IB
Union Calendar No. 185
105TH CONGRESS
1ST SESSION
H. R. 2616
[Report No. 105–321]
To amend titles VI and X of the Elementary and Secondary Education
Act of 1965 to improve and expand charter schools.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 6, 1997
Mr. RIGGS introduced the following bill; which was referred to the Committee
on Education and the Workforce
OCTOBER 14, 1997
Additional sponsor: Mr. ROEMER
OCTOBER 14, 1997
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on October 6, 1997]
A BILL
To amend titles VI and X of the Elementary and Secondary
Education Act of 1965 to improve and expand charter
schools.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Charter Schools Amend-
ments Act of 1997’’.
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)—
(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 fol-
lowing:
‘‘(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)—
(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 fol-
lowing:
‘‘(8) planning, designing, and initial implemen-
tation of charter schools as described in part C of title
X; and’’.
SEC. 3. CHARTER SCHOOLS.
Part C of title X of the Elementary and Secondary
Education Act of 1965 is amended to read as follows:
‘‘PART C—PUBLIC CHARTER SCHOOLS
‘‘SEC. 10301. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) enhancement of parent and student choices
among public schools can assist in promoting com-
prehensive educational reform and give more students
the opportunity to learn to challenging State content
standards and challenging State student performance
standards, if sufficiently diverse and high-quality
choices, and genuine opportunities to take advantage
of such choices, are available to all students;
‘‘(2) useful examples of such choices can come
from States and communities that experiment with
methods of offering teachers and other educators, par-
ents, and other members of the public the opportunity
to design and implement new public schools and to
transform existing public schools;
‘‘(3) charter schools are a mechanism for testing
a variety of educational approaches and should, there-
fore, be exempted from restrictive rules and regula-
tions if the leadership of such schools commits to at-
taining specific and ambitious educational results for
educationally disadvantaged students consistent with
challenging State content standards and challenging
State student performance standards for all students;
‘‘(4) charter schools, as such schools have been
implemented in a few States, can embody the nec-
essary mixture of enhanced choice, exemption from re-
strictive regulations, and a focus on learning gains;
‘‘(5) charter schools, including charter schools
that are schools-within-schools, can help reduce school
size, which can have a significant effect on student
achievement;
‘‘(6) the Federal Government should test, evalu-
ate, and disseminate information on a variety of
charter school models in order to help demonstrate the
benefits of this promising educational reform; and
‘‘(7) there is a strong documented need for cash-
flow assistance to charter schools that are starting up,
because State and local operating revenue streams are
not immediately available.
‘‘(b) PURPOSES.—The purposes of this part are—
‘‘(1) to provide financial assistance for the plan-
ning, design, initial implementation of charter
schools;
‘‘(2) to facilitate the ability of States and local-
ities to increase the number of charter schools in the
Nation to not less than 3,000 by the year 2000; and
‘‘(3) to evaluate the effects of charter schools, in-
cluding the effects on students, student achievement,
staff, and parents.
‘‘SEC. 10302. PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary may award grants
to State educational agencies having applications approved
pursuant to section 10303 to enable such agencies to con-
duct a charter school grant program in accordance with this
part.
‘‘(b) SPECIAL RULE.—If a State educational agency
elects not to participate in the program authorized by this
part or does not have an application approved under sec-
tion 10303, the Secretary may award a grant to an eligible
applicant that serves such State and has an application
approved pursuant to section 10303.
‘‘(c) PROGRAM PERIODS.—
‘‘(1) GRANTS TO STATES.—
‘‘(A) BASIC GRANTS.—Grants awarded to
State educational agencies under this part for
planning, design, or initial implementation of
charter schools, shall be awarded for a period of
not more than 5 years.
‘‘(B) EXTENSION.—Any eligible applicant
that has received a grant or subgrant under this
part prior to October 1, 1997, shall be eligible to
receive an additional grant for a period not to
exceed 2 years in accordance with this section.
‘‘(2) GRANTS TO ELIGIBLE APPLICANTS.—
‘‘(A) BASIC GRANTS.—Grants awarded by
the Secretary to eligible applicants or subgrants
awarded by State educational agencies to eligible
applicants under this part shall be awarded for
planning, design, or initial implementation of
charter schools, for a period not to exceed more
than 5 years, of which the eligible applicant may
use—
‘‘(i) not more than 30 months for plan-
ning and program design; and
‘‘(ii) not more than 4 years for the ini-
tial implementation of a charter school.
‘‘(B) EXTENSION.—Any eligible applicant
that has received a grant or subgrant under this
part prior to October 1, 1997, shall be eligible to
receive an additional grant for a period not to
exceed 2 years in accordance with this section.
‘‘(d) LIMITATION.—Except as otherwise provided
under subsection (c), the Secretary shall not award more
than one grant and State educational agencies shall not
award more than one subgrant under this part to support
a particular charter school.
‘‘(e) PRIORITY AND REQUIREMENTS.—
‘‘(1) PRIORITY.—
‘‘(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 10310 that are in ex-
cess of $51,000,000 for the fiscal year, the Sec-
retary shall give priority to State educational
agencies in accordance with subparagraph (C).
‘‘(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 10310, the Sec-
retary shall consider the number of charter
schools in each State and shall give priority to
State educational agencies in accordance with
subparagraph (C).
‘‘(C) 
PRIORITY
ORDER.—In 
awarding
grants under subparagraphs (A) and (B), the
Secretary shall, in the order listed, give priority
to a State that—
‘‘(i) meets all requirements of para-
graph (2);
‘‘(ii) meets 2 requirements of para-
graph (2); and
‘‘(iii) meets 1 requirement of para-
graph (2).
‘‘(2) REQUIREMENTS.—The requirements re-
ferred to in paragraph (1)(C) are as follows:
‘‘(A) The State law regarding charter
schools ensures that each charter school has a
high degree of autonomy over its budgets and ex-
penditures.
‘‘(B) The State law regarding charter
schools provides that not less than 1 chartering
authority in the State allows for an increase in
the number of charter schools from 1 year to the
next year; and
‘‘(C) The State law regarding charter
schools provides for periodic review and evalua-
tion by the authorized public chartering agency
of each charter school to determine whether the
school is meeting or exceeding the academic per-
formance requirements and goals for charter
schools as set forth under State law or the
school’s charter.
‘‘SEC. 10303. APPLICATIONS.
‘‘(a) APPLICATIONS FROM STATE AGENCIES.—Each
State educational agency desiring a grant from the Sec-
retary under this part shall submit to the Secretary an ap-
plication at such time, in such manner, and containing or
accompanied by such information as the Secretary may re-
quire.
‘‘(b) CONTENTS OF A STATE EDUCATIONAL AGENCY
APPLICATION.—Each application submitted pursuant to
subsection (a) shall—
‘‘(1) describe the objectives of the State edu-
cational agency’s charter school grant program and a
description of how such objectives will be fulfilled, in-
cluding steps taken by the State educational agency
to inform teachers, parents, and communities of the
State educational agency’s charter school grant pro-
gram;
‘‘(2) describe how the State educational agency
will inform each charter school of available Federal
programs and funds that each such school is eligible
to receive and ensure that each such school receives its
appropriate share of Federal education funds allo-
cated by formula; and
‘‘(3) contain assurances that the State edu-
cational agency will require each eligible applicant
desiring to receive a subgrant to submit an applica-
tion to the State educational agency containing—
‘‘(A) a description of the educational pro-
gram to be implemented by the proposed charter
school, including—
‘‘(i) how the program will enable all
students to meet challenging State student
performance standards;
‘‘(ii) the grade levels or ages of children
to be served; and
‘‘(iii) the curriculum and instructional
practices to be used;
‘‘(B) a description of how the charter school
will be managed;
‘‘(C) a description of—
‘‘(i) the objectives of the charter school;
and
‘‘(ii) the methods by which the charter
school will determine its progress toward
achieving those objectives;
‘‘(D) a description of the administrative re-
lationship between the charter school and the au-
thorized public chartering agency;
‘‘(E) a description of how parents and other
members of the community will be involved in
the design and implementation of the charter
school;
‘‘(F) a description of how the authorized
public chartering agency will provide for contin-
ued operation of the school once the Federal
grant has expired, if such agency determines that
the school has met the objectives described in sub-
paragraph (C)(i);
‘‘(G) a request and justification for waivers
of any Federal statutory or regulatory provisions
that the applicant believes are necessary for the
successful operation of the charter school, and a
description of any State or local rules, generally
applicable to public schools, that will be waived
for, or otherwise not apply to, the school;
‘‘(H) a description of how the subgrant
funds or grant funds, as appropriate, will be
used, including a description of how such funds
will be used in conjunction with other Federal
programs administered by the Secretary;
‘‘(I) a description of how students in the
community will be—
‘‘(i) informed about the charter school;
and
‘‘(ii) given an equal opportunity to at-
tend the charter school;
‘‘(d) CONTENTS OF APPLICATION.—Each application
submitted pursuant to subsection (c) shall contain—
‘‘(1) the information and assurances described in
subparagraphs (A) through (L) of subsection (b)(3),
except that for purposes of this subsection subpara-
graphs (J), (K), and (L) of such subsection shall be
applied by striking ‘and the State educational agen-
cy’ each place such term appears; and
‘‘(2) assurances that the State educational agen-
cy—
‘‘(A) will grant, or will obtain, waivers of
State statutory or regulatory requirements; and
‘‘(B) will assist each subgrantee in the State
in receiving a waiver under section 10304(e).
‘‘SEC. 10304. ADMINISTRATION.
‘‘(a) SELECTION CRITERIA FOR STATE EDUCATIONAL
AGENCIES.—The Secretary shall award grants to State edu-
cational agencies under this part on the basis of the quality
of the applications submitted under section 10303(b), after
taking into consideration such factors as—
‘‘(1) the contribution that the charter schools
grant program will make to assisting educationally
disadvantaged and other students to achieving State
content standards and State student performance
standards and, in general, a State’s education im-
provement plan;
‘‘(2) the degree of flexibility afforded by the State
educational agency to charter schools under the
State’s charter schools law;
‘‘(3) the ambitiousness of the objectives for the
State charter school grant program;
‘‘(4) the quality of the strategy for assessing
achievement of those objectives;
‘‘(5) the likelihood that the charter school grant
program will meet those objectives and improve edu-
cational results for students; and
‘‘(6) the number of charter schools created under
this part in the State.
‘‘(b) SELECTION CRITERIA
FOR ELIGIBLE APPLI-
CANTS.—The Secretary shall award grants to eligible appli-
cants under this part on the basis of the quality of the ap-
plications submitted under section 10303(c), after taking
into consideration such factors as—
(1) the quality of the proposed curriculum and
instructional practices;
‘‘(2) the degree of flexibility afforded by the State
educational agency and, if applicable, the local edu-
cational agency to the charter school;
‘‘(3) the extent of community support for the ap-
plication;
‘‘(4) the ambitiousness of the objectives for the
charter school;
‘‘(5) the quality of the strategy for assessing
achievement of those objectives; and
‘‘(6) the likelihood that the charter school will
meet those objectives and improve educational results
for students.
‘‘(c) PEER REVIEW.—The Secretary, and each State
educational agency receiving a grant under this part, shall
use a peer review process to review applications for assist-
ance under this part.
‘‘(d) DIVERSITY OF PROJECTS.—The Secretary and
each State educational agency receiving a grant under this
part, shall award subgrants under this part in a manner
that, to the extent possible, ensures that such grants and
subgrants—
‘‘(1) are distributed throughout different areas of
the Nation and each State, including urban and rural
areas; and
‘‘(2) will assist charter schools representing a va-
riety of educational approaches, such as approaches
designed to reduce school size.
‘‘(e) WAIVERS.—The Secretary may waive any statu-
tory or regulatory requirement over which the Secretary ex-
ercises administrative authority except any such require-
ment relating to the elements of a charter school described
in section 10309(1), if—
‘‘(1) the waiver is requested in an approved ap-
plication under this part; and
‘‘(2) the Secretary determines that granting such
a waiver will promote the purpose of this part.
‘‘(f) USE OF FUNDS.—
‘‘(1) STATE
EDUCATIONAL
AGENCIES.—Each
State educational agency receiving a grant under this
part shall use such grant funds to award subgrants
to one or more eligible applicants in the State to en-
able such applicant to plan and implement a charter
school in accordance with this part.
‘‘(2) ELIGIBLE APPLICANTS.—Each eligible ap-
plicant receiving funds from the Secretary or a State
educational agency shall use such funds to plan and
implement a charter school in accordance with this
part.
‘‘(3) 
ALLOWABLE
ACTIVITIES
FOR
BASIC
GRANTS.—An eligible applicant receiving a basic
grant or subgrant under section 10302(c)(2) may use
the grant or subgrant funds only for—
‘‘(A) post-award planning and design of the
educational program, which may include—
‘‘(i) refinement of the desired edu-
cational results and of the methods for
measuring progress toward achieving those
results; and
‘‘(ii) professional development of teach-
ers and other staff who will work in the
charter school; and
‘‘(B) initial implementation of the charter
school, which may include—
‘‘(i) informing the community about
the school;
‘‘(ii) acquiring necessary equipment
and educational materials and supplies;
‘‘(iii) acquiring or developing curricu-
lum materials; and
‘‘(iv) other initial operational costs
that cannot be met from State or local
sources.
‘‘(4) ADMINISTRATIVE
EXPENSES.—Each State
educational agency receiving a grant pursuant to this
part may reserve not more than 5 percent of such
grant funds for administrative expenses associated
with the charter school grant program assisted under
this part.
‘‘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,
giving highest priority to carrying paragraph (2), the fol-
lowing:
‘‘(1) To provide charter schools, either directly or
through the State educational agency, with informa-
tion regarding available education funds that such
school is eligible to receive, and assistance in apply-
ing for Federal education funds which are allocated
by formula, including filing deadlines and submission
of applications; and
‘‘(2) To provide, through 1 or more contracts
using a competitive bidding process—
‘‘(A) charter schools with assistance in
accessing private capital;
‘‘(B) pilot projects in a variety of States to
better understand and improve access to private
capital by charter schools; and
‘‘(C) collection on a nationwide basis, of in-
formation regarding successful programs that ac-
cess private capital for charter schools and dis-
seminate any such relevant information and
model descriptions to all charter schools.
‘‘(3) To provide for the completion of the 4-year
national study (which began in 1995) of charter
schools and any related evaluations or studies.
‘‘(4)(A) To provide 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) ongoing training and technical assistance
to existing charter schools; and
‘‘(E) for the dissemination of best practices in
charter schools to other public schools.
‘‘SEC. 10306. PART A, TITLE I 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, or of any
other Federal educational assistance funds, the Secretary
and each State educational agency shall take such measures
not later than 6 months after the date of the enactment of
this part as are necessary to ensure that every charter school