Charter School Expansion Act of 1998
PL 105-278 (H.R.2616), enacted 10/22/1998

112 STAT. 2682 
PUBLIC LAW 105-278—OCT. 22, 1998 
Public Law 105-278 
105th Congress 
Oct. 22, 1998 
[H.R. 2616] 
Charter School 
Expansion Act of 
1998. 
Grants. 
20 u s e 6301 
note. 
An Act 
To amend title 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 Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Charter School Expansion 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; 
(B) by redesignating paragraph (2) as paragraph (3); 
and 
(C) by inserting after paragraph (1) the following: 
"(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 semi-
colon; 
(B) by redesignating paragraph (8) as paragraph (9); 
and 
(C) by inserting after paragraph (7) the following: 
"(8) planning, designing, and initial implementation 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 Second-
ary Education Act of 1965 (20 U.S.C. 8061(b)) is amended— 
(1) in paragraph (1)— 
(A) by inserting "planning, program" before "design"; 
and 
(B) by striking "and" after the semicolon; 
(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 charter 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— 
PUBLIC LAW 105-278—OCT. 22, 1998 
112 STAT. 2683 
(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 TREATME^^^.— 
"(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 PRIORIITY 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 th'e schools, in the period 
prior to the period for which a State educational agency 
or eligible applicant applies for a gjant 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 
112 STAT. 2684 
PUBLIC LAW 105-278—OCT. 22, 1998 
"(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)— 
PUBLIC LAW 105-278—OCT. 22, 1998 
112 STAT. 2685 
(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 £ind 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 grEint 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 
(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 
112 STAT. 2686 
PUBLIC LAW 105-278—OCT. 22, 1998 
(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 perforaiance 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 i*lBgarding— 
"(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; 
PUBLIC LAW 105-278—OCT. 22, 1998 
112 STAT. 2687 
20 use 8066, 
8067. 
20 use 8065a. 
"(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 Deadline, 
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 pajonents 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 Federgd 
statutes and regulations, shall ensure that such charter schools 
that are eligible for the funds described in subsection (a) for 
112 STAT. 2688 
PUBLIC LAW 105-278—OCT. 22, 1998 
such academic year have a full and fair opportunity to receive 
those funds during the charter schools' first year of operation. 
20 use 8065b. 
"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 activir 
ties of chgirter schools. 
20 use 8065c. 
"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. 
20USC8065d. 
"SEC. 10309. PAPERWOMC 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 ±he 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 scKools and pursusint 
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 XTV DEFINITIONS.—Section 14101 of such Act (20 
U.S.C. 8801) is amended— 
PUBLIC LAW 105-278—OCT. 22, 1998 
112 STAT. 2689 
(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)". 
Approved October 22, 1998. 
LEGISLATIVE HISTORY—H.R. 2616 (S. 1380): 
HOUSE RETPORTS: NO. 105-321 (Comm. on Education and the Workforce). 
SENATE REPORTS: No. 105-301 accompanying S. 1380 (Comm. on Labor and 
Human Resources). 
CONGRESSIONAL RECORD: 
Vol. 143 (1997): Nov. 4, 7, considered and passed House. 
Vol. 144 (1998): Oct. 8, considered and passed Senate, amended. 
Oct. 9, 10, House concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998): 
Oct. 22, Presidential statement.