This report highlights recent legislation in Minnesota and California concerning charter schools, schools designed and run by teachers under contract with a public sponsor, and provides a brief overview of the issues involved in the establishment of charter schools as a strategy for improving public schools. In Minnesota, charter school legislation was passed because public school choice had not gone far enough, while California's legislation was in part an attempt to forestall a much more radical private-school voucher initiative now scheduled to appear on the ballot in 1994. Significant differences are listed between the two states' charter school processes, including how many charters the states allow, the application process, the appeals process, employment protection, requirements for racial balance, and whether private schools can apply. Thus far, while the charter school concept has not met with success in Minnesota, the local school boards are agreeing to sponsor at least four schools. In 1993, charter legislation is being proposed or is pending in at least 12 additional states. The report suggests that regardless of their ultimate success, charter schools offer some legislatures a politically attractive response to many of the demands being made upon them. (Contains 9 references.) (GLR)