(1) the ability of the United States to deliver
more effective educational services to citizens, espe-
cially disadvantaged citizens, is of primary impor-
tance to the national and economic security of the
United States;
(2) fundamental reform is needed in our
Nation’s educational system in order to release the
creative energies of teachers, students, parents, and
communities;
(3) market forces of competition and choice can
have a positive influence in promoting fundamental
reform; however, choice is incomplete without the
availability of more educational choices for all stu-
dents, including disadvantaged students and histori-
cally underserved students;
(4) the exclusive franchise that local educational
agencies have traditionally had on the creation of
new public schools has served to limit the number
and variety of school choices available to parents and
students; and
(5) public education should be defined by out-
comes and requirements that protect and promote
the public interest, not solely by the ownership or
control of facilities and programs by a local edu-
cational agency or other public agency.
SEC. 3. PURPOSE.
It is the purpose of this Act to—
(1) encourage States to offer teachers, parents,
and local communities the opportunity to establish
new and more effective public schools;
(2) provide Federal assistance and flexibility to
encourage States to assist teachers, parents, and
communities to develop such schools; and
(3) provide criteria for States, teachers, par-
ents, and communities to use in establishing new
and more effective public schools.
SEC. 4. DEFINITIONS.
For the purpose of this Act—
(1) the term ‘‘eligible partnership’’ means a
partnership between—
(A) a sponsor; and
(B) a charter public school;
(2) the term ‘‘local educational agency’’ has the
meaning given such term by section 1471(12) of the
Elementary and Secondary Education Act of 1965;
(3) the term ‘‘charter public school’’ means a
school that—
(A) is nonsectarian in its programs, admis-
sion policies, employment practices, and all
other operations and is not affiliated with a
nonpublic sectarian school or religious institu-
tion;
(B) has a primary focus of providing a
comprehensive program of instruction for at
least one grade from kindergarten to twelfth
grade or one age group from 5 to 18 years of
age;
(C) does not charge tuition;
(D) complies with title VI of the Civil
Rights Act of 1964, title IX of the Education
Amendments of 1972, section 504 of the Reha-
bilitation Act of 1973, and the procedural safe-
guards under the Individuals With Disabilities
Education Act;
(E) in the event that more students apply
for admission than may be accommodated, ad-
mits students on the basis of a lottery;
(F) is subject to the same Federal and
State financial audits and audit procedures and
requirements as any other school located in the
State in which such school is located;
(G) meets all State and local health and
safety requirements; and
(H) participates in an eligible partnership;
(4) the term ‘‘Secretary’’ means the Secretary
of Education;
(5) the term ‘‘sponsor’’ means a—
(A) school board;
(B) local educational agency; or
(C) State educational agency;
(6) the term ‘‘State educational agency’’ has
the meaning given such term by section 1471(23) of
the Elementary and Secondary Education Act of
1965.
SEC. 5. PROGRAM AUTHORITY.
(a) PROGRAM AUTHORIZED.—
(1) IN GENERAL.—The Secretary is authorized
to award grants to State educational agencies having
applications approved pursuant to section 6 to en-
able such agencies to conduct a charter public school
program in accordance with this Act.
(2) SPECIAL RULE.—If a State elects not to
participate in the program assisted under this Act,
the Secretary is authorized to award a grant to a
charter public school that serves such State and has
an application approved pursuant to section 6, as
permitted by applicable State laws and regulations
in the State in which the school shall operate.
(b) USE OF GRANTS.—
(1) STATE.—Each State educational agency re-
ceiving a grant under this Act shall use such grant
funds to award grants to one or more charter public
schools in the State to enable such schools to plan
and implement a charter public school in accordance
with this Act.
(2) CHARTER PUBLIC SCHOOL.—Each charter
public school receiving a grant from the Secretary
pursuant to subsection (a)(2) shall use such grant
funds to plan and implement a charter public school
in accordance with this Act.
(3) ADMINISTRATIVE EXPENSES.—Each State
educational agency receiving a grant pursuant to
subsection (a)(1) may reserve not more than 5 per-
cent of such grant funds for administrative expenses
associated with the program assisted under this Act.
(c) DURATION.—A charter public school shall receive
a grant under this Act for a period of not more than 3
years.
(d) MATCHING REQUIREMENT.—In order for a char-
ter public school to receive a grant pursuant to subsection
(a), such school shall provide matching funds in the
amount of—
(1) 10 percent of the grant payment received in
the first year such school receives a grant under this
Act; and
(2) 25 percent of the grant payment received in
the second and third such years.
(e) GEOGRAPHIC DISPERSION.—The Secretary shall
ensure that grants awarded pursuant to subsection (a)
benefit students in urban and rural areas.
(f) CONSTRUCTION, RENOVATION, AND REPAIR.—
(1) PROHIBITION.—Grant funds awarded under
this Act shall not be used for the construction or
major renovation or repair of facilities.
(2) START-UP
COSTS.—Grant funds awarded
under this Act may be used for planning, equipment
purchases, and other start-up costs, including minor
renovation of facilities necessary to meet applicable
State and local health and safety requirements.
SEC. 6. APPLICATION.
(a) STATE APPLICATION.—
(1) IN
GENERAL.—Each State educational
agency desiring a grant under this Act shall submit
to the Secretary an application at such time, in such
manner, and containing or accompanied by such in-
formation as the Secretary may reasonably require.
(2) CONTENTS.—Each application submitted
pursuant to paragraph (1) shall—
(A) describe the objectives of the State
educational agency’s charter public school pro-
gram and a description of how such objectives
shall be fulfilled, including steps taken by the
State educational agency to inform teachers,
parents, and communities of the State edu-
cational agency’s charter public school program
and the availability of grants for the establish-
ment of such schools;
(B) contain assurances that the State edu-
cational agency shall obtain a waiver of all
State and Federal statutes and regulations ap-
plicable to a school board, local educational
agency or school district that are relevant to
and hindering the establishment of a charter
public school in such State;
(C) provide a written description of out-
comes and other requirements to be included in
each eligible partnership agreement between a
sponsor and a charter public school;
(D) provide a description of how charter
public schools within the State shall be required
to meet the definition of a charter public school
as described in section 4(3);
(E) contain specific outcomes to be
achieved by the students attending a charter
public school in accordance with the outcomes
agreement described in section 7;
(F) provide an explanation of how progress
in meeting the outcomes described in section 7
shall be measured; and
(G) contain a description of how teachers,
parents, and community members have been, or
shall be, involved in the planning, development
and implementation of each charter public
school.
(b) ELIGIBLE PARTNERSHIP APPLICATION.—
(1) IN GENERAL.—Each charter public school
desiring a grant pursuant to section 5(a)(2) shall
submit an application to the Secretary at such time,
in such manner, and accompanied by such informa-
tion as the Secretary may reasonably require.
(2) CONTENTS.—Each application submitted
pursuant to paragraph (1) shall contain the same in-
formation and assurances as the information and as-
surances described in subparagraphs (B) through
(G) of subsection (a)(2).
SEC. 7. OUTCOMES AGREEMENT.
(a) AGREEMENT.—In order to receive a grant under
this Act a charter public school shall enter into an out-
comes agreement with the sponsor participating in the eli-
gible partnership.
(b) CONTENTS.—Each agreement referred to in sub-
section (a) shall—
(1) be in the form of a written contract between
the sponsor and the board of directors of the charter
public school participating in the eligible partner-
ship;
(2) set forth outcomes that such school shall
achieve; and
(3) include information and assurances de-
scribed in subparagraphs (B) through (G) of section
6(a)(2).
SEC. 8. CONTINUATION OF FUNDING.
Each charter public school receiving a grant under
this Act shall be eligible to receive Federal, State, and
local education revenue, grants and other aids as though
such school were a local educational agency.
SEC. 9. TERMINATION.
The Secretary or a State educational agency receiving
a grant under this part shall terminate grant payments
under this Act if the Secretary or such State educational
agency, at any time, determines that the charter public
school is not making acceptable progress toward meeting
the outcomes described in section 7.
SEC. 10. REPORTS.
(a) STATE REPORT.—
(1) REPORTS.—Each charter public school re-
ceiving a grant pursuant to section 5(a)(1) shall re-
port at least annually to the State educational agen-
cy or other agency designated by the Governor on
such school’s progress in meeting the outcomes de-
scribed in section 7.
(2) REPORT TO THE SECRETARY.—Each State
educational agency receiving a report under sub-
section (a) shall annually report to the Secretary on
the program assisted under this Act.
(b) SCHOOL REPORTS.—Each charter public school
receiving a grant pursuant to section 5(a)(2) shall at least
annually report to the Secretary the charter public school’s
progress in meeting the outcomes described in section 7.
SEC. 11. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $50,000,000
for fiscal year 1994, $75,000,000 for fiscal year 1995, and
such sums as may be necessary for the 3 succeeding fiscal
years to carry out the provisions of this Act.
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