H. R. 2616—2
(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 subpara-
graphs (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 subpara-
graph (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 para-
graph (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 cri-
teria 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 deter-
mine 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 para-
graph (1) are the following:
‘‘(A) The State has demonstrated progress, in increas-
ing 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
H. R. 2616—3
‘‘(ii) in the case of a State in which local edu-
cational 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 semi-
colon;
(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 regard-
ing—
‘‘(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 subpara-
graph (N); and
(iv) by inserting after subparagraph (K) the follow-
ing:
‘‘(L) a description of how a charter school that is consid-
ered 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 poten-
tial developers; and’’; and
(2) in subsection (c), by striking ‘‘10302(e)(1) or’’; and
(3) in subsection (d)(1)—
H. R. 2616—4
(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 semi-
colon;
(B) in paragraph (5), by striking the period and insert-
ing 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 achieve-
ment.’’;
(2) in subsection (b)—
(A) in paragraph (5), by striking ‘‘and’’ after the semi-
colon;
(B) in paragraph (6), by striking the period and insert-
ing ‘‘; 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 sec-
tion 10302(c)(2)(C), the quality of those activities and the likeli-
hood 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 prac-
tices 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 activi-
ties 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
H. R. 2616—5
(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 one or more new public schools, includ-
ing charter schools, that are independent of the assist-
ing 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 participat-
ing in the partnership;
‘‘(iii) developing curriculum materials, assess-
ments, and other materials that promote increased
student achievement and are based on successful prac-
tices within the assisting charter school; and
‘‘(iv) conducting evaluations and developing mate-
rials 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 appro-
priated 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;
H. R. 2616—6
‘‘(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 char-
ter 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 collec-
tion 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; PAPER-
WORK 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 following:
‘‘SEC. 10306. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR
AND FOR SUCCESSIVE ENROLLMENT 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 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, notwith-
standing the fact that the identity and characteristics of the stu-
dents 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 enroll-
ment 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 Novem-
ber 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
H. R. 2616—7
such academic 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 OPERA-
TORS.
‘‘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 activi-
ties of charter schools.
‘‘SEC. 10308. RECORDS TRANSFER.
‘‘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 Edu-
cation 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.
‘‘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 semi-
colon;
(4) in subparagraph (K), by striking the period and insert-
ing ‘‘; 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 assess-
ments that are required of other schools and pursuant
to any other assessments mutually agreeable to the author-
ized 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 amend-
ed 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—
H. R. 2616—8
(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 para-
graph (1) of section 10304(e) of such Act (20 U.S.C. 8064(e)) is
amended by striking ‘‘10306(1)’’ and inserting ‘‘10310(1)’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.