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Jonathan H. Schnur @ OVP 09/10/97 10:05:37 AM Record Type: Record To: William R. Kincaid/OPD/EOP, Michael Cohen/OPD/EOP CC: Subject: Charter Legislation/Lieberman's office From Alex Medler at Education Forwarded by Jonathan H. Schnur/OVP on 09/10/97 10:14 AM Alex_Medler @ ed.gov 09/10/97 09:33:00 AM Record Type: Record To: Jonathan H. Schnur/OVP CC: Subject: Charter Legislation/Lieberman's office I bumped into Dan Gerstein this morning on the metro, and subsequently grilled him on the status of stipulations regarding the charter school program. He said he might be able to circulate the draft soon. In the meantime, here's what he told me: 1. National activities would be capped at the 97 level. 2. National activities would be directed to provide grants to "charter friends groups" (the assorted groups and agencies that provide technical assistance to charter schools). 3. National activities would include the Department giving assistance to states in setting up revolving loan funds. States would still fund the revolving loans with their grants. (He didn't sound optomistic about this part staying in the bill.) 4. Stipulations about grants to states designed to encourage the passage of "stronger" charter school laws would be phased in over 3 years. States could still be refunded at the 97 level of funding for three years, but new states and grants in the meantime would have preferences, and or stronger "incentives" encouraging the following: a. a stronger definition of what is a charter school, including some sort of performance based contract from the school with its chartering authority; b. a wide range of regulatory relief from state and local rules and regulations, i.e. "blanket waivers" written into charter laws; and C. some other language, which he didn't specify, that would lead to more money going to states with more charter schools. 5. they are awaiting the GAO report before writing anything about charter school access to Federal categorical funds. And in the hearsay category, he also said Riggs and Roemer were drafting an amendment on the House side to get the $75 up to $100, but that "they" were busy with some legislation about the national test. 091009E7.TXT 10/16/97 THU 19:28 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 001 FAX TRANSMISSION OF U.S. DEPARTMENT OF EDUCATION * * Office of Legislation and Congressional Affairs UNITED STATES Of AMERICA 600 Independence Ave., SW, Room 6337 Washington, DC 20202-3100 (202)401-1028 Fax: (202)401-1438 Date: 10/16/97 Fax: 456-7028 To: Bill Kincard Office of : From: Sandra Cook Number of Pages (including cover sheet): If there are any problèms with this transmission, please contact me at: (202)401-0020 Comments: 10/16/97 THU 19:28 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 002 O:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 105TH CONGRESS 1ST SESSION S. IN THE SENATE OF THE UNITED STATES Mr. LIEBERMAN introduced the following bill; which was read twice and re- ferred to the Committee on A BILL To amend the Elementary and Secondary Education Act of-1965 regarding charter schools. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE. 4 This Act may be cited as the "Charter School Expan- 5 sion Act of 1997". 6 SEC 2. INNOVATIVE CHARTER SCHOOLS. 7 Title VI of the Elementary and Secondary Education 8 Act of 1965 (20 U.S.C. 7301 et seq.) is amended- 9 (1) in section 6201(a) (20 U.S.C. 7331(a))- 10 (A) in paragraph (1)(C), by striking "and" 11 after the semicolon; 10/16/97 THU 19:29 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 003 O:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 2 1 (B) by redesignating paragraph (2) as 2 paragraph (3); and 3 (C) by inserting after paragraph (1) the 4 following: 5 "(2) support for planning, designing, and initial 6 implementation of charter schools as described in 7 part C of title X; and"; and 8 (2) in section 6301(b) (20 U.S.C. 7351(b))- 9 (A) in paragraph (7), by striking "and" 10 after the semicolon; 11 (B) by redesignating paragraph (8) as 12 paragraph (9); and 13 (C) by inserting after paragraph (7) the 14 following: 15 "(8) planning, designing, and initial implemen- 16 tation of charter schools as described in part C of 17 title X; and". 18 SEC. 3. CHARTER SCHOOLS. 19 (a) PURPOSE.-Section 10301(b) of the Elementary 20 and Secondary Education Act of 1965 (20 U.S.C. 21 8061(b)) is amended— 22 (1) in paragraph (1), by striking "and" after 23 the semicolon; 24 (2) in paragraph (2), by striking the period and 25 inserting "; and"; and 10/16/97 THU 19:29 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 004 O:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 3 1 (3) by adding at the end the following: 2 "(3) expanding the number of high quality 3 charter schools available to students across the Na- 4 tion.". 5 (b) PROGRAM PRIORITY AND REQUIREMENTS.-Sec- 6 tion 10302 of such Act of 1965 (20 U.S.C. 8062) is 7 amended by adding at the end the following: 8 "(e) PRIORITY AND REQUIREMENTS.- 9 "(1) PRIORITY.- 10 "(A) FISCAL YEARS 1998, 1999, AND 2000.- 11 In awarding grants under this part for any of 12 the fiscal years 1998, 1999, and 2000 from 13 funds appropriated under section 10310 that 14 are in excess of $51,000,000 for the fiscal year, 15 the Secretary shall give priority to State edu- 16 cational agencies serving States that meet the 17 requirements of paragraph (2). 18 "(B) SUCCEEDING FISCAL YEARS.-In 19 awarding grants under this part for fiscal year 20 2001 or any succeeding fiscal year from any 21 funds appropriated under section 10310, the 22 Secretary shall give priority to State edu- 23 cational agencies serving States that meet the 24 requirements of paragraph (2). 10/16/97 THU 19:29 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 005 O:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 4 1 "(2) REQUIREMENTS.-The requirements re- 2 ferred to in paragraph (1) are as follows: 3 "(A) The State has demonstrated signifi- 4 cant progress in increasing the number of char- 5 ter schools for the year for which the deter- 6 mination is made compared to the previous 7 year. 8 "(B) The State law regarding charter 9 schools provides for at least 2 authorized public 10 chartering agencies, or in the case of a State 11 with a single authorized public chartering agen- 12 cy, allows for an appeals process for the denial 13 of an application for a charter school. 14 "(C) The State law regarding charter 15 schools provides for the waiver of most State 16 education laws and regulations, except those 17 laws and regulations related to health, safety, 18 and civil rights. 19 "(D) The State law regarding charter 20 schools provides for periodic review and evalua- 21 tion by the authorized public chartering agency 22 of each charter school to determine whether the 23 charter school is meeting or exceeding the aca- 24 demic performance requirements and goals for 10/16/97 THU 19:29 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 006 0:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 5 1 charter schools as set forth under State law 01' 2 the school's charter. 3 "(f) AMOUNT CRITERIA.-In determining the amount 4 of a grant to be awarded under this part in a State, the 5 Secretary shall take into consideration the number of 6 charter schools created under this part in the State." 7 (c) APPLICATIONS.-Section 10303(b) of such Act 8 (20 U.S.C. 8063(b)) is amended- 9 (1) by redesignating paragraph (2) as para- 10 graph (3); and 11 (2) by inserting after paragraph (1) the follow- 12 ing: 13 "(2) describe how the State educational agen- 14 cy- 15 "(A) will inform each charter school in the 16 State of available Federal programs and funds 17 that the charter school is eligible to receive; and 18 "(B) will ensure that each charter school 19 in the State receives the charter school's com- 20 mensurate share of Federal education funds 21 that are allocated by formula; and". 22 (d) NATIONAL ACTIVITIES-Section 10305 of such 23 Act (20 U.S.C. 8065) is amended to read as follows: 10/16/97 THU 19:29 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 007 O:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 6 1 "SEC. 10305. NATIONAL ACTIVITIES. 2 "The Secretary shall reserve for each fiscal year the 3 lesser of 5 percent of the amount appropriated to carry 4 out this part for the fiscal year or $5,000,000, to carry 5 out the following activities: 6 "(1) To provide charter schools, either directly 7 or through the State educational agency, with- 8 "(A) information regarding available edu- 9 cation funds that the charter schools are eligi- 10 ble to receive; and 11 "(B) assistance in applying for Federal 12 education funds that are allocated by formula, 13 including assistance with filing deadlines and 14 submission of applications. 15 "(2) To provide for the completion of the 4-year 16 national study (which began in 1995) of charter 17 schools and any related evaluations or studies. 18 "(3) To provide- 19 "(A) information to applicants for assist- 20 ance under this part; 21 "(B) assistance to applicants for assistance 22 under this part with the preparation of applica- 23 tions under section 10303; 24 "(C) assistance in the planning and start- 25 up of charter schools; 10/16/97 THU 19:30 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 008 DISCUSSION DRAFT S.L.C. O:\SIG\SIG97.789 7 1 "(D) ongoing training and technical assist- 2 ance to existing charter schools; and 3 "(E) for the dissemination of best prac- 4 tices in charter schools to other public 5 schools.". 6 (e) COMMENSURATE TREATMENT; RECORDS TRANS- 7 FER; PAPERWORK REDUCTION.-Part C of title X of such 8 Act (20 U.S.C. 8061 et seq.) is amended- 9 (1) by redesignating sections 10306 and 10307 10 as sections 10309 and 10310, respectively; and 11 (2) by inserting after section 10305 the follow- 12 ing: 13 "SEC. 10306. PART A, TITLE I ALLOCATION DURING FIRST 14 YEAR AND FOR SUCCESSIVE ENROLLMENT 15 EXPANSIONS. 16 "For purposes of the allocation to schools by the 17 States or their agencies of funds under part A of title I, 18 or of any other Federal educational assistance funds, the 19 Secretary shall take such measures not later than 6 20 months after the date of the enactment of the Charter 21 School Expansion Act of 1997 as are necessary to ensure 22 that every charter school receives the charter school's full 23 share of funding in the calendar year in which the charter 24 school first opens, notwithstanding the fact that the iden- 25 tity and characteristics of the students enrolling in that 10/16/97 THU 19:30 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 009 O:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 8 1 school are not fully and completely determined until that 2 school actually opens. These measures shall similarly en- 3 sure that every charter school expanding the charter 4 school's eurollment in any subsequent year of operation 5 receives the charter school's full share of funding during 6 the calendar year of such expansion. 7 "SEC. 10307. RECORDS TRANSFER. 8 "State educational agencies and local educational 9 agencies, to the extent practicable, shall ensure that a stu- 10 dent's records, and if applicable a student's individualized 11 education program as defined in section 602(11) of the 12 Individuals with Disabilities Education Act (20 U.S.C. 13 1401(11)), are transferred to a charter school upon the 14 transfer of the student to the charter school, in accordance 15 with applicable State law. 16 "SEC. 10308. PAPERWORK REDUCTION. 17 "To the extent practicable, the Secretary and each 18 authorized public chartering agency shall ensure that im- 19 plementation of this part results in a minimum of paper- 20 work for any eligible applicant or charter school." 21 (f) PART C DEFINITIONS.-Section 10309(1) of such 22 Act (as redesignated by subsection (e)(1)) (20 U.S.C. 23 8066(1)) is amended— 24 (1) in subparagraph (A), by inserting "that reg- 25 ulates schools with a charter" after "statute"; 10/16/97 THU 19:30 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 010 O:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 9 1 (2) in subparagraph (H), by inserting "is a 2 school to which parents choose to send their chil- 3 dren, and that" before "admits"; 4 (3) in subparagraph (J), by striking "and" 5 after the semicolon; 6 (4) in subparagraph (K), by striking the period 7 and inserting "; and"; and 8 (5) by adding at the end the following: 9 "(L) has a written performance contract 10 with the authorized public chartering agency in 11 the State.". 12 (g) AUTHORIZATION OF APPROPRIATIONS.-Section 13 10310 of such Act (as redesignated by subsection (e)(1)) 14 (20 U.S.C. 8067) is amended by striking "$15,000,000 15 for fiscal year 1995" and inserting "$100,000,000 for fis- 16 cal year 1998". 17 (h) TITLE XIV DEFINITIONS-Section 14101 of 18 such Act (20 U.S.C. 8801) is amended— 19 (1) in paragraph (14), by inserting ", including 20 a public elementary charter school," after "residen- 21 tial school"; and 22 (2) in paragraph (25), by inserting ", including 23 a public secondary charter school," after "residential 24 school". 10/16/97 THU 19:30 FAX 202 401 1438 DEPT OF EDUCATION/OLCA1 4 011 O:\SIG\SIG97.789 DISCUSSION DRAFT S.L.C. 10 1 (i) CONFORMING AMENDMENT.-The matter preced- 2 ing paragraph (1) of section 10304(c) of such Act (20 3 U.S.C. 8064(e)) is amended by striking "10306(1)" and 4 inserting "10309(1)".