AN ACT

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Except as otherwise specifically provided, whenever in this Act a section or other provision is amended or repealed, such amendment or repeal shall be considered to be made to that section or other provision of the Elementary and Secondary Education Act of 1965 (20 U.S.C.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) improve the United States education system and educational opportunities for all Americans by supporting innovation in public education in public school settings that prepare students to compete and contribute to the global economy;

`(2) provide financial assistance for the planning, program design, and initial implementation of charter schools;

`(3) expand the number of high-quality charter schools available to students across the Nation;

`(4) evaluate the impact of such schools on student achievement, families, and communities, and share best practices between charter schools and other public schools;

`(5) 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;

`(6) improve student services to increase opportunities for students with disabilities, limited English proficient students, and other traditionally underserved students to attend charter schools and meet challenging State academic achievement standards; and

`(7) 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--

`(A) charter school development;

`(B) the dissemination of best practices of charter schools for all schools; and

`(C) 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 or subpart 2, 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 HIGH-QUALITY CHARTER SCHOOLS.

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

`SEC. 5203. GRANTS TO SUPPORT HIGH-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 (f) to enable such entities to--

`(1) award subgrants to eligible applicants for--

`(A) opening new charter schools;

`(B) opening replicable, high-quality charter school models; or

`(C) expanding high-quality charter schools; and

`(2) provide technical assistance 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 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 to award subgrants to eligible applicants, in accordance with the quality charter school program described in the entity's application approved pursuant to subsection (f), 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 which may include technical assistance.

`(2) CONTRACTS AND GRANTS- A State entity may use a grant received under this section to carry out the activities described in subparagraphs (A) and (B) of paragraph (1) directly or through grants, contracts, or cooperative agreements.

`(c) Program Periods; Peer Review; Grant Number and Amount; Diversity of Projects; Waivers-

`(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 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.

`(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) GRANT NUMBER AND AMOUNT- The Secretary shall ensure that the number of grants awarded under this section and the award amounts will allow for a sufficient number of new grants to be awarded under this section for each succeeding fiscal year.

`(4) 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.

`(5) WAIVERS- The Secretary may waive any statutory or regulatory requirement over which the Secretary exercises administrative authority except any such requirement relating to the elements of a charter school described in section 5210(1), if--

`(A) the waiver is requested in an approved application under this section; and

`(B) the Secretary determines that granting such a waiver will promote the purpose of this subpart.

`(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, unless the eligible applicant demonstrates to the State entity not less than 3 years of improved educational results in the areas described in subparagraphs (A) and (D) of section 5210(6) for students enrolled in such charter school.

`(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 the program will be carried out, including a description--

`(A) of how the entity--

`(i) will support both new charter school startup 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 the program;

`(iii) 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--

`(I) participate in the Federal programs in which the schools and students are eligible to participate; and

`(II) receive the commensurate share of Federal funds the schools and students are eligible to receive under such programs;

`(iv) 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 to adequately operate the entity's program under this section, where applicable;

`(v) 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;

`(vi) will support charter schools in local educational agencies with large numbers of schools that must comply with the requirements of section 1116(b);

`(vii) will work with charter schools to promote inclusion of all students and support all students once they are enrolled to promote retention;

`(viii) will work with charter schools on recruitment practices, including efforts to engage groups that may otherwise have limited opportunities to participate in charter schools;

`(ix) will share best and promising practices between charter schools and other public schools, including, where appropriate, instruction and professional development in science, math, technology, and engineering education;

`(x) will ensure the charter schools they support can meet the educational needs of their students, including students with disabilities and limited English proficient students; and

`(xi) will support efforts to increase quality initiatives, including meeting the quality authorizing elements described in paragraph (2)(E);

`(B) of the extent to which the entity--

`(i) is able to meet and carry out 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 replicable, high-quality charter school models, and the expansion of high-quality charter schools;

`(C) of how the entity will carry out the subgrant competition, including--

`(i) a description of the application each eligible applicant desiring to receive a subgrant will submit, including--

`(I) a description of the roles and responsibilities of eligible applicants, partner organizations, and management organizations, including the administrative and contractual roles and responsibilities;

`(II) 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

`(III) a description of how the eligible applicant will solicit and consider input from parents and other members of the community on the implementation and operation of each charter school receiving funds under the entity's program; and

`(ii) a description of how the entity will review applications;

`(D) 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;

`(E) of how the entity will help the charter schools receiving funds under the entity's program consider the transportation needs of the schools' students; and

`(F) of how the entity will support diverse charter school models, including models that serve rural communities.

`(2) ASSURANCES- Assurances, including a description of how the assurances will be met, that--

`(A) each charter school receiving funds under the entity's program will have a high degree of autonomy over budget and operations;

`(B) the entity will support charter schools in meeting the educational needs of their students as described in paragraph (1)(A)(x);

`(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 each 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, section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and title IX of the Education Amendments of 1972;

`(ii) adequately monitors and helps each charter school in recruiting, enrolling, and meeting the needs of all students, including students with disabilities and limited English proficient students; and

`(iii) ensures that each charter school solicits and considers input from parents and other members of the community on the implementation and operation of the school;

`(D) the entity will provide adequate technical assistance to eligible applicants to--

`(i) meet the objectives described in clauses (vii) and (viii) of paragraph (1)(A) and paragraph (2)(B); and

`(ii) enroll traditionally underserved students, including students with disabilities and limited English proficient students, to promote an inclusive education environment;

`(E) 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--

`(i) assessing annual performance data of the schools, including, as appropriate, graduation rates and student growth; and

`(ii) 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;

`(F) the entity will work to ensure that charter schools are included with the traditional public school system in decision-making about the public school system in the State; and

`(G) the entity will ensure that each charter school in the State make publicly available, consistent with the dissemination requirements of the annual State report card, the information parents need to make informed decisions about the educational options available to their children, including information on the educational program, student support services, and annual performance and enrollment data for the groups of students described in section 1111(b)(2)(C)(v)(II).

`(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 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 proposed number of new charter schools to be opened, and the proposed number of high-quality charter schools to be replicated or expanded under the program;

`(F) the entity's plan to--

`(i) adequately monitor the eligible applicants receiving subgrants under the entity's program; and

`(ii) work with the authorized public chartering agencies involved to avoid duplication of work for the charter 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 the entity's program under this section;

`(H) the entity's plan to support quality authorizing efforts in the State, consistent with the objectives described in subparagraph (B); and

`(I) the entity's plan to solicit and consider input from parents and other members of the community on the implementation and operation of the charter schools 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 entity located in a State that allows an entity other than a local educational agency to be an authorized public chartering agency, the State has a quality authorized public chartering agency that is an entity other than a local educational agency.

`(B) The State entity is located in a State that 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 is located in a State that ensures equitable financing, as compared to traditional public schools, for charter schools and students in a prompt manner.

`(D) 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.

`(E) 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.

`(F) The State entity demonstrates quality policies and practices to support and monitor charter schools through factors including--

`(i) the proportion of high-quality charter schools in the State; and

`(ii) the proportion of charter schools enrolling, at a rate similar to traditional public schools, traditionally underserved students, including students with disabilities and limited English proficient students.

`(G) The State entity supports charter schools that support at-risk students through activities such as dropout prevention or dropout recovery.

`(H) The State entity authorizes all charter schools in the State to serve as school food authorities.

`(g) Local Uses of Funds- 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.

`(h) Reporting Requirements- Each State 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--

`(1) the number of students served by each subgrant awarded under this section and, if applicable, how many new students were served during each year of the subgrant period;

`(2) the number of subgrants awarded under this section to carry out each of the following--

`(A) the opening of new charter schools;

`(B) the opening of replicable, high-quality charter school models; and

`(C) the expansion of high-quality 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 of the quality charter school program 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 entity's 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 that received subgrants under this section.

`(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 grants to eligible entities that have the highest-quality applications approved under subsection (d), after considering the diversity of such applications, 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- The Secretary shall evaluate each application submitted under subsection (d), and shall determine whether the application is sufficient 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 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 paragraph.

`(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 the 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- Except as provided in clause (ii), 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- Notwithstanding clause (i), a State that is required under State law to provide its charter schools with access to adequate facility space, but which does not have a per-pupil facilities aid program for charter schools specified in State law, 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 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, and eligible entities and States receiving grants under section 5204;

`(B) disseminate best practices; and

`(C) evaluate the impact of the charter school program, including the impact on student achievement, carried out under this subpart.

`(b) 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), subparagraphs (A) through (C) of section 5203(a)(1), and section 5203(g).

`(2) TERMS AND CONDITIONS- Except as otherwise provided in this subsection, grants awarded under this subsection shall have the same terms and conditions as grants awarded to State entities under section 5203.

`(3) 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 the 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, contracts, or cooperative agreements.'.

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)(B), by striking `under section 5203(d)(3)'; and

(3) by adding at the end the following:

`(5) 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.

`(6) HIGH-QUALITY CHARTER SCHOOL- The term `high-quality charter school' means a charter school that--

`(A) shows evidence of strong academic results, which may include strong academic growth as determined by a State;

`(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 served by charter schools; and

`(D) has demonstrated success in increasing student academic achievement for the groups of students described in section 1111(b)(2)(C)(v)(II).

`(7) REPLICABLE, HIGH-QUALITY CHARTER SCHOOL MODEL- The term `replicable, high-quality charter school model' means a high-quality charter school that will open a new campus under an existing charter.'.

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 5 succeeding 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 the following:

`Sec. 5203. Grants to support high-quality charter schools.';

(2) by striking the item relating to section 5204 and inserting the following:

`Sec. 5204. Facilities Financing Assistance.'; and

(3) by striking subpart 2 of part B of title V.