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Stat. 1321–137; D.C. Code § 31–2853.41(b)(3)(B)) is
amended—
(1) in clause (i), by striking ‘‘or’’;
(2) in clause (ii), by striking the period at the
end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(iii) to whom the school provides
room and board in a residential setting.’’.
SEC. 308. ADJUSTMENT OF ANNUAL PAYMENT FOR FACILI-
TIES COSTS.
Section 2401(b)(3) of the District of Columbia School
Reform Act of 1995 (Public Law 104–134; 110 Stat.
1321–137; D.C. Code § 31–2853.41(b)(3)) is amended by
adding at the end the following:
‘‘(C) 
ADJUSTMENT
FOR
FACILITIES
COSTS.—Notwithstanding paragraph (2), the
Mayor and the District of Columbia Council, in
consultation with the Board of Education and
the Superintendent, shall adjust the amount of
the annual payment under paragraph (1) to in-
crease the amount of such payment for a public
charter school to take into account leases or
purchases of, or improvements to, real property,
if the school, not later than April 1 of the fiscal
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year preceding the payment, requests such an
adjustment.’’.
SEC. 309. PAYMENTS TO NEW CHARTER SCHOOLS.
(a) IN GENERAL.—Section 2403(b) of the District of
Columbia School Reform Act of 1995 (Public Law 104–
134; 110 Stat. 1321–140; D.C. Code § 31–2853.43(b)) is
amended to read as follows:
‘‘(b) PAYMENTS TO NEW SCHOOLS.—
‘‘(1) ESTABLISHMENT OF FUND.—There is es-
tablished in the general fund of the District of Co-
lumbia a fund to be known as the ‘New Charter
School Fund’.
‘‘(2) CONTENTS OF FUND.—The New Charter
School Fund shall consist of—
‘‘(A) unexpended and unobligated amounts
appropriated from local funds for public charter
schools for fiscal year 1997 that reverted to the
general fund of the District of Columbia;
‘‘(B) amounts credited to the fund in ac-
cordance with this subsection upon the receipt
by a public charter school described in para-
graph (5) of its first initial payment under sub-
section (a)(2)(A) or its first final payment
under subsection (a)(2)(B); and
‘‘(C) any interest earned on such amounts.
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‘‘(3) EXPENDITURES FROM FUND.—
‘‘(A) IN GENERAL.—Not later than June
1, 1998, and not later than June 1 of each year
thereafter, the Chief Financial Officer of the
District of Columbia shall pay, from the New
Charter School Fund, to each public charter
school described in paragraph (5), an amount
equal to 25 percent of the amount yielded by
multiplying the uniform dollar amount used in
the formula established under section 2401(b)
by the total anticipated enrollment as set forth
in the petition to establish the public charter
school.
‘‘(B) PRO
RATA
REDUCTION.—If the
amounts in the New Charter School Fund for
any year are insufficient to pay the full amount
that each public charter school described in
paragraph (5) is eligible to receive under this
subsection for such year, the Chief Financial
Officer of the District of Columbia shall ratably
reduce such amounts for such year on the basis
of the formula described in section 2401(b).
‘‘(C) 
FORM
OF
PAYMENT.—Payments
under this subsection shall be made by elec-
tronic funds transfer from the New Charter
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School Fund to a bank designated by a public
charter school.
‘‘(4) CREDITS TO FUND.—Upon the receipt by
a public charter school described in paragraph (5)
of—
‘‘(A) its first initial payment under sub-
section (a)(2)(A), the Chief Financial Officer of
the District of Columbia shall credit the New
Charter School Fund with 75 percent of the
amount paid to the school under paragraph (3);
and
‘‘(B) its first final payment under sub-
section (a)(2)(B), the Chief Financial Officer of
the District of Columbia shall credit the New
Charter School Fund with 25 percent of the
amount paid to the school under paragraph (3).
‘‘(5) SCHOOLS DESCRIBED.—A public charter
school described in this paragraph is a public char-
ter school that—
‘‘(A) did not enroll any students during
any portion of the fiscal year preceding the
most recent fiscal year for which funds are ap-
propriated to carry out this subsection; and
‘‘(B) operated as a public charter school
during the most recent fiscal year for which
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funds are appropriated to carry out this sub-
section.
‘‘(6) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the Chief
Financial Officer of the District of Columbia such
sums as may be necessary to carry out this sub-
section for each fiscal year.’’.
(b) REDUCTION OF ANNUAL PAYMENT.—
(1) INITIAL PAYMENT.—Section 2403(a)(2)(A)
of the District of Columbia School Reform Act (Pub-
lic Law 104–134; 110 Stat. 1321–139; D.C. Code
§ 31–2853.43(a)(2)(A)) is amended to read as fol-
lows:
‘‘(A) INITIAL PAYMENT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), not later than October
15, 1996, and not later than October 15 of
each year thereafter, the Mayor shall
transfer, by electronic funds transfer, an
amount equal to 75 percent of the amount
of the annual payment for each public
charter school determined by using the for-
mula established pursuant to section
2401(b) to a bank designated by such
school.
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‘‘(ii) REDUCTION
IN
CASE
OF
NEW
SCHOOL.—In the case of a public charter
school that has received a payment under
subsection (b) in the fiscal year imme-
diately preceding the fiscal year in which a
transfer under clause (i) is made, the
amount transferred to the school under
clause (i) shall be reduced by an amount
equal to 75 percent of the amount of the
payment under subsection (b).’’.
(2) FINAL
PAYMENT.—Section 2403(a)(2)(B)
of the District of Columbia School Reform Act (Pub-
lic Law 104–134; 110 Stat. 1321–139; D.C. Code
§ 31–2853.43(a)(2)(B)) is amended—
(A) in clause (i)—
(i) by inserting ‘‘IN GENERAL.—’’ be-
fore ‘‘Except’’; and
(ii) by striking ‘‘clause (ii),’’ and in-
serting ‘‘clauses (ii) and (iii),’’;
(B) in clause (ii), by inserting ‘‘ADJUST-
MENT FOR ENROLLMENT.—’’ before ‘‘Not later
than March 15, 1997,’’; and
(C) by adding at the end the following:
‘‘(iii) REDUCTION
IN
CASE
OF
NEW
SCHOOL.—In the case of a public charter