1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," in reimbursements by Commonwealth and
6between school districts, providing for funding for schools
7operated by children's residential facilities.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. The act of March 10, 1949 (P.L.30, No.14), known
11as the Public School Code of 1949, is amended by adding a
12section to read:

13Section 2599.5. Funding for Schools Operated by Children's
14Residential Facilities.--(a) Funding for a children's
15residential facility shall be provided in the following manner:

16(1) There shall be no tuition charge for a resident or non-
17resident student attending a children's residential facility.

18(2) For non-special education students, the children's
19residential facility shall receive for each student enrolled no
20less than the budgeted total expenditure per average daily

1membership of the prior school year, as defined in section
22501(20), minus the budgeted expenditures of the district of
3residence for nonpublic school programs; adult education
4programs; community/junior college programs; student
5transportation services; special education programs; facilities
6acquisition, construction and improvement services; and other
7financing uses, including debt service and fund transfers as
8provided in the Manual of Accounting and Related Financial
9Procedures for Pennsylvania School Systems established by the
10Department of Education. This amount shall be paid by the
11district of residence of each student.

12(3) For special education students, the children's
13residential facility shall receive for each student enrolled the
14same funding as for each non-special education student as
15provided in paragraph (2), plus an additional amount determined
16by dividing the district of residence's total special education
17expenditure by the product of multiplying the combined
18percentage of section 2509.5(k) times the district of
19residence's total average daily membership for the prior school
20year. This amount shall be paid by the district of residence of
21each student.

22(4) A children's residential facility may request the
23intermediate unit in which the children's residential facility
24is located to provide services to assist the children's
25residential facility to address the specific needs of
26exceptional students. The intermediate unit shall assist the
27children's residential facility and bill the children's
28residential facility for the services. The intermediate unit may
29not charge the children's residential facility more for any
30service than it charges the constituent districts of the

1intermediate unit.

2(5) Payments shall be made to the children's residential
3facility in twelve (12) equal monthly payments, by the fifth day
4of each month, within the operating school year. A student
5enrolled in a children's residential facility shall be included
6in the average daily membership of the student's district of
7residence for the purpose of providing basic education funding
8payments and special education funding pursuant to this article.
9If a school district fails to make a payment to a children's
10residential facility as prescribed in this paragraph, the
11Secretary of Education shall deduct the estimated amount, as
12documented by the children's residential facility, from all
13State payments made to the district after receipt of
14documentation from the children's residential facility.

15(6) Within thirty (30) days after the Secretary of Education
16makes the deduction described in paragraph (5), a school
17district may notify the secretary that the deduction made from
18State payments to the district under this subsection is
19inaccurate. The secretary shall provide the school district with
20an opportunity to be heard concerning whether the children's
21residential facility documented that its students were enrolled
22in the children's residential facility, the period of time
23during which each student was enrolled, the school district of
24residence of each student and whether the amounts deducted from
25the school district were accurate.

26(b) It shall be lawful for any children's residential
27facility to receive, hold, manage and use, absolutely or in
28trust, any devise, bequest, grant, endowment, gift or donation
29of any property, real or personal and/or mixed, which shall be
30made to the children's residential facility for any of the

1purposes of this article.

2(c) It shall be unlawful for any trustee of a children's
3residential facility or any board of trustees of a children's
4residential facility or any other person affiliated in any way
5with a children's residential facility to demand or request,
6directly or indirectly, any gift, donation or contribution of
7any kind from any parent, teacher, employe or any other person
8affiliated with the children's residential facility as a
9condition for employment or enrollment and/or continued
10attendance of any pupil. Any donation, gift or contribution
11received by a children's residential facility shall be given
12freely and voluntarily.

13(d) For purposes of this section, the address of a child at 
14the time of placement resulting from a court's adjudication of 
15delinquency shall be deemed the address of residency for the 
16determination of the financial responsibility of the school 
17district of residence.

18(e) A school district may enter into a contract with a
19children's residential facility to provide educational services
20to children adjudicated delinquent. The Department of Education
21shall develop, in conjunction with the Department of Public
22Welfare and the Juvenile Court Judges' Commission, written
23guidelines for school districts contracting with children's
24residential facilities to ensure compliance with applicable law
25and regulation. The guidelines shall address:

26(1) Minimum monitoring standards for children's residential
27facilities' educational programs and services, including:

28(i) the role of intermediate units in monitoring educational
29services;

30(ii) the role of school districts in which are located

1children's residential facilities in monitoring educational
2services;

3(iii) the identification of the specific educational needs
4of children adjudicated delinquent;

5(iv) coordination of children's residential facility
6licensure regulations of the Department of Public Welfare with
7the facility's educational program; and

8(v) measures to be taken in cases where the child
9adjudicated delinquent is to be reintegrated into the school
10district of residence.

11(2) Procedures that children's residential facilities and
12school districts should use in claiming special education costs.

13(3) Procedures for determining districts of residence.

14(4) Allowable education costs.

15(5) Audit requirements.

16(6) Eligibility of children's residential facilities for
17indirect cost reimbursement.

18(f) The Department of Education and the Department of Public
19Welfare shall collaborate with the Juvenile Judges' Commission
20to develop a database that effectively and uniformly tracks
21placement of children adjudicated delinquent.

22(g) The following words and phrases when used in this
23section shall have the meanings given to them in this subsection
24unless the context clearly indicates otherwise:

25"Child adjudicated delinquent." An individual in this 
26Commonwealth who is under twenty-one (21) years of age, who 
27committed an act of delinquency before reaching eighteen (18) 
28years of age and who remains under the jurisdiction of the 
29juvenile court.

30"Children's residential facility." A licensed private

1academic secondary school or approved private alternative
2education program operated by a facility that provides
3residential services in this Commonwealth at the secondary level
4to at least two hundred (200) adjudicated delinquents annually
5and that operates under a certificate of compliance issued by
6the Department of Public Welfare. The term does not include a
7private residential rehabilitative institution as defined under
8section 914.1-A.

9Section 2. This act shall take effect in 60 days.