As of November 1996, at least 25 states had passed charter-school legislation empowering agencies of state government to enter into agreements with private individuals and groups to operate public schools. This is a guidebook for government agencies given the power to permit individuals and groups to operate autonomous public schools under state "charter school" legislation. It is intended to help chartering agencies develop their own charter school programs by providing information on: (1) charter-school concept and the different types of charter statutes; (2) the capabilities required of charter applicants to develop and implement their school programs; (3) the types of applicants that agencies are likely to encounter, as well as other private-sector actors involved with charter schools; (4) the specific functions and capabilities of chartering agencies; and (5) advice for chartering agencies initiating a charter-school program. Nine figures and one table are included. (LMI)