[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1380 Reported in Senate (RS)]





                                                       Calendar No. 540

105th CONGRESS

  2d Session

                                S. 1380

                          [Report No. 105-301]

_______________________________________________________________________

                                 A BILL

 To amend the Elementary and Secondary Education Act of 1965 regarding 
                            charter schools.

_______________________________________________________________________

             September 8 (legislative day, August 31), 1998

                       Reported with an amendment





                                                       Calendar No. 540
105th CONGRESS
  2d Session
                                S. 1380

                          [Report No. 105-301]

 To amend the Elementary and Secondary Education Act of 1965 regarding 
                            charter schools.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 5, 1997

Mr. Coats (for himself, Mr. Lieberman, Mr. D'Amato, Mr. Kerrey, and Ms. 
   Landrieu) introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

             September 8 (legislative day, August 31), 1998

               Reported by Mr. Jeffords with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To amend the Elementary and Secondary Education Act of 1965 regarding 
                            charter schools.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Charter School Expansion 
Act of 1997''.</DELETED>

<DELETED>SEC. 2. INNOVATIVE CHARTER SCHOOLS.</DELETED>

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

<DELETED>SEC. 3. CHARTER SCHOOLS.</DELETED>

<DELETED>    (a) Purpose.--Section 10301(b) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8061(b)) is amended--
</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``and'' after 
        the semicolon;</DELETED>
        <DELETED>    (2) in paragraph (2), by striking the period and 
        inserting ``; and''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
        <DELETED>    ``(3) expanding the number of high-quality charter 
        schools available to students across the Nation.''.</DELETED>
<DELETED>    (b) Criteria for Priority Treatment.--Section 10302 of 
such Act of 1965 (20 U.S.C. 8062) is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(e) Priority Treatment.--</DELETED>
        <DELETED>    ``(1) In general.--</DELETED>
                <DELETED>    ``(A) Fiscal years 1998, 1999, and 2000.--
                In awarding grants under this part for any of the 
                fiscal years 1998, 1999, and 2000 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 1 or more of the criteria described in paragraph 
                (2).</DELETED>
                <DELETED>    ``(B) Succeeding fiscal years.--In 
                awarding grants under this part for fiscal year 2001 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 1 or more 
                of the criteria described in paragraph (2).</DELETED>
        <DELETED>    ``(2) Priority criteria.--The criteria referred to 
        in paragraph (1) are as follows:</DELETED>
                <DELETED>    ``(A) The State has demonstrated 
                significant progress in increasing the number of 
                charter schools in the period prior to the period for 
                which a State educational agency or eligible applicant 
                applies for a grant under this part.</DELETED>
                <DELETED>    ``(B) The State law regarding charter 
                schools--</DELETED>
                        <DELETED>    ``(i) provides for at least 1 
                        authorized public chartering agency that is not 
                        a local educational agency for each individual 
                        or entity seeking to operate a charter school 
                        pursuant to such State law; or</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) The State law regarding charter 
                schools provides for the automatic waiver of most State 
                and local education laws and regulations, except those 
                laws and regulations related to health, safety, and 
                civil rights.</DELETED>
                <DELETED>    ``(D) The State law regarding charter 
                schools provides for periodic review and evaluation by 
                the authorized public chartering agency of each charter 
                school to determine whether the charter school is 
                meeting or exceeding the academic performance 
                requirements and goals for charter schools as set forth 
                under State law or the school's charter.</DELETED>
<DELETED>    ``(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 will be created under this part in the State.''.</DELETED>
<DELETED>    (c) Applications.--Section 10303(b) of such Act (20 U.S.C. 
8063(b)) is amended--</DELETED>
        <DELETED>    (1) by redesignating paragraph (2) as paragraph 
        (3); and</DELETED>
        <DELETED>    (2) by inserting after paragraph (1) the 
        following:</DELETED>
        <DELETED>    ``(2) describe how the State educational agency--
        </DELETED>
                <DELETED>    ``(A) will inform each charter school in 
                the State regarding--</DELETED>
                        <DELETED>    ``(i) Federal funds that the 
                        charter school is eligible to receive; 
                        and</DELETED>
                        <DELETED>    ``(ii) Federal programs in which 
                        the charter school may participate;</DELETED>
                <DELETED>    ``(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; and</DELETED>
                <DELETED>    ``(C) will disseminate best or promising 
                practices of charter schools to each local educational 
                agency in the State; and''.</DELETED>
<DELETED>    (d) National Activities.--Section 10305 of such Act (20 
U.S.C. 8065) is amended to read as follows:</DELETED>

<DELETED>``SEC. 10305. NATIONAL ACTIVITIES.</DELETED>

<DELETED>    ``The Secretary shall reserve for each fiscal year the 
lesser of 5 percent of the amount appropriated to carry out this part 
for the fiscal year or $5,000,000, to carry out the following 
activities:</DELETED>
        <DELETED>    ``(1) To provide charter schools, either directly 
        or through State educational agencies, with--</DELETED>
                <DELETED>    ``(A) information regarding--</DELETED>
                        <DELETED>    ``(i) Federal funds that charter 
                        schools are eligible to receive; and</DELETED>
                        <DELETED>    ``(ii) other Federal programs in 
                        which charter schools may participate; 
                        and</DELETED>
                <DELETED>    ``(B) assistance in applying for Federal 
                education funds that are allocated by formula, 
                including assistance with filing deadlines and 
                submission of applications.</DELETED>
        <DELETED>    ``(2) To provide for the completion of the 4-year 
        national study (which began in 1995) of charter 
        schools.</DELETED>
        <DELETED>    ``(3) To provide--</DELETED>
                <DELETED>    ``(A) information to applicants for 
                assistance under this part;</DELETED>
                <DELETED>    ``(B) assistance to applicants for 
                assistance under this part with the preparation of 
                applications under section 10303;</DELETED>
                <DELETED>    ``(C) assistance in the planning and 
                startup of charter schools;</DELETED>
                <DELETED>    ``(D) training and technical assistance to 
                existing charter schools;</DELETED>
                <DELETED>    ``(E) information to applicants and 
                charter schools regarding gaining access to private 
                capital to support charter schools; and</DELETED>
                <DELETED>    ``(F) for the dissemination of best or 
                promising practices in charter schools to other public 
                schools.''.</DELETED>
<DELETED>    (e) Commensurate Treatment; Records Transfer; Paperwork 
Reduction.--Part C of title X of such Act (20 U.S.C. 8061 et seq.) is 
amended--</DELETED>
        <DELETED>    (1) by redesignating sections 10306 and 10307 as 
        sections 10310 and 10311, respectively; and</DELETED>
        <DELETED>    (2) by inserting after section 10305 the 
        following:</DELETED>

<DELETED>``SEC. 10306. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND 
              FOR SUCCESSIVE ENROLLMENT EXPANSIONS.</DELETED>

<DELETED>    ``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 enactment of the 
Charter School Expansion Act of 1997 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.</DELETED>

<DELETED>``SEC. 10307. SOLICITATION OF INPUT FROM CHARTER SCHOOL 
              OPERATORS.</DELETED>

<DELETED>    ``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 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), 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.</DELETED>

<DELETED>``SEC. 10308. RECORDS TRANSFER.</DELETED>

<DELETED>    ``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, 
in accordance with applicable State law.</DELETED>

<DELETED>``SEC. 10309. PAPERWORK REDUCTION.</DELETED>

<DELETED>    ``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.''.</DELETED>
<DELETED>    (f) Part C Definitions.--Section 10310(1) of such Act (as 
redesignated by subsection (e)(1)) (20 U.S.C. 8066(1)) is amended--
</DELETED>
        <DELETED>    (1) in subparagraph (A), by striking ``an enabling 
        statute'' and inserting ``a specific State statute authorizing 
        the granting of charters to schools'';</DELETED>
        <DELETED>    (2) in subparagraph (H), by inserting ``is a 
        school to which parents choose to send their children, and 
        that'' before ``admits'';</DELETED>
        <DELETED>    (3) in subparagraph (J), by striking ``and'' after 
        the semicolon;</DELETED>
        <DELETED>    (4) in subparagraph (K), by striking the period 
        and inserting ``; and''; and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
                <DELETED>    ``(L) has a written performance contract 
                with the authorized public chartering agency in the 
                State.''.</DELETED>
<DELETED>    (g) 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 1998''.</DELETED>
<DELETED>    (h) Title XIV Definitions.--Section 14101 of such Act (20 
U.S.C. 8801) is amended--</DELETED>
        <DELETED>    (1) in paragraph (14), by inserting ``, including 
        a public elementary charter school,'' after ``residential 
        school''; and</DELETED>
        <DELETED>    (2) in paragraph (25), by inserting ``, including 
        a public secondary charter school,'' after ``residential 
        school''.</DELETED>
<DELETED>    (i) 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)''.</DELETED>

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), 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 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 1 or more 
                of the criteria described in paragraph (2).
                    ``(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 1 or more of the 
                criteria described in paragraph (2).
            ``(2) Priority criteria.--The criteria referred to in 
        paragraph (1) are as follows:
                    ``(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 1 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 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.
                    ``(D)(i) In the case of a charter school for which 
                the authorized public chartering agency is a State 
                entity, the State requires the school to participate in 
                State assessments, and makes the results available to 
                the public as required by State law or regulation.
                    ``(ii) In the case of a charter school for which 
                the authorized public chartering agency is a local 
                educational agency, the State requires the school to 
                participate in the local assessments required of other 
                public schools in the school district served by the 
                local educational agency, and makes the results 
available to the public as required by local law or regulation that is 
applicable to all public schools in the school district.
    ``(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 will 
be created under this part in the State.''.
    (c) Applications.--Section 10303(b) of such Act (20 U.S.C. 8063(b)) 
is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) 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''.
    (d) National Activities.--Section 10305 of such Act (20 U.S.C. 
8065) is amended to read as follows:

``SEC. 10305. NATIONAL ACTIVITIES.

    ``The Secretary shall reserve for each fiscal year the lesser of 5 
percent of the amount appropriated to carry out this part for the 
fiscal year or $5,000,000, 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, and to provide 
        for related studies with respect to enhancing parent and 
        student educational choices, strengthening accountability and 
        autonomy for schools, ensuring access to charter schools, and 
        increasing student achievement.
            ``(3) 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;
                    ``(E) information to applicants and charter schools 
                regarding financial resources available to charter 
                schools, including access to private capital; and
                    ``(F) for the dissemination of best or promising 
                practices in charter schools to other public 
                schools.''.
    (e) 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.

    ``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 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. The measures 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 which the school is eligible to 
receive on the basis of actual or final enrollment data.

``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 a traditional public 
school upon the transfer of the student from a charter school to a 
traditional 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.''.
    (f) 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 performance objectives for student achievement 
                and how the objectives will be measured by State 
                assessments, or in the case of a charter school for 
                which the authorized public chartering agency is a 
                local educational agency, by the local assessments 
                required of other public schools in the school district 
                served by the local educational agency.''.
    (g) 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''.
    (h) 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''.
    (i) 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)''.