[105th Congress Public Law 278]
[From the U.S. Government Printing Office]


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[DOCID: f:publ278.105]


[[Page 2681]]

                  CHARTER SCHOOL EXPANSION ACT OF 1998

[[Page 112 STAT. 2682]]

Public Law 105-278
105th Congress

                                 An Act


 
To amend title VI and X of the Elementary and Secondary Education Act of 
      1965 to improve and expand charter schools. <<NOTE: Oct. 22, 
                         1998 -  [H.R. 2616]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Charter School 
Expansion Act of 1998. Grants.>> 

SECTION 1. SHORT TITLE. <<NOTE: 20 USC 6301 note.>> 

    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--

[[Page 112 STAT. 2683]]

            (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

[[Page 112 STAT. 2684]]

                          ``(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)--

[[Page 112 STAT. 2685]]

                    (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

[[Page 112 STAT. 2686]]

                (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;

[[Page 112 STAT. 2687]]

                    ``(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 <<NOTE: 20 USC 8066, 8067.>> sections 
        10306 and 10307 as sections 10310 and 10311, respectively; and
            (2) by inserting after section 10305 the following:

``SEC. 10306. <<NOTE: 20 USC 8065a.>> FEDERAL FORMULA ALLOCATION DURING 
            FIRST YEAR AND FOR SUCCESSIVE ENROLLMENT EXPANSIONS.

    ``(a) <<NOTE: Deadline.>> 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

[[Page 112 STAT. 2688]]

        such academic year have a full and fair opportunity to receive 
        those funds during the charter schools' first year of operation.

``SEC. 10307. SOLICITATION <<NOTE: 20 USC 8065b.>> 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. <<NOTE: 20 USC 8065c.>> 

    ``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. <<NOTE: 20 USC 8065d.>> 

    ``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--

[[Page 112 STAT. 2689]]

            (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)''.

    Approved October 22, 1998.

LEGISLATIVE HISTORY--H.R. 2616 (S. 1380):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 105-321 (Comm. on Education and the Workforce).
SENATE REPORTS: No. 105-301 accompanying S. 1380 (Comm. on Labor and 
Human Resources).
CONGRESSIONAL RECORD:
                                                        Vol. 143 (1997):
                                    Nov. 4, 7, considered and passed 
                                        House.
                                                        Vol. 144 (1998):
                                    Oct. 8, considered and passed 
                                        Senate, amended.
                                    Oct. 9, 10, House concurred in 
                                        Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
            Oct. 22, Presidential statement.

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