Mental Health in Schools Act of 2017 This bill amends the Public Health Service Act to revise a community children and violence program to assist local communities and schools in applying a public health approach to mental health services, including by: (1) revising eligibility requirements for a grant, contract, or cooperative agreement; and (2) providing for comprehensive school mental health programs that are culturally and linguistically appropriate, trauma-informed, and age appropriate. A comprehensive school mental health program funded under this bill must assist children in dealing with trauma and violence. The bill makes only certain partnerships that include a state educational agency and one or more educational agencies, with a local agency serving as lead partner, eligible for funding. They include public or private entities that use evidence-based intervention. The Substance Abuse and Mental Health Services Administration shall develop a fiscally appropriate process for evaluating grant program activities, including the development of: (1) guidelines for the submission of program data by recipients; and (2) outcome measures to be applied by recipients in evaluating programs, including student and family measures and local educational measures.