                subsection (a), including how the eligible entity will 
                determine which charter schools will receive 
                assistance, and how much and what types of assistance 
                charter schools will receive;
                    ``(B) a description of the involvement of charter 
                schools in the application's development and the design 
                of the proposed activities;
                    ``(C) a description of the eligible entity's 
                expertise in capital market financing;
                    ``(D) a description of how the proposed activities 
                will leverage the maximum amount of private-sector 
                financing capital relative to the amount of government 
                funding used and otherwise enhance credit available to 
                charter schools, including how the entity will offer a 
                combination of rates and terms more favorable than the 
                rates and terms that a charter school could receive 
                without assistance from the entity under this section;
                    ``(E) a description of how the eligible entity 
                possesses sufficient expertise in education to evaluate 
                the likelihood of success of a charter school program 
                for which facilities financing is sought; and
                    ``(F) in the case of an application submitted by a 
                State governmental entity, a description of the actions 
                that the entity has taken, or will take, to ensure that 
                charter schools within the State receive the funding 
                the charter schools need to have adequate facilities.
    ``(e) Charter School Objectives.--An eligible entity receiving a 
grant under this section shall use the funds deposited in the reserve 
account established under subsection (f) to assist one or more charter 
schools to access private sector capital to accomplish one or both of 
the following objectives:
            ``(1) The acquisition (by purchase, lease, donation, or 
        otherwise) of an interest (including an interest held by a 
        third party for the benefit of a charter school) in improved or 
        unimproved real property that is necessary to commence or 
        continue the operation of a charter school.
            ``(2) The construction of new facilities, including 
        predevelopment costs, or the renovation, repair, or alteration 
        of existing facilities, necessary to commence or continue the 
        operation of a charter school.
    ``(f) Reserve Account.--
            ``(1) Use of funds.--To assist charter schools to 
        accomplish the objectives described in subsection (e), an 
        eligible entity receiving a grant under this subsection (a) 
        shall, in accordance with State and local law, directly or 
        indirectly, alone or in collaboration with others, deposit the 
        funds received under subsection (a) (other than funds used for 
        administrative costs in accordance with subsection (g)) in a 
        reserve account established and maintained by the eligible 
        entity for this purpose. Amounts deposited in such account 
        shall be used by the eligible entity for one or more of the 
        following purposes:
                    ``(A) Guaranteeing, insuring, and reinsuring bonds, 
                notes, evidences of debt, loans, and interests therein, 
                the proceeds of which are used for an objective 
                described in subsection (e).
                    ``(B) Guaranteeing and insuring leases of personal 
                and real property for an objective described in 
                subsection (e).
                    ``(C) Facilitating financing by identifying 
                potential lending sources, encouraging private lending, 
                and other similar activities that directly promote 
                lending to, or for the benefit of, charter schools.
                    ``(D) Facilitating the issuance of bonds by charter 
                schools, or by other public entities for the benefit of 
                charter schools, by providing technical, 
                administrative, and other appropriate assistance 
                (including the recruitment of bond counsel, 
                underwriters, and potential investors and the 
                consolidation of multiple charter school projects 
                within a single bond issue).
            ``(2) Investment.--Funds received under this section and 
        deposited in the reserve account established under paragraph 
        (1) shall be invested in obligations issued or guaranteed by 
        the United States or a State, or in other similarly low-risk 
        securities.
            ``(3) Reinvestment of earnings.--Any earnings on funds 
        received under subsection (a) shall be deposited in the reserve 
        account established under paragraph (1) and used in accordance 
        with such subsection.
    ``(g) Limitation on Administrative Costs.--An eligible entity may 
use not more than 2.5 percent of the funds received under subsection 
(a) for the administrative costs of carrying out its responsibilities 
under this section (excluding subsection (k)).
    ``(h) Audits and Reports.--
            ``(1) Financial record maintenance and audit.--The 
        financial records of each eligible entity receiving a grant 
        under subsection (a) shall be maintained in accordance with 
        generally accepted accounting principles and shall be subject 
        to an annual audit by an independent public accountant.
            ``(2) Reports.--
                    ``(A) Grantee annual reports.--Each eligible entity 
                receiving a grant under subsection (a) annually shall 
                submit to the Secretary a report of its operations and 
                activities under this section.
                    ``(B) Contents.--Each annual report submitted under 
                subparagraph (A) shall include--
                            ``(i) a copy of the most recent financial 
                        statements, and any accompanying opinion on 
                        such statements, prepared by the independent 
                        public accountant reviewing the financial 
                        records of the eligible entity;
                            ``(ii) a copy of any report made on an 
                        audit of the financial records of the eligible 
                        entity that was conducted under paragraph (1) 
                        during the reporting period;
                            ``(iii) an evaluation by the eligible 
                        entity of the effectiveness of its use of the 
                        Federal funds provided under subsection (a) in 
                        leveraging private funds;
                            ``(iv) a listing and description of the 
                        charter schools served during the reporting 
                        period, including the amount of funds used by 
                        each school, the type of project facilitated by 
                        the grant, and the type of assistance provided 
                        to the charter schools;
                            ``(v) a description of the activities 
                        carried out by the eligible entity to assist 
                        charter schools in meeting the objectives set 
                        forth in subsection (e); and
                            ``(vi) a description of the characteristics 
                        of lenders and other financial institutions 
                        participating in the activities undertaken by 
                        the eligible entity under this section 
                        (excluding subsection (k)) during the reporting 
                        period.
                    ``(C) Secretarial report.--The Secretary shall 
                review the reports submitted under subparagraph (A) and 
                shall provide a comprehensive annual report to Congress 
                on the activities conducted under this section 
                (excluding subsection (k)).
    ``(i) No Full Faith and Credit for Grantee Obligation.--No 
financial obligation of an eligible entity entered into pursuant to 
this section (such as an obligation under a guarantee, bond, note, 
evidence of debt, or loan) shall be an obligation of, or guaranteed in 
any respect by, the United States. The full faith and credit of the 
United States is not pledged to the payment of funds which may be 
required to be paid under any obligation made by an eligible entity 
pursuant to any provision of this section.
    ``(j) Recovery of Funds.--
            ``(1) In general.--The Secretary, in accordance with 
        chapter 37 of title 31, United States Code, shall collect--
                    ``(A) all of the funds in a reserve account 
                established by an eligible entity under subsection 
                (f)(1) if the Secretary determines, not earlier than 2 
                years after the date on which the eligible entity first 
                received funds under this section excluding subsection 
                (k), that the eligible entity has failed to make 
                substantial progress in carrying out the purposes 
                described in subsection (f)(1); or
                    ``(B) all or a portion of the funds in a reserve 
                account established by an eligible entity under 
                subsection (f)(1) if the Secretary determines that the 
                eligible entity has permanently ceased to use all or a 
                portion of the funds in such account to accomplish any 
                purpose described in subsection (f)(1).
            ``(2) Exercise of authority.--The Secretary shall not 
        exercise the authority provided in paragraph (1) to collect 
        from any eligible entity any funds that are being properly used 
        to achieve one or more of the purposes described in subsection 
        (f)(1).
            ``(3)  Procedures.--The provisions of sections 451, 452, 
        and 458 of the General Education Provisions Act shall apply to 
        the recovery of funds under paragraph (1).
            ``(4) Construction.--This subsection shall not be construed 
        to impair or affect the authority of the Secretary to recover 
        funds under part D of the General Education Provisions Act.
    ``(k) Per-Pupil Facilities Aid Program.--
            ``(1) Definition of per-pupil facilities aid program..--In 
        this subsection, the term `per-pupil facilities aid program' 
        means a program in which a State makes payments, on a per-pupil 
        basis, to charter schools to provide the schools with 
        financing--
                    ``(A) that is dedicated solely for funding charter 
                school facilities; or
                    ``(B) a portion of which is dedicated for funding 
                charter school facilities.
            ``(2) Grants.--
                    ``(A) In general.--From the amount reserved under 
                section 5202(b)(1) remaining after the Secretary makes 
                grants under subsection (a), the Secretary shall make 
                grants, on a competitive basis, to States to pay for 
                the Federal share of the cost of establishing or 
                enhancing, and administering per-pupil facilities aid 
                programs.
                    ``(B) Period.--The Secretary shall award grants 
                under this subsection for periods of not more than 5 
                years.
                    ``(C) Federal share.--The Federal share of the cost 
                described in subparagraph (A) for a per-pupil 
                facilities aid program shall be not more than--
                            ``(i) 90 percent of the cost, for the first 
                        fiscal year for which the program receives 
                        assistance under this subsection;
                            ``(ii) 80 percent in the second such year;
                            ``(iii) 60 percent in the third such year;
                            ``(iv) 40 percent in the fourth such year; 
                        and
                            ``(v) 20 percent in the fifth such year.
                    ``(D) State share.--A State receiving a grant under 
                this subsection may partner with 1 or more 
                organizations to provide up to 50 percent of the State 
                share of the cost of establishing or enhancing, and 
                administering per-pupil facilities aid program.
                    ``(E) Multiple grants.--A State may receive more 
                than 1 grant under this subsection, so long as the 
                amount of such funds provided to charter schools 
                increases with each successive grant.
            ``(3) Use of funds.--
                    ``(A) In general.--A State that receives a grant 
                under this subsection shall use the funds made 
                available through the grant to establish or enhance, 
                and administer, a per-pupil facilities aid program for 
                charter schools in the State of the applicant.
                    ``(B) Evaluations; technical assistance; 
                dissemination.--From the amount made available to a 
                State through a grant under this subsection for a 
                fiscal year, the State may reserve not more than 5 
                percent to carry out evaluations, to provide technical 
                assistance, and to disseminate information.
                    ``(C) Supplement, not supplant..--Funds made 
                available under this subsection shall be used to 
                supplement, and not supplant, State, and local public 
                funds expended to provide per pupil facilities aid 
                programs, operations financing programs, or other 
                programs, for charter schools.
            ``(4) Requirements.--
                    ``(A) Voluntary participation.--No State may be 
                required to participate in a program carried out under 
                this subsection.
                    ``(B) State law.--
                            ``(i) In general.--To be eligible to 
                        receive a grant under this subsection, a State 
                        shall establish or enhance, and administer, a 
                        per-pupil facilities aid program for charter 
                        schools in the State, that--
                                    ``(I) is specified in State law; 
                                and
                                    ``(II) provides annual financing, 
                                on a per-pupil basis, for charter 
                                school facilities.
                            ``(ii) Special rule.--A State that is 
                        required under State law to provide its charter 
                        schools with access to adequate facility space 
                        may be eligible to receive a grant under this 
                        subsection if the State agrees to use the funds 
                        to develop a per-pupil facilities aid program 
                        consistent with the requirements of this 
                        subsection.
            ``(5) Applications.--To be eligible to receive a grant 
        under this subsection, a State shall submit an application to 
        the Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.''.

SEC. 7. NATIONAL ACTIVITIES.

    Section 5205 (20 U.S.C. 7221d) is amended to read as follows:

``SEC. 5205. NATIONAL ACTIVITIES.

    ``(a) In General.--From the amount reserved under section 
5202(b)(2), the Secretary shall--
            ``(1) use not less than 50 percent of such funds to award 
        startup grants in accordance with subsection (b); and
            ``(2) use the remainder of such funds to--
                    ``(A) disseminate technical assistance to State 
                entities in awarding subgrants under section 5203;
                    ``(B) disseminate best practices; and
                    ``(C) evaluate the impact of the charter school 
                program carried out under this subpart.
    ``(b) Startup Grants.--
            ``(1) In general.--The Secretary shall make grants, on a 
        competitive basis, to eligible applicants for the purpose of 
        carrying out the activities described in section 5202(a)(1).
            ``(2) Eligible applicant defined.--For purposes of this 
        subsection, the term `eligible applicant' means an eligible 
        applicant that desires to open a charter school in--
                    ``(A) a State that did not apply for a grant under 
                section 5203;
                    ``(B) a State that did not receive a grant under 
                section 5203; or
                    ``(C) a State that received a grant under section 
                5203 and is in the 4th or 5th year of a grant period 
                for such grant.
    ``(c) Contracts and Grants.--The Secretary may carry out any of the 
activities described in this section directly or through grants to, or 
contracts or cooperative agreements with, State educational agencies, 
local educational agencies, and other public and private agencies.''.

SEC. 8. RECORDS TRANSFER.

    Section 5208 (20 U.S.C. 7221g) is amended--
            (1) by inserting ``as quickly as possible and'' before ``to 
        the extent practicable''; and
            (2) by striking ``section 602'' and inserting ``section 
        602(14)''.

SEC. 9. DEFINITIONS.

    Section 5210 (20 U.S.C. 7221i) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``and'' at the end of subparagraph 
                (K);
                    (B) by striking the period at the end of 
                subparagraph (L) and inserting ``; and''; and
                    (C) by adding at the end, the following:
                    ``(M) may serve prekindergarten or post secondary 
                students.'';
            (2) in paragraph (3), by striking ``under section 
        5203(d)(3)''; and
            (3) by inserting at the end the following:
            ``(5) Replicable charter school model.--The term 
        `replicable charter school model' means a high-quality charter 
        school that will open a new campus under an existing charter.
            ``(6) Expansion of a high-quality charter school.--The term 
        `expansion of a high-quality charter school' means a high-
        quality charter school that either significantly increases its 
        enrollment or adds one or more grades to its school.
            ``(7) High-quality charter school.--The term `high-quality 
        charter school' is a charter school that--
                    ``(A) shows evidence of strong academic results;
                    ``(B) has no significant issues in the areas of 
                student safety, financial management, or statutory or 
                regulatory compliance;
                    ``(C) has demonstrated success in significantly 
                increasing student academic achievement and attainment 
                for all students, including educationally disadvantaged 
                students described in section 1111(b)(2)(C)(v)(II)(aa), 
                served by charter schools; and
                    ``(D) has demonstrated success in closing historic 
                achievement gaps for the subgroups of students 
                described in section 1111(b)(2)(C)(v)(II).''.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    Section 5211 (20 U.S.C. 7221j) is amended to read as follows:

``SEC. 5211. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$300,000,000 for fiscal year 2012 and each of the succeeding 5 fiscal 
years.''.

SEC. 11. CONFORMING AMENDMENTS.

    (a) Repeal.--Subpart 2 of part B of title V (20 U.S.C. 7223 et 
seq.) is repealed.
    (b) Table of Contents.--The table of contents in section 2 is 
amended--
            (1) by striking the item relating to section 5203 and 
        inserting:

``Sec. 5203. Grants to support quality charter schools.'';
        and
            (2) by striking the item relating to section 5204 and 
        inserting:

``Sec. 5204. Facilities Financing Assistance.''.
                                 <all>