[Pages H4023-H4038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

SUCCESS AND OPPORTUNITY THROUGH QUALITY CHARTER SCHOOLS ACT

The SPEAKER pro tempore. Pursuant to House Resolution 576 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the further consideration of the bill,
H.R. 10.
Will the gentleman from Kansas (Mr. Yoder) kindly take the chair.

{time} 1000

In the Committee of the Whole

Accordingly, the House resolved itself into the Committee of the
Whole House on the state of the Union for the further consideration of
the bill (H.R. 10) to amend the charter school program under the
Elementary and Secondary Education Act of 1965, with Mr. Yoder (Acting
Chair) in the chair.
The Clerk read the title of the bill.
The Acting CHAIR. When the Committee of the Whole rose on Thursday,
May 8, 2014, all time for general debate had expired.
Pursuant to the rule, the bill shall be considered for amendment
under the 5-minute rule.
Pursuant to the rule, the amendment in the nature of a substitute
recommended by the Committee on Education and the Workforce, printed in
the bill, shall be considered as an original bill for the purpose of
amendment under the 5-minute rule and shall be considered read.
The text of the committee amendment in the nature of a substitute is
as follows:

H.R. 10

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 ``Success and Opportunity
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Act a section or other provision is amended or repealed, such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. SUBPART HEADING; PURPOSE.

(a) Subpart Heading.--The heading for subpart 1 of part B
of title V (20 U.S.C. 7221 et seq.) is amended to read as
follows: ``Charter School Program''.
(b) 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
education 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;
``(7) support efforts to strengthen the charter school
authorizing process to improve performance management,
including transparency, oversight, monitoring, and evaluation
of such schools; and
``(8) support quality accountability and transparency in
the operational performance of all authorized public
chartering agencies, which include State educational
agencies, local educational agencies, and other authorizing
entities.''.

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 of charter schools, and the
replication and expansion of high-quality 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;
``(C) the evaluation of the impact of the program on
schools participating in the program; and
``(D) stronger charter school authorizing.
``(b) Funding Allotment.--From the amount made available
under section 5211 for a fiscal year, the Secretary shall--
``(1) reserve 12.5 percent to support charter school
facilities assistance under section 5204;
``(2) reserve not more than 10 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

[[Page H4024]]

on the day before the date of enactment of the Success and
Opportunity 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 opening
and preparing to operate--
``(A) new charter schools;
``(B) replicated, high-quality charter school models; or
``(C) expanded, 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 not less than 90 percent of the grant funds to
award subgrants to eligible applicants, in accordance with
the quality charter school program described in the State
entity's application approved pursuant to subsection (f), for
the purposes described in subparagraphs (A) through (C) of
subsection (a)(1);
``(B) reserve not less than 7 percent of such funds to
carry out the activities described in subsection (a)(2); and
``(C) reserve not more than 3 percent of such funds 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.
``(3) Rule of construction.--Nothing in this Act shall
prohibit the Secretary from awarding grants to States that
use a weighted lottery to give slightly better chances for
admission to all, or a subset of, educationally disadvantaged
students if--
``(A) the use of weighted lotteries in favor of such
students is not prohibited by State law, and such State law
is consistent with laws described in section 5210(1)(G); and
``(B) such weighted lotteries are not used for the purpose
of creating schools exclusively to serve a particular subset
of students.
``(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 awards.--The Secretary shall--
``(A) for each fiscal year for which funds are appropriated
under section 5211--
``(i) award not less than 3 grants under this section;
``(ii) wholly fund each grant awarded under this section,
without making continuation awards; and
``(iii) fully obligate the funds appropriated for the
purpose of awarding grants under this section in the fiscal
year for which such grants are awarded; and
``(B) midway through the grant period of each grant awarded
under this section to a State entity, review the grant to
determine whether the State entity will meet the agreed upon
uses of funds in the State entity's application, and if not,
reallot the grant funds that will not be used for such agreed
upon uses of funds to other State entities during the
succeeding grant competition under this section.
``(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 individual
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(8) 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 State
entity's objectives under this section and how the objectives
of the program will be carried out, including a description--
``(A) of how the State entity--
``(i) will support the opening of new charter schools,
replicated, high-quality charter school models, or expanded,
high-quality charter schools, and a description of the
proposed number of each type of charter school or model, if
applicable, to be opened under the State entity's program;
``(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 eligible 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;
``(II) receive the commensurate share of Federal funds the
schools and students are eligible to receive under such
programs; and
``(III) meet the needs of students served under such
programs, including student with disabilities and English
learners;

``(iv) will have clear plans and procedures to assist
students enrolled in a charter school that closes or loses
its charter to attend other high-quality schools;
``(v) in the case in which the State 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 State entity's program under this
section, where applicable;

``(vi) will ensure each eligible applicant that receives a
subgrant under the State entity's program to open and prepare
to operate a new charter school, a replicated, high-quality
charter school model, or an expanded, high-quality charter
school--

``(I) will ensure such school or model meets the
requirements under section 5210(1); and
``(II) is prepared to continue to operate such school or
model, in a manner consistent with the eligible applicant's
application, after the subgrant funds have expired;

``(vii) will support charter schools in local educational
agencies with large numbers of schools identified by the
State for improvement;
``(viii) will work with charter schools to promote
inclusion of all students and support all students once they
are enrolled to promote retention;
``(ix) will work with charter schools on recruitment
practices, including efforts to engage groups that may
otherwise have limited opportunities to participate in
charter schools, and to ensure such schools do not have in
effect policies or procedures that may create barriers to
enrollment of students, including educationally disadvantaged
students, and are in compliance with all Federal and State
laws on enrollment practices;
``(x) will share best and promising practices between
charter schools and other public schools, including, where
appropriate, instruction and professional development in core
academic subjects, and science, technology, engineering, and
math education, including computer science;
``(xi) will ensure the charter schools receiving funds
under the State entity's program meet the educational needs
of their students, including students with disabilities and
English learners;
``(xii) will support efforts to increase quality
initiatives, including meeting the quality authorizing
elements described in paragraph (2)(E);
``(xiii) in the case of a State entity not described in
clause (xiv), will provide oversight of authorizing activity,
including how the State will approve, actively monitor, and
re-approve or revoke the authority of an authorized public
chartering agency based on the performance of the charter
schools authorized by such agency in the areas of student
achievement, student safety, financial management, and
compliance with all applicable statutes and regulations; and
``(xiv) in the case of a State entity defined in subsection
(i)(4), will work with the State to provide assistance to and
oversight of authorized public chartering agencies for
authorizing activity described in clause (xiii);
``(B) of the extent to which the State 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, replicated, high-quality charter school models, or
expanded, high-quality charter schools;
``(C) of how the State 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,

[[Page H4025]]

such as a contract or performance agreement, how a school's
performance in the State's academic accountability system
will be a primary factor for renewal or revocation of the
school's charter, and how the State entity and the authorized
public chartering agency involved will reserve the right to
revoke or not renew a school's charter based on financial,
structural, or operational factors involving the management
of the school;
``(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 State entity's
program; and
``(IV) a description of the planned activities and
expenditures for the subgrant funds for purposes of opening
and preparing to operate a new charter school, a replicated,
high-quality charter school model, or an expanded, high-
quality charter school, and how the school or model will
maintain financial sustainability after the end of the
subgrant period; and

``(ii) a description of how the State entity will review
applications;
``(D) in the case of an entity that partners with an
outside organization to carry out the State entity's quality
charter school program, in whole or in part, of the roles and
responsibilities of this partner;
``(E) of how the State entity will help the charter schools
receiving funds under the State entity's program consider the
transportation needs of the schools' students; and
``(F) of how the State 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 State
entity's program will have a high degree of autonomy over
budget and operations;
``(B) the State entity will support charter schools in
meeting the educational needs of their students as described
in paragraph (1)(A)(x);
``(C) the State entity will ensure that the authorized
public chartering agency of any charter school that receives
funds under the State entity's program--
``(i) adequately monitors each charter school in
recruiting, enrolling, and meeting the needs of all students,
including students with disabilities and English learners;
and
``(ii) 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 State 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) recruit, enroll, and retain traditionally
underserved students, including students with disabilities
and English learners, at rates similar to traditional public
schools;
``(E) the State entity will promote quality authorizing,
such as through providing technical assistance and supporting
all authorized public chartering agencies in the State to
improve the oversight of their charter schools, including
by--
``(i) assessing annual performance data of the schools,
including, as appropriate, graduation rates and student
academic growth;
``(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; and
``(iii) holding charter schools accountable to the
academic, financial, and operational quality controls agreed
to between the charter school and the authorized public
chartering agency involved, such as through renewal, non-
renewal, or revocation of the school's charter;
``(F) the State entity will work to ensure that charter
schools are included with the traditional public schools in
decision-making about the public school system in the State;
and
``(G) the State entity will ensure that each charter school
in the State make publicly available, consistent with the
dissemination requirements of the annual State report card,
information to help parents make informed decisions about the
education 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 State entity believes are necessary for the
successful operation of the charter schools that will receive
funds under the State 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 or, in the case of a
State entity defined in subsection (i)(4), a description of
how the State entity will work with the State to request
necessary waivers where applicable.
``(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 State entity will work
to maximize the flexibility provided to charter schools under
the law;
``(B) the ambitiousness of the State entity's objectives
for the quality charter school program carried out under this
section;
``(C) the quality of the strategy for assessing achievement
of those objectives;
``(D) the likelihood that the eligible applicants receiving
subgrants under the program will meet those objectives and
improve educational results for students;
``(E) the State entity's plan to--
``(i) adequately monitor the eligible applicants receiving
subgrants under the State entity's program;
``(ii) work with the authorized public chartering agencies
involved to avoid duplication of work for the charter schools
and authorized public chartering agencies; and
``(iii) provide adequate technical assistance and support
for--

``(I) the charter schools receiving funds under the State
entity's program; and
``(II) quality authorizing efforts in the State; and

``(F) the State 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 supports charter schools that
support at-risk students through activities such as dropout
prevention or dropout recovery.
``(G) The State entity authorizes all charter schools in
the State to serve as school food authorities.
``(H) The State entity has taken steps to ensure that all
authorizing public chartering agencies implement best
practices for charter school authorizing.
``(g) Local Uses of Funds.--An eligible applicant receiving
a subgrant under this section shall use such funds to carry
out activities related to opening and preparing to operate a
new charter school, a replicated, high-quality charter school
model, or an expanded, high-quality charter school, such as--
``(1) preparing teachers and school leaders, including
through professional development;
``(2) acquiring equipment, educational materials, and
supplies; and
``(3) necessary renovations and minor facilities repairs
(excluding construction).
``(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 progress the State entity made toward meeting the
priorities described in subsection (f)(2), as applicable;
``(3) how the State entity met the objectives of the
quality charter school program described in the State
entity's application under subsection (e);
``(4) how the State entity complied with, and ensured that
eligible applicants complied with, the assurances described
in the State entity's application;
``(5) how the State 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; and
``(6) 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 replicated, high-quality charter
school models.
``(C) The opening of expanded, high-quality charter
schools.
``(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;
``(3) a Governor of a State; or
``(4) a charter school support organization.''.

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 not use less than 50 percent
to 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;

[[Page H4026]]

``(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 public funding used and
otherwise enhance credit available to charter schools,
including how the eligible 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
eligible 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 more 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, or the
renovation, repair, or alteration of existing facilities,
necessary to commence or continue the operation of a charter
school.
``(3) The predevelopment costs required to assess sites for
purposes of paragraph (1) or (2) and which are 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 20 U.S.C.
124, 1234a, 1234g 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
(20 U.S.C. 1234 et seq.).
``(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 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.--

[[Page H4027]]

``(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 75 percent of such funds to award
grants in accordance with subsection (b); and
``(2) use not more than 25 percent of such funds to--
``(A) provide 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) Charter management organizations.--The Secretary
shall--
``(A) use not less than 75 percent of the funds described
in subsection (a)(1) to make grants, on a competitive basis,
to eligible applicants described in paragraph (4)(C); and
``(B) notwithstanding paragraphs (1)(A) and (2) of section
5203(f)--
``(i) award grants to eligible applicants on the basis of
the quality of the applications submitted under this
subsection; and
``(ii) in awarding grants to eligible applicants described
in paragraph (4)(C), give priority to each such eligible
applicant that--

``(I) demonstrates a high proportion of high-quality
charter schools within the network of the eligible applicant;
``(II) demonstrates success in serving students who are
educationally disadvantaged;
``(III) does not have a significant proportion of charter
schools that have been closed, had their charter revoked for
compliance issues, or had their affiliation with such
eligible applicant revoked;
``(IV) has sufficient procedures in effect to ensure timely
closure of low-performing or financially-mismanaged charter
schools and clear plans and procedures in effect for the
students in such schools to attend other high-quality
schools; and
``(V) demonstrates success in working with schools
identified for improvement by the State.

``(4) Eligible applicant defined.--For purposes of this
subsection, the term `eligible applicant' means an eligible
applicant (as defined in section 5210) that--
``(A) desires to open a charter school in--
``(i) a State that did not apply for a grant under section
5203; or
``(ii) a State that did not receive a grant under section
5203; or
``(B) is a charter management organization.
``(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) by amending paragraph (1) to read as follows:
``(1) Charter school.--The term `charter school' means a
public school that--
``(A) in accordance with a specific State statute
authorizing the granting of charters to schools, is exempt
from significant State or local rules that inhibit the
flexible operation and management of public schools, but not
from any rules relating to the other requirements of this
paragraph;
``(B) is created by a developer as a public school, or is
adapted by a developer from an existing public school, and is
operated under public supervision and direction;
``(C) operates in pursuit of a specific set of educational
objectives determined by the school's developer and agreed to
by the authorized public chartering agency;
``(D) provides a program of elementary or secondary
education, or both;
``(E) is nonsectarian in its programs, admissions policies,
employment practices, and all other operations, and is not
affiliated with a sectarian school or religious institution;
``(F) does not charge tuition;
``(G) complies with the Age Discrimination Act of 1975,
title VI of the Civil Rights Act of 1964, title IX of the
Education Amendments of 1972, section 504 of the
Rehabilitation Act of 1973, part B of the Individuals with
Disabilities Education Act, the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.), and section 444 of the
General Education Provisions Act (20 U.S.C. 1232(g))
(commonly known as the `Family Education Rights and Privacy
Act of 1974');
``(H) is a school to which parents choose to send their
children, and admits students on the basis of a lottery if
more students apply for admission than can be accommodated,
except that in cases in which students who are enrolled in a
charter school affiliated (such as by sharing a network) with
another charter school, those students may be automatically
enrolled in the next grade level at such other charter
school, so long as a lottery is used to fill seats created
through regular attrition in student enrollment;
``(I) agrees to comply with the same Federal and State
audit requirements as do other elementary schools and
secondary schools in the State, unless such State audit
requirements are waived by the State;
``(J) meets all applicable Federal, State, and local health
and safety requirements;
``(K) operates in accordance with State law;
``(L) has a written performance contract with the
authorized public chartering agency in the State that
includes a description of how student performance will be
measured in charter schools pursuant to State assessments
that are required of other schools and pursuant to any other
assessments mutually agreeable to the authorized public
chartering agency and the charter school; and
``(M) may serve prekindergarten or postsecondary
students.'';
(2) by redesignating paragraphs (2) through (4) as
paragraphs (4) through (6), respectively;
(3) by inserting after paragraph (1), the following:
``(2) Charter management organization.--The term `charter
management organization' means a not-for-profit organization
that manages a network of charter schools linked by
centralized support, operations, and oversight.
``(3) Charter school support organization.--The term
`charter school support organization' means a nonprofit,
nongovernmental entity that is not an authorized public
chartering agency, which provides on a statewide basis--
``(A) assistance to developers during the planning, program
design, and initial implementation of a charter school; and
``(B) technical assistance to charter schools to operate
such schools.'';
(4) in paragraph (5)(B), as so redesignated, by striking
``under section 5203(d)(3)''; and
(5) by adding at the end the following:
``(7) Expanded, high-quality charter school.--The term
`expanded, high-quality charter school' means a high-quality
charter school that has either significantly increased its
enrollment or added one or more grades to its school.
``(8) 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, operational and financial management, or statutory or
regulatory compliance;
``(C) has demonstrated success in significantly increasing
student academic achievement, including graduation rates
where applicable, consistent with the requirements under
title I, for all students served by the charter school; and
``(D) has demonstrated success in increasing student
academic achievement, including graduation rates where
applicable, for the groups of students described in section
1111(b)(2)(C)(v)(II), except that such demonstration is not
required in a case in which the number of students in a group
is insufficient to yield statistically reliable information
or the results would reveal personally identifiable
information about an individual student.
``(9) Replicated, high-quality charter school model.--The
term `replicated, high-quality charter school model' means a
high-quality charter school that has opened a new campus
under an existing charter or an additional charter if
required by State law.''.

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

[[Page H4028]]

year 2015 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 subpart 1 of part B of
title V and inserting the following:

``Subpart 1--Charter School Program'';

(2) by striking the item relating to section 5203 and
inserting the following:

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

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

``Sec. 5204. Facilities financing assistance.''; and

(4) by striking the items relating to subpart 2 of part B
of title V.

The Acting CHAIR. No amendment to the committee amendment in the
nature of a substitute shall be in order except those printed in part A
of House Report 113-444. Each such amendment may be offered only in the
order printed in the report, by a Member designated in the report,
shall be considered read, shall be debatable for the time specified in
the report, equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be subject
to a demand for division of the question.

Amendment No. 1 Offered by Mr. Kline

The Acting CHAIR. It is now in order to consider amendment No. 1
printed in part A of House Report 113-444.
Mr. KLINE. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:

Page 4, beginning line 15, strike ``limited English
proficient students'' and insert ``English learners''.
Page 10, beginning line 1, amend subparagraph (B) to read
as follows:
``(B) prior to the start of the final year of the grant
period of each grant awarded under this section to a State
entity, review whether the State entity is using the grant
funds for the agreed upon uses of funds and whether the full
amount of the grant will be needed for the remainder of the
grant period and may, as determined necessary based on that
review, terminate or reduce the amount of the grant and
reallocate the remaining grant funds to other State entities
during the succeeding grant competition under this
section.''.
Page 11, beginning line 5, amend paragraph (1) to read as
follows:
``(1) Grants.--The Secretary shall not award a grant to a
State entity under this section in a case in which such award
would result in more than 1 grant awarded under this section
being carried out in a State at the same time.''.
Page 14, line 14, insert ``, including supporting the use
of charter schools to improve, or in turning around,
struggling schools'' after ``improvement''.
Page 14, line 18, insert ``including through the use of
fair disciplinary practices'' after ``retention''.
Page 19, line 16, strike ``(1)(A)(x)'' and insert
``(1)(A)(xi)''.
Page 20, line 8, strike ``(vii) and (viii)'' and insert
``(viii) and (ix)''.
Page 20, line 22, strike ``and student'' and insert ``,
student''.
Page 20, line 23, insert ``, and rates of student
attrition'' after ``growth''.
Page 21, line 17, strike ``make'' and insert ``makes''.
Page 22, line 2, insert before the period at the end the
following: ``, except that such data shall not be made
publicly available in a case in which the number of students
in a group is insufficient to yield statistically reliable
information or the results would reveal personally
identifiable information about an individual student''.
Page 42, line 13, strike ``(4)(C)'' and insert ``(4)(B)''.
Page 42, line 21, strike ``(4)(C)'' and insert ``(4)(B)''.
Page 42, beginning line 21, strike ``give priority to each
such eligible applicant that'' and inserting ``take into
consideration whether such an eligible applicant''.
Page 49, line 17, insert ``or permitted'' after
``required''.

The Acting CHAIR. Pursuant to House Resolution 576, the gentleman
from Minnesota (Mr. Kline) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Minnesota.
Mr. KLINE. Mr. Chairman, I rise in support of the manager's amendment
which makes important changes to the bill to support the growth of
high-performing charter schools.
Charter schools epitomize choice and flexibility in education.
Reform-minded States and school districts all across the country have
embraced this innovative educational model to transform underperforming
traditional public schools.
The manager's amendment improves the existing charter school program
and the underlying bill by clarifying the grant award language,
ensuring charter school funding is used for the intended purposes.
Additionally, the manager's amendment adds quality authorizing
provisions, to include looking at school attrition rates, and asks
States to assist schools in developing fair discipline practices that
will help promote student retention.
Mr. Chairman, the act is an important piece of legislation that will
streamline and modernize the charter school program to support the
startup, replication, and expansion of high-quality charter schools.
The manager's amendment includes commonsense changes to improve the
underlying legislation.
I urge my colleagues to support the manager's amendment and the
Success and Opportunity through Quality Charter Schools Act.
I reserve the balance of my time.
Mr. GEORGE MILLER of California. Mr. Chairman, I claim the time in
opposition, although I am not in opposition.
The Acting CHAIR. Without objection, the gentleman from California is
recognized for 5 minutes.
There was no objection.
Mr. GEORGE MILLER of California. Mr. Chairman, I rise in strong
support of this amendment and thank the chairman for working with me to
include important improvements in the underlying bill.
I am especially pleased that this amendment includes provisions to
promote the use of nondiscriminatory discipline practices as charter
schools work to serve and retain all students.
We know that the overreliance on out-of-school suspension and
expulsion disproportionately impacts educational successes of minority
students and students with disabilities. According to the most recent
civil rights data collection, the negative impacts on unequal
implementation of these disciplines is impacting minority kids as young
as 4 years old.
This is unacceptable, and I am pleased that this amendment seeks to
better position charter schools to understand, implement, and report on
the use of their fair practices.
I want to thank Mr. Davis, Ms. Wilson, Mr. Conyers, Ms. Fudge, Ms.
Clarke, and Mr. Grayson for helping to ensure that these improvements
in H.R. 10 are included.
I yield back the balance of my time.
Mr. KLINE. Mr. Chairman, I urge my colleagues to support this
amendment and the underlying bill.
I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Minnesota (Mr. Kline).
The amendment was agreed to.

Amendment No. 2 Offered by Mr. Cassidy

The Acting CHAIR. It is now in order to consider amendment No. 2
printed in part A of House Report 113-444.
Mr. CASSIDY. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:

Page 6, after line 17, insert the following:
``(d) GAO Report.--Not later than 3 years after the date of
enactment of the Success and Opportunity through Quality
Charter Schools Act, the Comptroller General of the United
States shall submit a report to the Secretary and Congress
that--
``(1) examines whether the funds authorized to be reserved
by State entities for administrative costs under section
5203(b)(1)(C) is appropriate; and
``(2) if determined not to be appropriate, makes
recommendations on the appropriate reservation of funding for
such administrative costs.''.

The Acting CHAIR. Pursuant to House Resolution 576, the gentleman
from Louisiana (Mr. Cassidy) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Louisiana.
Mr. CASSIDY. Mr. Chairman, the intent of my amendment is to provide
greater accountability over the use and allocation of administrative
costs associated with the funds authorized in this bill. It is
important we attempt to maximize the ability of the dollar to reach the
classroom.

[[Page H4029]]

The amendment simply requires that, within 3 years after the
enactment of H.R. 10, the Government Accountability Office would
provide a report on whether the amount of funding for State
administrative costs is appropriate.
If the funds are determined inappropriate, GAO must provide a
recommendation on what an appropriate level of funding would be.
My amendment is budget neutral, with no additional reporting
requirements. It is simple and straightforward, ensuring that the
millions of taxpayer dollars will go to classrooms, not caught up in
bureaucracy.
We all know how easy it is for administrative costs in the public
sector to balloon. This amendment helps to prevent this from happening.
I reserve the balance of my time.
Mr. KLINE. Mr. Chairman, I claim time in opposition, although I am
not opposed to the amendment.
The Acting CHAIR. Without objection, the gentleman from Minnesota is
recognized for 5 minutes.
There was no objection.
Mr. KLINE. Mr. Chairman, I rise in support of this amendment, which
will require a GAO study on the money allocated for administrative
costs.
As the gentleman from Louisiana said, we need to ensure that we are
providing flexibility in the use of funds to run a quality, efficient,
and effective program; and that means carefully balancing small
administrative set-asides while supporting the underlying program
purposes.
I support this amendment and urge my colleagues to do so as well.
I reserve the balance of my time.
Mr. CASSIDY. Mr. Chairman, I yield back the balance of my time.
Mr. KLINE. Mr. Chairman, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Louisiana (Mr. Cassidy).
The amendment was agreed to.

Amendment No. 3 Offered by Ms. Castor of Florida

The Acting CHAIR. It is now in order to consider amendment No. 3
printed in part A of House Report 113-444.
Ms. CASTOR of Florida. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:

Page 6, after line 17, insert the following:
``(d) Conflicts of Interest.--The Secretary shall develop
and enforce conflict of interest guidelines for any charter
school receiving assistance under this subpart, which shall
include disclosures of any person affiliated with the charter
school that has a financial interest in the charter
school.''.

The Acting CHAIR. Pursuant to House Resolution 576, the gentlewoman
from Florida (Ms. Castor) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentlewoman from Florida.
Ms. CASTOR of Florida. Mr. Chairman, the Castor amendment directs the
Secretary of the Department of Education to develop and enforce
conflict of interest guidelines for any charter school receiving
assistance under this law.
These guidelines must include disclosures of any person affiliated
with the charter school that has a financial interest in the charter
school.
We all know that a conflict of interest is a situation in which an
individual who has an obligation or duty to act for the benefit of the
public--in this case, students and schools--exploits that relationship
for personal benefit--typically for money--if the individual tries to
perform that duty while, at the same time, trying to achieve a personal
gain.
In the context of charter schools, there have been very serious cases
all across the country over the past few years involving conflicts of
interest in charter schools. Despite the overriding duty and
responsibility to students and schools, individuals have acted to
benefit or enrich themselves with public money--taxpayer money.
In my State of Florida, we have had a number of cases of conflict of
interest in the approval and operation of charter schools. Recently,
the Department of Education raised serious questions in an audit about
expenditures of money and conflicts of interest of Florida's largest
charter school management company. The preliminary audit report
findings are very disturbing.
It appears that the charter school corporation entered into leases
with development companies tied to the president of the company's
family, that they hired an architectural firm that employs the
president's brother-in-law, and that the board of directors transferred
public funds to another organization with the same board of directors.
In Arizona, The Arizona Republic has reported that boardmembers and
administrators from more than a dozen State-funded charter schools are
profiting from their affiliations by doing business with the schools
they oversee.
The newspaper reviewed thousands of pages of Federal tax returns,
audits, corporate filings, and records with the Arizona State Board of
Charter Schools.
The analysis looked at the 50 largest nonprofit charter schools in
the State, as well as schools with assets of more than $10 million.
They found at least 17 contracts or arrangements totaling more than $70
million over 5 years and involving about 40 school sites in which the
money from the nonprofit charter school went to for-profit and
nonprofit companies run by board of directors, executives, or their
relatives.
In Colorado, an audit report took a certain charter school network to
task for egregious financial improprieties and for severe nepotism. The
report said that the CEO was paying himself over $340,000 per year. He
hired his wife as chief operating officer and paid her over $200,000 a
year, and the chief financial officer was paid over $320,000 per year.
This far exceeds what the standard salary is for a charter school or
even when you look at the salaries for our larger district
superintendents.
This charter school company then hired 20 members of their own
family, according to the report and audit, and they racked up over
$400,000 in credit card charges in one year.
In California, State auditors found that the president of the
American Indian Public Charter School in Oakland had given $350,000 in
improper payouts to his wife. They also found another $350,000 had been
spent on unauthorized construction projects, all going to companies
owned by the CEO.
Also, Mr. Chair, just last week, a report was issued by the Center
for Popular Democracy and Integrity in Education entitled, ``Charter
School Vulnerabilities to Waste, Fraud, and Abuse.'' That title was
borrowed from the title of a section of a report that appeared in the
Department of Education's Office of Inspector General's recent report.
The report stated that the OIG experienced a steady increase in the
number of charter school complaints, State-level agencies were failing
to provide adequate oversight needed to ensure Federal funds were being
properly used and accounted for. They estimated over $100 million in
taxpayer losses due to fraud, abuse, and waste in charter schools.
We can do much better. The conflict of interest problems afflicting
charter schools across the country endanger the outstanding work being
done by many charter schools.
For example, the Pepin Academies in my hometown of Tampa is a
tuition-free public charter school for students with identified
learning disabilities. They have an individualized education plan. They
serve a very important population, and I believe in their mission.
If charter schools are going to effectively carry out their mission
for students, using public funds, it is clear that we need more
accountability and better procedures in place to protect taxpayer
investment.
I include for the Record the press report that I referenced, along
with the letters of support from First Focus, School Superintendents
Association, NEA, and AFT.

[From the Republic, Nov. 17, 2012]

Insiders Benefiting in Charter Deals

(By Anne Ryman)

Board members and administrators from more than a dozen
state-funded charter schools are profiting from their
affiliations by doing business with schools they oversee.
The deals, worth more than $70 million over the last five
years, are legal, but critics of the arrangements say they
can lead to conflicts of interest. Charter executives, on the
other hand, say they are able to help the schools get better
deals on services and goods ranging from air-conditioners to
textbooks and thus save taxpayers money.

[[Page H4030]]

The Arizona Republic reviewed thousands of pages of federal
tax returns, audits, corporate filings, and records filed
with the Arizona State Board for Charter Schools. The
analysis looked at the 50 largest non-profit charter schools
in the state as well as schools with assets of more than $10
million. For-profit schools were not analyzed because their
tax records are not public.
The Republic's analysis found at least 17 contracts or
arrangements, totaling more than $70 million over five years
and involving about 40 school sites, in which money from the
non-profit charter school went to for-profit or non-profit
companies run by board members, executives or their
relatives.
Arizona has 535 charter schools that enrolled about 144,800
students this school year, or about 14 percent of students in
public schools.
Arizona's regulations on charter schools are relatively
lax. The state allows charters to seek exemptions from state
laws that require schools to obtain competitive bids for
goods or services. Nearly 90 percent of the state's charter
holders have gotten permanent exemptions from the state Board
for Charter Schools, according to the state's database.
The schools' purchases from their own officials range from
curriculum and business consulting to land leases and
transportation services. A handful of non-profit schools
outsource most of their operations to a board member's for-
profit company. The transactions are legal provided schools
report the relationships on their federal tax forms and board
members abstain from voting on their own contracts.
In one case, school officials in Phoenix thought they were
exempt from purchasing laws and failed to put a contract out
to bid for non-academic services that were worth hundreds of
thousands of dollars. In another case, a Glendale school
purchased a van for almost twice its value and had to get the
money refunded.
It's impossible to know whether any money was potentially
diverted from classrooms through insider transactions or lack
of competitive bidding. Several charters said they saved
money but were unable to provide specifics; others did not
respond to interview requests. Some said they contracted with
a school official's company because the quality of the
product or service was better than what was on the market.
Educators and ethicists say the arrangements raise
questions about whether the schools are being used partly for
personal gain.
``This is crony capitalism,'' said Alex Molnar, an
education professor at the University of Colorado-Boulder who
has studied charter schools. ``This is greasing the palms of
special-interest and favored individuals.''
A for-profit company paid by a charter school, even a
company that operates most of the school, does not have to
disclose spending details or how much profit it makes. Some
board members who did business with their schools told The
Republic they macle a profit on the transactions. Others said
they lost money. Some refused to comment.
Charter-school leaders say most executives and board
members operate with good intentions when they conduct
business transactions with their schools. The schools want to
stretch their funding, and school leaders who own businesses
can give the schools a good deal on products or services.
Being exempt from purchasing laws gives schools more
flexibility, allowing them to focus more on the classroom and
less on red tape, charter-school officials say.
``I see a lot of my schools really using thrifty, cost-
effective methods,'' said Eileen Sigmund, president and CEO
of the Arizona Charter Schools Association, a non-profit
group that provides support services for charter schools.
For example, she said, one charter-school leader picked
through Northern Arizona University's surplus equipment to
get desks for classrooms.
Because Arizona charter schools receive on average $1,700
less in annual state funding per child than district schools,
charters ``really have to be efficient,'' she said.
Charter schools are public schools that are independently
run by non-profits, for-profits, school districts or state
universities.
Charters get less funding on average largely because,
unlike school districts, they can't ask voters in their
surrounding areas to pass bonds and overrides to bring in
more money. About 96 percent of charter schools operating now
are authorized by the state and the rest by school districts
or state universities.
Molnar, the education professor, said because charters are
publicly funded, they should be subject to state procurement
laws. Board members shouldn't be allowed to do business with
their own schools, either.
____

[From the denverchannel.com, May 6, 2010]

School CEO Ripped for Hiring Wife, Paying Himself $340K

A new audit report rips the founders of the Cesar Chavez
Charter School Network for egregious financial impropriety
and ``severe nepotism.''
The Colorado Department of Education is now calling for an
investigation by the Pueblo County District Attorney and the
IRS.
The Cesar Chavez Network operates three schools, one in
Denver and two in Pueblo.
The report said Chief Executive Officer Lawrence Hernandez
was paying himself $340,000 per year. He hired his wife as
chief operating officer and paid her $201,000 a year. The
chief financial officer was paid $321,000.
``This far exceeds what is the standard salary for a
charter school or even if you look at some of our larger
district superintendents,'' said CDE commissioner Dwight D.
Jones.
In fact, Hernandez, who oversaw just three schools, made
almost twice as much as the superintendent of the largest
school district in the state--Jefferson County. Jeffco School
Superintendent Cindy Stevenson makes $180,000 a year
overseeing 94 elementary schools, 20 middle schools, 17 high
schools, 10 option schools and 14 charter schools.
Hernandez and his wife then hired 20 members of their own
family from 2002 to 2008, according to the CDE report and
audit. Hernandez's wife's stepbrother was a board member and
the owner of a janitorial service that was a vendor for the
schools.
And, according to the report, school officials racked up
$400,000 in credit card charges in one year.
``I call it questionable use of taxpayer money,'' Jones
said. ``I think it's very concerning and have requested that
Pueblo City Schools take immediate action to correct some of
the improprieties that were identified.''
____

[From Seven Days/The East Bay News Blog, Jun. 18, 2012]

It's Time To Close the American Indian Public Charter Schools

(By Robert Gammon)

For the past decade Ben Chavis and his so-called American
Indian Public Charter schools in Oakland have gotten away
with egregious conduct that would be considered grossly
unacceptable for any other school--because they have had high
test scores. First, there was the revelation that Chavis
routinely abused his students verbally, humiliating them in
front of their classmates, to force them score higher on
tests or quit the school altogether.
Then came the news that Chavis had hurled racist and sexist
comments at others in front of students, and that his schools
had stopped serving American Indian children.
But that's not all. Earlier this year, a draft report by
state auditors uncovered evidence that Chavis had engaged in
fraud and was illegally pocketing taxpayer funds. Then last
week, the Express reported that one of the schools' eye-
popping test scores appear to be the product not of academic
excellence. Instead, there's evidence that the school has
been routinely cherry-picking top students from local
elementary schools in violation of district regulations. At
minimum, Chavis' schools appear to be nothing more than a
rigged system in which mostly high-scoring students apply to
get in, are accepted, and then continue to score well on
tests.
Then, the state's final audit came out and revealed some
truly disturbing evidence, including $350,000 of what appear
to be improper payouts to Chavis' wife; $355,000 in payments
to Chavis for a summer school program that violated state
law; and $348,000 to companies that Chavis owns and did
unauthorized construction projects.
Alameda County schools Superintendent Sheila Jordan
requested the audit after receiving complaints from former
school employees of financial impropriety by Chavis and his
wife. Jordan has turned the final audit results over to
Alameda County District Attorney's Office for possible
criminal prosecution.
____

[From the Miami Herald, Apr. 21, 2014]

South Miami-Based Charter School Management Company Under Federal
Scrutiny

(By Kathleen McGrory)

The state's largest charter school management company has
come under scrutiny from the U.S. Department of Education for
potential conflicts of interests in its business practices,
federal authorities have confirmed.
The Education Department's Inspector General Office is
auditing the South Miami-based Academica Corp. as part of a
broader examination of school management companies
nationwide. The audit will be complete this summer,
department spokeswoman Catherine Grant said.
A preliminary audit report obtained by the Herald/Times
identified potential conflicts of interest between the for-
profit company Academica and the Mater Academy charter
schools it manages. One example the auditors cited was the
transfer of money from Mater Academy to its private support
organization, which shares the same board of directors.
When asked about the potential conflicts of interest raised
in the report, Academica attorney Marcos Daniel Jimeenez, in
an email to the Herald/Times, touted the charter school
network's academic record and commitment to its students.
Jimeenez also said Academica had sent a response letter to
the U.S. Department of Education correcting what he called
``inaccuracies and false statements'' contained in the
preliminary report. But Academica declined the Herald/Times
request to be provided the response, saying the Education
Department considered the report and the response from
Academica to be confidential.
The Education Department's findings come as the Florida
Legislature considers a bill that could weaken school
districts' ability to control business practices at new
charter schools.

[[Page H4031]]

Under current law, school systems have the power to
negotiate contracts with new charter schools. HB 7083 would
mandate the use of a standardized contract, meaning school
districts would give up most of their leverage.
Charter schools are funded by tax dollars, but run by non-
profit governing boards that function independently of local
school boards. Some are managed by for-profit companies like
Academica.
Academica oversees nearly 100 charter and virtual charter
schools in Florida, according to its website. It also manages
schools in Texas, Nevada, Utah, California and Washington,
D.C.

____
Charter School Vulnerabilities to Waste, Fraud, and Abuse, A Report
From The Center for Popular Democracy & Integrity in Education, May
2014

The Center for Popular Democracy is a nonprofit
organization that promotes equity, opportunity, and a dynamic
democracy in partnership with innovative base-building
organizations, organizing networks and alliances, and
progressive unions across the country.
Integrity in Education is a nonprofit organization
dedicated to restoring integrity in education. Integrity in
Education exists to shine a light on the people making a
positive difference for children, and to expose and oppose
the corporate interest groups standing in their way.

Preamble

The title of this report, Charter School Vulnerabilities to
Waste, Fraud, and Abuse, was borrowed from the title of a
section of a report that appeared in The Department of
Education's Office of the Inspector General's Semiannual
Report to Congress, No. 60. The report references a
memorandum issued by the OIG to the Department. The OIG
stated that the purpose of the memorandum was to, ``alert you
of our concern about vulnerabilities in the oversight of
charter schools.'' The report went on to state that the OIG
had experienced, ``a steady increase in the number of charter
school complaints'' and that state level agencies were
failing ``to provide adequate oversight needed to ensure that
Federal funds [were] properly used and accounted for.''
The purpose of this report is to echo the warning issued by
the OIG and to inform the public and lawmakers of the
mounting risk that an inadequately regulated charter industry
presents to our communities and taxpayers. Our examination,
which focused on 15 large charter markets, found fraud,
waste, and abuse cases totaling over $100 million in losses
to taxpayers. Despite rapid growth in the charter school
industry, no agency, federal or state, has been given the
resources to properly oversee it. Given this inadequate
oversight, we worry that the fraud and mismanagement that has
been uncovered thus far might be just the tip of the iceberg.
Our hope is that lawmakers will use the information and
concrete recommendations that we outline in this report to
pass meaningful oversight legislation.

Ms. CASTOR of Florida. I ask for approval of this amendment regarding
conflict of interest.
I yield back the balance of my time.

{time} 1015

Mr. KLINE. Mr. Chairman, I rise in opposition to this amendment and
claim the time.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. KLINE. Mr. Chairman, this amendment would require the Secretary
of Education to not only develop, but also enforce, guidelines on
conflict of interest for charter schools. The gentlewoman points out
that there are charter schools and charter school managers who
sometimes don't perform as they should.
We believe very strongly that the underlying law and that the
underlying bill here addresses that issue, because this amendment is an
overreach of Federal authority. Each State that allows charter schools
has determined what requirements the schools must follow in creating,
opening, and operating the schools. We address the authorizing
responsibilities in the underlying bill.
Simply put, this amendment is unnecessary. The underlying bill
includes several provisions to have States help schools run more
effectively and includes a set-aside of each State grant for quality
authorizing. Quality authorizing will help each charter school run more
effectively, both in academics and in operations.
We do not need the Secretary of Education getting more involved in
these schools by layering on more burdensome requirements. These are
issues best addressed at the State and local level, and the underlying
bill already provides support for these efforts.
Mr. Chairman, I urge my colleagues to oppose this amendment, and I
yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentlewoman from Florida (Ms. Castor).
The question was taken; and the Acting Chair announced that the noes
appeared to have it.
Ms. CASTOR of Florida. Mr. Chair, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentlewoman from Florida
will be postponed.

Amendment No. 4 Offered by Ms. Moore

The Acting CHAIR. It is now in order to consider amendment No. 4
printed in part A of House Report 113-444.
Ms. MOORE. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:

Page 8, line 1, strike ``7 percent'' and insert ``5
percent''.
Page 8, line 3, strike ``and''.
Page 8, line 6, strike the period at the end and insert ``;
and''.
Page 8, after line 6, insert the following:
``(D) reserve not less than 2 percent of such funds for
oversight of the use of public funds (which shall cover
Federal, State, and local funds) and private funds by each
public chartering agency in the State of the State entity for
each charter school authorized by such agency, by each local
educational agency in the State for each charter school
served by such agency, and by the State as a whole for each
charter school in the State, which shall include the
investigation of fraud, waste, mismanagement and misconduct,
including monitoring the annual filing and public reporting
of independently audited financial statements (including
disclosure of amount and duration of any Federal, State, and
local, and private financial and in-kind contributions of
support, and expenditures of such support).''.

The Acting CHAIR. Pursuant to House Resolution 576, the gentlewoman
from Wisconsin (Ms. Moore) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentlewoman from Wisconsin.
Ms. MOORE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chair, I rise to offer an amendment to H.R. 10, which
reauthorizes our Nation's charter school program. I would just like to
start out by saying this is a great improvement over the charter school
legislation that we have seen in past times.
When the charter school movement began, as many of you may recall,
lawmakers exempted those schools from many of the rules governing
traditional public schools in order to allow educators their ability to
explore new, innovative methods and models of teaching.
This yielding of exempting them from this rule yielded some
unintended consequences. There have been stories in many States, and
you just heard Ms. Castor of Florida talk about financial waste, fraud,
murky funders or managers, conflicts of interest. It is a problem,
notwithstanding our desire to see innovation.
This has got to be addressed because taxpayer dollars are, in fact,
lost along with private funds, as well as innovation. The greatest
cost, of course, is our children, who become, sometimes, puppets of
other folks' financial interests.
A new report from the Center for Popular Democracy and Integrity in
Education released just this month examined 15 of the largest charter
markets and found $100 million in losses to taxpayers since charter
schools entered these markets.
It is very important to put sensible oversight into place to ensure
that public funds are not being wasted or misused. This amendment does
just that. It simply requires that States receiving charter school
grants must set aside 2 percent of that grant to provide financial
oversight of charters of publicly funded money and to disclose private
contributions that they receive.
I just want to say, anticipating some rebuttal, that the funds would
be set aside and the authorizing agencies of these charter schools, be
they the State or the local education agency, would be able to use the
set-aside for appropriate financial oversight.
With that, I reserve the balance of my time.
Mr. KLINE. Mr. Chairman, I rise in opposition to the amendment.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. KLINE. Mr. Chairman, this amendment will force States to reserve

[[Page H4032]]

more funds for review of public and private charter school funding.
The underlying bill, Mr. Chairman, includes audits as an important
aspect of quality authorizing measures.
In addition, States already require multiple audits of their charter
schools. This amendment will take money away from the quality
authorizing set-aside, where funds will otherwise be used to support
measures to open and run schools with effective operations practices in
addition to high-quality academics.
Mr. Chairman, I urge my colleagues to oppose this amendment.
Mr. GEORGE MILLER of California. Will the gentleman yield?
Mr. KLINE. I yield to the gentleman from California.
Mr. GEORGE MILLER of California. Unfortunately, I too oppose this
amendment of my good friend, Ms. Moore, for the reasons that the
chairman has just said, that we believe that much of this is already
taken care of in the underlying bill and that we are directing money
away from the program for responsibilities that should in fact be the
responsibility of the authorizers, be they the State or local
authorizers. That is their job. We are trying to strengthen that in
this legislation to lead to high-quality expansion of these programs,
with the caveat being that you can only authorize those high-quality
programs that deal with the question of accountability and so forth.
I too find myself in the unfortunate position of opposing my friend
on this legislation and expect the States, in response to continuing to
receive these grants, to step up to their responsibility to deal with
these problems.
Mr. KLINE. I reserve the balance of my time.
Ms. MOORE. Mr. Chairman, I think it is unfortunate that the gentleman
from California is opposing this amendment as well and my Republican
friends opposing it, because we often find ourselves talking about
unfunded mandates. What my amendment does is try to make sure that we
are providing not only the guidance and insistence that there be
audits, but that we actually provide the ways and means for it to be
done.
It is one thing to say, oh, yeah, they are going to audit themselves.
With what? Audits cost money. So I find it unfortunate that they would
pass this unfunded mandate on to these chartering agencies.
I would urge my colleagues to vote for this amendment. I think it
improves the bill. I think it provides the needed resources for this
accountability, these accountability activities.
With that, I yield back the balance of my time.
Mr. KLINE. Mr. Chair, how much time do I have?
The Acting CHAIR. The gentleman from Minnesota has 3\1/2\ minutes
remaining.
Mr. KLINE. Mr. Chairman, I yield myself such time as I may consume.
I think the points were made. I thank the ranking member, Mr. Miller,
for making those points.
What concerns me about the gentlewoman's amendment is this is going
to take money away from the purposes for which we have designed it and
put it in this bill. We are trying to make sure that good, high-quality
charter schools can be expanded and replicated, and this will detract
from that ability.
So I urge my colleagues to vote ``no,'' and I yield back the balance
of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentlewoman from Wisconsin (Ms. Moore).
The amendment was rejected.

Amendment No. 5 Offered by Ms. Bass

The Acting CHAIR. It is now in order to consider amendment No. 5
printed in part A of House Report 113-444.
Ms. BASS. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:

Page 14, line 16, insert ``, including eliminating any
barriers to enrollment for foster youth or unaccompanied
homeless youth,'' after ``students''.

The Acting CHAIR. Pursuant to House Resolution 576, the gentlewoman
from California (Ms. Bass) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentlewoman from California.
Ms. BASS. Mr. Chairman, I rise today to offer an amendment along with
fellow congressional Caucus on Foster Youth cochairs Tom Marino, Jim
McDermott, and Michele Bachmann. I also want to thank the chairman and
the ranking member for their leadership on this issue.
This amendment will help ensure that foster and homeless youth are
not unfairly disadvantaged in the enrollment process for charter
schools.
Across the country, charter schools often have requirements that
don't exist in traditional public schools. For example, they may
require parent interviews or parent involvement volunteer service
during the academic year. Sadly, foster and homeless students might not
be able to meet that requirement because they might not have adults in
their life that are available to meet these standards, and foster
parents may be unwilling or unable to do this. In turn, these youth may
not be able to attend charter schools.
This really isn't acceptable, especially since the academic
achievement gap between foster youth and their peers is quite
significant. In fact, a recent study by the Stuart Foundation in
California indicated that test results for students in foster care fell
into the two lowest performance levels for language arts and
mathematics at twice the rate of the statewide student population.
Additionally, the 2010 graduation rate for all high school seniors was
84 percent; but for students in foster care, it was just 58 percent,
the lowest rate among at-risk student groups.
Foster and homeless youth need more educational options, not less.
This amendment will provide the nearly 400,000 foster youth and 1.7
million homeless youth in the United States with greater access to
quality schools.
In the spirit of National Foster Care Month this May, I want to thank
the Democrats and Republicans in the Foster Youth Caucus who came
together to author this commonsense but necessary amendment.
I urge my colleagues to support the amendment.
Mr. GEORGE MILLER of California. Will the gentlewoman yield?
Ms. BASS. I yield to the gentleman.
Mr. GEORGE MILLER of California. Mr. Chair, I rise in support of this
amendment to ensure that all students reap the benefits of the public
charter schools. That is the purpose of this legislation, and certainly
including foster youth.
I also rise to thank the gentlewoman for her just unrelenting effort
to make sure that foster youth are not diminished because of their
family status, if you will, because of the uncertain situation that
they find themselves, many times in different situations throughout a
given year, maybe in different schools. Both in her time in the State
legislature and here in the Congress, she has just been remarkable in
her advocacy on behalf of these students.
We all know the difficulty that these students have, the uncertainty
that they have to deal with. Just the proximity of their families to be
able to go to school creates a great deal of hardship and difficulty
for these students. We definitely owe them an extra effort to make sure
that they get full inclusion in those academic offerings and
participation in the charter schools in this country.
Thank you so very, very much.
Ms. BASS. Thank you, Mr. Ranking Member, and I urge my colleagues to
support the amendment.
I yield back the balance of my time.
Mr. KLINE. Mr. Chairman, I claim the time in opposition although I am
not opposed to the amendment.
The Acting CHAIR. Without objection, the gentleman from Minnesota is
recognized for 5 minutes.
There was no objection.
Mr. KLINE. Mr. Chairman, I yield 1 minute to the gentleman from
Virginia (Mr. Cantor), the distinguished majority leader.
Mr. CANTOR. Mr. Chairman, I thank the chairman, the gentleman from
Minnesota, as well.
Mr. Chairman, I rise today in support of the amendment and in strong
support of the Success and Opportunity Through Quality Charter Schools
Act.
Mr. Chairman, a great education is the foundation that Americans need
to climb the economic ladder of success and to build a bright future.
America doesn't work when our students are trapped in failing schools
or denied the

[[Page H4033]]

opportunity to attend the school that meets their learning needs.
For far too many children in our country, a quality education remains
out of reach. Kids without access to a quality education struggle to
even see any opportunity to get ahead. They struggle to lift themselves
out of a life of poverty.
Expanding education opportunity for all students everywhere is the
civil rights issue of our time. Fortunately, we have a chance today to
bring more opportunities to students all over America who are looking
for that chance to learn, to grow, and to succeed.

{time} 1030

The legislation before us today will reform existing programs and
will authorize grants so that high-performing charter schools can
expand and be replicated throughout the country. It will also give
families and students more freedom, flexibility, and choice when it
comes to deciding where they can go to school.
Currently, Mr. Chairman, there are almost 1 million students stuck on
waiting lists for charter schools simply because there aren't enough
slots. I say we help those students by expanding those slots so they
can get off the waiting lists and into the classroom.
Taking such action would seem like the obvious and smart thing to do.
However, there are some who are more beholden to special interests than
to the children's needs. In New York City, the mayor there, Bill de
Blasio, recently attempted to deliver on his threat to kick public
charter schools out of the space that they share or were planning to
share with other traditional public schools. This kind of activity
completely undermines the essence of education reform.
Fortunately for New York City students, Governor Cuomo did not allow
this to become a reality. Those kids who would otherwise have ended up
without a school in the fall now have one. This bill provides even more
opportunities for States like New York State to help high quality
charter schools expand and replicate.
Those who choose to wage a war on kids stand on the wrong side of
this debate and risk allowing themselves to become enemies of
opportunity and roadblocks to success. Bottom line, the expansion of
charter schools will work.
In my hometown of Richmond, I have toured the Patrick Henry School of
Science and Arts, one of only a few charter schools in all of Virginia.
There I met a retired public school teacher named Gwen. Gwen's grandson
had a particular interest in science, but Gwen felt that the school he
attended wasn't offering a strong enough science curriculum to match
her grandson's needs and desires. Fortunately, Gwen had a choice and
now sends her grandson to Patrick Henry. More families deserve that
kind of choice.
In visits to other charter schools throughout the country, I have met
dozens of children who were once trapped in failing schools and schools
that couldn't meet their individual learning needs. These kids are now
attending charter schools and they are thriving.
These are not isolated cases. Nationally, charter school students do
better than non-charter students in reading, math, and science. While
the growth of charters is relatively new, charter schools currently
make up more than a quarter of the Newsweek/U.S. News Best High Schools
in America. The question is: Shouldn't more of our children have the
chance to attend a quality school that happens to be a charter school?
Mr. Chairman, this legislation is about upward mobility. It is about
giving families and students more hope for their future. This
legislation is about expanding education opportunity for more kids so
that we can begin to create an America that works again and works again
for everybody.
This should not be a partisan issue. This is a bill we can all
proudly get behind. Today, let's stand united and show our constituents
that we understand a strong education is the first rung in climbing
that economic ladder of success.
I want to thank Chairman Kline, the gentleman from Minnesota, for his
tireless work in the area of education, and in this bill in the area of
charter schools. I also want to thank the gentleman from California,
the ranking member, for his work on this legislation.
I urge my colleagues in the House in a bipartisan fashion to support
this legislation.
Mr. KLINE. Mr. Chairman, this amendment ensures that foster kids do
not face barriers to enrollment in charter schools. The amendment does
improve the bill and does help foster kids.
I want to thank the gentlewoman from California (Ms. Bass) for
offering this amendment.
I am pleased to yield the remainder of my time to the gentleman from
Colorado (Mr. Polis).
Mr. POLIS. Mr. Chairman, I want to thank Chairman Kline and Ranking
Member Miller for their work, and Representative Bass for her
leadership in working with youth and foster care, and homeless youth in
particular, on this bill.
Before I came to Congress I founded a charter school with the focus
of serving homeless youth and youth in transitional housing called the
Academy of Urban Learning in Denver. Not every area, not every city,
not every county might have a charter school with a particular focus of
working with kids that are in transitional housing, so it is incumbent
upon us to ensure that all public charter schools that are supported
under this bill ensure that they don't have barriers for foster youth
or barriers for youth in transitional housing.
There are a lot of particular needs around kids that are going
through turmoil in their home life, whether it is at the elementary
level or whether it is at the high school level. By adding the language
Representative Bass introduced in her bipartisan amendment, we can
ensure that any participant in the Federal charter school program
doesn't have any barriers to enrolling kids.
This week here on the floor of the House has been characterized by
partisan rancor around Benghazi and Lois Lerner. How wonderful that
Democrats and Republicans can come together not only around this
amendment by Karen Bass, but also around the bill itself. The upgrade
of the Federal Charter Schools Program to the 2.0 version takes into
account the learning of the last 15 years to ensure that our very
limited Federal footprint and investment has the maximum possible
impact on increasing student achievement and increasing transparency
and accountability for public charter schools.
I thank Representative Bass for offering her amendment, which I am
proud to support.
Mr. KLINE. Mr. Chairman, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentlewoman from California (Ms. Bass).
The amendment was agreed to.

Amendment No. 6 Offered by Mr. Messer

The Acting CHAIR. It is now in order to consider amendment No. 6
printed in part A of House Report 113-444.
Mr. MESSER. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:

Page 16, line 7, strike ``and''.
Page 16, line 13, insert ``and'' at the end.
Page 16, after line 13, insert the following:
``(xv) will work with eligible applicants receiving a
subgrant under the State entity's program to support the
opening of charter schools or charter school models described
in clause (i) that are secondary schools;''.

The Acting CHAIR. Pursuant to House Resolution 576, the gentleman
from Indiana (Mr. Messer) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Indiana.
Mr. MESSER. Mr. Chairman, I want to thank the chairman and ranking
member for their leadership on this bill.
I rise today to offer a simple amendment that will encourage the
opening, replication, and expansion of high quality secondary charter
schools.
Too many students don't have the chance to attend the secondary
charter school of their choice because there simply are not enough of
these schools to meet the demand for them. Many charter networks don't
have a secondary school, and where there are such schools the demand
for the spots

[[Page H4034]]

in these schools exceeds the number of slots available.
The underlying bill takes a big step in the right direction to meet
this challenge by clarifying that State-determined weighted lotteries
are permitted under the charter school program.
The bill allows for children to continue in the school program of
their choice by ensuring students in affiliated charter schools can
attend the next immediate grade in a charter school network. This is
very important. It will help alleviate the need for students to
essentially win the lottery twice. However, I believe more can and must
be done.
My amendment is designed to help build on the progress made by the
underlying bill. It would simply require State entities applying for
charter school program grant funds to explain how they will work with
eligible applicants within the State to encourage the opening,
replication, and expansion of high quality secondary charter schools.
By encouraging grantees to open, replicate, and expand high quality
secondary charter schools, more students who want to continue attending
such schools will be able to do so.
As the founder and chairman of the Congressional School Choice
Caucus, one of my top priorities is ensuring that more families have
access to high quality educational opportunities. Supporting the growth
of successful secondary charter schools is critically important to this
effort.
I urge my colleagues to support this amendment and the underlying
bill.
I reserve the balance of my time.
Mr. POLIS. Mr. Chairman, I claim the time in opposition, although I
am not opposed to the amendment.
The Acting CHAIR. Without objection, the gentleman from Colorado is
recognized for 5 minutes.
There was no objection.
Mr. POLIS. Mr. Chairman, I rise in strong support of the Messer
amendment, which encourages States to support the opening or
replication of charter schools that are secondary schools.
The area that this impacts and improves in the bill is one of the
most important policy changes over the previous authorizing program.
Under the current Federal Charter Schools Program, only new schools can
be funded and participate in this program.
What we allow under this bill is the replication and expansion of
models that we know work. For instance, if there is a K-8 school that
wants to expand into high school or there is a school that wants to
growth from 400 to 600 students, if we have the evidence-based
information that shows that that school is transforming lives and
helping kids achieve, we want to ensure that we can have the maximum
possible impact with our limited Federal dollars.
What this amendment does is it ensures that States as part of their
plan allow for the replication and expansion of public charter schools.
I want to thank my colleague from Indiana for recognizing the
importance of charter schools in serving high school students and the
opportunity that these models have to provide a flexible educational
environment for older students to prepare them for college and careers.
The charter school models that are allowed give schools the
flexibility they need to meet the needs of the students, whether it is
longer hours, longer school years, additional support service, or
daycare vouchers for pregnant or young mother teens. This flexibility
can be critical to helping students succeed at the secondary level.
This amendment improves the bill and makes sure that States encourage
the opening, replication, and expansion of public charter high schools.
Having founded two public charter high schools myself before I served
in the United States Congress, I can personally give testimony to the
transformational impact that it has on young people every day. In many
cases, young people that would otherwise be dropouts or not even in the
public education system are able to have a specific educational product
that is tailored around their real world needs. There is a charter
school for pregnant teens in Montrose, Colorado. Whether it is a
vocational or work focus school that gives kids the skills they need to
compete in the workforce, the Messer amendment is a step forward in
building upon the language which is already an improvement over the
existing authorization, and brings it to a better place that we can all
be proud of, Democrats and Republicans.
I reserve the balance of my time.
Mr. MESSER. Mr. Chairman, I want to thank my colleague, the gentleman
from Colorado (Mr. Polis), for his support of this amendment, and, more
importantly, for his remarkable vision and leadership in charter
schools across the country.
I have no further comments, and I yield back the balance of my time.
Mr. POLIS. Mr. Chairman, in this week of partisan divisions here on
the floor of the House of Representatives, we have a unique opportunity
in this amendment, in this bill, to come together around supporting
public charter schools.
This week, Mr. Chairman, is Public Charter Schools Week. What better
way to celebrate than to upgrade the Federal Charter Schools Program
with language that Democrats, Republicans, and all important
stakeholders can agree on. Truly, all stakeholders are part of this
discussion. Authorizers, including districts and States and special
districts, public charter schools themselves, teachers unions,
teachers, were all at the table to ensure that we can create a program
that builds upon the successes of the two decades of the public charter
school movement and will allow it to reach even greater heights in the
next decade.

On behalf of Ranking Member Miller and myself, we are proud to
support the Messer amendment. We are also proud to support the
underlying bill.
By ensuring that States that apply for this program explain how they
will work with applicants to encourage replication and expansion at the
secondary level, we can ensure that the needs of all students are
better met. Particularly, in many areas of our country we have high
schools that are persistently failing, with dropout rates of 50 percent
year after year, where half the kids coming in the door in ninth grade
don't leave in 12th. Through upgrading with better opportunities for
parents to choose, we can turn it around and make sure that kids have
the opportunity to graduate and have a good job in an economy in the
21st century that increasingly relies on both a high school education
and a college education.
I rise in support of this amendment, I urge my colleagues to vote
``yes'' on this amendment, and I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Indiana (Mr. Messer).
The amendment was agreed to.

{time} 1045

The Acting CHAIR. The Chair understands that amendment No. 7 will not
be offered.

Amendment No. 8 Offered by Ms. Jackson Lee

The Acting CHAIR. It is now in order to consider amendment No. 8
printed in part A of House Report 113-444.
Ms. JACKSON LEE. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:

Page 21, line 15, strike ``and''.
Page 22, line 2, strike the period at the end and insert
``; and''.
Page 22, after line 2, insert the following:
``(H) the State entity will ensure that charter schools and
local educational agencies serving charter schools post on
their websites materials with respect to charter school
student recruitment, student orientation, enrollment
criteria, student discipline policies, behavior codes, and
parent contract requirements, including any financial
obligations (such as fees for tutoring or extracurricular
activity).''.

The Acting CHAIR. Pursuant to House Resolution 576, the gentlewoman
from Texas (Ms. Jackson Lee) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentlewoman from Texas.
Ms. JACKSON LEE. Let me thank the proponents of this bill.
Mr. Chairman, this is a very important bill, and I believe it opens
the doors of opportunity for quality and excellence in charter schools.
I hope, as we move forward as to the issues dealing with charter
schools that are located in minority communities and

[[Page H4035]]

that are created by minority members of the community, like in Texas,
where in some instances there is an unfair process, H.R. 10 will bring
an evenness and a quality in excellence and also opportunity for the
creativity of charter schools that can lift up at-risk children. I
think that is one of the key elements of, hopefully, this legislation.
I want to cite in my own district that we have, yes, KIPP and Harmony
that are well-known across the country and somewhat around the world.
It is my understanding that KIPP is now moving to Israel, but we also
have a school like Pro-Vision, its work of which I have known for over
20 years. It lifts at-risk children up to the levels of opportunity.
My amendment is an amendment that directs the Web site publication of
materials on the Web sites of charter schools regarding student
recruitment, orientation materials, enrollment criteria, student
discipline policies, behavior codes, and parent contract requirements.
It would also include any financial obligations, such as fees for
tutoring or extracurricular. That is transparency. That is allowing, if
you will, the opportunity for parents to have full information in a
different setting from public schools.
My children went to public schools. I went to public schools. I
believe in public schools--I strongly believe in them--but I believe
this new idea, that of the partnership of charter schools with public
schools, should include a format of transparency.
I should be clear that public schools have a challenge with
transparency as well. As I interact with my constituents, many parents
don't know the opportunities that they may have in a public school--
vanguard or the special classes that they may have or sufficient arts
and music and which school has it; yet as this is going to be a
federally funded program, it is important to ensure that our parents
have information.
Certainly, they should have information regarding the kind of
discipline atmosphere that is there. They should also know whether or
not there are serious commitments to making sure that their children's
holistic futures are in front of them and that they are not subjected
to policies that would intervene on issues dealing with bullying or
with the prevention of bullying.
This is a very good amendment to H.R. 10, and I ask my colleagues to
support it.
I reserve the balance of my time.
Mr. KLINE. Mr. Chairman, I claim the time in opposition to the
amendment.
The Acting CHAIR (Mr. Poe of Texas). The gentleman from Minnesota is
recognized for 5 minutes.
Mr. KLINE. Mr. Chairman, I want to say to my colleague that I really
appreciate her effort to ensure that all schools, both traditional
public schools and public charter schools, share the information needed
by parents.
We agree on that point, and I believe that the underlying bill
addresses it; so I must, regrettably, oppose the gentlelady's
amendment, but I certainly thank her for the discussion.
I reserve the balance of my time.
Ms. JACKSON LEE. Mr. Chairman, it is not often that we mention our
great disappointment on the floor of the House. We usually battle it
out. I know I am right on this amendment, and I am highly disappointed
in the majority's representation.
I would like to submit for the Record a letter from the AFT, which is
supporting the Jackson Lee amendment extremely enthusiastically, and a
letter from the National Education Association, which is endorsing the
Jackson Lee amendment.
It is strongly supported by the NEA, which gives me pause as to why
this amendment is an amendment that is not agreed to.

American Federation of Teachers,

Washington, DC, May 8, 2014.
House of Representatives,
Washington, DC.
Dear Representative: On behalf of the more than 1.5 million
members of the American Federation of Teachers--including
individual AFT members who teach in charter schools and who,
with me, wrote to you this week--I offer our collective views
on H.R. 10, the Success and Opportunity through Quality
Charter Schools Act, as well as our position on several
important amendments that will be considered during today's
debate on the underlying bill.
The bill combines a number of existing charter school
programs into one that would provide federal funds for new
charters; expand and replicate existing charters; acquire,
construct and renovate facilities; establish and administer
per-pupil facilities-aid programs; and, fund national
activities. H.R. 10 provides important accountability
measures for charter schools but, primarily, provides for
their expansion.
Since our former President Albert Shanker first promoted
them, the AFT has believed that publicly financed charter
schools have a role in public education. The best charters
have served as incubators of good practice and have helped
provide parents and students access to high-quality public
education. For example, in 2013, University Prep, a unionized
public charter school started by Steve Barr, founder of Green
Dot Public Schools, and me several years ago in New York
City, graduated every single child, all of whom were admitted
to college.
The reality in communities across the country is a mixed
bag--while many charter schools are well-managed and serve
the children who are accepted and decide to attend, many
others do not provide equitable access for all students, are
poorly managed, and are not transparent with their finances.
Further, there are unfortunately too many instances where
charters are used as a tool to destabilize or compete with
other public schools.
H.R. 10 includes many provisions to bring charter schools
closer to the standards of accountability, equitable access,
and transparency that traditional public schools must meet,
but there are still real gaps. Improved accountability and
transparency is owed to the students who attend charter
schools and to the taxpayers who financially support these
schools. In requiring these new standards, Congress would in
no way be limiting charter schools' potential to serve as
laboratories of innovation. It would, however, be ensuring
that those innovations are transparent, sustainable, and
scalable, and that all our public school students and their
schools are treated equitably.
The AFT is pleased the bill includes some improvements over
current law in the areas of ensuring equitable access to
charter schools for all students; in seeking to prevent
charter schools from allowing barriers to enrollment that
result in the exclusion of English language learners,
students with disabilities, and other disadvantaged students
from enrolling; and, in ensuring that charter schools are
appropriately monitored in the areas of student safety and
financial management. We also appreciate the bipartisan
acknowledgement that charter schools need better oversight by
state entities.
However, we believe that H.R. 10 can be strengthened by
approving the following amendments aimed at improving the
overall bill. To this end, we urge you to support:
Moore: This amendment would require states receiving
charter school grants to set aside 2 percent of the grant
amount for financial oversight of charters. It would also
ensure that charter schools include private and public
contributions in their audits.
A report from the Center for Popular Democracy and
Integrity in Education outlines $100 million in losses to
taxpayers in 15 of the largest charter markets since charter
schools entered these markets. This is a problem that needs
to be addressed.
H.R. 10 would provide $300 million annually in support of
charter schools. The Moore amendment would help ensure that
these funds are being properly spent and that charters are
incubators of innovation, not enablers of waste, cronyism, or
fraud. It would also help monitor the influence of private
investors by requiring the disclosure of private
contributions.
Wilson / Davis / Duckworth / Grayson / McKinley / Fudge:
This amendment would require that information about each
charter school be made available, including disaggregated
enrollment and academic performance data. This amendment will
better ensure that parents have information on how charter
schools are educating students, and will shine a light on
enrollment rates of populations that have often been excluded
from charter schools.
Additionally, the AFT urges your support for the following
additional amendments:
Jackson Lee: This amendment requires charters to publicize
their information on student recruitment, orientation
materials, enrollment criteria, student discipline policies,
behavior codes, and parent contract requirements, which
should include any financial obligations such as fees for
tutoring and extra-curricular activities.
Langevin: This amendment would provide for comprehensive
career counseling, a much needed resource in all schools.
Castor: This amendment would develop and enforce conflict
of interest guidelines for all charter schools receiving
federal assistance.
Bonamici: This amendment requires states to report on the
sharing of best practices by charter and traditional public
schools.
Sincerely,
Randi Weingarten,
President.
____

National Education Association,

Washington, DC, May 8, 2014.
Dear Representative: On behalf of the three million members
of the National Education Association (NEA), and the students
they serve, we offer our views on select amendments to the
Success and Opportunity through Quality Charter Schools Act
(H.R. 10) scheduled for votes Friday. While the underlying
bill includes some improvements to existing law, it falls
short of what is needed

[[Page H4036]]

to ensure greater accountability and transparency. Votes
associated with amendments to H.R. 10 may be included in the
NEA Legislative Report Card for the 113th Congress.
NEA supports high-quality charter schools that operate in a
manner that is transparent and accountable to parents and
taxpayers; ensures equity and access; and solicits and
benefits from input from parents, educators, and the
communities they serve. We caution, however, that charter
schools are not a panacea for solving all education
challenges.
Some provisions of the underlying bill represent
improvements, such as requiring greater charter authorizer
accountability, and including weighted lotteries to address
under-enrollment of disadvantaged students. However, the
underlying bill falls short in key areas: including no
mandatory disclosure and reporting on key data including
funding from private sources, no independent audit
requirements, no open meetings requirements and no conflict
of interest guidelines. Please refer to NEA's full letter on
the underlying bill for more details.
NEA's views on specific amendments are listed below.
The following are amendments strongly supported by NEA:
#3 by Rep. Castor--Requires the Secretary of Education to
develop and enforce conflict of interest guidelines for all
charter schools receiving federal assistance. Guidelines must
include disclosures from anyone affiliated with the charter
school that has a financial interest in the school.
#4 by Rep. Moore--This amendment would establish a two
percent set-aside of funds to assist with state oversight of
their charter schools, and ensure disclosure of private
sources of funding in audits.
#7 by Reps. Grayson/Clarke/Wilson--This amendment ensures
that an application by a state entity to receive grants
through the Charter School Program contains an assurance that
charter schools will also measure student retention rates in
their annual performance assessments--as well as graduation
rates and student academic growth, as currently required by
this bill.
#8 by Rep. Jackson Lee--This amendment ensures that charter
schools make certain information publicly available on their
website including student recruitment, enrollment criteria,
student discipline policies, behavior codes, and any parent
contract requirements or financial obligations.
#9 by Reps. Wilson/R. Davis/Duckworth/Grayson/McKinley/
Fudge--This amendment will ensure collection and public
dissemination of information that will help parents make
informed decisions about education options for their
children, including disaggregated data on student outcomes,
suspensions, and expulsions.
#12 by Rep. Loretta Sanchez--This amendment requires states
to report how they have worked with their charter schools to
foster community involvement.
NEA is also supportive of these amendments to H.R. 10:
#5 by Reps. Bass/Marino/McDermott/Bachmann--This amendment
ensures there are no unnecessary barriers for foster youth in
charter school enrollment and ensures the inclusion and
retention of all students no matter the involvement or lack
of involvement of parents.
#10 by Reps. Langevin/G. Thompson--This amendment would add
comprehensive career counseling to the criteria that the
Secretary of Education will take into account when
prioritizing grants to school districts.
#11 by Rep. Bonamici--This amendment would clarify the
reporting requirements of State entities to include the
sharing of best practices by charters and traditional public
schools.
We thank you for your consideration of our views on these
select amendments and urge your support for them.
Sincerely,
Mary Kusler,
Director, Government Relations.

Ms. JACKSON LEE. Mr. Chairman, let me conclude my remarks by saying
that, across America, children are bullied every day, and across
America, parents are baffled by the educational system.
Any time that you can reinforce this idea of transparency, I believe
that it is an important step forward, and I would hope that my
colleagues would be able to support this amendment. I believe it is a
strong, but positive amendment.
I yield to the gentleman from Minnesota for an inquiry, please, to
the chairman of the committee.
What modification could occur with this amendment? It is a strong
amendment that is supported by educational groups, and it just
reinforces, I believe, in a more specific manner the intent of H.R. 10.
Mr. KLINE. Will the gentlewoman yield?
Ms. JACKSON LEE. I yield to the gentleman from Minnesota.
Mr. KLINE. I thank the gentlelady.
Mr. Chairman, my concern with the amendment is that this puts
additional reporting requirements on the charter schools that are not
required of traditional public schools.
We are trying to make it easier, and we are trying to streamline the
process. We are trying to expand the charter school movement of quality
charter schools, and I don't think we should be adding additional
burdens onto charter schools which make it harder for them to move
forward.
The Acting CHAIR. The time of the gentlewoman has expired.
Mr. KLINE. Mr. Chairman, I do appreciate the gentlelady's efforts to
get information out there.
As I said earlier, unfortunately, I want to be very, very careful in
avoiding adding additional burdens or more red tape or more
requirements to charter schools at the very time when we are trying to
streamline the system and make it easier to expand and to replicate
quality charter schools.
So, unfortunately, I encourage my colleagues to vote ``no'' on the
amendment.
I yield back the balance of my time.
Ms. JACKSON LEE. Mr. Chair, I would like to offer my thanks and
appreciation to Chairman Kline and Ranking Member Miller for all of
their work in their stewardship in bringing this strongly bipartisan
bill to the House Floor for consideration.
They have both worked hard on ways to improve education for our
nation's youth and I have had the pleasure of working with the Chair on
many issues of mutual interest for the improvement of education.
Mr. Chair, thank you for this opportunity to explain my amendment to
H.R. 10. My amendment directs State Education Agencies that award
Federally funded grants to charter schools under this bill to work with
those schools so that they provide information on their websites
regarding student recruitment, orientation materials, enrollment
criteria, student discipline policies, behavior codes, and parent
contract requirements, which should include any financial obligations
such as fees for tutoring, and extra-circular activities.
My amendment has the support of the National Educational Association
and the American Federation of Teachers. I have letters from both
organizations that I would like included in the Record along with my
statement.
Charter schools were new--but today they have become for many parents
an important public education option. Not all public charter schools
have been successful, but the work of those that have been successful
have led us to this point of considering legislation to provide
additional Federal funding for the creation of additional charter
schools.
This amendment is a pro-education consumer amendment that would
educate parents who are investigating the public charter school option
for their child's education.
The Jackson Lee Amendment will make it possible for parents to learn
more about how schools deal with important education issues such as
academic performance, enrichment programs, anti quality of education
life issues programs for children with learning disabilities like
dyslexia are taught.
Many public charter schools provide this information online, and the
amendment would support this good transparency practice. The Jackson
Lee amendment is good for parents and for charter schools because
parents would have access to information that helps them make education
decisions for their children; and charter schools would speak to a
larger audience regarding their education programs.
This information being provided on Charter School websites would help
us better understand what public charter schools are offering to
parents and students. It would also bring additional transparency
regarding the drivers of higher enrollment in public charter schools
and promote greater public awareness regarding polices on such as
discipline, counseling, drop-outs, bullying, as well as programs that
impact of education on children with learning disabilities like
dyslexia on student retention.
In Houston, I have had the benefit of seeing the work of public
charter schools at work: Harmony Public Schools, YesPrep Public Charter
Schools, and KIPP Public Charter Schools have made tremendous
advancements.
It is my hope that charter school districts and charter schools will
take up the challenge of providing hard data to make the case for their
approaches to education.
I offered two amendments for consideration by the House Rules
Committee that would strengthen the legislative goals of H.R. 10.
I also offered a second Jackson Lee Amendment in the form of a
``Sense of the Congress'' on the promotion of, and support for anti-
bullying programs in charter schools, including those that serve rural
communities not supported by the Rules Committee. I regret that this
amendment was not made in order for consideration of this bill because
the prevention of bullying is one of the most challenging problems
facing school officials.
Bullying is not a new behavior. Kids have been exposed to bullying in
school for generations. Now, however, bullying has taken on

[[Page H4037]]

new heights and sometimes victims of bullies suffer severe and lasting
consequences.
For victims of bullying, they go to school every day facing
harassment, taunting, and humiliation. Studies show that 25-35 percent
of teens encountered some type of bullying in their lifetime. Bullying
is a form of violent behavior that happens not only in the schools but
everywhere.
The National Center for Educational Studies reports show that 14
percent of 12- to 18-year-olds surveyed report being victims of direct
or indirect bullying. 1 out of 4 kids is bullied. The Department of
Justice reports that 1 out of every 4 kids will be abused by another
youth.
I introduced H.R. 2585, the Juvenile Accountability Block Grant
Reauthorization and the Bullying Prevention and Intervention Act of
2013. This bill amends the Omnibus Crime Control and Safe Streets Act
of 1968 by expanding the juvenile accountability block grant program
with respect to programs for the prevention of bullying to include
intervention programs. The bill's objective is to reduce and prevent
bullying and establish best practices for all activities that are
likely to help reduce bullying among young people.

This year a million children will be teased, taunted, and physically
assaulted by their peers. Bullying is the most common form of violence
faced by our nation's youth.
The frequency and intensity of bullying that young people face are
astounding:
1 in 7 students in grades K-12 is either a bully or a victim of
bullying.
90 percent of 4th to 8th grade students report being victims of
bullying of some type.
56 percent of students have personally witnessed some type of
bullying at school.
71 percent of students report incidents of bullying as a problem at
their school.
15 percent of all students who don't show up for school report it to
being out of fear of being bullied while at school.
1 out of 20 students has seen a student with a gun at school,
282,000 students are physically attacked in secondary schools each
month.
Consequences of bullying:
15 percent of all school absenteeism is directly related to fears of
being bullied at school.
According to bullying statistics, 1 out of every 10 students who
drops out of school does so because of repeated bullying.
Suicides linked to bullying are the saddest statistic.
Statistics on gun violence:
Homicide is the 2nd leading cause of death for young people ages 15
to 24 years old.
Homicide is the leading cause of death for African Americans between
ages 10 and 24.
Thirteen young people from ages 10-24 become victims of homicide
every day.
82.8 percent of those youths were killed with a firearm.
Every 30 minutes, a child or teenager in America is injured by a gun.
Every 3 hours and 15 minutes, a child or teenager loses their life to
a firearm.
In 2010, 82 children under 5 years of age lost their lives due to
guns.
One of four high school males reportedly carry a weapon to school,
with 8.6 percent of reportedly carry a gun.
87 percent of youth said shootings are motivated by a desire to ``get
back at those who have hurt them, and 86 percent said, ``other kids
picking on them, making fun of them or bullying them'' causes teenagers
to turn to lethal violence in the schools.
In 2011, over 707,000 young people, aged 10 to 24 years, had to be
rushed to the emergency room as a result of physical assault injuries.
Victims of bullying often suffer in silence and parents are the last
ones to know that their child is being bullied or may be a bully. What
once was thought to be a childhood ritual has been proven by school
psychologists, law enforcement officials, parents, and students to be
much more serious.
Anti-bullying programs can help children understand the seriousness
of bullying; and assist parents in learning the signs of bullying as
well as learning how to speak to their children about the issue of
bullying.
Mr. Chair, I ask my colleagues to support my amendment to make
information available on publicly funded charter school websites so
that parents are afforded the opportunity to make the best education
decisions for their children.
The Acting CHAIR. The question is on the amendment offered by the
gentlewoman from Texas (Ms. Jackson Lee).
The question was taken; and the Acting Chair announced that the noes
appeared to have it.
Ms. JACKSON LEE. Mr. Chairman, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentlewoman from Texas will
be postponed.

Amendment No. 9 Offered by Ms. Wilson of Florida

The Acting CHAIR. It is now in order to consider amendment No. 9
printed in part A of House Report 113-444.
Ms. WILSON of Florida. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:

Page 21, beginning line 16, amend subparagraph (G) to read
as follows:
``(G) The State entity will ensure that each charter school
in the State makes publicly available, consistent with the
dissemination requirements of the annual State report card,
information to help parents make informed decisions about the
education options available to their children, including
information for each school on--
``(i) the educational program;
``(ii) student support services;
``(iii) annual performance and enrollment data,
disaggregated by the groups of students described in section
1111(b)(2)(C)(v)(II); and
``(iv) any other information the State requires all other
public schools to report for purposes of section
1111(h)(1)(D).''.

The Acting CHAIR. Pursuant to House Resolution 576, the gentlewoman
from Florida (Ms. Wilson) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentlewoman from Florida.
Ms. WILSON of Florida. Mr. Chairman, I rise to offer an amendment to
H.R. 10.
Although I have very significant concerns about charter schools, it
is important to note that defeating H.R. 10 would not eliminate charter
schools; it would just maintain the broken status quo. As lawmakers, we
must make laws better. We must shape the narrative to benefit the
entire Nation.
So, today, I am offering a bipartisan amendment to H.R. 10 to
increase accountability, quality, transparency, and to put into
priority order access and services for disadvantaged students who are
currently underserved by charter schools.
It would require charter schools to disclose information relating to
their demographic makeup, how well they educate students, school
attendance, average class size, academic achievement gains, parental
involvement, and discipline. It holds charter schools to the same
disclosure standards as traditional public schools.
We know, when public charters are held to the same standards of
accountability, equitable access, and transparency, as in traditional
public schools, all of our students receive a better education, but
when public charters are not held to these standards, a student's
learning suffers, and taxpayers' money is wasted.
I want to thank Chairman Kline and Ranking Member Miller for their
leadership on this issue and for their support of my amendment. I also
thank the cosponsors of this amendment, Representatives Rodney Davis,
Tammy Duckworth, Alan Grayson, David McKinley, and Marcia Fudge.
Thank you for your commitment to provide every child access to a
quality education. I would appreciate your support on my amendment.
I now yield to the gentleman from Illinois, Representative Rodney
Davis.
Mr. RODNEY DAVIS of Illinois. Thank you to my colleague from Florida
for yielding time, and thank you for your leadership on this issue.
First, I want to commend my colleagues on the Education and the
Workforce Committee--Chairman Kline, Ranking Member Miller, and all of
those who serve on that committee on both sides of the aisle--for their
work in crafting this bipartisan bill that promotes quality charter
schools.
Mr. Chairman, my district is located in central and southwestern
Illinois, and we are fortunate to have many effective public schools
and also charter schools, including the public schools that my three
children attend in Taylorville, Illinois.
Successful charter schools can partner with public schools and give
children at all levels, in many of the areas of our country, more
opportunities to receive the quality education they deserve.
In over the last decade, charter schools have more than doubled in
number and now serve, roughly, 2.6 million students. As this number
continues to grow, we must make sure

[[Page H4038]]

charter schools are also like our public schools--accountable and
transparent to the taxpayers and, most importantly, to parents.
The amendment I am offering, along with my colleagues, would do just
that by requiring charter schools to collect the same data required of
public schools by our States. Additionally, our amendment ensures this
information is made public, so parents can make the best decisions for
their students.
I want to thank my colleagues for their work on this amendment; and
I, again, thank Chairman Kline for his leadership on this issue.
Ms. WILSON of Florida. Mr. Chairman, I now yield to the gentleman
from Colorado (Mr. Polis).
Mr. POLIS. I thank the gentlelady for working on this important
amendment.
Mr. Chairman, public school choice is only as good as informational
options are placed before parents. Too often, only the already
enfranchised parents have the ability to choose a school that works for
their kids.
What this amendment ensures is that all parents are able to find
publicly available information, consistent with State law, about the
quality of public school options in their areas, in order to help make
better informed decisions in the education marketplace.
For public education to work and for competition to have a
constructive impact on public education, parents and families need to
be able to make informed decisions.
This amendment is an important step towards helping families have the
information they need to make public school choice work, to make sure
that public charter schools that offer the transformational opportunity
to help kids succeed have the information placed in the hands of the
most at-risk families, as well as of the families who are already
enfranchised through active parents.
I strongly support this amendment, and I encourage my colleagues to
include it in the bill.
Ms. WILSON of Florida. Mr. Chairman, I yield back the balance of my
time.
Mr. KLINE. Mr. Chairman, I claim the time in opposition to the
amendment, although I do not oppose it.
The Acting CHAIR. Without objection, the gentleman from Minnesota is
recognized for 5 minutes.
There was no objection.
Mr. KLINE. Mr. Chairman, I very much appreciate the work that Ms.
Wilson and the other coauthors of this amendment have put into this. I
think it helps the bill, and I would urge my colleagues to support this
amendment.
I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentlewoman from Florida (Ms. Wilson).
The question was taken; and the Acting Chair announced that the ayes
appeared to have it.
Mr. KLINE. Mr. Chairman, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentlewoman from Florida
will be postponed.
The Acting CHAIR. The Committee will rise informally.
The Speaker pro tempore (Mr. Amodei) assumed the chair.

____________________