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        PRIOR PRINTER'S NOS. 141, 801, 1992,          PRINTER'S NO. 2814
        2099, 2125

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 113 Session of 2003


        INTRODUCED BY HALUSKA, ARGALL, BARD, BEBKO-JONES, BELARDI,
           BELFANTI, BROWNE, BUNT, CAUSER, CAWLEY, CORRIGAN, COY,
           CRAHALLA, CREIGHTON, DALEY, DeLUCA, DeWEESE, EACHUS,
           D. EVANS, FAIRCHILD, FLEAGLE, FREEMAN, GEIST, GEORGE,
           GRUCELA, HARHAI, HENNESSEY, HORSEY, HUTCHINSON, KIRKLAND,
           KOTIK, LAUGHLIN, LEACH, LEDERER, MACKERETH, MANN, MARKOSEK,
           McGEEHAN, McILHATTAN, MELIO, S. MILLER, NAILOR, PALLONE,
           PETRONE, PICKETT, PISTELLA, PRESTON, READSHAW, RUFFING,
           SAINATO, SATHER, SAYLOR, SCRIMENTI, SEMMEL, SOLOBAY, STABACK,
           STERN, TANGRETTI, E. Z. TAYLOR, THOMAS, TIGUE, WANSACZ,
           WASHINGTON, WOJNAROSKI, YOUNGBLOOD, SURRA, HARPER, REICHLEY
           AND HABAY, FEBRUARY 6, 2003

        AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
           OCTOBER 19, 2003

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An  <--
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," requiring school districts to reopen
     6     their 2003-2004 budgets; imposing limitations on certain
     7     unreserved fund balances; further providing for auxiliary
     8     service; deleting provisions relating to professional teacher
     9     assessment; further providing for cost of tuition and
    10     maintenance of certain exceptional children in approved
    11     private schools; providing for firefighter and emergency
    12     service training; further providing for Education Support
    13     Services Program, for education empowerment districts, for
    14     mandate waiver program and for school improvement grants;
    15     further defining "educational improvement organization" and
    16     "scholarship organization"; further providing for payments on
    17     account of pupils enrolled in vocational curriculums and for
    18     small district assistance; providing for basic education
    19     funding for 2002-2003 school year; further providing for
    20     payments to intermediate units, for special education
    21     payments to school districts and for Commonwealth
    22     reimbursements for charter schools and cyber charter schools;


     1     and making appropriations, repeals and an editorial change.
     2  AMENDING THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), ENTITLED "AN  <--
     3     ACT RELATING TO THE PUBLIC SCHOOL SYSTEM, INCLUDING CERTAIN
     4     PROVISIONS APPLICABLE AS WELL TO PRIVATE AND PAROCHIAL
     5     SCHOOLS; AMENDING, REVISING, CONSOLIDATING AND CHANGING THE
     6     LAWS RELATING THERETO," ADDING DEFINITIONS; REQUIRING SCHOOL
     7     DISTRICTS TO REOPEN THEIR 2003-2004 BUDGETS; FURTHER
     8     PROVIDING FOR FISCAL YEAR AND DELAY OF ADOPTION OF ANNUAL
     9     BUDGET, FOR TAX LEVY AND LIMITATIONS, FOR PER CAPITA TAXES,
    10     FOR AUXILIARY SERVICES AND FOR DISTRESS IN SCHOOL DISTRICTS
    11     OF THE FIRST CLASS; PROVIDING FOR THE IMPOSITION AND
    12     COLLECTION OF AN EARNED INCOME AND NET PROFITS TAX OR
    13     PERSONAL INCOME TAX BY SCHOOL DISTRICTS AFTER APPROVAL BY THE
    14     ELECTORS, FOR STATE MATCHING FUNDS FORMULA AND FOR WAGE AND
    15     NET PROFITS TAX RELIEF IN CITIES OF THE FIRST CLASS; FURTHER
    16     PROVIDING FOR LOAN OF TEXTBOOKS, INSTRUCTIONAL MATERIALS AND
    17     INSTRUCTIONAL EQUIPMENT FOR NONPUBLIC SCHOOL CHILDREN;
    18     DELETING PROVISIONS RELATING TO PROFESSIONAL TEACHER
    19     ASSESSMENT; PROVIDING FOR FIREFIGHTER AND EMERGENCY SERVICE
    20     TRAINING; AMENDING PROVISIONS RELATING TO THE EDUCATION
    21     SUPPORT SERVICES PROGRAM; PROVIDING FOR THE EDUCATIONAL
    22     ASSISTANCE PROGRAM, THE HEAD START SUPPLEMENTAL ASSISTANCE
    23     PROGRAM AND FOR A CHILD DAY CARE AND EARLY CHILDHOOD
    24     DEVELOPMENT STUDY; FURTHER PROVIDING FOR FUNDING FOR CHARTER
    25     SCHOOLS, FOR CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER
    26     SCHOOLS, FOR EDUCATION EMPOWERMENT DISTRICTS AND FOR SCHOOL
    27     IMPROVEMENT GRANTS; IMPOSING CERTAIN LIMITATIONS ON
    28     PROVISIONS RELATING TO EDUCATION EMPOWERMENT; FURTHER
    29     PROVIDING FOR FINANCIAL PROGRAM AND REIMBURSEMENT OF PAYMENTS
    30     RELATING TO COMMUNITY COLLEGES; AMENDING PROVISIONS RELATING
    31     TO EDUCATIONAL IMPROVEMENT TAX CREDIT; FURTHER PROVIDING FOR
    32     PAYMENTS ON ACCOUNT OF PUPILS ENROLLED IN VOCATIONAL
    33     CURRICULUMS, FOR SMALL DISTRICT ASSISTANCE AND FOR TEMPORARY
    34     SPECIAL AID TO SCHOOL DISTRICTS SUFFERING LOSS OF TAX REVENUE
    35     UNDER CERTAIN CIRCUMSTANCES; PROVIDING FOR BASIC EDUCATION
    36     FUNDING FOR 2002-2003 SCHOOL YEAR; FURTHER PROVIDING FOR
    37     PAYMENTS TO INTERMEDIATE UNITS, FOR SPECIAL EDUCATION
    38     PAYMENTS TO SCHOOL DISTRICTS, FOR EXTRAORDINARY SPECIAL
    39     EDUCATION PROGRAM EXPENSES AND FOR FOR COMMONWEALTH
    40     REIMBURSEMENTS FOR CHARTER SCHOOLS AND CYBER CHARTER SCHOOLS;
    41     PROVIDING FOR PENNSYLVANIA ACCOUNTABILITY GRANTS; ADDING
    42     PROVISIONS RELATING TO CERTAIN EDUCATIONAL ACCOUNTABILITY;
    43     PROVIDING FOR TEACHER RECRUITMENT ASSISTANCE; ESTABLISHING
    44     THE TEACHER RECRUITMENT ASSISTANCE FUND; FURTHER PROVIDING
    45     FOR POWERS AND DUTIES OF THE STATE BOARD OF EDUCATION; MAKING
    46     APPROPRIATIONS; PROVIDING FOR APPLICABILITY OF REFERENDUM
    47     EXCEPTIONS AND MAKING OF ELECTIONS; MAKING REPEALS; AND
    48     MAKING EDITORIAL CHANGES.

    49     The General Assembly of the Commonwealth of Pennsylvania
    50  hereby enacts as follows:
    51     Section 1.  Section 687 of the act of March 10, 1949 (P.L.30,  <--
    52  No.14), known as the Public School Code of 1949, is amended by
    53  adding a subsection to read:

    20030H0113B2814                  - 2 -     

     1     Section 687.  Annual Budget; Additional or Increased
     2  Appropriations; Transfer of Funds.--* * *
     3     (j)  (1)  Notwithstanding any other provisions of this act,
     4  the board of school directors of each school district is
     5  required to and shall reopen its 2003-2004 budget during the
     6  month of July 2003 to reflect any increased State allocations
     7  under sections 2502.13 and 2502.41 for fiscal year 2003-2004
     8  provided by the General Assembly through this act and to comply
     9  with section 688.
    10     (2)  In those school districts which levy taxes and where the
    11  increased State allocations exceed the State revenue figures
    12  utilized by the school district at the time of adoption of its
    13  original fiscal year 2003-2004 budget, the board of school
    14  directors shall first use the increase in State allocations to
    15  do any of the following:
    16     (i)  offset the increase in the employer contribution rate on
    17  behalf of active members of the Public School Employees'
    18  Retirement System as calculated under 24 Pa.C.S. § 8328
    19  (relating to actuarial cost method). Such amount shall supplant
    20  any other school district revenues allocated for this purpose;
    21     (ii)  abate any local taxes which were levied at the time of
    22  original budget adoption. Such tax abatements shall occur within
    23  sixty (60) days of the reopening of the school district's budget
    24  and may take the form of tax reductions, rebates or credits;
    25     (iii)  reduce or retire any outstanding indebtedness of the
    26  school district; or
    27     (iv)  restore funding to any educational programs which were
    28  reduced or eliminated for the 2003-2004 school year.
    29     (3)  Under no circumstances shall any increased State
    30  allocations be used to increase a school district's reserved or
    20030H0113B2814                  - 3 -     

     1  unreserved fund balances.
     2     Section 2.  The act is amended by adding a section to read:
     3     Section 688.  Limitations on Certain Unreserved Fund
     4  Balances.--(a)  For the 2003-2004 school year and each school
     5  year thereafter, no school district shall approve an increase in
     6  real property taxes unless it has adopted a budget or a reopened
     7  budget pursuant to section 687 that includes an estimated,
     8  ending unreserved undesignated fund balance in accordance with
     9  the limitations set forth as follows:
    10  School District            Estimated, Ending Unreserved Undesignated
    11  Total Budgeted                     Fund Balance as Percentage of
    12  Expenditures                       Total Budgeted Expenditures
    13  Less Than or Equal to $11,999,999      12%
    14  Between $12,000,000 and $12,999,999    11.5%
    15  Between $13,000,000 and $13,999,999    11%
    16  Between $14,000,000 and $14,999,999    10.5%
    17  Between $15,000,000 and $15,999,999    10%
    18  Between $16,000,000 and $16,999,999    9.5%
    19  Between $17,000,000 and $17,999,999    9%
    20  Between $18,000,000 and $18,999,999    8.5%
    21  Greater Than or Equal to $19,000,000   8%
    22     (b)  By August 15, 2003, and each year thereafter, each
    23  school district that approves an increase in real property taxes
    24  shall provide the Department of Education with information
    25  certifying compliance with this section. Such information shall
    26  be provided in a form and manner prescribed by the Department of
    27  Education and shall include information on the school district's
    28  estimated, ending unreserved undesignated fund balance expressed
    29  as a dollar amount and as a percentage of the school district's
    30  total budgeted expenditures for that school year.
    20030H0113B2814                  - 4 -     

     1     (c)  As used in this section, "estimated, ending unreserved
     2  undesignated fund balance" shall mean that portion of the fund
     3  balance, which is appropriable for expenditure or not legally or
     4  otherwise segregated for a specific or tentative future use,
     5  projected for the close of the school year for which a school
     6  district's budget was adopted and held in the General Fund
     7  accounts of the school district.
     8     Section 3.  Section 922.1-A of the act, amended or added
     9  August 1, 1975 (P.L.180, No.89), April 24, 1977 (P.L.199,
    10  No.59), October 10, 1980 (P.L.924, No.159) and May 10, 2000
    11  (P.L.44, No.16), is reenacted to read:
    12     Section 922.1-A.  Auxiliary Services.--(a)  Legislative
    13  Finding; Declaration of Policy. The welfare of the Commonwealth
    14  requires that the present and future generation of school age
    15  children be assured ample opportunity to develop to the fullest,
    16  their intellectual capacities. It is the intent of the General
    17  Assembly by this enactment to ensure that the intermediate units
    18  in the Commonwealth shall furnish on an equal basis auxiliary
    19  services to all pupils in the Commonwealth in both public and
    20  nonprofit nonpublic schools.
    21     (b)  Definitions. The following terms, whenever used or
    22  referred to in this section, shall have the following meanings,
    23  except in those circumstances where the context clearly
    24  indicates otherwise:
    25     "Auxiliary services" means guidance, counseling and testing
    26  services; psychological services; visual services as defined in
    27  section 923.2-A; services for exceptional children; remedial
    28  services; speech and hearing services; services for the
    29  improvement of the educationally disadvantaged (such as, but not
    30  limited to, the teaching of English as a second language), and
    20030H0113B2814                  - 5 -     

     1  such other secular, neutral, nonideological services as are of
     2  benefit to all school children and are presently or hereafter
     3  provided for public school children of the Commonwealth.
     4     "Nonpublic school" means nonprofit school, other than a
     5  public school within the Commonwealth of Pennsylvania, wherein a
     6  resident of the Commonwealth may legally fulfill the compulsory
     7  school attendance requirements of this act and which meet the
     8  requirements of Title VI of the Civil Rights Act of 1964
     9  (Pub.L.88-352; 42 U.S.C. Section 2000 et seq).
    10     (c)  Program of Auxiliary Services. Students attending
    11  nonpublic schools shall be furnished a program of auxiliary
    12  services which are provided to public school students in the
    13  school district in which their nonpublic school is located. The
    14  program of auxiliary services shall be provided by the
    15  intermediate unit in which the nonpublic school is located, in
    16  accordance with standards of the Secretary of Education. Before
    17  an intermediate unit makes any decision that affects the
    18  opportunities for children attending nonpublic schools to
    19  participate in the auxiliary services provided under this
    20  section, the intermediate unit shall consult with such nonpublic
    21  schools to determine at a minimum: which general categories of
    22  children shall receive services; what services shall be
    23  provided; how and where the services shall be provided; and how
    24  the services shall be evaluated. Such services shall be provided
    25  directly to the nonpublic school students by the intermediate
    26  unit in the schools which the students attend, in mobile
    27  instructional units located on the grounds of such schools or in
    28  any alternative setting mutually agreed upon by the school and
    29  the intermediate unit, to the extent permitted by the
    30  Constitution of the United States and the Constitution of the
    20030H0113B2814                  - 6 -     

     1  Commonwealth of Pennsylvania.
     2     Such auxiliary services shall be provided directly by the
     3  intermediate units and no auxiliary services presently provided
     4  to public school students by the intermediate units and/or
     5  school districts by means of State or local revenues, during the
     6  school year 1974-1975, shall be eliminated. No school districts
     7  shall be required, pursuant to any section of this act, to offer
     8  auxiliary services provided by any other school districts within
     9  such intermediate units.
    10     (d)  Allocations. In July of 1977 and annually thereafter in
    11  July, the Secretary of Education shall allocate to each
    12  intermediate unit an amount equal to the number of nonpublic
    13  school students as of October 1 of the preceding school year who
    14  are enrolled in nonpublic schools within the intermediate unit
    15  times seventy-two dollars ($72). The Secretary of Education
    16  shall increase this figure on a proportionate basis whenever
    17  there is an increase in the median actual instruction expense
    18  per WADM as defined in clause (12.1) of section 2501 of this
    19  act. The Commonwealth shall pay to each intermediate unit
    20  fifteen per centum (15%) of its allocation on August 1, seventy-
    21  five per centum (75%) on October 1, and the remaining ten per
    22  centum (10%) on the first day of February.
    23     (e)  Limitations. The intermediate unit shall not use more
    24  than six per centum (6%) of the funds it receives for
    25  administration or eighteen per centum (18%) for rental of
    26  facilities. The Department of Education shall not use more than
    27  one per centum (1%) of the funds it allocates under this section
    28  for administrative expenses. If all funds allocated by the
    29  intermediate units to administration, or rental facilities are
    30  not expended for those purposes, such funds may be used for the
    20030H0113B2814                  - 7 -     

     1  program costs.
     2     (f)  Interest. There shall be no adjustment in the allocation
     3  as provided in subsection (d) because of interest earned on the
     4  allocations by the intermediate units. Interest so earned shall
     5  be used for the purpose of this section but shall not be subject
     6  to the limitations of subsection (e).
     7     (g)  Preliminary Budget. Annually, each intermediate unit
     8  shall submit to the secretary a preliminary budget on or before
     9  January 31 and a final budget on or before June 15, for the
    10  succeeding year; and shall file a final financial report on or
    11  before October 31 for the preceding year.
    12     Section 3.1.  Article XII-A of the act is repealed.
    13     Section 4.  Section 1376 of the act, amended June 7, 1993
    14  (P.L.49, No.16), June 30, 1995 (P.L.220, No.26) and June 22,
    15  2001 (P.L.530, No.35), is amended to read:
    16     Section 1376.  Cost of Tuition and Maintenance of Certain
    17  Exceptional Children in Approved Institutions.--(a)  When any
    18  child between school entry age and twenty-one (21) years of age
    19  and resident in this Commonwealth, who is blind or deaf, or has
    20  cerebral palsy and/or neurological impairment and/or muscular
    21  dystrophy and/or is mentally retarded and/or has a serious
    22  emotional disturbance and/or has autism/pervasive developmental
    23  disorder and is enrolled, with the approval of the Department of
    24  Education, as a pupil in an approved private school approved by
    25  the Department of Education, in accordance with standards and
    26  regulations promulgated by the State Board of Education, the
    27  school district in which such child is resident or, for students
    28  placed by a charter school, the charter school in which the
    29  student was enrolled shall pay the greater of either twenty per
    30  centum (20%) of the actual audited cost of tuition and
    20030H0113B2814                  - 8 -     

     1  maintenance of such child in such school, as determined by the
     2  Department of Education, or its "tuition charge per elementary
     3  pupil" or its "tuition charge per high school pupil," as
     4  calculated pursuant to section 2561, and the Commonwealth shall
     5  pay, out of funds appropriated to the department for special
     6  education, the balance due for the costs of such child's tuition
     7  and maintenance, as determined by the department. For the school
     8  years 1989-1990, 1990-1991 and 1991-1992, the school district
     9  payment shall be no greater than forty percent (40%) of the
    10  actual audited costs of tuition and maintenance of such child in
    11  such school. For the 1992-1993 school year and each school year
    12  thereafter, the school district or charter school payment shall
    13  be the greater of forty percent (40%) of the actual audited
    14  costs of tuition and maintenance of such child in such school,
    15  as determined by the Department of Education, or its "tuition
    16  charge per elementary pupil" or its "tuition charge per high
    17  school pupil," as calculated pursuant to section 2561, and the
    18  Commonwealth shall pay, out of funds appropriated to the
    19  department for approved private schools, the balance due for the
    20  costs of such child's tuition and maintenance, as determined by
    21  the department. The department will credit the district of
    22  residence with average daily membership for such child
    23  consistent with the rules of procedure developed in accordance
    24  with section 2501. If the residence of such child in a
    25  particular school district cannot be determined, the
    26  Commonwealth shall pay, out of moneys appropriated to the
    27  department for special education, the whole cost of tuition and
    28  maintenance of such child. [The Department of Education shall be
    29  provided with such financial data from approved private schools
    30  as may be necessary to determine the reasonableness of costs for
    20030H0113B2814                  - 9 -     

     1  tuition and room and board concerning Pennsylvania resident
     2  approved reimbursed students. The Department of Education shall
     3  evaluate such data and shall disallow any cost deemed
     4  unreasonable. Any costs deemed unreasonable by the Department of
     5  Education for disallowance shall be considered an adjudication
     6  within the meaning of Title 2 of the Pa.C.S. (relating to
     7  administrative law and procedure) and regulations promulgated
     8  thereunder.]
     9     (b)  When any person less than school entry age or more than
    10  twenty-one (21) years of age and resident in this Commonwealth,
    11  who is blind or deaf, or has cerebral palsy and/or has
    12  neurological impairment and/or has muscular dystrophy, or has
    13  autism/pervasive developmental delay, and is enrolled, with the
    14  approval of the Department of Education, as a pupil in an
    15  approved private school approved by the Department of Education,
    16  the Commonwealth shall pay to such school, out of moneys
    17  appropriated to the department for special education, the actual
    18  audited cost of tuition and maintenance of such person, as
    19  determined by the Department of Education, subject to review and
    20  approval in accordance with standards and regulations
    21  promulgated by the State Board of Education in accordance with
    22  subsection (b.1), and in addition, in the case of any child less
    23  than school entry age, who is blind, the cost, as determined by
    24  the Department of Education of instructing the parent of such
    25  blind child in caring for such child.
    26     (b.1)  For the 2004-2005 school year and each school year
    27  thereafter, an approved private school shall submit to the
    28  Department of Education its budgeted costs for the upcoming
    29  school year. Based upon this information and the prior year's
    30  settled audit, the Department of Education shall develop an
    20030H0113B2814                 - 10 -     

     1  interim reimbursement rate for the approved private school. The
     2  Department of Education shall provide the approved private
     3  school with monthly payments in advance of the final cost
     4  settlement as provided for in subsection (c.2). The Department
     5  of Education shall adopt final reimbursement rates based on the
     6  final cost settlement. The Department of Education may withhold
     7  a portion of such payments not exceeding five percent (5%) of
     8  such payment, pending final cost settlement. In no event shall
     9  either the payments made in advance of the final cost settlement
    10  or final reimbursements based on the final cost settlement made
    11  by the Department of Education exceed the appropriation
    12  available for approved private schools.
    13     [(c)  Each approved private school, prior to the start of the
    14  school year, shall submit to the department such information as
    15  the department may require in order to establish an estimate of
    16  reimbursable costs. Based upon this information, any other data
    17  deemed necessary by the department and in accordance with
    18  department standards, the department shall develop for each
    19  approved private school an estimate of reimbursable costs. Based
    20  upon such estimate, the department shall provide each approved
    21  private school with monthly payments in advance of department
    22  audit. The department may withhold a portion of such payments
    23  not exceeding five percent (5%) of such payment, pending final
    24  audit. In no event shall either the advance payments or final
    25  reimbursement made by the department following audit exceed the
    26  appropriation available for approved private schools.]
    27     (c.1)  Any funds remaining from the appropriation line items
    28  "for special education - approved private schools" or for
    29  Pennsylvania Charter Schools for the Deaf and Blind from the
    30  general appropriations acts for fiscal years 1978-1979 and each
    20030H0113B2814                 - 11 -     

     1  fiscal year thereafter shall be transferred by the State
     2  Treasurer into a restricted account (continuing appropriation)
     3  for audit resolution which is hereby established. The Department
     4  of Education shall also deposit into this restricted account any
     5  funds returned to or recovered by the department from approved
     6  private schools or chartered schools for overpayments during
     7  fiscal years 1978-1979 and each fiscal year thereafter. The
     8  funds in the restricted account are hereby appropriated upon
     9  approval of the Governor to the Department of Education for
    10  payments to approved private schools for audit resolutions for
    11  fiscal years 1978-1979 and each fiscal year thereafter. Funds in
    12  this restricted account shall not be subject to the limitations
    13  in subsection [(c)] (b.1) which prohibit advance payments and
    14  final reimbursement from exceeding the appropriation available
    15  for approved private schools. During the 1995-1996 fiscal year
    16  and during each fiscal year thereafter, the Department of
    17  Education shall review the activity in the restricted account
    18  and may recommend that the Governor authorize the lapsing into
    19  the General Fund of any funds that are estimated not to be
    20  needed for audit resolution.
    21     (c.2)  The Department of Education shall establish procedures
    22  and audit standards to govern the scope of reportable costs, the
    23  methods used to examine costs and determine allowability and
    24  timeliness of cost reporting. For the 2004-2005 school year and
    25  each school year thereafter, cost reports shall be prepared by
    26  an approved private school and audited by the approved private
    27  school's independent public accountant. Such cost reports shall
    28  be prepared in accordance with established procedures and audit
    29  standards and delivered to the Department of Education within
    30  six (6) months after the conclusion of the school year. The
    20030H0113B2814                 - 12 -     

     1  Department of Education shall have six (6) months to process
     2  these cost reports and settle any outstanding payments due to or
     3  from the approved private school. Nothing in this subsection
     4  shall be construed to preclude the Department of Education from
     5  conducting its own audits on a periodic basis. Where the
     6  Department of Education conducts such audits, the audits must be
     7  completed within one (1) year of the cost report deadline and
     8  may not delay the allowable period for settlement of any
     9  payments due to or from the approved private school. Audits of
    10  cost reports submitted for school years prior to the 2004-2005
    11  school year shall be completed in a manner consistent with prior
    12  audit practices.
    13     (d)  No private institution receiving payment in accordance
    14  with this section shall impose any charge on the student and/or
    15  parents who are Pennsylvania approved reimbursable residents for
    16  a program of individualized instruction and maintenance
    17  appropriate to the child's needs; except that charges for
    18  services not part of such program may be made if agreed to by
    19  the parents.
    20     [(e)  (1)  The Education Committees of the Senate and House
    21  of Representatives are directed to jointly examine the issues of
    22  the funding of approved private schools and special education
    23  students' access to approved private schools as part of the full
    24  continuum of special education placements. The committees'
    25  examination should address, at a minimum, the following issues:
    26     (i)  The funding methodology which supports the school
    27  district's responsibility for individualized, appropriate
    28  educational services to special education students through
    29  access to the most comprehensive continuum of educational
    30  options and settings.
    20030H0113B2814                 - 13 -     

     1     (ii)  The role of the approved private school in the mandated
     2  continuum of special education services available to students in
     3  Pennsylvania.
     4     (iii)  The relative roles of the Department of Education and
     5  school districts to ensure free appropriate public education
     6  (FAPE) through adequate funding and appropriate distribution of
     7  comprehensive services.
     8     (iv)  The provisions of the Individuals with Disabilities
     9  Education Act (IDEA) (P.L.101-476), the Cordero Court Orders,
    10  this act and 22 Pa. Code Chs. 14 and 342 as they relate to the
    11  provision of programs and services to special education students
    12  should be carefully reviewed as they pertain to approved private
    13  schools, continuum of placement options, funding, FAPE and other
    14  pertinent issues.
    15     (2)  The committees shall report back to the General Assembly
    16  by November 15, 1993, with legislative and/or administrative
    17  recommendations. The committees may hold such meetings and
    18  hearings as they deem appropriate to accomplish the provisions
    19  of this subsection.]
    20     Section 5.  The act is amended by adding a section to read:
    21     Section 1550.  Firefighter and Emergency Service Training.--
    22  (a)  Beginning with the 2003-2004 school year and each school
    23  year thereafter, a school district may offer firefighter and
    24  emergency service training as credit-earning courses to students
    25  of the age of sixteen (16) years or older. Such courses may
    26  include:
    27     (1)  Training as a Firefighter I from the National Board on
    28  Fire Service Professional Qualifications.
    29     (2)  Training as an emergency medical technician by the
    30  Department of Health under the act of July 3, 1985 (P.L.164,
    20030H0113B2814                 - 14 -     

     1  No.45), known as the "Emergency Medical Services Act."
     2     (b)  A school district that offers firefighter and emergency
     3  service training as credit-earning courses shall provide
     4  transportation to and supervision during any firefighter and
     5  emergency service training program that takes place off school
     6  grounds. Supervision of training shall be conducted as a
     7  cooperative education program in accordance with the provisions
     8  of 22 Pa. Code § 11.28 (relating to out-of-school programs).
     9     Section 6.  Section 1501-C of the act, amended June 29, 2002
    10  (P.L.524, No.88), is reenacted to read:
    11  Section 1501-C.  Definitions.
    12     The following words and phrases when used in this article
    13  shall have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Department."  The Department of Education of the
    16  Commonwealth.
    17     "Eligible student."  A resident of this Commonwealth who is
    18  enrolled in third, fourth, fifth or sixth grade in a school
    19  entity and is deemed eligible pursuant to section 1502-C(b).
    20     "Eligibility test."  The Pennsylvania System of School
    21  Assessment or a commercially prepared, standardized achievement
    22  test approved by the Department of Education. A list of approved
    23  tests under this article shall be published annually in the
    24  Pennsylvania Bulletin.
    25     "Grant."  A grant awarded to a grant recipient under this
    26  article.
    27     "Grant recipient."  A resident of this Commonwealth who is a
    28  parent, guardian or person in parental relation to an eligible
    29  student.
    30     "Program."  The Education Support Services Program
    20030H0113B2814                 - 15 -     

     1  established in section 1502-C.
     2     "Provider."  A school entity, an institution of higher
     3  education, a nonprofit or for-profit organization or a certified
     4  teacher employed by a school entity, that is approved by the
     5  Department of Education to provide education support services.
     6     "School entity."  Any of the following located in this
     7  Commonwealth: a school district, intermediate unit, joint school
     8  district, area vocational-technical school, charter school,
     9  independent school, licensed private academic school, accredited
    10  school, a school registered under section 1327(b), the Scotland
    11  School for Veterans' Children or the Scranton School for the
    12  Deaf.
    13     Section 7.  Sections 1502-C, 1503-C and 1504-C, of the act,
    14  added May 17, 2001 (P.L.4, No.4), are reenacted to read:
    15  Section 1502-C.  Establishment of program.
    16     (a)  Establishment.--The Education Support Services Program
    17  is established within the department to provide individual or
    18  small group instruction in reading and mathematics to strengthen
    19  the skills that an eligible student needs to achieve the
    20  standards in 22 Pa. Code Ch. 4 (relating to academic standards
    21  and assessment), which shall be provided at a time other than
    22  the regularly scheduled school hours.
    23     (b)  Eligibility.--The department shall utilize the
    24  Pennsylvania System of School Assessment test or other test
    25  results to identify eligible students under this article. Scores
    26  used to determine eligible students in each grade shall be
    27  published annually in the Pennsylvania Bulletin.
    28     (c)  Approval.--A provider must be approved by the department
    29  in order to provide education support services under this
    30  article.
    20030H0113B2814                 - 16 -     

     1  Section 1503-C.  Application and approval.
     2     (a)  Application.--A prospective grant recipient shall apply
     3  annually to the department for a grant to purchase education
     4  support services for an eligible student from an approved
     5  provider in a time and manner prescribed by the department.
     6     (b)  Required information.--An application submitted under
     7  this section shall include verification of the eligibility test
     8  results and such other information as the department may
     9  require.
    10  Section 1504-C.  Powers and duties of the department.
    11     The department shall:
    12         (1)  Establish criteria to annually identify eligible
    13     students in grades three, four, five and six to participate
    14     in the program under section 1502-C.
    15         (2)  Approve providers of education support services.
    16         (3)  Adopt standards, procedures and guidelines to be
    17     used to approve providers of education support services under
    18     this article.
    19         (4)  Award grants to a grant recipient in an amount not
    20     to exceed $500 per fiscal year for each eligible student.
    21         (5)  Establish minimum qualifications for individuals
    22     utilized by providers of education support services.
    23         (6)  Establish periods during which applications will be
    24     reviewed to accommodate the dates when results of approved
    25     eligibility tests become available.
    26     Section 8.  Section 1505-C of the act, amended June 29, 2002
    27  (P.L.524, No.88), is reenacted to read:
    28  Section 1505-C.  Providers.
    29     A prospective provider shall submit an application to the
    30  department for approval to provide education support services
    20030H0113B2814                 - 17 -     

     1  under this article. The application shall include a description
     2  of the services to be provided, the cost of the services, the
     3  qualification of all individuals providing those services,
     4  including evidence of compliance with section 111 and with 23
     5  Pa.C.S. § 6355 (relating to requirement), and such other
     6  information as may be required by the department.
     7     Section 9.  Sections 1506-C, 1507-C, 1508-C, 1509-C, 1510-C
     8  and 1511-C of the act, added May 17, 2001 (P.L.4, No.4), are
     9  reenacted to read:
    10  Section 1506-C.  Notification of program.
    11     A school entity in this Commonwealth with students enrolled
    12  in third, fourth, fifth or sixth grade shall notify parents of
    13  the availability of education support services at such time as
    14  the parents receive the results of any eligibility test.
    15  Section 1507-C.  Payment of grants.
    16     (a)  Certificates.--A certificate for education support
    17  services under this article shall be issued by the department in
    18  an amount authorizing up to $500 for each eligible student
    19  identified on the certificate. The certificate shall be issued
    20  to the grant recipient and shall be valid only for the fiscal
    21  year in which it is issued. After receiving the certificate from
    22  a grant recipient, the provider shall include the following
    23  information on the certificate: name of eligible student served,
    24  type of instruction, date and length of instruction and cost of
    25  instruction provided to the eligible student. When the amount of
    26  the certificate has been utilized or when the eligible student
    27  is no longer receiving education support services from the
    28  provider, the provider shall return the completed certificate to
    29  the grant recipient for submission to the department for
    30  payment. The department shall make payment directly to the grant
    20030H0113B2814                 - 18 -     

     1  recipient for the amount due. Grant recipients must send all
     2  outstanding certificates to the department for payment no later
     3  than 90 days after receiving the completed certificate from the
     4  provider.
     5     (b)  Penalty for grant recipients.--A grant recipient who
     6  knowingly defrauds the Commonwealth by receiving reimbursement
     7  for education support services not rendered to the eligible
     8  student and grant recipient identified on the certificate
     9  commits a misdemeanor of the third degree and shall, upon
    10  conviction, be sentenced to pay a fine of not more than $1,000
    11  per violation and shall be disqualified from eligibility for an
    12  additional grant for a period of not less than five years.
    13     (c)  Penalty for providers.--A provider that knowingly
    14  violates section 1509-C or knowingly defrauds the Commonwealth
    15  by receiving reimbursement for education support services not
    16  rendered to the eligible student and grant recipient identified
    17  on the certificate commits a misdemeanor of the third degree and
    18  shall, upon conviction, be sentenced to pay a fine of not more
    19  than $1,000 per violation and shall be barred from participation
    20  in the program for not less than five years.
    21  Section 1508-C.  Limitations.
    22     (a)  Amount.--The amount of grants provided under this
    23  article in a fiscal year shall be limited to the funds
    24  appropriated for that purpose. No more than 10% of the total
    25  funds appropriated for this program in any fiscal year shall be
    26  awarded to grant recipients within a specific school district
    27  except that, if the department determines that all school
    28  entities in the Commonwealth have had an opportunity to
    29  participate in the program and that funds remain available, it
    30  may waive the 10% limitation under this subsection.
    20030H0113B2814                 - 19 -     

     1     (b)  Availability of funds.--In the event that the funds
     2  appropriated in any fiscal year are insufficient to provide
     3  grants to all grant recipients, grants shall be awarded on a
     4  first-come, first-served basis. The department shall hold a
     5  portion of the funds in reserve to ensure that money is
     6  available for each application period established under section
     7  1504-C(6).
     8  Section 1509-C.  Confidentiality.
     9     Nothing in this article shall authorize the department, a
    10  school entity or a provider to release or otherwise utilize
    11  student identifiable information or individual student test
    12  scores for purposes other than the administration of this
    13  article.
    14  Section 1510-C.  Nontaxable income.
    15     A grant received by a grant recipient shall not be considered
    16  to be taxable income for the purposes of Article III of the act
    17  of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
    18  1971.
    19  Section 1511-C.  Applicability.
    20     Services provided under this article do not constitute
    21  tutoring or instruction under the act of January 28, 1988
    22  (P.L.24, No.11), known as the Private Academic Schools Act.
    23     Section 10.  Section 1705-B(h)(4) of the act, amended June
    24  29, 2002 (P.L.524, No.88) and December 9, 2002 (P.L.1472,
    25  No.187), is amended to read:
    26     Section 1705-B.  Education Empowerment Districts.--* * *
    27     (h)  * * *
    28     (4)  The department may utilize up to $2,000,000 of
    29  undistributed funds not expended, encumbered or committed from
    30  appropriations for grants and subsidies made to the department
    20030H0113B2814                 - 20 -     

     1  to assist school districts certified as an education empowerment
     2  district under paragraph (3). There is hereby established a
     3  restricted account from which payments under this paragraph
     4  shall be paid. Funds shall be transferred by the Secretary of
     5  the Budget to the restricted account to the extent necessary to
     6  make payments under this paragraph. Funds in the restricted
     7  account are hereby appropriated to carry out the purposes of
     8  this paragraph. The subsidy payment from this account shall be
     9  utilized to supplement the operational budget of the eligible
    10  school districts. This paragraph shall apply to fiscal years
    11  2000-2001, 2001-2002 [and], 2002-2003 and 2003-2004 and shall
    12  expire June 30, [2003] 2004.
    13     Section 11.  Section 1709-B of the act, added May 10, 2000
    14  (P.L.44, No.16), is reenacted to read:
    15     Section 1709-B.  School Improvement Grants.--(a)  The
    16  department shall establish a program of annual school
    17  improvement grants for school districts on the education
    18  empowerment list or certified as an education empowerment
    19  district to assist in the implementation of their school
    20  district improvement plans.
    21     (b)  Grants shall be limited to the amount appropriated for
    22  that purpose.
    23     (c)  Grants shall be provided annually to the school district
    24  for use as directed by the school district empowerment team or
    25  the board of control in implementing the school district
    26  improvement plan developed pursuant to sections 1703-B and 1706-
    27  B as follows:
    28     (1)  To purchase instructional materials, including
    29  textbooks, technology and related educational materials and
    30  supplies.
    20030H0113B2814                 - 21 -     

     1     (2)  To reduce class size in kindergarten through grade
     2  three.
     3     (3)  To establish after-school, summer and weekend programs.
     4     (4)  To establish or expand full-day kindergarten program.
     5     (5)  To fund curriculum development.
     6     (6)  To fund enhanced staff professional development.
     7     (7)  To fund any other program contained in the school
     8  district improvement plan.
     9     (d)  Subject to the requirements of this section, each
    10  qualifying school district shall receive a base annual grant of
    11  four hundred fifty thousand dollars ($450,000) and an additional
    12  grant of up to seventy-five dollars ($75) per average daily
    13  membership for the prior school year of the school district. The
    14  school district or the board of control shall give priority in
    15  allocating the grant funding received under this section to the
    16  individual schools identified pursuant to sections 1703-B(b) and
    17  1706-B(b).
    18     (e)  The department shall set forth the specific allowable
    19  uses for grant funds and place conditions, as necessary, on the
    20  use of grant funds. The department shall establish
    21  accountability procedures and auditing guidelines to ensure that
    22  grant funds are utilized in accordance with the allowable uses
    23  and conditions.
    24     (f)  A school district receiving a grant under this section
    25  shall be required to maintain separate accounts in that school
    26  district's budget to facilitate monitoring the use of these
    27  grant funds. In no case shall a school district use more than
    28  five per centum of the grant funds for administrative costs.
    29     (g)  The department shall reduce the amount of a State
    30  subsidy payment to a school district by the amount of any grant
    20030H0113B2814                 - 22 -     

     1  funds provided under this section if the school district does
     2  not use the grant funds in accordance with the allowable uses
     3  and conditions set forth by the department.
     4     Section 12.  Section 1714-B(g) of the act, added May 10, 2000
     5  (P.L.44, No.16), is amended to read:
     6     Section 1714-B.  Mandate Waiver Program.--* * *
     7     (g)  The following provisions of this act shall not be
     8  subject to waiver pursuant to this section: sections 108, 110,
     9  111, 321, 322, 323, 324, 325, 326, 327, 431, 436, 437, 440.1,
    10  443, 510, 513, 518, 527, 687, 688, 701.1, 708, 736, 737, 738,
    11  739, 740, 741, 752, 753, 755, 771, 776, 777, 808, 809, 810,
    12  1303(a), 1310, 1317, 1317.1, 1317.2, 1318, 1327, 1327.1, 1330,
    13  1332, 1361, 1366, 1501, 1502, 1513, 1517, 1518, 1521, 1523, 1546
    14  and 1547; provisions prohibiting discrimination; Articles VI,
    15  XI, XI-A, XII, XIII-A, XIV and XVII-A and this article.
    16     * * *
    17     Section 13.  The definition of "educational improvement
    18  organization" and "scholarship organization" in section 2002-B
    19  of the act, added May 17, 2001 (P.L.4, No.4), are amended to
    20  read:
    21  Section 2002-B.  Definitions.
    22     The following words and phrases when used in this article
    23  shall have the meanings given to them in this section unless the
    24  context clearly indicates otherwise:
    25     * * *
    26     "Educational improvement organization."  A nonprofit entity
    27  which:
    28         (1)  is exempt from Federal taxation under section
    29     501(c)(3) of the Internal Revenue Code of 1986 (Public Law
    30     99-514, 26 U.S.C. § 1 et seq.); and
    20030H0113B2814                 - 23 -     

     1         (2)  contributes at least 80% of its annual receipts as
     2     grants to a public school for innovative educational
     3     programs.
     4  For purposes of this definition, a nonprofit entity
     5  "contributes" its annual cash receipts when it expends or
     6  otherwise irrevocably encumbers those funds for expenditure
     7  during the then current fiscal year of the nonprofit entity or
     8  during the next succeeding fiscal year of the nonprofit entity.
     9     * * *
    10     "Scholarship organization."  A nonprofit entity which:
    11         (1)  is exempt from Federal taxation under section
    12     501(c)(3) of the Internal Revenue Code of 1986 (Public Law
    13     99-514, 26 U.S.C. § 1 et seq.); and
    14         (2)  contributes at least 80% of its annual cash receipts
    15     to a scholarship program.
    16  For purposes of this definition, a nonprofit entity
    17  "contributes" its annual cash receipts to a scholarship program
    18  when it expends or otherwise irrevocably encumbers those funds
    19  for distribution during the then current fiscal year of the
    20  nonprofit entity or during the next succeeding fiscal year of
    21  the nonprofit entity.
    22     * * *
    23     Section 14.  Section 2502.8 of the act, amended June 22, 2001
    24  (P.L.530, No. 35), is reenacted to read:
    25     Section 2502.8.  Payments on Account of Pupils Enrolled in
    26  Vocational Curriculums.--(a)  For the purpose of reimbursement
    27  in accordance with this section, vocational curriculums are
    28  agriculture education, distributive education, health
    29  occupations education, home economics education (gainful),
    30  business education, technical education, trade and industrial
    20030H0113B2814                 - 24 -     

     1  education, or any other occupational oriented program approved
     2  by the Secretary of Education.
     3     (b)  For the 1981-1982 school year through the 1984-1985
     4  school year, each school district so entitled shall be paid, in
     5  addition to any other subsidy to which it is entitled, an amount
     6  on account of resident pupils enrolled in vocational
     7  curriculums; for the 1985-1986 school year through the 1999-2000
     8  school year, each school district and area vocational-technical
     9  school shall be paid an amount on account of students enrolled
    10  in vocational curriculums; for the 2000-2001 school year and
    11  each school year thereafter, each school district, area
    12  vocational-technical school and charter school shall be paid an
    13  amount on account of students enrolled in vocational
    14  curriculums, determined as follows:
    15     (1)  Determine the increase in the weighted average daily
    16  membership by multiplying the number of students in average
    17  daily membership in vocational curriculums in area vocational-
    18  technical schools by twenty-one hundredths (.21) and the number
    19  of students in average daily membership in school district and
    20  charter school vocational curriculums by seventeen hundredths
    21  (.17).
    22     (2)  Multiply the lesser of the district's actual instruction
    23  expense per weighted average daily membership or the base earned
    24  for reimbursement by the market value/income aid ratio or by
    25  three hundred seventy-five thousandths (.375), whichever is
    26  greater.
    27     (3)  Multiply the increase in weighted average daily
    28  membership determined in clause (1) by the result of clause (2).
    29     (4)  For the 1985-1986 through 1999-2000 school years, the
    30  Commonwealth shall pay the amount required by this section to
    20030H0113B2814                 - 25 -     

     1  the school district or area vocational-technical school which
     2  provides the program upon which reimbursement is based.
     3     (5)  For the 2000-2001 school year and each school year
     4  thereafter, the Commonwealth shall pay the amount required under
     5  this section to the school district, area vocational-technical
     6  school or charter school which provides the programs upon which
     7  reimbursement is based.
     8     (c)  For the school year 1998-1999, any additional funding
     9  provided by the Commonwealth over the amount provided for the
    10  school year 1997-1998 will be distributed to area vocational-
    11  technical schools and to school districts with eight (8) or more
    12  vocational programs based on subsection (b).
    13     (d)  For the school year 1999-2000, any additional funding
    14  provided by the Commonwealth over the amount provided for the
    15  school year 1998-1999 will be distributed to area vocational-
    16  technical schools, to school districts with eight (8) or more
    17  vocational programs and to school districts offering a
    18  vocational agricultural education program, based on subsection
    19  (b).
    20     (e)  For the school year 2000-2001 and each school year
    21  thereafter, any additional funding provided by the Commonwealth
    22  over the amount provided for the school year 1998-1999 will be
    23  distributed to area vocational-technical schools, to school
    24  districts and charter schools with eight (8) or more vocational
    25  programs and to school districts and charter schools offering a
    26  vocational agricultural education program based on subsection
    27  (b).
    28     Section 15.  Section 2502.13 of the act, amended June 29,
    29  2002 (P.L.524, No.88), is amended to read:
    30     Section 2502.13.  Small District Assistance.--For the 1984-
    20030H0113B2814                 - 26 -     

     1  1985 and 1985-1986 school years, the Commonwealth shall pay to
     2  each school district which has an average daily membership of
     3  one thousand five hundred (1,500) or less and has a market
     4  value/income aid ratio of five thousand ten-thousandths (0.5000)
     5  or greater, an amount equal to fifty dollars ($50) multiplied by
     6  that district's average daily membership. For the 1985-1986
     7  school year, no school district shall receive less on account of
     8  this section than it did for the 1984-1985 school year. For the
     9  school year 1986-1987, the Commonwealth shall pay to each school
    10  district which has an average daily membership of one thousand
    11  five hundred (1,500) or less and has a market value/income aid
    12  ratio of five thousand ten-thousandths (0.5000) or greater, or
    13  received payments under this section for the 1985-1986 school
    14  year, an amount equal to seventy-five dollars ($75) multiplied
    15  by that district's average daily membership. For the school year
    16  1987-1988, the Commonwealth shall pay to each school district
    17  which has an average daily membership of one thousand five
    18  hundred (1,500) or less and a market value/income aid ratio of
    19  five thousand ten-thousandths (0.5000) or greater, or received
    20  payments under this section for the 1986-1987 school year, an
    21  amount equal to eighty-five dollars ($85) multiplied by that
    22  district's average daily membership. For the school year 1988-
    23  1989, the Commonwealth shall pay to each school district which
    24  has an average daily membership of one thousand five hundred
    25  (1,500) or less and a market value/income aid ratio of five
    26  thousand ten thousandths (0.5000) or greater, or received
    27  payments under this section for the 1987-1988 or 1988-1989
    28  school year, an amount equal to one hundred five dollars ($105).
    29  For the school year 1989-1990, the Commonwealth shall pay to
    30  each school district which has an average daily membership of
    20030H0113B2814                 - 27 -     

     1  one thousand five hundred (1,500) or less and a market
     2  value/income aid ratio of five thousand ten-thousandths (0.5000)
     3  or greater, or received payments under this section for the
     4  1987-1988 school year, an amount equal to one hundred fifteen
     5  dollars ($115) multiplied by the district's average daily
     6  membership as provided for in section 212 of the act of July 1,
     7  1990 (P.L.1591, No.7A), known as the "General Appropriation Act
     8  of 1990." For the school year 1990-1991, the Commonwealth shall
     9  pay to each school district which has an average daily
    10  membership of one thousand five hundred (1,500) or less and a
    11  market value/income aid ratio of five thousand ten-thousandths
    12  (0.5000) or greater, or received payments under this section for
    13  the prior school year, an amount equal to one hundred seventy
    14  dollars ($170) multiplied by that district's average daily
    15  membership. For the school year 1990-1991, each school district
    16  with a population per square mile of less than ninety (90),
    17  which otherwise meets the average daily membership and market
    18  value/income aid ratio requirements of this section, or received
    19  payments under this section for the prior school year, shall
    20  instead receive an amount equal to one hundred ninety dollars
    21  ($190) multiplied by that district's average daily membership.
    22  For the 1987-1988 school year through the 1990-1991 school year,
    23  no school district shall receive less on account of this section
    24  than it did for the prior school year. For the school year 1994-
    25  1995, the Commonwealth shall pay to each school district which
    26  has an average daily membership of one thousand five hundred
    27  (1,500) or less and a market value/income aid ratio of five
    28  thousand ten-thousandths (0.5000) or greater, an amount equal to
    29  ninety five dollars ($95) multiplied by that district's average
    30  daily membership. For each of the school years 1997-1998 through
    20030H0113B2814                 - 28 -     

     1  1999-2000, the Commonwealth shall pay to each school district
     2  which has an average daily membership of one thousand five
     3  hundred (1,500) or less and a market value/income aid ratio of
     4  five thousand ten-thousandths (0.5000) or greater an amount
     5  equal to seventy-five dollars ($75) multiplied by that
     6  district's average daily membership. For the school years 2000-
     7  2001 [and], 2001-2002 and 2002-2003, the Commonwealth shall pay
     8  to each school district which has an average daily membership of
     9  one thousand five hundred (1,500) or less an amount equal to
    10  seventy-five dollars ($75) multiplied by that district's average
    11  daily membership.
    12     Section 16.  The act is amended by adding a section to read:
    13     Section 2502.41.  Basic Education Funding for 2002-2003
    14  School Year.--For the 2002-2003 school year, the Commonwealth
    15  shall pay to each school district a basic education funding
    16  allocation which shall consist of the following:
    17     (1)  An amount equal to the basic education funding
    18  allocation for the 2001-2002 school year pursuant to sections
    19  2502.13 and 2502.40.
    20     (2)  A base supplement calculated as follows:
    21     (i)  Multiply the school district's 2003-2004 market
    22  value/income aid ratio by its 2002-2003 average daily
    23  membership.
    24     (ii)  Multiply the product from subparagraph (i) by fifty
    25  million dollars ($50,000,000).
    26     (iii)  Divide the product from subparagraph (ii) by the sum
    27  of the products of the 2003-2004 market value/income aid ratio
    28  multiplied by the 2002-2003 average daily membership for all
    29  school districts.
    30     (3)  A poverty supplement calculated for qualifying school
    20030H0113B2814                 - 29 -     

     1  districts as follows:
     2     (i)  To qualify for the poverty supplement, a school
     3  district's 2003-2004 market value/income aid ratio shall be
     4  equal to or greater than 0.6500 and its personal income
     5  valuation when divided by its 2002-2003 average daily membership
     6  shall be equal to or less than one hundred three thousand five
     7  hundred seventy-one dollars ($103,571).
     8     (ii)  The poverty supplement shall be calculated for
     9  qualifying school districts as follows:
    10     (A)  Multiply the school district's 2002-2003 average daily
    11  membership by thirty million dollars ($30,000,000).
    12     (B)  Divide the product from clause (A) by the sum of the
    13  2002-2003 average daily membership for all qualifying school
    14  districts.
    15     (4)  A tax effort supplement calculated for qualifying school
    16  districts as follows:
    17     (i)  To qualify for the tax effort supplement, a school
    18  district's 2001 equalized millage must be equal to or greater
    19  than 20.6 equalized mills.
    20     (ii)  The tax effort supplement shall be calculated for
    21  qualifying school districts as follows:
    22     (A)  Multiply the school district's 2002-2003 average daily
    23  membership by fifteen million dollars ($15,000,000).
    24     (B)  Divide the product from clause (A) by the sum of the
    25  2002-2003 average daily membership for all qualifying school
    26  districts.
    27     (5)  A growth supplement calculated for qualifying school
    28  districts as follows:
    29     (i)  To qualify for the growth supplement, a school
    30  district's 2002-2003 average daily membership must be greater
    20030H0113B2814                 - 30 -     

     1  than its 2001-2002 average daily membership.
     2     (ii)  The growth supplement shall be calculated for
     3  qualifying school districts as follows:
     4     (A)  Subtract the school district's 2001-2002 average daily
     5  membership from its 2002-2003 average daily membership.
     6     (B)  Multiply the difference from clause (A) by five million
     7  dollars ($5,000,000).
     8     (C)  Divide the product from clause (B) by the sum of the
     9  differences from clause (A) for all qualifying school districts.
    10     (6)  Each school district shall receive additional funding as
    11  necessary so that the sum of the amounts under section 2502.13
    12  and under paragraphs (2), (3), (4), (5) and this paragraph will
    13  equal at least two percent (2%) of the amount in paragraph (1).
    14     Section 17.  Sections 2509.1 and 2509.5 of the act are
    15  amended by adding subsections to read:
    16     Section 2509.1.  Payments to Intermediate Units.--* * *
    17     (b.11)  Up to nine million five hundred thousand dollars
    18  ($9,500,000) may be utilized for programs administered and
    19  operated by intermediate units during the 2003-2004 school year
    20  for institutionalized children as established in subsection
    21  (b.1).
    22     * * *
    23     Section 2509.5.  Special Education Payments to School
    24  Districts.--* * *
    25     (ll)  During the 2003-2004 school year, each school district
    26  shall be paid the amount it received during the 2002-2003 school
    27  year under subsection (kk).
    28     (mm)  During the 2003-2004 school year, thirty-six million
    29  one hundred forty-nine thousand five hundred eighty-seven
    30  dollars ($36,149,587) of the funds appropriated to the
    20030H0113B2814                 - 31 -     

     1  Department of Education for special education shall be used to
     2  provide supplemental funding for special education to all school
     3  districts. The supplemental funding shall be calculated as
     4  follows:
     5     (1)  multiply each school district's 2003-2004 market
     6  value/income aid ratio by sixteen per centum (16%) of its 2002-
     7  2003 average daily membership;
     8     (2)  multiply the product from paragraph (1) by thirty-six
     9  million one hundred forty-nine thousand five hundred eighty-
    10  seven dollars ($36,149,587); and
    11     (3)  divide the resultant product from paragraph (2) by the
    12  sum of the products of the 2003-2004 market value/income aid
    13  ratio multiplied by sixteen per centum (16%) of the 2002-2003
    14  average daily membership for all school districts.
    15     Section 18.  Section 2591.1 of the act, added June 29, 2002
    16  (P.L.524, No.88), is amended to read:
    17     Section 2591.1.  Commonwealth Reimbursements for Charter
    18  Schools and Cyber Charter Schools.--(a)  For the 2001-2002
    19  school year, the Commonwealth shall pay to each school district
    20  with resident students enrolled in a charter school, a charter
    21  school approved under section 1717-A or 1718-A which provides
    22  instruction through the Internet or other electronic means or a
    23  cyber charter school as defined pursuant to Article XVII-A an
    24  amount equal to thirty percent (30%) of the total funding
    25  required under section 1725-A(a). If insufficient funds are
    26  appropriated to make Commonwealth reimbursements under this
    27  section, the reimbursements shall be made on a pro rata basis.
    28     (b)  For the 2002-2003 school year, the Commonwealth shall
    29  pay to each school district that received funding under
    30  subsection (a) for the 2001-2002 school year and that had
    20030H0113B2814                 - 32 -     

     1  resident students enrolled in a charter school, a charter school
     2  approved under section 1717-A or 1718-A which provides
     3  instruction through the Internet or other electronic means or a
     4  cyber charter school as defined under Article XVII-A during the
     5  2002-2003 school year an amount equal to the lesser of:
     6     (1)  the payment received for the 2001-2002 school year
     7  pursuant to subsection (a); or
     8     (2)  thirty percent (30%) of the total funding required under
     9  section 1725-A(a).
    10     (c)  For the 2002-2003 school year, the Commonwealth shall
    11  pay to each school district that did not receive funding under
    12  subsection (a) for the 2001-2002 school year and that had
    13  resident students enrolled in a charter school, a charter school
    14  approved under section 1717-A or 1718-A which provides
    15  instruction through the Internet or other electronic means or a
    16  cyber charter school as defined under Article XVII-A during the
    17  2002-2003 school year an amount equal to thirty percent (30%) of
    18  the total funding required under section 1725-A(a).
    19     Section 19.  The following amounts are hereby appropriated
    20  from the General Fund to the Department of Education for the
    21  fiscal period July 1, 2003, to June 30, 2004, as follows:
    22         (1)  The sum of $25,000,000 is hereby appropriated for
    23     payments to any school district of the first class which has
    24     been declared distressed pursuant to section 691(c) of the
    25     act of March 10, 1949 (P.L.30, No.14), known as the Public
    26     School Code of 1949, provided that such school district
    27     submits a quarterly itemization of all Federal, State and
    28     local funds distributed to each school in the school
    29     district, including schools governed by agreements currently
    30     in effect pursuant to section 696(i)(2) of the Public School
    20030H0113B2814                 - 33 -     

     1     Code of 1949 and schools designated as partnership schools
     2     under the School Reform Commission Resolution Number 10 of
     3     April 17, 2002, to the Department of Education and to the
     4     chairman and minority chairman of the Education Committee of
     5     the Senate and to the chairman and minority chairman of the
     6     Education Committee of the House of Representatives. If the
     7     Department of Education determines that the report is not
     8     being submitted in accordance with the requirements of this
     9     paragraph, the Department of Education shall withhold from
    10     any and all payments to which that school district of the
    11     first class may be entitled under the act an amount equal to
    12     the funds received from this appropriation.
    13         (2)  The sum of $56,762,000 is hereby appropriated for
    14     payments on account of vocational education as provided for
    15     under section 2502.8 of the Public School Code of 1949,
    16     provided that any amounts expended by the Department of
    17     Education pursuant to the former State appropriation in the
    18     amount of $55,378,000 for vocational education under section
    19     212 of the act of March 20, 2003 (P.L.   , No.1A), known as
    20     the General Appropriation Act of 2003, shall be deducted from
    21     the sum appropriated in this paragraph.
    22         (3)  The sum of $896,177,000 is hereby appropriated for
    23     payments on account of special education of exceptional
    24     children, provided that this amount includes $563,000 for
    25     community support services which is not to be included in the
    26     base calculations of the special education program
    27     components, and provided further that this amount includes
    28     $500,000 for payments to Pennsylvania charter schools for the
    29     deaf and blind, and provided further that this amount
    30     includes $500,000 for special education-approved private
    20030H0113B2814                 - 34 -     

     1     schools, and provided further that any amounts expended by
     2     the Department of Education pursuant to the former State
     3     appropriation in the amount of $874,319,000 for payments on
     4     account of special education of exceptional children under
     5     section 212 of the General Appropriation Act of 2003 shall be
     6     deducted from the sum appropriated in this paragraph.
     7         (4)  The sum of $4,204,406,906 is hereby appropriated for
     8     basic education funding to school districts, provided that
     9     the Secretary of Education, with the approval of the
    10     Governor, may make payments from this appropriation in
    11     advance of the due date prescribed by law to school districts
    12     which are financially handicapped whenever the Secretary of
    13     Education shall deem it necessary to make such advance
    14     payments to enable the school districts to keep their schools
    15     open.
    16         (5)  The sum of $25,380,000 is hereby appropriated for
    17     school improvement grants as provided for under section 1709-
    18     B of the Public School Code of 1949.
    19         (6)  The sum of $15,000,000 is hereby appropriated for
    20     education support services as provided for under Article XV-C
    21     of the Public School Code of 1949.
    22         (7)  The sum of $73,991,328 is hereby appropriated for
    23     services to nonpublic schools as provided under section
    24     922.1-A of the Public School Code of 1949, provided that any
    25     amounts expended by the Department of Education pursuant to
    26     the former State appropriation in the amount of $71,976,000
    27     for services to nonpublic schools under section 212 of the
    28     General Appropriation Act of 2003, shall be deducted from the
    29     sum appropriated in this paragraph.
    30     Section 20.  The following acts and parts of acts are
    20030H0113B2814                 - 35 -     

     1  repealed to the extent specified:
     2     Section 2509.8 of the act of March 10, 1949 (P.L.30, No.14),
     3  known as the Public School Code of 1949.
     4     As much as relates to the State appropriations in the amount
     5  of $55,378,000 for vocational education and in the amount of
     6  $874,319,000 for payments on account of special education of
     7  exceptional children, and in the amount of $71,976,000 for
     8  services to nonpublic schools in section 212 of the act of March
     9  20, 2003 (P.L.   , No.1A), known as the General Appropriation
    10  Act of 2003.
    11     Section 21.  This act shall take effect July 1, 2003, or
    12  immediately, whichever is later.
    13     SECTION 1.  SECTION 102 OF THE ACT OF MARCH 10, 1949 (P.L.30,  <--
    14  NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, IS AMENDED TO
    15  READ:
    16     SECTION 102.  DEFINITIONS.--WHEN USED IN THIS ACT THE
    17  FOLLOWING WORDS AND PHRASES SHALL HAVE THE FOLLOWING MEANINGS:
    18     [(1)  "BOARD OF SCHOOL DIRECTORS" SHALL INCLUDE THE BOARD OF
    19  PUBLIC EDUCATION IN SCHOOL DISTRICTS OF THE FIRST CLASS, EXCEPT
    20  WHERE SPECIFICALLY LIMITED TO SCHOOL DISTRICTS OF OTHER CLASSES.
    21     (2)  "SCHOOL DISTRICT" SHALL INCLUDE SCHOOL DISTRICTS OF ALL
    22  CLASSES, EXCEPT WHERE SPECIFICALLY LIMITED TO DISTRICTS OF A
    23  PARTICULAR CLASS OR CLASSES.
    24     (3)  "SCHOOL TERM" SHALL MEAN THE PERIOD OF TIME ELAPSING
    25  BETWEEN THE OPENING OF THE PUBLIC SCHOOLS IN THE FALL OF ONE
    26  YEAR AND THE CLOSING OF THE PUBLIC SCHOOLS IN THE SPRING OF THE
    27  FOLLOWING YEAR.
    28     (4)  "SCHOOL YEAR" SHALL MEAN THE PERIOD OF TIME ELAPSING IN
    29  SCHOOL DISTRICTS OF THE FIRST CLASS BETWEEN THE FIRST DAY OF
    30  JANUARY AND THE THIRTY-FIRST DAY OF DECEMBER OF ANY YEAR, AND IN
    20030H0113B2814                 - 36 -     

     1  SCHOOL DISTRICTS OF ALL OTHER CLASSES BETWEEN THE FIRST DAY OF
     2  JULY OF ONE YEAR AND THE THIRTIETH DAY OF JUNE OF THE FOLLOWING
     3  YEAR. EFFECTIVE JULY 1, 1997, FOR THE 1997-1998 SCHOOL YEAR AND
     4  EACH SCHOOL YEAR THEREAFTER, SCHOOL DISTRICTS WITH A YEAR-ROUND
     5  EDUCATION PROGRAM MAY SUBMIT A REQUEST TO THE SECRETARY OF
     6  EDUCATION FOR APPROVAL OR DISAPPROVAL TO EXTEND THE SCHOOL YEAR
     7  UNTIL AUGUST 15 FOR THE PURPOSE OF DETERMINING AVERAGE DAILY
     8  MEMBERSHIPS FOR STUDENTS WHOSE ONE HUNDRED EIGHTY (180) DAYS OF
     9  INSTRUCTION CONTINUE INTO THE SUMMER MONTHS.
    10     (5)  "OFFICIAL VISITOR" SHALL INCLUDE THE GOVERNOR,
    11  LIEUTENANT GOVERNOR, MEMBERS OF THE SENATE AND THE HOUSE OF
    12  REPRESENTATIVES, THE SECRETARY OF EDUCATION AND MEMBERS OF THE
    13  STATE BOARD OF EDUCATION. ((5) ADDED MAY 11, 1982, P.L.396,
    14  NO.115)
    15     (6)  "PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TEST" OR "PSSA
    16  TEST" SHALL MEAN A TEST DEVELOPED AND IMPLEMENTED BY THE
    17  DEPARTMENT OF EDUCATION TO DETERMINE ONLY ACADEMIC ACHIEVEMENT
    18  RELATING TO OBJECTIVE ACADEMIC STANDARDS IN THE AREAS OF
    19  READING, WRITING, MATHEMATICS AND SCIENCE. THE PSSA TEST SHALL
    20  BE DEVELOPED AND IMPLEMENTED AS NECESSARY TO COMPLY WITH FEDERAL
    21  LAW.]
    22     "ACADEMIC PERFORMANCE TARGET."  A PERCENTAGE OF STUDENTS IN A
    23  SCHOOL OR SCHOOL DISTRICT REQUIRED TO SCORE AT A LEVEL EQUAL TO
    24  OR ABOVE PROFICIENT IN THOSE SUBJECT AREAS ASSESSED THROUGH A
    25  PSSA TEST AND REQUIRED UNDER THE NO CHILD LEFT BEHIND ACT OF
    26  2001 (PUBLIC LAW 107-110, 115 STAT. 1425) IN ORDER TO ACHIEVE
    27  ADEQUATE YEARLY PROGRESS PURSUANT TO 22 PA.CODE § 403.3
    28  (RELATING TO SINGLE ACCOUNTABILITY SYSTEM).
    29     "ADEQUATE YEARLY PROGRESS" OR "AYP."  ADEQUATE YEARLY
    30  PROGRESS AS DEFINED BY SECTION 1111(B)(2)(C) OF THE NO CHILD
    20030H0113B2814                 - 37 -     

     1  LEFT BEHIND ACT OF 2001 (PUBLIC LAW 107-110, 115 STAT. 1425) AND
     2  IN 22 PA. CODE §§ 403.2 (RELATING TO DEFINITIONS) AND 403.3
     3  (RELATING TO SINGLE ACCOUNTABILITY SYSTEM).
     4     "BOARD OF SCHOOL DIRECTORS."  INCLUDES THE BOARD OF PUBLIC
     5  EDUCATION IN SCHOOL DISTRICTS OF THE FIRST CLASS, EXCEPT WHERE
     6  SPECIFICALLY LIMITED TO SCHOOL DISTRICTS OF OTHER CLASSES.
     7     "CORRECTIVE ACTION."  CLASSIFICATION AS PROVIDED IN 22 PA.
     8  CODE § 403.3 (RELATING TO SINGLE ACCOUNTABILITY SYSTEM)
     9  INDICATING THAT A SCHOOL OR SCHOOL DISTRICT FAILED TO MEET AYP
    10  FOR FOUR OR MORE CONSECUTIVE YEARS AND REQUIRING DEVELOPMENT OF
    11  A CORRECTIVE ACTION PLAN.
    12     "NO CHILD LEFT BEHIND ACT OF 2001."  THE NO CHILD LEFT BEHIND
    13  ACT OF 2001 (PUBLIC LAW 107-110, 115 STAT. 1425).
    14     "OFFICIAL VISITOR."  INCLUDES THE GOVERNOR, LIEUTENANT
    15  GOVERNOR, MEMBERS OF THE SENATE AND THE HOUSE OF
    16  REPRESENTATIVES, THE SECRETARY OF EDUCATION AND MEMBERS OF THE
    17  STATE BOARD OF EDUCATION.
    18     "PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TEST" OR "PSSA
    19  TEST."  A TEST DEVELOPED AND IMPLEMENTED BY THE DEPARTMENT OF
    20  EDUCATION TO DETERMINE ONLY ACADEMIC ACHIEVEMENT RELATING TO
    21  OBJECTIVE ACADEMIC STANDARDS IN THE AREAS OF READING, WRITING,
    22  MATHEMATICS AND SCIENCE. THE PSSA TEST SHALL BE DEVELOPED AND
    23  IMPLEMENTED AS NECESSARY TO COMPLY WITH FEDERAL LAW.
    24     "PROFICIENT."  THE ATTAINMENT OF PERFORMANCE LEVELS IN THOSE
    25  SUBJECT AREAS ASSESSED THROUGH THE PSSA TEST AND REQUIRED UNDER
    26  THE NO CHILD LEFT BEHIND ACT OF 2001 (PUBLIC LAW 107-110, 115
    27  STAT. 1425) THAT HAVE BEEN APPROVED BY THE STATE BOARD OF
    28  EDUCATION TO REFLECT SATISFACTORY ACADEMIC PERFORMANCE.
    29     "SCHOOL DISTRICT."  INCLUDES SCHOOL DISTRICTS OF ALL CLASSES,
    30  EXCEPT WHERE SPECIFICALLY LIMITED TO DISTRICTS OF A PARTICULAR
    20030H0113B2814                 - 38 -     

     1  CLASS OR CLASSES.
     2     "SCHOOL IMPROVEMENT."  CLASSIFICATION AS PROVIDED IN 22 PA.
     3  CODE § 403.3 (RELATING TO SINGLE ACCOUNTABILITY SYSTEM)
     4  INDICATING A SCHOOL OR SCHOOL DISTRICT HAS FAILED TO MAKE AYP
     5  FOR TWO CONSECUTIVE YEARS AND NEEDS IMPROVEMENT.
     6     "SCHOOL TERM."  THE PERIOD OF TIME ELAPSING BETWEEN THE
     7  OPENING OF THE PUBLIC SCHOOLS IN THE FALL OF ONE YEAR AND THE
     8  CLOSING OF THE PUBLIC SCHOOLS IN THE SPRING OF THE FOLLOWING
     9  YEAR.
    10     "SCHOOL YEAR."  THE PERIOD OF TIME ELAPSING IN SCHOOL
    11  DISTRICTS OF THE FIRST CLASS BETWEEN THE FIRST DAY OF JANUARY
    12  AND THE 31ST DAY OF DECEMBER OF ANY YEAR, AND IN SCHOOL
    13  DISTRICTS OF ALL OTHER CLASSES BETWEEN THE FIRST DAY OF JULY OF
    14  ONE YEAR AND THE 30TH DAY OF JUNE OF THE FOLLOWING YEAR.
    15  EFFECTIVE JULY 1, 1997, FOR THE 1997-1998 SCHOOL YEAR AND EACH
    16  SCHOOL YEAR THEREAFTER, SCHOOL DISTRICTS WITH A YEAR-ROUND
    17  EDUCATION PROGRAM MAY SUBMIT A REQUEST TO THE SECRETARY OF
    18  EDUCATION FOR APPROVAL OR DISAPPROVAL TO EXTEND THE SCHOOL YEAR
    19  UNTIL AUGUST 15 FOR THE PURPOSE OF DETERMINING AVERAGE DAILY
    20  MEMBERSHIPS FOR STUDENTS WHOSE 180 DAYS OF INSTRUCTION CONTINUE
    21  INTO THE SUMMER MONTHS.
    22     "WARNING."  CLASSIFICATION AS PROVIDED IN 22 PA. CODE § 403.3
    23  (RELATING TO SINGLE ACCOUNTABILITY SYSTEM) INDICATING THAT A
    24  GIVEN SCHOOL OR SCHOOL DISTRICT HAS FAILED TO MAKE ITS ACADEMIC
    25  PERFORMANCE TARGETS FOR ONE YEAR AND HAS ANOTHER YEAR TO MAKE
    26  THEM.
    27     SECTION 2.  220(C) OF THE ACT, ADDED DECEMBER 9, 2002
    28  (P.L.1317, NO.153), IS AMENDED TO READ:
    29     SECTION 220.  STATE REPORT CARD.--* * *
    30     (C)  DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
    20030H0113B2814                 - 39 -     

     1  WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
     2  SUBSECTION:
     3     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
     4  COMMONWEALTH.
     5     "LOCAL EDUCATION AGENCY."  A SCHOOL DISTRICT, CYBER CHARTER
     6  SCHOOL, CHARTER SCHOOL, AREA VOCATIONAL-TECHNICAL SCHOOL OR
     7  INTERMEDIATE UNIT.
     8     ["NO CHILD LEFT BEHIND ACT OF 2001."  THE NO CHILD LEFT
     9  BEHIND ACT OF 2001 (PUBLIC LAW 107-110, 115 STAT. 1425).]
    10     SECTION 3.  SECTION 671 OF THE ACT OF MARCH 10, 1949 (P.L.30,
    11  NO.14), AMENDED JULY 31, 1963 (P.L.389, NO.206), IS AMENDED TO
    12  READ:
    13     SECTION 671.  FISCAL YEAR.--(A)  IN ALL SCHOOL DISTRICTS OF
    14  THE SECOND, THIRD, AND FOURTH CLASS, THE FISCAL YEAR SHALL BEGIN
    15  ON THE FIRST DAY OF JULY IN EACH YEAR: PROVIDED, THAT THE BOARD
    16  OF SCHOOL DIRECTORS OF ANY DISTRICT OF THE SECOND CLASS MAY, BY
    17  RESOLUTION ADOPTED BY TWO-THIRDS VOTE OF THE MEMBERS THEREOF AT
    18  A MEETING OF THE BOARD AFTER NOT LESS THAN TEN DAYS' NOTICE OF
    19  THE FACT THAT SUCH RESOLUTION WOULD BE PRESENTED FOR ACTION AT
    20  SUCH MEETING, FIX THE FISCAL YEAR OF SUCH SCHOOL DISTRICT SO AS
    21  TO BEGIN ON THE FIRST DAY OF JANUARY IN EACH YEAR INSTEAD OF ON
    22  THE FIRST DAY OF JULY AS HEREINABOVE PROVIDED.
    23     (B)  (1)  FOR FISCAL YEARS BEGINNING AFTER JUNE 30, 2004, A
    24  SCHOOL DISTRICT OF THE SECOND, THIRD OR FOURTH CLASS MAY DELAY
    25  THE ADOPTION OF ITS ANNUAL BUDGET BEYOND THE LAST DAY IN JUNE
    26  WHERE LEGISLATION PROVIDING THE APPROPRIATION FOR BASIC
    27  EDUCATION FUNDING TO BE PAID AS A REIMBURSEMENT FOR THE
    28  PRECEDING SCHOOL YEAR IS NOT ENACTED BY JUNE 15.
    29     (2)  A SCHOOL DISTRICT THAT DELAYS THE ADOPTION OF ITS ANNUAL
    30  BUDGET UNDER PARAGRAPH (1) SHALL ADOPT AN ANNUAL BUDGET NO LATER
    20030H0113B2814                 - 40 -     

     1  THAN FIFTEEN DAYS SUBSEQUENT TO THE ENACTMENT OF LEGISLATION
     2  PROVIDING THE APPROPRIATION FOR BASIC EDUCATION FUNDING TO BE
     3  PAID AS A REIMBURSEMENT FOR THE PRECEDING YEAR.
     4     (3)  THE PROVISIONS OF SECTION 687 REQUIRING TEN DAYS' PUBLIC
     5  NOTICE PRIOR TO FINAL ACTION SHALL APPLY IN CASES WHEN THE
     6  ADOPTION OF A SCHOOL DISTRICT'S BUDGET IS DELAYED UNDER THIS
     7  SUBSECTION.
     8     SECTION 4.  SECTION 672(A) OF THE ACT, AMENDED JUNE 16, 1972
     9  (P.L.449, NO.138), IS AMENDED TO READ:
    10     SECTION 672.  TAX LEVY; LIMITATIONS.--(A)  IN ALL SCHOOL
    11  DISTRICTS OF THE SECOND, THIRD, AND FOURTH CLASS, ALL SCHOOL
    12  TAXES SHALL BE LEVIED AND ASSESSED BY THE BOARD OF SCHOOL
    13  DIRECTORS THEREIN, DURING THE MONTH OF FEBRUARY OR MARCH OR
    14  APRIL OR MAY OR JUNE EACH YEAR, OR NO LATER THAN TWENTY DAYS
    15  FOLLOWING THE ENACTMENT OF LEGISLATION PROVIDING THE
    16  APPROPRIATION FOR BASIC EDUCATION FUNDING TO BE PAID AS A
    17  REIMBURSEMENT FOR THE PRECEDING SCHOOL YEAR, FOR THE ENSUING
    18  FISCAL YEAR, EXCEPT IN DISTRICTS OF THE SECOND CLASS WHERE THE
    19  FISCAL YEAR BEGINS ON THE FIRST DAY OF JANUARY, IN WHICH THE
    20  SCHOOL TAXES SHALL BE LEVIED AND ASSESSED DURING THE MONTH OF
    21  OCTOBER OR NOVEMBER OF EACH YEAR. IN SUCH SCHOOL DISTRICTS THE
    22  TAX RATE SHALL NOT EXCEED TWENTY-FIVE MILLS ON THE DOLLAR, ON
    23  THE TOTAL AMOUNT OF THE ASSESSED VALUATION OF ALL PROPERTY
    24  TAXABLE FOR SCHOOL PURPOSES THEREIN. EACH SCHOOL DISTRICT OF THE
    25  SECOND, THIRD OR FOURTH CLASS MAY ALSO COLLECT A PER CAPITA TAX
    26  ON EACH RESIDENT OR INHABITANT OF SUCH DISTRICT OVER EIGHTEEN
    27  YEARS OF AGE, AS HEREIN PROVIDED.
    28     * * *
    29     SECTION 5.  SECTION 679 OF THE ACT, AMENDED NOVEMBER 26, 1982
    30  (P.L.760, NO.215), IS AMENDED TO READ:
    20030H0113B2814                 - 41 -     

     1     SECTION 679.  PER CAPITA TAXES.--EACH RESIDENT OR INHABITANT,
     2  OVER EIGHTEEN YEARS OF AGE, IN EVERY SCHOOL DISTRICT OF THE
     3  SECOND, THIRD, AND FOURTH CLASS, WHICH SHALL LEVY SUCH TAX,
     4  SHALL ANNUALLY PAY, FOR THE USE OF THE SCHOOL DISTRICT IN WHICH
     5  HE OR SHE IS A RESIDENT OR INHABITANT, A PER CAPITA TAX OF NOT
     6  LESS THAN ONE DOLLAR NOR MORE THAN FIVE DOLLARS, AS MAY BE
     7  ASSESSED BY THE LOCAL SCHOOL DISTRICT. THE TAX COLLECTOR SHALL
     8  NOT PROCEED AGAINST A SPOUSE OR HIS EMPLOYER UNTIL HE HAS
     9  PURSUED REMEDIES AGAINST THE DELINQUENT TAXPAYER AND THE
    10  TAXPAYER'S EMPLOYER UNDER THIS SECTION.
    11     EACH SCHOOL DISTRICT MAY EXEMPT ANY PERSON WHOSE TOTAL INCOME
    12  FROM ALL SOURCES IS LESS THAN [FIVE THOUSAND DOLLARS] TEN
    13  THOUSAND DOLLARS PER ANNUM FROM ITS PER CAPITA TAX OR ANY
    14  PORTION THEREOF. THE SCHOOL DISTRICT MAY ADOPT AND EMPLOY
    15  REGULATIONS FOR THE PROCESSING OF CLAIMS FOR THE EXEMPTION.
    16     SECTION 6.  SECTION 687 OF THE ACT IS AMENDED BY ADDING A
    17  SUBSECTION TO READ:
    18     SECTION 687.  ANNUAL BUDGET; ADDITIONAL OR INCREASED
    19  APPROPRIATIONS; TRANSFER OF FUNDS.--* * *
    20     (J)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ACT, THE
    21  BOARD OF SCHOOL DIRECTORS OF EACH SCHOOL DISTRICT MAY REOPEN ITS
    22  2003-2004 BUDGET TO REFLECT ANY STATE ALLOCATIONS UNDER SECTIONS
    23  2502.13 AND 2502.41 FOR FISCAL YEAR 2003-2004 PROVIDED BY THE
    24  GENERAL ASSEMBLY THROUGH THIS ACT.
    25     SECTION 7.  SECTION 696(H)(1) OF THE ACT, AMENDED JUNE 29,
    26  2002 (P.L.524, NO.88), IS AMENDED TO READ:
    27     SECTION 696.  DISTRESS IN SCHOOL DISTRICTS OF THE FIRST
    28  CLASS.--* * *
    29     (H)  THE SCHOOL REFORM COMMISSION SHALL BE RESPONSIBLE FOR
    30  FINANCIAL MATTERS RELATED TO THE DISTRESSED SCHOOL DISTRICT OF
    20030H0113B2814                 - 42 -     

     1  THE FIRST CLASS AND:
     2     (1)  [ALL] EXCEPT AS PROVIDED IN ARTICLE VI-C, ALL TAXES
     3  AUTHORIZED TO BE LEVIED BY A SCHOOL DISTRICT OF THE FIRST CLASS
     4  OR FOR A SCHOOL DISTRICT OF THE FIRST CLASS BY A CITY OR COUNTY
     5  OF THE FIRST CLASS ON THE DATE OF THE DECLARATION OF DISTRESS
     6  SHALL CONTINUE TO BE AUTHORIZED AND LEVIED IN ACCORDANCE WITH
     7  THIS ACT AND SHALL BE TRANSMITTED TO THE SCHOOL DISTRICT. FOR
     8  THE FIRST FISCAL YEAR OR PART THEREOF AND EVERY FISCAL YEAR
     9  THEREAFTER IN WHICH THE SCHOOL DISTRICT IS DECLARED TO BE
    10  DISTRESSED, THE AMOUNT APPROPRIATED OR PAID BY THE CITY OR
    11  COUNTY TO THE SCHOOL DISTRICT AND THE TAX AUTHORIZED BY THE CITY
    12  OR COUNTY TO BE LEVIED FOR THE SCHOOL DISTRICT OR DEDICATED TO
    13  THE SCHOOL DISTRICT SHALL BE AN AMOUNT OR TAX NOT LESS THAN THE
    14  HIGHEST AMOUNT PAID BY THE CITY OR COUNTY TO THE SCHOOL DISTRICT
    15  OR AUTHORIZED BY THE CITY OR COUNTY TO BE LEVIED FOR THE SCHOOL
    16  DISTRICT OR DEDICATED TO THE SCHOOL DISTRICT DURING ANY OF THE
    17  THREE FULL PRECEDING FISCAL YEARS. IN ADDITION, THE CITY OF THE
    18  FIRST CLASS SHALL PROVIDE TO THE SCHOOL DISTRICT OF THE FIRST
    19  CLASS ALL OTHER AVAILABLE LOCAL NON-TAX REVENUE, INCLUDING
    20  GRANTS, SUBSIDIES OR PAYMENTS MADE DURING THE PRIOR YEAR.
    21     * * *
    22     SECTION 8.  THE ACT IS AMENDED BY ADDING ARTICLES TO READ:
    23                            ARTICLE VI-A
    24                    TAXATION BY SCHOOL DISTRICTS
    25                      (A)  GENERAL PROVISIONS
    26  SECTION 601-A.  SHORT TITLE OF ARTICLE.
    27     THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE TAXPAYER
    28  CHOICE ACT.
    29  SECTION 602-A.  DEFINITIONS.
    30     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    20030H0113B2814                 - 43 -     

     1  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
     2  CONTEXT CLEARLY INDICATES OTHERWISE:
     3     "ASSESSOR."  AS DEFINED IN 53 PA.C.S. § 8582 (RELATING TO
     4  DEFINITIONS).
     5     "AVERAGE INDEX" OR "INDEX."  THE AVERAGE OF THE PERCENTAGE
     6  INCREASE IN THE STATEWIDE AVERAGE WEEKLY WAGE AND THE EMPLOYMENT
     7  COST INDEX CALCULATED BY THE DEPARTMENT OF EDUCATION AND
     8  PUBLISHED IN THE PENNSYLVANIA BULLETIN UNDER SECTION 614-A(K).
     9     "BOARD OF SCHOOL DIRECTORS."  A BOARD OF SCHOOL DIRECTORS OF
    10  A SCHOOL DISTRICT OF THE FIRST CLASS A, SECOND CLASS, THIRD
    11  CLASS OR FOURTH CLASS.
    12     "CURRENT YEAR."  THE FISCAL YEAR FOR WHICH A TAX IS LEVIED.
    13     "DOMICILE."  AS DEFINED IN SECTION 13 OF THE ACT OF DECEMBER
    14  31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING
    15  ACT.
    16     "EARNED INCOME."  AS DEFINED IN SECTION 13 OF THE ACT OF
    17  DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX
    18  ENABLING ACT.
    19     "ELECTION OFFICIALS."  THE COUNTY BOARD OF ELECTIONS OF A
    20  COUNTY.
    21     "EMPLOYER."  AS DEFINED IN SECTION 301 OF THE ACT OF MARCH 4,
    22  1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
    23     "EMPLOYMENT COST INDEX."  THE MOST RECENT OFFICIAL FIGURES,
    24  FOR THE PREVIOUS 12-MONTH PERIOD FOR THE EMPLOYMENT COST INDEX
    25  SERIES FOR ELEMENTARY AND SECONDARY SCHOOLS, REPORTED BY THE
    26  BUREAU OF LABOR STATISTICS OF THE DEPARTMENT OF LABOR.
    27     "FARMSTEAD."  AS DEFINED IN 53 PA.C.S. § 8582 (RELATING TO
    28  DEFINITIONS).
    29     "FARMSTEAD PROPERTY."  AS DEFINED IN 53 PA.C.S. § 8582
    30  (RELATING TO DEFINITIONS).
    20030H0113B2814                 - 44 -     

     1     "FUND."  THE PROPERTY TAX RELIEF FUND ESTABLISHED IN THE
     2  STATE TREASURY WHICH INCLUDES REVENUES FROM GAMING AS PROVIDED
     3  BY LAW.
     4     "HOMESTEAD."  AS DEFINED IN 53 PA.C.S. § 8401 (RELATING TO
     5  DEFINITIONS).
     6     "HOMESTEAD PROPERTY."  AS DEFINED IN 53 PA.C.S § 8401
     7  (RELATING TO DEFINITIONS).
     8     "INCOME TAX."  A TAX ON EARNED INCOME AND NET PROFITS OR A
     9  TAX ON PERSONAL INCOME IMPOSED PURSUANT TO THIS ARTICLE.
    10     "LOCAL TAX ENABLING ACT."  THE ACT OF DECEMBER 31, 1965
    11  (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
    12     "LOCAL TAX REVENUE."  THE REVENUE FROM TAXES ACTUALLY LEVIED
    13  AND ASSESSED BY A SCHOOL DISTRICT. THE TERM DOES NOT INCLUDE
    14  INTEREST OR DIVIDEND EARNINGS, FEDERAL OR STATE GRANTS,
    15  CONTRACTS OR APPROPRIATIONS, INCOME GENERATED FROM OPERATIONS OR
    16  ANY OTHER SOURCE THAT IS NOT DERIVED FROM TAXES LEVIED AND
    17  ASSESSED BY A SCHOOL DISTRICT.
    18     "MUNICIPALITY."  AS DEFINED IN 1 PA.C.S. § 1991 (RELATING TO
    19  DEFINITIONS).
    20     "NET PROFITS."  AS DEFINED IN SECTION 13 OF THE ACT OF
    21  DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX
    22  ENABLING ACT.
    23     "PERSONAL INCOME."  INCOME ENUMERATED IN SECTION 303 OF THE
    24  ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE
    25  OF 1971, AS RETURNED TO AND ASCERTAINED BY THE DEPARTMENT OF
    26  REVENUE, SUBJECT, HOWEVER, TO ANY CORRECTION THEREOF FOR FRAUD,
    27  EVASION OR ERROR AS FINALLY DETERMINED BY THE COMMONWEALTH.
    28     "POLITICAL SUBDIVISION."  AS DEFINED IN 1 PA.C.S. § 1991
    29  (RELATING TO DEFINITIONS).
    30     "PRECEDING YEAR."  THE FISCAL YEAR BEFORE THE CURRENT YEAR.
    20030H0113B2814                 - 45 -     

     1     "RESIDENT INDIVIDUAL."  AN INDIVIDUAL WHO IS DOMICILED IN A
     2  SCHOOL DISTRICT.
     3     "SCHOOL DISTRICT."  A SCHOOL DISTRICT OF THE FIRST CLASS A,
     4  SECOND CLASS, THIRD CLASS OR FOURTH CLASS.
     5     "STATEWIDE AVERAGE WEEKLY WAGE."  THAT AMOUNT DETERMINED
     6  ANNUALLY FOR EACH CALENDAR YEAR BY THE DEPARTMENT OF LABOR AND
     7  INDUSTRY UNDER SECTION 105.1 OF THE ACT OF JUNE 2, 1915
     8  (P.L.736, NO.338), KNOWN AS THE WORKERS' COMPENSATION ACT.
     9     "SUCCEEDING YEAR."  THE FISCAL YEAR FOLLOWING THE CURRENT
    10  YEAR.
    11     "TAX REFORM CODE."  THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
    12  KNOWN AS THE TAX REFORM CODE OF 1971.
    13     "TAXPAYER."  AN INDIVIDUAL REQUIRED UNDER THIS ARTICLE TO
    14  FILE A TAX RETURN OR TO PAY A TAX.
    15  SECTION 603-A.  INTENT; SCOPE AND LIMITATIONS.
    16     (A)  INTENT.--
    17         (1)  IT IS THE INTENT OF THIS ARTICLE TO ULTIMATELY
    18     PROVIDE QUALIFYING SCHOOL DISTRICTS WITH STATE FUNDS WHICH,
    19     WHEN SUPPLEMENTED WITH THE MINIMUM LOCAL CONTRIBUTION, ARE
    20     SUFFICIENT SO THAT SCHOOL DISTRICTS IN THE AGGREGATE ARE ABLE
    21     TO REDUCE PROPERTY TAXES ON HOMESTEAD PROPERTY AND FARMSTEAD
    22     PROPERTY BY $5 FOR EVERY DOLLAR OF LOCAL CONTRIBUTION.
    23         (2)  IT IS THE INTENT OF THIS ARTICLE TO PERMIT SCHOOL
    24     DISTRICTS TO SUPPLEMENT THE MINIMUM LOCAL CONTRIBUTION AND
    25     THE STATE FUNDS WITH ADDITIONAL LOCAL FUNDS TO PERMIT FURTHER
    26     REDUCTIONS IN PROPERTY TAXES ON HOMESTEAD PROPERTY AND
    27     FARMSTEAD PROPERTY.
    28     (B)  GENERAL RULE.--
    29         (1)  EACH SCHOOL DISTRICT IN WHICH THE GOVERNING BODY HAS
    30     ADOPTED A RESOLUTION UNDER SECTION 611-A(A)(1) AND EACH
    20030H0113B2814                 - 46 -     

     1     SCHOOL DISTRICT IN WHICH THE ELECTORS HAVE APPROVED A
     2     REFERENDUM UNDER SECTION 613-A(B)(2)(I) SHALL BE QUALIFIED
     3     FOR A DISTRIBUTION OF FUNDS FROM THE FUND PURSUANT TO ARTICLE
     4     VI-B FOR THE PURPOSE OF PROVIDING EXCLUSIONS FOR HOMESTEAD
     5     PROPERTY AND FARMSTEAD PROPERTY.
     6         (2)  IF A SCHOOL DISTRICT CHOOSES TO IMPOSE THE TAX
     7     AUTHORIZED BY SECTION 611-A(A)(1) OR IF THE ELECTORS HAVE
     8     APPROVED A REFERENDUM UNDER SECTION 613-A(B)(2)(I), IT SHALL
     9     HAVE THE POWER TO IMPOSE, SUBJECT TO SECTION 613-A,
    10     ADDITIONAL EARNED INCOME AND NET PROFITS TAX OR PERSONAL
    11     INCOME TAX FOR THE PURPOSE OF HOMESTEAD AND FARMSTEAD
    12     EXCLUSIONS.
    13         (3)  THIS ARTICLE SHALL NOT BE CONSTRUED TO AFFECT THE
    14     POWER OF A SCHOOL DISTRICT TO DO ANY OF THE FOLLOWING:
    15             (I)  TO ELECT TO PLACE A REFERENDUM QUESTION ON THE
    16         BALLOT PURSUANT TO THE ACT OF JUNE 22, 2001 (P.L.374,
    17         NO.24), KNOWN AS THE OPTIONAL OCCUPATION TAX ELIMINATION
    18         ACT. A SCHOOL DISTRICT MAY PLACE SUCH REFERENDUM QUESTION
    19         ON THE BALLOT AT THE SAME MUNICIPAL ELECTION AS A
    20         REFERENDUM QUESTION PLACED ON THE BALLOT PURSUANT TO
    21         SUBDIVISION (B).
    22             (II)  TO ELIMINATE ITS OCCUPATION TAX PURSUANT TO THE
    23         OPTIONAL OCCUPATION TAX ELIMINATION ACT.
    24             (III)  EXCEPT AS PROVIDED IN SECTIONS 614-A(B)(2) AND
    25         621-A(C)(3), TO LEVY, ASSESS OR COLLECT A TAX ON EARNED
    26         INCOME AND NET PROFITS UNDER SECTION 13 OF THE LOCAL TAX
    27         ENABLING ACT.
    28  SECTION 604-A.  (RESERVED).
    29  SECTION 605-A.  CERTAIN RATES OF TAXATION LIMITED.
    30     IF A MUNICIPALITY AND SCHOOL DISTRICT BOTH IMPOSE AN EARNED
    20030H0113B2814                 - 47 -     

     1  INCOME AND NET PROFITS TAX ON THE SAME INDIVIDUAL UNDER THE
     2  LOCAL TAX ENABLING ACT AND THE MUNICIPALITY AND SCHOOL DISTRICT
     3  ARE LIMITED TO OR HAVE AGREED UPON A DIVISION OF THE TAX RATE IN
     4  ACCORDANCE WITH SECTION 8 OF THE LOCAL TAX ENABLING ACT, THEN
     5  THE MUNICIPALITY THAT CONTINUES TO LEVY THE EARNED INCOME AND
     6  NET PROFITS TAX UNDER THE LOCAL TAX ENABLING ACT SHALL REMAIN
     7  SUBJECT TO THAT LIMITATION OR AGREEMENT IN THE EVENT THAT THE
     8  SCHOOL DISTRICT OPTS TO IMPOSE AN INCOME TAX UNDER SECTION 621-
     9  A.
    10                       (B)  TAX AUTHORIZATION
    11  SECTION 611-A.  GENERAL TAX AUTHORIZATION.
    12     (A)  MINIMUM LOCAL CONTRIBUTION.--
    13         (1)  NOTWITHSTANDING THE PROVISIONS OF SECTION 613-A,
    14     EACH SCHOOL DISTRICT MAY, BY RESOLUTION, LEVY, ASSESS AND
    15     COLLECT AN EARNED INCOME AND NET PROFITS TAX IN THE AMOUNT OF
    16     ONE TENTH OF ONE PERCENT (.1%) UNDER SUBDIVISION (C) IN ORDER
    17     TO QUALIFY FOR DISTRIBUTION OF MONEY FROM THE FUND UNDER
    18     ARTICLE VI-B.
    19         (2)  NO LATER THAN 30 DAYS AFTER THE EFFECTIVE DATE OF
    20     THIS ARTICLE, THE BOARD OF SCHOOL DIRECTORS SHALL ADOPT A
    21     RESOLUTION IMPOSING THE TAX AUTHORIZED BY PARAGRAPH (1) AND
    22     SHALL IMMEDIATELY NOTIFY THE DEPARTMENT OF EDUCATION IN ORDER
    23     TO ESTABLISH THE SCHOOL DISTRICT'S ELIGIBILITY TO RECEIVE A
    24     PROPERTY TAX REDUCTION ALLOCATION PURSUANT TO ARTICLE VI-B.
    25     THE TAX IMPOSED UNDER THE AUTHORITY OF THIS SUBSECTION SHALL
    26     BE EFFECTIVE BEGINNING ON THE FIRST DAY OF JULY AFTER THE
    27     CERTIFICATION UNDER SECTION 603-B IS MADE IN AN AMOUNT
    28     GREATER THAN ZERO.
    29             (I)  SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS
    30         ARTICLE, THE DEPARTMENT OF EDUCATION SHALL NOTIFY THE
    20030H0113B2814                 - 48 -     

     1         COUNTY BOARD OF ELECTIONS OF EACH COUNTY OF THE SCHOOL
     2         DISTRICTS IN THAT COUNTY WHICH HAVE FAILED TO TAKE THE
     3         ACTION REQUIRED UNDER THIS PARAGRAPH.
     4             (II)  THE COUNTY BOARD OF ELECTIONS SHALL PROCEED TO
     5         HAVE THE REFERENDUM QUESTION SET FORTH IN SECTION 613-
     6         A(B)(2)(I) PLACED ON THE BALLOT AT THE PRIMARY ELECTION
     7         OF 2004.
     8             (III)  THE COUNTY BOARD OF ELECTIONS SHALL CERTIFY TO
     9         THE DEPARTMENT OF EDUCATION THE RESULTS OF THE REFERENDUM
    10         REFERRED TO IN SUBPARAGRAPH (II) AS SOON AS PRACTICABLE.
    11             (IV)  IF, SUBSEQUENT TO INITIAL NOTIFICATION THAT A
    12         SCHOOL DISTRICT HAD NOT COMPLIED WITH THE REQUIREMENTS OF
    13         THIS PARAGRAPH, THE DEPARTMENT OF EDUCATION NOTIFIES THE
    14         BOARD THAT THE SCHOOL DISTRICT HAS SUBSEQUENTLY COMPLIED,
    15         THE COUNTY BOARD OF ELECTIONS MAY TAKE WHATEVER ACTION IT
    16         DEEMS APPROPRIATE TO EITHER REMOVE THE QUESTION FROM THE
    17         BALLOT IN THAT SCHOOL DISTRICT OR DECLARE THE VOTE OR
    18         POTENTIAL VOTE NULL AND VOID.
    19     (B)  SUPPLEMENTAL TAX RELIEF.--
    20         (1)  SUBJECT TO SECTION 613-A, EACH SCHOOL DISTRICT MAY
    21     UNDER SUBDIVISION (C), BY RESOLUTION, LEVY, ASSESS AND
    22     COLLECT:
    23             (I)  AN ADDITIONAL TAX ON EARNED INCOME AND NET
    24         PROFITS UP TO THE MAXIMUM RATE AUTHORIZED UNDER SECTION
    25         621-A(B); OR
    26             (II)  A TAX ON PERSONAL INCOME UP TO THE MAXIMUM RATE
    27         AUTHORIZED UNDER SECTION 621-A(C). IF A SCHOOL DISTRICT
    28         IMPOSES A PERSONAL INCOME TAX, IT SHALL RELINQUISH THE
    29         RIGHT TO IMPOSE AN EARNED INCOME AND NET PROFITS TAX
    30         UNDER THIS ARTICLE OR ANY OTHER ACT AND SHALL CONVERT ANY
    20030H0113B2814                 - 49 -     

     1         EXISTING INCOME TAX TO A PERSONAL INCOME TAX PURSUANT TO
     2         THE REQUIREMENTS OF SECTION 621-A(C)(2).
     3         (2)  IMPOSITION OF THE TAX AUTHORIZED BY 611-A(A)(1) OR
     4     APPROVED BY THE ELECTORS UNDER SECTION 613-A(B)(2)(I) SHALL
     5     AUTHORIZE THE SCHOOL DISTRICT TO SUBMIT A REFERENDUM QUESTION
     6     TO THE VOTERS REQUESTING THEIR APPROVAL FOR EITHER THE
     7     IMPOSITION OF AN ADDITIONAL RATE OF EARNED INCOME AND NET
     8     PROFITS TAX OR A NEWLY IMPOSED PERSONAL INCOME TAX TO BE USED
     9     FOR AN ADDITIONAL DEGREE OF HOMESTEAD EXCLUSIONS, CONSISTENT
    10     WITH THE REQUIREMENTS OF SECTION 613-A.
    11  SECTION 612-A.  CONTINUITY OF TAX.
    12     AN EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX
    13  LEVIED UNDER THE PROVISIONS OF SUBDIVISION (C) SHALL CONTINUE IN
    14  FORCE ON A FISCAL YEAR BASIS WITHOUT ANNUAL REENACTMENT EXCEPT
    15  IN A YEAR IN WHICH THE RATE OF TAX IS INCREASED OR THE TAX IS
    16  SUBSEQUENTLY REPEALED.
    17  SECTION 613-A.  ADOPTION OF REFERENDUM.
    18     (A)  GENERAL RULE.--
    19         (1)  THE FOLLOWING APPLY:
    20             (I)  ALL SCHOOL DISTRICTS ARE AUTHORIZED TO IMPOSE A
    21         ONE TENTH OF ONE PERCENT (.1%) EARNED INCOME AND NET
    22         PROFITS TAX PURSUANT TO SECTION 611-A(A)(1) WITHOUT
    23         SUBMITTING THE ISSUE TO THE ELECTORS OF THE SCHOOL
    24         DISTRICT IN A REFERENDUM. ACTION UNDER THIS PARAGRAPH
    25         WILL TRIGGER THE SCHOOL DISTRICT'S ELIGIBILITY TO OBTAIN
    26         A STATE MATCH FROM THE FUND FOR THE SOLE PURPOSE OF
    27         PROVIDING FOR HOMESTEAD OR FARMSTEAD PROPERTY TAX
    28         EXCLUSIONS. THE BOARD OF SCHOOL DIRECTORS MAY CHOOSE TO
    29         REQUEST THE APPROVAL OF THE VOTERS TO INCREASE INCOME
    30         TAXES TO BE ABLE TO PROVIDE UP TO THE FULL HOMESTEAD
    20030H0113B2814                 - 50 -     

     1         EXCLUSION PERMITTED BY THE CONSTITUTION OF PENNSYLVANIA.
     2         IF THE BOARD CHOOSES TO REQUEST THE APPROVAL OF THE
     3         VOTERS TO ENACT A PERSONAL INCOME TAX AND THE VOTERS
     4         APPROVE THE REFERENDUM, THEN ANY EARNED INCOME AND NET
     5         PROFITS TAX IMPOSED BY THE SCHOOL DISTRICT WHICH WAS IN
     6         EXISTENCE PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE AND
     7         THE EARNED INCOME AND NET PROFITS TAX NEWLY IMPOSED
     8         PURSUANT TO SECTION 611-A(A)(1) WILL BE CONVERTED INTO A
     9         PERSONAL INCOME TAX AT THE RATE DETERMINED UNDER SECTION
    10         621-A(C)(2).
    11             (II)  IF A SCHOOL DISTRICT FAILS TO IMPOSE THE TAX
    12         AUTHORIZED PURSUANT TO SECTION 611-A(A)(1), THE COUNTY
    13         BOARD OF ELECTIONS SHALL PLACE A QUESTION ON THE BALLOT
    14         IN THE SCHOOL DISTRICT. THE QUESTION SHALL SEEK APPROVAL
    15         OF THE ELECTORS FOR A ONE TENTH OF ONE PERCENT (.1%)
    16         INCREASE IN THE EARNED INCOME TAX IN ORDER TO OBTAIN THE
    17         STATE MATCHING FUNDS FOR HOMESTEAD AND FARMSTEAD PROPERTY
    18         TAX EXCLUSIONS.
    19         (2)  IN ORDER TO LEVY, IN ADDITION TO THE TAX AUTHORIZED
    20     UNDER SECTION 611-A(A)(1), AN EARNED INCOME AND NET PROFITS
    21     TAX OR PERSONAL INCOME TAX UNDER SUBDIVISION (C), A BOARD OF
    22     SCHOOL DIRECTORS SHALL USE THE PROCEDURES SET FORTH IN
    23     SUBSECTION (B).
    24         (3)  IF A SCHOOL DISTRICT DOES NOT TAKE ACTION TO IMPOSE
    25     THE TAX AUTHORIZED UNDER SECTION 611-A(A)(1), THE PROCEDURE
    26     SET FORTH IN SUBSECTION (B)(2)(I) SHALL APPLY.
    27     (B)  PUBLIC REFERENDUM REQUIREMENTS.--EXCEPT AS SET FORTH IN
    28  SUBSECTION (C) THE FOLLOWING APPLY:
    29         (1)  A BOARD OF SCHOOL DIRECTORS MAY, IN ADDITION TO THE
    30     TAX IMPOSED UNDER SECTION 611-A(A)(1), LEVY THE EARNED INCOME
    20030H0113B2814                 - 51 -     

     1     AND NET PROFITS TAX OR PERSONAL INCOME TAX UNDER SUBDIVISION
     2     (C) ONLY BY OBTAINING THE APPROVAL OF THE ELECTORATE OF THE
     3     AFFECTED SCHOOL DISTRICT IN A PUBLIC REFERENDUM AT ONLY THE
     4     MUNICIPAL ELECTION PRECEDING THE FISCAL YEAR WHEN THE EARNED
     5     INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX WILL BE
     6     INITIALLY IMPOSED. THE COUNTY BOARD OF ELECTIONS SHALL CAUSE
     7     THE REFERENDUM QUESTION REQUIRED BY THIS SECTION TO BE
     8     SUBMITTED TO THE ELECTORS OF THE SCHOOL DISTRICT.
     9         (2)  EXCEPT IN THE CASE OF A REFERENDUM REQUIRED IF A
    10     SCHOOL DISTRICT FAILS TO ADOPT THE TAX AUTHORIZED BY SECTION
    11     611-A(A)(1), THE REFERENDUM QUESTION SHALL STATE THE INITIAL
    12     RATE OF THE PROPOSED EARNED INCOME AND NET PROFITS TAX OR
    13     PERSONAL INCOME TAX TO BE LEVIED UNDER SUBDIVISION (C) AND
    14     THE REASON FOR THE TAX. THE REFERENDUM QUESTION SHALL BE
    15     FRAMED IN ONE OF THE FOLLOWING FORMS WITH THE SCHOOL DISTRICT
    16     RESOLUTION DETERMINING THE VARIABLE PERCENTAGES REPRESENTED
    17     BY THE TERMS "X" AND "Y" IN THE FORM OF THE QUESTION CHOSEN
    18     BY THE SCHOOL DISTRICT:
    19             (I)  IF A SCHOOL DISTRICT FAILS TO TAKE ANY ACTION
    20         UNDER SECTION 611-A(A), THE REFERENDUM QUESTION SUBMITTED
    21         TO THE VOTERS SHALL BE IN ONE OF THE FOLLOWING FORMS:
    22                 (A)  DO YOU FAVOR IMPOSITION AND COLLECTION OF AN
    23             INCREASE IN THE EARNED INCOME AND NET PROFITS TAX OF
    24             ONE TENTH OF ONE PERCENT (.1%) IN ORDER TO OBTAIN
    25             STATE MATCHING FUNDS IN A MULTIPLE DETERMINED BY THE
    26             LEVEL OF PROCEEDS IN THE PROPERTY TAX RELIEF FUND TO
    27             PROVIDE FOR RESIDENTIAL PROPERTY TAX RELIEF?
    28                 (B)  DO YOU FAVOR IMPOSITION AND COLLECTION OF AN
    29             EARNED INCOME AND NET PROFITS TAX OF ONE TENTH OF ONE
    30             PERCENT (.1%) IN ORDER TO OBTAIN STATE MATCHING FUNDS
    20030H0113B2814                 - 52 -     

     1             IN A MULTIPLE DETERMINED BY THE LEVEL OF PROCEEDS IN
     2             THE PROPERTY TAX RELIEF FUND TO PROVIDE FOR
     3             RESIDENTIAL PROPERTY TAX RELIEF?
     4             (II)  IF A SCHOOL DISTRICT HAS IMPOSED THE TAX
     5         AUTHORIZED UNDER SECTION 611-A(A)(1) OR IF THE ELECTORS
     6         HAVE APPROVED THE IMPOSITION OF THE TAX UNDER SUBSECTION
     7         (B)(2)(I), A REFERENDUM QUESTION MAY BE SUBMITTED TO THE
     8         VOTERS IN ONE OF THE FOLLOWING FORMS:
     9                 (A)  DO YOU FAVOR THE IMPOSITION OF AN X% EARNED
    10             INCOME AND NET PROFITS TAXES IN ORDER TO PROVIDE
    11             FURTHER RESIDENTIAL PROPERTY TAX REDUCTIONS OF UP TO
    12             Y%?
    13                 (B)  DO YOU FAVOR CONVERTING THE SCHOOL
    14             DISTRICT'S CURRENT EARNED INCOME AND NET PROFITS TAX
    15             INTO A PERSONAL INCOME TAX AT X% IN ORDER TO GENERATE
    16             FUNDS TO PROVIDE FOR RESIDENTIAL PROPERTY TAX
    17             REDUCTIONS OF Y% IN ADDITION TO REPLACING THE REVENUE
    18             FROM THE CURRENT EARNED INCOME AND NET PROFITS TAX?
    19         (3)  A NONLEGAL INTERPRETATIVE STATEMENT SHALL ACCOMPANY
    20     THE REFERENDUM QUESTION IN ACCORDANCE WITH SECTION 201.1 OF
    21     THE ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
    22     PENNSYLVANIA ELECTION CODE.
    23     (C)  SEGREGATED AMOUNTS.--WHEN THE REFERENDUM UNDER
    24  SUBSECTION (B)(2)(I) HAS BEEN APPROVED, THE NEW TAX RATE SHALL
    25  BE SELF-EXECUTING AND SHALL BE EFFECTIVE THE FIRST DAY OF JULY
    26  AFTER THE CERTIFICATION UNDER SECTION 603-B IS MADE IN AN AMOUNT
    27  GREATER THAN ZERO, AND EACH SCHOOL YEAR THEREAFTER. COLLECTIONS
    28  OF THE NEW TAX SHALL BE HELD IN A SEGREGATED ACCOUNT OF THE
    29  SCHOOL DISTRICT AND USED IN CONJUNCTION WITH ITS PROPERTY TAX
    30  REDUCTION ALLOCATION FROM THE COMMONWEALTH ONLY FOR HOMESTEAD
    20030H0113B2814                 - 53 -     

     1  AND FARMSTEAD PROPERTY TAX RELIEF. NO PROPERTY TAX REDUCTION
     2  ALLOCATION SHALL BE PAID TO THE SCHOOL DISTRICT UNTIL IT
     3  RATIFIES THE REFERENDUM BY RESOLUTION AND PASSES THE RESOLUTION
     4  REQUIRED UNDER SUBSECTION (D).
     5     (D)  RESOLUTION IMPLEMENTING TAX PROVISIONS REQUIRED.--THE
     6  BOARD OF SCHOOL DIRECTORS SHALL, WITHIN 30 DAYS OF THE
     7  CERTIFICATION OF THE PASSAGE OF THE REFERENDUM REQUIRED BY
     8  SUBSECTION (B)(2), ADOPT A RESOLUTION IMPLEMENTING THE TAX.
     9  FAILURE TO ADOPT A RESOLUTION SHALL SUSPEND THE SCHOOL
    10  DISTRICT'S RIGHT TO RECEIVE THE DISTRIBUTION OF ITS PROPERTY TAX
    11  REDUCTION ALLOCATION UNDER ARTICLE VI-B UNTIL A RESOLUTION IS
    12  ADOPTED. THE SCHOOL DISTRICT'S ALLOCATION SHALL BE RESERVED BY
    13  THE DEPARTMENT OF EDUCATION IN A SEPARATE ACCOUNT FOR PAYMENT
    14  WHEN THE SCHOOL DISTRICT SATISFIES THE REQUIREMENTS OF THIS
    15  SUBSECTION.
    16     (E)  PUBLIC REFERENDUM REQUIREMENTS TO END PARTICIPATION
    17  UNDER THIS SUBDIVISION.--AFTER A PERIOD OF AT LEAST FOUR FULL
    18  FISCAL YEARS OF THE TAX BEING LEVIED AND SUBJECT TO THE NOTICE
    19  AND PUBLIC HEARING REQUIREMENTS IN SECTION 4 OF THE LOCAL TAX
    20  ENABLING ACT, A BOARD OF SCHOOL DIRECTORS MAY ELECT TO END
    21  PARTICIPATION UNDER THIS SUBDIVISION BY OBTAINING THE APPROVAL
    22  OF THE ELECTORATE OF THE AFFECTED SCHOOL DISTRICT IN A PUBLIC
    23  REFERENDUM AT A MUNICIPAL ELECTION.
    24     (F)  EFFECT ON CERTAIN SCHOOL DISTRICTS.--
    25         (1)  THIS SECTION SHALL NOT APPLY TO A SCHOOL DISTRICT OF
    26     THE FIRST CLASS.
    27         (2)  EXCEPT FOR SUBSECTIONS (B)(2)(I), (G) AND (H), THIS
    28     SECTION SHALL NOT APPLY TO A SCHOOL DISTRICT IN WHICH A
    29     REFERENDUM QUESTION UNDER 53 PA.C.S. § 8703 (RELATING TO
    30     ADOPTION OF REFERENDUM) HAS BEEN APPROVED AND IMPLEMENTED.
    20030H0113B2814                 - 54 -     

     1     (G)  ELECTION.--A SCHOOL DISTRICT IN WHICH A REFERENDUM
     2  QUESTION UNDER 53 PA.C.S. § 8703 HAS BEEN APPROVED AND
     3  IMPLEMENTED MAY, BY RESOLUTION, MAKE AN ELECTION TO ADOPT THE
     4  PROVISIONS OF SECTION 611-A. THE ADOPTION OF A RESOLUTION
     5  AUTHORIZING ELECTION UNDER THIS ARTICLE SHALL HAVE THE SAME
     6  EFFECT AS A PUBLIC REFERENDUM QUESTION UNDER THIS SECTION
     7  RECEIVING A MAJORITY VOTE, AND THE PROVISIONS OF THIS ARTICLE
     8  SHALL APPLY IN A MANNER DESIGNED TO ATTAIN THAT OUTCOME. IF A
     9  SCHOOL BOARD OF DIRECTORS MAKES AN ELECTION UNDER THIS
    10  SUBSECTION, THE SCHOOL DISTRICT SHALL NO LONGER BE REQUIRED TO
    11  IMPLEMENT THE PROVISIONS OF 53 PA.C.S. CH. 87.
    12     (H)  EFFECT OF ELECTION ON EXISTING TAX RATES AND
    13  EXCLUSIONS.--EXCEPT AS AUTHORIZED UNDER THIS ARTICLE, AN
    14  ELECTION UNDER SUBSECTION (G) SHALL AFFECT NEITHER THE RATE OF
    15  THE EARNED INCOME AND NET PROFITS TAX IMPOSED PRIOR TO SUCH
    16  ELECTION NOR SHALL IT AFFECT THE AMOUNT OF THE HOMESTEAD
    17  EXCLUSION OR FARMSTEAD EXCLUSION ENACTED PRIOR TO SUCH ELECTION.
    18     (I)  ELECTION CODE PROVISIONS.--PROCEEDINGS UNDER THIS
    19  SECTION SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF THE ACT OF
    20  JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA
    21  ELECTION CODE.
    22  SECTION 614-A.  PUBLIC REFERENDUM REQUIREMENTS FOR INCREASING
    23                     CERTAIN TAXES.
    24     (A)  APPLICABILITY.--THIS SECTION SHALL APPLY TO THE BOARD OF
    25  SCHOOL DIRECTORS OF A SCHOOL DISTRICT THAT HAS BEEN NOTIFIED BY
    26  THE DEPARTMENT THAT IT WILL RECEIVE A PROPERTY TAX REDUCTION
    27  ALLOCATION UNDER SECTION 604-B(B) AND:
    28         (1)  THE TAX UNDER SECTION 611-A(A)(1) IS ENACTED; OR
    29         (2)  A REFERENDUM UNDER SECTION 613-A IS APPROVED.
    30     (B)  PROHIBITIONS.--EXCEPT AS SET FORTH IN SUBSECTION (E) OR
    20030H0113B2814                 - 55 -     

     1  (F), UNLESS THERE IS COMPLIANCE WITH SUBSECTION (C), A BOARD OF
     2  SCHOOL DIRECTORS MAY NOT DO ANY OF THE FOLLOWING:
     3         (1)  INCREASE THE RATE OF A TAX LEVIED FOR THE SUPPORT OF
     4     THE PUBLIC SCHOOLS BY MORE THAN THE PERCENTAGE INCREASE IN
     5     THE INDEX IN THE PRECEDING YEAR.
     6         (2)  LEVY A TAX FOR THE SUPPORT OF THE PUBLIC SCHOOLS
     7     WHICH WAS NOT LEVIED IN THE FISCAL YEAR IN WHICH A REFERENDUM
     8     UNDER SECTION 613-A WAS APPROVED OR A TAX UNDER SECTION 611-
     9     A(A)(1) WAS IMPOSED.
    10         (3)  RAISE THE RATE OF THE EARNED INCOME AND NET PROFITS
    11     TAX, IF ALREADY IMPOSED UNDER THE AUTHORITY OF SECTION 13 OF
    12     THE LOCAL TAX ENABLING ACT, EXCEPT AS OTHERWISE PROVIDED FOR
    13     UNDER SECTION 621-A.
    14         (4)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE
    15     TO THE CONTRARY, THE ADOPTION OF A REFERENDUM UNDER SECTION
    16     613-A CONFERS ON THE BOARD OF SCHOOL DIRECTORS THE AUTHORITY
    17     TO RAISE INCOME TAXES ONLY TO THE EXTENT CONTAINED IN THE
    18     LANGUAGE OF THE REFERENDUM AND ANY FUTURE, ADDITIONAL
    19     INCREASE OF THE INCOME TAX TO BE USED FOR THE SOLE PURPOSE OF
    20     PROPERTY TAX REDUCTION SHALL BE REQUIRED TO BE SUBMITTED TO
    21     THE VOTERS AT A SUBSEQUENT REFERENDUM PURSUANT TO THE
    22     PROVISIONS OF SECTION 613-A.
    23     (C)  REFERENDUM.--
    24         (1)  IN ORDER TO TAKE AN ACTION UNDER SUBSECTION (B)(1),
    25     AT THE ELECTION IMMEDIATELY PRECEDING THE START OF THE SCHOOL
    26     DISTRICT FISCAL YEAR IN WHICH THE PROPOSED TAX INCREASE WOULD
    27     TAKE EFFECT, A REFERENDUM STATING THE SPECIFIC RATE OR RATES
    28     OF THE TAX INCREASE MUST BE SUBMITTED TO THE ELECTORS
    29     RESIDING IN THE SCHOOL DISTRICT.
    30         (2)  IN ORDER TO TAKE AN ACTION UNDER SUBSECTION (B)(2),
    20030H0113B2814                 - 56 -     

     1     AT THE ELECTION IMMEDIATELY PRECEDING THE START OF THE SCHOOL
     2     DISTRICT FISCAL YEAR IN WHICH THE PROPOSED TAX WOULD TAKE
     3     EFFECT, A REFERENDUM STATING THE SPECIFIC TAX AND RATE TO BE
     4     LEVIED MUST BE SUBMITTED TO THE ELECTORS RESIDING IN THE
     5     SCHOOL DISTRICT.
     6         (3)  PROCEEDINGS UNDER THIS SECTION SHALL BE IN
     7     ACCORDANCE WITH THE PROVISIONS OF THE ACT OF JUNE 3, 1937
     8     (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION CODE.
     9     (D)  FAILURE TO APPROVE REFERENDUM.--
    10         (1)  IF THERE IS NO APPROVAL UNDER SUBSECTION (C)(1), THE
    11     BOARD OF SCHOOL DIRECTORS MAY APPROVE AN INCREASE IN THE TAX
    12     RATE OF NOT MORE THAN THE PERCENTAGE INCREASE IN THE INDEX IN
    13     THE PRECEDING YEAR.
    14         (2)  IF THERE IS NO APPROVAL UNDER SUBSECTION (C)(2), THE
    15     BOARD OF SCHOOL DIRECTORS MAY NOT LEVY THE TAX.
    16     (E)  EXCEPTION TO GENERAL RULE.--THE PROVISIONS OF SUBSECTION
    17  (B)(1) SHALL NOT APPLY TO AN INCREASE IN THE RATE OF ANY TAX
    18  LEVIED FOR THE SUPPORT OF THE PUBLIC SCHOOLS WHICH IS LESS THAN
    19  OR EQUAL TO THE PERCENTAGE INCREASE IN THE INDEX IN THE
    20  PRECEDING YEAR. PRIOR TO ANY INCREASE UNDER THIS SUBSECTION, THE
    21  BOARD OF SCHOOL DIRECTORS SHALL CERTIFY TO THE DEPARTMENT OF
    22  EDUCATION THE ESTIMATES OF LOCAL TAX RATES UNDER THIS
    23  SUBSECTION. THE DEPARTMENT OF EDUCATION MAY, ON ITS OWN MOTION
    24  OR ON PETITION OF A PERSON HAVING STANDING UNDER SUBSECTION (J),
    25  REVISE THE ESTIMATES CERTIFIED BY THE BOARD OF SCHOOL DIRECTORS
    26  AND REDUCE THE ALLOWABLE INCREASE IN THE RATE OF ANY TAX UNDER
    27  THIS SUBSECTION.
    28     (F)  REFERENDUM EXCEPTIONS.--THE PROVISIONS OF SUBSECTION
    29  (B)(1) SHALL NOT APPLY TO AN INCREASE IN THE RATE OF ANY TAX
    30  LEVIED FOR THE SUPPORT OF THE PUBLIC SCHOOLS WHERE THE INCREASE
    20030H0113B2814                 - 57 -     

     1  AUTHORIZED UNDER SUBSECTION (E) IS INSUFFICIENT TO RESPOND TO
     2  ONE OR MORE OF THE FOLLOWING CONDITIONS:
     3         (1)  TO RESPOND TO OR RECOVER FROM AN EMERGENCY OR
     4     DISASTER DECLARED PURSUANT TO 35 PA.C.S. § 7301 (RELATING TO
     5     GENERAL AUTHORITY OF GOVERNOR) OR 75 PA.C.S. § 6108 (RELATING
     6     TO POWER OF GOVERNOR DURING EMERGENCY), ONLY FOR THE DURATION
     7     OF THE EMERGENCY OR DISASTER.
     8         (2)  TO IMPLEMENT A COURT ORDER OR AN ADMINISTRATIVE
     9     ORDER FROM A FEDERAL OR STATE AGENCY THAT REQUIRES THE
    10     EXPENDITURE OF FUNDS THAT EXCEED CURRENT AVAILABLE REVENUES,
    11     PROVIDED THAT THE RATE INCREASE IS RESCINDED FOLLOWING
    12     FULFILLMENT OF THE COURT ORDER OR ADMINISTRATIVE ORDER.
    13         (3)  AS FOLLOWS:
    14             (I)  TO PAY INTEREST AND PRINCIPAL ON ANY
    15         INDEBTEDNESS INCURRED UNDER 53 PA.C.S. PT. VII SUBPT. B
    16         (RELATING TO INDEBTEDNESS AND BORROWING) PRIOR TO THE
    17         EFFECTIVE DATE OF THIS SECTION, PROVIDED THAT IN NO CASE
    18         MAY THE SCHOOL DISTRICT INCUR ADDITIONAL DEBT UNDER THIS
    19         PARAGRAPH, EXCEPT FOR THE REFINANCING OF EXISTING DEBT,
    20         INCLUDING THE PAYMENT OF COSTS AND EXPENSES RELATED TO
    21         SUCH REFINANCING AND THE ESTABLISHMENT OR FUNDING OF
    22         APPROPRIATE DEBT SERVICE RESERVES AND PROVIDED FURTHER
    23         THAT THE INCREASE IS RESCINDED FOLLOWING THE FINAL
    24         PAYMENT OF INTEREST AND PRINCIPAL.
    25             (II)  TO PAY INTEREST AND PRINCIPAL ON ANY ELECTORAL
    26         DEBT INCURRED UNDER 53 PA.C.S. PT VII SUBPT. B.
    27             (III)  TO PAY INTEREST AND PRINCIPAL ON ANY
    28         INDEBTEDNESS INCURRED FOR SCHOOL CONSTRUCTION PROJECTS
    29         UNDER 22 PA. CODE CH. 21 (RELATING TO SCHOOL BUILDINGS),
    30         WHETHER SUCH INDEBTEDNESS IS INCURRED BEFORE OR AFTER THE
    20030H0113B2814                 - 58 -     

     1         ENACTMENT OF THIS ARTICLE, WHEN THE PROJECT HAS RECEIVED
     2         PLAN CON A APPROVAL BY THE DEPARTMENT OF EDUCATION PRIOR
     3         TO THE EFFECTIVE DATE OF THIS SECTION AND TO ESTABLISH
     4         AND FUND APPROPRIATE DEBT SERVICE RESERVED, PROVIDED THAT
     5         THE INCREASE IS RESCINDED FOLLOWING FINAL PAYMENT OF
     6         INTEREST AND PRINCIPAL.
     7             (IV)  THE EXCEPTION PROVIDED UNDER THIS PARAGRAPH MAY
     8         NOT BE USED IN LIEU OF THE REFERENDUM UNDER SUBSECTION
     9         (C)(2) TO PAY FOR COSTS WHICH COULD NOT BE FINANCED BY
    10         THE ISSUANCE OF DEBT UNDER 53 PA.C.S. (RELATING TO
    11         MUNICIPALITIES GENERALLY).
    12         (4)  TO RESPOND TO CONDITIONS THAT POSE AN IMMEDIATE
    13     THREAT OF SERIOUS PHYSICAL HARM OR INJURY TO THE STUDENTS,
    14     STAFF OR RESIDENTS OF THE SCHOOL DISTRICT, BUT ONLY UNTIL THE
    15     CONDITIONS CAUSING THE THREAT HAVE BEEN FULLY RESOLVED.
    16         (5)  SPECIAL PURPOSE TAX LEVIES APPROVED BY THE
    17     ELECTORATE.
    18         (6)  TO PAY COSTS ATTRIBUTABLE TO AN INCREASE IN THE SUM
    19     OF SELECTED SCHOOL EXPENDITURES WHERE SUCH EXPENDITURES
    20     EXCEED THE SUM OF SELECTED STATE ALLOCATIONS AS DEFINED IN
    21     THIS PARAGRAPH.
    22             (I)  FOR THE PURPOSES OF THIS PARAGRAPH, SUCH
    23         "SELECTED SCHOOL EXPENDITURES" SHALL INCLUDE ANY INCREASE
    24         OR DECREASE IN COSTS ASSOCIATED WITH:
    25                 (A)  NEW, UNFUNDED FEDERAL MANDATED EDUCATIONAL
    26             PROGRAMS;
    27                 (B)  PAYMENTS MADE TO CHARTER SCHOOLS OR CYBER
    28             CHARTER SCHOOLS AS DEFINED UNDER ARTICLE XVII-A;
    29                 (C)  PAYMENTS MADE TO INTERMEDIATE UNITS OR
    30             COMMUNITY COLLEGES FOR VOCATIONAL EDUCATION EXPENSES;
    20030H0113B2814                 - 59 -     

     1                 (D)  CHANGES IN THE PAYMENTS ON BEHALF OF ACTIVE
     2             MEMBERS OF THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT
     3             SYSTEM AS REQUIRED PURSUANT TO 24 PA.C.S. § 8327
     4             (RELATING TO PAYMENTS BY EMPLOYERS);
     5                 (E)  COSTS DIRECTLY RELATED TO THE PROVISION OF
     6             MANDATED SPECIAL EDUCATION PROGRAMS AND SERVICES TO
     7             STUDENTS WITH DISABILITIES, EXCLUDING COSTS UNDER
     8             CLAUSE (F); AND
     9                 (F)  COSTS DIRECTLY ATTRIBUTABLE TO A COLLECTIVE
    10             BARGAINING AGREEMENT IN EFFECT ON THE EFFECTIVE DATE
    11             OF THIS ARTICLE, BETWEEN A SCHOOL DISTRICT AND ITS
    12             EMPLOYEE ORGANIZATION. THIS CLAUSE SHALL NOT APPLY TO
    13             A COLLECTIVE BARGAINING AGREEMENT RENEWED, EXTENDED
    14             OR ENTERED INTO AFTER THE EFFECTIVE DATE OF THIS
    15             ARTICLE.
    16             (II)  FOR THE PURPOSES OF THIS PARAGRAPH, "SELECTED
    17         STATE ALLOCATIONS" SHALL INCLUDE ANY INCREASE OR DECREASE
    18         IN PAYMENTS PROVIDED THROUGH THE BASIC EDUCATION FUNDING
    19         ALLOCATION, SPECIAL EDUCATION FUNDING ALLOCATION AND
    20         PROVIDED UNDER SECTIONS 2502.16, 2502.30, 2541, 2542,
    21         2543, 2572 AND 2591.1 BETWEEN THE SCHOOL YEAR PRIOR TO
    22         THE SCHOOL YEAR IN WHICH AN EXCEPTION UNDER THIS
    23         PARAGRAPH IS SOUGHT AND THE SCHOOL YEAR IN WHICH AN
    24         EXCEPTION UNDER THIS PARAGRAPH IS SOUGHT.
    25         (7)  (I)  TO MAINTAIN PER-STUDENT LOCAL TAX REVENUE IN
    26         THE SCHOOL DISTRICT AT AN AMOUNT NOT EXCEEDING THE AMOUNT
    27         OF PER-STUDENT LOCAL TAX REVENUE AT THE LEVEL OF THE
    28         PRECEDING YEAR, ADJUSTED FOR THE PERCENTAGE INCREASE IN
    29         THE INDEX IN THE PRECEDING YEAR.
    30             (II)  THIS PARAGRAPH SHALL APPLY ONLY IF THE
    20030H0113B2814                 - 60 -     

     1         PERCENTAGE GROWTH IN AVERAGE DAILY MEMBERSHIP IN THE
     2         SCHOOL DISTRICT BETWEEN THE CURRENT FISCAL YEAR AND THE
     3         THIRD FISCAL YEAR IMMEDIATELY PRECEDING THE CURRENT
     4         FISCAL YEAR EXCEEDS 5%. FOR THE PURPOSES OF THIS
     5         PARAGRAPH, PER-STUDENT LOCAL TAX REVENUE SHALL BE
     6         DETERMINED BY DIVIDING LOCAL TAX REVENUE BY AVERAGE DAILY
     7         MEMBERSHIP.
     8         (8)  TO COMPENSATE FOR A ONE-YEAR DECREASE OF 10% OR MORE
     9     IN THE SCHOOL DISTRICT'S REAL PROPERTY TAX BASE. FOR THE
    10     PURPOSES OF THIS PARAGRAPH, THE DECREASE SHALL BE MEASURED BY
    11     THE PERCENT CHANGE IN THE ASSESSED VALUE OF ALL TAXABLE
    12     PROPERTY WITHIN THE SCHOOL DISTRICT BETWEEN THE FISCAL YEAR
    13     IN WHICH AN EXCEPTION UNDER THIS PARAGRAPH IS SOUGHT AND THE
    14     FISCAL YEAR IMMEDIATELY PRECEDING THE FISCAL YEAR IN WHICH AN
    15     EXCEPTION UNDER THIS PARAGRAPH IS SOUGHT.
    16     (G)  REVENUE DERIVED FROM INCREASE.--ANY REVENUE DERIVED FROM
    17  AN INCREASE IN THE RATE OF ANY TAX ALLOWED PURSUANT TO AN
    18  EXCEPTION UNDER SUBSECTION (F)(3) OR (5) SHALL NOT EXCEED THE
    19  ANTICIPATED DOLLAR VALUE OF THE EXPENDITURE FOR WHICH THE
    20  EXCEPTION UNDER SUBSECTION (F) WAS SOUGHT.
    21     (H)  LIMITATION ON RATE.--THE INCREASE IN THE RATE OF ANY TAX
    22  ALLOWED PURSUANT TO AN EXCEPTION UNDER SUBSECTION (F)(1), (2),
    23  (4), (6), (7) OR (8) SHALL NOT EXCEED THE RATE INCREASE REQUIRED
    24  AS DETERMINED BY A COURT OF COMMON PLEAS PURSUANT TO SUBSECTION
    25  (I).
    26     (I)  COURT ACTION.--PRIOR TO THE IMPOSITION OF THE TAX
    27  INCREASE UNDER SUBSECTION (F)(1), (2), (4), (6), (7) OR (8),
    28  APPROVAL BY THE COURT OF COMMON PLEAS IN THE JUDICIAL DISTRICT
    29  IN WHICH THE ADMINISTRATIVE OFFICE OF THE SCHOOL DISTRICT IS
    30  LOCATED MUST BE OBTAINED. THE BOARD OF SCHOOL DIRECTORS SHALL
    20030H0113B2814                 - 61 -     

     1  PUBLISH IN A NEWSPAPER OF GENERAL CIRCULATION A NOTICE OF ITS
     2  INTENT TO FILE AN ACTION UNDER THIS SUBSECTION AT LEAST ONE WEEK
     3  PRIOR TO THE FILING OF THE PETITION. THE BOARD OF SCHOOL
     4  DIRECTORS SHALL ALSO PUBLISH IN A NEWSPAPER OF GENERAL
     5  CIRCULATION NOTICE, AS SOON AS POSSIBLE FOLLOWING NOTIFICATION
     6  FROM THE COURT THAT A HEARING HAS BEEN SCHEDULED, STATING THE
     7  DATE, TIME AND PLACE OF THE HEARING ON THE PETITION. THE
     8  FOLLOWING SHALL APPLY TO ANY PROCEEDINGS INSTITUTED UNDER THIS
     9  SUBSECTION:
    10         (1)  THE BOARD OF SCHOOL DIRECTORS MUST PROVE BY CLEAR
    11     AND CONVINCING EVIDENCE THE NECESSITY FOR THE TAX INCREASE.
    12         (2)  THE BOARD OF SCHOOL DIRECTORS MUST PROVE BY CLEAR
    13     AND CONVINCING EVIDENCE THE ANTICIPATED DOLLAR VALUE OF THE
    14     EXPENDITURE FOR WHICH AN EXCEPTION UNDER SUBSECTION (F) IS
    15     SOUGHT.
    16         (3)  THE BOARD OF SCHOOL DIRECTORS MUST PROVE BY CLEAR
    17     AND CONVINCING EVIDENCE THAT THERE ARE NO ASSETS OR OTHER
    18     FEASIBLE ALTERNATIVES AVAILABLE TO THE SCHOOL DISTRICT.
    19         (4)  THE COURT SHALL DETERMINE THE DOLLAR VALUE OF THE
    20     EXPENDITURE FOR WHICH AN EXCEPTION UNDER SUBSECTION (F) IS
    21     SOUGHT, THE RATE INCREASE REQUIRED AND THE APPROPRIATE
    22     DURATION OF THE INCREASE. THE COURT MAY RETAIN CONTINUING
    23     JURISDICTION AND MAY, ON ITS OWN MOTION OR ON PETITION OF AN
    24     INTERESTED PARTY, REVOKE APPROVAL FOR OR ORDER RESCISSION OF
    25     A TAX INCREASE.
    26     (J)  STANDING.--A PERSON SHALL HAVE STANDING AS A PARTY TO A
    27  PROCEEDING UNDER THIS SECTION AS LONG AS THE PERSON RESIDES
    28  WITHIN OR PAYS REAL PROPERTY TAXES TO THE TAXING JURISDICTION OF
    29  THE BOARD OF SCHOOL DIRECTORS INSTITUTING THE ACTION.
    30     (K)  AVERAGED INDEX CALCULATION.--ON OR ABOUT JANUARY 15 OF
    20030H0113B2814                 - 62 -     

     1  EACH YEAR, THE DEPARTMENT OF EDUCATION SHALL CALCULATE THE
     2  AVERAGE OF THE PERCENTAGE INCREASES IN THE STATEWIDE AVERAGE
     3  WEEKLY WAGE AND THE PERCENTAGE INCREASE IN THE EMPLOYMENT COST
     4  INDEX FOR THE PREVIOUS 12-MONTH PERIOD. THE DEPARTMENT OF
     5  EDUCATION SHALL PUBLISH NOTICE OF THIS CALCULATED AVERAGE BY
     6  FEBRUARY 1 OF EACH YEAR IN THE PENNSYLVANIA BULLETIN.
     7  SECTION 615-A.  PROPERTY TAX LIMITS ON REASSESSMENT.
     8     AFTER ANY COUNTY MAKES A COUNTYWIDE REVISION OF ASSESSMENT OF
     9  REAL PROPERTY AT VALUES BASED UPON AN ESTABLISHED PREDETERMINED
    10  RATIO AS REQUIRED BY LAW OR AFTER ANY COUNTY CHANGES ITS
    11  ESTABLISHED PREDETERMINED RATIO, A BOARD OF SCHOOL DIRECTORS IN
    12  A SCHOOL DISTRICT WHICH HAS ADOPTED A RESOLUTION IMPOSING THE
    13  TAX UNDER SECTION 611-A(A)(1) OR IN WHICH A REFERENDUM UNDER
    14  SECTION 613-A HAS BEEN APPROVED, WHICH AFTER THE EFFECTIVE DATE
    15  OF THIS SECTION FOR THE FIRST TIME LEVIES ITS REAL ESTATE TAXES
    16  ON THAT REVISED ASSESSMENT OR VALUATION, SHALL FOR THE FIRST
    17  YEAR REDUCE ITS TAX RATE, IF NECESSARY, FOR THE PURPOSE OF
    18  HAVING THE PERCENTAGE INCREASE IN TAXES LEVIED FOR THAT YEAR
    19  AGAINST THE REAL PROPERTIES CONTAINED IN THE DUPLICATE FOR THE
    20  PRECEDING YEAR BE LESS THAN OR EQUAL TO THE PERCENTAGE INCREASE
    21  IN THE AVERAGE INDEX FOR THE PRECEDING YEAR NOTWITHSTANDING THE
    22  INCREASED VALUATIONS OF SUCH PROPERTIES UNDER THE REVISED
    23  ASSESSMENT. FOR THE PURPOSE OF DETERMINING THE TOTAL AMOUNT OF
    24  TAXES TO BE LEVIED FOR THE FIRST YEAR, THE AMOUNT TO BE LEVIED
    25  ON NEWLY CONSTRUCTED BUILDINGS OR STRUCTURES OR ON INCREASED
    26  VALUATIONS BASED ON NEW IMPROVEMENTS MADE TO EXISTING HOUSES
    27  NEED NOT BE CONSIDERED. THE TAX RATE SHALL BE FIXED FOR THAT
    28  YEAR AT A FIGURE WHICH WILL ACCOMPLISH THIS PURPOSE. THE
    29  PROVISIONS OF SECTION 614-A SHALL APPLY TO INCREASES IN THE TAX
    30  RATE ABOVE THE LIMITS PROVIDED IN THIS SECTION.
    20030H0113B2814                 - 63 -     

     1               (C)  EARNED INCOME AND NET PROFITS TAX
     2                       OR PERSONAL INCOME TAX
     3  SECTION 621-A.  AUTHORIZATION.
     4     (A)  GENERAL RULE.--A BOARD OF SCHOOL DIRECTORS MAY CHOOSE TO
     5  LEVY, ASSESS AND COLLECT A TAX ON EARNED INCOME AND NET PROFITS
     6  OR A PERSONAL INCOME TAX UNDER THIS SECTION.
     7     (B)  EARNED INCOME AND NET PROFITS TAX.--
     8         (1)  A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
     9     COLLECT A TAX ON EARNED INCOME AND NET PROFITS OF RESIDENT
    10     INDIVIDUALS OF THE SCHOOL DISTRICT AT THE RATE AND PURSUANT
    11     TO THE AUTHORITY PROVIDED IN SECTION 611-A(A)(1) WITHOUT
    12     SUBMITTING THE QUESTION TO THE VOTERS IN A REFERENDUM UNDER
    13     SECTION 613-A.
    14         (2)  A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
    15     COLLECT AN ADDITIONAL TAX ON THE EARNED INCOME AND NET
    16     PROFITS OF RESIDENT INDIVIDUALS OF THE SCHOOL DISTRICT.
    17         (3)  THE COMBINED RATE OF THE EARNED INCOME AND NET
    18     PROFITS TAX AUTHORIZED UNDER PARAGRAPHS (1) AND (2) SHALL NOT
    19     EXCEED THE RATE REQUIRED TO PROVIDE AN EXCLUSION FOR
    20     FARMSTEAD PROPERTY AND AN EXCLUSION FOR HOMESTEAD PROPERTY
    21     EQUAL TO THE MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586. THE
    22     BOARD OF SCHOOL DIRECTORS SHALL ROUND THE RATE OF THE EARNED
    23     INCOME AND NET PROFITS TAX LEVIED PURSUANT TO THIS SECTION TO
    24     THE NEAREST TENTH OF A PERCENT. THE EXCLUSION FOR FARMSTEAD
    25     PROPERTY GRANTED UNDER THIS SECTION SHALL NOT EXCEED THE
    26     AMOUNT GRANTED FOR THE EXCLUSION FOR HOMESTEAD PROPERTY.
    27     (C)  PERSONAL INCOME TAX.--
    28         (1)  A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
    29     COLLECT A TAX ON THE PERSONAL INCOME OF RESIDENT INDIVIDUALS
    30     OF THE SCHOOL DISTRICT AT A RATE DETERMINED BY THE BOARD OF
    20030H0113B2814                 - 64 -     

     1     SCHOOL DIRECTORS.
     2         (2)  THE PERSONAL INCOME TAX AUTHORIZED UNDER PARAGRAPH
     3     (1) SHALL EQUAL THE SUM OF THE RATE REQUIRED TO GENERATE THE
     4     SAME AMOUNT OF EARNED INCOME AND NET PROFITS TAX REVENUE
     5     RECEIVED BY THE SCHOOL DISTRICT PRIOR TO THE ADOPTION OF THIS
     6     SUBSECTION AND PURSUANT TO SECTION 611-A(A)(1) OR 613-
     7     A(B)(2)(I) AND TO PROVIDE AN EXCLUSION FOR FARMSTEAD PROPERTY
     8     AND AN EXCLUSION FOR HOMESTEAD PROPERTY THAT SHALL NOT EXCEED
     9     THE RATE REQUIRED TO PROVIDE AN EXCLUSION FOR FARMSTEAD
    10     PROPERTY AND AN EXCLUSION FOR HOMESTEAD PROPERTY EQUAL TO THE
    11     MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586. THE BOARD OF
    12     SCHOOL DIRECTORS SHALL ROUND THE RATE OF THE PERSONAL INCOME
    13     TAX PURSUANT TO THIS SECTION TO THE NEAREST TENTH OF A
    14     PERCENT. THE EXCLUSION FOR FARMSTEAD PROPERTY GRANTED UNDER
    15     THIS SECTION SHALL NOT EXCEED THE AMOUNT GRANTED FOR THE
    16     EXCLUSION FOR HOMESTEAD PROPERTY.
    17         (3)  IF A BOARD OF SCHOOL DIRECTORS ELECTS TO IMPOSE A
    18     PERSONAL INCOME TAX UNDER THIS SUBSECTION, THE BOARD OF
    19     SCHOOL DIRECTORS SHALL NOT BE PERMITTED TO IMPOSE THE EARNED
    20     INCOME AND NET PROFITS TAX UNDER SUBSECTION (B) OR UNDER THE
    21     LOCAL TAX ENABLING ACT.
    22         (4)  A PERSONAL INCOME TAX IMPOSED UNDER THE AUTHORITY OF
    23     THIS ARTICLE SHALL BE LEVIED AND ASSESSED ON THE SAME BASIS
    24     AND ADMINISTERED IN THE SAME FASHION AS THE TAX IMPOSED BY
    25     ARTICLE III OF THE TAX REFORM CODE, THE PROVISIONS OF WHICH
    26     ARE INCORPORATED BY REFERENCE INTO THIS ARTICLE.
    27             (I)  NOTWITHSTANDING THE PROVISIONS OF SECTION 353(F)
    28         OF THE TAX REFORM CODE, THE DEPARTMENT OF REVENUE MAY
    29         PERMIT THE PROPER OFFICER OF A SCHOOL DISTRICT IMPOSING A
    30         TAX PURSUANT TO THIS ARTICLE TO INSPECT THE TAX RETURNS
    20030H0113B2814                 - 65 -     

     1         OF ANY TAXPAYER OR MAY FURNISH TO THE OFFICER OR AN
     2         AUTHORIZED REPRESENTATIVE AN ABSTRACT OF THE RETURN OF
     3         INCOME OF ANY CURRENT OR FORMER RESIDENT OF THE SCHOOL
     4         DISTRICT, OR SUPPLY INFORMATION CONCERNING ANY ITEM OF
     5         INCOME CONTAINED IN ANY TAX RETURN. THE OFFICER OR
     6         AUTHORIZED AGENT OF THE SCHOOL DISTRICT IMPOSING A TAX
     7         UNDER THIS ARTICLE SHALL BE FURNISHED THE REQUESTED
     8         INFORMATION UPON PAYMENT TO THE DEPARTMENT OF THE COST OF
     9         COLLECTING AND REPRODUCING THE REQUESTED INFORMATION.
    10             (II)  (A)  EXCEPT FOR OFFICIAL PURPOSES OR AS
    11             PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR ANY
    12             OFFICER, AGENT OR EMPLOYEE OF A SCHOOL DISTRICT TO DO
    13             ANY OF THE FOLLOWING:
    14                     (I)  DISCLOSE THE AMOUNT OR SOURCE OF INCOME,
    15                 PROFITS, LOSSES, EXPENDITURES OR ANY PARTICULAR
    16                 INFORMATION CONCERNING INCOME, PROFITS, LOSSES OR
    17                 EXPENDITURES CONTAINED IN ANY RETURN.
    18                     (II)  PERMIT ANY RETURN OR COPY OF A RETURN
    19                 OR ANY BOOK CONTAINING ANY ABSTRACT OR
    20                 PARTICULARS TO BE SEEN OR EXAMINED.
    21                     (III)  PRINT OR PUBLISH IN ANY MANNER ANY
    22                 RETURN OR ANY PARTICULAR INFORMATION CONCERNING
    23                 THE RETURN.
    24                     (IV)  PRINT OR PUBLISH IN ANY MANNER ANY
    25                 AMOUNT OR SOURCE OF INCOME, PROFITS, LOSSES,
    26                 EXPENDITURES OR ANY PARTICULAR INFORMATION
    27                 CONCERNING INCOME, PROFITS, LOSSES OR
    28                 EXPENDITURES CONTAINED IN ANY RETURN.
    29                 (B)  ANY OFFICER, AGENT OR EMPLOYEE OF A SCHOOL
    30             DISTRICT THAT VIOLATES CLAUSE (A):
    20030H0113B2814                 - 66 -     

     1                     (I)  MAY BE FINED NOT MORE THAN $1,000 OR
     2                 IMPRISONED FOR NOT MORE THAN ONE YEAR, OR BOTH.
     3                     (II)  SHALL BE DISMISSED FROM OFFICE OR
     4                 DISCHARGED FROM EMPLOYMENT.
     5     (D)  PROHIBITIONS.--
     6         (1)  A SCHOOL DISTRICT THAT LEVIES A LOCAL PERSONAL
     7     INCOME TAX UNDER THIS SECTION SHALL HAVE NO POWER TO LEVY,
     8     ASSESS OR COLLECT THE EARNED INCOME AND NET PROFITS TAX UNDER
     9     THIS SECTION.
    10         (2)  PAYMENT OF ANY TAX ON INCOME TO ANY STATE OTHER THAN
    11     PENNSYLVANIA OR TO ANY POLITICAL SUBDIVISION LOCATED OUTSIDE
    12     THE BOUNDARIES OF THIS COMMONWEALTH, BY RESIDENTS OF A SCHOOL
    13     DISTRICT LOCATED IN PENNSYLVANIA SHALL NOT BE CREDITED TO AND
    14     ALLOWED AS A DEDUCTION FROM THE LIABILITY OF SUCH PERSON FOR
    15     ANY INCOME TAX IMPOSED BY THE SCHOOL DISTRICT OF RESIDENCE.
    16  SECTION 622-A.  COLLECTIONS.
    17     A BOARD OF SCHOOL DIRECTORS IMPOSING A TAX UNDER THIS ARTICLE
    18  SHALL DESIGNATE A TAX OFFICER UNDER SECTION 10 OF THE LOCAL TAX
    19  ENABLING ACT, OR OTHERWISE BY LAW, AS THE COLLECTOR OF THE
    20  EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX. IN THE
    21  PERFORMANCE OF THE TAX COLLECTION DUTIES UNDER THIS SUBDIVISION,
    22  THE DESIGNATED TAX OFFICER SHALL HAVE ALL THE SAME POWERS,
    23  RIGHTS, RESPONSIBILITIES AND DUTIES FOR THE COLLECTION OF THE
    24  TAXES WHICH MAY BE IMPOSED UNDER THE LOCAL TAX ENABLING ACT, 53
    25  PA.C.S. CH. 84 SUBCH. C (RELATING TO LOCAL TAXPAYERS BILL OF
    26  RIGHTS) OR AS OTHERWISE PROVIDED BY LAW.
    27  SECTION 623-A.  CREDITS AND REIMBURSEMENT.
    28     (A)  CREDIT.--THE PROVISIONS OF SECTION 14 OF THE LOCAL TAX
    29  ENABLING ACT SHALL BE APPLIED BY A BOARD OF SCHOOL DIRECTORS TO
    30  DETERMINE ANY CREDITS UNDER THE PROVISIONS OF THIS SUBDIVISION
    20030H0113B2814                 - 67 -     

     1  FOR A TAX IMPOSED UNDER SECTION 621-A.
     2     (B)  REIMBURSEMENT.--NOTWITHSTANDING ANY OTHER PROVISIONS OF
     3  LAW TO THE CONTRARY, THE FOLLOWING APPLY:
     4         (1)  THIS SUBSECTION ONLY APPLIES TO A TAXPAYER WHO IS A
     5     RESIDENT OF THIS COMMONWEALTH AND NOT A RESIDENT OF A CITY OF
     6     THE FIRST CLASS BUT WHO IS SUBJECT TO THE TAX ON SALARIES,
     7     WAGES, COMMISSIONS OR OTHER COMPENSATION IMPOSED BY A CITY OF
     8     THE FIRST CLASS UNDER THE AUTHORITY OF THE ACT OF AUGUST 5,
     9     1932 (SP.SESS., P.L.45, NO.45), REFERRED TO AS THE STERLING
    10     ACT.
    11         (2)  FOR TAXABLE YEARS BEGINNING IN THE FIRST CALENDAR
    12     YEAR IN WHICH A CERTIFICATION UNDER SECTION 603-B IS MADE IN
    13     AN AMOUNT GREATER THAN ZERO AND EACH TAXABLE YEAR THEREAFTER,
    14     PAYMENT OF A TAX ON SALARIES, WAGES, COMMISSION OR OTHER
    15     COMPENSATION AS SET FORTH IN PARAGRAPH (1) SHALL BE CREDITED
    16     TO THE SCHOOL DISTRICT OF THE TAXPAYER'S RESIDENCE AT AN
    17     AMOUNT NO GREATER THAN THE RATE OF TAX IMPOSED ON THE EARNED
    18     INCOME AND NET PROFITS OF THE TAXPAYER BY THE SCHOOL DISTRICT
    19     IN WHICH THE TAXPAYER RESIDES.
    20         (3)  AN AMOUNT EQUAL TO THE AGGREGATE AMOUNT OF THE TAX
    21     CREDITED UNDER PARAGRAPH (2) SHALL BE PAID FROM THE FUND TO
    22     THE SCHOOL DISTRICT OF RESIDENCE OF EACH TAXPAYER UNDER
    23     PARAGRAPH (1) FOR THE SOLE PURPOSE OF FUNDING HOMESTEAD AND
    24     FARMSTEAD EXCLUSIONS IN ACCORDANCE WITH THIS ARTICLE. THE
    25     DEPARTMENT OF EDUCATION SHALL PRESCRIBE PROCEDURES TO
    26     CALCULATE THE AMOUNT DUE TO EACH SCHOOL DISTRICT QUALIFYING
    27     UNDER THIS PARAGRAPH.
    28  SECTION 624-A.  EXEMPTION AND SPECIAL PROVISIONS.
    29     (A)  GENERAL RULE.--A SCHOOL DISTRICT THAT IMPOSES AN EARNED
    30  INCOME AND NET PROFITS TAX UNDER SECTION 621-A MAY EXEMPT FROM
    20030H0113B2814                 - 68 -     

     1  THE PAYMENT OF THAT TAX ANY PERSON WHOSE TOTAL INCOME FROM ALL
     2  SOURCES IS LESS THAN $10,000.
     3     (B)  APPLICABILITY.--THE PROVISIONS OF SECTION 304 OF THE TAX
     4  REFORM CODE SHALL APPLY TO THE LOCAL PERSONAL INCOME TAX BY ANY
     5  SCHOOL DISTRICT THAT LEVIES A TAX ON PERSONAL INCOME OF
     6  RESIDENTS UNDER SECTION 621-A(C).
     7  SECTION 625-A.  RULES AND REGULATIONS.
     8     A SCHOOL DISTRICT THAT IMPOSES:
     9         (1)  AN EARNED INCOME AND NET PROFITS TAX UNDER SECTION
    10     621-A SHALL BE SUBJECT TO ALL REGULATIONS ADOPTED UNDER
    11     SECTION 13 OF THE LOCAL TAX ENABLING ACT AND MAY ADOPT
    12     REGULATIONS FOR THE PROCESSING OF CLAIMS FOR CREDITS OR
    13     EXEMPTIONS UNDER SECTIONS 623-A AND 624-A; OR
    14         (2)  A PERSONAL INCOME TAX UNDER SECTION 621-A SHALL BE
    15     SUBJECT TO ALL REGULATIONS ADOPTED BY THE DEPARTMENT OF
    16     REVENUE IN ADMINISTERING THE TAX DUE TO THE COMMONWEALTH
    17     UNDER SECTION 302 OF THE TAX REFORM CODE.
    18  SECTION 626-A.  PROCEDURE AND ADMINISTRATION.
    19     (A)  LEVY.--IN ORDER TO LEVY OR INCREASE A TAX UNDER SECTION
    20  621-A, THE BOARD OF SCHOOL DIRECTORS MUST ADOPT A RESOLUTION
    21  REFERRING TO THIS SUBDIVISION PRIOR TO PLACING A REFERENDUM
    22  QUESTION ON THE BALLOT UNDER SECTION 613-A. PRIOR TO ADOPTING A
    23  RESOLUTION IMPOSING A TAX UNDER SECTION 621-A(B)(2) OR (C), THE
    24  BOARD OF SCHOOL DIRECTORS MUST GIVE PUBLIC NOTICE OF ITS INTENT
    25  TO ADOPT THE RESOLUTION IN THE MANNER PROVIDED BY SECTION 4 OF
    26  THE LOCAL TAX ENABLING ACT AND MUST CONDUCT AT LEAST ONE PUBLIC
    27  HEARING REGARDING THE PROPOSED ADOPTION OF THE RESOLUTION.
    28     (B)  CALCULATION.--FOR THE PURPOSES OF PROPOSING A REFERENDUM
    29  UNDER SECTION 613-A, THE BOARD OF SCHOOL DIRECTORS SHALL
    30  ESTIMATE THE MAXIMUM HOMESTEAD EXCLUSION PERMITTED UNDER 53
    20030H0113B2814                 - 69 -     

     1  PA.C.S. § 8586 (RELATING TO LIMITATIONS), THE PROPOSED HOMESTEAD
     2  EXCLUSION FOR THE SCHOOL DISTRICT AND THE PERCENTAGE REDUCTION
     3  IN RESIDENTIAL REAL PROPERTY TAXES.
     4     (C)  CONFLICT.--IN ANY SITUATION WHERE THERE IS A CONFLICT
     5  INVOLVING THE AUTHORITY CONFERRED ON A LOCAL TAX COLLECTOR, BY
     6  THE PROVISIONS OF THE LOCAL TAX ENABLING ACT AND THE TAX REFORM
     7  CODE, THE PROVISIONS OF THE LOCAL TAX ENABLING ACT SHALL
     8  CONTROL.
     9  SECTION 627-A.  DISPOSITION OF INCOME TAX REVENUE.
    10     (A)  FISCAL YEAR OF IMPLEMENTATION.--
    11         (1)  FOR THE FIRST FISCAL YEAR THAT A TAX IMPOSED
    12     PURSUANT TO SECTION 611-A(A)(1) OR A TAX AUTHORIZED PURSUANT
    13     TO SECTION 613-A IS IMPLEMENTED, AN INCREASE IN REVENUE
    14     RECEIVED BY A SCHOOL DISTRICT THAT IS DIRECTLY ATTRIBUTABLE
    15     TO ANY OF THE FOLLOWING SHALL BE USED BY THE SCHOOL DISTRICT
    16     TO PROVIDE FOR A REDUCTION IN THE SCHOOL DISTRICT PROPERTY
    17     TAX BY MEANS OF AN EXCLUSION FOR FARMSTEAD PROPERTY AND
    18     HOMESTEAD PROPERTY:
    19             (I)  IMPLEMENTATION OF A NEW TAX ON EARNED INCOME AND
    20         NET PROFITS.
    21             (II)  IMPLEMENTATION OF A NEW TAX ON PERSONAL INCOME.
    22             (III)  AN INCREASE IN THE RATE OF A TAX ON EARNED
    23         INCOME AND NET PROFITS.
    24             (IV)  A CONVERSION OF A TAX ON PERSONAL INCOME FROM A
    25         TAX ON EARNED INCOME AND NET PROFITS.
    26         (2)  IN THE SECOND FISCAL YEAR AND EACH FISCAL YEAR
    27     THEREAFTER, THE FUNDS DERIVED FROM THE SOURCES DELINEATED IN
    28     PARAGRAPH (1) SHALL BE USED TO THE EXTENT NECESSARY TO
    29     CONTINUE TO PROVIDE FOR A REDUCTION IN SCHOOL DISTRICT
    30     PROPERTY TAXES AT THE LEVEL ESTABLISHED IN THE IMMEDIATELY
    20030H0113B2814                 - 70 -     

     1     PRIOR FISCAL YEAR.
     2     (B)  SUBSEQUENT RATE INCREASES OR BASE CHANGES.--
     3         (1)  FOR THE FISCAL YEAR OF IMPLEMENTATION OF AN INCREASE
     4     IN THE RATE OF AN EXISTING TAX IMPOSED UNDER SECTION 621-A OR
     5     THE CONVERSION OF A TAX ON PERSONAL INCOME FROM A TAX ON
     6     EARNED INCOME AND NET PROFITS UNDER THIS ARTICLE, ALL REVENUE
     7     RECEIVED BY A SCHOOL DISTRICT DIRECTLY ATTRIBUTABLE TO THE
     8     INCREASED RATE OR CONVERSION SHALL BE USED TO REDUCE THE
     9     SCHOOL DISTRICT REAL PROPERTY TAX BY MEANS OF AN EXCLUSION
    10     FOR FARMSTEAD PROPERTY AND HOMESTEAD PROPERTY PURSUANT TO
    11     SECTION 621-A.
    12         (2)  IN THE SECOND FISCAL YEAR AFTER THE IMPLEMENTATION
    13     OF AN INCREASE REFERRED TO IN PARAGRAPH (1) AND EACH FISCAL
    14     YEAR THEREAFTER, THE FUNDS DERIVED FROM THE SOURCES
    15     DELINEATED IN PARAGRAPH (1) SHALL BE USED TO THE EXTENT
    16     NECESSARY TO CONTINUE TO PROVIDE FOR A REDUCTION IN SCHOOL
    17     DISTRICT PROPERTY TAXES AT THE LEVEL ESTABLISHED IN THE
    18     IMMEDIATELY PRIOR FISCAL YEAR.
    19     (C)  SCHOOL DISTRICT COSTS.--NOT MORE THAN 2% OF THE INCREASE
    20  IN REVENUE CALCULATED UNDER SUBSECTION (A)(1) MAY BE RETAINED BY
    21  THE SCHOOL DISTRICT TO OFFSET COSTS TO IMPLEMENT THIS ARTICLE.
    22     (D)  EXCLUSIVE USE.--ALL FUNDS RECEIVED BY A SCHOOL DISTRICT
    23  FROM THE FUND IN ANY FISCAL YEAR PURSUANT TO ITS PROPERTY TAX
    24  REDUCTION ALLOCATION SHALL BE USED EXCLUSIVELY TO PROVIDE FOR A
    25  REDUCTION IN THE SCHOOL DISTRICT REAL PROPERTY TAX BY MEANS OF
    26  AN EXCLUSION FROM FARMSTEAD PROPERTY AND HOMESTEAD PROPERTY
    27  PURSUANT TO THE PROVISIONS OF SUBDIVISION (D).
    28     (E)  EXCEPTION.--ANY SCHOOL DISTRICT WHOSE FISCAL YEAR BEGINS
    29  ON JANUARY 1, SHALL, IN LIEU OF REDUCING REAL PROPERTY TAXES BY
    30  MEANS OF AN EXCLUSION FROM FARMSTEAD PROPERTY AND HOMESTEAD
    20030H0113B2814                 - 71 -     

     1  PROPERTY, AS REQUIRED BY THIS SECTION, FOR ITS FIRST FISCAL YEAR
     2  IN WHICH THE SECRETARY OF THE BUDGET HAS CERTIFIED AN AMOUNT
     3  AVAILABLE FOR DISTRIBUTION UNDER SECTION 603-B(A)(1) PROVIDE FOR
     4  REBATES TO OWNERS OF FARMSTEAD PROPERTY AND HOMESTEAD PROPERTY.
     5  THE REBATES SHALL BE MAILED NO LATER THAN 180 DAYS FOLLOWING THE
     6  CERTIFICATION BY THE SECRETARY OF THE BUDGET.
     7                      (D)  HOMESTEAD EXCLUSION
     8  SECTION 691-A.  CHANGES TO THE AMOUNT OF THE HOMESTEAD
     9                     EXCLUSION.
    10     (A)  INCREASES IN THE HOMESTEAD EXCLUSION.--A SCHOOL DISTRICT
    11  MAY INCREASE THE AMOUNT OF THE EXCLUSION FOR HOMESTEAD PROPERTY
    12  REQUIRED PURSUANT TO SECTION 627-A CONSISTENT WITH THE
    13  PROHIBITIONS IN 53 PA.C.S. § 8586 (RELATING TO LIMITATIONS).
    14     (B)  DECREASES IN THE HOMESTEAD EXCLUSION.--A SCHOOL DISTRICT
    15  MAY ONLY REDUCE THE EXCLUSION FOR HOMESTEAD PROPERTY BELOW THE
    16  LEVEL AUTHORIZED PURSUANT TO SUBSECTION (C), SECTION 692-A(B)
    17  AND THE REFERENDUM AUTHORIZED UNDER SECTION 613-A, WHEN THE
    18  MEDIAN ASSESSED VALUE USED IN CALCULATING THE HOMESTEAD
    19  EXCLUSION DECREASES.
    20     (C)  REASSESSMENT.--AFTER A REVISION OF ASSESSMENTS BY MEANS
    21  OF REVALUING ALL PROPERTIES, THE GOVERNING BODY PROVIDING AN
    22  EXCLUSION FOR HOMESTEAD PROPERTY UNDER SECTION 613-A SHALL
    23  ADJUST THE AMOUNT OF THE EXCLUSION PURSUANT TO 53 PA.C.S. §
    24  8583(E) (RELATING TO EXCLUSION FOR HOMESTEAD PROPERTY).
    25     (D)  EXCESS FUNDING.--A SCHOOL DISTRICT WHICH COLLECTS OR
    26  ANTICIPATES COLLECTING REVENUE FROM TAXES AUTHORIZED UNDER THIS
    27  ARTICLE, TOGETHER WITH STATE FUNDS RECEIVED PURSUANT TO ARTICLE
    28  VI-B, IN AN AMOUNT GREATER THAN THAT NECESSARY TO PROVIDE FOR
    29  HOMESTEAD EXCLUSIONS EQUAL TO 100% OF THE AMOUNT AUTHORIZED
    30  PURSUANT TO THE CONSTITUTION OF PENNSYLVANIA SHALL USE SUCH
    20030H0113B2814                 - 72 -     

     1  EXCESS TO EITHER:
     2         (1)  REDUCE THE RATE OF ITS EARNED INCOME AND NET PROFITS
     3     TAX OR ITS PERSONAL INCOME TAX TO A LEVEL THAT RETURNS TO
     4     THOSE TAXPAYERS ALL EXCESS FUNDS; OR
     5         (2)  REDUCE THE MILLAGE RATE ON ALL TAXABLE REAL PROPERTY
     6     WITHIN THE SCHOOL DISTRICT TO THE EXTENT NECESSARY TO USE ALL
     7     THE EXCESS REVENUE FOR PROPERTY TAX RELIEF.
     8     (E)  REDUCTION IN FUNDING.--IN ANY YEAR SUBSEQUENT TO A YEAR
     9  IN WHICH AN INCOME TAX RATE WAS REDUCED PURSUANT TO SUBSECTION
    10  (D), IF THE REVENUE COLLECTED OR ANTICIPATED TO BE COLLECTED
    11  UNDER THIS ARTICLE AND ARTICLE VI-B FALLS BELOW THE AMOUNT
    12  NECESSARY TO MAINTAIN HOMESTEAD PROPERTY TAX EXCLUSIONS AT 100%
    13  OF THE MAXIMUM, THE SCHOOL DISTRICT MAY RERAISE THE RATE OF THE
    14  INCOME TAX SO REDUCED UP TO THE AMOUNT PREVIOUSLY REDUCED
    15  WITHOUT COMPLYING WITH THE REFERENDUM PROVISIONS OF SECTION 613-
    16  A OR 614-A.
    17  SECTION 692-A.  HOMESTEAD EXCLUSION PROCESS.
    18     (A)  NOTIFICATION TO PROPERTY OWNERS.--A BOARD OF SCHOOL
    19  DIRECTORS SHALL, BY FIRST CLASS MAIL, NOTIFY THE OWNERS OF EACH
    20  PARCEL OF PROPERTY WITHIN THE DISTRICT OF THE FOLLOWING
    21  INFORMATION AT A MINIMUM:
    22         (1)  THE RATE OF ADDITIONAL EARNED INCOME AND NET PROFITS
    23     TAX OR PERSONAL INCOME TAX AUTHORIZED PURSUANT TO SECTION
    24     611-A.
    25         (2)  THE ESTIMATED DOLLAR AMOUNT OF PROPERTY TAX RELIEF
    26     FOR EACH QUALIFYING HOMESTEAD AND FARMSTEAD PROPERTY. THIS
    27     INFORMATION SHALL BE ACCOMPANIED BY A STATEMENT THAT THE
    28     ACTUAL DOLLAR PROPERTY TAX RELIEF MAY BE AFFECTED BY THE
    29     TOTAL NUMBER OF APPLICATIONS RECEIVED AND APPROVED.
    30         (3)  THE REQUIREMENT TO SUBMIT A COMPLETED APPLICATION AS
    20030H0113B2814                 - 73 -     

     1     REQUIRED UNDER 53 PA.C.S. CH. 85 SUBCH. F (RELATING TO
     2     HOMESTEAD PROPERTY EXCLUSION) IN ORDER TO QUALIFY FOR THE
     3     PROPERTY TAX REDUCTIONS ESTIMATED IN PARAGRAPH (2).
     4  THE NOTICE REQUIRED BY THIS SECTION SHALL INCLUDE A COPY OF THE
     5  APPLICATION REQUIRED BY THE ASSESSOR OF THE COUNTY WHERE THE
     6  PROPERTY IS LOCATED AND THE INSTRUCTIONS FOR COMPLETING AND
     7  RETURNING THE APPLICATION. THE NOTICE REQUIRED BY THIS
     8  SUBSECTION SHALL BE MADE BY DECEMBER 15, 2003, AND AGAIN BY
     9  JANUARY 31, 2004.
    10     (B)  REVISIONS TO THE INITIAL CALCULATION OF HOMESTEAD AND
    11  FARMSTEAD EXCLUSION FOR SCHOOL DISTRICTS.--IF THE BOARD OF
    12  SCHOOL DIRECTORS IMPOSES A TAX UNDER SECTION 611-A(A)(1) OR IF
    13  THE ELECTORS OF A SCHOOL DISTRICT APPROVE A REFERENDUM QUESTION
    14  PURSUANT TO SECTION 613-A, THE BOARD OF SCHOOL DIRECTORS SHALL
    15  REVISE THE CALCULATION UTILIZED UNDER SECTION 626-A(B) WITH
    16  INFORMATION DERIVED FROM THE SUPPLEMENTAL REPORT FROM THE
    17  ASSESSOR UNDER THIS SECTION. SUCH REVISED CALCULATION SHALL BE
    18  USED TO PROVIDE HOMESTEAD AND FARMSTEAD EXCLUSIONS. WHERE THE
    19  TAX IMPOSED UNDER SECTION 621-A AND THE FUNDS DISTRIBUTED
    20  PURSUANT TO ARTICLE VI-B ARE INSUFFICIENT TO PROVIDE THE
    21  HOMESTEAD AND FARMSTEAD EXCLUSIONS AUTHORIZED THROUGH APPROVAL
    22  OF A REFERENDUM QUESTION, THE EXCLUSIONS MAY BE REDUCED
    23  ACCORDINGLY.
    24     (C)  APPEALS.--REAL PROPERTY FOR WHICH AN APPLICATION UNDER
    25  53 PA.C.S. § 8584 (RELATING TO ADMINISTRATION AND PROCEDURE) HAS
    26  BEEN FILED BY MARCH 1, 2004, SHALL BE DEEMED TO BE A HOMESTEAD
    27  PROPERTY OR FARMSTEAD PROPERTY, AS THE CASE MAY BE, FOR THE
    28  PURPOSES OF IMPLEMENTING A HOMESTEAD OR FARMSTEAD EXCLUSION
    29  UNDER 53 PA.C.S. § 8717 (RELATING TO DISPOSITION OF EARNED
    30  INCOME AND NET PROFITS TAX REVENUE) IN THE SCHOOL DISTRICT
    20030H0113B2814                 - 74 -     

     1  FISCAL YEAR BEGINNING JULY 1, 2004, UNLESS THE ASSESSOR DENIES
     2  THE APPLICATION WITHIN THE TIME PROVIDED BY LAW AND THE DENIAL
     3  IS UNAPPEALED OR UNAPPEALABLE. THE SCHOOL DISTRICT IS AUTHORIZED
     4  TO COLLECT TAXES, INTEREST AND PENALTIES RELATING TO A HOMESTEAD
     5  OR FARMSTEAD EXCLUSION THAT IS DENIED AFTER THE DENIAL IS
     6  UNAPPEALED OR UNAPPEALABLE.
     7     (D)  REPORTS.--IN ADDITION TO THE REPORT REQUIRED UNDER 53
     8  PA.C.S. § 8584(I), THE ASSESSOR SHALL BE REQUIRED TO PROVIDE A
     9  SUPPLEMENTAL REPORT CONTAINING THE INFORMATION REQUIRED UNDER 53
    10  PA.C.S. § 8584(I) FOR APPLICATIONS FILED BY MARCH 1, 2004. THE
    11  DATE OF THE SUPPLEMENTAL REPORT SHALL BE SET BY THE SCHOOL
    12  DISTRICT, BUT SHALL NOT BE EARLIER THAN JUNE 1, 2004.
    13     (E)  DUTIES OF ASSESSORS--THE ASSESSOR SHALL MAIL TO THE
    14  OWNER OF EACH HOMESTEAD PROPERTY AND FARMSTEAD PROPERTY FOR
    15  WHICH AN APPLICATION HAS BEEN SUBMITTED AND APPROVED PRIOR TO
    16  THE EFFECTIVE DATE OF THIS SECTION A NOTICE STATING THE DATE BY
    17  WHICH THE OWNER WOULD BE REQUIRED TO RESUBMIT AN APPLICATION TO
    18  MAINTAIN THE PROPERTY'S STATUS AS HOMESTEAD PROPERTY OR
    19  FARMSTEAD PROPERTY UNDER THE COUNTY'S SCHEDULE FOR REVIEW OR
    20  REAPPLICATION FOR HOMESTEAD AND FARMSTEAD EXCLUSIONS. THE NOTICE
    21  UNDER THIS SECTION SHALL BE MADE BY FIRST CLASS MAIL NO LATER
    22  THAN DECEMBER 15, 2003.
    23     (F)  PROHIBITION.--A COUNTY SHALL NOT REQUIRE AN APPLICATION
    24  FEE FOR THE SUBMISSION OR REVIEW OF APPLICATIONS SUBMITTED TO
    25  QUALIFY FOR A HOMESTEAD EXCLUSION OR FARMSTEAD EXCLUSION UNDER
    26  THIS ARTICLE OR UNDER 53 PA.C.S. CH. 85 SUBCH. F.
    27     (G)  APPLICABILITY.--WITH THE EXCEPTION OF SUBSECTIONS (A),
    28  (E) AND (F), THIS SECTION SHALL APPLY ONLY TO SCHOOL DISTRICTS
    29  IN WHICH THE BOARD OF SCHOOL DIRECTORS IMPOSES A TAX UNDER
    30  SECTION 611-A(A)(1).
    20030H0113B2814                 - 75 -     

     1                           (E)  REGISTER
     2  SECTION 693-A.  REGISTER FOR TAXES.
     3     (A)  GENERAL RULE.--THE DEPARTMENT OF COMMUNITY AND ECONOMIC
     4  DEVELOPMENT SHALL MAINTAIN AN OFFICIAL CONTINUING REGISTER
     5  SUPPLEMENTED ANNUALLY OF ALL EARNED INCOME AND NET PROFITS TAXES
     6  OR PERSONAL INCOME TAXES LEVIED UNDER SUBDIVISION (C).
     7     (B)  CONTENTS OF REGISTER.--THE REGISTER SHALL LIST:
     8         (1)  THE SCHOOL DISTRICTS LEVYING THE TAX.
     9         (2)  THE RATE OF TAX AS STATED IN THE RESOLUTION LEVYING
    10     THE TAX.
    11         (3)  THE RATE ON TAXPAYERS.
    12         (4)  THE NAME AND ADDRESS OF THE OFFICIAL RESPONSIBLE FOR
    13     ADMINISTERING THE COLLECTION OF THE TAX AND FROM WHOM
    14     INFORMATION, FORMS AND COPIES OF REGULATIONS ARE AVAILABLE.
    15  SECTION 694-A.  INFORMATION FOR REGISTER.
    16     INFORMATION FOR THE REGISTER SHALL BE FURNISHED BY THE SCHOOL
    17  DISTRICT TO THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
    18  AS PRESCRIBED BY THE DEPARTMENT. THE INFORMATION MUST BE
    19  RECEIVED BY THE DEPARTMENT NO LATER THAN JULY 15 OF EACH YEAR TO
    20  SHOW NEW TAX ENACTMENTS, REPEALS AND CHANGES. FAILURE TO COMPLY
    21  WITH THE FILING DATE MAY RESULT IN THE OMISSION OF THE TAX LEVY
    22  FROM THE REGISTER FOR THAT YEAR. FAILURE OF THE DEPARTMENT TO
    23  RECEIVE INFORMATION OF TAXES CONTINUED WITHOUT CHANGE MAY BE
    24  CONSTRUED BY THE DEPARTMENT TO MEAN THAT THE INFORMATION
    25  CONTAINED IN THE PREVIOUS REGISTER REMAINS IN FORCE.
    26  SECTION 695-A.  AVAILABILITY AND EFFECTIVE PERIOD OF REGISTER.
    27     THE REGISTER, WITH SUCH ANNUAL SUPPLEMENTS AS MAY BE REQUIRED
    28  BY NEW TAX ENACTMENTS, REPEALS OR CHANGES, SHALL BE AVAILABLE
    29  UPON REQUEST NO LATER THAN AUGUST 15 OF EACH YEAR. THE EFFECTIVE
    30  PERIOD FOR EACH REGISTER SHALL BE FROM JULY 1 OF THE YEAR IN
    20030H0113B2814                 - 76 -     

     1  WHICH IT IS ISSUED TO JUNE 30 OF THE FOLLOWING YEAR.
     2  SECTION 696-A.  EFFECT OF NONFILING.
     3     EMPLOYERS SHALL NOT BE REQUIRED BY ANY ORDINANCE TO WITHHOLD
     4  FROM THE COMPENSATION OF THEIR EMPLOYEES ANY LOCAL EARNED INCOME
     5  AND NET PROFITS TAX OR PERSONAL INCOME TAX IMPOSED UNDER
     6  SUBDIVISION (C) WHICH IS NOT LISTED IN THE REGISTER OR TO MAKE
     7  REPORTS OF COMPENSATION IN CONNECTION WITH TAXES NOT SO LISTED.
     8  IF THE REGISTER IS NOT AVAILABLE BY AUGUST 15, THE REGISTER OF
     9  THE PREVIOUS YEAR SHALL CONTINUE TO BE EFFECTIVE FOR AN
    10  ADDITIONAL PERIOD OF NOT MORE THAN ONE YEAR.
    11  SECTION 697-A.  EFFECT OF SUBDIVISION ON LIABILITY OF TAXPAYER.
    12     THE PROVISIONS OF THIS SUBDIVISION SHALL NOT BE CONSTRUED TO
    13  AFFECT THE LIABILITY OF ANY TAXPAYER FOR TAXES LAWFULLY IMPOSED
    14  UNDER SUBDIVISIONS (B) AND (C).
    15                            ARTICLE VI-B
    16                    STATE MATCHING FUNDS FORMULA
    17  SECTION 601-B.  SCOPE.
    18     THIS ARTICLE RELATES TO THE STATE MATCHING FUNDS FORMULA.
    19  SECTION 602-B.  DEFINITIONS.
    20     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    21  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    22  CONTEXT CLEARLY INDICATES OTHERWISE:
    23     "ALLOCATION MAXIMUM."  A NUMERICAL VALUE OF 0.4 PLUS THE
    24  MODIFIER CALCULATED UNDER SECTION 603-B(C)(2). THE VALUE,
    25  INCLUDING THE MAXIMUM MODIFIER, SHALL NOT EXCEED 0.6.
    26     "ALLOCATION MINIMUM."  A NUMERICAL VALUE OF 0.1 PLUS THE
    27  MODIFIER CALCULATED UNDER SECTION 603-B(C)(1). THE VALUE,
    28  INCLUDING THE MINIMUM MODIFIER, SHALL NOT EXCEED 0.15.
    29     "FUND."  THE PROPERTY TAX RELIEF FUND ESTABLISHED IN THE
    30  STATE TREASURY WHICH INCLUDES REVENUES FROM GAMING AS PROVIDED
    20030H0113B2814                 - 77 -     

     1  BY LAW.
     2     "INCOME TAX."  AS DEFINED IN SECTION 602-A.
     3     "MINIMUM LOCAL CONTRIBUTION."  THE REVENUES COLLECTED IN A
     4  FISCAL YEAR FROM THE IMPOSITION OF THE TAX AUTHORIZED UNDER
     5  SECTION 611-A(A)(1), REGARDLESS OF WHETHER SUCH TAX IS IMPOSED
     6  PURSUANT TO SECTION 611-A OR 613-A(B)(2)(I).
     7     "PROPERTY TAX REDUCTION INDEX."  A QUOTIENT EQUAL TO THE SUM
     8  OF THE NUMERICAL RANK OF A SCHOOL DISTRICT'S PERSONAL INCOME
     9  VALUATION PER AVERAGE DAILY MEMBERSHIP, THE NUMERICAL RANK OF
    10  ITS MARKET-VALUE/INCOME-AID RATIO, THE NUMERICAL RANK OF ITS
    11  EQUALIZED MILLAGE AND THE NUMERICAL RANK OF ITS SCHOOL TAX
    12  RATIO, DIVIDED BY 1,000.
    13     "RESIDENTIAL PROPERTY TAX."  THE DOLLAR VALUE OF REAL
    14  PROPERTY TAXES PAID BY RESIDENTIAL PROPERTY OWNERS IN A SCHOOL
    15  DISTRICT, DETERMINED BY MULTIPLYING THE REAL PROPERTY TAXES
    16  COLLECTED BY THE SCHOOL DISTRICT TIMES THE PERCENTAGE OF THE
    17  TOTAL PROPERTY VALUE IN THE SCHOOL DISTRICT CLASSIFIED AS
    18  RESIDENTIAL BY THE STATE TAX EQUALIZATION BOARD.
    19     "SCHOOL TAX RATIO."  THE DOLLAR VALUE OF LOCAL TAXES
    20  COLLECTED BY THE SCHOOL DISTRICT OR BY A CITY OF THE FIRST CLASS
    21  FOR A SCHOOL DISTRICT OF THE FIRST CLASS DIVIDED BY THE PERSONAL
    22  INCOME VALUATION OF THE SCHOOL DISTRICT.
    23  SECTION 603-B. CERTIFICATION; CALCULATION OF MINIMUM AND MAXIMUM
    24                 MODIFIERS.
    25     (A)  SECRETARY OF THE BUDGET CERTIFICATION.--THE FOLLOWING
    26  SHALL APPLY:
    27         (1)  NO LATER THAN MARCH 1, 2004, AND EACH MARCH 1
    28     THEREAFTER, THE SECRETARY OF THE BUDGET SHALL CERTIFY THE
    29     AMOUNT OF MONEY THAT WILL BE AVAILABLE FOR DISTRIBUTION TO
    30     SCHOOL DISTRICTS UNDER THIS ARTICLE DURING THE FISCAL YEAR
    20030H0113B2814                 - 78 -     

     1     BEGINNING THE FOLLOWING JULY 1. THE SECRETARY OF THE BUDGET,
     2     IN MAKING HIS CERTIFICATION, MAY TAKE INTO ACCOUNT MONEYS
     3     THAT ARE THEN IN THE FUND AND MONEYS THAT HE DETERMINES ON A
     4     SUSTAINABLE BASIS ARE REASONABLY EXPECTED TO BE DEPOSITED
     5     INTO THE FUND IN THE NEXT FOLLOWING FISCAL YEAR.
     6         (2)  THE MINIMUM THE SECRETARY OF THE BUDGET MAY CERTIFY
     7     UNDER THIS SUBSECTION IS $600,000,000. IF THE SECRETARY OF
     8     THE BUDGET DETERMINES THAT LESS THAN $600,000,000 IS
     9     AVAILABLE FOR DISTRIBUTION TO SCHOOL DISTRICTS UNDER THIS
    10     ARTICLE, HIS CERTIFICATION SHALL STATE THAT NO FUNDS ARE
    11     AVAILABLE FOR DISTRIBUTION.
    12         (3)  IF THE SECRETARY OF THE BUDGET CERTIFIES AN AMOUNT
    13     EQUAL TO OR EXCEEDING $750,000,000, HE SHALL ESTABLISH A
    14     MODIFIER VALUE FOR THE ALLOCATION MAXIMUM AND THE ALLOCATION
    15     MINIMUM UNDER SUBSECTION (C).
    16     (B)  SCHOOL DISTRICT CERTIFICATION.--THE FOLLOWING SHALL
    17  APPLY:
    18         (1)  SCHOOL DISTRICTS SHALL CERTIFY TO THE DEPARTMENT THE
    19     AMOUNT OF THE MINIMUM LOCAL CONTRIBUTION BY DECEMBER 15 OF
    20     EACH YEAR. THE CERTIFICATION SHALL BE BASED UPON THE PREVIOUS
    21     FISCAL YEAR'S INCOME TAX REVENUES AND CASH FLOW EXPERIENCE.
    22     THE DEPARTMENT SHALL FORWARD THE CERTIFICATION TO THE
    23     SECRETARY OF THE BUDGET BY THE FOLLOWING JANUARY 15.
    24         (2)  FOR SCHOOL DISTRICTS THAT DO NOT IMPOSE AN INCOME
    25     TAX PRIOR TO THE IMPLEMENTATION OF THIS ARTICLE, THE
    26     DEPARTMENT SHALL CERTIFY TO THE SECRETARY OF THE BUDGET BY
    27     JANUARY 15 AN ESTIMATE OF THE AMOUNT OF THE MINIMUM LOCAL
    28     CONTRIBUTION BASED UPON THE MOST RECENT FINANCIAL INFORMATION
    29     FORWARDED TO THE DEPARTMENT BY THE DEPARTMENT OF REVENUE AND
    30     THE EXPECTED CASH FLOW. THE DEPARTMENT SHALL RECONCILE
    20030H0113B2814                 - 79 -     

     1     ESTIMATES MADE PURSUANT TO THIS SUBSECTION WITH ACTUAL
     2     COLLECTIONS IN THE SUBSEQUENT YEAR.
     3         (3)  IF A SCHOOL DISTRICT FAILS TO MAKE A CERTIFICATION
     4     TO THE DEPARTMENT UNDER PARAGRAPH (1), THE DEPARTMENT MAY
     5     CERTIFY TO THE SECRETARY OF THE BUDGET AN AMOUNT BASED UPON
     6     THE MOST RECENT FINANCIAL INFORMATION FORWARDED TO THE
     7     DEPARTMENT BY THE DEPARTMENT OF REVENUE.
     8     (C)  ALLOCATION MODIFIERS.--THE SECRETARY OF THE BUDGET SHALL
     9  CALCULATE MODIFIERS FOR THE ALLOCATION MAXIMUM AND THE
    10  ALLOCATION MINIMUM BASED ON THE AMOUNT CERTIFIED UNDER
    11  SUBSECTION (A).
    12         (1)  IF THE AMOUNT CERTIFIED BY THE SECRETARY OF THE
    13     BUDGET FOR A FISCAL YEAR EXCEEDS $750,000,000, THE MINIMUM
    14     MODIFIER FOR THE ALLOCATION MINIMUM SHALL BE A VALUE OF .005
    15     PER $50,000,000 IN EXCESS OF $750,000,000. THE MODIFIER FOR
    16     THE ALLOCATION MINIMUM SHALL NOT EXCEED 0.05.
    17         (2)  IF THE AMOUNT CERTIFIED BY THE SECRETARY OF THE
    18     BUDGET FOR A FISCAL YEAR EXCEEDS $750,000,000, THE MINIMUM
    19     MODIFIER FOR THE ALLOCATION MAXIMUM SHALL BE A VALUE OF .02
    20     PER $50,000,000 IN EXCESS OF $750,000,000. THE MODIFIER FOR
    21     THE ALLOCATION MAXIMUM SHALL NOT EXCEED 0.2.
    22  SECTION 604-B.  STATE PROPERTY TAX REDUCTION ALLOCATION.
    23     (A)  ADMINISTRATION.--THE DEPARTMENT OF EDUCATION SHALL DO
    24  ALL OF THE FOLLOWING:
    25         (1)  ARRAY THE 2001 PERSONAL INCOME VALUATION DIVIDED BY
    26     THE 2001-2002 AVERAGE DAILY MEMBERSHIP, THE 2003-2004 MARKET-
    27     VALUE/INCOME-AID RATIO, THE 2001-2002 EQUALIZED MILLAGE AND
    28     THE 2001-2002 SCHOOL TAX RATIO OF EACH SCHOOL DISTRICT IN
    29     RANK ORDER AND ASSIGN EACH SCHOOL DISTRICT A DISCREET
    30     NUMERICAL RANK FOR ITS PERSONAL INCOME VALUATION PER AVERAGE
    20030H0113B2814                 - 80 -     

     1     DAILY MEMBERSHIP, ITS MARKET-VALUE/INCOME-AID RATIO, ITS
     2     EQUALIZED MILLAGE AND ITS SCHOOL TAX RATIO. FOR THE NUMERICAL
     3     RANK OF A SCHOOL DISTRICT'S PERSONAL INCOME VALUATION PER
     4     AVERAGE DAILY MEMBERSHIP, THE SCHOOL DISTRICT WITH THE LOWEST
     5     PERSONAL INCOME VALUATION PER AVERAGE DAILY MEMBERSHIP SHALL
     6     HAVE THE HIGHEST NUMERICAL RANK. FOR THE NUMERICAL RANK OF A
     7     SCHOOL DISTRICT'S MARKET-VALUE/INCOME-AID RATIO, THE SCHOOL
     8     DISTRICT WITH THE HIGHEST MARKET-VALUE/INCOME-AID RATIO SHALL
     9     HAVE THE HIGHEST NUMERICAL RANK; PROVIDED THAT ALL SCHOOL
    10     DISTRICTS WITH A MARKET-VALUE/INCOME-AID RATIO EQUAL TO 0.15
    11     SHALL RECEIVE A RANKING OF 1. FOR THE NUMERICAL RANK OF A
    12     SCHOOL DISTRICT'S EQUALIZED MILLAGE, THE SCHOOL DISTRICT WITH
    13     THE HIGHEST EQUALIZED MILLAGE SHALL HAVE THE HIGHEST
    14     NUMERICAL RANK. FOR THE NUMERICAL RANK OF A SCHOOL DISTRICT'S
    15     SCHOOL TAX RATIO, THE SCHOOL DISTRICT WITH THE HIGHEST SCHOOL
    16     TAX RATIO SHALL HAVE THE HIGHEST NUMERICAL RANK.
    17         (2)  ASSIGN EACH SCHOOL DISTRICT A PROPERTY TAX REDUCTION
    18     INDEX.
    19         (3)  CALCULATE THE PROPERTY TAX REDUCTION ALLOCATION FOR
    20     EACH SCHOOL DISTRICT BY MULTIPLYING THE SCHOOL DISTRICT'S
    21     ESTIMATED 2002-2003 AVERAGE DAILY MEMBERSHIP BY THE PROPERTY
    22     TAX REDUCTION INDEX OF THE SCHOOL DISTRICT AND MULTIPLYING
    23     THAT PRODUCT BY THE NECESSARY FACTOR IN ORDER TO ALLOCATE ALL
    24     OF THE FUNDS IN THE FUND AS CERTIFIED UNDER SECTION 603-B(A),
    25     EXCEPT AS FOLLOWS:
    26             (I)  A SCHOOL DISTRICT FOR WHICH THE ALLOCATION UNDER
    27         THIS PARAGRAPH IS LESS THAN THE PRODUCT OF THE 2001-2002
    28         RESIDENTIAL PROPERTY TAX OF THE SCHOOL DISTRICT AND THE
    29         ALLOCATION MINIMUM SHALL RECEIVE AN ADDITIONAL AMOUNT SO
    30         THAT THE SUM OF THE TOTAL ALLOCATION UNDER THIS PARAGRAPH
    20030H0113B2814                 - 81 -     

     1         AND THE MINIMUM LOCAL CONTRIBUTION IS EQUAL TO THE
     2         PRODUCT OF THE RESIDENTIAL PROPERTY TAX OF THE SCHOOL
     3         DISTRICT AND THE ALLOCATION MINIMUM.
     4             (II)  A SCHOOL DISTRICT FOR WHICH THE SUM OF THE
     5         TOTAL ALLOCATION UNDER THIS PARAGRAPH AND THE MINIMUM
     6         LOCAL CONTRIBUTION IS GREATER THAN THE PRODUCT OF THE
     7         2001-2002 RESIDENTIAL PROPERTY TAX OF THE SCHOOL DISTRICT
     8         AND THE ALLOCATION MAXIMUM SHALL RECEIVE A TOTAL
     9         ALLOCATION SUCH THAT THE SUM OF THE TOTAL ALLOCATION AND
    10         THE MINIMUM LOCAL CONTRIBUTION IS EQUAL TO THE PRODUCT OF
    11         THE RESIDENTIAL PROPERTY TAX OF THE SCHOOL DISTRICT AND
    12         THE ALLOCATION MAXIMUM, EXCEPT AS PROVIDED IN SUBSECTION
    13         (D).
    14         (4)  NOTIFY EACH SCHOOL DISTRICT OF THE AMOUNT OF ITS
    15     PROPERTY TAX REDUCTION ALLOCATION NO LATER THAN MARCH 15 OF
    16     EACH YEAR.
    17     (B)  PAYMENT.--FOR THE FISCAL YEAR COMMENCING JULY 1, 2004,
    18  AND JULY 1 OF EACH FISCAL YEAR THEREAFTER, THE COMMONWEALTH
    19  SHALL PAY TO EACH ELIGIBLE SCHOOL DISTRICT A PROPERTY TAX
    20  REDUCTION ALLOCATION UNDER THE PROVISIONS OF ARTICLE VI-A EQUAL
    21  TO THE AMOUNT CALCULATED UNDER SUBSECTION (A)(3). PAYMENTS
    22  REQUIRED UNDER THIS SUBSECTION SHALL BE MADE PURSUANT TO SECTION
    23  2517(C).
    24     (C)  DATA.--THE DATA ELEMENTS USED TO DETERMINE THE
    25  CALCULATIONS WITHIN THIS SECTION SHALL BE BASED ON THE MOST
    26  RECENT DATA, CERTIFIED BY THE DEPARTMENT.
    27     (D)  FIRST CLASS SCHOOL DISTRICTS.--THE LIMITATION IN
    28  SUBSECTION (A)(3)(II) SHALL NOT APPLY TO THE CALCULATION OF THE
    29  PROPERTY TAX REDUCTION ALLOCATION FOR A SCHOOL DISTRICT OF THE
    30  FIRST CLASS.
    20030H0113B2814                 - 82 -     

     1     (E)  REDUCTION OF WAGE TAXES IN A CITY OF THE FIRST CLASS.--A
     2  CITY COUNCIL OF A CITY OF THE FIRST CLASS SHALL REDUCE ANY TAX
     3  IMPOSED ON THE WAGES OF RESIDENTS AND NONRESIDENTS UNDER THE
     4  AUTHORITY OF THE ACT OF AUGUST 5, 1932 (SP.SESS., P.L.45,
     5  NO.45), REFERRED TO AS THE STERLING ACT, IN A MANNER CONSISTENT
     6  WITH ARTICLE VI-C AND IN ACCORDANCE WITH THE FOLLOWING:
     7         (1)  FOR RESIDENTS, BY AN AMOUNT EQUAL TO THE AMOUNT OF
     8     THE PROPERTY TAX REDUCTION ALLOCATION RECEIVED FROM THE
     9     COMMONWEALTH PURSUANT TO SUBSECTION (B) IN AN AMOUNT NOT TO
    10     EXCEED THE LIMITATIONS SET FORTH IN SUBSECTION (A)(3)(II) HAD
    11     SUCH LIMITATIONS APPLIED.
    12         (2)  FOR NONRESIDENTS, BY ANY AMOUNT EQUAL TO THE AMOUNT
    13     OF THE PROPERTY TAX REDUCTION ALLOCATION RECEIVED FROM THE
    14     COMMONWEALTH PURSUANT TO SUBSECTION (B) IN EXCESS OF THE
    15     LIMITATIONS SET FORTH IN SUBSECTION (A)(3)(II) HAD SUCH
    16     LIMITATIONS APPLIED.
    17                            ARTICLE VI-C
    18             WAGE AND NET PROFITS TAX RELIEF IN CITIES
    19                         OF THE FIRST CLASS
    20  SECTION 601-C.  SCOPE.
    21     THIS ARTICLE RELATES TO WAGE AND NET PROFITS TAX RELIEF IN
    22  CITIES OF THE FIRST CLASS.
    23  SECTION 602-C.  DEFINITIONS.
    24     (RESERVED)
    25  SECTION 603-C.  TAX RELIEF.
    26     (A)  TAX REDUCTION.--A CITY OF THE FIRST CLASS MAY REDUCE THE
    27  RATE OF WAGE AND NET PROFITS TAX TO OBTAIN THE COMMONWEALTH
    28  FUNDING UNDER THIS ARTICLE. IF THE CITY ELECTS TO REDUCE TAXES
    29  PURSUANT TO THIS ARTICLE, FUNDS RECEIVED BY A CITY OF THE FIRST
    30  CLASS UNDER THIS ARTICLE FROM THE FUND SHALL BE USED TO OFFSET A
    20030H0113B2814                 - 83 -     

     1  REDUCTION BY THE CITY IN FISCAL YEAR 2004-2005 AND EACH FISCAL
     2  YEAR THEREAFTER IN THE RATE OF TAX ON WAGES AND NET PROFITS FOR
     3  BOTH RESIDENTS AND NONRESIDENTS AS PROVIDED FOR IN SUBSECTION
     4  (B) WHICH REDUCTIONS SHALL REMAIN IN EFFECT FOR SO LONG AS SUCH
     5  FUNDS ARE PAID TO THE CITY IN AN AMOUNT EQUAL TO THE COST OF
     6  SUCH REDUCTIONS.
     7     (B)  CALCULATION OF REDUCTION.--
     8         (1)  THE CITY SHALL CALCULATE THE AMOUNT OF THE RATE
     9     REDUCTIONS SO THAT THEY EQUAL, BASED ON ESTIMATES CERTIFIED
    10     BY THE CITY'S DIRECTOR OF FINANCE AND APPROVED BY THE
    11     PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY PRIOR TO
    12     THE IMPLEMENTATION OF THE REDUCTIONS, IN COMBINATION WITH ANY
    13     REDUCTION IN THE RATE OF UNEARNED INCOME TAX IMPOSED BY A
    14     SCHOOL DISTRICT IN THE CITY OF THE FIRST CLASS REQUIRED BY
    15     THE ACT OF AUGUST 9, 1963 (P.L.640, NO.338), ENTITLED "AN ACT
    16     EMPOWERING CITIES OF THE FIRST CLASS, COTERMINOUS WITH SCHOOL
    17     DISTRICTS OF THE FIRST CLASS, TO AUTHORIZE THE BOARDS OF
    18     PUBLIC EDUCATION OF SUCH SCHOOL DISTRICTS TO IMPOSE CERTAIN
    19     ADDITIONAL TAXES FOR SCHOOL DISTRICT PURPOSES, AND PROVIDING
    20     FOR THE LEVY, ASSESSMENT AND COLLECTION OF SUCH TAXES," AS A
    21     RESULT OF THE REDUCTION IN THE RATE OF WAGE AND NET PROFITS
    22     TAX, THE AMOUNT PAID TO THE CITY FROM THE FUND FOR TAX
    23     REDUCTIONS. THE CITY SHALL, EACH YEAR, TRANSFER TO SUCH
    24     SCHOOL DISTRICT AN AMOUNT EQUAL TO THE COST OF ANY REDUCTION
    25     IN THE RATE OF UNEARNED INCOME TAX CAUSED BY THE RATE; AND
    26     SUCH TRANSFER SHALL NOT BE SUBJECT TO THE PROVISIONS OF
    27     SECTION 696(H).
    28         (2)  THE TAX RATE REDUCTIONS IMPLEMENTED BY A CITY OF THE
    29     FIRST CLASS PURSUANT TO THIS PARAGRAPH SHALL BE IN ADDITION
    30     TO THE FOLLOWING SCHEDULE OF PERCENTAGES OF WAGE AND NET
    20030H0113B2814                 - 84 -     

     1     PROFITS TAX RATE REDUCTIONS ALREADY SCHEDULED TO OCCUR:
     2             (I)  IN 2005, 2.0728% FOR RESIDENTS AND 0.8402% FOR
     3         NONRESIDENTS.
     4             (II)  IN 2006, 0.8581% FOR RESIDENTS AND 0.8473% FOR
     5         NONRESIDENTS.
     6             (III)  IN 2007, 0.8656% FOR RESIDENTS AND 0.8545% FOR
     7         NONRESIDENTS.
     8             (IV)  IN 2008, 0.8731% FOR RESIDENTS AND 0.8619% FOR
     9         NONRESIDENTS.
    10     (C)  EXCEPTIONS.--THE WAGE AND NET PROFITS TAX RATES CAN ONLY
    11  BE RAISED ABOVE THE RATES SPECIFIED IN SUBSECTION (B)(2) BY SUCH
    12  AMOUNT THAT IS NECESSARY TO RESPOND TO ANY OF THE FOLLOWING:
    13         (1)  A FISCAL THREAT OR CONDITION, AS CERTIFIED BY THE
    14     CITY'S DIRECTOR OF FINANCE AND APPROVED BY THE PENNSYLVANIA
    15     INTERGOVERNMENTAL COOPERATION AUTHORITY, THAT OCCURS TO THE
    16     CITY AS SET FORTH IN SECTION 614-A(F) OR AN EQUIVALENT FISCAL
    17     THREAT THAT AFFECTS THE CITIZENS OF THE CITY. IT SHALL BE THE
    18     RESPONSIBILITY OF THE CITY'S DIRECTOR OF FINANCE WITH THE
    19     APPROVAL OF THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION
    20     AUTHORITY TO INSURE THAT THE ADDITIONAL TAX REVENUE RAISED IS
    21     EQUAL TO THE AMOUNT EXPENDED TO RESPOND TO THE FISCAL THREAT
    22     OR CONDITION. IF THE AMOUNT OF REVENUE RAISED THROUGH RATE
    23     ADJUSTMENT EXCEEDS THE AMOUNT NECESSARY TO RESPOND, OVER THE
    24     COURSE OF THE CITY'S APPROVED FINANCIAL PLAN, TO THE FISCAL
    25     THREAT, ALL OF THE EXCESS AMOUNT SHALL BE USED FOR WAGE TAX
    26     AND NET PROFITS TAX REDUCTION IN THE IMMEDIATELY SUCCEEDING
    27     APPROVED FINANCIAL PLAN, BUT ONLY IF THE RATE REDUCTION
    28     (EXPRESSED AS THE DIFFERENCE BETWEEN THE TWO RATES) WOULD
    29     EXCEED .0002.
    30         (2)  A DECREASE OF MORE THAN 2% IN THE AMOUNT OF TOTAL
    20030H0113B2814                 - 85 -     

     1     TAX COLLECTIONS PLUS ANY FUNDS PROVIDED UNDER THIS ARTICLE
     2     FROM THE PRECEDING YEAR'S COLLECTIONS. SUCH A DETERMINATION
     3     OF A DECREASE MUST BE ATTESTED TO BY THE CITY'S DIRECTOR OF
     4     FINANCE AND AGREED TO BY THE PENNSYLVANIA INTERGOVERNMENTAL
     5     COOPERATION AUTHORITY.
     6         (3)  A DECLARATION BY THE PENNSYLVANIA INTERGOVERNMENTAL
     7     COOPERATION AUTHORITY THAT THE CITY'S FIVE-YEAR PLAN IS
     8     DISAPPROVED PURSUANT TO SECTION 209 OF THE ACT OF JUNE 5,
     9     1991 (P.L.9, NO.6), KNOWN AS THE PENNSYLVANIA
    10     INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF THE
    11     FIRST CLASS.
    12         (4)  FEDERAL OR STATE LAW IMPOSES A NEW UNFUNDED MANDATE
    13     ON THE CITY THAT COSTS THE CITY MORE THAN 1.5% OF THE CITY'S
    14     TOTAL GENERAL FUND EXPENDITURES IN ANY FISCAL YEAR.
    15         (5)  THE COST TO THE CITY OF AN EXISTING MANDATE IMPOSED
    16     BY FEDERAL OR STATE LAW INCREASES BY MORE THAN 1.5% OF THE
    17     CITY'S TOTAL GENERAL FUND EXPENDITURES IN ANY FISCAL YEAR AND
    18     FUNDS TO PAY FOR THE INCREASE ARE NOT APPROPRIATED TO THE
    19     CITY BY THE FEDERAL OR STATE GOVERNMENT.
    20         (6)  EXISTING FEDERAL OR STATE FUNDING IS DECREASED BY
    21     1.5% OF THE CITY'S TOTAL GENERAL FUND EXPENDITURES IN ANY
    22     FISCAL YEAR.
    23     (D)  EXCESS FUNDS.--IF IN ANY FISCAL YEAR THE SUMS RECEIVED
    24  BY A CITY OF THE FIRST CLASS FROM THE FUND ARE IN EXCESS OF THE
    25  VALUE OF THE TAX RATE REDUCTIONS ACTUALLY MADE BY THE CITY
    26  PURSUANT TO SUBSECTION (A), THE CITY SHALL, WITHIN 60 DAYS
    27  FOLLOWING THE CERTIFICATION BY THE DIRECTOR OF FINANCE, IN
    28  CONSULTATION WITH THE SECRETARY OF THE BUDGET AND WITH THE
    29  APPROVAL OF THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION
    30  AUTHORITY OF THE AMOUNT OF THE EXCESS, DO ANY OF THE FOLLOWING:
    20030H0113B2814                 - 86 -     

     1         (1)  REPAY TO THE FUND THE EXCESS SUMS; OR
     2         (2)  FURTHER REDUCE WAGE AND NET PROFITS TAX RATES AND
     3     UNEARNED INCOME TAX RATES, IF REQUIRED, IN THE FISCAL YEAR
     4     NEXT FOLLOWING THE DETERMINATION OF THE EXCESS, BY AN AMOUNT
     5     THAT WILL RESULT IN TOTAL TAX RATE REDUCTIONS REQUIRED FOR
     6     THE AMOUNT RECEIVED FROM THE FUND. TO THE EXTENT THE RATE
     7     REDUCTION PROVIDED FOR IN PARAGRAPH (2), EXPRESSED AS THE
     8     DIFFERENCE BETWEEN THE TWO RATES, WOULD NOT EXCEED .0002,
     9     THIS SUBSECTION SHALL NOT APPLY.
    10     (E)  INSUFFICIENT FUNDS.--IF IN ANY FISCAL YEAR THE DIRECTOR
    11  OF FINANCE CERTIFIES, IN CONSULTATION WITH THE SECRETARY OF THE
    12  BUDGET AND WITH THE APPROVAL OF THE PENNSYLVANIA
    13  INTERGOVERNMENTAL COOPERATION AUTHORITY, THAT THE AMOUNT OF SUMS
    14  RECEIVED BY THE CITY FROM THE FUND ARE LESS THAN THE VALUE OF
    15  THE TAX RATE REDUCTIONS ACTUALLY MADE BY THE CITY PURSUANT TO
    16  SUBSECTION (A), THE CITY MAY, IN THE FISCAL YEAR NEXT FOLLOWING
    17  THE DETERMINATION OF THE AMOUNT, INCREASE THE CITY'S WAGE AND
    18  NET PROFITS TAX RATE ABOVE THE RATES SPECIFIED IN SUBSECTION
    19  (B)(2) BY AN AMOUNT THAT WILL RESULT IN AN OVERALL TAX RATE
    20  REDUCTION EQUAL TO THAT REQUIRED FOR THE AMOUNT RECEIVED BY THE
    21  CITY FROM THE FUND. TO THE EXTENT THE RATE INCREASE PROVIDED FOR
    22  IN THIS SUBSECTION, EXPRESSED AS THE DIFFERENCE BETWEEN THE TWO
    23  RATES, WOULD NOT EXCEED .0002, THIS SUBSECTION SHALL NOT APPLY.
    24     SECTION 9.  SECTION 922.1-A OF THE ACT, AMENDED OR ADDED
    25  AUGUST 1, 1975 (P.L.180, NO.89), AUGUST 24, 1977 (P.L.199,
    26  NO.59), OCTOBER 10, 1980 (P.L.924, NO.159) AND MAY 10, 2000
    27  (P.L.44, NO.16), IS REENACTED TO READ:
    28     SECTION 922.1-A.  AUXILIARY SERVICES.--(A)  LEGISLATIVE
    29  FINDING; DECLARATION OF POLICY. THE WELFARE OF THE COMMONWEALTH
    30  REQUIRES THAT THE PRESENT AND FUTURE GENERATION OF SCHOOL AGE
    20030H0113B2814                 - 87 -     

     1  CHILDREN BE ASSURED AMPLE OPPORTUNITY TO DEVELOP TO THE FULLEST,
     2  THEIR INTELLECTUAL CAPACITIES. IT IS THE INTENT OF THE GENERAL
     3  ASSEMBLY BY THIS ENACTMENT TO ENSURE THAT THE INTERMEDIATE UNITS
     4  IN THE COMMONWEALTH SHALL FURNISH ON AN EQUAL BASIS AUXILIARY
     5  SERVICES TO ALL PUPILS IN THE COMMONWEALTH IN BOTH PUBLIC AND
     6  NONPROFIT NONPUBLIC SCHOOLS.
     7     (B)  DEFINITIONS. THE FOLLOWING TERMS, WHENEVER USED OR
     8  REFERRED TO IN THIS SECTION, SHALL HAVE THE FOLLOWING MEANINGS,
     9  EXCEPT IN THOSE CIRCUMSTANCES WHERE THE CONTEXT CLEARLY
    10  INDICATES OTHERWISE:
    11     "AUXILIARY SERVICES" MEANS GUIDANCE, COUNSELING AND TESTING
    12  SERVICES; PSYCHOLOGICAL SERVICES; VISUAL SERVICES AS DEFINED IN
    13  SECTION 923.2-A; SERVICES FOR EXCEPTIONAL CHILDREN; REMEDIAL
    14  SERVICES; SPEECH AND HEARING SERVICES; SERVICES FOR THE
    15  IMPROVEMENT OF THE EDUCATIONALLY DISADVANTAGED (SUCH AS, BUT NOT
    16  LIMITED TO, THE TEACHING OF ENGLISH AS A SECOND LANGUAGE), AND
    17  SUCH OTHER SECULAR, NEUTRAL, NONIDEOLOGICAL SERVICES AS ARE OF
    18  BENEFIT TO ALL SCHOOL CHILDREN AND ARE PRESENTLY OR HEREAFTER
    19  PROVIDED FOR PUBLIC SCHOOL CHILDREN OF THE COMMONWEALTH.
    20     "NONPUBLIC SCHOOL" MEANS NONPROFIT SCHOOL, OTHER THAN A
    21  PUBLIC SCHOOL WITHIN THE COMMONWEALTH OF PENNSYLVANIA, WHEREIN A
    22  RESIDENT OF THE COMMONWEALTH MAY LEGALLY FULFILL THE COMPULSORY
    23  SCHOOL ATTENDANCE REQUIREMENTS OF THIS ACT AND WHICH MEET THE
    24  REQUIREMENTS OF TITLE VI OF THE CIVIL RIGHTS ACT OF 1964
    25  (PUB.L.88-352; 42 U.S.C. SECTION 2000 ET SEQ).
    26     (C)  PROGRAM OF AUXILIARY SERVICES. STUDENTS ATTENDING
    27  NONPUBLIC SCHOOLS SHALL BE FURNISHED A PROGRAM OF AUXILIARY
    28  SERVICES WHICH ARE PROVIDED TO PUBLIC SCHOOL STUDENTS IN THE
    29  SCHOOL DISTRICT IN WHICH THEIR NONPUBLIC SCHOOL IS LOCATED. THE
    30  PROGRAM OF AUXILIARY SERVICES SHALL BE PROVIDED BY THE
    20030H0113B2814                 - 88 -     

     1  INTERMEDIATE UNIT IN WHICH THE NONPUBLIC SCHOOL IS LOCATED, IN
     2  ACCORDANCE WITH STANDARDS OF THE SECRETARY OF EDUCATION. BEFORE
     3  AN INTERMEDIATE UNIT MAKES ANY DECISION THAT AFFECTS THE
     4  OPPORTUNITIES FOR CHILDREN ATTENDING NONPUBLIC SCHOOLS TO
     5  PARTICIPATE IN THE AUXILIARY SERVICES PROVIDED UNDER THIS
     6  SECTION, THE INTERMEDIATE UNIT SHALL CONSULT WITH SUCH NONPUBLIC
     7  SCHOOLS TO DETERMINE AT A MINIMUM: WHICH GENERAL CATEGORIES OF
     8  CHILDREN SHALL RECEIVE SERVICES; WHAT SERVICES SHALL BE
     9  PROVIDED; HOW AND WHERE THE SERVICES SHALL BE PROVIDED; AND HOW
    10  THE SERVICES SHALL BE EVALUATED. SUCH SERVICES SHALL BE PROVIDED
    11  DIRECTLY TO THE NONPUBLIC SCHOOL STUDENTS BY THE INTERMEDIATE
    12  UNIT IN THE SCHOOLS WHICH THE STUDENTS ATTEND, IN MOBILE
    13  INSTRUCTIONAL UNITS LOCATED ON THE GROUNDS OF SUCH SCHOOLS OR IN
    14  ANY ALTERNATIVE SETTING MUTUALLY AGREED UPON BY THE SCHOOL AND
    15  THE INTERMEDIATE UNIT, TO THE EXTENT PERMITTED BY THE
    16  CONSTITUTION OF THE UNITED STATES AND THE CONSTITUTION OF THE
    17  COMMONWEALTH OF PENNSYLVANIA.
    18     SUCH AUXILIARY SERVICES SHALL BE PROVIDED DIRECTLY BY THE
    19  INTERMEDIATE UNITS AND NO AUXILIARY SERVICES PRESENTLY PROVIDED
    20  TO PUBLIC SCHOOL STUDENTS BY THE INTERMEDIATE UNITS AND/OR
    21  SCHOOL DISTRICTS BY MEANS OF STATE OR LOCAL REVENUES, DURING THE
    22  SCHOOL YEAR 1974-1975, SHALL BE ELIMINATED. NO SCHOOL DISTRICTS
    23  SHALL BE REQUIRED, PURSUANT TO ANY SECTION OF THIS ACT, TO OFFER
    24  AUXILIARY SERVICES PROVIDED BY ANY OTHER SCHOOL DISTRICTS WITHIN
    25  SUCH INTERMEDIATE UNITS.
    26     (D)  ALLOCATIONS. IN JULY OF 1977 AND ANNUALLY THEREAFTER IN
    27  JULY, THE SECRETARY OF EDUCATION SHALL ALLOCATE TO EACH
    28  INTERMEDIATE UNIT AN AMOUNT EQUAL TO THE NUMBER OF NONPUBLIC
    29  SCHOOL STUDENTS AS OF OCTOBER 1 OF THE PRECEDING SCHOOL YEAR WHO
    30  ARE ENROLLED IN NONPUBLIC SCHOOLS WITHIN THE INTERMEDIATE UNIT
    20030H0113B2814                 - 89 -     

     1  TIMES SEVENTY-TWO DOLLARS ($72). THE SECRETARY OF EDUCATION
     2  SHALL INCREASE THIS FIGURE ON A PROPORTIONATE BASIS WHENEVER
     3  THERE IS AN INCREASE IN THE MEDIAN ACTUAL INSTRUCTION EXPENSE
     4  PER WADM AS DEFINED IN CLAUSE (12.1) OF SECTION 2501 OF THIS
     5  ACT. THE COMMONWEALTH SHALL PAY TO EACH INTERMEDIATE UNIT
     6  FIFTEEN PER CENTUM (15%) OF ITS ALLOCATION ON AUGUST 1, SEVENTY-
     7  FIVE PER CENTUM (75%) ON OCTOBER 1, AND THE REMAINING TEN PER
     8  CENTUM (10%) ON THE FIRST DAY OF FEBRUARY.
     9     (E)  LIMITATIONS. THE INTERMEDIATE UNIT SHALL NOT USE MORE
    10  THAN SIX PER CENTUM (6%) OF THE FUNDS IT RECEIVES FOR
    11  ADMINISTRATION OR EIGHTEEN PER CENTUM (18%) FOR RENTAL OF
    12  FACILITIES. THE DEPARTMENT OF EDUCATION SHALL NOT USE MORE THAN
    13  ONE PER CENTUM (1%) OF THE FUNDS IT ALLOCATES UNDER THIS SECTION
    14  FOR ADMINISTRATIVE EXPENSES. IF ALL FUNDS ALLOCATED BY THE
    15  INTERMEDIATE UNITS TO ADMINISTRATION, OR RENTAL FACILITIES ARE
    16  NOT EXPENDED FOR THOSE PURPOSES, SUCH FUNDS MAY BE USED FOR THE
    17  PROGRAM COSTS.
    18     (F)  INTEREST. THERE SHALL BE NO ADJUSTMENT IN THE ALLOCATION
    19  AS PROVIDED IN SUBSECTION (D) BECAUSE OF INTEREST EARNED ON THE
    20  ALLOCATIONS BY THE INTERMEDIATE UNITS. INTEREST SO EARNED SHALL
    21  BE USED FOR THE PURPOSE OF THIS SECTION BUT SHALL NOT BE SUBJECT
    22  TO THE LIMITATIONS OF SUBSECTION (E).
    23     (G)  PRELIMINARY BUDGET. ANNUALLY, EACH INTERMEDIATE UNIT
    24  SHALL SUBMIT TO THE SECRETARY A PRELIMINARY BUDGET ON OR BEFORE
    25  JANUARY 31 AND A FINAL BUDGET ON OR BEFORE JUNE 15, FOR THE
    26  SUCCEEDING YEAR; AND SHALL FILE A FINAL FINANCIAL REPORT ON OR
    27  BEFORE OCTOBER 31 FOR THE PRECEDING YEAR.
    28     SECTION 10.  SECTION 923-A OF THE ACT, AMENDED OR ADDED JULY
    29  12, 1972 (P.L.863, NO.195), JULY 18, 1974 (P.L.475, NO.169),
    30  AUGUST 1, 1975 (P.L.183, NO.90) AND JUNE 22, 2001 (P.L.530,
    20030H0113B2814                 - 90 -     

     1  NO.35), IS REENACTED TO READ:
     2     SECTION 923-A.  LOAN OF TEXTBOOKS, INSTRUCTIONAL MATERIALS
     3  AND INSTRUCTIONAL EQUIPMENT, NONPUBLIC SCHOOL CHILDREN.--(A)
     4  LEGISLATIVE FINDINGS; DECLARATION OF POLICY. THE WELFARE OF THE
     5  COMMONWEALTH REQUIRES THAT THE PRESENT AND FUTURE GENERATIONS OF
     6  SCHOOL AGE CHILDREN BE ASSURED AMPLE OPPORTUNITY TO DEVELOP TO
     7  THE FULLEST THEIR INTELLECTUAL CAPACITIES. TO FURTHER THIS
     8  OBJECTIVE, THE COMMONWEALTH PROVIDES, THROUGH TAX FUNDS OF THE
     9  COMMONWEALTH, TEXTBOOKS AND INSTRUCTIONAL MATERIALS FREE OF
    10  CHARGE TO CHILDREN ATTENDING PUBLIC SCHOOLS WITHIN THE
    11  COMMONWEALTH. APPROXIMATELY ONE QUARTER OF ALL CHILDREN IN THE
    12  COMMONWEALTH, IN COMPLIANCE WITH THE COMPULSORY ATTENDANCE
    13  PROVISIONS OF THIS ACT, ATTEND NONPUBLIC SCHOOLS. ALTHOUGH THEIR
    14  PARENTS ARE TAXPAYERS OF THE COMMONWEALTH, THESE CHILDREN DO NOT
    15  RECEIVE TEXTBOOKS OR INSTRUCTIONAL MATERIALS FROM THE
    16  COMMONWEALTH. IT IS THE INTENT OF THE GENERAL ASSEMBLY BY THIS
    17  ENACTMENT TO ASSURE SUCH A DISTRIBUTION OF SUCH EDUCATIONAL AIDS
    18  THAT EVERY SCHOOL CHILD IN THE COMMONWEALTH WILL EQUITABLY SHARE
    19  IN THE BENEFITS THEREOF.
    20     (B)  DEFINITIONS. THE FOLLOWING TERMS, WHENEVER USED OR
    21  REFERRED TO IN THIS SECTION, SHALL HAVE THE FOLLOWING MEANINGS,
    22  EXCEPT IN THOSE CIRCUMSTANCES WHERE THE CONTEXT CLEARLY
    23  INDICATES OTHERWISE:
    24     "INSTRUCTIONAL EQUIPMENT" MEANS INSTRUCTIONAL EQUIPMENT,
    25  OTHER THAN FIXTURES ANNEXED TO AND FORMING PART OF THE REAL
    26  ESTATE, WHICH IS SUITABLE FOR AND TO BE USED BY CHILDREN AND/OR
    27  TEACHERS. THE TERM INCLUDES BUT IS NOT LIMITED TO PROJECTION
    28  EQUIPMENT, RECORDING EQUIPMENT, LABORATORY EQUIPMENT, AND ANY
    29  OTHER EDUCATIONAL SECULAR, NEUTRAL, NON-IDEOLOGICAL EQUIPMENT AS
    30  MAY BE OF BENEFIT TO THE INSTRUCTION OF NONPUBLIC SCHOOL
    20030H0113B2814                 - 91 -     

     1  CHILDREN AND ARE PRESENTLY OR HEREAFTER PROVIDED FOR PUBLIC
     2  SCHOOL CHILDREN OF THE COMMONWEALTH.
     3     "INSTRUCTIONAL MATERIALS" MEANS BOOKS, PERIODICALS,
     4  DOCUMENTS, PAMPHLETS, PHOTOGRAPHS, REPRODUCTIONS, PICTORIAL OR
     5  GRAPHIC WORKS, MUSICAL SCORES, MAPS, CHARTS, GLOBES, SOUND
     6  RECORDINGS, INCLUDING BUT NOT LIMITED TO THOSE ON DISCS AND
     7  TAPES, PROCESSED SLIDES, TRANSPARENCIES, FILMS, FILMSTRIPS,
     8  KINESCOPES, AND VIDEO TAPES, OR ANY OTHER PRINTED AND PUBLISHED
     9  MATERIALS OF A SIMILAR NATURE MADE BY ANY METHOD NOW DEVELOPED
    10  OR HEREAFTER TO BE DEVELOPED. THE TERM INCLUDES SUCH OTHER
    11  SECULAR, NEUTRAL, NON-IDEOLOGICAL MATERIALS AS ARE OF BENEFIT TO
    12  THE INSTRUCTION OF NONPUBLIC SCHOOL CHILDREN AND ARE PRESENTLY
    13  OR HEREAFTER PROVIDED FOR PUBLIC SCHOOL CHILDREN OF THE
    14  COMMONWEALTH.
    15     "INSTRUCTIONAL MATERIALS" MEANS PRE-PREPARED LEARNING
    16  MATERIALS WHICH ARE SECULAR, NEUTRAL AND NONIDEOLOGICAL IN
    17  CHARACTER AND ARE OF BENEFIT TO THE INSTRUCTION OF SCHOOL
    18  CHILDREN ON AN INDIVIDUAL BASIS AND ARE PRESENTLY OR HEREAFTER
    19  PROVIDED FOR PUBLIC SCHOOL CHILDREN OF THE COMMONWEALTH.
    20     "NONPUBLIC SCHOOL" MEANS ANY SCHOOL, OTHER THAN A PUBLIC
    21  SCHOOL WITHIN THE COMMONWEALTH OF PENNSYLVANIA, WHEREIN A
    22  RESIDENT OF THE COMMONWEALTH MAY LEGALLY FULFILL THE COMPULSORY
    23  SCHOOL ATTENDANCE REQUIREMENTS OF THIS ACT AND WHICH MEET THE
    24  REQUIREMENTS OF TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 (PUBLIC
    25  LAW 88-352).
    26     "TEXTBOOKS" MEANS BOOKS, WORKBOOKS, INCLUDING REUSABLE AND
    27  NON-REUSABLE WORKBOOKS, AND MANUALS, WHETHER BOUND OR IN
    28  LOOSELEAF FORM, INTENDED FOR USE AS A PRINCIPAL SOURCE OF STUDY
    29  MATERIAL FOR A GIVEN CLASS OR GROUP OF STUDENTS, A COPY OF WHICH
    30  IS EXPECTED TO BE AVAILABLE FOR THE INDIVIDUAL USE OF EACH PUPIL
    20030H0113B2814                 - 92 -     

     1  IN SUCH CLASS OR GROUP. SUCH TEXTBOOKS SHALL BE TEXTBOOKS WHICH
     2  ARE ACCEPTABLE FOR USE IN ANY PUBLIC, ELEMENTARY, OR SECONDARY
     3  SCHOOL OF THE COMMONWEALTH.
     4     (C)  LOAN OF TEXTBOOKS, INSTRUCTIONAL MATERIALS AND
     5  INSTRUCTIONAL EQUIPMENT. THE SECRETARY OF EDUCATION DIRECTLY, OR
     6  THROUGH THE INTERMEDIATE UNITS, SHALL HAVE THE POWER AND DUTY TO
     7  PURCHASE TEXTBOOKS, INSTRUCTIONAL MATERIALS AND INSTRUCTIONAL
     8  EQUIPMENT AND, UPON INDIVIDUAL REQUEST, TO LOAN THEM TO ALL
     9  CHILDREN RESIDING IN THE COMMONWEALTH WHO ARE ENROLLED IN GRADES
    10  KINDERGARTEN THROUGH TWELVE OF A NONPUBLIC SCHOOL. SUCH
    11  TEXTBOOKS, INSTRUCTIONAL MATERIALS AND INSTRUCTIONAL EQUIPMENT
    12  SHALL BE LOANED FREE TO SUCH CHILDREN SUBJECT TO SUCH RULES AND
    13  REGULATIONS AS MAY BE PRESCRIBED BY THE SECRETARY OF EDUCATION,
    14  DUE REGARD BEING HAD TO THE FEASIBILITY OF MAKING LOANS OF
    15  PARTICULAR INSTRUCTIONAL MATERIALS AND INSTRUCTIONAL EQUIPMENT
    16  ON AN INDIVIDUAL BASIS.
    17     (D)  PURCHASE OF TEXTBOOKS, INSTRUCTIONAL MATERIALS AND
    18  INSTRUCTIONAL EQUIPMENT. THE SECRETARY SHALL NOT BE REQUIRED TO
    19  PURCHASE OR OTHERWISE ACQUIRE TEXTBOOKS, PURSUANT TO THIS
    20  SECTION, THE TOTAL COST OF WHICH, IN ANY SCHOOL YEAR, SHALL
    21  EXCEED AN AMOUNT EQUAL TO TWELVE DOLLARS ($12) FOR THE SCHOOL
    22  YEAR 1973-1974, FIFTEEN DOLLARS ($15) FOR THE SCHOOL YEAR
    23  BEGINNING JULY 1, 1974 AND TWENTY DOLLARS ($20) FOR EACH SCHOOL
    24  YEAR THEREAFTER OR INSTRUCTIONAL MATERIALS AND INSTRUCTIONAL
    25  EQUIPMENT, THE TOTAL COST OF WHICH, IN ANY SCHOOL YEAR, SHALL
    26  EXCEED AN AMOUNT EQUAL TO TEN DOLLARS ($10), MULTIPLIED BY THE
    27  NUMBER OF CHILDREN RESIDING IN THE COMMONWEALTH WHO ON THE FIRST
    28  DAY OF OCTOBER OF THE SCHOOL YEAR IMMEDIATELY PRECEDING ARE
    29  ENROLLED IN GRADES KINDERGARTEN THROUGH TWELVE OF A NONPUBLIC
    30  SCHOOL.
    20030H0113B2814                 - 93 -     

     1     SECTION 11.  ARTICLE XII-A OF THE ACT IS REPEALED.
     2     SECTION 12.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
     3     SECTION 1550.  FIREFIGHTER AND EMERGENCY SERVICE TRAINING.--
     4  (A)  BEGINNING WITH THE 2003-2004 SCHOOL YEAR AND EACH SCHOOL
     5  YEAR THEREAFTER, A SCHOOL DISTRICT MAY OFFER FIREFIGHTER AND
     6  EMERGENCY SERVICE TRAINING AS CREDIT-EARNING COURSES TO STUDENTS
     7  OF THE AGE OF SIXTEEN (16) YEARS OR OLDER. SUCH COURSES MAY
     8  INCLUDE:
     9     (1)  TRAINING AS A FIREFIGHTER I FROM THE NATIONAL BOARD ON
    10  FIRE SERVICE PROFESSIONAL QUALIFICATIONS.
    11     (2)  TRAINING AS AN EMERGENCY MEDICAL TECHNICIAN BY THE
    12  DEPARTMENT OF HEALTH UNDER THE ACT OF JULY 3, 1985 (P.L.164,
    13  NO.45), KNOWN AS THE "EMERGENCY MEDICAL SERVICES ACT."
    14     (B)  A SCHOOL DISTRICT THAT OFFERS FIREFIGHTER AND EMERGENCY
    15  SERVICE TRAINING AS CREDIT-EARNING COURSES SHALL PROVIDE
    16  TRANSPORTATION TO AND SUPERVISION DURING ANY FIREFIGHTER AND
    17  EMERGENCY SERVICE TRAINING PROGRAM THAT TAKES PLACE OFF SCHOOL
    18  GROUNDS. SUPERVISION OF TRAINING SHALL BE CONDUCTED AS A
    19  COOPERATIVE EDUCATION PROGRAM IN ACCORDANCE WITH THE PROVISIONS
    20  OF 22 PA. CODE § 11.28 (RELATING TO OUT-OF-SCHOOL PROGRAMS).
    21     SECTION 13.  THE HEADING OF ARTICLE XV-C OF THE ACT, ADDED
    22  MAY 17, 2001 (P.L.4, NO.4), IS AMENDED TO READ:
    23                           ARTICLE XV-C.
    24       EDUCATION SUPPORT SERVICES [PROGRAM.] AND EDUCATIONAL
    25                        ASSISTANCE PROGRAMS.
    26     SECTION 14.  SECTION 1501-C OF THE ACT, AMENDED JUNE 29, 2002
    27  (P.L.524, NO.88), IS AMENDED TO READ:
    28  SECTION 1501-C.  DEFINITIONS.
    29     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    30  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    20030H0113B2814                 - 94 -     

     1  CONTEXT CLEARLY INDICATES OTHERWISE:
     2     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
     3  COMMONWEALTH.
     4     "ELIGIBLE SCHOOL ENTITY."  FOR THE PURPOSES OF THE
     5  EDUCATIONAL ASSISTANCE PROGRAM OPERATED PURSUANT TO SECTIONS
     6  1502-C AND 1512-C, A SCHOOL ENTITY WITH ONE OR MORE SCHOOLS
     7  IDENTIFIED BY THE DEPARTMENT OF EDUCATION AS HAVING FAILED TO
     8  MEET ACADEMIC PERFORMANCE TARGETS.
     9     "ELIGIBLE STUDENT."  A RESIDENT OF THIS COMMONWEALTH WHO IS
    10  ENROLLED FULL TIME IN [THIRD, FOURTH, FIFTH OR SIXTH GRADE IN] A
    11  SCHOOL ENTITY AND IS DEEMED ELIGIBLE PURSUANT TO EITHER SECTION
    12  1502-C(B) OR SECTION 1512-C(B).
    13     "ELIGIBILITY TEST."  THE PENNSYLVANIA SYSTEM OF SCHOOL
    14  ASSESSMENT OR A COMMERCIALLY PREPARED, STANDARDIZED ACHIEVEMENT
    15  TEST APPROVED BY THE DEPARTMENT OF EDUCATION. A LIST OF APPROVED
    16  TESTS UNDER THIS ARTICLE SHALL BE PUBLISHED ANNUALLY IN THE
    17  PENNSYLVANIA BULLETIN.
    18     "GRANT."  A GRANT AWARDED TO A GRANT RECIPIENT UNDER THIS
    19  ARTICLE.
    20     "GRANT RECIPIENT."  A RESIDENT OF THIS COMMONWEALTH WHO IS A
    21  PARENT, GUARDIAN OR PERSON IN PARENTAL RELATION TO AN ELIGIBLE
    22  STUDENT.
    23     ["PROGRAM."  THE EDUCATION SUPPORT SERVICES PROGRAM
    24  ESTABLISHED IN SECTION 1502-C.]
    25     "PROVIDER."  A SCHOOL ENTITY, AN INSTITUTION OF HIGHER
    26  EDUCATION, A NONPROFIT OR FOR-PROFIT ORGANIZATION OR A CERTIFIED
    27  TEACHER EMPLOYED BY A SCHOOL ENTITY, THAT IS APPROVED BY THE
    28  DEPARTMENT OF EDUCATION TO PROVIDE EDUCATION SUPPORT SERVICES OR
    29  TUTORING UNDER THE EDUCATIONAL ASSISTANCE PROGRAM.
    30     ["SCHOOL ENTITY."  ANY OF THE FOLLOWING LOCATED IN THIS
    20030H0113B2814                 - 95 -     

     1  COMMONWEALTH: A SCHOOL DISTRICT, INTERMEDIATE UNIT, JOINT SCHOOL
     2  DISTRICT, AREA VOCATIONAL-TECHNICAL SCHOOL, CHARTER SCHOOL,
     3  INDEPENDENT SCHOOL, LICENSED PRIVATE ACADEMIC SCHOOL, ACCREDITED
     4  SCHOOL, A SCHOOL REGISTERED UNDER SECTION 1327(B), THE SCOTLAND
     5  SCHOOL FOR VETERANS' CHILDREN OR THE SCRANTON SCHOOL FOR THE
     6  DEAF.]
     7     "SCHOOL ENTITY."  SHALL MEAN:
     8         (1)  FOR PURPOSES OF THE EDUCATIONAL SUPPORT SERVICES
     9     PROGRAM, ANY OF THE FOLLOWING LOCATED IN THIS COMMONWEALTH; A
    10     SCHOOL DISTRICT, INTERMEDIATE UNIT, JOINT SCHOOL DISTRICT,
    11     AREA VOCATIONAL-TECHNICAL SCHOOL, CHARTER SCHOOL, INDEPENDENT
    12     SCHOOL, LICENSED PRIVATE ACADEMIC SCHOOL, ACCREDITED SCHOOL,
    13     A SCHOOL REGISTERED UNDER SECTION 1327(B), THE SCOTLAND
    14     SCHOOL FOR VETERANS' CHILDREN OR THE SCRANTON SCHOOL FOR THE
    15     DEAF.
    16         (2)  FOR PURPOSES OF THE EDUCATIONAL ASSISTANCE PROGRAM
    17     ESTABLISHED IN SECTION 1502-C, ANY OF THE FOLLOWING LOCATED
    18     IN THIS COMMONWEALTH; A SCHOOL DISTRICT, JOINT SCHOOL
    19     DISTRICT, AREA VOCATIONAL-TECHNICAL SCHOOL OR INDEPENDENT
    20     SCHOOL.
    21     SECTION 15.  SECTIONS 1502-C, 1503-C AND 1504-C OF THE ACT,
    22  ADDED MAY 17, 2001 (P.L.4, NO.4), ARE AMENDED TO READ:
    23  SECTION 1502-C.  ESTABLISHMENT OF [PROGRAM] PROGRAMS.
    24     (A)  ESTABLISHMENT.--THE EDUCATION SUPPORT SERVICES PROGRAM
    25  [IS] AND EDUCATIONAL ASSISTANCE PROGRAM ARE ESTABLISHED WITHIN
    26  THE DEPARTMENT TO PROVIDE INDIVIDUAL OR SMALL GROUP INSTRUCTION
    27  IN [READING AND MATHEMATICS] SUBJECT AREAS ASSESSED THROUGH THE
    28  PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TESTS REQUIRED UNDER
    29  THE NO CHILD LEFT BEHIND ACT OF 2001 TO STRENGTHEN THE SKILLS
    30  THAT AN ELIGIBLE STUDENT NEEDS TO ACHIEVE THE STANDARDS IN 22
    20030H0113B2814                 - 96 -     

     1  PA. CODE CH. 4 (RELATING TO ACADEMIC STANDARDS AND ASSESSMENT),
     2  WHICH SHALL BE PROVIDED AT A TIME OTHER THAN THE REGULARLY
     3  SCHEDULED SCHOOL HOURS.
     4     (B)  ELIGIBILITY.--THE DEPARTMENT SHALL UTILIZE THE
     5  PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TEST OR OTHER TEST
     6  RESULTS TO IDENTIFY ELIGIBLE STUDENTS UNDER THIS ARTICLE. SCORES
     7  USED TO DETERMINE ELIGIBLE STUDENTS IN EACH GRADE SHALL BE
     8  PUBLISHED ANNUALLY IN THE PENNSYLVANIA BULLETIN.
     9     (C)  APPROVAL.--A PROVIDER MUST BE APPROVED BY THE DEPARTMENT
    10  IN ORDER TO PROVIDE EDUCATION SUPPORT SERVICES OR TUTORING UNDER
    11  THE EDUCATIONAL ASSISTANCE PROGRAM UNDER THIS ARTICLE.
    12  SECTION 1503-C.  [APPLICATION] EDUCATION SUPPORT SERVICES GRANT
    13                     APPLICATION AND APPROVAL.
    14     (A)  APPLICATION.--A PROSPECTIVE GRANT RECIPIENT SHALL APPLY
    15  ANNUALLY TO THE DEPARTMENT FOR A GRANT TO PURCHASE EDUCATION
    16  SUPPORT SERVICES FOR AN ELIGIBLE STUDENT FROM AN APPROVED
    17  PROVIDER IN A TIME AND MANNER PRESCRIBED BY THE DEPARTMENT.
    18     (B)  REQUIRED INFORMATION.--AN APPLICATION SUBMITTED UNDER
    19  THIS SECTION SHALL INCLUDE VERIFICATION OF THE ELIGIBILITY TEST
    20  RESULTS AND SUCH OTHER INFORMATION AS THE DEPARTMENT MAY
    21  REQUIRE.
    22  SECTION 1504-C.  POWERS AND DUTIES OF THE DEPARTMENT.
    23     THE DEPARTMENT SHALL:
    24         (1)  ESTABLISH CRITERIA TO ANNUALLY IDENTIFY ELIGIBLE
    25     STUDENTS [IN GRADES THREE, FOUR, FIVE AND SIX TO PARTICIPATE
    26     IN THE PROGRAM UNDER SECTION 1502-C].
    27         (2)  APPROVE PROVIDERS [OF EDUCATION SUPPORT SERVICES].
    28         (3)  ADOPT STANDARDS, PROCEDURES AND GUIDELINES TO BE
    29     USED TO APPROVE PROVIDERS [OF EDUCATION SUPPORT SERVICES
    30     UNDER THIS ARTICLE].
    20030H0113B2814                 - 97 -     

     1         (4)  AWARD GRANTS TO A GRANT RECIPIENT IN AN AMOUNT NOT
     2     TO EXCEED $500 PER FISCAL YEAR FOR EACH ELIGIBLE STUDENT.
     3         (5)  ESTABLISH MINIMUM QUALIFICATIONS FOR INDIVIDUALS
     4     UTILIZED BY PROVIDERS OF EDUCATION SUPPORT SERVICES.
     5         (6)  ESTABLISH PERIODS DURING WHICH APPLICATIONS WILL BE
     6     REVIEWED TO ACCOMMODATE THE DATES WHEN RESULTS OF APPROVED
     7     ELIGIBILITY TESTS BECOME AVAILABLE.
     8         (7)  ASSESS PROVIDERS ON AN ANNUAL BASIS TO DETERMINE THE
     9     ACADEMIC PROGRESS OF STUDENTS WHO RECEIVE INSTRUCTION UNDER
    10     THIS ARTICLE.
    11         (8)  PROVIDE EDUCATIONAL ASSISTANCE FUNDING TO SCHOOL
    12     ENTITIES PURSUANT TO SECTION 1512-C.
    13     SECTION 16.  SECTION 1505-C OF THE ACT, AMENDED JUNE 29, 2002
    14  (P.L.524, NO.88), IS AMENDED TO READ:
    15  SECTION 1505-C.  PROVIDERS.
    16     (A)  APPLICATION.--A PROSPECTIVE PROVIDER SHALL SUBMIT AN
    17  APPLICATION TO THE DEPARTMENT FOR APPROVAL TO PROVIDE EDUCATION
    18  SUPPORT SERVICES OR TUTORING UNDER THE EDUCATIONAL ASSISTANCE
    19  PROGRAM UNDER THIS ARTICLE. THE APPLICATION SHALL INCLUDE A
    20  DESCRIPTION OF THE SERVICES TO BE PROVIDED, A DESCRIPTION OF THE
    21  CURRICULUM TO BE USED, THE COST OF THE SERVICES, THE
    22  QUALIFICATION OF ALL INDIVIDUALS PROVIDING THOSE SERVICES,
    23  INCLUDING EVIDENCE OF COMPLIANCE WITH SECTION 111 AND WITH 23
    24  PA.C.S. § 6355 (RELATING TO REQUIREMENT), A DESCRIPTION OF AN
    25  ASSESSMENT MECHANISM TO BE USED TO DETERMINE THE ACADEMIC
    26  PROGRESS OF STUDENTS WHO RECEIVE TUTORING SERVICES, AND SUCH
    27  OTHER INFORMATION AS MAY BE REQUIRED BY THE DEPARTMENT.
    28     (B)  REVOCATION OF APPROVAL.--THE DEPARTMENT SHALL REVOKE THE
    29  APPROVAL OF ANY PROVIDER FOR WHICH THE ANNUAL ASSESSMENTS
    30  REQUIRED UNDER SECTION 1504-C(7) DEMONSTRATE THAT 20% OR MORE OF
    20030H0113B2814                 - 98 -     

     1  THE STUDENTS FOR WHOM THE PROVIDER HAS PROVIDED EDUCATION
     2  SUPPORT SERVICES UNDER SECTION 1507-C OR TUTORING SERVICES UNDER
     3  SECTION 1512-C FAILED TO MAKE ACADEMIC PROGRESS FOR TWO
     4  CONSECUTIVE YEARS.
     5     SECTION 17.  SECTIONS 1506-C, 1507-C HEADING AND 1508-C(A) OF
     6  THE ACT, ADDED MAY 17, 2001 (P.L.4, NO.4), ARE AMENDED TO READ:
     7  SECTION 1506-C.  NOTIFICATION OF PROGRAM.
     8     A SCHOOL ENTITY IN THIS COMMONWEALTH [WITH STUDENTS ENROLLED
     9  IN THIRD, FOURTH, FIFTH OR SIXTH GRADE] SHALL NOTIFY PARENTS OF
    10  THE AVAILABILITY OF EDUCATION SUPPORT SERVICES AND TUTORING
    11  UNDER THE EDUCATIONAL ASSISTANCE PROGRAM AT SUCH TIME AS THE
    12  PARENTS RECEIVE THE RESULTS OF ANY ELIGIBILITY TEST.
    13  SECTION 1507-C.  PAYMENT OF EDUCATIONAL SUPPORT SERVICES GRANTS.
    14     * * *
    15  SECTION 1508-C.  LIMITATIONS.
    16     (A)  AMOUNT.--THE AMOUNT OF EDUCATIONAL SUPPORT SERVICES
    17  GRANTS PROVIDED UNDER THIS ARTICLE IN A FISCAL YEAR SHALL BE
    18  LIMITED TO THE FUNDS APPROPRIATED FOR THAT PURPOSE. NO MORE THAN
    19  10% OF THE TOTAL FUNDS APPROPRIATED FOR THIS PROGRAM IN ANY
    20  FISCAL YEAR SHALL BE AWARDED TO GRANT RECIPIENTS WITHIN A
    21  SPECIFIC SCHOOL DISTRICT EXCEPT THAT, IF THE DEPARTMENT
    22  DETERMINES THAT ALL SCHOOL ENTITIES IN THE COMMONWEALTH HAVE HAD
    23  AN OPPORTUNITY TO PARTICIPATE IN THE PROGRAM AND THAT FUNDS
    24  REMAIN AVAILABLE, IT MAY WAIVE THE 10% LIMITATION UNDER THIS
    25  SUBSECTION.
    26     * * *
    27     SECTION 18.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    28  SECTION 1512-C.  EDUCATIONAL ASSISTANCE PROGRAM.
    29     (A)  PURPOSE.--THE EDUCATIONAL ASSISTANCE PROGRAM SHALL
    30  PROVIDE TARGETED SUPPORT TO ELIGIBLE SCHOOL ENTITIES. FUNDS
    20030H0113B2814                 - 99 -     

     1  PROVIDED TO ELIGIBLE SCHOOL ENTITIES THROUGH THE EDUCATIONAL
     2  ASSISTANCE PROGRAM SHALL BE USED TO SUPPORT TUTORING SERVICES TO
     3  ELIGIBLE STUDENTS.
     4     (B)  ELIGIBILITY.--A STUDENT SHALL BE ELIGIBLE FOR TUTORING
     5  SERVICES UNDER THIS SECTION WHERE SUCH STUDENT IS ENROLLED FULL
     6  TIME IN AN ELIGIBLE SCHOOL ENTITY AND:
     7         (1)  SCORED BELOW PROFICIENT ON THE PENNSYLVANIA SYSTEM
     8     OF SCHOOL ASSESSMENT TEST IN THE IMMEDIATE PRECEDING SCHOOL
     9     YEAR; OR
    10         (2)  IS ENROLLED IN KINDERGARTEN THROUGH THIRD GRADE AND
    11     SCORED BELOW THE SCORE APPROVED BY THE DEPARTMENT UNDER
    12     SECTION 1502-C(B) ON ANY OTHER ELIGIBILITY TEST.
    13     (C)  APPROVAL OF PROVIDERS.--IN ORDER TO PROVIDE TUTORING
    14  SERVICES THROUGH THE EDUCATIONAL ASSISTANCE PROGRAM, A PROVIDER
    15  MUST BE APPROVED BY THE DEPARTMENT. SUCH PROVIDERS MAY INCLUDE:
    16         (1)  A PROVIDER APPROVED UNDER SECTION 1505-C; OR
    17         (2)  A SCHOOL ENTITY.
    18     (D)  DUTIES OF ELIGIBLE SCHOOL ENTITIES.--AN ELIGIBLE SCHOOL
    19  ENTITY SHALL HAVE THE FOLLOWING DUTIES:
    20         (1)  TO ANNUALLY NOTIFY THE PARENTS OR GUARDIAN OF ANY
    21     STUDENT ELIGIBLE FOR TUTORING SERVICES UNDER SUBSECTION (B)
    22     ABOUT THE AVAILABILITY OF TUTORING SERVICES UNDER THIS
    23     SECTION.
    24         (2)  TO ANNUALLY PROVIDE THE PARENTS OR GUARDIAN OF ANY
    25     STUDENT ELIGIBLE FOR TUTORING SERVICES UNDER SUBSECTION (B)
    26     WITH A LIST OF ALL APPROVED PROVIDERS OPERATING WITHIN THE
    27     BOUNDARIES OF OR AROUND THE ELIGIBLE SCHOOL ENTITY.
    28         (3)  UPON REQUEST, TO ASSIST THE PARENTS OR GUARDIAN OF
    29     ANY STUDENT ELIGIBLE FOR TUTORING SERVICES UNDER SUBSECTION
    30     (B) IN SELECTING AN APPROVED PROVIDER.
    20030H0113B2814                 - 100 -    

     1         (4)  TO ENTER INTO A CONTRACT OR CONTRACTS WITH A
     2     PROVIDER APPROVED UNDER SECTION 1505-C AND OPERATING WITHIN
     3     THE BOUNDARIES OF OR AROUND THE ELIGIBLE SCHOOL ENTITY OR TO
     4     OFFER TUTORING SERVICES DIRECTLY TO ANY STUDENT ELIGIBLE FOR
     5     TUTORING SERVICES UNDER SUBSECTION (B).
     6     (E)  TUTORING SERVICES.--TUTORING SERVICES PROVIDED UNDER
     7  THIS SECTION SHALL INCLUDE INTENSIVE INSTRUCTION IN THOSE
     8  SUBJECT AREAS ASSESSED THROUGH THE PSSA TEST AND REQUIRED UNDER
     9  THE NO CHILD LEFT BEHIND ACT OF 2001. SUCH TUTORING SERVICES
    10  MAY:
    11         (1)  NOTWITHSTANDING THE PROVISIONS OF SECTION 1502, BE
    12     PROVIDED OUTSIDE OF THE NORMAL SCHOOL DAY AND HOURS OF THE
    13     SCHOOL ENTITY, INCLUDING MORNINGS, EVENINGS, WEEKENDS AND
    14     DURING THE SUMMER MONTHS.
    15         (2)  TAKE PLACE ON AN INDIVIDUAL OR SMALL GROUP BASIS;
    16     PROVIDED, THAT TUTORING SERVICES MAY BE PROVIDED TO NO MORE
    17     THAN TEN STUDENTS IN A GIVEN CLASS AT A GIVEN TIME DURING THE
    18     SCHOOL TERM AND NO MORE THAN 15 STUDENTS DURING THE SUMMER
    19     MONTHS.
    20     (F)  DUTIES OF DEPARTMENT.--THE DEPARTMENT SHALL HAVE THE
    21  FOLLOWING DUTIES:
    22         (1)  TO PROVIDE ELIGIBLE SCHOOL ENTITIES THAT PROVIDE
    23     TUTORING SERVICES UNDER THIS SECTION WITH TECHNICAL
    24     ASSISTANCE UPON REQUEST.
    25         (2)  TO ANNUALLY ASSESS ANY PROVIDER OR SCHOOL ENTITY
    26     THAT PROVIDES TUTORING SERVICES UNDER THIS SECTION IN ORDER
    27     TO DETERMINE THE ACADEMIC PROGRESS OF STUDENTS WHO RECEIVE
    28     TUTORING SERVICES.
    29     (G)  EDUCATIONAL ASSISTANCE FUNDING.--
    30         (1)  DURING THE 2003-2004 SCHOOL YEAR, THE DEPARTMENT
    20030H0113B2814                 - 101 -    

     1     SHALL PROVIDE EACH ELIGIBLE SCHOOL ENTITY WITH EDUCATIONAL
     2     ASSISTANCE FUNDING. THE AMOUNT OF THE FUNDING SHALL BE
     3     CALCULATED BY:
     4             (I)  DIVIDING THE NUMBER OF PENNSYLVANIA SYSTEM OF
     5         SCHOOL ASSESSMENT TESTS ADMINISTERED IN THE ELIGIBLE
     6         SCHOOL ENTITY ON WHICH STUDENTS SCORED BELOW PROFICIENT
     7         IN READING OR MATHEMATICS BY THE TOTAL NUMBER OF
     8         PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TESTS
     9         ADMINISTERED IN THE ELIGIBLE SCHOOL ENTITY IN READING AND
    10         MATHEMATICS DURING THE IMMEDIATE PRECEDING SCHOOL YEAR.
    11             (II)  MULTIPLYING THE QUOTIENT FROM SUBPARAGRAPH (I)
    12         BY THE AVERAGE DAILY MEMBERSHIP OF THE ELIGIBLE SCHOOL
    13         ENTITY DURING THE IMMEDIATE PRECEDING SCHOOL YEAR.
    14             (III)  MULTIPLYING THE PRODUCT FROM SUBPARAGRAPH (II)
    15         BY THE DOLLAR VALUE OF FUNDS APPROPRIATED TO THE
    16         DEPARTMENT OF EDUCATION FOR THE EDUCATIONAL ASSISTANCE
    17         PROGRAM FOR THE FISCAL PERIOD JULY 1, 2003, TO JUNE 30,
    18         2004.
    19             (IV)  DIVIDING THE PRODUCT FROM SUBPARAGRAPH (III) BY
    20         THE SUM OF THE PRODUCTS OF SUBPARAGRAPH (III) FOR ALL
    21         ELIGIBLE SCHOOL ENTITIES THAT QUALIFY FOR GRANT FUNDS
    22         UNDER THIS SUBSECTION.
    23         (2)  THE AMOUNT OF EDUCATIONAL ASSISTANCE FUNDING
    24     PROVIDED UNDER THIS ARTICLE IN A FISCAL YEAR SHALL BE LIMITED
    25     TO FUNDS APPROPRIATED FOR THIS PURPOSE.
    26     (H)  USE OF EDUCATIONAL ASSISTANCE FUNDS.--AN ELIGIBLE SCHOOL
    27  ENTITY THAT RECEIVES EDUCATIONAL ASSISTANCE FUNDING UNDER THIS
    28  SECTION MAY USE THE FUNDS TO:
    29         (1)  ENTER INTO CONTRACTS WITH APPROVED PROVIDERS.
    30         (2)  OFFER TUTORING SERVICES AS SUBMITTED PURSUANT TO
    20030H0113B2814                 - 102 -    

     1     SECTION 1505-C.
     2     (I)  CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE
     3  CONSTRUED TO LIMIT THE ELIGIBILITY OF A GRANT RECIPIENT TO
     4  RECEIVE A GRANT UNDER SECTION 1507-C.
     5     SECTION 19.  THE ACT IS AMENDED BY ADDING ARTICLES TO READ:
     6                            ARTICLE XV-D
     7            HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM 
     8  SECTION 1501-D.  DEFINITIONS.
     9     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    10  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    11  CONTEXT CLEARLY INDICATES OTHERWISE:
    12     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    13  COMMONWEALTH.
    14     "EXTENDED DAY SERVICES."  HEAD START AND CHILD-CARE SERVICES
    15  PROVIDED TO CHILDREN ELIGIBLE FOR HEAD START BY A HEAD START
    16  PROVIDER OR THROUGH A COLLABORATIVE AGREEMENT BETWEEN A HEAD
    17  START PROVIDER AND A LICENSED CHILD-CARE CENTER, OR A REGISTERED
    18  FAMILY OR GROUP DAY-CARE HOME FOR THOSE HOURS AND DAYS BEYOND
    19  THE HOURS FUNDED THROUGH THE FEDERAL HEAD START PROGRAM.
    20     "HEAD START."  A PROGRAM FUNDED UNDER THE FEDERAL HEAD START
    21  ACT ESTABLISHED BY THE OMNIBUS BUDGET RECONCILIATION ACT OF 1981
    22  (PUBLIC LAW 97-35, 95 STAT. 357) AND CARRIED OUT BY A HEAD START
    23  AGENCY OR DELEGATE AGENCY THAT PROVIDES ONGOING COMPREHENSIVE
    24  CHILD DEVELOPMENT SERVICES.
    25     "PROGRAM."  THE HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM
    26  ESTABLISHED IN SECTION 1502-D.
    27  SECTION 1502-D.  HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM.
    28     (A)  ESTABLISHMENT.--THE HEAD START SUPPLEMENTAL ASSISTANCE
    29  PROGRAM IS HEREBY ESTABLISHED TO PROVIDE HEAD START SERVICES TO
    30  ADDITIONAL ELIGIBLE CHILDREN AND TO PROVIDE EXTENDED DAY
    20030H0113B2814                 - 103 -    

     1  SERVICES THROUGH EXISTING HEAD START PROVIDERS.
     2     (B)  ADMINISTRATION.--THE DEPARTMENT SHALL ADMINISTER THE
     3  PROGRAM. SUCH ADMINISTRATION SHALL BE CONSISTENT WITH FEDERAL
     4  HEAD START GUIDELINES AND SHALL PROVIDE SUPPLEMENTAL FINANCIAL
     5  ASSISTANCE TO EXISTING PROVIDERS OF FEDERAL HEAD START SERVICES.
     6     (C)  COORDINATION.--THE DEPARTMENT, TO EVERY EXTENT POSSIBLE,
     7  SHALL COORDINATE THE ADMINISTRATION OF THE PROGRAM WITH THE
     8  DEPARTMENT OF PUBLIC WELFARE AND THE DEPARTMENT OF HEALTH. THE
     9  PURPOSE OF THIS COORDINATION SHALL BE TO:
    10         (1)  IDENTIFY EDUCATIONAL, CHILD-CARE OR OTHER SERVICES
    11     UNDER THE JURISDICTION OF THE DEPARTMENT OF PUBLIC WELFARE
    12     AND THE DEPARTMENT OF HEALTH THAT CAN AUGMENT OR IMPROVE THE
    13     SERVICES AVAILABLE THROUGH HEAD START PROVIDERS.
    14         (2)  PROVIDE TECHNICAL ASSISTANCE TO HEAD START PROVIDERS
    15     ESTABLISHING CHILD-CARE SERVICES IN ORDER TO OFFER EXTENDED
    16     DAY SERVICES.
    17         (3)  PROVIDE TECHNICAL ASSISTANCE TO HEAD START
    18     PROVIDERS, LICENSED CHILD-CARE CENTERS OR REGISTERED FAMILY
    19     OR GROUP DAY-CARE HOMES ENTERING INTO COLLABORATIVE
    20     AGREEMENTS IN ORDER TO OFFER EXTENDED DAY SERVICES.
    21     (D)  CRITERIA FOR FUNDING.--TO IMPLEMENT THE PROGRAM, THE
    22  DEPARTMENT SHALL REQUEST PROPOSALS FROM EXISTING HEAD START
    23  PROVIDERS AND MAY AWARD GRANTS OR ENTER INTO SERVICE CONTRACTS
    24  WITH EXISTING HEAD START PROVIDERS THAT MEET ALL OF THE
    25  FOLLOWING CRITERIA:
    26         (1)  DEMONSTRATE THE NEED FOR ADDITIONAL HEAD START
    27     SERVICES IN THE PROVIDER'S SERVICE AREA, WHETHER THE NEED IS
    28     DETERMINED BY THE PERCENTAGE OF ELIGIBLE CHILDREN WHO ARE NOT
    29     SERVED IN THE PROVIDER'S SERVICE AREA OR BY THE DEMAND FOR
    30     EXTENDED DAY SERVICES.
    20030H0113B2814                 - 104 -    

     1         (2)  DEMONSTRATE THE ABILITY TO EXPAND STAFF, SPACE OR
     2     SERVICES EITHER:
     3             (I)  WITHIN THE HEAD START PROGRAM; OR
     4             (II)  IN COOPERATION WITH LICENSED CHILD-CARE CENTERS
     5         OR REGISTERED FAMILY OR GROUP DAY-CARE HOMES
     6     TO SERVE ADDITIONAL CHILDREN OR TO PROVIDE EXTENDED DAY
     7     SERVICES.
     8         (3)  DEMONSTRATE THE ABILITY TO COMPLY WITH FEDERAL AND
     9     STATE REQUIREMENTS FOR CHILD-CARE SERVICE PROVIDERS IF THE
    10     HEAD START PROVIDER INTENDS TO PROVIDE EXTENDED DAY SERVICES.
    11         (4)  DEMONSTRATE THE ABILITY TO ENTER INTO A
    12     COLLABORATIVE AGREEMENT WITH A CHILD-CARE SERVICE PROVIDER IF
    13     THE HEAD START PROVIDER INTENDS TO ENTER INTO A COLLABORATIVE
    14     AGREEMENT WITH A LICENSED CHILD-CARE CENTER OR A REGISTERED
    15     FAMILY OR GROUP DAY-CARE HOME TO OFFER EXTENDED DAY SERVICES.
    16  SECTION 1503-D.  PRIORITY IN FUNDING.
    17     THE DEPARTMENT SHALL GIVE PRIORITY IN FUNDING TO HEAD START
    18  PROVIDERS APPLYING FOR GRANTS TO SERVE ADDITIONAL ELIGIBLE
    19  CHILDREN.
    20  SECTION 1504-D.  ANNUAL REPORT.
    21     THE DEPARTMENT SHALL COMPILE AN ANNUAL REPORT ON THE PROGRAM
    22  FOR SUBMISSION TO THE GOVERNOR, THE CHAIRMEN OF THE
    23  APPROPRIATIONS COMMITTEE AND THE EDUCATION COMMITTEE OF THE
    24  SENATE AND THE CHAIRMEN OF THE APPROPRIATIONS COMMITTEE AND
    25  EDUCATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE REPORT
    26  SHALL INCLUDE:
    27         (1)  THE NUMBER OF ELIGIBLE CHILDREN SERVED BY HEAD START
    28     AS OF THE EFFECTIVE DATE OF THIS ARTICLE.
    29         (2)  THE NUMBER OF ELIGIBLE CHILDREN SERVED BY THE
    30     PROGRAM DURING THE SCHOOL YEAR THAT BEGINS ONE YEAR AFTER THE
    20030H0113B2814                 - 105 -    

     1     EFFECTIVE DATE OF THIS ARTICLE AND EACH YEAR THEREAFTER.
     2         (3)  THE NUMBER OF EXTENDED DAY PROGRAMS AND THE NUMBER
     3     OF ELIGIBLE CHILDREN ENROLLED IN EXTENDED DAY PROGRAMS AS OF
     4     THE EFFECTIVE DATE OF THIS ARTICLE.
     5         (4)  THE NUMBER OF EXTENDED DAY PROGRAMS AND THE NUMBER
     6     OF ELIGIBLE CHILDREN ENROLLED IN EXTENDED DAY PROGRAMS DURING
     7     THE SCHOOL YEAR THAT BEGINS ONE YEAR AFTER THE EFFECTIVE DATE
     8     OF THIS ARTICLE AND EACH YEAR THEREAFTER.
     9         (5)  A SUMMARY OF THE TYPES OF ACTIVITIES FUNDED UNDER
    10     THE PROGRAM.
    11  SECTION 1505-D.  HEAD START EXPANSION.
    12     (A)  GENERAL RULE.--THE DEPARTMENT OF PUBLIC WELFARE SHALL,
    13  WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, PROMULGATE
    14  THOSE REGULATIONS NECESSARY TO DEFINE HEAD START PARTICIPATION
    15  AS AN ADDITIONAL CATEGORY OF ELIGIBILITY FOR SUBSIDIZED CHILD
    16  CARE IN ORDER TO PERMIT THE USE OF CHILD CARE SUBSIDY FUNDS TO
    17  CREATE FULL-DAY FULL-YEAR OPPORTUNITIES FOR HEAD START
    18  PARTICIPANTS.
    19     (B)  FINAL-OMITTED REGULATIONS.--THE DEPARTMENT OF PUBLIC
    20  WELFARE, IN ADOPTING SUCH REVISED REGULATIONS, SHALL FOLLOW THE
    21  PROCEDURES SET FORTH IN THE ACT OF JULY 31, 1968 (P.L.769,
    22  NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW, AND THE
    23  ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY
    24  REVIEW ACT, FOR THE PROMULGATION AND REVIEW OF FINAL-OMITTED
    25  REGULATIONS.
    26  SECTION 1506-D.  STANDARDS.
    27     THE DEPARTMENT MAY PROMULGATE ANY STANDARDS NECESSARY TO
    28  ADMINISTER AND ENFORCE THIS ARTICLE.
    29                            ARTICLE XV-E
    30                 CHILD DAY CARE AND EARLY CHILDHOOD
    20030H0113B2814                 - 106 -    

     1                         DEVELOPMENT STUDY
     2  SECTION 1501-E.  DEFINITIONS.
     3     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
     4  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
     5  CONTEXT CLEARLY INDICATES OTHERWISE:
     6     "CHILD DAY CARE."  CARE IN LIEU OF PARENTAL CARE GIVEN FOR
     7  PART OF THE 24-HOUR DAY TO CHILDREN UNDER 16 YEARS OF AGE, AWAY
     8  FROM THEIR OWN HOMES. THE TERM DOES NOT INCLUDE CHILD DAY CARE
     9  FURNISHED IN PLACES OF WORSHIP DURING RELIGIOUS SERVICES.
    10     "DEPARTMENT."  THE DEPARTMENT OF PUBLIC WELFARE OF THE
    11  COMMONWEALTH.
    12     "EARLY CHILDHOOD DEVELOPMENT SERVICES."  SERVICES WHICH ARE
    13  INTENDED TO PROVIDE AN ENVIRONMENT WHICH ENHANCES THE
    14  EDUCATIONAL, SOCIAL, CULTURAL, EMOTIONAL AND RECREATIONAL
    15  DEVELOPMENT OF CHILDREN FROM BIRTH THROUGH EIGHT YEARS OF AGE
    16  BUT WHICH ARE NOT INTENDED TO SERVE AS A SUBSTITUTE FOR
    17  COMPULSORY ACADEMIC PROGRAMS.
    18  SECTION 1502-E.  COMPREHENSIVE STUDY.
    19     (A)  ESTABLISHMENT.--THROUGH THE DEVELOPMENT OF A
    20  COMPREHENSIVE STUDY OF CHILD DAY-CARE AND EARLY CHILDHOOD
    21  DEVELOPMENT SERVICES, THE DEPARTMENT, IN COLLABORATION WITH THE
    22  DEPARTMENT OF HEALTH AND THE DEPARTMENT OF EDUCATION, SHALL
    23  ESTABLISH GOALS AND OBJECTIVES AND REVIEW AND ASSESS THE
    24  EXISTING CHILD DAY-CARE AND EARLY CHILDHOOD DEVELOPMENT SERVICE
    25  DELIVERY SYSTEM, INCLUDING STATE EFFORTS TO ASSURE THE PROVISION
    26  OF ACCESSIBLE, AVAILABLE AND AFFORDABLE QUALITY CHILD DAY-CARE
    27  AND EARLY CHILDHOOD DEVELOPMENT SERVICES TO THE GENERAL PUBLIC.
    28  THE STUDY SHALL BE DEVELOPED IN RELATION TO STATEWIDE AND LOCAL
    29  NEEDS, TAKE INTO CONSIDERATION AVAILABLE DEMOGRAPHIC STUDIES AND
    30  REFLECT THE NEEDS OF FAMILIES IN DIFFERENT SOCIAL, ECONOMIC AND
    20030H0113B2814                 - 107 -    

     1  CULTURAL CIRCUMSTANCES AND THE NEEDS OF CHILDREN OF DIFFERENT
     2  AGES AND STAGES OF DEVELOPMENT AND OF CHILDREN WITH SPECIAL
     3  NEEDS.
     4     (B)  SUBMISSION OF STUDY.--NO LATER THAN MAY 1, 2004, THE
     5  DEPARTMENT SHALL SUBMIT TO THE GOVERNOR, THE AGING AND YOUTH
     6  COMMITTEE, THE APPROPRIATIONS COMMITTEE, THE EDUCATION COMMITTEE
     7  AND THE PUBLIC HEALTH AND WELFARE COMMITTEE OF THE SENATE AND
     8  THE CHILDREN AND YOUTH COMMITTEE, THE APPROPRIATIONS COMMITTEE,
     9  THE EDUCATION COMMITTEE AND THE HEALTH AND HUMAN SERVICES
    10  COMMITTEE OF THE HOUSE OF REPRESENTATIVES A STUDY OF CHILD DAY-
    11  CARE AND EARLY CHILDHOOD DEVELOPMENT SERVICES.
    12     (C)  COMMON POLICIES AND PRACTICES.--IN THE DEVELOPMENT OF
    13  THE STUDY, THE DEPARTMENT SHALL PROMOTE COMMON POLICIES AND
    14  PRACTICES IN PROGRAMS TO THE FULLEST EXTENT POSSIBLE AND DEVELOP
    15  MECHANISMS FOR INTERAGENCY COLLABORATION TO CREATE A COORDINATED
    16  STATE CHILD DAY-CARE AND EARLY CHILDHOOD DEVELOPMENT DELIVERY
    17  SYSTEM. THE STUDY SHALL INCLUDE RECOMMENDATIONS FOR THE
    18  SIMPLIFICATION AND IMPROVED COORDINATION OF THE APPLICATION
    19  PROCESS FOR FAMILIES NEEDING SERVICES.
    20     (D)  PUBLIC HEARINGS.--TO PREPARE THE STUDY, THE DEPARTMENT
    21  SHALL HOLD AT LEAST FOUR PUBLIC HEARINGS IN DIFFERENT GEOGRAPHIC
    22  LOCATIONS IN THIS COMMONWEALTH TO SEEK INPUT AND RECOMMENDATIONS
    23  FROM PARENTS, EARLY CHILDHOOD DEVELOPMENT PROFESSIONALS, CHILD
    24  DAY-CARE PROVIDERS, CHILD ADVOCATES, EDUCATORS, REPRESENTATIVES
    25  OF LOCAL GOVERNMENT, HEALTH AND HUMAN SERVICE ORGANIZATIONS,
    26  HEALTH CARE PROFESSIONALS, LABOR ORGANIZATIONS, BUSINESSES,
    27  SCHOOL OFFICIALS AND OTHER INDIVIDUALS OR AGENCIES INTERESTED IN
    28  ISSUES AFFECTING CHILDREN AND FAMILIES.
    29     (E)  CONTENTS OF STUDY.--THE STUDY SHALL INCLUDE THE
    30  FOLLOWING INFORMATION:
    20030H0113B2814                 - 108 -    

     1         (1)  A SUMMARY OF RECOMMENDATIONS SUBMITTED TO THE
     2     DEPARTMENT PURSUANT TO STATEWIDE PUBLIC HEARINGS HELD IN
     3     PREPARATION OF THE STUDY AND THE DEPARTMENT'S RESPONSE TO THE
     4     RECOMMENDATIONS.
     5         (2)  THE AMOUNT OF FEDERAL, STATE AND LOCAL FUNDS
     6     EXPENDED FOR CHILD DAY-CARE AND EARLY CHILDHOOD DEVELOPMENT
     7     SERVICES AND THE ALLOCATION OF THESE FUNDS, BY THE TYPE OF
     8     CARE AND BY ADMINISTRATIVE COSTS. FUNDING INCLUDES THE SOCIAL
     9     SERVICES BLOCK GRANT ACT (PUBLIC LAW 97-35, 42 U.S.C. § 1397
    10     ET SEQ.); TITLES I AND VI OF THE PERSONAL RESPONSIBILITY AND
    11     WORK OPPORTUNITY RECONCILIATION ACT OF 1996 (PUBLIC LAW 104-
    12     193, 110 STAT. 2105); THE HEAD START ACT (PUBLIC LAW 97-35,
    13     42 U.S.C. § 9831 ET SEQ.); THE ACT OF DECEMBER 19, 1990
    14     (P.L.1372, NO.212), KNOWN AS THE EARLY INTERVENTION SERVICES
    15     SYSTEM ACT; AND OTHER PERTINENT STATE APPROPRIATIONS.
    16         (3)  A DESCRIPTION OF CHILD DAY-CARE AND EARLY CHILDHOOD
    17     DEVELOPMENT PROGRAMS IN THIS COMMONWEALTH, INCLUDING CHILD
    18     DAY-CARE CENTERS, GROUP CHILD DAY-CARE HOMES, FAMILY CHILD
    19     DAY-CARE HOMES, SCHOOL-AGE CHILD DAY-CARE PROGRAMS, CHILD DAY
    20     CARE FOR TEEN PARENTS, EARLY INTERVENTION PROGRAMS AND HEAD
    21     START PROGRAMS.
    22         (4)  THE UNDUPLICATED NUMBER OF CHILDREN SERVED AND
    23     ASSISTED WITH FEDERAL, STATE AND LOCAL FUNDS, BY TYPE OF CARE
    24     AND AGE; FUNDING SOURCE FOR THE SERVICES; THE AVERAGE
    25     DURATION OF THE CHILD-CARE SERVICE; AND THE CHILD CAPACITY OF
    26     REGULATED PROVIDERS.
    27         (5)  INCOME ELIGIBILITY GUIDELINES FOR FEDERALLY FUNDED
    28     AND STATE-FUNDED CHILD DAY-CARE AND EARLY CHILDHOOD
    29     DEVELOPMENT SERVICES, SLIDING FEE SCALES AND THE EXTENT TO
    30     WHICH THE INCOME GUIDELINES AND FEE SCALES ARE ADJUSTED TO
    20030H0113B2814                 - 109 -    

     1     REFLECT THE MOST RECENT AVAILABLE STATE INCOME DATA.
     2         (6)  THE STATE'S PRACTICES REGARDING THE MONITORING OF
     3     CHILD DAY-CARE AND EARLY CHILDHOOD DEVELOPMENT PROGRAMS TO
     4     ENSURE THE HEALTH, SAFETY AND WELFARE OF CHILDREN. IN
     5     DESCRIBING THE MONITORING SYSTEM, THE DEPARTMENT SHALL
     6     IDENTIFY THE EXTENT OF ANNOUNCED AND UNANNOUNCED INSPECTIONS
     7     OF REGULATED PROVIDERS, THE LEVEL OF COMPLIANCE WITH STATE
     8     STANDARDS AND THE STAFF-TO-PROVIDER RATIO TO ACCOMPLISH THIS
     9     TASK. THE DEPARTMENT SHALL SUBMIT RECOMMENDATIONS ON WAYS TO
    10     IMPROVE BOTH THE ENFORCEMENT AND MONITORING OF STANDARDS AND
    11     COMPLIANCE WITH STANDARDS.
    12         (7)  THE DEPARTMENT'S COORDINATION, IDENTIFICATION OR
    13     ARRANGEMENT OF TRAINING FOR PROVIDERS IN SPECIFIC PROGRAM
    14     AREAS THAT ARE DESIGNED TO IMPROVE THE QUALITY OF CHILD DAY-
    15     CARE AND EARLY CHILDHOOD DEVELOPMENT SERVICES. THE DEPARTMENT
    16     SHALL IDENTIFY ANY FEDERAL, STATE, LOCAL OR PRIVATE FUNDING
    17     ALLOCATED FOR TRAINING; THE OBJECTIVES OF THE TRAINING; THE
    18     WAY IN WHICH TRAINING WILL BE ACCOMPLISHED; AND AN EVALUATION
    19     OF THE PREVIOUS YEAR'S TRAINING PROGRAMS.
    20         (8)  AN ANALYSIS OF ANY RECENT DEMONSTRATION PROJECTS
    21     RELATED TO CHILD DAY CARE OR EARLY CHILDHOOD DEVELOPMENT
    22     ESTABLISHED BY THE DEPARTMENT OR THE DEPARTMENT OF HEALTH OR
    23     THE DEPARTMENT OF EDUCATION, USING FEDERAL OR STATE FUNDS,
    24     ALONG WITH A SUMMARY OF THE COST OF THE PROJECTS AND THE
    25     FINDINGS AND RECOMMENDATIONS OF THE DEPARTMENT.
    26         (9)  A SUMMARY OF ANY RECENT REPORTS, DATA OR SURVEYS
    27     CONCERNING THE COMPENSATION OF CHILD DAY-CARE AND EARLY
    28     CHILDHOOD DEVELOPMENT PROFESSIONALS, LOAN FORGIVENESS
    29     PROGRAMS, THE STATE'S REIMBURSEMENT RATES AND ANY CHANGES IN
    30     RATES RECOMMENDED BY THE DEPARTMENT.
    20030H0113B2814                 - 110 -    

     1         (10)  A SUMMARY OF THE MOST RECENT AVAILABLE DEMOGRAPHIC
     2     INFORMATION RELATED TO THE NEED FOR CHILD DAY-CARE AND EARLY
     3     CHILDHOOD DEVELOPMENT PROGRAMS IN THIS STATE.
     4         (11)  EFFORTS BY THE PRIVATE SECTOR AND STATE AND LOCAL
     5     GOVERNMENT TO ENCOURAGE EMPLOYER-SPONSORED CHILD DAY-CARE
     6     SERVICES AND POLICIES AIMED AT ADDRESSING THE CHILD DAY-CARE
     7     NEEDS OF WORKING PARENTS.
     8         (12)  A DESCRIPTION OF THE RESPONSIBILITIES AND PROGRAMS
     9     OF VARIOUS STATE DEPARTMENTS WITH RESPECT TO CHILD DAY-CARE
    10     AND EARLY CHILDHOOD DEVELOPMENT SERVICES AND HOW COORDINATION
    11     BETWEEN AGENCIES IS ADDRESSED. THE DEPARTMENT SHALL DESCRIBE
    12     ITS RESPONSIBILITIES AND PROGRAMS UNDER VARIOUS PROGRAM
    13     OFFICES AND RELATED PROGRAMS OR SERVICES AVAILABLE THROUGH
    14     THE DEPARTMENT OF AGING, THE DEPARTMENT OF COMMUNITY AND
    15     ECONOMIC DEVELOPMENT, THE DEPARTMENT OF EDUCATION, THE
    16     DEPARTMENT OF HEALTH OR THE DEPARTMENT OF LABOR AND INDUSTRY.
    17     THE DESCRIPTION SHALL INCLUDE SPECIFIC FINDINGS AND
    18     RECOMMENDATIONS REGARDING DUPLICATION OR OVERLAP OF SERVICES.
    19         (13)  EXISTING STANDARDS AND TRAINING FOR CHILD DAY-CARE
    20     PROVIDERS WHO RECEIVE PAYMENT THROUGH FEDERAL OR STATE CHILD
    21     DAY-CARE OR EARLY CHILDHOOD DEVELOPMENT PROGRAMS. THE
    22     EXISTING STANDARDS AND TRAINING SHALL PROMOTE THE HEALTH,
    23     SAFETY AND DEVELOPMENTAL NEEDS OF CHILDREN.
    24         (14)  IDENTIFICATION OF GAPS IN CHILD DAY-CARE AND EARLY
    25     CHILDHOOD DEVELOPMENT SERVICES, UNMET NEEDS, ADMINISTRATIVE
    26     BARRIERS THAT SERVE AS OBSTACLES TO OBTAINING SERVICES AND
    27     RECOMMENDATIONS ON HOW THE STATE CAN ADDRESS THESE ISSUES.
    28         (15)  STATUTORY AND REGULATORY CHANGES RECOMMENDED BY THE
    29     DEPARTMENT TO ADDRESS THE QUALITY, AFFORDABILITY AND
    30     AVAILABILITY OF CHILD DAY-CARE AND EARLY CHILDHOOD
    20030H0113B2814                 - 111 -    

     1     DEVELOPMENT SERVICES.
     2     SECTION 20.  SECTION 1725-A(A)(2) OF THE ACT, AMENDED JUNE
     3  29, 2002 (P.L.524, NO.88), IS AMENDED TO READ:
     4     SECTION 1725-A.  FUNDING FOR CHARTER SCHOOLS.--(A)  FUNDING
     5  FOR A CHARTER SCHOOL SHALL BE PROVIDED IN THE FOLLOWING MANNER:
     6     * * *
     7     (2)  FOR NON-SPECIAL EDUCATION STUDENTS, THE CHARTER SCHOOL
     8  SHALL RECEIVE FOR EACH STUDENT ENROLLED NO LESS THAN THE
     9  BUDGETED TOTAL EXPENDITURE PER AVERAGE DAILY MEMBERSHIP OF THE
    10  PRIOR SCHOOL YEAR, AS DEFINED IN SECTION 2501(20), MINUS THE
    11  BUDGETED EXPENDITURES OF THE DISTRICT OF RESIDENCE FOR NONPUBLIC
    12  SCHOOL PROGRAMS; ADULT EDUCATION PROGRAMS; COMMUNITY/JUNIOR
    13  COLLEGE PROGRAMS; STUDENT TRANSPORTATION SERVICES; FOR SPECIAL
    14  EDUCATION PROGRAMS; FACILITIES ACQUISITION, CONSTRUCTION AND
    15  IMPROVEMENT SERVICES; AND OTHER FINANCING USES, INCLUDING DEBT
    16  SERVICE AND FUND TRANSFERS, AND MINUS ALL REVENUE RECEIVED FROM
    17  CONTRIBUTIONS AND DONATIONS FROM PRIVATE SOURCES AS PROVIDED IN
    18  THE MANUAL OF ACCOUNTING AND RELATED FINANCIAL PROCEDURES FOR
    19  PENNSYLVANIA SCHOOL SYSTEMS ESTABLISHED BY THE DEPARTMENT. THIS
    20  AMOUNT SHALL BE PAID BY THE DISTRICT OF RESIDENCE OF EACH
    21  STUDENT.
    22     * * *
    23     SECTION 21.  SECTION 1729-A(A) OF THE ACT, ADDED JUNE 19,
    24  1997 (P.L.225, NO.22), IS AMENDED TO READ:
    25     SECTION 1729-A.  CAUSES FOR NONRENEWAL OR TERMINATION.--(A)
    26  DURING THE TERM OF THE CHARTER OR AT THE END OF THE TERM OF THE
    27  CHARTER, THE LOCAL BOARD OF SCHOOL DIRECTORS MAY CHOOSE TO
    28  REVOKE OR NOT TO RENEW THE CHARTER BASED ON ANY OF THE
    29  FOLLOWING:
    30     (1)  ONE OR MORE MATERIAL VIOLATIONS OF ANY OF THE
    20030H0113B2814                 - 112 -    

     1  CONDITIONS, STANDARDS OR PROCEDURES CONTAINED IN THE WRITTEN
     2  CHARTER SIGNED PURSUANT TO SECTION 1720-A.
     3     (2)  FAILURE TO MEET THE REQUIREMENTS FOR STUDENT PERFORMANCE
     4  SET FORTH IN 22 PA. CODE CH. 5 (RELATING TO CURRICULUM) OR
     5  SUBSEQUENT REGULATIONS PROMULGATED TO REPLACE 22 PA. CODE CH. 5
     6  OR FAILURE TO MEET ANY PERFORMANCE STANDARD SET FORTH IN THE
     7  WRITTEN CHARTER SIGNED PURSUANT TO SECTION 1716-A.
     8     (3)  FAILURE TO MEET GENERALLY ACCEPTED STANDARDS OF FISCAL
     9  MANAGEMENT OR AUDIT REQUIREMENTS.
    10     (4)  VIOLATION OF PROVISIONS OF THIS ARTICLE.
    11     (5)  VIOLATION OF ANY PROVISION OF LAW FROM WHICH THE CHARTER
    12  SCHOOL HAS NOT BEEN EXEMPTED, INCLUDING FEDERAL LAWS AND
    13  REGULATIONS GOVERNING CHILDREN WITH DISABILITIES.
    14     (6)  THE CHARTER SCHOOL HAS BEEN CONVICTED OF FRAUD.
    15     (7)  THE CHARTER SCHOOL HAS BEEN IDENTIFIED FOR CORRECTIVE
    16  ACTION BY THE DEPARTMENT PURSUANT TO THE NO CHILD LEFT BEHIND
    17  ACT OF 2001 FOR TWO CONSECUTIVE SCHOOL YEARS AND THE CHARTER
    18  SCHOOL HAS FAILED TO MEET ITS ACADEMIC PERFORMANCE TARGET FOR
    19  BOTH OF THOSE SCHOOL YEARS.
    20     * * *
    21     SECTION 22.  SECTION 1705-B(H)(4) OF THE ACT, AMENDED
    22  DECEMBER 9, 2002 (P.L.1472, NO.187), IS AMENDED TO READ:
    23     SECTION 1705-B.  EDUCATION EMPOWERMENT DISTRICTS.--* * *
    24     (H)  * * *
    25     (4)  THE DEPARTMENT MAY UTILIZE UP TO $2,000,000 OF
    26  UNDISTRIBUTED FUNDS NOT EXPENDED, ENCUMBERED OR COMMITTED FROM
    27  APPROPRIATIONS FOR GRANTS AND SUBSIDIES MADE TO THE DEPARTMENT
    28  TO ASSIST SCHOOL DISTRICTS CERTIFIED AS AN EDUCATION EMPOWERMENT
    29  DISTRICT UNDER PARAGRAPH (3). THERE IS HEREBY ESTABLISHED A
    30  RESTRICTED ACCOUNT FROM WHICH PAYMENTS UNDER THIS PARAGRAPH
    20030H0113B2814                 - 113 -    

     1  SHALL BE PAID. FUNDS SHALL BE TRANSFERRED BY THE SECRETARY OF
     2  THE BUDGET TO THE RESTRICTED ACCOUNT TO THE EXTENT NECESSARY TO
     3  MAKE PAYMENTS UNDER THIS PARAGRAPH. FUNDS IN THE RESTRICTED
     4  ACCOUNT ARE HEREBY APPROPRIATED TO CARRY OUT THE PURPOSES OF
     5  THIS PARAGRAPH. THE SUBSIDY PAYMENT FROM THIS ACCOUNT SHALL BE
     6  UTILIZED TO SUPPLEMENT THE OPERATIONAL BUDGET OF THE ELIGIBLE
     7  SCHOOL DISTRICTS. THIS PARAGRAPH SHALL APPLY TO FISCAL YEARS
     8  2000-2001, 2001-2002 [AND], 2002-2003 AND 2003-2004 AND SHALL
     9  EXPIRE JUNE 30, [2003] 2004.
    10     SECTION 23.  SECTION 1709-B OF THE ACT, ADDED MAY 10, 2000
    11  (P.L.44, NO.16), IS REENACTED TO READ:
    12     SECTION 1709-B.  SCHOOL IMPROVEMENT GRANTS.--(A)  THE
    13  DEPARTMENT SHALL ESTABLISH A PROGRAM OF ANNUAL SCHOOL
    14  IMPROVEMENT GRANTS FOR SCHOOL DISTRICTS ON THE EDUCATION
    15  EMPOWERMENT LIST OR CERTIFIED AS AN EDUCATION EMPOWERMENT
    16  DISTRICT TO ASSIST IN THE IMPLEMENTATION OF THEIR SCHOOL
    17  DISTRICT IMPROVEMENT PLANS.
    18     (B)  GRANTS SHALL BE LIMITED TO THE AMOUNT APPROPRIATED FOR
    19  THAT PURPOSE.
    20     (C)  GRANTS SHALL BE PROVIDED ANNUALLY TO THE SCHOOL DISTRICT
    21  FOR USE AS DIRECTED BY THE SCHOOL DISTRICT EMPOWERMENT TEAM OR
    22  THE BOARD OF CONTROL IN IMPLEMENTING THE SCHOOL DISTRICT
    23  IMPROVEMENT PLAN DEVELOPED PURSUANT TO SECTIONS 1703-B AND 1706-
    24  B AS FOLLOWS:
    25     (1)  TO PURCHASE INSTRUCTIONAL MATERIALS, INCLUDING
    26  TEXTBOOKS, TECHNOLOGY AND RELATED EDUCATIONAL MATERIALS AND
    27  SUPPLIES.
    28     (2)  TO REDUCE CLASS SIZE IN KINDERGARTEN THROUGH GRADE
    29  THREE.
    30     (3)  TO ESTABLISH AFTER-SCHOOL, SUMMER AND WEEKEND PROGRAMS.
    20030H0113B2814                 - 114 -    

     1     (4)  TO ESTABLISH OR EXPAND FULL-DAY KINDERGARTEN PROGRAM.
     2     (5)  TO FUND CURRICULUM DEVELOPMENT.
     3     (6)  TO FUND ENHANCED STAFF PROFESSIONAL DEVELOPMENT.
     4     (7)  TO FUND ANY OTHER PROGRAM CONTAINED IN THE SCHOOL
     5  DISTRICT IMPROVEMENT PLAN.
     6     (D)  SUBJECT TO THE REQUIREMENTS OF THIS SECTION, EACH
     7  QUALIFYING SCHOOL DISTRICT SHALL RECEIVE A BASE ANNUAL GRANT OF
     8  FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000) AND AN ADDITIONAL
     9  GRANT OF UP TO SEVENTY-FIVE DOLLARS ($75) PER AVERAGE DAILY
    10  MEMBERSHIP FOR THE PRIOR SCHOOL YEAR OF THE SCHOOL DISTRICT. THE
    11  SCHOOL DISTRICT OR THE BOARD OF CONTROL SHALL GIVE PRIORITY IN
    12  ALLOCATING THE GRANT FUNDING RECEIVED UNDER THIS SECTION TO THE
    13  INDIVIDUAL SCHOOLS IDENTIFIED PURSUANT TO SECTIONS 1703-B(B) AND
    14  1706-B(B).
    15     (E)  THE DEPARTMENT SHALL SET FORTH THE SPECIFIC ALLOWABLE
    16  USES FOR GRANT FUNDS AND PLACE CONDITIONS, AS NECESSARY, ON THE
    17  USE OF GRANT FUNDS. THE DEPARTMENT SHALL ESTABLISH
    18  ACCOUNTABILITY PROCEDURES AND AUDITING GUIDELINES TO ENSURE THAT
    19  GRANT FUNDS ARE UTILIZED IN ACCORDANCE WITH THE ALLOWABLE USES
    20  AND CONDITIONS.
    21     (F)  A SCHOOL DISTRICT RECEIVING A GRANT UNDER THIS SECTION
    22  SHALL BE REQUIRED TO MAINTAIN SEPARATE ACCOUNTS IN THAT SCHOOL
    23  DISTRICT'S BUDGET TO FACILITATE MONITORING THE USE OF THESE
    24  GRANT FUNDS. IN NO CASE SHALL A SCHOOL DISTRICT USE MORE THAN
    25  FIVE PER CENTUM OF THE GRANT FUNDS FOR ADMINISTRATIVE COSTS.
    26     (G)  THE DEPARTMENT SHALL REDUCE THE AMOUNT OF A STATE
    27  SUBSIDY PAYMENT TO A SCHOOL DISTRICT BY THE AMOUNT OF ANY GRANT
    28  FUNDS PROVIDED UNDER THIS SECTION IF THE SCHOOL DISTRICT DOES
    29  NOT USE THE GRANT FUNDS IN ACCORDANCE WITH THE ALLOWABLE USES
    30  AND CONDITIONS SET FORTH BY THE DEPARTMENT.
    20030H0113B2814                 - 115 -    

     1     SECTION 24.  SECTION 1714-B(G) OF THE ACT, ADDED MAY 10, 2000
     2  (P.L.44, NO.16), IS AMENDED TO READ:
     3     SECTION 1714-B.  MANDATE WAIVER PROGRAM.--* * *
     4     (G)  THE FOLLOWING PROVISIONS OF THIS ACT SHALL NOT BE
     5  SUBJECT TO WAIVER PURSUANT TO THIS SECTION: SECTIONS 108, 110,
     6  111, 321, 322, 323, 324, 325, 326, 327, 431, 436, 437, 440.1,
     7  443, 510, 513, 518, 527, 701.1, 708, 736, 737, 738, 739, 740,
     8  741, 752, 753, 755, 771, 776, 777, 808, 809, 810, 1303(A), 1310,
     9  1317, 1317.1, 1317.2, 1318, 1327, 1327.1, 1330, 1332, 1361,
    10  1366, 1501, 1502, 1513, 1517, 1518, 1521, 1523, 1546 AND 1547;
    11  PROVISIONS PROHIBITING DISCRIMINATION; ARTICLES VI, VI-A, VI-B,
    12  VI-C, XI, XI-A, XII, XIII-A, XIV AND XVII-A AND THIS ARTICLE.
    13     * * *
    14     SECTION 25.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    15     SECTION 1714.1-B.  LIMITATION.--NOTWITHSTANDING ANY OTHER
    16  PROVISION OF THIS ARTICLE, NO SCHOOL DISTRICT SHALL BE PLACED ON
    17  THE EDUCATION EMPOWERMENT LIST UNDER SECTION 1703-B OR CERTIFIED
    18  AS AN EDUCATION EMPOWERMENT DISTRICT UNDER SECTION 1705-B OR
    19  1707-B ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
    20     SECTION 26.  SECTION 1913-A OF THE ACT IS AMENDED BY ADDING A
    21  SUBSECTION TO READ:
    22     SECTION 1913-A.  FINANCIAL PROGRAM; REIMBURSEMENT OF
    23  PAYMENTS.--* * *
    24     (M)  FOR THE FISCAL YEAR 2003-2004, IF INSUFFICIENT FUNDS ARE
    25  APPROPRIATED TO MAKE COMMONWEALTH PAYMENTS PURSUANT TO THIS
    26  SECTION, SUCH PAYMENTS SHALL BE MADE ON A PRO RATA BASIS.
    27     SECTION 27.  THE DEFINITIONS OF "EDUCATIONAL IMPROVEMENT
    28  ORGANIZATION" AND "SCHOLARSHIP ORGANIZATION" IN SECTION 2002-B
    29  OF THE ACT, ADDED MAY 17, 2001 (P.L.4, NO.4), ARE AMENDED TO
    30  READ:
    20030H0113B2814                 - 116 -    

     1  SECTION 2002-B.  DEFINITIONS.
     2     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
     3  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
     4  CONTEXT CLEARLY INDICATES OTHERWISE:
     5     * * *
     6     "EDUCATIONAL IMPROVEMENT ORGANIZATION."  A NONPROFIT ENTITY
     7  WHICH:
     8         (1)  IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION
     9     501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
    10     99-514, 26 U.S.C. § 1 ET SEQ.); AND
    11         (2)  CONTRIBUTES AT LEAST 80% OF ITS ANNUAL RECEIPTS AS
    12     GRANTS TO A PUBLIC SCHOOL FOR INNOVATIVE EDUCATIONAL
    13     PROGRAMS.
    14  FOR PURPOSES OF THIS DEFINITION, A NONPROFIT ENTITY
    15  "CONTRIBUTES" ITS ANNUAL CASH RECEIPTS WHEN IT EXPENDS OR
    16  OTHERWISE IRREVOCABLY ENCUMBERS THOSE FUNDS FOR EXPENDITURE
    17  DURING THE THEN CURRENT FISCAL YEAR OF THE NONPROFIT ENTITY OR
    18  DURING THE NEXT SUCCEEDING FISCAL YEAR OF THE NONPROFIT ENTITY.
    19     * * *
    20     "SCHOLARSHIP ORGANIZATION."  A NONPROFIT ENTITY WHICH:
    21         (1)  IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION
    22     501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
    23     99-514, 26 U.S.C. § 1 ET SEQ.); AND
    24         (2)  CONTRIBUTES AT LEAST 80% OF ITS ANNUAL CASH RECEIPTS
    25     TO A SCHOLARSHIP PROGRAM.
    26  FOR PURPOSES OF THIS DEFINITION, A NONPROFIT ENTITY
    27  "CONTRIBUTES" ITS ANNUAL CASH RECEIPTS TO A SCHOLARSHIP PROGRAM
    28  WHEN IT EXPENDS OR OTHERWISE IRREVOCABLY ENCUMBERS THOSE FUNDS
    29  FOR DISTRIBUTION DURING THE THEN CURRENT FISCAL YEAR OF THE
    30  NONPROFIT ENTITY OR DURING THE NEXT SUCCEEDING FISCAL YEAR OF
    20030H0113B2814                 - 117 -    

     1  THE NONPROFIT ENTITY.
     2     * * *
     3     SECTION 28.  SECTIONS 2005-B(A) AND 2006-B(A) OF THE ACT,
     4  ADDED MAY 17, 2001 (P.L.4, NO.4), ARE AMENDED TO READ:
     5  SECTION 2005-B.  TAX CREDIT.
     6     (A)  GENERAL RULE.--IN ACCORDANCE WITH SECTION 2006-B(A), THE
     7  DEPARTMENT OF REVENUE SHALL GRANT A TAX CREDIT AGAINST ANY TAX
     8  DUE UNDER ARTICLE IV, VI, VII, VII-A, VIII, VIII-A, IX OR XV OF
     9  THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM
    10  CODE OF 1971, TO A BUSINESS FIRM PROVIDING PROOF OF A
    11  CONTRIBUTION TO A SCHOLARSHIP ORGANIZATION OR EDUCATIONAL
    12  IMPROVEMENT ORGANIZATION IN THE TAXABLE YEAR IN WHICH THE
    13  CONTRIBUTION IS MADE WHICH SHALL NOT EXCEED 75% OF THE TOTAL
    14  AMOUNT CONTRIBUTED DURING THE TAXABLE YEAR BY THE BUSINESS FIRM.
    15  SUCH CREDIT SHALL NOT EXCEED [$100,000] $200,000 ANNUALLY PER
    16  BUSINESS FIRM.
    17     * * *
    18  SECTION 2006-B.  LIMITATIONS.
    19     (A)  AMOUNT.--THE TOTAL AGGREGATE AMOUNT OF ALL TAX CREDITS
    20  APPROVED SHALL NOT EXCEED [$30,000,000] $50,000,000 IN A FISCAL
    21  YEAR. NO LESS THAN [$20,000,000] $33,333,335 OF THE TOTAL
    22  AGGREGATE AMOUNT SHALL BE USED TO PROVIDE TAX CREDITS FOR
    23  CONTRIBUTIONS FROM BUSINESS FIRMS TO SCHOLARSHIP ORGANIZATIONS.
    24  NO LESS THAN [$10,000,000] $16,666,665 OF THE TOTAL AGGREGATE
    25  AMOUNT SHALL BE USED TO PROVIDE TAX CREDITS FOR CONTRIBUTIONS
    26  FROM BUSINESS FIRMS TO EDUCATIONAL IMPROVEMENT ORGANIZATIONS.
    27     * * *
    28     SECTION 29.  SECTION 2502.8 OF THE ACT, AMENDED JUNE 22, 2001
    29  (P.L.530, NO.35), IS REENACTED TO READ:
    30     SECTION 2502.8.  PAYMENTS ON ACCOUNT OF PUPILS ENROLLED IN
    20030H0113B2814                 - 118 -    

     1  VOCATIONAL CURRICULUMS.--(A)  FOR THE PURPOSE OF REIMBURSEMENT
     2  IN ACCORDANCE WITH THIS SECTION, VOCATIONAL CURRICULUMS ARE
     3  AGRICULTURE EDUCATION, DISTRIBUTIVE EDUCATION, HEALTH
     4  OCCUPATIONS EDUCATION, HOME ECONOMICS EDUCATION (GAINFUL),
     5  BUSINESS EDUCATION, TECHNICAL EDUCATION, TRADE AND INDUSTRIAL
     6  EDUCATION, OR ANY OTHER OCCUPATIONAL ORIENTED PROGRAM APPROVED
     7  BY THE SECRETARY OF EDUCATION.
     8     (B)  FOR THE 1981-1982 SCHOOL YEAR THROUGH THE 1984-1985
     9  SCHOOL YEAR, EACH SCHOOL DISTRICT SO ENTITLED SHALL BE PAID, IN
    10  ADDITION TO ANY OTHER SUBSIDY TO WHICH IT IS ENTITLED, AN AMOUNT
    11  ON ACCOUNT OF RESIDENT PUPILS ENROLLED IN VOCATIONAL
    12  CURRICULUMS; FOR THE 1985-1986 SCHOOL YEAR THROUGH THE 1999-2000
    13  SCHOOL YEAR, EACH SCHOOL DISTRICT AND AREA VOCATIONAL-TECHNICAL
    14  SCHOOL SHALL BE PAID AN AMOUNT ON ACCOUNT OF STUDENTS ENROLLED
    15  IN VOCATIONAL CURRICULUMS; FOR THE 2000-2001 SCHOOL YEAR AND
    16  EACH SCHOOL YEAR THEREAFTER, EACH SCHOOL DISTRICT, AREA
    17  VOCATIONAL-TECHNICAL SCHOOL AND CHARTER SCHOOL SHALL BE PAID AN
    18  AMOUNT ON ACCOUNT OF STUDENTS ENROLLED IN VOCATIONAL
    19  CURRICULUMS, DETERMINED AS FOLLOWS:
    20     (1)  DETERMINE THE INCREASE IN THE WEIGHTED AVERAGE DAILY
    21  MEMBERSHIP BY MULTIPLYING THE NUMBER OF STUDENTS IN AVERAGE
    22  DAILY MEMBERSHIP IN VOCATIONAL CURRICULUMS IN AREA VOCATIONAL-
    23  TECHNICAL SCHOOLS BY TWENTY-ONE HUNDREDTHS (.21) AND THE NUMBER
    24  OF STUDENTS IN AVERAGE DAILY MEMBERSHIP IN SCHOOL DISTRICT AND
    25  CHARTER SCHOOL VOCATIONAL CURRICULUMS BY SEVENTEEN HUNDREDTHS
    26  (.17).
    27     (2)  MULTIPLY THE LESSER OF THE DISTRICT'S ACTUAL INSTRUCTION
    28  EXPENSE PER WEIGHTED AVERAGE DAILY MEMBERSHIP OR THE BASE EARNED
    29  FOR REIMBURSEMENT BY THE MARKET VALUE/INCOME AID RATIO OR BY
    30  THREE HUNDRED SEVENTY-FIVE THOUSANDTHS (.375), WHICHEVER IS
    20030H0113B2814                 - 119 -    

     1  GREATER.
     2     (3)  MULTIPLY THE INCREASE IN WEIGHTED AVERAGE DAILY
     3  MEMBERSHIP DETERMINED IN CLAUSE (1) BY THE RESULT OF CLAUSE (2).
     4     (4)  FOR THE 1985-1986 THROUGH 1999-2000 SCHOOL YEARS, THE
     5  COMMONWEALTH SHALL PAY THE AMOUNT REQUIRED BY THIS SECTION TO
     6  THE SCHOOL DISTRICT OR AREA VOCATIONAL-TECHNICAL SCHOOL WHICH
     7  PROVIDES THE PROGRAM UPON WHICH REIMBURSEMENT IS BASED.
     8     (5)  FOR THE 2000-2001 SCHOOL YEAR AND EACH SCHOOL YEAR
     9  THEREAFTER, THE COMMONWEALTH SHALL PAY THE AMOUNT REQUIRED UNDER
    10  THIS SECTION TO THE SCHOOL DISTRICT, AREA VOCATIONAL-TECHNICAL
    11  SCHOOL OR CHARTER SCHOOL WHICH PROVIDES THE PROGRAMS UPON WHICH
    12  REIMBURSEMENT IS BASED.
    13     (C)  FOR THE SCHOOL YEAR 1998-1999, ANY ADDITIONAL FUNDING
    14  PROVIDED BY THE COMMONWEALTH OVER THE AMOUNT PROVIDED FOR THE
    15  SCHOOL YEAR 1997-1998 WILL BE DISTRIBUTED TO AREA VOCATIONAL-
    16  TECHNICAL SCHOOLS AND TO SCHOOL DISTRICTS WITH EIGHT (8) OR MORE
    17  VOCATIONAL PROGRAMS BASED ON SUBSECTION (B).
    18     (D)  FOR THE SCHOOL YEAR 1999-2000, ANY ADDITIONAL FUNDING
    19  PROVIDED BY THE COMMONWEALTH OVER THE AMOUNT PROVIDED FOR THE
    20  SCHOOL YEAR 1998-1999 WILL BE DISTRIBUTED TO AREA VOCATIONAL-
    21  TECHNICAL SCHOOLS, TO SCHOOL DISTRICTS WITH EIGHT (8) OR MORE
    22  VOCATIONAL PROGRAMS AND TO SCHOOL DISTRICTS OFFERING A
    23  VOCATIONAL AGRICULTURAL EDUCATION PROGRAM, BASED ON SUBSECTION
    24  (B).
    25     (E)  FOR THE SCHOOL YEAR 2000-2001 AND EACH SCHOOL YEAR
    26  THEREAFTER, ANY ADDITIONAL FUNDING PROVIDED BY THE COMMONWEALTH
    27  OVER THE AMOUNT PROVIDED FOR THE SCHOOL YEAR 1998-1999 WILL BE
    28  DISTRIBUTED TO AREA VOCATIONAL-TECHNICAL SCHOOLS, TO SCHOOL
    29  DISTRICTS AND CHARTER SCHOOLS WITH EIGHT (8) OR MORE VOCATIONAL
    30  PROGRAMS AND TO SCHOOL DISTRICTS AND CHARTER SCHOOLS OFFERING A
    20030H0113B2814                 - 120 -    

     1  VOCATIONAL AGRICULTURAL EDUCATION PROGRAM BASED ON SUBSECTION
     2  (B).
     3     SECTION 30.  SECTIONS 2502.13 AND 2502.30 OF THE ACT, AMENDED
     4  JUNE 29, 2002 (P.L.524, NO.88), ARE AMENDED TO READ:
     5     SECTION 2502.13.  SMALL DISTRICT ASSISTANCE.--FOR THE 1984-
     6  1985 AND 1985-1986 SCHOOL YEARS, THE COMMONWEALTH SHALL PAY TO
     7  EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
     8  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND HAS A MARKET
     9  VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000)
    10  OR GREATER, AN AMOUNT EQUAL TO FIFTY DOLLARS ($50) MULTIPLIED BY
    11  THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE 1985-1986
    12  SCHOOL YEAR, NO SCHOOL DISTRICT SHALL RECEIVE LESS ON ACCOUNT OF
    13  THIS SECTION THAN IT DID FOR THE 1984-1985 SCHOOL YEAR. FOR THE
    14  SCHOOL YEAR 1986-1987, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL
    15  DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND
    16  FIVE HUNDRED (1,500) OR LESS AND HAS A MARKET VALUE/INCOME AID
    17  RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, OR
    18  RECEIVED PAYMENTS UNDER THIS SECTION FOR THE 1985-1986 SCHOOL
    19  YEAR, AN AMOUNT EQUAL TO SEVENTY-FIVE DOLLARS ($75) MULTIPLIED
    20  BY THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEAR
    21  1987-1988, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
    22  WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE
    23  HUNDRED (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF
    24  FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, OR RECEIVED
    25  PAYMENTS UNDER THIS SECTION FOR THE 1986-1987 SCHOOL YEAR, AN
    26  AMOUNT EQUAL TO EIGHTY-FIVE DOLLARS ($85) MULTIPLIED BY THAT
    27  DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEAR 1988-
    28  1989, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH
    29  HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED
    30  (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE
    20030H0113B2814                 - 121 -    

     1  THOUSAND TEN THOUSANDTHS (0.5000) OR GREATER, OR RECEIVED
     2  PAYMENTS UNDER THIS SECTION FOR THE 1987-1988 OR 1988-1989
     3  SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED FIVE DOLLARS ($105).
     4  FOR THE SCHOOL YEAR 1989-1990, THE COMMONWEALTH SHALL PAY TO
     5  EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
     6  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND A MARKET
     7  VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000)
     8  OR GREATER, OR RECEIVED PAYMENTS UNDER THIS SECTION FOR THE
     9  1987-1988 SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED FIFTEEN
    10  DOLLARS ($115) MULTIPLIED BY THE DISTRICT'S AVERAGE DAILY
    11  MEMBERSHIP AS PROVIDED FOR IN SECTION 212 OF THE ACT OF JULY 1,
    12  1990 (P.L.1591, NO.7A), KNOWN AS THE "GENERAL APPROPRIATION ACT
    13  OF 1990." FOR THE SCHOOL YEAR 1990-1991, THE COMMONWEALTH SHALL
    14  PAY TO EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY
    15  MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND A
    16  MARKET VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS
    17  (0.5000) OR GREATER, OR RECEIVED PAYMENTS UNDER THIS SECTION FOR
    18  THE PRIOR SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED SEVENTY
    19  DOLLARS ($170) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY
    20  MEMBERSHIP. FOR THE SCHOOL YEAR 1990-1991, EACH SCHOOL DISTRICT
    21  WITH A POPULATION PER SQUARE MILE OF LESS THAN NINETY (90),
    22  WHICH OTHERWISE MEETS THE AVERAGE DAILY MEMBERSHIP AND MARKET
    23  VALUE/INCOME AID RATIO REQUIREMENTS OF THIS SECTION, OR RECEIVED
    24  PAYMENTS UNDER THIS SECTION FOR THE PRIOR SCHOOL YEAR, SHALL
    25  INSTEAD RECEIVE AN AMOUNT EQUAL TO ONE HUNDRED NINETY DOLLARS
    26  ($190) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP.
    27  FOR THE 1987-1988 SCHOOL YEAR THROUGH THE 1990-1991 SCHOOL YEAR,
    28  NO SCHOOL DISTRICT SHALL RECEIVE LESS ON ACCOUNT OF THIS SECTION
    29  THAN IT DID FOR THE PRIOR SCHOOL YEAR. FOR THE SCHOOL YEAR 1994-
    30  1995, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH
    20030H0113B2814                 - 122 -    

     1  HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED
     2  (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE
     3  THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, AN AMOUNT EQUAL TO
     4  NINETY FIVE DOLLARS ($95) MULTIPLIED BY THAT DISTRICT'S AVERAGE
     5  DAILY MEMBERSHIP. FOR EACH OF THE SCHOOL YEARS 1997-1998 THROUGH
     6  1999-2000, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
     7  WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE
     8  HUNDRED (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF
     9  FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER AN AMOUNT
    10  EQUAL TO SEVENTY-FIVE DOLLARS ($75) MULTIPLIED BY THAT
    11  DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEARS 2000-
    12  2001 [AND], 2001-2002 AND 2002-2003, THE COMMONWEALTH SHALL PAY
    13  TO EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
    14  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AN AMOUNT EQUAL TO
    15  SEVENTY-FIVE DOLLARS ($75) MULTIPLIED BY THAT DISTRICT'S AVERAGE
    16  DAILY MEMBERSHIP.
    17     SECTION 2502.30.  TEMPORARY SPECIAL AID TO SCHOOL DISTRICTS
    18  SUFFERING LOSS OF TAX REVENUE DUE TO REDUCTION IN ASSESSED
    19  VALUATION OF TAXABLE PROPERTY.--(A)  TEMPORARY SPECIAL AID SHALL
    20  BE PAID IN FISCAL YEARS 1994-1995, 1995-1996, 1996-1997, 1997-
    21  1998, 1998-1999, 1999-2000, 2001-2002 [AND], 2002-2003 AND 2003-
    22  2004 TO SCHOOL DISTRICTS EXPERIENCING A SEVERE REDUCTION IN
    23  LOCAL REVENUE DUE TO A DECLINE IN THE ASSESSED VALUE OF TAXABLE
    24  PROPERTIES. THE ALLOCATION TO THESE DISTRICTS SHALL BE
    25  DETERMINED BY MULTIPLYING THE REDUCTION IN ASSESSED VALUE
    26  BETWEEN 1985-1986 AND 1992-1993 BY THE 1992-1993 REAL ESTATE
    27  MILLAGE RATE. THIS AID SHALL BE PAID FROM UNDISTRIBUTED FUNDS
    28  NOT EXPENDED, ENCUMBERED OR COMMITTED FROM APPROPRIATIONS FOR
    29  GRANTS AND SUBSIDIES MADE TO THE DEPARTMENT OF EDUCATION. NO
    30  OTHER FUNDS SHALL BE USED FOR ASSISTANCE UNDER THIS SECTION.
    20030H0113B2814                 - 123 -    

     1  THESE FUNDS SHALL BE SUFFICIENT TO PROVIDE TEMPORARY RELIEF TO
     2  SEVEN SCHOOL DISTRICTS IN FISCAL YEAR 1995-1996 AT SEVENTY-FIVE
     3  PER CENTUM (75%) OF THE FUNDS RECEIVED IN FISCAL YEAR 1994-1995,
     4  IN FISCAL YEAR 1996-1997 AT FIFTY PER CENTUM (50%) OF THE FUNDS
     5  RECEIVED IN FISCAL YEAR 1994-1995, IN FISCAL YEAR 1997-1998,
     6  1998-1999 AND IN FISCAL YEAR 1999-2000 AT TWENTY-FIVE PER CENTUM
     7  (25%) OF THE FUNDS RECEIVED IN FISCAL YEAR 1994-1995. FOR FISCAL
     8  YEARS 2001-2002 [AND], 2002-2003[,] AND 2003-2004 TO THE EXTENT
     9  FUNDS ARE AVAILABLE AS DETERMINED BY THE SECRETARY OF THE
    10  BUDGET, QUALIFYING SCHOOL DISTRICTS SHALL RECEIVE TWENTY-FIVE
    11  PER CENTUM (25%) OF THE FUNDS RECEIVED IN FISCAL YEAR 1994-1995.
    12     (B)  PAYMENTS MADE PURSUANT TO SUBSECTION (A) SHALL BE PAID
    13  FROM A RESTRICTED RECEIPT ACCOUNT, WHICH IS HEREBY ESTABLISHED,
    14  FOR SUCH PAYMENTS. FUNDS SHALL BE TRANSFERRED BY THE SECRETARY
    15  OF THE BUDGET TO THE RESTRICTED ACCOUNT ONLY TO THE EXTENT
    16  NECESSARY TO MAKE THE PAYMENTS AUTHORIZED BY THIS SECTION. THE
    17  MONEY IN THE RESTRICTED ACCOUNT IS HEREBY APPROPRIATED FROM THE
    18  ACCOUNT FOR PURPOSES OF THIS SECTION.
    19     (C)  THIS SECTION SHALL EXPIRE [OCTOBER 1, 2003] OCTOBER 1,
    20  2004.
    21     SECTION 31.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    22     SECTION 2502.41.  BASIC EDUCATION FUNDING FOR 2002-2003
    23  SCHOOL YEAR.--FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH
    24  SHALL PAY TO EACH SCHOOL DISTRICT A BASIC EDUCATION FUNDING
    25  ALLOCATION WHICH SHALL CONSIST OF THE FOLLOWING:
    26     (1)  AN AMOUNT EQUAL TO THE BASIC EDUCATION FUNDING
    27  ALLOCATION FOR THE 2001-2002 SCHOOL YEAR PURSUANT TO SECTIONS
    28  2502.13 AND 2502.40.
    29     (2)  A BASE SUPPLEMENT CALCULATED AS FOLLOWS:
    30     (I)  MULTIPLY THE SCHOOL DISTRICT'S 2003-2004 MARKET
    20030H0113B2814                 - 124 -    

     1  VALUE/INCOME AID RATIO BY ITS 2002-2003 AVERAGE DAILY
     2  MEMBERSHIP.
     3     (II)  MULTIPLY THE PRODUCT FROM SUBPARAGRAPH (I) BY FIFTY
     4  MILLION DOLLARS ($50,000,000).
     5     (III)  DIVIDE THE PRODUCT FROM SUBPARAGRAPH (II) BY THE SUM
     6  OF THE PRODUCTS OF THE 2003-2004 MARKET VALUE/INCOME AID RATIO
     7  MULTIPLIED BY THE 2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL
     8  SCHOOL DISTRICTS.
     9     (3)  A POVERTY SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
    10  DISTRICTS AS FOLLOWS:
    11     (I)  TO QUALIFY FOR THE POVERTY SUPPLEMENT, A SCHOOL
    12  DISTRICT'S 2003-2004 MARKET VALUE/INCOME AID RATIO SHALL BE
    13  EQUAL TO OR GREATER THAN 0.6500 AND ITS PERSONAL INCOME
    14  VALUATION WHEN DIVIDED BY ITS 2002-2003 AVERAGE DAILY MEMBERSHIP
    15  SHALL BE EQUAL TO OR LESS THAN ONE HUNDRED THREE THOUSAND FIVE
    16  HUNDRED SEVENTY-ONE DOLLARS ($103,571).
    17     (II)  THE POVERTY SUPPLEMENT SHALL BE CALCULATED FOR
    18  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
    19     (A)  MULTIPLY THE SCHOOL DISTRICT'S 2002-2003 AVERAGE DAILY
    20  MEMBERSHIP FROM ITS 2002-2003 AVERAGE DAILY MEMBERSHIP BY THIRTY
    21  MILLION DOLLARS ($30,000,000).
    22     (B)  DIVIDE THE PRODUCT FROM CLAUSE (A) BY THE SUM OF THE
    23  2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL QUALIFYING SCHOOL
    24  DISTRICTS.
    25     (4)  A TAX EFFORT SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
    26  DISTRICTS AS FOLLOWS:
    27     (I)  TO QUALIFY FOR THE TAX EFFORT SUPPLEMENT, A SCHOOL
    28  DISTRICT'S 2001 EQUALIZED MILLAGE MUST BE EQUAL TO OR GREATER
    29  THAN 20.6 EQUALIZED MILLS.
    30     (II)  THE TAX EFFORT SUPPLEMENT SHALL BE CALCULATED FOR
    20030H0113B2814                 - 125 -    

     1  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
     2     (A)  MULTIPLY THE SCHOOL DISTRICT'S 2002-2003 AVERAGE DAILY
     3  MEMBERSHIP BY FIFTEEN MILLION DOLLARS ($15,000,000).
     4     (B)  DIVIDE THE PRODUCT FROM CLAUSE (A) BY THE SUM OF THE
     5  2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL QUALIFYING SCHOOL
     6  DISTRICTS.
     7     (5)  A GROWTH SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
     8  DISTRICTS AS FOLLOWS:
     9     (I)  TO QUALIFY FOR THE GROWTH SUPPLEMENT, A SCHOOL
    10  DISTRICT'S 2002-2003 AVERAGE DAILY MEMBERSHIP MUST BE GREATER
    11  THAN ITS 2001-2002 AVERAGE DAILY MEMBERSHIP.
    12     (II)  THE GROWTH SUPPLEMENT SHALL BE CALCULATED FOR
    13  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
    14     (A)  SUBTRACT THE SCHOOL DISTRICT'S 2001-2002 AVERAGE DAILY
    15  MEMBERSHIP FROM ITS 2002-2003 AVERAGE DAILY MEMBERSHIP AND
    16  MULTIPLY THE DIFFERENCE BY ITS 2003-2004 MARKET VALUE/INCOME AID
    17  RATIO.
    18     (B)  MULTIPLY THE DIFFERENCE FROM CLAUSE (A) BY TEN MILLION
    19  DOLLARS ($10,000,000).
    20     (C)  DIVIDE THE PRODUCT FROM CLAUSE (B) BY THE SUM OF THE
    21  DIFFERENCES FROM CLAUSE (A) FOR ALL QUALIFYING SCHOOL DISTRICTS.
    22     (6)  EACH SCHOOL DISTRICT SHALL RECEIVE ADDITIONAL FUNDING AS
    23  NECESSARY SO THAT THE SUM OF THE AMOUNTS UNDER SECTION 2502.13
    24  AND UNDER PARAGRAPHS (2), (3), (4), (5) AND THIS PARAGRAPH WILL
    25  EQUAL AT LEAST TWO PER CENTUM (2%) OF THE AMOUNT IN PARAGRAPH
    26  (1).
    27     SECTION 32.  SECTIONS 2509.1 AND 2509.5 OF THE ACT ARE
    28  AMENDED BY ADDING SUBSECTIONS TO READ:
    29     SECTION 2509.1.  PAYMENTS TO INTERMEDIATE UNITS.--* * *
    30     (B.11)  UP TO NINE MILLION FIVE HUNDRED THOUSAND DOLLARS
    20030H0113B2814                 - 126 -    

     1  ($9,500,000) MAY BE UTILIZED FOR PROGRAMS ADMINISTERED AND
     2  OPERATED BY INTERMEDIATE UNITS DURING THE 2003-2004 SCHOOL YEAR
     3  FOR INSTITUTIONALIZED CHILDREN AS ESTABLISHED IN SUBSECTION
     4  (B.1).
     5     * * *
     6     SECTION 2509.5.  SPECIAL EDUCATION PAYMENTS TO SCHOOL
     7  DISTRICTS.--* * *
     8     (LL)  DURING THE 2003-2004 SCHOOL YEAR, EACH SCHOOL DISTRICT
     9  SHALL BE PAID THE AMOUNT IT RECEIVED DURING THE 2002-2003 SCHOOL
    10  YEAR UNDER SUBSECTION (KK).
    11     (MM)  DURING THE 2003-2004 SCHOOL YEAR, THIRTY-SIX MILLION
    12  ONE HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED EIGHTY-SEVEN
    13  DOLLARS ($36,149,587) OF THE FUNDS APPROPRIATED TO THE
    14  DEPARTMENT OF EDUCATION FOR SPECIAL EDUCATION SHALL BE USED TO
    15  PROVIDE SUPPLEMENTAL FUNDING FOR SPECIAL EDUCATION TO ALL SCHOOL
    16  DISTRICTS. THE SUPPLEMENTAL FUNDING SHALL BE CALCULATED AS
    17  FOLLOWS:
    18     (1)  MULTIPLY EACH SCHOOL DISTRICT'S 2003-2004 MARKET
    19  VALUE/INCOME AID RATIO BY SIXTEEN PER CENTUM (16%) OF ITS 2002-
    20  2003 AVERAGE DAILY MEMBERSHIP;
    21     (2)  MULTIPLY THE PRODUCT FROM PARAGRAPH (1) BY THIRTY-SIX
    22  MILLION ONE HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED EIGHTY-
    23  SEVEN DOLLARS ($36,149,587); AND
    24     (3)  DIVIDE THE RESULTANT PRODUCT FROM PARAGRAPH (2) BY THE
    25  SUM OF THE PRODUCTS OF THE 2003-2004 MARKET VALUE/INCOME AID
    26  RATIO MULTIPLIED BY SIXTEEN PER CENTUM (16%) OF THE 2002-2003
    27  AVERAGE DAILY MEMBERSHIP FOR ALL SCHOOL DISTRICTS.
    28     SECTION 33.  SECTION 2509.8(D) OF THE ACT, ADDED MAY 10, 2000
    29  (P.L.44, NO.16), IS AMENDED AND THE SECTION IS AMENDED BY ADDING
    30  A SUBSECTION TO READ:
    20030H0113B2814                 - 127 -    

     1     SECTION 2509.8.  EXTRAORDINARY SPECIAL EDUCATION PROGRAM
     2  EXPENSES.--* * *
     3     (D)  FOR THE 2000-2001 SCHOOL YEAR [AND EACH SCHOOL YEAR
     4  THEREAFTER,] THROUGH THE 2002-2003 SCHOOL YEAR, THE DEPARTMENT
     5  OF EDUCATION SHALL SET ASIDE TWO PERCENT (2%) OF THE SPECIAL
     6  EDUCATION APPROPRIATION FOR EXTRAORDINARY EXPENSES INCURRED IN
     7  PROVIDING A SPECIAL EDUCATION PROGRAM OR SERVICE TO ONE OR MORE
     8  STUDENTS WITH DISABILITIES AS APPROVED BY THE SECRETARY OF
     9  EDUCATION.
    10     (E)  FOR THE 2003-2004 SCHOOL YEAR AND EACH SCHOOL YEAR
    11  THEREAFTER, THE DEPARTMENT OF EDUCATION SHALL SET ASIDE ONE PER
    12  CENTUM (1%) OF THE SPECIAL EDUCATION APPROPRIATION FOR
    13  EXTRAORDINARY EXPENSES INCURRED IN PROVIDING A SPECIAL EDUCATION
    14  PROGRAM OR SERVICE TO ONE OR MORE STUDENTS WITH DISABILITIES AS
    15  APPROVED BY THE SECRETARY OF EDUCATION.
    16     SECTION 34.  SECTION 2591.1 OF THE ACT, ADDED JUNE 29, 2002
    17  (P.L.524, NO.88), IS AMENDED TO READ:
    18     SECTION 2591.1.  COMMONWEALTH REIMBURSEMENTS FOR CHARTER
    19  SCHOOLS AND CYBER CHARTER SCHOOLS.--(A)  FOR THE 2001-2002
    20  SCHOOL YEAR, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
    21  WITH RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER
    22  SCHOOL APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
    23  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
    24  CYBER CHARTER SCHOOL AS DEFINED PURSUANT TO ARTICLE XVII-A AN
    25  AMOUNT EQUAL TO THIRTY PERCENT (30%) OF THE TOTAL FUNDING
    26  REQUIRED UNDER SECTION 1725-A(A). IF INSUFFICIENT FUNDS ARE
    27  APPROPRIATED TO MAKE COMMONWEALTH REIMBURSEMENTS UNDER THIS
    28  SECTION, THE REIMBURSEMENTS SHALL BE MADE ON A PRO RATA BASIS.
    29     (B)  FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH SHALL
    30  PAY TO EACH SCHOOL DISTRICT THAT RECEIVED FUNDING UNDER
    20030H0113B2814                 - 128 -    

     1  SUBSECTION (A) FOR THE 2001-2002 SCHOOL YEAR AND THAT HAD
     2  RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER SCHOOL
     3  APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
     4  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
     5  CYBER CHARTER SCHOOL AS DEFINED UNDER ARTICLE XVII-A DURING THE
     6  2002-2003 SCHOOL YEAR AN AMOUNT EQUAL TO THE LESSER OF:
     7     (1)  THE PAYMENT RECEIVED FOR THE 2001-2002 SCHOOL YEAR
     8  PURSUANT TO SUBSECTION (A); OR
     9     (2)  THIRTY PERCENT (30%) OF THE TOTAL FUNDING REQUIRED UNDER
    10  SECTION 1725-A(A).
    11     (C)  FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH SHALL
    12  PAY TO EACH SCHOOL DISTRICT THAT DID NOT RECEIVE FUNDING UNDER
    13  SUBSECTION (A) FOR THE 2001-2002 SCHOOL YEAR AND THAT HAD
    14  RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER SCHOOL
    15  APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
    16  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
    17  CYBER CHARTER SCHOOL AS DEFINED UNDER ARTICLE XVII-A DURING THE
    18  2002-2003 SCHOOL YEAR AN AMOUNT EQUAL TO THIRTY PERCENT (30%) OF
    19  THE TOTAL FUNDING REQUIRED UNDER SECTION 1725-A(A).
    20     (D)  FOR THE FISCAL YEAR 2003-2004, IF INSUFFICIENT FUNDS ARE
    21  APPROPRIATED TO MAKE COMMONWEALTH PAYMENTS PURSUANT TO THIS
    22  SECTION, SUCH PAYMENTS SHALL BE MADE ON A PRO RATA BASIS.
    23     SECTION 35.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    24     SECTION 2599.2.  PENNSYLVANIA ACCOUNTABILITY GRANTS.--(A)
    25  DURING THE 2003-2004 FISCAL YEAR, THE COMMONWEALTH SHALL PAY TO
    26  EACH SCHOOL DISTRICT A GRANT EQUAL TO THE AMOUNT DETERMINED
    27  UNDER SUBSECTION (C).
    28     (B)  THE GRANT SHALL BE USED BY A SCHOOL DISTRICT TO ATTAIN
    29  OR MAINTAIN ACADEMIC PERFORMANCE TARGETS. FUNDS OBTAINED UNDER
    30  THIS SECTION MAY BE USED FOR THE FOLLOWING:
    20030H0113B2814                 - 129 -    

     1     (1)  ESTABLISHING, MAINTAINING OR EXPANDING A QUALITY
     2  PREKINDERGARTEN PROGRAM ALIGNED WITH THE CURRENT ACADEMIC
     3  STANDARDS CONTAINED IN 22 PA. CODE CH. 4 (RELATING TO ACADEMIC
     4  STANDARDS AND ASSESSMENT).
     5     (2)  ESTABLISHING, MAINTAINING OR EXPANDING A QUALITY FULL-
     6  DAY KINDERGARTEN PROGRAM ALIGNED WITH THE CURRENT ACADEMIC
     7  STANDARDS CONTAINED IN 22 PA. CODE CH. 4. SUCH PROGRAMS SHALL BE
     8  KEPT OPEN FOR FIVE HOURS EACH DAY FOR THE FULL SCHOOL TERM AS
     9  PROVIDED IN SECTION 1501. THE BOARD OF SCHOOL DIRECTORS OF A
    10  SCHOOL DISTRICT MAY OFFER A FULL-DAY KINDERGARTEN PROGRAM TO
    11  CHILDREN WHO ARE BETWEEN FOUR AND SIX YEARS OLD.
    12     (3)  ESTABLISHING, MAINTAINING OR EXPANDING A CLASS SIZE
    13  REDUCTION PROGRAM. SUCH CLASS SIZE REDUCTION PROGRAM SHALL
    14  APPOINT AND ASSIGN A MINIMUM OF ONE TEACHER FOR EVERY 17
    15  STUDENTS OR TWO TEACHERS FOR EVERY 35 STUDENTS ENROLLED IN A
    16  KINDERGARTEN, FIRST, SECOND OR THIRD GRADE CLASSROOM. ALL
    17  TEACHERS APPOINTED AND ASSIGNED TO TEACH KINDERGARTEN AND FIRST,
    18  SECOND AND THIRD GRADES SHALL BE CERTIFIED IN ACCORDANCE WITH 22
    19  PA. CODE CH. 49 (RELATING TO CERTIFICATION OF PROFESSIONAL
    20  PERSONNEL) OR ITS SUCCESSORS. THE DEPARTMENT SHALL ESTABLISH
    21  GUIDELINES TO ASSURE THAT NO SCHOOL DISTRICT SATISFIES THIS
    22  LEVEL BY MAKING A REDUCTION IN, AND SUBSEQUENT INCREASE TO,
    23  CURRENT TEACHER COMPLEMENT. FOR PURPOSES OF THIS PARAGRAPH, THE
    24  PHRASE "ONE TEACHER FOR EVERY 17 STUDENTS OR TWO TEACHERS FOR
    25  EVERY 35 STUDENTS IN A KINDERGARTEN, FIRST, SECOND AND THIRD
    26  GRADE CLASSROOM" SHALL REFER TO THE NUMBER OF TEACHERS
    27  CONDUCTING A CLASS AT ANY ONE TIME IN A CLASSROOM CONTAINING THE
    28  APPLICABLE NUMBER OF STUDENTS.
    29     (4)  ESTABLISHING, EXPANDING OR MAINTAINING PROGRAMS THAT
    30  PROMOTE THE AVAILABILITY, COORDINATION, INTEGRATION AND
    20030H0113B2814                 - 130 -    

     1  UTILIZATION OF SOCIAL AND HEALTH SERVICES, ASSOCIATED RESOURCES
     2  AND ANCILLARY RESOURCES TO MEET THE NEEDS OF CHILDREN AND
     3  FAMILIES IN ADDRESSING ISSUES THAT MAY SERVE TO LIMIT STUDENT
     4  ACADEMIC ACHIEVEMENT.
     5     (5)  NOTWITHSTANDING THE PROVISIONS OF ARTICLE XV-C,
     6  PROVIDING TUTORING ASSISTANCE.
     7     (6)  IMPROVING THE ACADEMIC PERFORMANCE OF SUBGROUPS
     8  IDENTIFIED UNDER THE NO CHILD LEFT BEHIND ACT OF 2001.
     9     (7)  ESTABLISHING, EXPANDING OR MAINTAINING PROGRAMS TO
    10  ASSIST IN THE BUILDING OF STRONG SCIENCE AND APPLIED-KNOWLEDGE
    11  SKILLS IN STUDENTS OF THIS COMMONWEALTH.
    12     (8)  PROVIDING ADDITIONAL PROGRAMS FOR PROFESSIONAL
    13  DEVELOPMENT TRAINING, WHICH INCLUDE TRAINING IN MATHEMATICS,
    14  SCIENCE AND LITERACY-SPECIFIC CURRICULUM AND INSTRUCTIONAL
    15  STRATEGIES; TRAINING IN SCHOOL-WIDE IMPROVEMENT PLANNING;
    16  ANALYSIS OF STUDENT ACHIEVEMENT DATA, INCLUDING STUDENT WORK AND
    17  THE IMPLICATIONS FOR CLASSROOM PRACTICE; OBSERVING AND STUDYING
    18  EXEMPLARY SCHOOL AND CLASSROOM PRACTICES; IMPLEMENTING SCHOOL-
    19  WIDE PROGRAMS AND CLASSROOM MANAGEMENT STRATEGIES DESIGNED TO
    20  IMPROVE STUDENT CONDUCT; USING TECHNOLOGY TO BOOST STUDENT
    21  ACHIEVEMENT; CONDUCTING TRANSITION PLANNING AND CURRICULUM
    22  ALIGNMENT ACROSS SCHOOLS AND GRADE LEVELS, AND IMPLEMENTING
    23  SECONDARY STRATEGIES TO INCREASE STUDENT ENGAGEMENT AND
    24  PERSONALIZE LEARNING.
    25     (9)  ESTABLISHING, EXPANDING OR MAINTAINING MATH AND LITERACY
    26  COACHING PROGRAMS WITHIN SCHOOLS TO IMPROVE MATH AND READING
    27  INSTRUCTION.
    28     (10)  PROVIDING FINANCIAL INCENTIVES TO HIGHLY QUALIFIED,
    29  TENURED TEACHERS TO WORK IN THE MOST ACADEMICALLY CHALLENGED
    30  SCHOOLS IN A DISTRICT OR FOR FINANCIAL INCENTIVES TO AID IN THE
    20030H0113B2814                 - 131 -    

     1  RECRUITMENT OF CERTIFICATED TEACHERS IN MATHEMATICS, SCIENCE,
     2  LANGUAGE ARTS OR ENGLISH AS A SECOND LANGUAGE IN THE MOST
     3  ACADEMICALLY CHALLENGED SCHOOLS IN A DISTRICT.
     4     (11)  PROVIDING SUCH OTHER PROGRAMS OR ACTIVITIES THAT THE
     5  DISTRICT BELIEVES ARE ESSENTIAL TO ACHIEVING OR MAINTAINING ITS
     6  ACADEMIC PERFORMANCE TARGETS THROUGH THE YEAR 2014, SUBJECT TO
     7  THE FOLLOWING PROVISIONS:
     8     (I)  A DISTRICT DESIRING TO IMPLEMENT A PROGRAM OR ACTIVITY
     9  PURSUANT TO THIS PARAGRAPH SHALL NOTIFY THE SECRETARY IN WRITING
    10  OF ITS INTENT AND THOSE PROGRAMS OR ACTIVITIES TO BE SO
    11  IMPLEMENTED.
    12     (II)  A DISTRICT THAT FAILS TO RECEIVE NOTIFICATION FROM THE
    13  SECRETARY, WITHIN FIFTEEN (15) DAYS OF RECEIPT, THAT ITS NOTICE
    14  UNDER SUBPARAGRAPH (I) HAS BEEN DISAPPROVED MAY PROCEED TO
    15  IMPLEMENT THE PROPOSED PROGRAMS OR ACTIVITIES.
    16     (III)  THE DEPARTMENT SHALL FURNISH A MONTHLY REPORT TO THE
    17  MAJORITY AND MINORITY CHAIRPERSONS OF THE APPROPRIATIONS
    18  COMMITTEE AND EDUCATION COMMITTEE OF THE SENATE AND THE
    19  APPROPRIATIONS COMMITTEE AND EDUCATION COMMITTEE OF THE HOUSE OF
    20  REPRESENTATIVES TO INCLUDE THE FOLLOWING INFORMATION FOR EACH
    21  DISTRICT MAKING A SUBMISSION UNDER SUBPARAGRAPH (I): THE
    22  DISTRICT'S NAME; A BRIEF DESCRIPTION OF THE PROGRAMS OR
    23  ACTIVITIES THE DISTRICT REQUESTED TO IMPLEMENT; AND ANY ACTION
    24  TAKEN BY THE SECRETARY.
    25     (C)  THE DEPARTMENT SHALL ESTABLISH A PROGRAM OF ANNUAL
    26  ACCOUNTABILITY GRANTS AND FUNDS SHALL BE ALLOCATED TO SCHOOL
    27  DISTRICTS AS FOLLOWS:
    28     (1)  THE DEPARTMENT SHALL AWARD A GRANT SUPPLEMENT FOR SCHOOL
    29  DISTRICTS TO HELP STUDENTS SCORING BELOW PROFICIENT TO ATTAIN
    30  PROFICIENCY. THE GRANT SUPPLEMENT UNDER THIS PARAGRAPH SHALL BE
    20030H0113B2814                 - 132 -    

     1  DETERMINED BY:
     2     (I)  DIVIDING THE SCHOOL DISTRICT'S NUMBER OF PSSA TESTS
     3  SCORED BELOW BASIC AND BASIC IN MATHEMATICS AND READING BY THE
     4  SCHOOL DISTRICT'S NUMBER OF PSSA TESTS SCORED IN MATHEMATICS AND
     5  READING TO DETERMINE THE SCHOOL DISTRICT'S AVERAGE PERCENTAGE OF
     6  STUDENTS WHO SCORE BELOW PROFICIENT.
     7     (II)  MULTIPLYING THE SCHOOL DISTRICT'S 2002-2003 AVERAGE
     8  DAILY MEMBERSHIP BY ITS AVERAGE PERCENTAGE OF STUDENTS WHO
     9  SCORED BELOW PROFICIENT TO DETERMINE THE SCHOOL DISTRICT'S
    10  AVERAGE DAILY MEMBERSHIP BELOW PROFICIENT.
    11     (III)  MULTIPLYING THE SCHOOL DISTRICT'S 2003-2004 MARKET
    12  VALUE/INCOME AID RATIO BY ITS AVERAGE DAILY MEMBERSHIP BELOW
    13  PROFICIENT.
    14     (IV)  MULTIPLYING THE PRODUCT FROM SUBPARAGRAPH (III) BY ONE
    15  HUNDRED FIFTY MILLION DOLLARS ($150,000,000).
    16     (V)  DIVIDING THE PRODUCT FROM SUBPARAGRAPH (IV) BY THE SUM
    17  OF THE PRODUCTS OF THE 2003-2004 MARKET VALUE/INCOME AID RATIO
    18  MULTIPLIED BY THE AVERAGE DAILY MEMBERSHIP BELOW PROFICIENT FOR
    19  ALL SCHOOL DISTRICTS.
    20     (2)  THE DEPARTMENT SHALL AWARD A GRANT SUPPLEMENT FOR SCHOOL
    21  DISTRICTS TO HELP MAINTAIN AND REWARD PROFICIENCY. THE GRANT
    22  SUPPLEMENT UNDER THIS PARAGRAPH SHALL BE DETERMINED BY:
    23     (I)  DIVIDING THE SCHOOL DISTRICT'S NUMBER OF PSSA TESTS
    24  SCORED PROFICIENT AND ADVANCED IN MATHEMATICS AND READING BY THE
    25  SCHOOL DISTRICT'S NUMBER OF PSSA TESTS SCORED IN MATHEMATICS AND
    26  READING TO DETERMINE THE SCHOOL DISTRICT'S AVERAGE PERCENTAGE OF
    27  STUDENTS WHO SCORE PROFICIENT.
    28     (II)  MULTIPLYING THE SCHOOL DISTRICT'S 2002-2003 AVERAGE
    29  DAILY MEMBERSHIP BY ITS AVERAGE PERCENTAGE OF STUDENTS WHO
    30  SCORED PROFICIENT TO DETERMINE THE SCHOOL DISTRICT'S AVERAGE
    20030H0113B2814                 - 133 -    

     1  DAILY MEMBERSHIP PROFICIENT.
     2     (III)  MULTIPLYING THE SCHOOL DISTRICT'S 2003-2004 MARKET
     3  VALUE/INCOME AID RATIO BY ITS AVERAGE DAILY MEMBERSHIP
     4  PROFICIENT.
     5     (IV)  MULTIPLYING THE PRODUCT FROM SUBPARAGRAPH (III) BY
     6  FIFTY MILLION DOLLARS ($50,000,000).
     7     (V)  DIVIDING THE PRODUCT FROM SUBPARAGRAPH (IV) BY THE SUM
     8  OF THE PRODUCTS OF THE 2003-2004 MARKET VALUE/INCOME AID RATIO
     9  MULTIPLIED BY THE AVERAGE DAILY MEMBERSHIP PROFICIENT FOR ALL
    10  SCHOOL DISTRICTS.
    11     (3)  THE TOTAL AMOUNT OF A SCHOOL DISTRICT'S ACCOUNTABILITY
    12  GRANT SHALL EQUAL THE SUM OF THE AMOUNTS CALCULATED UNDER
    13  PARAGRAPHS (1) AND (2).
    14     (4)  THE DEPARTMENT SHALL ESTABLISH REPORTING PROCEDURES AND
    15  AUDITING GUIDELINES TO ENSURE THAT GRANT FUNDS ARE UTILIZED IN
    16  ACCORDANCE WITH SUBSECTION (B).
    17     (5)  SCHOOL DISTRICTS SHALL BE REQUIRED TO MAINTAIN SEPARATE
    18  ACCOUNTS IN THEIR OWN BUDGETS TO FACILITATE MONITORING THE USE
    19  OF THE GRANT FUNDS.
    20     (6)  IN NO CASE SHALL A SCHOOL DISTRICT USE GRANT FUNDS FOR
    21  ADMINISTRATIVE COSTS AS DEFINED BY THE DEPARTMENT.
    22     (7)  THE DEPARTMENT SHALL REDUCE THE AMOUNT OF A STATE
    23  SUBSIDY PAYMENT TO A SCHOOL DISTRICT BY THE AMOUNT OF ANY GRANT
    24  FUNDS PROVIDED UNDER THIS SECTION IF THE SCHOOL DISTRICT DOES
    25  NOT USE THE GRANT FUNDS IN ACCORDANCE WITH THE ALLOWABLE USES
    26  ESTABLISHED IN SUBSECTION (B) AND THE ACCOUNTABILITY GRANT PLAN
    27  SUBMITTED PURSUANT TO SUBSECTION (D).
    28     (8)  NO GRANT FUNDS MAY BE USED DIRECTLY TO INCREASE SALARIES
    29  EXCEPT AS PROVIDED FOR IN SUBSECTION (B)(10).
    30     (9)  NO SCHOOL DISTRICT MAY PLACE GRANT FUNDS RECEIVED UNDER
    20030H0113B2814                 - 134 -    

     1  THIS SECTION IN A RESERVE ACCOUNT.
     2     (D)  (1)  EACH SCHOOL DISTRICT THAT RECEIVES A GRANT PURSUANT
     3  TO THIS SECTION SHALL WITHIN SIXTY (60) DAYS OF RECEIPT OF THE
     4  GRANT, SUBMIT TO THE DEPARTMENT AN ACCOUNTABILITY GRANT PLAN.
     5     (2)  THE PLAN SHALL IDENTIFY THE PROGRAMS AND SERVICES THE
     6  SCHOOL DISTRICT WILL UNDERTAKE UTILIZING THE GRANT FUNDS TO
     7  ATTAIN OR MAINTAIN ACADEMIC PERFORMANCE TARGETS FOR SPECIFIC
     8  BUILDINGS AND THE SCHOOL DISTRICT.
     9     (3)  THE PLAN SHALL CONTAIN A DESCRIPTION OF THE ANTICIPATED
    10  IMPACT THESE PROGRAMS AND SERVICES WILL HAVE ON ATTAINING OR
    11  MAINTAINING ACADEMIC PERFORMANCE TARGETS.
    12     (4)  THE SECRETARY OF EDUCATION, UPON REVIEW OF A SCHOOL
    13  DISTRICT PLAN, MAY MAKE RECOMMENDATIONS FOR ALTERNATIVE
    14  UTILIZATION OF GRANT FUNDS THAT MAY INCREASE THE ABILITY OF THE
    15  SCHOOL DISTRICT TO ATTAIN OR MAINTAIN ADEQUATE YEARLY PROGRESS.
    16     (E)  AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES
    17  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION:
    18     "APPLIED KNOWLEDGE."  INFORMATION TECHNOLOGY, COMPUTER
    19  EQUIPMENT, EDUCATION SOFTWARE AND RELATED ADVANCED TECHNOLOGIES
    20  NECESSARY TO INCREASE STUDENTS' ACCESS TO WORLDWIDE INFORMATION
    21  AND THEIR EXPERTISE IN THIS REGARD.
    22     "GRANT."  A PENNSYLVANIA ACCOUNTABILITY GRANT AWARDED UNDER
    23  THIS SECTION.
    24     "HIGHLY QUALIFIED."  A HIGHLY QUALIFIED ELEMENTARY TEACHER OR
    25  A HIGHLY QUALIFIED MIDDLE OR SECONDARY TEACHER AS DEFINED IN 22
    26  PA. CODE, § 403.2 (RELATING TO DEFINITIONS).
    27     "SCIENCE."  A CURRICULAR OFFERING IN SUPPORT OF THE SCIENCE
    28  AND TECHNOLOGY CONTENT AREA AS DEFINED IN 22 PA. CODE § 4.12
    29  (RELATING TO ACADEMIC STANDARDS).
    30     SECTION 36.  THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
    20030H0113B2814                 - 135 -    

     1                           ARTICLE XXV-A
     2                KEYSTONE EDUCATIONAL ACCOUNTABILITY
     3  SECTION 2501-A.  SCOPE.
     4     THIS ARTICLE DEALS WITH EDUCATIONAL ACCOUNTABILITY.
     5  SECTION 2502-A.  PURPOSE.
     6     THE PURPOSE OF THIS ARTICLE IS TO PUT IN PLACE AN ASSESSMENT
     7  SYSTEM AIMED AT IMPROVING SCHOOL DISTRICT MANAGEMENT PRACTICES
     8  AND USE OF RESOURCES, AS WELL AS TO IDENTIFY POTENTIAL COST
     9  SAVINGS, BY PROVIDING FOR THE ESTABLISHMENT OF A SERIES OF BEST
    10  PRACTICES COVERING A BROAD RANGE OF SCHOOL DISTRICT EDUCATIONAL
    11  AND OPERATIONAL PROGRAMS AND SERVICES AS STANDARDS FOR A
    12  PERIODIC FINANCIAL MANAGEMENT PRACTICES REVIEW OF SCHOOL
    13  DISTRICTS IN THIS COMMONWEALTH. THE REVIEWS ARE INTENDED TO:
    14         (1)  INCREASE PUBLIC CONFIDENCE IN AND SUPPORT FOR SCHOOL
    15     DISTRICTS THAT DEMONSTRATE EFFICIENT USE OF TAXPAYER
    16     RESOURCES.
    17         (2)  ENCOURAGE COST SAVINGS.
    18         (3)  LINK FINANCIAL PLANNING AND BUDGETING TO DISTRICT
    19     PRIORITIES, INCLUDING STUDENT PERFORMANCE.
    20         (4)  IMPROVE SCHOOL DISTRICT MANAGEMENT AND USE OF
    21     RESOURCES.
    22  SECTION 2503-A.  DEFINITIONS.
    23     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    24  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    25  CONTEXT CLEARLY INDICATES OTHERWISE:
    26     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    27  COMMONWEALTH.
    28     "REVIEW."  THE BEST FINANCIAL MANAGEMENT PRACTICES REVIEW
    29  ESTABLISHED BY THIS ARTICLE.
    30     "SCHOOL BOARD."  A BOARD OF SCHOOL DIRECTORS OF A SCHOOL
    20030H0113B2814                 - 136 -    

     1  DISTRICT.
     2     "SECRETARY."  THE SECRETARY OF EDUCATION OF THE COMMONWEALTH.
     3     "STANDARDS."  THE BEST FINANCIAL MANAGEMENT PRACTICES
     4  STANDARDS ESTABLISHED BY THE SECRETARY OF EDUCATION AND
     5  PROMULGATED BY THE STATE BOARD OF EDUCATION PURSUANT TO THIS
     6  ARTICLE.
     7     "STATE BOARD."  THE STATE BOARD OF EDUCATION.
     8     "TEAM."  THE LOCAL FINANCIAL MANAGEMENT ADVISORY TEAM
     9  ESTABLISHED PURSUANT TO SECTION 2508-A.
    10  SECTION 2504-A.  ESTABLISHMENT.
    11     (A)  REVIEW SYSTEM.--THE DEPARTMENT, IN CONSULTATION WITH
    12  STAKEHOLDERS AS SET FORTH IN SUBSECTION (D), SHALL DEVELOP A
    13  SYSTEM FOR REVIEWING THE FINANCIAL MANAGEMENT PRACTICES OF
    14  SCHOOL DISTRICTS IN THIS COMMONWEALTH BASED ON A SERIES OF BEST
    15  FINANCIAL MANAGEMENT PRACTICES STANDARDS ADOPTED FOR SPECIFIC
    16  AREAS OF DISTRICT PROGRAMS AND OPERATIONS.
    17     (B)  RESOURCES.--IN DEVELOPING THIS SYSTEM, THE DEPARTMENT
    18  SHALL DRAW ON INFORMATION GARNERED THROUGH THE EXISTING SCHOOL
    19  EVALUATION SERVICES REPORTS.
    20     (C)  ADVISORY COMMITTEE.--
    21         (1)  THERE IS HEREBY ESTABLISHED IN THE DEPARTMENT OF
    22     EDUCATION AN ADVISORY COMMITTEE CONSISTING OF NINE MEMBERS TO
    23     ASSIST THE SECRETARY IN CARRYING OUT THE SECRETARY'S DUTIES
    24     UNDER THIS ARTICLE.
    25         (2)  MEMBERSHIP ON THE COMMITTEE SHALL INCLUDE:
    26             (I)  A REPRESENTATIVE NAMED BY AN ESTABLISHED
    27         RECOGNIZED ASSOCIATION REPRESENTING SCHOOL
    28         ADMINISTRATORS.
    29             (II)  A REPRESENTATIVE NAMED BY AN ESTABLISHED
    30         RECOGNIZED ASSOCIATION REPRESENTING SCHOOL BUSINESS
    20030H0113B2814                 - 137 -    

     1         OFFICIALS.
     2             (III)  ONE REPRESENTATIVE NAMED BY EACH OF THE
     3         ESTABLISHED RECOGNIZED ORGANIZATIONS REPRESENTING THE
     4         STATE'S PUBLIC SCHOOL EMPLOYEES.
     5             (IV)  A REPRESENTATIVE NAMED BY AN ESTABLISHED
     6         RECOGNIZED ORGANIZATION REPRESENTING THE STATE'S BOARDS
     7         OF SCHOOL DIRECTORS.
     8             (V)  A REPRESENTATIVE NAMED BY AN ESTABLISHED
     9         RECOGNIZED ORGANIZATION REPRESENTING THE STATE'S COLLEGES
    10         AND UNIVERSITIES.
    11             (VI)  THREE MEMBERS NAMED BY THE SECRETARY TO
    12         INCLUDE: ONE REPRESENTATIVE FROM AN ESTABLISHED
    13         RECOGNIZED ORGANIZATION REPRESENTING THE STATE'S BUSINESS
    14         COMMUNITY; ONE REPRESENTATIVE OF AN ESTABLISHED
    15         RECOGNIZED TAXPAYER ORGANIZATION AND ONE MEMBER FROM THE
    16         GENERAL PUBLIC.
    17         (3)  THE COMMITTEE SHALL:
    18             (I)  CONSULT WITH THE SECRETARY CONCERNING ANY MATTER
    19         ARISING UNDER THE ADMINISTRATION OF THIS ARTICLE.
    20             (II)  ASSIST THE SECRETARY IN COMPLYING WITH THE
    21         PROVISIONS OF SECTION 2504-A(D) TO INCLUDE PROVIDING
    22         LISTS OF EXPERTS IN VARIOUS AREAS ON WHICH STANDARDS AND
    23         INDICATORS ARE BEING DEVELOPED PURSUANT TO SECTION 2505-
    24         A.
    25     (D)  CONSULTATION.--IN ARRIVING AT ITS BEST PRACTICES AND
    26  THEIR INDICATORS, THE DEPARTMENT SHALL CONSULT WITH A WIDE
    27  VARIETY OF EDUCATIONAL STAKEHOLDERS, INCLUDING SCHOOL DISTRICT
    28  ADMINISTRATORS, SCHOOL BUSINESS OFFICIALS, SCHOOL BOARD MEMBERS,
    29  PROFESSIONAL EDUCATION ORGANIZATIONS, TAXPAYER ORGANIZATIONS,
    30  LEGISLATORS AND LEGISLATIVE STAFF AND THE OFFICE OF THE BUDGET.
    20030H0113B2814                 - 138 -    

     1  ADDITIONALLY, THE DEPARTMENT IS TO SEEK ADVICE FROM CORPORATE
     2  AND GOVERNMENTAL EXPERTS IN FINANCIAL BEST MANAGEMENT PRACTICES
     3  AND OTHER STATES WITH SIMILAR PROGRAMS.
     4     (E)  REGULATIONS.--NO LATER THAN ONE YEAR FROM THE EFFECTIVE
     5  DATE OF THIS ARTICLE, THE SECRETARY SHALL PROMULGATE THE BEST
     6  MANAGEMENT PRACTICES STANDARDS AS REGULATIONS. DUE TO THE URGENT
     7  NEED FOR AN EXPEDITED BUT PUBLIC REGULATORY PROCESS, THE STATE
     8  BOARD, IN ADOPTING THESE REGULATIONS, SHALL FOLLOW THE
     9  PROCEDURES SET FORTH IN THE ACT OF JULY 31, 1968 (P.L.769,
    10  NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW, AND THE
    11  ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY
    12  REVIEW ACT, FOR THE PROMULGATION AND REVIEW OF FINAL-OMITTED
    13  REGULATIONS.
    14  SECTION 2505-A.  BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS.
    15     (A)  GENERAL.--THE BEST FINANCIAL MANAGEMENT PRACTICES
    16  STANDARDS MUST, AT A MINIMUM, INSTILL PUBLIC CONFIDENCE BY
    17  ADDRESSING SCHOOL DISTRICTS' USE OF RESOURCES, IDENTIFYING WAYS
    18  THAT THE DISTRICT MAY SAVE FUNDS AND IMPROVING THE DISTRICTS'
    19  PERFORMANCE AND ACCOUNTABILITY SYSTEMS, INCLUDING PUBLIC
    20  ACCOUNTABILITY.
    21     (B)  INITIAL DEVELOPMENT.--TO ASSURE THESE GOALS ARE MET,
    22  BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS SHALL INITIALLY BE
    23  DEVELOPED FOR THE FOLLOWING AREAS:
    24         (1)  MANAGEMENT STRUCTURES.
    25         (2)  PERFORMANCE ACCOUNTABILITY.
    26         (3)  EDUCATIONAL SERVICE DELIVERY.
    27         (4)  ADMINISTRATIVE AND INSTRUCTIONAL TECHNOLOGY.
    28         (5)  PERSONNEL SYSTEMS AND BENEFITS.
    29         (6)  FACILITIES CONSTRUCTION.
    30         (7)  FACILITIES MAINTENANCE.
    20030H0113B2814                 - 139 -    

     1         (8)  TRANSPORTATION.
     2         (9)  FOOD SERVICE OPERATIONS.
     3         (10)  COST CONTROL SYSTEMS.
     4     (C)  INDICATORS.--TO HELP ASSESS WHETHER A DISTRICT IS
     5  MEETING THESE STANDARDS, THE DEPARTMENT SHALL ALSO DEVELOP
     6  SPECIFIC INDICATORS FOR EACH BEST PRACTICE. INDICATORS WILL
     7  REPRESENT THE KINDS OF ACTIVITIES A DISTRICT WOULD UNDERTAKE IF
     8  THE DISTRICT WERE USING A PARTICULAR BEST PRACTICE.
     9  SECTION 2506-A.  REVIEW PROCESS.
    10     (A)  REVIEW CYCLE.--EVERY SCHOOL DISTRICT SHALL BE SUBJECT TO
    11  A BEST FINANCIAL MANAGEMENT PRACTICES REVIEW ON A CONTINUING
    12  SIX-YEAR CYCLE. ONCE THE SIX-YEAR CYCLE HAS BEEN COMPLETED,
    13  REVIEWS SHALL CONTINUE, BEGINNING AGAIN WITH THOSE DISTRICTS
    14  INCLUDED IN THE FIRST YEAR OF THE CYCLE UNLESS THE DISTRICT HAS
    15  BEEN DEEMED ENTITLED TO A WAIVER PURSUANT TO SECTION 2507-A(D).
    16     (B)  STRATEGIC PLAN.--EACH DISTRICT'S REVIEW SHALL BE
    17  SCHEDULED ONE YEAR PRIOR TO THE DATE REQUIRED FOR FILING OF THE
    18  DISTRICT'S STRATEGIC PLAN UNDER 22 PA. CODE § 4.13 (RELATING TO
    19  STRATEGIC PLANS) OR ITS SUCCESSOR REGULATIONS, EXCEPT THAT ALL
    20  DISTRICTS PLACED ON THE EDUCATION EMPOWERMENT LIST PURSUANT TO
    21  SECTION 1703-B OR DETERMINED TO BE DISTRESSED PURSUANT TO
    22  SECTION 691 AS OF THE EFFECTIVE DATE OF THIS ARTICLE SHALL BE
    23  INCLUDED IN THE INITIAL CYCLE OF SCHOOL DISTRICTS SUBJECT TO A
    24  REVIEW.
    25     (C)  PRIVATE FIRMS.--THE DEPARTMENT IS AUTHORIZED TO CONTRACT
    26  WITH A PRIVATE FIRM OR FIRMS, SELECTED THROUGH A FORMAL REQUEST
    27  FOR PROPOSAL PROCESS TO PERFORM EACH REVIEW, TO THE EXTENT THAT
    28  FUNDS ARE PROVIDED FOR THIS PURPOSE IN THE GENERAL APPROPRIATION
    29  ACT EACH YEAR. ANY PRIVATE FIRM AWARDED A CONTRACT PURSUANT TO
    30  THIS SUBSECTION SHALL HAVE EXPERTISE IN SCHOOL DISTRICT FINANCE.
    20030H0113B2814                 - 140 -    

     1     (D)  SELF-ASSESSMENT.--DISTRICTS SCHEDULED FOR REVIEW SHALL
     2  INITIALLY COMPLETE A SELF-ASSESSMENT INSTRUMENT DEVELOPED BY THE
     3  DEPARTMENT WHICH INDICATES THE SCHOOL DISTRICT'S OWN EVALUATION
     4  OF ITS PERFORMANCE ON EACH BEST PRACTICE. THE SELF-ASSESSMENT
     5  SHALL BEGIN NO LATER THAN 60 DAYS PRIOR TO THE COMMENCEMENT OF
     6  THE REVIEW, WITH THE COMPLETED ASSESSMENT INSTRUMENT AND
     7  SUPPORTING DOCUMENTATION SUBMITTED TO THE DEPARTMENT NO LATER
     8  THAN THE DATE SCHEDULED FOR COMMENCEMENT OF THE REVIEW OF THE
     9  DISTRICT.
    10     (E)  PUBLIC MEETINGS DURING REVIEW.--DURING THE REVIEW THE
    11  DEPARTMENT AND THE FIRM CONDUCTING THE REVIEW SHALL HOLD AT
    12  LEAST ONE ADVERTISED PUBLIC MEETING IN ORDER TO EXPLAIN THE BEST
    13  FINANCIAL MANAGEMENT PRACTICES REVIEW PROCESS AND OBTAIN INPUT
    14  FROM STUDENTS, PARENTS, THE BUSINESS COMMUNITY AND OTHER
    15  DISTRICT RESIDENTS REGARDING THEIR OBSERVATIONS AND
    16  RECOMMENDATIONS ABOUT THE OPERATIONS AND MANAGEMENT OF THE
    17  DISTRICT.
    18     (F)  INFORMATION USED IN REVIEW PROCESS.--IN COMPLETING ITS
    19  REVIEW AND DEVELOPING THE FINAL REPORT, THE REVIEW TEAM SHALL
    20  USE INFORMATION AVAILABLE THROUGH THE EXISTING SCHOOL EVALUATION
    21  SERVICES REPORTS.
    22     (G)  COMPLETION OF REVIEW.--REVIEWS ARE TO BE COMPLETED
    23  WITHIN SIX MONTHS AFTER COMMENCEMENT. A FINAL REPORT OF THE
    24  REVIEW TEAM IS TO BE ISSUED TO THE SECRETARY, THE GOVERNOR, THE
    25  DISTRICT AND ITS SCHOOL BOARD, AND THE CHAIRMAN AND MINORITY
    26  CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE SENATE AND THE
    27  CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE
    28  OF THE HOUSE OF REPRESENTATIVES, THE CHAIRMAN AND MINORITY
    29  CHAIRMAN OF THE EDUCATION COMMITTEE OF THE SENATE AND THE
    30  CHAIRMAN AND MINORITY CHAIRMAN OF THE EDUCATION COMMITTEE OF THE
    20030H0113B2814                 - 141 -    

     1  HOUSE OF REPRESENTATIVES WITHIN 60 DAYS OF COMPLETION OF THE
     2  REVIEW.
     3     (H)  PUBLIC MEETING AFTER REVIEW.--WITHIN 30 DAYS OF RECEIPT
     4  OF THE FINAL REPORT OF THE REVIEW, THE SCHOOL BOARD SHALL HOLD A
     5  PUBLIC MEETING TO SHARE THE RESULTS WITH RESIDENTS OF THE
     6  DISTRICT. SUCH MEETING SHALL COMPLY WITH THE PROVISIONS OF 65
     7  PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS).
     8     (I)  PUBLICATION ON WORLD WIDE WEB.--NO LATER THAN 15 DAYS
     9  AFTER THE ISSUANCE OF THE FINAL REPORT BY THE REVIEW TEAM, THE
    10  DEPARTMENT SHALL PUBLISH THE DISTRICTS' REVIEW ON ITS WORLD WIDE
    11  WEB SITE. PRIOR TO PUBLICATION, THE DEPARTMENT SHALL ISSUE A
    12  PRESS RELEASE INFORMING THE PUBLIC OF THE AVAILABILITY OF THIS
    13  INFORMATION.
    14     (J)  FINDINGS IN FINAL REPORT.--THE FINAL REPORT SHALL
    15  INCLUDE FINDINGS RELATED TO COMPLIANCE WITH THE STANDARDS BASED
    16  ON THEIR ESTABLISHED INDICATORS; POTENTIAL COST SAVINGS;
    17  SUGGESTED RECOMMENDATIONS FOR IMPROVEMENT; AND, FOR THOSE
    18  DISTRICTS FOUND NOT TO BE IN COMPLIANCE WITH THE STANDARDS, A
    19  THREE-YEAR ACTION PLAN FOR ACHIEVING COMPLIANCE. THIS ACTION
    20  PLAN IS TO BE DEVELOPED IN CONJUNCTION WITH OFFICIALS FROM THE
    21  SCHOOL DISTRICT.
    22  SECTION 2507-A.  STATE CERTIFICATION AS A KEYSTONE DISTRICT.
    23     (A)  GENERAL RULE.--A DISTRICT THAT HAS BEEN DETERMINED BY
    24  THE REVIEW TO BE USING THE BEST PRACTICES SHALL BE CERTIFIED BY
    25  THE SECRETARY AS A KEYSTONE DISTRICT. SUCH DESIGNATION IS
    26  EFFECTIVE FOR SIX YEARS FROM THE CERTIFICATION DATE OR UNTIL THE
    27  NEXT REVIEW IS COMPLETED, WHICHEVER IS LATER.
    28     (B)  PUBLICATION OF STATUS.--A DISTRICT SO DESIGNATED IS
    29  AUTHORIZED TO PUBLICIZE ITS STATUS AS A KEYSTONE DISTRICT ON ITS
    30  BUILDINGS AND IN ANY PUBLICATIONS OR CORRESPONDENCE IT DEEMS
    20030H0113B2814                 - 142 -    

     1  APPROPRIATE.
     2     (C)  ANNUAL VERIFICATION.--EXCEPT AS PROVIDED IN SECTION
     3  2510-A, A DISTRICT THAT HAS BEEN CERTIFIED PURSUANT TO THIS
     4  SECTION SHALL ANNUALLY VERIFY TO THE SECRETARY THAT IT HAS MADE
     5  NO CHANGES IN ANY OF ITS PRACTICES AND CONTINUES TO CONFORM TO
     6  THE BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS.
     7     (D)  WAIVER.--A SCHOOL DISTRICT THAT HAS BEEN AWARDED A
     8  CERTIFICATION AS A KEYSTONE DISTRICT AND WHICH HAS MADE ANNUAL
     9  REPORTS PURSUANT TO SUBSECTION (C) SHALL BE GRANTED A WAIVER
    10  FROM THE REQUIREMENT OF UNDERGOING ITS NEXT SCHEDULED REVIEW.
    11  DISTRICTS GRANTED A WAIVER UNDER THIS SUBSECTION ARE NOT
    12  ELIGIBLE FOR WAIVER OF THE REVIEW TO BE CONDUCTED AFTER THE ONE
    13  WHICH WAS WAIVED.
    14  SECTION 2508-A.  FAILURE TO MEET BEST FINANCIAL MANAGEMENT
    15                 PRACTICES STANDARDS.
    16     (A)  ACTION PLAN.--IF THE REPORT PROVIDED FOR IN SECTION
    17  2506-A FINDS THAT THE DISTRICT DOES NOT CONFORM TO THE
    18  STANDARDS, THE REPORT MUST CONTAIN AN ACTION PLAN DETAILING HOW
    19  THE DISTRICT MAY MEET THE STANDARDS WITHIN THREE YEARS.
    20     (B)  FINANCIAL MANAGEMENT ADVISORY TEAM.--NO LESS THAN 60
    21  DAYS FOLLOWING RECEIPT OF THE REPORT, THE SCHOOL BOARD SHALL
    22  ESTABLISH A LOCAL FINANCIAL MANAGEMENT ADVISORY TEAM. THE TEAM
    23  SHALL CONSIST OF 11 MEMBERS AS FOLLOWS:
    24         (1)  ONE MEMBER OF THE SCHOOL BOARD WHO MAY BE THE
    25     PRESIDENT OR A DESIGNATED BOARD MEMBER.
    26         (2)  THE SUPERINTENDENT OF THE DISTRICT.
    27         (3)  THE SCHOOL BUSINESS MANAGER OR THE INDIVIDUAL
    28     RESPONSIBLE FOR THE FISCAL MANAGEMENT OF THE DISTRICT.
    29         (4)  A PRINCIPAL SELECTED BY ALL THE PRINCIPALS IN THE
    30     DISTRICT.
    20030H0113B2814                 - 143 -    

     1         (5)  A TEACHER SELECTED BY ALL THE TEACHERS IN THE
     2     DISTRICT.
     3         (6)  TWO MEMBERS OF THE GENERAL PUBLIC, ONE OF WHOM SHALL
     4     BE A REPRESENTATIVE OF A LOCAL TAXPAYER ORGANIZATION IF ONE
     5     EXISTS IN THE DISTRICT.
     6         (7)  ONE PARENT OF A STUDENT FROM THE DISTRICT.
     7         (8)  TWO LOCAL REPRESENTATIVES OF BUSINESS, AT LEAST ONE
     8     OF WHOM MUST HAVE EXPERIENCE IN BANKING OR FINANCE.
     9         (9)  A LOCAL COMMUNITY LEADER.
    10     (C)  PROCEDURE.--THE SCHOOL BOARD SHALL ESTABLISH PROCEDURES
    11  FOR SELECTING THE PARENT, THE BUSINESS AND COMMUNITY LEADERS AND
    12  MEMBERS OF THE GENERAL PUBLIC IN ORDER TO ENSURE PUBLIC
    13  AWARENESS OF THESE OPENINGS AND SOLICIT INPUT FROM THE
    14  COMMUNITY.
    15     (D)  CHAIRPERSON.--THE TEAM SHALL ELECT A CHAIRPERSON FROM
    16  AMONG ITS MEMBERSHIP AT ITS FIRST MEETING.
    17     (E)  TIME PERIOD.--THE TEAM SHALL BE RESPONSIBLE FOR
    18  IMPLEMENTATION OF THE ACTION PLAN CONTAINED IN THE DISTRICT'S
    19  REPORT WITHIN A THREE-YEAR TIME PERIOD.
    20     (F)  TECHNICAL ADVISORS.--UPON REQUEST, THE DEPARTMENT SHALL
    21  PROVIDE, FROM A LIST ESTABLISHED PURSUANT TO SECTION 2509-A,
    22  SUCH TECHNICAL ADVISORS AS MAY BE NECESSARY TO ASSIST THE TEAM
    23  IN IMPLEMENTING THE ACTION PLAN.
    24     (G)  SECOND REVIEW.--NO LATER THAN THREE YEARS AFTER RECEIPT
    25  OF A REPORT INDICATING THE DISTRICT IS NOT IN COMPLIANCE WITH
    26  THE BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS, OR EARLIER
    27  UPON REQUEST OF THE SCHOOL BOARD, THE DEPARTMENT SHALL CONDUCT A
    28  SECOND REVIEW TO DETERMINE IF THE DISTRICT IS NOW IN COMPLIANCE.
    29  IF THIS SECOND REPORT INDICATES THAT THE DISTRICT IS NOW IN
    30  COMPLIANCE, IT SHALL BE CERTIFIED AS A KEYSTONE DISTRICT
    20030H0113B2814                 - 144 -    

     1  PURSUANT TO SECTION 2507-A AND SHALL FALL UNDER ALL PROVISIONS
     2  OF THAT SECTION WITH THE NEXT REVIEW OF THE DISTRICT TO TAKE
     3  PLACE SIX YEARS FROM THE DATE OF CERTIFICATION.
     4  SECTION 2509-A.  DUTIES OF DEPARTMENT.
     5     (A)  LIST OF EXPERTS.--IN ORDER TO ASSIST THOSE DISTRICTS
     6  THAT DO NOT INITIALLY MEET THE BEST FINANCIAL MANAGEMENT
     7  PRACTICES STANDARDS, THE DEPARTMENT SHALL ESTABLISH A LIST OF
     8  EXPERTS WHO POSSESS KNOWLEDGE AND EXPERIENCE IN SUCH AREAS AS
     9  SCHOOL OR BUSINESS ADMINISTRATION, PUPIL TRANSPORTATION, FOOD
    10  SERVICES MANAGEMENT, BUDGET DEVELOPMENT, FISCAL MANAGEMENT,
    11  HUMAN RESOURCES MANAGEMENT, EDUCATIONAL TECHNOLOGY AND LABOR
    12  RELATIONS.
    13     (B)  TECHNICAL ADVISORS.--UPON REQUEST FROM A SCHOOL BOARD,
    14  THE DEPARTMENT SHALL SEND INTO THE DISTRICT TECHNICAL ADVISORS,
    15  CHOSEN FROM THE LIST ESTABLISHED IN SUBSECTION (A) WITH
    16  EXPERTISE IN THOSE AREAS IDENTIFIED IN THE REPORT AS NOT MEETING
    17  BEST FINANCIAL MANAGEMENT PRACTICES STANDARDS, TO WORK WITH THE
    18  TEAM IN IMPLEMENTING THE DISTRICT'S ACTION PLAN.
    19  SECTION 2510-A.  REVOCATION OF CERTIFICATION.
    20     (A)  GENERAL RULE.--THE SECRETARY MAY REVOKE THE KEYSTONE
    21  DISTRICT CERTIFICATION IF AT ANY TIME IT DETERMINES THAT A
    22  DISTRICT IS NO LONGER COMPLYING WITH THE COMMONWEALTH'S BEST
    23  FINANCIAL MANAGEMENT PRACTICES STANDARDS.
    24     (B)  IMMEDIATE REVOCATION.--ANY DISTRICT CERTIFIED AS A
    25  KEYSTONE DISTRICT WHICH, BEFORE ITS NEXT SCHEDULED REVIEW, IS
    26  DEEMED TO BE DISTRESSED BY THE SECRETARY UNDER SECTION 691 OR IS
    27  PLACED ON THE EDUCATION EMPOWERMENT LIST PROVIDED PURSUANT TO
    28  SECTION 1703-B SHALL IMMEDIATELY HAVE ITS CERTIFICATION REVOKED.
    29  SECTION 2511-A.  COST SAVINGS.
    30     COST SAVINGS RESULTING FROM IMPLEMENTATION OF THE BEST
    20030H0113B2814                 - 145 -    

     1  FINANCIAL PRACTICES MUST BE SPENT AT THE SCHOOL AND CLASSROOM
     2  LEVELS FOR TEACHER PROFESSIONAL DEVELOPMENT, IMPROVING CLASSROOM
     3  FACILITIES, STUDENT SUPPLIES, TEXTBOOKS, CLASSROOM TECHNOLOGY,
     4  SCHOOL SAFETY OR ANY OTHER INSTRUCTIONAL ACTIVITY DIRECTLY
     5  AFFECTING STUDENT PERFORMANCE AND THE LEARNING ENVIRONMENT.
     6     SECTION 37.  SECTION 2603-B(D) OF THE ACT, AMENDED OR ADDED
     7  MARCH 30, 1988 (P.L.321, NO.43) AND JUNE 29, 2002 (P.L.524,
     8  NO.88), IS AMENDED TO READ:
     9     SECTION 2603-B.  POWERS AND DUTIES OF THE BOARD.--* * *
    10     (D)  THE BOARD SHALL ALSO HAVE THE AUTHORITY AND DUTY TO:
    11     (1)  APPROVE OR DISAPPROVE AN APPLICATION FOR THE CREATION OF
    12  A NEW SCHOOL DISTRICT, OR CHANGE IN THE BOUNDARIES OF AN
    13  EXISTING SCHOOL DISTRICT;
    14     (2)  ESTABLISH, WHENEVER DEEMED ADVISABLE, COMMITTEES OF
    15  PROFESSIONAL AND TECHNICAL ADVISORS TO ASSIST THE COUNCILS IN
    16  PERFORMING RESEARCH STUDIES UNDERTAKEN BY THEM;
    17     (3)  MANAGE AND HAVE CUSTODY OF THE STATE SCHOOL FUND;
    18     (4)  (I)  APPLY FOR, RECEIVE AND ADMINISTER, SUBJECT TO ANY
    19  APPLICABLE REGULATIONS OR LAWS OF THE FEDERAL GOVERNMENT OR ANY
    20  AGENCY THEREOF, ANY FEDERAL GRANTS, APPROPRIATIONS, ALLOCATIONS
    21  AND PROGRAMS FOR THE DEVELOPMENT OF ACADEMIC FACILITIES ON
    22  BEHALF OF THE COMMONWEALTH, ANY OF ITS SCHOOL DISTRICTS OR ANY
    23  INSTITUTION OF HIGHER EDUCATION, PUBLIC OR PRIVATE, WITHIN THIS
    24  COMMONWEALTH;
    25     (II)  SUBJECT TO CRITERIA DEVELOPED BY THE SECRETARY OF
    26  EDUCATION AND SUBJECT TO ANY APPLICABLE REGULATIONS OR LAWS OF
    27  THE FEDERAL GOVERNMENT OR ANY AGENCY THEREOF, TO DEVELOP, ALTER,
    28  AMEND AND SUBMIT TO THE FEDERAL GOVERNMENT STATE PLANS FOR
    29  PARTICIPATION IN FEDERAL GRANTS, APPROPRIATIONS, ALLOCATIONS AND
    30  PROGRAMS FOR THE DEVELOPMENT OF ACADEMIC FACILITIES AND TO MAKE
    20030H0113B2814                 - 146 -    

     1  REGULATIONS, CRITERIA, METHODS, FORMS, PROCEDURES AND TO DO ALL
     2  OTHER THINGS WHICH MAY BE NECESSARY TO MAKE POSSIBLE THE
     3  PARTICIPATION OF THE COMMONWEALTH IN SUCH FEDERAL GRANTS,
     4  APPROPRIATIONS, ALLOCATIONS AND PROGRAMS FOR THE DEVELOPMENT OF
     5  ACADEMIC FACILITIES;
     6     (III)  HOLD HEARINGS, ISSUE SUBPOENAS AND RENDER DECISIONS AS
     7  TO THE PRIORITY ASSIGNED TO ANY PROJECT, OR AS TO ANY OTHER
     8  MATTER OR DETERMINATION AFFECTING ANY APPLICANT FOR FEDERAL
     9  GRANTS, APPROPRIATIONS, ALLOCATIONS AND PROGRAMS FOR THE
    10  DEVELOPMENT OF ACADEMIC FACILITIES;
    11     (IV)  ADOPT RULES OR PROCEDURES AND PRESCRIBE REGULATIONS FOR
    12  THE SUBMISSION TO IT OF ALL MATTERS WITHIN ITS JURISDICTION; AND
    13     (V)  SUBMIT, ANNUALLY, TO THE GOVERNOR, ON OR BEFORE THE
    14  FIRST MONDAY OF DECEMBER, A REPORT OF ITS PROCEEDINGS DURING
    15  THAT YEAR, TOGETHER WITH SUCH RECOMMENDATIONS AS THE BOARD SHALL
    16  DEEM NECESSARY;
    17     (5)  ADOPT POLICIES UNDER WHICH THE SECRETARY OF EDUCATION
    18  SHALL APPROVE OR DISAPPROVE ANY ACTION OF A STATE-OWNED
    19  UNIVERSITY, COMMUNITY COLLEGE OR STATE-RELATED OR STATE-AIDED
    20  COLLEGE OR UNIVERSITY IN ESTABLISHING ADDITIONAL BRANCHES OR
    21  CAMPUSES, OR IN DISCONTINUING BRANCHES OR CAMPUSES;
    22     (6)  ADOPT POLICIES UNDER WHICH THE SECRETARY OF EDUCATION
    23  SHALL APPROVE OR DISAPPROVE ANY ACTION OF A STATE-OWNED
    24  UNIVERSITY, COMMUNITY COLLEGE OR STATE-RELATED OR STATE-AIDED
    25  COLLEGE OR UNIVERSITY IN ESTABLISHING NEW PROFESSIONAL SCHOOLS
    26  OR UPPER DIVISION PROGRAMS BY TWO (2) YEAR INSTITUTIONS;
    27     (7)  ADOPT POLICIES UNDER WHICH THE SECRETARY OF EDUCATION
    28  SHALL APPROVE OR DISAPPROVE APPLICATIONS BY TWO (2) YEAR
    29  INSTITUTIONS TO BECOME FOUR (4) YEAR INSTITUTIONS;
    30     (8)  ADOPT POLICIES UNDER WHICH THE SECRETARY OF EDUCATION
    20030H0113B2814                 - 147 -    

     1  SHALL APPROVE OR DISAPPROVE THE REQUEST OF ANY PRIVATE
     2  INSTITUTION OF HIGHER EDUCATION FOR ADMISSION TO STATE-RELATED
     3  OR STATE-AIDED STATUS, OR FOR ELIGIBILITY FOR OTHER STATE
     4  FINANCIAL SUPPORT; AND
     5     (9)  REQUIRE THE SUBMISSION OF LONG-RANGE PLANS FROM ALL
     6  PUBLIC AND PRIVATE INSTITUTIONS OF HIGHER EDUCATION AT THE TIMES
     7  AND IN THE FORM REQUESTED BY THE BOARD. SUCH DOCUMENTS SHALL BE
     8  REVIEWED BY THE COUNCIL OF HIGHER EDUCATION AND THE BOARD IN THE
     9  DEVELOPMENT OF A MASTER PLAN FOR HIGHER EDUCATION AS PROVIDED IN
    10  SUBSECTION (H) AND SECTION 2604-B(C)(1).
    11     (10)  (I)  APPROVE OR DISAPPROVE STANDARDS PROPOSED BY THE
    12  DEPARTMENT IN ORDER TO COMPLY WITH THE PROVISIONS OF THE NO
    13  CHILD LEFT BEHIND ACT OF 2001 [(PUBLIC LAW 107-110, 115 STAT.
    14  1425)] TO MAINTAIN THE ELIGIBILITY OF THIS COMMONWEALTH TO
    15  RECEIVE FEDERAL FUNDING FOR EDUCATION PROGRAMS. THE BOARD SHALL
    16  APPROVE OR DISAPPROVE THE STANDARDS WITHIN 30 DAYS OF SUBMISSION
    17  TO THE BOARD'S OFFICE OR AT ITS NEXT SCHEDULED MEETING,
    18  WHICHEVER IS SOONER. FAILURE OF THE BOARD TO APPROVE OR
    19  DISAPPROVE THE STANDARDS WITHIN THE TIME ESTABLISHED UNDER THIS
    20  SECTION SHALL BE DEEMED AN APPROVAL OF THE STANDARDS.
    21     (II)  STANDARDS PROMULGATED UNDER THIS SECTION SHALL BE
    22  DEPOSITED WITH THE PENNSYLVANIA BULLETIN FOR PUBLICATION.
    23     (III)  THESE STANDARDS SHALL BE EXEMPT FROM:
    24     (A)  SECTIONS 201 THROUGH 205 OF THE ACT OF JULY 31, 1968
    25  (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS
    26  LAW.
    27     (B)  SECTION 204(B) OF THE ACT OF OCTOBER 15, 1980 (P.L.950,
    28  NO.164), KNOWN AS THE "COMMONWEALTH ATTORNEYS ACT."
    29     (C)  THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE
    30  "REGULATORY REVIEW ACT."
    20030H0113B2814                 - 148 -    

     1     (D)  THIS SUBCLAUSE SHALL EXPIRE [JUNE 30, 2003.] JUNE 30,
     2  2004.
     3     * * *
     4     SECTION 38.  THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
     5                           ARTICLE XXVI-I
     6                   TEACHER RECRUITMENT ASSISTANCE
     7  SECTION 2601-I.  DEFINITIONS.
     8     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
     9  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    10  CONTEXT CLEARLY INDICATES OTHERWISE:
    11     "AGENCY."  THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE
    12  AGENCY.
    13     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    14  COMMONWEALTH.
    15     "DESIGNATED COMMONWEALTH RURAL OR ACADEMIC IMPROVEMENT SCHOOL
    16  DISTRICT."  AN ELIGIBLE RURAL OR ACADEMIC IMPROVEMENT PUBLIC
    17  SCHOOL DISTRICT THAT THE SECRETARY OF EDUCATION HAS CERTIFIED AS
    18  HAVING A NEED FOR TEACHER LOAN FORGIVENESS ASSISTANCE BECAUSE OF
    19  DIFFICULTY IN ATTRACTING QUALIFIED TEACHERS.
    20     "ELIGIBLE ACADEMIC SCHOOL IMPROVEMENT PUBLIC SCHOOL
    21  DISTRICT."  A PUBLIC SCHOOL DISTRICT THAT:
    22         (1)  HAS TWO OR MORE SCHOOLS IDENTIFIED FOR IMPROVEMENT
    23     OR CORRECTIVE ACTION UNDER SECTION 1116(C)(3) OR (10) OF THE
    24     NO CHILD LEFT BEHIND ACT OF 2001 (PUBLIC LAW 107-110, 20
    25     U.S.C. § 6316);
    26         (2)  HAS BEEN CERTIFIED AS DISTRESSED UNDER SECTION 691;
    27         (3)  HAS BEEN CERTIFIED AS AN EDUCATION EMPOWERMENT
    28     DISTRICT UNDER SECTION 1705-B OR 1707-B; OR
    29         (4)  HAS BEEN PLACED ON AN EDUCATION EMPOWERMENT LIST
    30     UNDER SECTION 1703-B.
    20030H0113B2814                 - 149 -    

     1     "ELIGIBLE RURAL PUBLIC SCHOOL DISTRICT."  A PUBLIC SCHOOL
     2  DISTRICT THAT HAS A POPULATION OF LESS THAN 300 PER SQUARE MILE
     3  AND EITHER:
     4         (1)  MORE THAN 8% OF THE PUPILS IN AVERAGE DAILY
     5     MEMBERSHIP ARE LOW-INCOME PUPILS AS DEFINED IN SECTION
     6     2502.11; OR
     7         (2)  THE MARKET VALUE/INCOME AID RATIO AS DEFINED IN
     8     SECTION 2501 IS GREATER THAN SEVEN-TENTHS.
     9     "FUND."  THE TEACHER RECRUITMENT ASSISTANCE FUND ESTABLISHED
    10  UNDER SECTION 2602-I.
    11     "QUALIFIED APPLICANT."  A PERSON WHO MEETS ALL OF THE
    12  FOLLOWING CRITERIA:
    13         (1)  IS CERTIFIED BY THE DEPARTMENT OF EDUCATION TO
    14     TEACH.
    15         (2)  IS IN THE FIRST YEAR OF FULL-TIME TEACHING.
    16         (3)  IS TEACHING IN A DESIGNATED COMMONWEALTH RURAL OR
    17     ACADEMIC IMPROVEMENT PUBLIC SCHOOL DISTRICT.
    18         (4)  HAS BORROWED THROUGH THE AGENCY-ADMINISTERED
    19     GUARANTEED STUDENT LOAN PROGRAMS.
    20     "SECRETARY."  THE SECRETARY OF EDUCATION OF THE COMMONWEALTH.
    21  SECTION 2602-I.  TEACHER RECRUITMENT ASSISTANCE FUND.
    22     (A)  ESTABLISHMENT.--IN ADDITION TO ANY OTHER POWERS AND
    23  DUTIES UNDER THE ACT OF AUGUST 7, 1963 (P.L.549, NO.290),
    24  REFERRED TO AS THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE
    25  AGENCY ACT, THE TEACHER RECRUITMENT ASSISTANCE FUND IS
    26  ESTABLISHED IN THE STATE TREASURY.
    27     (B)  PURPOSE.--THE FUND SHALL PROVIDE ASSISTANCE TO
    28  DESIGNATED COMMONWEALTH RURAL OR ACADEMIC IMPROVEMENT PUBLIC
    29  SCHOOL DISTRICTS IN RECRUITING TEACHERS THROUGH A PROGRAM OF
    30  TEACHER LOAN FORGIVENESS AS PROVIDED FOR IN THIS ARTICLE.
    20030H0113B2814                 - 150 -    

     1     (C)  ADMINISTRATION.--THE AGENCY SHALL ADMINISTER THE FUND
     2  AND ADOPT SUCH REGULATIONS, POLICIES, PROCEDURES AND FORMS AS
     3  ARE NECESSARY AND NOT INCONSISTENT WITH THE PROVISIONS OF THIS
     4  ARTICLE.
     5  SECTION 2603-I.  TEACHER RECRUITMENT ASSISTANCE.
     6     (A)  GENERAL RULE.--A QUALIFIED APPLICANT WHO IS SELECTED IN
     7  ACCORDANCE WITH THIS ARTICLE SHALL BE ELIGIBLE FOR AN AWARD BY
     8  THE AGENCY FROM THE FUND OF A PORTION OF THE DEBT INCURRED BY
     9  THE APPLICANT THROUGH THE AGENCY-ADMINISTERED GUARANTEED STUDENT
    10  LOAN PROGRAMS FOR THE EDUCATION NECESSARY TO BE CERTIFIED TO
    11  TEACH IN THIS COMMONWEALTH.
    12     (B)  FORGIVENESS OF LOAN.--FOR EACH ACADEMIC YEAR THAT THE
    13  ELIGIBLE APPLICANT IS A FULL-TIME TEACHER IN A DESIGNATED
    14  COMMONWEALTH RURAL OR ACADEMIC IMPROVEMENT PUBLIC SCHOOL
    15  DISTRICT, THE AGENCY MAY FORGIVE A PROPORTIONAL PART OF THE
    16  APPLICANT'S LOAN OVER FOUR YEARS OF FULL-TIME TEACHING. NO MORE
    17  THAN $2,500 SHALL BE FORGIVEN IN ANY YEAR AND NO MORE THAN
    18  $10,000 SHALL BE FORGIVEN FOR ANY ELIGIBLE APPLICANT.
    19     (C)  PAYMENTS.--SHALL BE MADE IN ACCORDANCE WITH PROCEDURES
    20  ESTABLISHED BY THE AGENCY.
    21  SECTION 2604-I.  LOAN FORGIVENESS AWARDS.
    22     RECIPIENTS OF TEACHER RECRUITMENT ASSISTANCE AWARDS SHALL BE
    23  THOSE TEACHERS WHO ARE CERTIFIED BY THE DEPARTMENT AND WHO HAVE
    24  RECEIVED A SATISFACTORY RATING BY THE DISTRICT FOR THE ACADEMIC
    25  YEAR. EACH TEACHER SHALL BE REQUIRED TO SUBMIT SUCH
    26  DOCUMENTATION OF CONTINUED ELIGIBILITY AS THE AGENCY MAY
    27  REQUIRE.
    28  SECTION 2605-I.  FUNDING.
    29     (A)  GENERAL RULE.--LOAN FORGIVENESS AWARDS MAY BE MADE TO
    30  THE EXTENT THAT FUNDS ARE APPROPRIATED BY THE GENERAL ASSEMBLY
    20030H0113B2814                 - 151 -    

     1  TO THE FUND.
     2     (B)  OTHER SOURCES.--IN ADDITION TO APPROPRIATIONS FROM THE
     3  GENERAL ASSEMBLY, THE FUND MAY ACCEPT DONATIONS AND
     4  CONTRIBUTIONS FROM ALL PUBLIC AND PRIVATE SOURCES, INCLUDING THE
     5  FEDERAL GOVERNMENT.
     6     (C)  INSUFFICIENT FUNDING.--IF IN ANY FISCAL YEAR, THE SUM OF
     7  THE AMOUNT OF FUNDS APPROPRIATED TO THE FUND BY THE GENERAL
     8  ASSEMBLY, AMOUNTS CONTRIBUTED TO THE FUND FROM OTHER SOURCES AND
     9  THE AVAILABLE FUND BALANCE ARE INSUFFICIENT TO PAY THE TOTAL
    10  AMOUNT OF LOAN FORGIVENESS AWARDS DUE TO BE PAID IN THAT FISCAL
    11  YEAR, THEN SUCH PAYMENTS SHALL BE MADE ON A PRO RATA BASIS.
    12     (D)  EXHAUSTION OF FUNDING.--IF IN ANY FISCAL YEAR THE FUND
    13  BALANCE IS EXHAUSTED BECAUSE PRO RATA PAYMENTS HAVE BEEN MADE
    14  UNDER SUBSECTION (C), AND IN THE NEXT SUCCEEDING FISCAL YEAR THE
    15  GENERAL ASSEMBLY DOES NOT APPROPRIATE FUNDS FOR TEACHER
    16  RECRUITMENT ASSISTANCE, THEN THE ELIGIBILITY OF QUALIFIED
    17  APPLICANTS FOR LOAN FORGIVENESS AWARDS UNDER THIS ARTICLE SHALL
    18  BE EXTINGUISHED.
    19     SECTION 39.  SECTION 614-A(F)(6) AND (8) OF THE ACT SHALL
    20  APPLY TO SCHOOL DISTRICTS IN WHICH A REFERENDUM QUESTION UNDER
    21  53 PA.C.S. § 8703 IS APPROVED AND IMPLEMENTED.
    22     SECTION 40.  NO SCHOOL DISTRICT WHICH HAS NOT ALREADY MADE AN
    23  ELECTION TO ADOPT THE PROVISIONS OF 53 PA.C.S. CH. 87 MAY MAKE
    24  AN ELECTION TO DO SO AFTER THE EFFECTIVE DATE OF THIS SECTION.
    25     SECTION 41.  THE FOLLOWING SHALL APPLY:
    26         (1)  NO LATER THAN JANUARY 1, 2004, THE DEPARTMENT OF
    27     EDUCATION SHALL DO ALL OF THE FOLLOWING:
    28             (I)  IDENTIFY THOSE SCHOOL DISTRICTS WHICH BORROWED
    29         MONEY DIRECTLY AS A RESULT OF ANY DELAYED PAYMENTS FOR
    30         ALLOCATION DURING THE 2003-2004 SCHOOL YEAR FOR BASIC
    20030H0113B2814                 - 152 -    

     1         EDUCATION FUNDING, AS REQUIRED BY SECTION 2517 OF THE ACT
     2         OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC
     3         SCHOOL CODE OF 1949.
     4             (II)  ASCERTAIN FOR EACH AFFECTED DISTRICT THE DATE
     5         OF INCEPTION OF EACH LOAN TAKEN AND THE DATE ON WHICH
     6         EACH LOAN WAS REPAID.
     7             (III)  DETERMINE THE DOLLAR AMOUNT OF INTEREST PAID
     8         BY EACH AFFECTED DISTRICT ON EACH LOAN FROM THE PERIOD OF
     9         INCEPTION OF THE LOAN THROUGH THE DATE OF REPAYMENT.
    10             (IV)  UTILIZING THE DATA COLLECTED PURSUANT TO
    11         SUBPARAGRAPHS (I), (II) AND (III), DETERMINE THE TOTAL
    12         STATEWIDE COST OF THE INTEREST PAYMENTS.
    13         (2)  THE SECRETARY OF THE BUDGET SHALL, NO LATER THAN
    14     JANUARY 1, 2004, VERIFY THE AMOUNT OF INTEREST ACCRUED BY THE
    15     COMMONWEALTH ON FUNDS NOT ALLOCATED TO SCHOOL DISTRICTS AS A
    16     RESULT OF THE DELAYED PAYMENT OF BASIC EDUCATION FUNDING FOR
    17     THE 2003-2004 SCHOOL YEAR AS PROVIDED FOR IN SECTION 2517 OF
    18     THE PUBLIC SCHOOL CODE OF 1949.
    19         (3)  THE INFORMATION COLLECTED PURSUANT TO PARAGRAPHS (1)
    20     AND (2) SHALL BE USED BY THE GOVERNOR TO SUBMIT A PROPOSAL TO
    21     THE GENERAL ASSEMBLY NO LATER THAN FEBRUARY 1, 2004, TO
    22     PROVIDE FOR REIMBURSEMENT TO SCHOOL DISTRICTS FOR PAYMENT OF
    23     INTEREST ON BORROWING NECESSITATED DIRECTLY AS A RESULT OF
    24     ANY DELAYED PAYMENTS FOR ALLOCATION OF BASIC EDUCATION
    25     FUNDING DURING THE 2003-2004 SCHOOL YEAR.
    26     SECTION 42.  THE FOLLOWING AMOUNTS ARE HEREBY APPROPRIATED
    27  FROM THE GENERAL FUND TO THE DEPARTMENT OF EDUCATION FOR THE
    28  FISCAL PERIOD JULY 1, 2003, TO JUNE 30, 2004, AS FOLLOWS:
    29         (1)  THE SUM OF $74,135,000 IS HEREBY APPROPRIATED FOR
    30     SERVICES TO NONPUBLIC SCHOOLS AS PROVIDED UNDER SECTION
    20030H0113B2814                 - 153 -    

     1     922.1-A OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN
     2     AS THE PUBLIC SCHOOL CODE OF 1949, PROVIDED THAT ANY AMOUNTS
     3     EXPENDED BY THE DEPARTMENT OF EDUCATION PURSUANT TO THE
     4     FORMER STATE APPROPRIATION IN THE AMOUNT OF $71,976,000 FOR
     5     SERVICES TO NONPUBLIC SCHOOLS UNDER SECTION 212 OF THE
     6     GENERAL APPROPRIATION ACT OF 2003, SHALL BE DEDUCTED FROM THE
     7     SUM APPROPRIATED IN THIS PARAGRAPH.
     8         (2)  THE SUM OF $22,691,000 IS HEREBY APPROPRIATED FOR
     9     TEXTBOOKS, INSTRUCTIONAL MATERIAL AND INSTRUCTIONAL EQUIPMENT
    10     FOR NONPUBLIC SCHOOLS AS PROVIDED FOR UNDER SECTION 923-A OF
    11     THE PUBLIC SCHOOL CODE OF 1949, PROVIDED THAT ANY AMOUNTS
    12     EXPENDED BY THE DEPARTMENT OF EDUCATION PURSUANT TO THE
    13     FORMER STATE APPROPRIATION IN THE AMOUNT OF $22,030,000 FOR
    14     TEXTBOOKS, INSTRUCTIONAL MATERIAL AND INSTRUCTIONAL EQUIPMENT
    15     FOR NONPUBLIC SCHOOLS UNDER SECTION 212 OF THE GENERAL
    16     APPROPRIATION ACT OF 2003 SHALL BE DEDUCTED FROM THE SUM
    17     APPROPRIATED IN THIS PARAGRAPH.
    18         (3)  THE SUM OF $34,000,000 IS HEREBY APPROPRIATED FOR
    19     THE EDUCATION SUPPORT SERVICES PROGRAM AND EDUCATIONAL
    20     ASSISTANCE PROGRAM ESTABLISHED UNDER ARTICLE XV-C OF THE
    21     PUBLIC SCHOOL CODE OF 1949. OF THIS AMOUNT $9,000,000 SHALL
    22     BE USED TO PROVIDE GRANTS UNDER THE EDUCATION SUPPORT
    23     SERVICES PROGRAM AND $25,000,000 SHALL BE USED FOR THE
    24     EDUCATIONAL ASSISTANCE PROGRAM.
    25         (4)  THE SUM OF $15,000,000 IS HEREBY APPROPRIATED FOR
    26     THE HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM ESTABLISHED
    27     UNDER ARTICLE XV-D OF THE PUBLIC SCHOOL CODE OF 1949.
    28         (5)  THE SUM OF $25,380,000 IS HEREBY APPROPRIATED FOR
    29     SCHOOL IMPROVEMENT GRANTS AS PROVIDED FOR UNDER SECTION 1709-
    30     B OF THE PUBLIC SCHOOL CODE OF 1949. FUNDS APPROPRIATED UNDER
    20030H0113B2814                 - 154 -    

     1     THIS PARAGRAPH THAT ARE NOT ALLOCATED DURING THE 2003-2004
     2     FISCAL YEAR SHALL BE CONSIDERED UNDISTRIBUTED FUNDS NOT
     3     EXPENDED, ENCUMBERED OR COMMITTED FOR DISTRIBUTION UNDER
     4     SECTIONS 1705-B AND 2502.30 OF THE PUBLIC SCHOOL CODE OF
     5     1949.
     6         (6)  THE SUM OF $56,762,000 IS HEREBY APPROPRIATED FOR
     7     PAYMENTS ON ACCOUNT OF VOCATIONAL EDUCATION AS PROVIDED FOR
     8     UNDER SECTION 2502.8 OF THE PUBLIC SCHOOL CODE OF 1949,
     9     PROVIDED THAT ANY AMOUNTS EXPENDED BY THE DEPARTMENT OF
    10     EDUCATION PURSUANT TO THE FORMER STATE APPROPRIATION IN THE
    11     AMOUNT OF $55,378,000 FOR VOCATIONAL EDUCATION UNDER SECTION
    12     212 OF THE ACT OF MARCH 20, 2003 (P.L.   , NO.1A), KNOWN AS
    13     THE GENERAL APPROPRIATION ACT OF 2003, SHALL BE DEDUCTED FROM
    14     THE SUM APPROPRIATED IN THIS PARAGRAPH.
    15         (7)  THE SUM OF $4,209,152,000 IS HEREBY APPROPRIATED FOR
    16     BASIC EDUCATION FUNDING TO SCHOOL DISTRICTS, PROVIDED THAT
    17     THE SECRETARY OF EDUCATION, WITH THE APPROVAL OF THE
    18     GOVERNOR, MAY MAKE PAYMENTS FROM THIS APPROPRIATION IN
    19     ADVANCE OF THE DUE DATE PRESCRIBED BY LAW TO SCHOOL DISTRICTS
    20     WHICH ARE FINANCIALLY HANDICAPPED WHENEVER THE SECRETARY OF
    21     EDUCATION SHALL DEEM IT NECESSARY TO MAKE SUCH ADVANCE
    22     PAYMENTS TO ENABLE THE SCHOOL DISTRICTS TO KEEP THEIR SCHOOLS
    23     OPEN.
    24         (8)  THE SUM OF $904,606,000 IS HEREBY APPROPRIATED FOR
    25     PAYMENTS ON ACCOUNT OF SPECIAL EDUCATION OF EXCEPTIONAL
    26     CHILDREN, PROVIDED THAT THIS AMOUNT INCLUDES $563,000 FOR
    27     COMMUNITY SUPPORT SERVICES WHICH IS NOT TO BE INCLUDED IN THE
    28     BASE CALCULATIONS OF THE SPECIAL EDUCATION PROGRAM
    29     COMPONENTS, AND PROVIDED FURTHER THAT ANY AMOUNTS EXPENDED BY
    30     THE DEPARTMENT OF EDUCATION PURSUANT TO THE FORMER STATE
    20030H0113B2814                 - 155 -    

     1     APPROPRIATION IN THE AMOUNT OF $874,319,000 FOR PAYMENTS ON
     2     ACCOUNT OF SPECIAL EDUCATION OF EXCEPTIONAL CHILDREN UNDER
     3     SECTION 212 OF THE GENERAL APPROPRIATION ACT OF 2003 SHALL BE
     4     DEDUCTED FROM THE SUM APPROPRIATED IN THIS PARAGRAPH.
     5         (9)  THE SUM OF $26,749,000 IS HEREBY APPROPRIATED FOR
     6     PAYMENTS TO PENNSYLVANIA CHARTER SCHOOLS FOR THE DEAF AND
     7     BLIND, PROVIDED THAT ANY AMOUNTS EXPENDED BY THE DEPARTMENT
     8     OF EDUCATION PURSUANT TO THE FORMER STATE APPROPRIATION IN
     9     THE AMOUNT OF $25,749,000 FOR PAYMENTS TO PENNSYLVANIA
    10     CHARTER SCHOOLS FOR THE DEAF AND BLIND UNDER SECTION 212 OF
    11     THE GENERAL APPROPRIATION ACT OF 2003, SHALL BE DEDUCTED FROM
    12     THE SUM APPROPRIATED IN THIS PARAGRAPH.
    13         (10)  THE SUM OF $67,450,000 IS HEREBY APPROPRIATED FOR
    14     SPECIAL EDUCATION - APPROVED PRIVATE SCHOOLS, PROVIDED THAT
    15     ANY AMOUNTS EXPENDED BY THE DEPARTMENT OF EDUCATION PURSUANT
    16     TO THE FORMER STATE APPROPRIATION IN THE AMOUNT OF
    17     $63,450,000 FOR SPECIAL EDUCATION - APPROVED PRIVATE SCHOOLS
    18     UNDER SECTION 212 OF THE GENERAL APPROPRIATION ACT OF 2003,
    19     SHALL BE DEDUCTED FROM THE SUM APPROPRIATED IN THIS
    20     PARAGRAPH.
    21         (11)  THE SUM OF $200,000,000 IS HEREBY APPROPRIATED FOR
    22     PENNSYLVANIA ACCOUNTABILITY GRANTS UNDER SECTION 2599.2 OF
    23     THE PUBLIC SCHOOL CODE OF 1949.
    24         (12)  THE SUM OF $2,000,000 IS HEREBY APPROPRIATED FOR
    25     TRANSFER TO THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE
    26     AGENCY FOR THE TEACHER RECRUITMENT ASSISTANCE FUND AS
    27     PROVIDED FOR UNDER ARTICLE XXVI-I OF THE PUBLIC SCHOOL CODE
    28     OF 1949.
    29         (13)  THE SUM OF $25,000,000 IS HEREBY APPROPRIATED FOR
    30     PAYMENTS TO ANY SCHOOL DISTRICT OF THE FIRST CLASS WHICH HAS
    20030H0113B2814                 - 156 -    

     1     BEEN DECLARED DISTRESSED UNDER SECTION 691(C) OF THE PUBLIC
     2     SCHOOL CODE OF 1949, PROVIDED THAT SUCH SCHOOL DISTRICT
     3     SUBMITS A QUARTERLY ITEMIZATION OF ALL FEDERAL, STATE AND
     4     LOCAL FUNDS DISTRIBUTED TO EACH SCHOOL IN THE SCHOOL
     5     DISTRICT, INCLUDING SCHOOLS GOVERNED BY AGREEMENTS CURRENTLY
     6     IN EFFECT UNDER SECTION 696(I)(2) OF THE PUBLIC SCHOOL CODE
     7     OF 1949 AND SCHOOLS DESIGNATED AS PARTNERSHIP SCHOOLS UNDER
     8     THE SCHOOL REFORM COMMISSION RESOLUTION NUMBER 10 OF APRIL
     9     17, 2002, TO THE DEPARTMENT OF EDUCATION AND TO THE CHAIRMAN
    10     AND MINORITY CHAIRMAN OF THE EDUCATION COMMITTEE OF THE
    11     SENATE AND TO THE CHAIRMAN AND MINORITY CHAIRMAN OF THE
    12     EDUCATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES. IF THE
    13     DEPARTMENT OF EDUCATION DETERMINES THAT THE REPORT IS NOT
    14     BEING SUBMITTED IN ACCORDANCE WITH THE REQUIREMENTS OF THIS
    15     PARAGRAPH, THE DEPARTMENT OF EDUCATION SHALL WITHHOLD FROM
    16     ANY AND ALL PAYMENTS TO WHICH THAT SCHOOL DISTRICT OF THE
    17     FIRST CLASS MAY BE ENTITLED UNDER THE ACT AN AMOUNT EQUAL TO
    18     THE FUNDS RECEIVED FROM THIS APPROPRIATION.
    19         (14)  THE SUM OF $2,000,000 IS HEREBY APPROPRIATED FOR A
    20     SCIENCE EDUCATION PROGRAM DELIVERING SCIENCE CURRICULUM AND
    21     INSTRUCTION, EQUIPMENT AND SUPPLIES TO PARTICIPATING
    22     CLASSROOMS IN THIS COMMONWEALTH THROUGH THE BASIC ED/HIGHER
    23     ED SCIENCE AND TECHNOLOGY PARTNERSHIP.
    24     SECTION 43.  THE FOLLOWING ACTS AND PARTS OF ACTS ARE
    25  REPEALED TO THE EXTENT SPECIFIED:
    26     SECTION 2509.8 OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14),
    27  KNOWN AS THE PUBLIC SCHOOL CODE OF 1949.
    28     AS MUCH AS RELATES TO THE STATE APPROPRIATIONS IN THE AMOUNT
    29  OF $55,378,000 FOR VOCATIONAL EDUCATION AND IN THE AMOUNT OF
    30  $874,319,000 FOR PAYMENTS ON ACCOUNT OF SPECIAL EDUCATION OF
    20030H0113B2814                 - 157 -    

     1  EXCEPTIONAL CHILDREN, IN THE AMOUNT OF $71,976,000 FOR SERVICES
     2  TO NONPUBLIC SCHOOLS AND IN THE AMOUNT OF $22,030,000 FOR
     3  TEXTBOOKS, INSTRUCTIONAL MATERIAL AND INSTRUCTIONAL EQUIPMENT
     4  FOR NONPUBLIC SCHOOLS IN SECTION 212 OF THE ACT OF MARCH 20,
     5  2003 (P.L.   , NO.1A), KNOWN AS THE GENERAL APPROPRIATION ACT OF
     6  2003.
     7     SECTION 44.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
     8         (1)  THE AMENDMENT OF SECTION 672(A) OF THE ACT SHALL
     9     TAKE EFFECT JULY 1, 2004.
    10         (2)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
    11     IMMEDIATELY.













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