SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public School Redefinition Act of 
1993''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the ability of the United States to deliver more 
        effective educational services to citizens, especially 
        disadvantaged citizens, is of primary importance to the 
        national and economic security of the United States;
            (2) fundamental reform is needed in our Nation's 
        educational system in order to release the creative energies of 
        teachers, students, parents, and communities;
            (3) market forces of competition and choice can have a 
        positive influence in promoting fundamental reform; however, 
        choice is incomplete without the availability of more 
        educational choices for all students, including disadvantaged 
        students and historically underserved students;
            (4) the exclusive franchise that local educational agencies 
        have traditionally had on the creation of new public schools 
        has served to limit the number and variety of school choices 
        available to parents and students; and
            (5) public education should be defined by outcomes and 
        requirements that protect and promote the public interest, not 
        solely by the ownership or control of facilities and programs 
        by a local educational agency or other public agency.

SEC. 3. PURPOSE.

    It is the purpose of this Act to--
            (1) encourage States to offer teachers, parents, and local 
        communities the opportunity to establish new and more effective 
        public schools;
            (2) provide Federal assistance and flexibility to encourage 
        States to assist teachers, parents, and communities to develop 
        such schools; and
            (3) provide criteria for States, teachers, parents, and 
        communities to use in establishing new and more effective 
        public schools.

SEC. 4. DEFINITIONS.

    For the purpose of this Act--
            (1) the term ``eligible partnership'' means a partnership 
        between--
                    (A) a sponsor; and
                    (B) a charter public school;
            (2) the term ``local educational agency'' has the meaning 
        given such term by section 1471(12) of the Elementary and 
        Secondary Education Act of 1965;
            (3) the term ``charter public school'' means a school 
        that--
                    (A) is nonsectarian in its programs, admission 
                policies, employment practices, and all other 
                operations and is not affiliated with a nonpublic 
                sectarian school or religious institution;
                    (B) has a primary focus of providing a 
                comprehensive program of instruction for at least one 
                grade from kindergarten to twelfth grade or one age 
                group from 5 to 18 years of age;
                    (C) does not charge tuition;
                    (D) complies with title VI of the Civil Rights Act 
                of 1964, title IX of the Education Amendments of 1972, 
                section 504 of the Rehabilitation Act of 1973, and the 
                procedural safeguards under the Individuals With 
                Disabilities Education Act;
                    (E) in the event that more students apply for 
                admission than may be accommodated, admits students on 
                the basis of a lottery;
                    (F) is subject to the same Federal and State 
                financial audits and audit procedures and requirements 
                as any other school located in the State in which such 
                school is located;
                    (G) meets all State and local health and safety 
                requirements; and
                    (H) participates in an eligible partnership;
            (4) the term ``Secretary'' means the Secretary of 
        Education;
            (5) the term ``sponsor'' means a--
                    (A) school board;
                    (B) local educational agency; or
                    (C) State educational agency;
            (6) the term ``State educational agency'' has the meaning 
        given such term by section 1471(23) of the Elementary and 
        Secondary Education Act of 1965.

SEC. 5. PROGRAM AUTHORITY.

    (a) Program Authorized.--
            (1) In general.--The Secretary is authorized to award 
        grants to State educational agencies having applications 
        approved pursuant to section 6 to enable such agencies to 
        conduct a charter public school program in accordance with this 
        Act.
            (2) Special rule.--If a State elects not to participate in 
        the program assisted under this Act, the Secretary is 
        authorized to award a grant to a charter public school that 
        serves such State and has an application approved pursuant to 
        section 6, as permitted by applicable State laws and 
        regulations in the State in which the school shall operate.
    (b) Use of Grants.--
            (1) State.--Each State educational agency receiving a grant 
        under this Act shall use such grant funds to award grants to 
        one or more charter public schools in the State to enable such 
        schools to plan and implement a charter public school in 
        accordance with this Act.
            (2) Charter public school.--Each charter public school 
        receiving a grant from the Secretary pursuant to subsection 
        (a)(2) shall use such grant funds to plan and implement a 
        charter public school in accordance with this Act.
            (3) Administrative expenses.--Each State educational agency 
        receiving a grant pursuant to subsection (a)(1) may reserve not 
        more than 5 percent of such grant funds for administrative 
        expenses associated with the program assisted under this Act.
    (c) Duration.--A charter public school shall receive a grant under 
this Act for a period of not more than 3 years.
    (d) Matching Requirement.--In order for a charter public school to 
receive a grant pursuant to subsection (a), such school shall provide 
matching funds in the amount of--
            (1) 10 percent of the grant payment received in the first 
        year such school receives a grant under this Act; and
            (2) 25 percent of the grant payment received in the second 
        and third such years.
    (e) Geographic Dispersion.--The Secretary shall ensure that grants 
awarded pursuant to subsection (a) benefit students in urban and rural 
areas.
    (f) Construction, Renovation, and Repair.--
            (1) Prohibition.--Grant funds awarded under this Act shall 
        not be used for the construction or major renovation or repair 
        of facilities.
            (2) Start-up costs.--Grant funds awarded under this Act may 
        be used for planning, equipment purchases, and other start-up 
        costs, including minor renovation of facilities necessary to 
        meet applicable State and local health and safety requirements.

SEC. 6. APPLICATION.

    (a) State Application.--
            (1) In general.--Each State educational agency desiring a 
        grant under this Act shall submit to the Secretary an 
        application at such time, in such manner, and containing or 
        accompanied by such information as the Secretary may reasonably 
        require.
            (2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall--
                    (A) describe the objectives of the State 
                educational agency's charter public school program and 
                a description of how such objectives shall be 
                fulfilled, including steps taken by the State 
                educational agency to inform teachers, parents, and 
                communities of the State educational agency's charter 
                public school program and the availability of grants 
                for the establishment of such schools;
                    (B) contain assurances that the State educational 
                agency shall obtain a waiver of all State and Federal 
                statutes and regulations applicable to a school board, 
                local educational agency or school district that are 
                relevant to and hindering the establishment of a 
                charter public school in such State;
                    (C) provide a written description of outcomes and 
                other requirements to be included in each eligible 
                partnership agreement between a sponsor and a charter 
                public school;
                    (D) provide a description of how charter public 
                schools within the State shall be required to meet the 
                definition of a charter public school as described in 
                section 4(3);
                    (E) contain specific outcomes to be achieved by the 
                students attending a charter public school in 
                accordance with the outcomes agreement described in 
                section 7;
                    (F) provide an explanation of how progress in 
                meeting the outcomes described in section 7 shall be 
                measured; and
                    (G) contain a description of how teachers, parents, 
                and community members have been, or shall be, involved 
                in the planning, development and implementation of each 
                charter public school.
    (b) Eligible Partnership Application.--
            (1) In general.--Each charter public school desiring a 
        grant pursuant to section 5(a)(2) shall submit an application 
        to the Secretary at such time, in such manner, and accompanied 
        by such information as the Secretary may reasonably require.
            (2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall contain the same information and assurances 
        as the information and assurances described in subparagraphs 
        (B) through (G) of subsection (a)(2).

SEC. 7. OUTCOMES AGREEMENT.

    (a) Agreement.--In order to receive a grant under this Act a 
charter public school shall enter into an outcomes agreement with the 
sponsor participating in the eligible partnership.
    (b) Contents.--Each agreement referred to in subsection (a) shall--
            (1) be in the form of a written contract between the 
        sponsor and the board of directors of the charter public school 
        participating in the eligible partnership;
            (2) set forth outcomes that such school shall achieve; and
            (3) include information and assurances described in 
        subparagraphs (B) through (G) of section 6(a)(2).

SEC. 8. CONTINUATION OF FUNDING.

    Each charter public school receiving a grant under this Act shall 
be eligible to receive Federal, State, and local education revenue, 
grants and other aids as though such school were a local educational 
agency.

SEC. 9. TERMINATION.

    The Secretary or a State educational agency receiving a grant under 
this part shall terminate grant payments under this Act if the 
Secretary or such State educational agency, at any time, determines 
that the charter public school is not making acceptable progress toward 
meeting the outcomes described in section 7.

SEC. 10. REPORTS.

    (a) State Report.--
            (1) Reports.--Each charter public school receiving a grant 
        pursuant to section 5(a)(1) shall report at least annually to 
        the State educational agency or other agency designated by the 
        Governor on such school's progress in meeting the outcomes 
        described in section 7.
            (2) Report to the secretary.--Each State educational agency 
        receiving a report under subsection (a) shall annually report 
        to the Secretary on the program assisted under this Act.
    (b) School Reports.--Each charter public school receiving a grant 
pursuant to section 5(a)(2) shall at least annually report to the 
Secretary the charter public school's progress in meeting the outcomes 
described in section 7.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $50,000,000 for fiscal year 
1994, $75,000,000 for fiscal year 1995, and such sums as may be 
necessary for the 3 succeeding fiscal years to carry out the provisions 
of this Act.
Public School Redefinition Act of 1993 - Establishes a demonstration program to provide Federal assistance to encourage States to assist teachers, parents, and local communities to establish and develop outcome-based public schools. 
Authorizes the Secretary of Education to award grants to State educational agencies (SEAs) to conduct such outcome-based public school programs (or, if a State elects not to participate, to award such a grant directly to an outcome-based public school). 
Limits such grants to three years and requires the school to provide matching funds.  Prohibits grant funds from being used for construction or major renovation or repair of facilities, but allows their use for planning, equipment purchases and other start-up costs, including minor renovation of facilities to meet applicable health and safety requirements. 
Provides that each such outcome-based public school shall be eligible to receive Federal, State, and local education revenue, grants, and other aid as though such school were a local educational agency. 
Directs the Secretary or the SEA receiving such a grant to terminate grant payments to an outcome-based public school upon determination that it is not making acceptable progress. 
Authorizes appropriations.
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