[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2616 Enrolled Bill (ENR)]

        H.R.2616

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
                                  eight


                                 An Act


 
To amend title VI and X of the Elementary and Secondary Education Act of 
               1965 to improve and expand charter schools.

    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 ``Charter School Expansion Act of 
1998''.

SEC. 2. INNOVATIVE CHARTER SCHOOLS.

    Title VI of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7301 et seq.) is amended--
        (1) in section 6201(a) (20 U.S.C. 7331(a))--
            (A) in paragraph (1)(C), by striking ``and'' after the 
        semicolon;
            (B) by redesignating paragraph (2) as paragraph (3); and
            (C) by inserting after paragraph (1) the following:
        ``(2) support for planning, designing, and initial 
    implementation of charter schools as described in part C of title 
    X; and''; and
        (2) in section 6301(b) (20 U.S.C. 7351(b))--
            (A) in paragraph (7), by striking ``and'' after the 
        semicolon;
            (B) by redesignating paragraph (8) as paragraph (9); and
            (C) by inserting after paragraph (7) the following:
        ``(8) planning, designing, and initial implementation of 
    charter schools as described in part C of title X; and''.

SEC. 3. CHARTER SCHOOLS.

    (a) Purpose.--Section 10301(b) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8061(b)) is amended--
        (1) in paragraph (1)--
            (A) by inserting ``planning, program'' before ``design''; 
        and
            (B) by striking ``and'' after the semicolon;
        (2) in paragraph (2), by striking the period and inserting ``; 
    and''; and
        (3) by adding at the end the following:
        ``(3) expanding the number of high-quality charter schools 
    available to students across the Nation.''.
    (b) Criteria for Priority Treatment.--Section 10302 of such Act of 
1965 (20 U.S.C. 8062) is amended--
        (1) in subsection (c)(2)--
            (A) in subparagraph (A), by striking ``and'' after the 
        semicolon;
            (B) in subparagraph (B), by striking the period and 
        inserting ``; and''; and
            (C) by adding at the end the following:
            ``(C) not more than 2 years to carry out dissemination 
        activities described in section 10304(f)(6)(B).'';
        (2) by amending subsection (d) to read as follows:
    ``(d) Limitation.--A charter school may not receive--
        ``(1) more than one grant for activities described in 
    subparagraphs (A) and (B) of subsection (c)(2); or
        ``(2) more than one grant for activities under subparagraph (C) 
    of subsection (c)(2).''; and
        (3) by adding at the end the following:
    ``(e) Priority Treatment.--
        ``(1) In general.--
            ``(A) Fiscal years 1999, 2000, and 2001.--In awarding 
        grants under this part for any of the fiscal years 1999, 2000, 
        and 2001 from funds appropriated under section 10311 that are 
        in excess of $51,000,000 for the fiscal year, the Secretary 
        shall give priority to States to the extent that the States 
        meet the criteria described in paragraph (2) and one or more of 
        the criteria described in subparagraph (A), (B), or (C) of 
        paragraph (3).
            ``(B) Succeeding fiscal years.--In awarding grants under 
        this part for fiscal year 2002 or any succeeding fiscal year 
        from any funds appropriated under section 10311, the Secretary 
        shall give priority to States to the extent that the States 
        meet the criteria described in paragraph (2) and one or more of 
        the criteria described in subparagraph (A), (B), or (C) of 
        paragraph (3).
        ``(2) Review and evaluation priority criteria.--The criteria 
    referred to in paragraph (1) is that the State provides for 
    periodic review and evaluation by the authorized public chartering 
    agency of each charter school, at least once every 5 years unless 
    required more frequently by State law, to determine whether the 
    charter school is meeting the terms of the school's charter, and is 
    meeting or exceeding the academic performance requirements and 
    goals for charter schools as set forth under State law or the 
    school's charter.
        ``(3) Priority criteria.--The criteria referred to in paragraph 
    (1) are the following:
            ``(A) The State has demonstrated progress, in increasing 
        the number of high quality charter schools that are held 
        accountable in the terms of the schools' charters for meeting 
        clear and measurable objectives for the educational progress of 
        the students attending the schools, in the period prior to the 
        period for which a State educational agency or eligible 
        applicant applies for a grant under this part.
            ``(B) The State--
                ``(i) provides for one authorized public chartering 
            agency that is not a local educational agency, such as a 
            State chartering board, for each individual or entity 
            seeking to operate a charter school pursuant to such State 
            law; or
                ``(ii) in the case of a State in which local 
            educational agencies are the only authorized public 
            chartering agencies, allows for an appeals process for the 
            denial of an application for a charter school.
            ``(C) The State ensures that each charter school has a high 
        degree of autonomy over the charter school's budgets and 
        expenditures.
    ``(f) Amount Criteria.--In determining the amount of a grant to be 
awarded under this part to a State educational agency, the Secretary 
shall take into consideration the number of charter schools that are 
operating, or are approved to open, in the State.''.
    (c) Applications.--Section 10303 of such Act (20 U.S.C. 8063) is 
amended--
        (1) in subsection (b)--
            (A) in paragraph (1), by inserting ``and'' after the 
        semicolon;
            (B) by redesignating paragraph (2) as paragraph (3);
            (C) by inserting after paragraph (1) the following:
        ``(2) describe how the State educational agency--
            ``(A) will inform each charter school in the State 
        regarding--
                ``(i) Federal funds that the charter school is eligible 
            to receive; and
                ``(ii) Federal programs in which the charter school may 
            participate;
            ``(B) will ensure that each charter school in the State 
        receives the charter school's commensurate share of Federal 
        education funds that are allocated by formula each year, 
        including during the first year of operation of the charter 
        school; and
            ``(C) will disseminate best or promising practices of 
        charter schools to each local educational agency in the State; 
        and''; and
            (D) in paragraph (3) (as redesignated by subparagraph 
        (B))--
                (i) in subparagraph (E), insert ``planning, program'' 
            before ``design'';
                (ii) in subparagraph (K), by striking ``and'' after the 
            semicolon;
                (iii) by redesignating subparagraph (L) as subparagraph 
            (N); and
                (iv) by inserting after subparagraph (K) the following:
            ``(L) a description of how a charter school that is 
        considered a local educational agency under State law, or a 
        local educational agency in which a charter school is located, 
        will comply with sections 613(a)(5) and 613(e)(1)(B) of the 
        Individuals with Disabilities Education Act;
            ``(M) if the eligible applicant desires to use subgrant 
        funds for dissemination activities under section 
        10302(c)(2)(C), a description of those activities and how those 
        activities will involve charter schools and other public 
        schools, local educational agencies, developers, and potential 
        developers; and''; and
        (2) in subsection (c), by striking ``10302(e)(1) or''; and
        (3) in subsection (d)(1)--
            (A) by striking ``subparagraphs (A) through (L)'' and 
        inserting ``subparagraphs (A) through (N)''; and
            (B) by striking ``subparagraphs (I), (J), and (K)'' and 
        inserting ``subparagraphs (J), (K), and (N)''.
    (d) Administration.--Section 10304 of such Act (20 U.S.C. 8064) is 
amended--
        (1) in subsection (a)--
            (A) in paragraph (4), by striking ``and'' after the 
        semicolon;
            (B) in paragraph (5), by striking the period and inserting 
        a semicolon; and
            (C) by adding at the end the following:
        ``(6) the number of high quality charter schools created under 
    this part in the State; and
        ``(7) in the case of State educational agencies that propose to 
    use grant funds to support dissemination activities under section 
    10302(c)(2)(C), the quality of those activities and the likelihood 
    that those activities will improve student achievement.'';
        (2) in subsection (b)--
            (A) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (B) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (C) by adding at the end the following:
        ``(7) in the case of an eligible applicant that proposes to use 
    grant funds to support dissemination activities under section 
    10302(c)(2)(C), the quality of those activities and the likelihood 
    that those activities will improve student achievement.'';
        (3) in subsection (f)--
            (A) in paragraph (1), by inserting before the period the 
        following: ``, except that the State educational agency may 
        reserve not more than 10 percent of the grant funds to support 
        dissemination activities described in paragraph (6)'';
            (B) in paragraph (2), by inserting ``, or to disseminate 
        information about the charter school and successful practices 
        in the charter school,'' after ``charter school'';
            (C) in paragraph (5), by striking ``20 percent'' and 
        inserting ``10 percent''; and
            (D) by adding at the end the following:
        ``(6) Dissemination.--
            ``(A) In general.--A charter school may apply for funds 
        under this part, whether or not the charter school has applied 
        for or received funds under this part for planning, program 
        design, or implementation, to carry out the activities 
        described in subparagraph (B) if the charter school has been in 
        operation for at least 3 consecutive years and has demonstrated 
        overall success, including--
                ``(i) substantial progress in improving student 
            achievement;
                ``(ii) high levels of parent satisfaction; and
                ``(iii) the management and leadership necessary to 
            overcome initial start-up problems and establish a 
            thriving, financially viable charter school.
            ``(B) Activities.--A charter school described in 
        subparagraph (A) may use funds reserved under paragraph (1) to 
        assist other schools in adapting the charter school's program 
        (or certain aspects of the charter school's program), or to 
        disseminate information about the charter school, through such 
        activities as--
                ``(i) assisting other individuals with the planning and 
            start-up of one or more new public schools, including 
            charter schools, that are independent of the assisting 
            charter school and the assisting charter school's 
            developers, and that agree to be held to at least as high a 
            level of accountability as the assisting charter school;
                ``(ii) developing partnerships with other public 
            schools, including charter schools, designed to improve 
            student performance in each of the schools participating in 
            the partnership;
                ``(iii) developing curriculum materials, assessments, 
            and other materials that promote increased student 
            achievement and are based on successful practices within 
            the assisting charter school; and
                ``(iv) conducting evaluations and developing materials 
            that document the successful practices of the assisting 
            charter school and that are designed to improve student 
            performance in other schools.''.
    (f) National Activities.--Section 10305 of such Act (20 U.S.C. 
8065) is amended to read as follows:

``SEC. 10305. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary shall reserve for each fiscal year 
the greater of 5 percent or $5,000,000 of the amount appropriated to 
carry out this part, except that in no fiscal year shall the total 
amount so reserved exceed $8,000,000, to carry out the following 
activities:
        ``(1) To provide charter schools, either directly or through 
    State educational agencies, with--
            ``(A) information regarding--
                ``(i) Federal funds that charter schools are eligible 
            to receive; and
                ``(ii) other Federal programs in which charter schools 
            may participate; and
            ``(B) assistance in applying for Federal education funds 
        that are allocated by formula, including assistance with filing 
        deadlines and submission of applications.
        ``(2) To provide for the completion of the 4-year national 
    study (which began in 1995) of charter schools.
        ``(3) To provide for other evaluations or studies that include 
    the evaluation of the impact of charter schools on student 
    achievement, including information regarding--
            ``(A) students attending charter schools reported on the 
        basis of race, age, disability, gender, limited English 
        proficiency, and previous enrollment in public school; and
            ``(B) the professional qualifications of teachers within a 
        charter school and the turnover of the teaching force.
        ``(4) To provide--
            ``(A) information to applicants for assistance under this 
        part;
            ``(B) assistance to applicants for assistance under this 
        part with the preparation of applications under section 10303;
            ``(C) assistance in the planning and startup of charter 
        schools;
            ``(D) training and technical assistance to existing charter 
        schools; and
            ``(E) for the dissemination to other public schools of best 
        or promising practices in charter schools.
        ``(5) To provide (including through the use of one or more 
    contracts that use a competitive bidding process) for the 
    collection of information regarding the financial resources 
    available to charter schools, including access to private capital, 
    and to widely disseminate to charter schools any such relevant 
    information and model descriptions of successful programs.
    ``(b) Construction.--Nothing in this section shall be construed to 
require charter schools to collect any data described in subsection 
(a).''.
    (g) Commensurate Treatment; Records Transfer; Paperwork 
Reduction.--Part C of title X of such Act (20 U.S.C. 8061 et seq.) is 
amended--
        (1) by redesignating sections 10306 and 10307 as sections 10310 
    and 10311, respectively; and
        (2) by inserting after section 10305 the following:

``SEC. 10306. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND FOR 
              SUCCESSIVE ENROLLMENT EXPANSIONS.

    ``(a) In General.--For purposes of the allocation to schools by the 
States or their agencies of funds under part A of title I, and any 
other Federal funds which the Secretary allocates to States on a 
formula basis, the Secretary and each State educational agency shall 
take such measures not later than 6 months after the date of the 
enactment of the Charter School Expansion Act of 1998 as are necessary 
to ensure that every charter school receives the Federal funding for 
which the charter school is eligible not later than 5 months after the 
charter school first opens, notwithstanding the fact that the identity 
and characteristics of the students enrolling in that charter school 
are not fully and completely determined until that charter school 
actually opens. The measures similarly shall ensure that every charter 
school expanding its enrollment in any subsequent year of operation 
receives the Federal funding for which the charter school is eligible 
not later than 5 months after such expansion.
    ``(b) Adjustment and Late Openings.--
        ``(1) In general.--The measures described in subsection (a) 
    shall include provision for appropriate adjustments, through 
    recovery of funds or reduction of payments for the succeeding year, 
    in cases where payments made to a charter school on the basis of 
    estimated or projected enrollment data exceed the amounts that the 
    school is eligible to receive on the basis of actual or final 
    enrollment data.
        ``(2) Rule.--For charter schools that first open after November 
    1 of any academic year, the State, in accordance with guidance 
    provided by the Secretary and applicable Federal statutes and 
    regulations, shall ensure that such charter schools that are 
    eligible for the funds described in subsection (a) for such 
    academic year have a full and fair opportunity to receive those 
    funds during the charter schools' first year of operation.

``SEC. 10307. SOLICITATION OF INPUT FROM CHARTER SCHOOL OPERATORS.

    ``To the extent practicable, the Secretary shall ensure that 
administrators, teachers, and other individuals directly involved in 
the operation of charter schools are consulted in the development of 
any rules or regulations required to implement this part, as well as in 
the development of any rules or regulations relevant to charter schools 
that are required to implement part A of title I, the Individuals with 
Disabilities Education Act (20 U.S.C. 1400 et seq.), or any other 
program administered by the Secretary that provides education funds to 
charter schools or regulates the activities of charter schools.

``SEC. 10308. RECORDS TRANSFER.

    ``State educational agencies and local educational agencies, to the 
extent practicable, shall ensure that a student's records and, if 
applicable, a student's individualized education program as defined in 
section 602(11) of the Individuals with Disabilities Education Act (20 
U.S.C. 1401(11)), are transferred to a charter school upon the transfer 
of the student to the charter school, and to another public school upon 
the transfer of the student from a charter school to another public 
school, in accordance with applicable State law.

``SEC. 10309. PAPERWORK REDUCTION.

    ``To the extent practicable, the Secretary and each authorized 
public chartering agency shall ensure that implementation of this part 
results in a minimum of paperwork for any eligible applicant or charter 
school.''.
    (h) Part C Definitions.--Section 10310(1) of such Act (as 
redesignated by subsection (e)(1)) (20 U.S.C. 8066(1)) is amended--
        (1) in subparagraph (A), by striking ``an enabling statute'' 
    and inserting ``a specific State statute authorizing the granting 
    of charters to schools'';
        (2) in subparagraph (H), by inserting ``is a school to which 
    parents choose to send their children, and that'' before 
    ``admits'';
        (3) in subparagraph (J), by striking ``and'' after the 
    semicolon;
        (4) in subparagraph (K), by striking the period and inserting 
    ``; and''; and
        (5) by adding at the end the following:
            ``(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.''.
    (i) Authorization of Appropriations.--Section 10311 of such Act (as 
redesignated by subsection (e)(1)) (20 U.S.C. 8067) is amended by 
striking ``$15,000,000 for fiscal year 1995'' and inserting 
``$100,000,000 for fiscal year 1999''.
    (j) Title XIV Definitions.--Section 14101 of such Act (20 U.S.C. 
8801) is amended--
        (1) in paragraph (14), by inserting ``, including a public 
    elementary charter school,'' after ``residential school''; and
        (2) in paragraph (25), by inserting ``, including a public 
    secondary charter school,'' after ``residential school''.
    (k) Conforming Amendment.--The matter preceding paragraph (1) of 
section 10304(e) of such Act (20 U.S.C. 8064(e)) is amended by striking 
``10306(1)'' and inserting ``10310(1)''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.