PRIOR PRINTER'S NO. 1637                      PRINTER'S NO. 1886

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1318 Session of 1991


        INTRODUCED BY COWELL, HAYES, O'DONNELL, KOSINSKI, HERMAN,
           E. Z. TAYLOR, DALEY, STAIRS, KUKOVICH, FAJT, MARKOSEK,
           SALOOM, VROON, SERAFINI, LANGTRY, COLAIZZO, DEMPSEY,
           CAPPABIANCA, PRESTON, STABACK, SAURMAN, NAHILL, TRELLO,
           MELIO, MURPHY, STISH, TRICH, PESCI, GIGLIOTTI, LAUGHLIN,
           GANNON, MUNDY, TIGUE, COLAFELLA, LESCOVITZ, RUDY, ROEBUCK,
           BATTISTO, ITKIN, COY, CARONE, ROBINSON, DAVIES, ADOLPH,
           CLYMER, PETRARCA, MICOZZIE, COHEN, LINTON AND KASUNIC,
           MAY 15, 1991

        AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 6, 1991

                                     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," further providing for the cost of
     6     tuition and maintenance of certain exceptional children.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Sections 1376 and 1376.1 of the act of March 10,
    10  1949 (P.L.30, No.14), known as the Public School Code of 1949,
    11  amended July 8, 1989 (P.L.253, No.43), are amended to read:
    12     Section 1376.  Cost of Tuition and Maintenance of Certain
    13  Exceptional Children in Approved Institutions.--(a)  When any
    14  child between school entry age and twenty-one (21) years of age
    15  and resident in this Commonwealth, who is blind or deaf, or
    16  [afflicted with] who has cerebral palsy and/or [brain damage]     <--

     1  NEUROLOGICAL IMPAIRMENT and/or muscular dystrophy and/or is       <--
     2  mentally retarded and/or [socially and emotionally disturbed,]
     3  who has a serious emotional disturbance, and/or has
     4  autism/pervasive developmental disorder, and is enrolled, with
     5  the approval of the Department of Education, as a pupil in an
     6  approved private school [for the blind or deaf, or cerebral
     7  palsied and/or brain damaged and/or muscular dystrophied and/or
     8  mentally retarded, and/or socially and emotionally disturbed,]
     9  approved by the Department of Education, in accordance with
    10  standards and regulations promulgated by the State Board of
    11  Education, the school district in which such child is resident
    12  shall pay the greater of either twenty per centum (20%) of the
    13  actual audited cost of tuition and maintenance of such child in
    14  such school, as determined by the Department of Education, or
    15  its "tuition charge per elementary pupil" or its "tuition charge
    16  per high school pupil," and the Commonwealth shall pay, out of
    17  funds appropriated to the department for special education, the
    18  balance due for the costs of such child's tuition and
    19  maintenance, as determined by the department in accordance with
    20  subsection (c). For the school years 1989-1990, 1990-1991 and
    21  1991-1992, the school district payment shall be no greater than
    22  forty percent (40%) of the actual audited costs of tuition and
    23  maintenance of such child in such school. The department will
    24  credit the district of residence with average daily membership
    25  for such child consistent with the rules of procedure developed
    26  in accordance with section 2501. If the residence of such child
    27  in a particular school district cannot be determined, the
    28  Commonwealth shall pay, out of moneys appropriated to the
    29  department for special education, the whole cost of tuition and
    30  maintenance of such child[. The Department of Education shall be
    19910H1318B1886                  - 2 -

     1  provided with such financial data from approved private schools
     2  as may be necessary to determine the reasonableness of costs for
     3  tuition and room and board concerning Pennsylvania resident
     4  approved reimbursed students. The Department of Education shall
     5  evaluate such data and shall disallow any cost deemed
     6  unreasonable. Any costs deemed unreasonable by the Department of
     7  Education for disallowance shall be considered an adjudication
     8  within the meaning of Title 2 of the Pa.C.S. (relating to
     9  administrative law and procedure) and regulations promulgated
    10  thereunder.] in accordance with subsection (c).
    11     (b)  When any person less than school entry age or more than
    12  twenty-one (21) years of age and resident in this Commonwealth,
    13  who is blind or deaf, or [afflicted with] has cerebral palsy
    14  and/or has brain damage [BRAIN DAMAGE] HAS NEUROLOGICAL           <--
    15  IMPAIRMENT and/or has muscular dystrophy, or has
    16  autism/pervasive developmental delay, and is enrolled, with the
    17  approval of the Department of Education, as a pupil in an
    18  approved private school [for the blind or deaf, or cerebral
    19  palsied and/or brain damaged and/or muscular dystrophied,]
    20  approved by the Department of Education, the Commonwealth shall
    21  pay to such school, out of moneys appropriated to the department
    22  for special education[, the actual audited cost of tuition and
    23  maintenance of such person, as determined by the Department of
    24  Education, subject to review and approval in accordance with
    25  standards and regulations promulgated by the State Board of
    26  Education, and in addition,] in accordance with subsection (c),
    27  including, in the case of any child less than school entry age,
    28  who is blind, the cost, as determined by the Department of
    29  Education of instructing the parent of such blind child in
    30  caring for such child.
    19910H1318B1886                  - 3 -

     1     [(c)  Each approved private school, prior to the start of the
     2  school year, shall submit to the department such information as
     3  the department may require in order to establish an estimate of
     4  reimbursable costs. Based upon this information, any other data
     5  deemed necessary by the department and in accordance with
     6  department standards, the department shall develop for each
     7  approved private school an estimate of reimbursable costs. Based
     8  upon such estimate, the department shall provide each approved
     9  private school with quarterly payments in advance of department
    10  audit. The department may withhold a portion of such payments
    11  not exceeding five percent (5%) of such payment, pending final
    12  audit. In no event shall either the advance payments or final
    13  reimbursement made by the department following audit exceed the
    14  appropriation available for approved private schools.]
    15     (c)  The procedures for the development of pre-approved
    16  budgets for approved private schools shall be as follows:
    17     (1)  On or before August 30 of the school year previous to
    18  the school year of operation, each approved private school shall
    19  submit to the Department of Education a program plan and budget
    20  which specifies in detail the special education services to be
    21  provided to approved residents of this Commonwealth. These
    22  estimates shall form the preliminary estimate of the approved
    23  private school's line item in the department's budget.
    24     (2)  On or before November 15 of the school year previous to
    25  the school year of operation, each approved private school shall
    26  submit any revisions to their August estimated program plan and
    27  budget.
    28     (3)  By February 1 of the school year previous to the school
    29  year of operation, the department shall review the detailed
    30  program plans and budgets and discuss modifications with each
    19910H1318B1886                  - 4 -

     1  approved school.
     2     (4)  Between February 1 and April 15 of the school year
     3  previous to the school year of operation, the department shall
     4  meet with each approved private school to negotiate a pre-
     5  approved budget for the following school year. These pre-
     6  approved budgets shall form the basis for adjustments to the
     7  approved private school's line item in the General
     8  Appropriations act for the next fiscal year.
     9     (5)  On or before January 31 of the school year of operation,
    10  each approved private school may submit a request for program
    11  plan and/or budget modifications to the department. The
    12  department shall respond in writing to the request for
    13  modification within thirty (30) days of the receipt of such
    14  request. The department may approve, reject or approve in part
    15  the requested modifications.
    16     (6)  Based upon the approved budget, the department shall
    17  provide each approved private school with quarterly payments
    18  during the year of operation of the program. The department may
    19  withhold a portion of such payments not exceeding five per
    20  centum (5%) of such payment pending final audit. Under no
    21  circumstances shall either the advance payments or final
    22  reimbursement made by the department following audit exceed the
    23  appropriation available for approved private schools.
    24     (7)  An independent audit report for the preceding fiscal
    25  year which is consistent with department audit standards shall
    26  be submitted by each approved private school to the department
    27  no later than one hundred twenty (120) days after the close of
    28  the preceding fiscal year. The department shall review each
    29  audit and make a determination of its acceptance. Such
    30  determination shall be communicated in writing to the approved
    19910H1318B1886                  - 5 -

     1  private school within one hundred twenty (120) days of its
     2  receipt; otherwise, the audit shall be deemed to be approved and
     3  accepted. The determination of acceptance shall be considered an
     4  adjudication within the meaning of 2 Pa.C.S. (relating to
     5  administrative law and procedure) and regulations promulgated
     6  thereunder. Final payment to the approved private school shall
     7  be made within ninety (90) days of acceptance of the audit by
     8  the department.
     9     (d)  No private institution receiving payment in accordance
    10  with this section shall impose any charge on the student and/or
    11  parents who are Pennsylvania approved reimbursable residents for
    12  a program of individualized instruction and maintenance
    13  appropriate to the child's needs; except that charges for
    14  services not part of such program may be made if agreed to by
    15  the parents.
    16     Section 1376.1.  Actual Cost of Tuition and Maintenance of
    17  Certain Exceptional Children in the Four Chartered Schools for
    18  Education of the Deaf and the Blind.--(a)  The following term,
    19  whenever used or referred to in this section, shall have the
    20  following meaning. "Chartered school" shall mean any of the four
    21  (4) chartered schools for the education of the deaf or the
    22  blind: the Pennsylvania School for the Deaf; the Overbrook
    23  School for the Blind; the Western Pennsylvania School for Blind
    24  Children; and the Western Pennsylvania School for the Deaf.
    25     (b)  When any child of school age resident in this
    26  Commonwealth, who is blind or deaf, is enrolled with the
    27  approval of the Department of Education as a pupil in any of the
    28  four (4) chartered schools in accordance with standards and
    29  regulations promulgated by the State Board of Education, the
    30  school district in which such child is resident shall pay the
    19910H1318B1886                  - 6 -

     1  greater of either twenty percent (20%) of the actual cost of
     2  tuition and maintenance of such child in such institution, as
     3  determined by the Department of Education in accordance with
     4  subsection (e); or its "tuition charge per elementary pupil" or
     5  its "tuition charge per high school pupil," and the Commonwealth
     6  shall pay, out of funds appropriated to the department for
     7  special education, the balance due for the costs of such child's
     8  tuition and maintenance, as determined by the department in
     9  accordance with subsection (e). For the school years 1989-90,
    10  1990-91 and 1991-92, the school district payment shall be no
    11  greater than forty percent (40%) of the actual audited costs of
    12  tuition and maintenance of such child in such school. The
    13  department will credit the district of residence with average
    14  daily membership for such child consistent with the rules of
    15  procedure developed in accordance with section 2501. If the
    16  residence of such child in a particular school district cannot
    17  be determined, the Commonwealth shall pay, out of moneys
    18  appropriated to the department for special education, the whole
    19  cost of tuition and maintenance of such child. [The Department
    20  of Education shall be provided with such financial data from
    21  each of the chartered schools as may be necessary to determine
    22  the reasonableness of charges for tuition and room and board of
    23  each of the chartered schools made on Pennsylvania resident
    24  approved students. The Department of Education shall evaluate
    25  such data and shall disallow any charges deemed unreasonable.
    26  Any charge deemed unreasonable by the Department of Education
    27  for disallowance shall be considered an adjudication within the
    28  meaning of Title 2 of the Pa.C.S. (relating to administrative
    29  law and procedure) and regulations promulgated thereunder.]
    30     (c)  When any person less than school age resident in this
    19910H1318B1886                  - 7 -

     1  Commonwealth who is blind or deaf is enrolled, with the approval
     2  of the Department of Education, as a [residential] pupil in any
     3  of the four (4) chartered schools, the Commonwealth shall pay to
     4  the school, out of moneys appropriated to the department for
     5  special education, the actual cost of tuition and maintenance of
     6  such person, as determined [by the Department of Education,
     7  subject to review and approval in accordance with standards and
     8  regulations promulgated by the State Board of Education, and in
     9  addition,] in accordance with subsection (e), including, in the
    10  case of any child less than school age, who is blind, the cost,
    11  as determined by the Department of Education of instructing the
    12  parent of such blind child in caring for such child.
    13     (d)  None of the chartered schools receiving payment in
    14  accordance with this section shall impose any charge on the
    15  student and/or parents who are approved reimbursable residents
    16  for a program of instruction and maintenance appropriate to the
    17  child's needs; except that charges for programs not part of the
    18  normal school year may be made.
    19     (e)  The procedures for the development of pre-approved
    20  budgets for chartered schools shall be as follows:
    21     (1)  On or before August 30 of the school year previous to
    22  the school year of operation, each chartered school shall submit
    23  to the Department of Education a program plan and budget which
    24  specifies in detail the special education services to be
    25  provided to approved residents of this Commonwealth. These
    26  estimates will form the preliminary estimate of the chartered
    27  school's line item in the department's budget.
    28     (2)  On or before November 15 of the school year previous to
    29  the school year of operation, each chartered school shall submit
    30  any revisions to their August estimated program plan and budget.
    19910H1318B1886                  - 8 -

     1     (3)  By February 1 of the school year previous to the school
     2  year of operation, the department shall review the detailed
     3  program plans and budgets and discuss modifications with each
     4  chartered school.
     5     (4)  Between February 1 and April 15 of the school year
     6  previous to the school year of operation, the department shall
     7  meet with each chartered school to negotiate a pre-approved
     8  budget for the following school year. These pre-approved budgets
     9  will form the basis for adjustments to the chartered school's
    10  line item in the General Appropriations act for the next fiscal
    11  year.
    12     (5)  On or before January 31 of the school year of operation,
    13  each chartered school may submit a request for program plan
    14  and/or budget modifications to the department. The department
    15  shall respond in writing to the request for modification within
    16  thirty (30) days of the receipt of such request. The department
    17  may approve, reject or approve in part the requested
    18  modifications.
    19     (6)  Based upon the approved budget, the department shall
    20  provide each chartered school with quarterly payments during the
    21  year of operation of the program. The department may withhold a
    22  portion of such payments not exceeding five per centum (5%) of
    23  such payment pending final audit. Under no circumstances shall
    24  either the advance payments or final reimbursement made by the
    25  department following audit exceed the appropriation available
    26  for chartered schools.
    27     (7)  An independent audit report for the preceding fiscal
    28  year which is consistent with department audit standards shall
    29  be submitted by each chartered school to the department no later
    30  than one hundred twenty (120) days after the close of the
    19910H1318B1886                  - 9 -

     1  preceding fiscal year. The department shall review each audit
     2  and make a determination of its acceptance. Such determination
     3  shall be communicated in writing to the chartered school within
     4  one hundred twenty (120) days of its receipt; otherwise, the
     5  audit shall be deemed to be approved and accepted. The
     6  determination of acceptance shall be considered an adjudication
     7  within the meaning of 2 Pa.C.S. (relating to administrative law
     8  and procedure) and regulations promulgated thereunder. Final
     9  payment to the chartered school shall be made within ninety (90)
    10  days of acceptance of the audit by the department.
    11     Section 2.  This act shall take effect July 1, 1991.













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