[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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