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<bill bill-stage="Introduced-in-Senate" dms-id="A1" public-private="public">
	<form>
		<distribution-code display="yes">II</distribution-code>
		<congress>112th CONGRESS</congress>
		<session>1st Session</session>
		<legis-num>S. 1566</legis-num>
		<current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber>
		<action>
			<action-date date="20110915">September 15, 2011</action-date>
			<action-desc><sponsor name-id="S339">Mr. Kirk</sponsor> (for himself,
			 <cosponsor name-id="S289">Mr. Alexander</cosponsor>, <cosponsor name-id="S300">Mr. Burr</cosponsor>, <cosponsor name-id="S305">Mr.
			 Isakson</cosponsor>, <cosponsor name-id="S197">Mr. McCain</cosponsor>,
			 <cosponsor name-id="S260">Mr. Roberts</cosponsor>, <cosponsor name-id="S350">Mr. Rubio</cosponsor>, and <cosponsor name-id="S318">Mr.
			 Wicker</cosponsor>) introduced the following bill; which was read twice and
			 referred to the <committee-name committee-id="SSHR00">Committee on Health,
			 Education, Labor, and Pensions</committee-name></action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title>To amend the Elementary and Secondary Education Act of
		  1965 regarding public charter schools.</official-title>
	</form>
	<legis-body>
		<section id="S1" section-type="section-one"><enum>1.</enum><header>Short
			 title</header><text display-inline="no-display-inline">This Act may be cited as
			 the <quote><short-title>Empowering Parents through Quality
			 Charter Schools Act</short-title></quote>.</text>
		</section><section id="H70E16363E18043A696A2C06BACF8246E"><enum>2.</enum><header>References</header><text display-inline="no-display-inline">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			 whenever in this Act a section or other provision is amended or repealed, such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.).</text>
		</section><section id="H8B2F6099D4814A67AD03865D822E62C0"><enum>3.</enum><header>Purpose</header><text display-inline="no-display-inline">Section 5201 (20 U.S.C. 7221) is amended to
			 read as follows:</text>
			<quoted-block display-inline="no-display-inline" id="HEFF7485EFEAE4867A78CA007FEB33029" style="OLC">
				<section id="HE6F9E2C3270A4C469E9BB5E2D916C788"><enum>5201.</enum><header>Purpose</header><text display-inline="no-display-inline">It is the purpose of this subpart to—</text>
					<paragraph id="H276A2587483F473396AD96947563936C"><enum>(1)</enum><text>provide financial
				assistance for the planning, program design, and initial implementation of
				charter schools;</text>
					</paragraph><paragraph id="H67B4A22BDDB94055A5016BB3899E4D45"><enum>(2)</enum><text>expand the number
				of high-quality charter schools available to students across the Nation;</text>
					</paragraph><paragraph id="H1224407087B6430FAA35484595575C35"><enum>(3)</enum><text>evaluate the
				impact of such schools on student achievement, families, and communities, and
				share best practices between charter schools and other public schools;</text>
					</paragraph><paragraph id="HD7FFA70AD09F47E587299003030E4AEB"><enum>(4)</enum><text>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;</text>
					</paragraph><paragraph id="HD50E186086A54B829F40D2A8614F71AA"><enum>(5)</enum><text display-inline="yes-display-inline">improve student services to increase
				opportunities for students who are children with disabilities, English language
				learners, and other traditionally underserved students to attend charter
				schools and meet challenging State academic achievement standards; and</text>
					</paragraph><paragraph id="HBD3C7DCD23A74434AA73E86A4BCDB973"><enum>(6)</enum><text display-inline="yes-display-inline">support efforts to strengthen the charter
				school authorizing process to improve performance management, including
				transparency, monitoring, and evaluation of such
				schools.</text>
					</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
		</section><section id="H28CFC283D97B45A4B3FA389B945D6DDB"><enum>4.</enum><header>Program
			 authorized</header><text display-inline="no-display-inline">Section 5202 (20
			 U.S.C. 7221a) is amended to read as follows:</text>
			<quoted-block display-inline="no-display-inline" id="H44CC3F84417746418DF1BCC3ADF13D06" style="OLC">
				<section id="HA271BF1CE8584B36B01B3BEBA8F414BE"><enum>5202.</enum><header>Program
				authorized</header>
					<subsection id="HB6771432EA2C4A9EBDB59CFE8DF9E8A1"><enum>(a)</enum><header>In
				general</header><text display-inline="yes-display-inline">The Secretary is
				authorized to carry out a charter school program that supports charter schools
				that serve elementary school and secondary school students by—</text>
						<paragraph id="H259E3BEEC2AA4DDE99F2C69E8DBFEA32"><enum>(1)</enum><text>supporting the
				startup, replication, and expansion of charter schools;</text>
						</paragraph><paragraph id="HD552087EA80E4B7E9C59EC45DBC97D66"><enum>(2)</enum><text>assisting charter
				schools in accessing credit to acquire and renovate facilities for school use;
				and</text>
						</paragraph><paragraph id="H276F86A1DDA144FA9C7E22F06898457A"><enum>(3)</enum><text display-inline="yes-display-inline">carrying out national activities to
				support—</text>
							<subparagraph id="H960ABEEB8DFC435C8C41832EC6B24443"><enum>(A)</enum><text>charter school
				development;</text>
							</subparagraph><subparagraph id="H2631B54CDA884E518C34266CBA8B5CE8"><enum>(B)</enum><text>the dissemination
				of best practices of charter schools for all schools; and</text>
							</subparagraph><subparagraph id="HD622A68944CE4F449CF30D9F7D160C6A"><enum>(C)</enum><text>the evaluation of
				the impact of the program on schools participating in the program.</text>
							</subparagraph></paragraph></subsection><subsection id="H154CDA4EBE8B4B94AE3A07F5EE8EC78C"><enum>(b)</enum><header>Funding
				Allotment</header><text>From the amount made available under section 5211 for a
				fiscal year, the Secretary shall—</text>
						<paragraph id="HE59FBACE071C4AC1B8F75F2CD09320CE"><enum>(1)</enum><text>reserve 15 percent
				to support charter school facilities assistance under section 5204;</text>
						</paragraph><paragraph id="HFAC253FE70B7406DBC93DD2264565CA1"><enum>(2)</enum><text>reserve not more
				than 5 percent to carry out national activities under section 5205; and</text>
						</paragraph><paragraph id="HAD05F3F208DA44E3A077AA55F3F025A9"><enum>(3)</enum><text>use the remaining
				amount after the Secretary reserves funds under paragraphs (1) and (2) to carry
				out section 5203.</text>
						</paragraph></subsection><subsection id="H6C2A006C075A48C5B01600BDC2E03668"><enum>(c)</enum><header>Prior grants and
				subgrants</header><text display-inline="yes-display-inline">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.</text>
					</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
		</section><section id="H3D6C6D6B5544491AB538F81B2C69C500"><enum>5.</enum><header>Grants to support
			 high-quality charter schools</header><text display-inline="no-display-inline">Section 5203 (20 U.S.C. 7221b) is amended to
			 read as follows:</text>
			<quoted-block display-inline="no-display-inline" id="H8563498FD7A24D31AD2FB3DEA5E521F1" style="OLC">
				<section id="H4E5C9718B03C4AB2B2C3757EB231FA51"><enum>5203.</enum><header>Grants to
				support high-quality charter schools</header>
					<subsection id="id518E8B6F396D45968E28ACB8E1AF496F"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
						<paragraph id="idAD6F61D1F6684680A004A366F9CE8821"><enum>(1)</enum><header>Charter
				management organization</header><text>The term <term>charter management
				organization</term> means a nonprofit organization that operates, manages, or
				oversees multiple charter schools by centralizing or sharing certain functions
				and resources among schools, or a group or consortium of such
				organizations.</text>
						</paragraph><paragraph id="id7D44074BEA764C75900553C933580DB8"><enum>(2)</enum><header>Eligible
				entity</header><text>The term <term>eligible entity</term> means—</text>
							<subparagraph id="idE56A2BD8485748BB802B0DBC873F8595"><enum>(A)</enum><text>a State
				entity;</text>
							</subparagraph><subparagraph id="id0B081F77C94B4AA5888F77E8DCEC6E91"><enum>(B)</enum><text>an authorized
				public chartering agency;</text>
							</subparagraph><subparagraph id="id115C4F1C4A174C58974A8C6D31C096E3"><enum>(C)</enum><text>a local
				educational agency; or</text>
							</subparagraph><subparagraph id="id91C8B8E1F1464DE29E8223834E63C709"><enum>(D)</enum><text>a charter
				management organization.</text>
							</subparagraph></paragraph><paragraph id="id17AC2B9F4E0F4166B8257C844CA396A6"><enum>(3)</enum><header>State
				entity</header><text>The term <term>State entity</term> means—</text>
							<subparagraph id="HE6758B750C9A414086C012ABFB56D3CC"><enum>(A)</enum><text>a State
				educational agency;</text>
							</subparagraph><subparagraph commented="no" id="HA25A57D49E5D40E48BCCF5B1E038566C"><enum>(B)</enum><text>a State charter
				school board; or</text>
							</subparagraph><subparagraph id="H1F7817B1BA374A69A00CDDD32ED15B28"><enum>(C)</enum><text>a Governor of a
				State.</text>
							</subparagraph></paragraph></subsection><subsection id="H722C0268E7174ABB92F2D9BBF77E060F"><enum>(b)</enum><header>Program
				authorized</header><text display-inline="yes-display-inline">From the amount
				reserved under section 5202(b)(3), the Secretary shall award grants, on a
				competitive basis, to eligible entities to enable—</text>
						<paragraph id="H4E07224EAE1840DD9411009C939E4034"><enum>(1)</enum><text>eligible entities
				described in subparagraph (A), (B), or (C) of subsection (a)(2) to—</text>
							<subparagraph id="id03E394FC724D4450B0B91F52768A9D16"><enum>(A)</enum><text>award subgrants
				to eligible applicants—</text>
								<clause id="HC09314D8A6CF4BC2AAEAE11E28D67D4B"><enum>(i)</enum><text>to
				open new charter schools;</text>
								</clause><clause id="HCFB9AB53C5F7489297D056256F24B43B"><enum>(ii)</enum><text>to open
				replicable, high-quality charter school models; or</text>
								</clause><clause id="H106409F0084947998D21AA4EF7FBECEE"><enum>(iii)</enum><text>to expand
				high-quality charter schools; and</text>
								</clause></subparagraph><subparagraph id="HD0FD697825634A7E9B717FF492EC151C"><enum>(B)</enum><text display-inline="yes-display-inline">provide technical assistance to eligible
				applicants and authorized public chartering agencies in carrying out the
				activities described in subparagraph (A) and work with authorized public
				chartering agencies in the State to improve authorizing quality; or</text>
							</subparagraph></paragraph><paragraph id="idB6CA881D9DFC4D3A994FBD3A4D6AA82E"><enum>(2)</enum><text display-inline="yes-display-inline">eligible entities described in subparagraph
				(B), (C), or (D) of subsection (a)(2) to open new charter schools or replicable
				high-quality charter school models or to expand high-quality charter
				schools.</text>
						</paragraph></subsection><subsection id="HE87A7194A5F040D3863C771AA3660148"><enum>(c)</enum><header>Uses of
				funds</header>
						<paragraph id="H0D945477E1554743858D7722CA82275D"><enum>(1)</enum><header>Special rule for
				subgranting entities</header><text>An eligible entity receiving a grant under
				subsection (b)(1) shall—</text>
							<subparagraph display-inline="no-display-inline" id="HA2B0579DFDD447C99915456CBF293C43"><enum>(A)</enum><text display-inline="yes-display-inline">use 90 percent of the grant funds to carry
				out subsection (b)(1)(A), in accordance with the quality charter school program
				described in the entity’s application approved pursuant to
				<internal-xref idref="HF96749AAA0C840509F55B00D6D5233F8" legis-path="5203.(f)">subsection (g)</internal-xref>; and</text>
							</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H06F9BA917561483BA3328C45D3FB50E3"><enum>(B)</enum><text>reserve 10 percent
				of such funds to carry out the activities described in
				<internal-xref idref="HD0FD697825634A7E9B717FF492EC151C" legis-path="5203.(a)(2)">subsection (b)(1)(B)</internal-xref>, of which not
				more than 30 percent may be used for administrative costs which may include
				technical assistance.</text>
							</subparagraph></paragraph><paragraph id="HF9102BBDFD984EB397A8F9CBA09C639F"><enum>(2)</enum><header>Contracts and
				grants</header><text display-inline="yes-display-inline">An eligible entity may
				use a grant received under this section to carry out the activities described
				in subsection (b) directly or through grants, contracts, or cooperative
				agreements.</text>
						</paragraph></subsection><subsection id="H194E26BEB09148408D253F26FC2D37E2"><enum>(d)</enum><header>Program periods;
				peer review; diversity of projects</header>
						<paragraph commented="no" id="HA8A098C04A0A4C5D83D5665434113D30"><enum>(1)</enum><header>Program
				periods</header>
							<subparagraph id="HBD38E5FEC21E448A91D9F12CFB977A28"><enum>(A)</enum><header>Grants</header><text display-inline="yes-display-inline">A grant awarded by the Secretary to an
				eligible entity under this section shall be for a period of 5 years.</text>
							</subparagraph><subparagraph id="H4D8E666CE593449B98B855F018001ECB"><enum>(B)</enum><header>Subgrants</header><text>A
				subgrant awarded by an eligible entity under this section shall be for a period
				of not more than 5 years, of which an eligible applicant may use not more than
				18 months for planning and program design.</text>
							</subparagraph></paragraph><paragraph id="HDB9E57FC70EE42C4AF1E8D4B5AFBF895"><enum>(2)</enum><header>Peer
				Review</header><text display-inline="yes-display-inline">The Secretary, and
				each eligible entity awarding subgrants under this section, shall use a peer
				review process to review applications for assistance under this section.</text>
						</paragraph><paragraph id="HD71F79F1B7F14622BAC65EF23602FA6A"><enum>(3)</enum><header>Diversity of
				Projects</header><text>Each eligible entity awarding subgrants under this
				section shall award subgrants in a manner that, to the extent practicable and
				applicable, ensures that such subgrants—</text>
							<subparagraph id="HEF67907675AE4611B45F0D1F36CD14DB"><enum>(A)</enum><text>are distributed
				throughout different areas, including urban, suburban, and rural areas;
				and</text>
							</subparagraph><subparagraph id="HD349B461DD594F0E8D0FFC79FE30ADFA"><enum>(B)</enum><text>will assist
				charter schools representing a variety of educational approaches.</text>
							</subparagraph></paragraph></subsection><subsection id="H46F502F1DA8441EE80A43AEF9C8BAEEC"><enum>(e)</enum><header>Limitations</header>
						<paragraph id="HA95C1A99E6054FF5884FDF2A4068C59A"><enum>(1)</enum><header>Grants</header><text>An
				eligible entity may not receive more than 1 grant under this section for a
				5-year period, unless the eligible entity demonstrates to the Secretary that,
				for each charter school supported under the first grant, the education results,
				in the areas described in subparagraphs (A) and (D) of section 5210(6), for the
				students enrolled in the charter school have improved for not less than 3
				consecutive years during the grant period.</text>
						</paragraph><paragraph id="H350526D2B00B4676B991F4AEC9C0D9D1"><enum>(2)</enum><header>Subgrants</header><text>An
				eligible applicant may not receive more than 1 subgrant under this section per
				charter school for a 5-year period.</text>
						</paragraph></subsection><subsection id="H1971BD90DDA9445C89335046F54CEF06"><enum>(f)</enum><header>Applications</header><text>An
				eligible entity desiring to receive a grant under this section shall submit an
				application to the Secretary at such time and in such manner as the Secretary
				may require. The application shall include the following:</text>
						<paragraph id="HA939220957784B559CFC8B0910867E54"><enum>(1)</enum><text display-inline="yes-display-inline">A description of the entity’s objectives in
				running a quality charter school program under this section and how the
				objectives of the program will be carried out, including—</text>
							<subparagraph id="HFC9CD9A75C0E4A47A9EA7C17E77FACC4"><enum>(A)</enum><text>a description of
				how the entity will—</text>
								<clause id="id3E4DE6F68615467AB3C66E52BC77B05C"><enum>(i)</enum><text>support both new
				charter school startup and the expansion and replication of high-quality
				charter school models;</text>
								</clause><clause id="H90CE8F037DC043DF87212470C20AC388"><enum>(ii)</enum><text display-inline="yes-display-inline">will work with charter schools to promote
				inclusion of all students and support all students once they are enrolled to
				promote retention;</text>
								</clause><clause id="H99E2A11BE54849BF9021E9E169434FB0"><enum>(iii)</enum><text>will work with
				charter schools on recruitment practices, including efforts to engage groups
				that may otherwise have limited opportunities to participate in charter
				schools;</text>
								</clause><clause id="HF2A3BF9C0C004B4C92D9AEC508D0412E"><enum>(iv)</enum><text>will share best
				and promising practices between charter schools and other public
				schools;</text>
								</clause><clause id="H147C51503D0C4BC5BB81B49E8D19601A"><enum>(v)</enum><text>will ensure the
				charter schools the eligible entity supports can meet the educational needs of
				their students, including students who are children with disabilities and
				English language learners; and</text>
								</clause><clause id="H13E4CB5CA3664EEABB08998B88A65D45"><enum>(vi)</enum><text>will support
				efforts to increase quality initiatives, including meeting the quality
				authorizing elements described in
				<internal-xref idref="H3772F733654A458FB9B897CCF0282F47" legis-path="q:H8563498FD7A24D31AD2FB3DEA5E521F1:5203.(e)(2)(E)">paragraph
				(2)(D)(ii)</internal-xref>;</text>
								</clause></subparagraph><subparagraph id="idDF7612F6742842D099A695318D2FC8FE"><enum>(B)</enum><text>in the case of
				any eligible entity that will be awarding subgrants under subsection (b)(1)(A),
				a description of how the entity—</text>
								<clause id="HCF6C6CB8E2564A1DB849BC3F508F4AF2"><enum>(i)</enum><text>will inform
				eligible charter schools, developers, authorized public chartering agencies,
				and other entities of the availability of funds under the program;</text>
								</clause><clause id="H84C9A3D7351F446F8188D362FA44B3EC"><enum>(ii)</enum><text display-inline="yes-display-inline">will work with eligible applicants to
				ensure that the applicants access all Federal funds that they are eligible to
				receive, and help the charter schools supported by the applicants and the
				students attending the charter schools—</text>
									<subclause id="HB04705898B1F46C1A8BAB3313214EF99"><enum>(I)</enum><text>participate in the
				Federal programs in which the schools and students are eligible to participate;
				and</text>
									</subclause><subclause id="HF720470DD7A74498BCCDB00DDA799B11"><enum>(II)</enum><text>receive the
				commensurate share of Federal funds the schools and students are eligible to
				receive under such programs;</text>
									</subclause></clause><clause id="H7E8E4F66625149C9BA5FDC48E7ADD462"><enum>(iii)</enum><text>will ensure
				eligible applicants that receive a subgrant under the entity’s program are
				prepared to continue to operate the charter schools receiving the subgrant
				funds once the funds have expired;</text>
								</clause><clause id="idEC2FF327E871452AA5AFD3C934C66419"><enum>(iv)</enum><text>will support
				charter schools in local educational agencies with large numbers of schools
				that are required to comply with the requirements of section 1116(b);
				and</text>
								</clause><clause id="HB913D5348E9C43E082665C2A2AF1747F"><enum>(v)</enum><text display-inline="yes-display-inline">will carry out the subgrant competition,
				including—</text>
									<subclause id="HC2CF1D7213BC483EB4FA5037B8B4C24B"><enum>(I)</enum><text>a description of
				the application each eligible applicant desiring to receive a subgrant will
				submit, which application shall include—</text>
										<item id="H4DACF16630F7440B855941026291366E"><enum>(aa)</enum><text>a
				description of the roles and responsibilities of eligible applicants, partner
				organizations, and management organizations, including the administrative and
				contractual roles and responsibilities; and</text>
										</item><item id="H126CBC7C642C43EEA713A58647252AA2"><enum>(bb)</enum><text>a
				description of the quality controls agreed to between the eligible applicant
				and the authorized public chartering agency involved, such as a contract or
				performance agreement, and how a school’s performance on the State’s academic
				accountability system will be a primary factor for renewal; and</text>
										</item></subclause><subclause id="H50D27F3E408F46E78D74395158780D52"><enum>(II)</enum><text>a description of
				how the entity will review applications;</text>
									</subclause></clause></subparagraph><subparagraph commented="no" id="HB23FA95C420A49BAACDB7C86B9A15585"><enum>(C)</enum><text>except in the case
				of an eligible entity described in subsection (a)(3)(A), a description of how
				the entity—</text>
								<clause commented="no" id="H6338148CD6BF42749BBB1851E6990C5E"><enum>(i)</enum><text>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</text>
								</clause><clause commented="no" id="HA13FF31254DB475995F5AC6386598388"><enum>(ii)</enum><text>will work with
				the State educational agency to adequately operate the entity’s program under
				this section, where applicable;</text>
								</clause></subparagraph><subparagraph id="H8243DA80F4F2430BAD270A8EB0CEF944"><enum>(D)</enum><text>in the case of an
				eligible entity that is a State entity, a description of the extent to which
				the entity—</text>
								<clause id="H173EDF1687F648A3844F956AE96C90D5"><enum>(i)</enum><text>is
				able to meet and carry out the priorities described in
				<internal-xref idref="H08997D19F7F24DFF8A1281083FDB624F" legis-path="5203.(g)(2)">subsection (g)(2)</internal-xref>; and</text>
								</clause><clause id="H483AB95C0AFF493EBB4DEBD67472B4C4"><enum>(ii)</enum><text display-inline="yes-display-inline">is working to develop or strengthen a
				cohesive statewide system to support the opening of new charter schools and
				replicable, high-quality charter school models, and expanding high-quality
				charter schools; and</text>
								</clause></subparagraph><subparagraph id="H5E1384211236442B8BFAE7AFABDCB2A1"><enum>(E)</enum><text display-inline="yes-display-inline">in the case of an entity that partners with
				an outside organization to carry out the entity’s quality charter school
				program, in whole or in part, of the roles and responsibilities of this
				partner.</text>
							</subparagraph></paragraph><paragraph id="H84F10A1003114BFC819E7201A823C2AE"><enum>(2)</enum><text display-inline="yes-display-inline">Assurances, including a description of how
				the assurances will be met, that—</text>
							<subparagraph id="id1A6F2CB6072C45A3B9158E7715BBD431"><enum>(A)</enum><text>the eligible
				entity, if awarding subgrants, will—</text>
								<clause id="idA1164B4B0140454C8976135B2F04AC0C"><enum>(i)</enum><text>consider
				applications from eligible charter schools, authorized public chartering
				agencies, charter management organizations, and other entities as applicable
				under State law; and</text>
								</clause><clause id="HC126E776689E4BB6BB03668CEE7DB1A1"><enum>(ii)</enum><text>provide adequate
				technical assistance to eligible applicants to—</text>
									<subclause id="HA6DDFAB5B5BE4D758BB23146A19405FE"><enum>(I)</enum><text>meet the
				objectives described in clauses (ii) and (iii) of
				<internal-xref idref="HFC9CD9A75C0E4A47A9EA7C17E77FACC4" legis-path="5203.(e)(1)(A)">paragraph (1)(A)</internal-xref> and
				<internal-xref idref="H562B0DB6EF6F4A4DBEA1747210DD7033" legis-path="5203.(e)(2)(B)">subparagraph (B)</internal-xref>; and</text>
									</subclause><subclause id="H4F6EA539C6FB44AF9B3BF7C8E9E88A9E"><enum>(II)</enum><text>enroll
				traditionally underserved students, including students who are children with
				disabilities and English language learners, to promote an inclusive education
				environment;</text>
									</subclause></clause></subparagraph><subparagraph id="HDF004736322C4D4DA3B3A38BA3C69493"><enum>(B)</enum><text display-inline="yes-display-inline">each charter school receiving funds under
				the entity’s program will have a high degree of autonomy over budget and
				operations;</text>
							</subparagraph><subparagraph id="H562B0DB6EF6F4A4DBEA1747210DD7033"><enum>(C)</enum><text display-inline="yes-display-inline">the entity will support charter schools in
				meeting the educational needs of their students as described in
				<internal-xref idref="H147C51503D0C4BC5BB81B49E8D19601A" legis-path="q:H8563498FD7A24D31AD2FB3DEA5E521F1:5203.(e)(1)(A)(x)">paragraph
				(1)(A)(v)</internal-xref>;</text>
							</subparagraph><subparagraph id="HC019FE44087E4A4ABC6B0DE5BAF7A23B"><enum>(D)</enum><text>in the case of an
				eligible entity that is a State entity—</text>
								<clause id="id692A63A17A2C49278ED7B70A08A242B5"><enum>(i)</enum><text>the entity will
				ensure that the authorized public chartering agency of any charter school that
				receives funds under the entity’s program—</text>
									<subclause id="H65D52AC5C47A40B9A41D8855546E1CA4"><enum>(I)</enum><text>ensures that the
				charter school is meeting the obligations under this Act, part B of the
				Individuals with Disabilities Education Act, title VI of the Civil Rights Act
				of 1964, and section 504 of the Rehabilitation Act of 1973; and</text>
									</subclause><subclause id="HB7C0E13C75914929B3CDA945EF740802"><enum>(II)</enum><text>adequately
				monitors and helps the schools in recruiting, enrolling, and meeting the needs
				of all students, including students who are children with disabilities and
				English language learners; and</text>
									</subclause></clause><clause id="H3772F733654A458FB9B897CCF0282F47"><enum>(ii)</enum><text display-inline="yes-display-inline">the entity will promote quality
				authorizing, such as through providing technical assistance, to support all
				authorized public chartering agencies in the State to improve the monitoring of
				their charter schools, including by—</text>
									<subclause id="H4837D5BE0C0C4338AE2A1223C44FE031"><enum>(I)</enum><text>using annual
				performance data, which may include graduation rates and student growth data,
				as appropriate, to measure the progress of their schools toward becoming
				high-quality charter schools; and</text>
									</subclause><subclause id="H482B68012B0541F4B37DA1E7EF76240D"><enum>(II)</enum><text>reviewing the
				schools’ independent, annual audits of financial statements conducted in
				accordance with generally accepted accounting principles, and ensuring any such
				audits are publically reported.</text>
									</subclause></clause></subparagraph></paragraph><paragraph id="HBF86D255185E44C29962AEFEAA0854B6"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text>
						</paragraph></subsection><subsection id="HF96749AAA0C840509F55B00D6D5233F8"><enum>(g)</enum><header>Selection
				criteria; priority</header>
						<paragraph id="H95E707102E1948F49A3BE646668DEE89"><enum>(1)</enum><header>Selection
				criteria</header><text display-inline="yes-display-inline">The Secretary shall
				award grants to eligible entities under this section on the basis of the
				quality of the applications submitted under
				<internal-xref idref="H1971BD90DDA9445C89335046F54CEF06" legis-path="5203.(f)">subsection (f)</internal-xref>, after taking into
				consideration—</text>
							<subparagraph id="HC5A1EFD058914642A9272037E41C0C99"><enum>(A)</enum><text>the degree of
				flexibility afforded by the State’s public charter school law and, in the case
				of an eligible entity described in subsection (a)(2)(A), how the entity will
				work to maximize the flexibility provided to charter schools under the
				law;</text>
							</subparagraph><subparagraph id="H39B2E46624954E81A8CDD18215B3900F"><enum>(B)</enum><text>the quality of the
				strategy for assessing achievement of the entity's objectives under subsection
				(f)(1);</text>
							</subparagraph><subparagraph id="H1DFB0B1C23584591B4BEC2D71A9C0D6E"><enum>(C)</enum><text>the likelihood
				that the eligible entity, and any eligible applicants receiving subgrants from
				the eligible entity, will meet those objectives and improve educational results
				for students;</text>
							</subparagraph><subparagraph id="H690468ED12FF4B3A9B589D5FC74BAA75"><enum>(D)</enum><text>the proposed
				number of new charter schools to be opened, and the number of high-quality
				charter schools to be replicated or expanded under the program;</text>
							</subparagraph><subparagraph id="HA284A0AC87BC4CB1831DFB0E5F1074AB"><enum>(E)</enum><text>in the case of an
				eligible entity awarding subgrants under subsection (b)(1)(A), the entity’s
				plan to—</text>
								<clause id="H990ABFD337F447B98CAA7BD594F635D4"><enum>(i)</enum><text>adequately monitor
				the eligible applicants receiving subgrants under the entity’s program;</text>
								</clause><clause id="HEA6C216379C44EC4A11F4ABAB384A7DF"><enum>(ii)</enum><text>work with the
				authorized public chartering agencies involved to avoid duplication of work for
				the charter schools and authorized public chartering agencies; and</text>
								</clause><clause id="H06BCB03A222C4DE3A9231DDF757BDAD8"><enum>(iii)</enum><text>provide adequate
				technical assistance, as described in the entity’s application under
				<internal-xref idref="H1971BD90DDA9445C89335046F54CEF06" legis-path="5203.(e)">subsection (f)</internal-xref>, for the eligible
				applicants receiving subgrants under the entity’s program; and</text>
								</clause></subparagraph><subparagraph id="H6B661E87145E437189064DD256DB3600"><enum>(F)</enum><text>the entity’s plan
				to support quality authorizing efforts in the State, consistent with the
				objectives under subsection (f)(1).</text>
							</subparagraph></paragraph><paragraph id="H08997D19F7F24DFF8A1281083FDB624F"><enum>(2)</enum><header>Priority</header><text>In
				selecting State entities to receive a portion of the grants awarded under this
				section, the Secretary shall give priority to State entities to the extent that
				they meet the following criteria:</text>
							<subparagraph commented="no" id="HFE4A17DD21C547B1BB43E33E0040C326"><enum>(A)</enum><text display-inline="yes-display-inline">In the case in which a State entity is
				located in a State that allows an entity other than the State educational
				agency to be an authorized public chartering agency or a State in which only a
				local educational agency may be an authorized public chartering agency, the
				State has an appeals process for the denial of an application for a charter
				school.</text>
							</subparagraph><subparagraph id="H479DB05C1B204BDFBDC2FD0E41FE68A4"><enum>(B)</enum><text>The State entity
				is located in a State that ensures equitable financing, as compared to
				traditional public schools, for charter schools and students in a prompt
				manner.</text>
							</subparagraph><subparagraph id="H0F08246ED6E74A0398D3033C32FF7478"><enum>(C)</enum><text>The State entity
				is located in a State that uses charter schools and best practices from charter
				schools to help improve struggling schools and local educational
				agencies.</text>
							</subparagraph><subparagraph id="H2DEE0058D8F149A2B400DCB42E51E7D5"><enum>(D)</enum><text>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.</text>
							</subparagraph><subparagraph id="idC7A18EC4D5B640218627C8521C887E24"><enum>(E)</enum><text>The State entity
				supports charter schools that support at-risk students through activities such
				as dropout prevention or dropout recovery.</text>
							</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H7AFDA9AFEC1443F09705137579310AFD"><enum>(h)</enum><header>Local uses of
				funds</header><text>An eligible applicant receiving a subgrant under this
				section shall use such funds to open new charter schools or replicable,
				high-quality charter school models, or expand existing high-quality charter
				schools.</text>
					</subsection><subsection id="H8A4C78739C854E0EA3846404BEBB5E6D"><enum>(i)</enum><header>Reporting
				requirements</header><text display-inline="yes-display-inline">Each eligible
				entity receiving a grant under this section shall submit to the Secretary, at
				the end of the third year of the 5-year grant period and at the end of such
				grant period, a report on—</text>
						<paragraph id="H943B6B45298C4DA7832CA1355E4F03AD"><enum>(1)</enum><text>the number of
				students served and, if applicable, how many new students were served during
				each year of the grant period;</text>
						</paragraph><paragraph id="HF895B08699984103B0739B26F4388108"><enum>(2)</enum><text>in the case of an
				eligible entity awarding subgrants under subsection (b)(1)(A), the number of
				subgrants awarded under this section to carry out each of the following:</text>
							<subparagraph id="H77E2EF9A489146CAB08474B3F238A492"><enum>(A)</enum><text>the opening of new
				charter schools;</text>
							</subparagraph><subparagraph id="HDDA7F8910C3F42DA9F504BCA1171A22A"><enum>(B)</enum><text>the opening of
				replicable, high-quality charter school models; and</text>
							</subparagraph><subparagraph id="HBA66EEA4E5DF4103BF5FE0723B408968"><enum>(C)</enum><text>the expansion of
				high-quality charter schools;</text>
							</subparagraph></paragraph><paragraph id="id1098BB228A3B47C1850A78E795BA052B"><enum>(3)</enum><text>in the case of an
				eligible entity receiving a grant under subsection (b)(2), the number of new
				charter schools opened, the number of replicable high-quality charter school
				models opened, and the number of high-quality charter schools expanded under
				the grant;</text>
						</paragraph><paragraph id="H3874B95D39F34C13A4A8BA2394C0EFE0"><enum>(4)</enum><text>in the case of a
				State entity, the progress the State entity made toward meeting the priorities
				described in
				<internal-xref idref="H08997D19F7F24DFF8A1281083FDB624F" legis-path="5203.(g)(2)">subsection (g)(2)</internal-xref>, as
				applicable;</text>
						</paragraph><paragraph id="HA6C36E491BFD4B5490F027137AC422F9"><enum>(5)</enum><text>how the entity met
				the objectives of the quality charter school program described in the entity’s
				application under
				<internal-xref idref="H1971BD90DDA9445C89335046F54CEF06" legis-path="5203.(f)">subsection (f)</internal-xref>;</text>
						</paragraph><paragraph id="HE5AE6CA60C4F4511AEA75D0CA1F3604A"><enum>(6)</enum><text>how the entity
				complied with, and, if applicable, ensured that eligible applicants complied
				with, the assurances described in the entity’s application; and</text>
						</paragraph><paragraph id="H9EC05A8F2B924088B1ABB1F46456A49C"><enum>(7)</enum><text>how the entity
				worked with authorized public chartering agencies, including how the agencies
				worked with the management company or leadership of the schools in which the
				subgrants were awarded, if
				applicable.</text>
						</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
		</section><section id="H953F15AB96A24343BA0C4EFCC0198F3E"><enum>6.</enum><header>Facilities
			 financing assistance</header><text display-inline="no-display-inline">Section
			 5204 (20 U.S.C. 7221c) is amended to read as follows:</text>
			<quoted-block display-inline="no-display-inline" id="HE3AC4DFBFB4241D68F53F16FC20A0708" style="OLC">
				<section id="H3609A33576BF4DA4AFF5721E6F3A5459"><enum>5204.</enum><header>Facilities
				financing assistance</header>
					<subsection id="H65076A6D3C9043FDA943DF7AD5E79F93"><enum>(a)</enum><header>Grants to
				eligible entities</header>
						<paragraph id="H5EA2E2A03AF24947B9BCBBD05C53EC5D"><enum>(1)</enum><header>In
				general</header><text>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
				<internal-xref idref="HAE92C41E40A444EF8F1A52892D0A342F" legis-path="5204.(e)">subsection (d)</internal-xref> 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.</text>
						</paragraph><paragraph id="H49F6EB056AB742B4A3B8FC740C6898DB"><enum>(2)</enum><header>Eligible entity
				defined</header><text>For purposes of this section, the term <term>eligible
				entity</term> means—</text>
							<subparagraph id="H8A80B76A9476445FBA4F07FA8BB59E0C"><enum>(A)</enum><text>a public entity,
				such as a State or local governmental entity;</text>
							</subparagraph><subparagraph id="H19726FDAFAB1408AB6F6AEBA46D79C1A"><enum>(B)</enum><text>a private
				nonprofit entity; or</text>
							</subparagraph><subparagraph id="H4C05053754634BB9B3322F22058C72DC"><enum>(C)</enum><text>a consortium of
				entities described in subparagraphs (A) and (B).</text>
							</subparagraph></paragraph></subsection><subsection id="H123780444F5F4B39813505DBB0C46D58"><enum>(b)</enum><header>Grantee
				Selection</header>
						<paragraph id="H558541CC83474F57AD78BB7D12A2EFB2"><enum>(1)</enum><header>Evaluation of
				application</header><text>The Secretary shall evaluate each application
				submitted under
				<internal-xref idref="HAE92C41E40A444EF8F1A52892D0A342F" legis-path="q:HE3AC4DFBFB4241D68F53F16FC20A0708:5204.(f)">subsection
				(d)</internal-xref>, and shall determine whether the application is sufficient
				to merit approval.</text>
						</paragraph><paragraph id="H044518519106445EAF3F52EF085B9980"><enum>(2)</enum><header>Distribution of
				grants</header><text>The Secretary shall award not less than one grant to an
				eligible entity described in
				<internal-xref idref="H8A80B76A9476445FBA4F07FA8BB59E0C" legis-path="1.(k)(1)">subsection (a)(2)</internal-xref>(A), not less than one
				grant to an eligible entity described in <internal-xref legis-path="1.(k)(2)">subsection (a)(2)(B)</internal-xref>, and not less than
				one grant to an eligible entity described in subsection (a)(2)(C), if
				applications are submitted that permit the Secretary to do so without approving
				an application that is not of sufficient quality to merit approval.</text>
						</paragraph></subsection><subsection id="HD4328C4E829743E2A636DD502701A60E"><enum>(c)</enum><header>Grant
				Characteristics</header><text>Grants under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(b)">subsection (a)</internal-xref> 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.</text>
					</subsection><subsection id="HAE92C41E40A444EF8F1A52892D0A342F"><enum>(d)</enum><header>Applications</header>
						<paragraph id="H54D0EC4FEFB84C7B9EBB40AF8EE52EB3"><enum>(1)</enum><header>In
				general</header><text>To receive a grant under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(b)">subsection (a)</internal-xref>, an eligible entity shall
				submit to the Secretary an application in such form as the Secretary may
				reasonably require.</text>
						</paragraph><paragraph id="HCC0701C3989F484091DFB17FEAEB6F4C"><enum>(2)</enum><header>Contents</header><text>An
				application submitted under
				<internal-xref idref="H54D0EC4FEFB84C7B9EBB40AF8EE52EB3" legis-path="5204.(e)(1)">paragraph (1)</internal-xref> shall contain—</text>
							<subparagraph id="H7ED490CA4317487EA0696271ED272057"><enum>(A)</enum><text>a statement
				identifying the activities proposed to be undertaken with funds received under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(b)">subsection (a)</internal-xref>, 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;</text>
							</subparagraph><subparagraph id="HCC802C8BEE784D4BAC350D989B8645E3"><enum>(B)</enum><text>a description of
				the involvement of charter schools in the application’s development and the
				design of the proposed activities;</text>
							</subparagraph><subparagraph id="HDB809ACFA55D41DBA77C4BF2BA83826C"><enum>(C)</enum><text>a description of
				the eligible entity’s expertise in capital market financing;</text>
							</subparagraph><subparagraph id="HAF066CDB1EE540C49031CCEBA959C8DD"><enum>(D)</enum><text>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;</text>
							</subparagraph><subparagraph id="H510107D932C548F09CA56DD94894272A"><enum>(E)</enum><text>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</text>
							</subparagraph><subparagraph id="H667C02C5D15D49C9865AA70F1B35FD71"><enum>(F)</enum><text>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.</text>
							</subparagraph></paragraph></subsection><subsection id="H0E746FFAD90F462D8532D45E6FC58FA4"><enum>(e)</enum><header>Charter school
				objectives</header><text>An eligible entity receiving a grant under this
				section shall use the funds deposited in the reserve account established under
				<internal-xref idref="H38ADB09BFEE34143B6819BEB731458D1" legis-path="5204.(g)">subsection (f)</internal-xref> to assist one or more
				charter schools to access private sector capital to accomplish one or both of
				the following objectives:</text>
						<paragraph id="H9A0AD2EDAC644D96B0123C3B2622A41D"><enum>(1)</enum><text>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.</text>
						</paragraph><paragraph id="HC3B12D81B4254C78A676375667D5CD82"><enum>(2)</enum><text>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.</text>
						</paragraph></subsection><subsection id="H38ADB09BFEE34143B6819BEB731458D1"><enum>(f)</enum><header>Reserve
				account</header>
						<paragraph id="H822381C34A4D433187059989C38FAE99"><enum>(1)</enum><header>Use of
				funds</header><text display-inline="yes-display-inline">To assist charter
				schools to accomplish the objectives described in
				<internal-xref idref="H0E746FFAD90F462D8532D45E6FC58FA4" legis-path="5204.(f)">subsection (e)</internal-xref>, an eligible entity
				receiving a grant under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(b)">subsection (a)</internal-xref> shall, in accordance with
				State and local law, directly or indirectly, alone or in collaboration with
				others, deposit the funds received under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(b)">subsection (a)</internal-xref> (other than funds used for
				administrative costs in accordance with
				<internal-xref idref="H3717273C179F43179992CE5044C7A5E4" legis-path="5204.(g)">subsection (g)</internal-xref>) 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:</text>
							<subparagraph id="H7C2FD28687B84770A03B4331FA780AA4"><enum>(A)</enum><text>Guaranteeing,
				insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests
				therein, the proceeds of which are used for an objective described in
				<internal-xref idref="H0E746FFAD90F462D8532D45E6FC58FA4" legis-path="q:HE3AC4DFBFB4241D68F53F16FC20A0708:5204.(e)">subsection
				(e)</internal-xref>.</text>
							</subparagraph><subparagraph id="H7F61B938A37A4034BD75E86C2416A21A"><enum>(B)</enum><text>Guaranteeing and
				insuring leases of personal and real property for an objective described in
				<internal-xref idref="H0E746FFAD90F462D8532D45E6FC58FA4" legis-path="5204.(f)">subsection (e)</internal-xref>.</text>
							</subparagraph><subparagraph id="HEE750B97E503426DBB9BB32E56753AC7"><enum>(C)</enum><text>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.</text>
							</subparagraph><subparagraph id="H38D0B87B98674F18936102DCCAF07DF5"><enum>(D)</enum><text>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).</text>
							</subparagraph></paragraph><paragraph id="HC0863677803E407B8DA1523CFEACD95A"><enum>(2)</enum><header>Investment</header><text>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.</text>
						</paragraph><paragraph id="H199BE4C9B2734EEB8966D168D14B1579"><enum>(3)</enum><header>Reinvestment of
				Earnings</header><text>Any earnings on funds received under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(a)">subsection (a)</internal-xref> shall be deposited in the
				reserve account established under paragraph (1) and used in accordance with
				such subsection.</text>
						</paragraph></subsection><subsection id="H3717273C179F43179992CE5044C7A5E4"><enum>(g)</enum><header>Limitation on
				administrative costs</header><text>An eligible entity may use not more than 2.5
				percent of the funds received under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(a)">subsection (a)</internal-xref> for the administrative
				costs of carrying out its responsibilities under this section (excluding
				<internal-xref idref="H1679F49DE3874D6FBBFE284765FA5832" legis-path="q:HE3AC4DFBFB4241D68F53F16FC20A0708:5204.(k)">subsection
				(k)</internal-xref>).</text>
					</subsection><subsection id="H2D3F822A1D4144909B043BE1436FBCCC"><enum>(h)</enum><header>Audits and
				reports</header>
						<paragraph id="HB8AADFD8EF2C47E6936386F51A1554C6"><enum>(1)</enum><header>Financial Record
				Maintenance and Audit</header><text>The financial records of each eligible
				entity receiving a grant under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(b)">subsection (a)</internal-xref> shall be maintained in
				accordance with generally accepted accounting principles and shall be subject
				to an annual audit by an independent public accountant.</text>
						</paragraph><paragraph id="H76661FD9720041F0956EA3A0F43A3837"><enum>(2)</enum><header>Reports</header>
							<subparagraph id="H9885A43D2433441E951BCB0605F3938D"><enum>(A)</enum><header>Grantee annual
				reports</header><text display-inline="yes-display-inline">Each eligible entity
				receiving a grant under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(b)">subsection (a)</internal-xref> annually shall submit to
				the Secretary a report of its operations and activities under this
				section.</text>
							</subparagraph><subparagraph id="HC1E24E1494FC45FF888CAF3F90B4C479"><enum>(B)</enum><header>Contents</header><text>Each
				annual report submitted under subparagraph (A) shall include—</text>
								<clause id="H88D7641E803C4DCA9A4E7F7AF75F573E"><enum>(i)</enum><text>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;</text>
								</clause><clause id="H8876B076FF4B4F4581EA008B6BE905AC"><enum>(ii)</enum><text>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;</text>
								</clause><clause id="HF585C03067624BF99CAAD3028EB112E1"><enum>(iii)</enum><text>an evaluation by
				the eligible entity of the effectiveness of its use of the Federal funds
				provided under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(b)">subsection (a)</internal-xref> in leveraging private
				funds;</text>
								</clause><clause id="H3ED9E15E42494379A5D1B61DE18BAA5A"><enum>(iv)</enum><text>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;</text>
								</clause><clause id="H41D10CD1F2CC46E4ACFF5F965D61015F"><enum>(v)</enum><text>a
				description of the activities carried out by the eligible entity to assist
				charter schools in meeting the objectives set forth in
				<internal-xref idref="H0E746FFAD90F462D8532D45E6FC58FA4" legis-path="q:HE3AC4DFBFB4241D68F53F16FC20A0708:5204.(e)">subsection
				(e)</internal-xref>; and</text>
								</clause><clause id="H83442E78C1444148903F7065516F9D14"><enum>(vi)</enum><text>a
				description of the characteristics of lenders and other financial institutions
				participating in the activities undertaken by the eligible entity under this
				section (excluding
				<internal-xref idref="H1679F49DE3874D6FBBFE284765FA5832" legis-path="5204.(l)">subsection (k)</internal-xref>) during the reporting
				period.</text>
								</clause></subparagraph><subparagraph id="HAB2DF9D4CE664860BB4DE794C30DB669"><enum>(C)</enum><header>Secretarial
				report</header><text display-inline="yes-display-inline">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
				<internal-xref idref="H1679F49DE3874D6FBBFE284765FA5832" legis-path="5204.(k)">subsection (k)</internal-xref>).</text>
							</subparagraph></paragraph></subsection><subsection id="HAE8560C8616F432DBDD749CA5406B32D"><enum>(i)</enum><header>No full faith
				and credit for grantee obligation</header><text display-inline="yes-display-inline">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.</text>
					</subsection><subsection id="HF52254E4DE5940A3B9E02D0464911EB9"><enum>(j)</enum><header>Recovery of
				funds</header>
						<paragraph id="H44EFA3A8A60B4D25A0212EE96C9685AC"><enum>(1)</enum><header>In
				general</header><text>The Secretary, in accordance with chapter 37 of title 31,
				United States Code, shall collect—</text>
							<subparagraph id="HEF53E6513AF4466A9CDD4A728C8AB670"><enum>(A)</enum><text>all of the funds
				in a reserve account established by an eligible entity under
				<internal-xref idref="H822381C34A4D433187059989C38FAE99" legis-path="5204.(f)(1)">subsection (f)(1)</internal-xref> if the Secretary
				determines, not earlier than 2 years after the date on which the eligible
				entity first received funds under this section (excluding
				<internal-xref idref="H1679F49DE3874D6FBBFE284765FA5832" legis-path="5204.(k)">subsection (k))</internal-xref>, that the eligible entity
				has failed to make substantial progress in carrying out the purposes described
				in such
				<internal-xref idref="H822381C34A4D433187059989C38FAE99" legis-path="5204.(f)(1)">subsection</internal-xref>; or</text>
							</subparagraph><subparagraph id="H9A04AE5128B04E59BE7BF2FACEC944C9"><enum>(B)</enum><text>all or a portion
				of the funds in a reserve account established by an eligible entity under
				<internal-xref idref="H822381C34A4D433187059989C38FAE99" legis-path="5204.(f)(1)">subsection (f)(1)</internal-xref> 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
				<internal-xref idref="H822381C34A4D433187059989C38FAE99" legis-path="5204.(f)(1)">such subsection</internal-xref>.</text>
							</subparagraph></paragraph><paragraph id="H997BD53774C24CD986694451C3D34156"><enum>(2)</enum><header>Exercise of
				Authority</header><text>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
				<internal-xref idref="H822381C34A4D433187059989C38FAE99" legis-path="5204.(f)(1)">subsection (f)(1)</internal-xref>.</text>
						</paragraph><paragraph id="H41731675934F4AD791CC6D84D2D0FED7"><enum>(3)</enum><header>
				Procedures</header><text>The provisions of sections 451, 452, and 458 of the
				General Education Provisions Act shall apply to the recovery of funds under
				paragraph (1).</text>
						</paragraph><paragraph id="H5138A2E9DD1147909EB4BCF3DCB6481E"><enum>(4)</enum><header>Construction</header><text>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.</text>
						</paragraph></subsection><subsection commented="no" id="H1679F49DE3874D6FBBFE284765FA5832"><enum>(k)</enum><header>Per-Pupil
				facilities aid program</header>
						<paragraph commented="no" id="H0C5D4DA329B34C2A8010B389697357B7"><enum>(1)</enum><header>Definition of
				per-pupil facilities aid program</header><text display-inline="yes-display-inline">In this subsection, the term
				<term>per-pupil facilities aid program</term> means a program in which a State
				makes payments, on a per-pupil basis, to charter schools to provide the schools
				with financing—</text>
							<subparagraph commented="no" id="H8EBECE1CF7754661B10A35157BC8495F"><enum>(A)</enum><text>that is dedicated
				solely for funding charter school facilities; or</text>
							</subparagraph><subparagraph commented="no" id="H29C87602F4B64D47904F247CAF9A5558"><enum>(B)</enum><text>a portion of which
				is dedicated for funding charter school facilities.</text>
							</subparagraph></paragraph><paragraph commented="no" id="H5127E87E46924E2EA40E51DE8C1F5D3C"><enum>(2)</enum><header>Grants</header>
							<subparagraph commented="no" id="HFE689F2E1DA24DE7B0046F7DB9EA9A40"><enum>(A)</enum><header>In
				general</header><text>From the amount reserved under section 5202(b)(1)
				remaining after the Secretary makes grants under
				<internal-xref idref="H65076A6D3C9043FDA943DF7AD5E79F93" legis-path="5204.(a)">subsection (a)</internal-xref>, 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.</text>
							</subparagraph><subparagraph commented="no" id="H766CAE2B2F364849AEB9A98C5798AF07"><enum>(B)</enum><header>Period</header><text>The
				Secretary shall award grants under this subsection for periods of not more than
				5 years.</text>
							</subparagraph><subparagraph commented="no" id="H87255D6F0B5B4D74BD3E9E2D9F1BED32"><enum>(C)</enum><header>Federal
				share</header><text>The Federal share of the cost described in subparagraph (A)
				for a per-pupil facilities aid program shall be not more than—</text>
								<clause commented="no" id="H5AD54AD7EE92424FAB7909F1D15EA6C1"><enum>(i)</enum><text>90 percent of the
				cost, for the first fiscal year for which the program receives assistance under
				this subsection;</text>
								</clause><clause commented="no" id="HCDD5FD7E246E4710B01748497FAF0941"><enum>(ii)</enum><text>80 percent in the
				second such year;</text>
								</clause><clause commented="no" id="HD287DE71FD2E4905938AAAF8213749A1"><enum>(iii)</enum><text>60 percent in
				the third such year;</text>
								</clause><clause commented="no" id="H3C80560E58D6417AB6451B551D670CE0"><enum>(iv)</enum><text>40 percent in the
				fourth such year; and</text>
								</clause><clause commented="no" id="HD7D45B3F768C422C99AEFC2BDF854ED0"><enum>(v)</enum><text>20 percent in the
				fifth such year.</text>
								</clause></subparagraph><subparagraph commented="no" id="H200A0CE3099A4F20B60C7E5482D908CF"><enum>(D)</enum><header>State
				share</header><text display-inline="yes-display-inline">A State receiving a
				grant under this subsection may partner with 1 or more organizations to provide
				up to 50 percent of the State share of the cost of establishing or enhancing,
				and administering the per-pupil facilities aid program.</text>
							</subparagraph><subparagraph commented="no" id="H3FF9690889D9462F99B5F7BE3CAD2C04"><enum>(E)</enum><header>Multiple
				grants</header><text>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.</text>
							</subparagraph></paragraph><paragraph commented="no" id="HE3762B3E2A26455D8CFC4D0257D511E9"><enum>(3)</enum><header>Use of
				funds</header>
							<subparagraph commented="no" id="HDC64657444D5457ABFABD4FAFC5740B5"><enum>(A)</enum><header>In
				general</header><text>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.</text>
							</subparagraph><subparagraph commented="no" id="H9DA639D69DC5475ABADDA750ABFCCB3D"><enum>(B)</enum><header>Evaluations;
				technical assistance; dissemination</header><text>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.</text>
							</subparagraph><subparagraph commented="no" id="H9A337CAE0BB943F0A7743181CD572BDB"><enum>(C)</enum><header>Supplement, not
				supplant</header><text>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.</text>
							</subparagraph></paragraph><paragraph commented="no" id="HD4094AD2B8CA484FA2474777CDF4B140"><enum>(4)</enum><header>Requirements</header>
							<subparagraph commented="no" id="HEB622D1EDA7D40C0AF6AA24465A57FA0"><enum>(A)</enum><header>Voluntary
				participation</header><text>No State may be required to participate in a
				program carried out under this subsection.</text>
							</subparagraph><subparagraph commented="no" id="H7C52AC1C23EB4382BB4947A5407A3967"><enum>(B)</enum><header>State
				law</header>
								<clause commented="no" id="H0EFE8803570244F6BAEAFFF23863DD19"><enum>(i)</enum><header>In
				general</header><text>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—</text>
									<subclause commented="no" id="H554FB263A8884CA298F62559D22717AB"><enum>(I)</enum><text>is specified in
				State law; and</text>
									</subclause><subclause commented="no" id="H628DCDCF304B4C56999E228DB6C30EA4"><enum>(II)</enum><text>provides annual
				financing, on a per-pupil basis, for charter school facilities.</text>
									</subclause></clause><clause commented="no" id="H572755724A1A4737A9D655341075DBF6"><enum>(ii)</enum><header>Special
				Rule</header><text>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.</text>
								</clause></subparagraph></paragraph><paragraph commented="no" id="H39CA7E67BB464D54B81C67CA23C9D7E3"><enum>(5)</enum><header>Applications</header><text>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.</text>
						</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
		</section><section id="H9BEBBF8F3EE14885B5356E8E86AC40B1"><enum>7.</enum><header>National
			 activities</header><text display-inline="no-display-inline">Section 5205 (20
			 U.S.C. 7221d) is amended to read as follows:</text>
			<quoted-block display-inline="no-display-inline" id="H695876C4E07D48BB883256ADB9B2AF85" style="OLC">
				<section id="HB2AE68B890514DD4B1BE2398F6851E7D"><enum>5205.</enum><header>National
				activities</header>
					<subsection id="H7DB439F3AC18467CB6721ED087A96FD2"><enum>(a)</enum><header>In
				general</header><text display-inline="yes-display-inline">From the amount
				reserved under section 5202(b)(2), the Secretary shall—</text>
						<paragraph id="H60C41A3C858F42F68219A33E4C33B954"><enum>(1)</enum><text>use not less than
				50 percent of such funds to award grants in accordance with subsection (b);
				and</text>
						</paragraph><paragraph id="H00C6A68722504B20B9BA121EA78E55F9"><enum>(2)</enum><text>use the remainder
				of such funds to—</text>
							<subparagraph id="H641FC86219FC4181B1BD5D5F773903B0"><enum>(A)</enum><text>disseminate
				technical assistance to State entities in awarding subgrants under section
				5203(b)(1)(A);</text>
							</subparagraph><subparagraph id="HDFFBB6C5BFF44A5DA4AEE182B87DCFF4"><enum>(B)</enum><text>disseminate best
				practices regarding public charter schools; and</text>
							</subparagraph><subparagraph id="H648DE62D8E524F13AEABEC9BAB18CC0F"><enum>(C)</enum><text>evaluate the
				impact of the charter school program, including the impact on student
				achievement, carried out under this subpart.</text>
							</subparagraph></paragraph></subsection><subsection id="H99A87F59CE474FE3930A42EF7E833D8C"><enum>(b)</enum><header> Grants</header>
						<paragraph id="H35E2B32829584C8596519BC42376E7B8"><enum>(1)</enum><header>In
				general</header><text>From the amounts described in subsection (a)(1), the
				Secretary shall make grants, on a competitive basis, to eligible applicants for
				the purpose of carrying out the activities described in section 5202(a)(1) and
				section 5203(b).</text>
						</paragraph><paragraph id="HA05D32E0157248BB998CF18DF188DEFA"><enum>(2)</enum><header>Terms and
				conditions</header><text>Except as otherwise provided in this subsection,
				grants awarded under this subsection shall have the same terms and conditions
				as grants awarded under section 5203.</text>
						</paragraph><paragraph id="H6DE7D86DA1864934ADB5E47D02D45D00"><enum>(3)</enum><header>Eligible
				applicant defined</header><text>For purposes of this subsection, the term
				<term>eligible applicant</term> means an eligible applicant that desires to
				open a charter school in a State that—</text>
							<subparagraph id="HB0BB825CF7BB41EEA84BE3A92F667771"><enum>(A)</enum><text>did not apply for
				a grant under section 5203;</text>
							</subparagraph><subparagraph id="HFE59A14748BE49BB868F5C1C88ED0793"><enum>(B)</enum><text>did not receive a
				grant under section 5203; or</text>
							</subparagraph><subparagraph id="HBA6CD23CF46A4EEBB2981264EE04B829"><enum>(C)</enum><text>received a grant
				under section 5203 and is in the fourth or fifth year of the grant period for
				such grant.</text>
							</subparagraph></paragraph></subsection><subsection id="HF57426C6AEA14EA0BF65CB0B9B327378"><enum>(c)</enum><header>Contracts and
				grants</header><text display-inline="yes-display-inline">The Secretary may
				carry out any of the activities described in this section directly or through
				grants, contracts, or cooperative
				agreements.</text>
					</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
		</section><section id="H66F62216A4194695BA14F3DA788D1C54"><enum>8.</enum><header>Records
			 transfer</header><text display-inline="no-display-inline">Section 5208 (20
			 U.S.C. 7221g) is amended by inserting <quote>as quickly as possible and</quote>
			 before <quote>to the extent practicable</quote>.</text>
		</section><section id="HFFB6ADA8355F40C2B83DDDA3D562D7CF"><enum>9.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 5210 (20 U.S.C. 7221i) is
			 amended—</text>
			<paragraph id="H9A8D3A3EA5694A1788672FBAAF235822"><enum>(1)</enum><text>in paragraph
			 (1)—</text>
				<subparagraph id="HF7347C6E9D2240A59DA97725587A52FD"><enum>(A)</enum><text>in subparagraph
			 (K), by striking <quote>and</quote> at the end;</text>
				</subparagraph><subparagraph id="H4E9E7148E00B42F78BBBA5028979B2FF"><enum>(B)</enum><text>in subparagraph
			 (L), by striking the period at the end and inserting <quote>; and</quote>;
			 and</text>
				</subparagraph><subparagraph id="H3EB583F9F5984B0C9F9A2FDF6E07449C"><enum>(C)</enum><text>by adding at the
			 end, the following:</text>
					<quoted-block display-inline="no-display-inline" id="HF1A83409B5EB48E6BD1BFDC06DE9A7C8" style="OLC">
						<subparagraph id="HBB410C09EACC430F8E449BD035E61039"><enum>(M)</enum><text display-inline="yes-display-inline">may serve prekindergarten or postsecondary
				students.</text>
						</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
				</subparagraph></paragraph><paragraph id="HB8AA855E0AB54CD6ACDF5C14BC9EA201"><enum>(2)</enum><text>in paragraph (3),
			 by striking <quote>under section 5203(d)(3)</quote>; and</text>
			</paragraph><paragraph id="H744DAEE9169449329170A933B6E26096"><enum>(3)</enum><text>by adding at the
			 end the following:</text>
				<quoted-block display-inline="no-display-inline" id="HC36927B97EF54FEAA904CFCB1AEE6BBF" style="OLC">
					<paragraph id="H17562ED9FCDA43A88A489ABA53401EF3"><enum>(5)</enum><header>Expansion of a
				high-quality charter school</header><text display-inline="yes-display-inline">The term <term>expansion of a high-quality
				charter school</term> means a high-quality charter school that either
				significantly increases its enrollment or adds one or more grades to its
				school.</text>
					</paragraph><paragraph id="H2ADFA5E75F4D4D148808E151E361A72E"><enum>(6)</enum><header>High-quality
				charter school</header><text>The term <term>high-quality charter school</term>
				means a charter school that—</text>
						<subparagraph id="HC9784B6D4C0144BE99BEA3776FDD6E21"><enum>(A)</enum><text>shows evidence of
				strong academic results;</text>
						</subparagraph><subparagraph id="H104FD2AB873F4D7F87486DB4BC8518A0"><enum>(B)</enum><text>has no significant
				issues in the areas of student safety, financial management, or statutory or
				regulatory compliance;</text>
						</subparagraph><subparagraph id="H54F6DC7D3B974C59A355B7F74AB4AC75"><enum>(C)</enum><text display-inline="yes-display-inline">has demonstrated success in significantly
				increasing student academic achievement and attainment for all students served
				by charter schools; and</text>
						</subparagraph><subparagraph id="HFE18915EA69D44A592763CBCE0D03294"><enum>(D)</enum><text>has demonstrated
				success in increasing student academic achievement for the subgroups of
				students described in section 1111(b)(2)(C)(v)(II).</text>
						</subparagraph></paragraph><paragraph id="HB79E3EB7A7024809BBB6007D10E3331D"><enum>(7)</enum><header>Replicable,
				high-quality charter school model</header><text display-inline="yes-display-inline">The term <term>replicable, high-quality
				charter school model</term> means a high-quality charter school that will open
				a new campus under an existing
				charter.</text>
					</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
			</paragraph></section><section id="H5C88E01755D947D88C9E5E14B43D2C20"><enum>10.</enum><header>Authorization of
			 appropriations</header><text display-inline="no-display-inline">Section 5211
			 (20 U.S.C. 7221j) is amended to read as follows:</text>
			<quoted-block display-inline="no-display-inline" id="HB6820B0423154F93A03DEADA90AAA59F" style="OLC">
				<section id="HBF2C7930615B489FAF7980127CBDF5D4"><enum>5211.</enum><header>Authorization
				of appropriations</header><text display-inline="no-display-inline">There are
				authorized to be appropriated to carry out this subpart $300,000,000 for fiscal
				year 2012 and each of the 5 succeeding fiscal
				years.</text>
				</section><after-quoted-block>.</after-quoted-block></quoted-block>
		</section><section id="HF2DAF89AE8214389B8599C907EC77E94"><enum>11.</enum><header>Conforming
			 amendments</header>
			<subsection id="H3C7963DACE5441E99D408FD0ED45D4F8"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Subpart 2 of part B of title V (20 U.S.C.
			 7223 et seq.) is repealed.</text>
			</subsection><subsection id="H601071AEECB5412F9F9FEF0FB15D0F5A"><enum>(b)</enum><header>Table of
			 contents</header><text>The table of contents in section 2 is amended—</text>
				<paragraph id="HD93CA0BFC0194923AF91D882BC00FEC4"><enum>(1)</enum><text>by striking the
			 item relating to section 5203 and inserting the following:</text>
					<quoted-block display-inline="no-display-inline" id="H6754EAC600BD4DD8AF71332EBA5E910E" style="OLC">
						<toc regeneration="no-regeneration">
							<toc-entry level="section">Sec. 5203. Grants to support high-quality
				charter
				schools.</toc-entry>
						</toc>
						<after-quoted-block>;</after-quoted-block></quoted-block>
					<continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="H71867A7C380E465EBE1D42AE8FFD61AA"><enum>(2)</enum><text>by striking the
			 item relating to section 5204 and inserting the following:</text>
					<quoted-block display-inline="no-display-inline" id="HEB45A426748C4263AD5B0532BADF8579" style="OLC">
						<toc regeneration="no-regeneration">
							<toc-entry level="section">Sec. 5204. Facilities financing
				assistance.</toc-entry>
						</toc>
						<after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></subsection></section></legis-body>
</bill>
