As of September 1995, a total of 19 states had passed charter school legislation and 226 charter schools were operating. This document presents an overview of state legislation and describes the status of charter schools in operation in the United States. Chapter 1 provides background information on charter schools--a discussion of trends leading to the charter school movement, a definition of charter schools, and arguments for and against the reform. Chapter 2 analyzes charter school laws in all 19 states, with a focus on elements of the laws that make development of charter schools more or less likely, amendments to charter school laws over the years, and trends in 1995 legislation. The progress and demise of charter school legislation in Indiana during the 1995 session of the General Assembly are examined in the third chapter. Chapter 4 summarizes and analyzes the existing research on approved and operating charter schools around the country, including information on school type and size, student population, educational approaches, barriers to formation, parent involvement, effect on the public school system as a whole, and student achievement. Recommendations for policymakers are offered in chapter 5. Findings indicate that charter schools serve a student population comparable to the overall public school population in terms of race and socioeconomic status. They offer a variety of educational innovations. The two main barriers to implementation are lack of capital funds and lack of legal/business expertise. Any link between charter school organization and student achievement has yet to be documented. Five tables are included. The appendix contains a list of contact people and organizations. (Contains 29 references.) (LMI)