In the Senate of the United States,
October 8 (legislative day, October 2), 1998.
Resolved, That the bill from the House of Representa-
tives (H.R. 2616) entitled ‘‘An Act to amend title VI and X
of the Elementary and Secondary Education Act of 1965 to
improve and expand charter schools.’’, do pass with the fol-
lowing
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Charter School Expan-
sion 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;
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(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) (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 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.
(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’’ be-
fore ‘‘design’’; and
(B) by striking ‘‘and’’ after the semicolon;
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(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 char-
ter 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—
(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 fol-
lows:
‘‘(d) LIMITATION.—A charter school may not receive—
‘‘(1) more than 1 grant for activities described in
subparagraphs (A) and (B) of subsection (c)(2); or
‘‘(2) more than 1 grant for activities under sub-
paragraph (C) of subsection (c)(2).’’; and
(3) by adding at the end the following:
‘‘(e) PRIORITY TREATMENT.—
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‘‘(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 ex-
cess of $51,000,000 for the fiscal year, the Sec-
retary shall give priority to States to the extent
that the States meet the criteria described in
paragraph (2) and 1 or more of the criteria de-
scribed 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 Sec-
retary shall give priority to States to the extent
that the States meet the criteria described in
paragraph (2) and 1 or more of the criteria de-
scribed in subparagraph (A), (B), or (C) of
paragraph (3).
‘‘(2) REVIEW
AND
EVALUATION
PRIORITY
CRI-
TERIA.—The criteria referred to in paragraph (1) is
that the State provides for periodic review and eval-
uation by the authorized public chartering agency of
each charter school, at least once every 5 years unless
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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 aca-
demic 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 meas-
urable 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 1 authorized public
chartering agency that is not a local edu-
cational agency, such as a State chartering
board, for each individual or entity seeking
to operate a charter school pursuant to such
State law; or
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‘‘(ii) in the case of a State in which
local educational agencies are the only au-
thorized 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 edu-
cational agency, the Secretary shall take into consideration
the number of charter schools that are operating, or are ap-
proved 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 fol-
lowing:
‘‘(2) describe how the State educational agency—
‘‘(A) will inform each charter school in the
State regarding—
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‘‘(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 commensu-
rate 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 edu-
cational agency in the State; and’’; and
(D) in paragraph (3) (as redesignated by
subparagraph (B))—
(i) in subparagraph (E), insert ‘‘plan-
ning, 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
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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 in-
volve charter schools and other public schools,
local educational agencies, developers, and poten-
tial developers; and’’; and
(2) in subsection (c), by striking ‘‘10302(e)(1)
or’’; and
(3) in subsection (d)(1)—
(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;
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(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 dissemina-
tion activities under section 10302(c)(2)(C), the qual-
ity of those activities and the likelihood that those ac-
tivities 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 pro-
poses to use grant funds to support dissemination ac-
tivities 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
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10 percent of the grant funds to support dissemi-
nation 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 per-
cent’’ 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 de-
sign, or implementation, to carry out the activi-
ties described in subparagraph (B) if the charter
school has been in operation for at least 3 con-
secutive years and has demonstrated overall suc-
cess, 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 prob-
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lems and establish a thriving, financially
viable charter school.
‘‘(B) ACTIVITIES.—A charter school de-
scribed in subparagraph (A) may use funds re-
served under paragraph (1) to assist other
schools in adapting the charter school’s program
(or certain aspects of the charter school’s pro-
gram), or to disseminate information about the
charter school, through such activities as—
‘‘(i) assisting other individuals with
the planning and start-up of 1 or more new
public schools, including charter schools,
that are independent of the assisting charter
school and the assisting charter school’s de-
velopers, 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 per-
formance in each of the schools participat-
ing in the partnership;
‘‘(iii) developing curriculum materials,
assessments, and other materials that pro-
mote increased student achievement and are
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based on successful practices within the as-
sisting charter school; and
‘‘(iv) conducting evaluations and devel-
oping materials that document the success-
ful 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,
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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 re-
ported on the basis of race, age, disability, gen-
der, limited English proficiency, and previous
enrollment in public school; and
‘‘(B) the professional qualifications of teach-
ers within a charter school and the turnover of
the teaching force.
‘‘(4) To provide—
‘‘(A) information to applicants for assist-
ance under this part;
‘‘(B) assistance to applicants for assistance
under this part with the preparation of applica-
tions under section 10303;
‘‘(C) assistance in the planning and startup
of charter schools;
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‘‘(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 1
or more contracts that use a competitive bidding
process) for the collection of information regarding the
financial resources available to charter schools, in-
cluding access to private capital, and to widely dis-
seminate to charter schools any such relevant infor-
mation and model descriptions of successful pro-
grams.
‘‘(b) CONSTRUCTION.—Nothing in this section shall be
construed to require charter schools to collect any data de-
scribed in subsection (a).’’.
(g) COMMENSURATE TREATMENT; RECORDS TRANS-
FER; PAPERWORK REDUCTION.—Part C of title X of such
Act (20 U.S.C. 8061 et seq.) is amended—
(1) by redesignating sections 10306 and 10307
as sections 10310 and 10311, respectively; and
(2) by inserting after section 10305 the follow-
ing:
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‘‘SEC. 10306. FEDERAL FORMULA ALLOCATION DURING
FIRST YEAR AND FOR SUCCESSIVE ENROLL-
MENT EXPANSIONS.
‘‘(a) 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 Sec-
retary 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 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 oper-
ation receives the Federal funding for which the charter
school is eligible not later than 5 months after such expan-
sion.
‘‘(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 pay-
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ments made to a charter school on the basis of esti-
mated 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 such aca-
demic year have a full and fair opportunity to receive
those funds during the charter schools’ first year of
operation.
‘‘SEC. 10307. SOLICITATION OF INPUT FROM CHARTER
SCHOOL OPERATORS.
‘‘To the extent practicable, the Secretary shall ensure
that administrators, teachers, and other individuals di-
rectly involved in the operation of charter schools are con-
sulted in the development of any rules or regulations re-
quired 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
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provides education funds to charter schools or regulates the
activities of charter schools.
‘‘SEC. 10308. RECORDS TRANSFER.
‘‘State educational agencies and local educational
agencies, to the extent practicable, shall ensure that a stu-
dent’s records and, if applicable, a student’s individualized
education program as defined in section 602(11) of the In-
dividuals 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 applica-
ble State law.
‘‘SEC. 10309. PAPERWORK REDUCTION.
‘‘To the extent practicable, the Secretary and each au-
thorized public chartering agency shall ensure that imple-
mentation 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 ena-
bling statute’’ and inserting ‘‘a specific State statute
authorizing the granting of charters to schools’’;
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(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 stu-
dent 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 au-
thorized public chartering agency and the char-
ter 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—
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(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)’’.
Attest:
Secretary.
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