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                                                      PRINTER'S NO. 1607

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1374 Session of 1999


        INTRODUCED BY ADOLPH, KELLER, RAYMOND, RYAN, CIVERA, GANNON,
           MICOZZIE, FLICK, BARRAR, DiGIROLAMO, FICHTER, GIGLIOTTI,
           HENNESSEY, KAISER, DAILEY, KENNEY, LEDERER, MELIO, O'BRIEN,
           PERZEL, TANGRETTI, E. Z. TAYLOR, J. TAYLOR AND WOGAN,
           APRIL 21, 1999

        REFERRED TO COMMITTEE ON EDUCATION, APRIL 21, 1999

                                     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," providing educational opportunity
     6     grants to enable qualified parents to make educational
     7     choices for their children and for academically bankrupt
     8     school districts and students within such districts; and
     9     further providing for funding bases, for transportation and
    10     for tuition charges for nonresident students.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 1361 of the act of March 10, 1949
    14  (P.L.30, No.14), known as the Public School Code of 1949,
    15  amended May 11, 1979 (P.L.26, No.7), is amended to read:
    16     Section 1361.  When Provided.--(1)  The board of school
    17  directors in any school district may, out of the funds of the
    18  district, provide for the free transportation of any resident
    19  pupil to and from the kindergarten, elementary school, or
    20  secondary school in which he is lawfully enrolled, provided that


     1  such school is [not operated for profit and is] located within
     2  the district boundaries or outside the district boundaries at a
     3  distance not exceeding ten miles by the nearest public highway,
     4  except that such ten-mile limit shall not apply to area
     5  vocational technical schools which regularly serve eligible
     6  district pupils or to special schools and classes approved by
     7  the Department of Education, and to and from any points within
     8  or without the Commonwealth in order to provide field trips for
     9  any purpose connected with the educational pursuits of the
    10  pupils. When provision is made by a board of school directors
    11  for the transportation of public school pupils to and from such
    12  schools or to and from any points within or without the
    13  Commonwealth in order to provide field trips as herein provided,
    14  the board of school directors shall also make identical
    15  provision for the free transportation of:
    16     (i)  public school students who are resident within the
    17  district and who regularly attend a charter school, pursuant to
    18  section 1303-B, or regularly attend a public school within their
    19  district of residence or outside the boundaries of their
    20  district of residence at a distance not exceeding ten (10) miles
    21  by the nearest public highway to and from such schools; and
    22     (ii)  pupils who regularly attend nonpublic kindergarten,
    23  elementary and high schools not operated for profit to and from
    24  such schools or to and from any points within or without the
    25  Commonwealth in order to provide field trips as herein provided.
    26  Such transportation of pupils attending nonpublic schools shall
    27  be provided during regular school hours on such dates and
    28  periods that the nonpublic school not operated for profit is in
    29  regular session, according to the school calendar officially
    30  adopted by the directors of the same in accordance with
    19990H1374B1607                  - 2 -

     1  provisions of law. The board of school directors shall provide
     2  such transportation whenever so required by any of the
     3  provisions of this act or of any other act of Assembly.
     4     (2)  The board of school directors in any school district
     5  may, if the board deems it to the best interest of the school
     6  district, for the purposes of transporting pupils as required or
     7  authorized by any of the provisions of this act or of any other
     8  act of the Assembly, appropriate funds for urban common carrier
     9  mass transportation purposes from current revenues to urban
    10  common carrier mass transportation authorities to assist the
    11  authorities to meet costs of operation, maintenance, capital
    12  improvements, and debt service. Said contributions shall not be
    13  subject to reimbursement by the Commonwealth of Pennsylvania.
    14     (3)  The State Board of Education shall adopt regulations,
    15  including qualifications of school bus drivers, to govern the
    16  transportation of school pupils.
    17     Section 2.  The act is amended by adding an article to read:
    18                          ARTICLE XIII-B.
    19                  EDUCATIONAL OPPORTUNITY GRANTS.
    20     Section 1301-B.  Legislative Findings.--(a)  The General
    21  Assembly finds that:
    22     (1)  It is the policy of the Commonwealth to enhance the
    23  primary right and obligation of parents to choose the education
    24  and training of their school-age children.
    25     (2)  An educated populace is essential to the political and
    26  economic health of the Commonwealth.
    27     (3)  Providing educational opportunities for the children of
    28  this Commonwealth is a governmental duty and must be
    29  accomplished through innovative approaches and a variety of
    30  programming options.
    19990H1374B1607                  - 3 -

     1     (4)  The legitimate interest and governmental duty of the
     2  Commonwealth in facilitating education of the highest quality
     3  for children of this Commonwealth is enhanced by encouraging
     4  competitive and diverse alternatives for parents and students
     5  that enable them to choose from both public and nonpublic
     6  educational programs.
     7     (5)  The importance of quality education and the need to
     8  maintain and enhance an effective system of education supports
     9  the creation of programs to provide for the increased
    10  availability of diverse opportunities, including both public and
    11  nonpublic programs of education which benefit all citizens of
    12  this Commonwealth.
    13     (6)  Providing parents with nonpublic educational
    14  alternatives decreases the burdens on the Commonwealth and
    15  increases the range of educational choices available to families
    16  of this Commonwealth, thus providing a benefit to all citizens
    17  of this Commonwealth.
    18     (7)  A comparatively far greater proportion of public funds
    19  are and, upon implementation of an educational choice program,
    20  will continue to be devoted to the benefit of students enrolled
    21  in the public schools of this Commonwealth.
    22     (8)  School-age residents of this Commonwealth, their parents
    23  and the Commonwealth in general will benefit from a program of
    24  economic assistance which gives parents the ability to choose
    25  the educational setting best suited to each child's needs.
    26     (9)  A program of economic assistance to enhance educational
    27  choice in this Commonwealth will better prepare its citizens to
    28  compete for employment opportunities, and will foster
    29  development of a more capable and a better-educated work force.
    30     Section 1302-B.  Definitions.--The following words and
    19990H1374B1607                  - 4 -

     1  phrases when used in this article shall have the meanings given
     2  to them in this section unless the context clearly indicates
     3  otherwise:
     4     "Basic education funding" shall mean a school district's
     5  portion as defined by this act of the annual appropriation made
     6  by the Commonwealth to the Department of Education for payment
     7  of basic education funding to school districts.
     8     "Department" shall mean the Department of Education of the
     9  Commonwealth.
    10     "Educational opportunity grant" or "grant" shall mean a grant
    11  awarded to the parents of an eligible grant recipient pursuant
    12  to this article.
    13     "Eligible grant recipient" shall mean a school-age resident
    14  of this Commonwealth who attends or is about to attend a full-
    15  time kindergarten, a part-time kindergarten, an elementary
    16  school or a secondary school in this Commonwealth on a tuition-
    17  paying basis whose parent received taxable income as prescribed
    18  in section 1304-B(b)(2) and who resides in any of the following:
    19     (1)  A county of the first class.
    20     (2)  In the following counties or townships contiguous to or
    21  in close proximity with a city of the first or second class:
    22     (i)  A county of the second class.
    23     (ii)  A county of the second class A with a population
    24  greater than five hundred forty-five thousand (545,000).
    25     (iii)  A township of the first class with a population over
    26  fifty thousand (50,000).
    27     (iv)  A township of the second class with a population over
    28  fifty thousand (50,000).
    29     (3)  A county of the third class with a population over three
    30  hundred seventy-five thousand (375,000).
    19990H1374B1607                  - 5 -

     1     (4)  A county of the third class with a population greater
     2  than two hundred twenty-five thousand (225,000) but less than
     3  two hundred forty thousand (240,000).
     4     (5)  A city of the second class, second class A or of the
     5  third class with a population over forty-seven thousand
     6  (47,000), except for a city of the third class with a population
     7  between seventy thousand (70,000) and seventy-five thousand
     8  (75,000).
     9  Population figures shall be determined by using the official
    10  1990 census as established in 13 U.S.C. (relating to census).
    11  School-age residents in these communities shall remain eligible
    12  for a grant irrespective of population figures in the official
    13  2000 census.
    14     "Nonpublic" or "nonpublic school" shall mean any school,
    15  other than a public school, located within this Commonwealth
    16  where a Commonwealth resident may legally fulfill the compulsory
    17  school attendance requirements of this act and which meets the
    18  applicable requirements of Title VI of the Civil Rights Act of
    19  1964 (Public Law 88-352, 78 Stat. 241). The term includes a
    20  full-day or half-day kindergarten program operated by a
    21  nonpublic school.
    22     "Parent" or "parents" shall mean a Commonwealth resident who
    23  is a parent or guardian of, or person in parental relation to, a
    24  school-age child.
    25     "School" shall mean any public or nonpublic elementary or
    26  secondary school located within this Commonwealth where a
    27  Commonwealth resident may legally fulfill the compulsory school
    28  attendance requirements of this act which meets the applicable
    29  requirements of Title VI of the Civil Rights Act of 1964 (Public
    30  Law 88-352, 78 Stat. 241). The term includes a full-time or
    19990H1374B1607                  - 6 -

     1  part-time kindergarten program operated by a school. The term
     2  does not include an approved private school as provided for in
     3  section 1376 or a charter school as provided in section 1376.1
     4  or a charter school established under Article XVII-A.
     5     "School-age" shall mean the age of a child from the earliest
     6  admission age to a school's kindergarten program until the age
     7  of twenty-one (21) years or graduation from high school,
     8  whichever occurs first.
     9     "Secretary" shall mean the Secretary of Education of the
    10  Commonwealth.
    11     "Student" shall mean a school-age resident of this
    12  Commonwealth who attends or is about to attend a full-day
    13  kindergarten, a half-day kindergarten, an elementary school or a
    14  secondary school within this Commonwealth.
    15     "Taxable income" shall mean the term as defined in section 63
    16  of the Internal Revenue Code of 1986 (Public Law 99-514, 26
    17  U.S.C. § 1 et seq.) or the corresponding provision of any
    18  successor statute and reported by the parent of an eligible
    19  grant recipient on the parent's Federal income tax return as
    20  taxable income during the calendar year immediately preceding
    21  the beginning of the school year for which an educational
    22  opportunity grant is sought. For individuals who are not
    23  required to file a Federal income tax return, the term shall
    24  mean all income from whatever source derived, calculated as if
    25  that individual was required to file a Federal income tax
    26  return.
    27     Section 1303-B.  Public Schools.--(a)  Beginning with the
    28  1999-2000 school year, every public school student in this
    29  Commonwealth shall be permitted to attend the public school
    30  selected by the student's parents, unless any of the following
    19990H1374B1607                  - 7 -

     1  occurs:
     2     (1)  The public school selected has no additional attendance
     3  slots and the district so notifies the department and the
     4  student within the time limitations established by the
     5  department.
     6     (2)  The student's attendance would place either the
     7  receiving school district or the student's district of residence
     8  in violation of a valid and binding desegregation order.
     9     (3)  The public school requested does not offer appropriate
    10  programs or is not structured or equipped with the necessary
    11  facilities to meet the special needs of the student or does not
    12  offer a particular program requested.
    13     (4)  The student has been expelled or is in the process of
    14  being expelled pursuant to sections 1317.2 and 1318 and
    15  applicable regulations of the State Board of Education.
    16     (5)  The student does not meet the established eligibility
    17  criteria for participation in magnet schools or in schools with
    18  specialized academic missions.
    19     (b)  (1)  The parents of a school-age student who is
    20  attending or about to attend a public school may apply to up to
    21  three public schools which the student wishes to attend during
    22  the 1999-2000 school year and every school year thereafter. The
    23  application shall be on a form provided by the department. For
    24  the 1999-2000 school year, the application shall be made no
    25  later than July 15. In subsequent years the deadline for filing
    26  applications shall be March 1 preceding the school term which
    27  commences in that year. The school district shall notify the
    28  parents not later than August 15, 1999, for the 1999-2000 school
    29  year and not later than May 1 preceding the school term which
    30  commences in subsequent years, whether or not the application
    19990H1374B1607                  - 8 -

     1  has been accepted. If the application is not made in a timely
     2  fashion or cannot be approved pursuant to subsection (a), the
     3  student's district of residence shall use its normal procedures
     4  to determine the public school within that district to which the
     5  student shall be assigned.
     6     (2)  The Commonwealth shall make payment, pursuant to the
     7  schedule contained in section 2517, to each public school
     8  district, area vocational-technical school or intermediate unit
     9  which accepts a nonresident student under this section in the
    10  following manner:
    11     (i)  The Commonwealth shall pay on a current year basis from
    12  current year appropriations for educational opportunity grants
    13  to each school district, area vocational-technical school or
    14  intermediate unit which accepts a nonresident student, on a
    15  tuition basis, an amount equal to the greater of the per pupil
    16  basic education funding of the student's school district of
    17  residence or of the receiving school district. A student
    18  attending a public school outside the student's district of
    19  residence shall not be included in the average daily membership
    20  of any school district for the purpose of determining the basic
    21  education funding.
    22     (ii)  For a nonresident student defined as a "child with
    23  exceptionalities" under section 1371, who receives a grant, the
    24  district of residence shall not be required to pay more for
    25  services provided to the student by the receiving district than
    26  the difference between the current year budgeted cost of the
    27  services, had the student remained in the district of residence,
    28  and the sum of the grant plus the per pupil basic education
    29  funding. The district of residence shall provide the receiving
    30  district with documentation of the prior year's cost of services
    19990H1374B1607                  - 9 -

     1  provided to the student and the budgeted cost of providing those
     2  services in the current year had the student remained in the
     3  district of residence. Additional costs shall be borne by the
     4  receiving school district.
     5     (iii)  For a nonresident student who is not a grant recipient
     6  and who is defined as a "child with exceptionalities" under
     7  section 1371, the district of residence shall not be required to
     8  pay more for services provided to the student by the receiving
     9  district than the difference between the current year budgeted
    10  cost of the services, had the student remained in the district
    11  of residence, and the per pupil basic education funding credited
    12  to the grant recipient. The district of residence shall provide
    13  the receiving district with documentation of the prior year's
    14  cost of services provided to the student and the budgeted cost
    15  of providing those services in the current year had the student
    16  remained in the district of residence. Additional costs shall be
    17  borne by the receiving school district.
    18     (iv)  A student receiving services under subclause (ii) or
    19  (iii) shall be included in the average daily membership of the
    20  student's district of residence for the purpose of determining
    21  special education funding pursuant to section 2509.5.
    22     (3)  In addition to the grant awarded to the parents of an
    23  eligible grant recipient attending a public school outside the
    24  grant recipient's district of residence, an amount equal to the
    25  greater of the per pupil basic education funding credit in the
    26  grant recipient's district of residence or of the receiving
    27  school district shall be credited toward the tuition charged to
    28  that student by the receiving district. Should the grant award
    29  plus the per pupil basic education funding credit exceed the
    30  tuition charge of the receiving school district, the grant award
    19990H1374B1607                 - 10 -

     1  shall be reduced by the amount in excess of the tuition charge.
     2  Should the grant award plus the per pupil basic education
     3  funding credit not be sufficient to meet the tuition charge of
     4  the receiving school district, an amount equal to thirty-three
     5  and one-third (33 1/3) per centum of the balance of the charge
     6  shall be payable by the eligible grant recipient's parents and,
     7  along with the grant and the per pupil basic education funding
     8  credit, and shall be deemed to be payment in full of the
     9  receiving district's tuition charge. In the case of a student
    10  who is not eligible for a grant, only the per pupil basic
    11  education funding authorized by this subsection shall be applied
    12  toward the tuition charge of the receiving school district. The
    13  student's parents shall pay an amount equal to thirty-three and
    14  one-third (33 1/3) per centum of the balance of the charge which
    15  shall be deemed to be payment in full of the receiving
    16  district's tuition charge: Provided, however, That funding for a
    17  nonresident student defined as a "child with exceptionalities"
    18  under section 1371 shall be provided pursuant to clause
    19  (2)(ii)(iii) and (iv).
    20     (4)  Each school district, area vocational-technical school
    21  or intermediate unit in its sole discretion, shall determine by
    22  resolution the number of available attendance slots on an annual
    23  basis at each age or grade level at each of its public schools
    24  and shall report that number to the department each year by a
    25  date to be established by the department. The department shall
    26  not have any authority to abrogate or modify a determination of
    27  a school entity regarding the number of available attendance
    28  slots. In determining and allocating attendance slots, each
    29  school district shall provide for the accommodation of any
    30  resident student of the district who desires to attend a
    19990H1374B1607                 - 11 -

     1  particular public school in the district, giving first
     2  preference to students residing within a school's attendance
     3  boundary. After providing for the attendance of the remaining
     4  resident students, the school district shall give first
     5  preference to nonresident students who were in attendance in the
     6  district's schools during the immediately preceding school term.
     7  If sufficient slots are not available to accommodate nonresident
     8  students who were in attendance in the district's schools during
     9  the immediately preceding school term, available slots shall be
    10  allocated through a publicly conducted lottery among these
    11  students. Should any attendance slots remain available after
    12  providing for nonresident students who were in attendance during
    13  the preceding term, the slots shall be filled by the
    14  superintendent or his designee, through a publicly conducted
    15  lottery from the pool of all remaining qualified applicants who
    16  have made timely application. With the exception of magnet
    17  schools or schools with specialized academic missions, selection
    18  procedures shall not include eligibility criteria in the
    19  allocation of available slots.
    20     Section 1304-B.  Educational Opportunity Grants.--(a)
    21  Educational opportunity grants authorized under this article
    22  shall be made from and limited to annual appropriations made by
    23  the General Assembly to the department for this purpose. In the
    24  event that insufficient moneys are appropriated in any fiscal
    25  year to provide grants to all parents of eligible grant
    26  recipients in the full amount authorized, the department shall
    27  make pro rata reductions in the amount of the grant provided to
    28  each parent.
    29     (b)  The department shall administer a program of educational
    30  opportunity grant awards to be made annually to the parents of
    19990H1374B1607                 - 12 -

     1  each eligible grant recipient subject to the following:
     2     (1)  Grants shall be made only for the payment of tuition at
     3  a school within this Commonwealth. Grants shall not be made for
     4  a home education program provided pursuant to section 1327.1.
     5     (2)  For the school year 1999-2000, a grant shall be
     6  available only to eligible grant recipients whose parents
     7  received annual taxable income which did not exceed fifteen
     8  thousand dollars ($15,000). For the school year 2000-2001, a
     9  grant shall be available only to eligible grant recipients whose
    10  parents received taxable income which did not exceed twenty-five
    11  thousand dollars ($25,000). For the school year 2001-2002, a
    12  grant shall be available only to eligible grant recipients whose
    13  parents received taxable income which did not exceed thirty-five
    14  thousand dollars ($35,000). For the school year 2002-2003, a
    15  grant shall be available only to eligible grant recipients whose
    16  parents received taxable income which did not exceed fifty
    17  thousand dollars ($50,000). For the school year 2003-2004, a
    18  grant shall be available only to eligible grant recipients whose
    19  parents received taxable income which did not exceed seventy-
    20  five thousand dollars ($75,000). The yearly taxable income limit
    21  shall be published by the department as a notice in the
    22  Pennsylvania Bulletin.
    23     (3)  For the school years 1999-2000 through 2003-2004, the
    24  grant shall be the lesser of seven hundred dollars ($700) or an
    25  amount equal to ninety (90) per centum of the actual amount of
    26  tuition:
    27     (i)  for an eligible grant recipient enrolled in a full-day
    28  kindergarten program meeting the requirements relating to
    29  minimum hours or days of instruction in section 1327; or
    30     (ii)  for an eligible grant recipient enrolled in any grade
    19990H1374B1607                 - 13 -

     1  one (1) through eight (8).
     2     (4)  For the school years 1999-2000 through 2003-2004, the
     3  grant shall be the lesser of three hundred fifty dollars ($350)
     4  or an amount equal to ninety (90) per centum of the actual
     5  amount of tuition for an eligible grant recipient enrolled in a
     6  half-day kindergarten program meeting the requirements of this
     7  act.
     8     (5)  For the school years 1999-2000 through 2003-2004, a
     9  grant for an eligible grant recipient whose parents received
    10  taxable income which did not exceed fifteen thousand dollars
    11  ($15,000) shall be two times the grant level established in
    12  clauses (3) and (4) but in no case shall the grant exceed an
    13  amount equal to ninety (90%) per centum of the actual amount of
    14  tuition.
    15     (6)  For the school years 2000-2001 through 2003-2004, a
    16  grant for an eligible grant recipient who was enrolled in grade
    17  eight in the prior school year and who is enrolled in grade nine
    18  through twelve in a subsequent school year, shall be the grant
    19  level received during the eighth grade under clause (3), (4) or
    20  (5).
    21     Section 1305-B.  Administration.--(a)  The department shall
    22  adopt guidelines to establish:
    23     (1)  an application form and approval process;
    24     (2)  standards for verification of the accuracy of
    25  application information;
    26     (3)  confirmation of attendance;
    27     (4)  pro rata refunds of grants for students who withdraw
    28  during the school year;
    29     (5)  repayment of refunded grants to the department;
    30     (6)  reasonable deadlines for submission of applications; and
    19990H1374B1607                 - 14 -

     1     (7)  the general establishment and operation of the grant
     2  program and basic education funding payments.
     3  The department shall announce the award of grants no later than
     4  August 15 for the 1999-2000 school year and thereafter as
     5  provided in the guidelines. If a grant recipient is no longer
     6  enrolled prior to the completion of the school term, the school
     7  shall send written notice to the department. The guidelines
     8  shall be published in the Pennsylvania Bulletin. A copy of the
     9  guidelines shall be mailed by the department to each school
    10  district and nonpublic school in this Commonwealth.
    11     (b)  Adjudications under this article shall be subject to 2
    12  Pa.C.S. (relating to administrative law and procedure).
    13     (c)  Grants shall be paid to the parent of an eligible
    14  recipient upon receipt of written confirmation of enrollment
    15  from the school. If a grant recipient is no longer enrolled
    16  prior to the end of the school term, the school shall notify the
    17  department in writing within seven (7) days.
    18     (d)  The department shall adopt procedures to assist school
    19  districts to develop and distribute public information
    20  concerning educational choice programs. In addition to other
    21  public information programs used by the department, procedures
    22  for dissemination of public information shall be published in
    23  the Pennsylvania Bulletin and shall be mailed by the department
    24  to each school district and nonpublic school in this
    25  Commonwealth.
    26     (e)  The accuracy of the application shall be verified in
    27  writing by the parents. The application shall also include a
    28  verified statement from the school district or nonpublic school
    29  setting forth the educational program for which a grant is
    30  sought and attesting to the enrollment of the eligible grant
    19990H1374B1607                 - 15 -

     1  recipient and the tuition charge. Each year the department shall
     2  verify the accuracy of grant applications through a random audit
     3  process. The audit process may include requesting a copy of the
     4  applicant's applicable Federal income tax return or other
     5  evidence of the applicant's financial status. If the applicant
     6  is not required to submit a Federal income tax return, income
     7  shall be verified by appropriate documentation requested by the
     8  department. An applicant who fails to submit information and
     9  documentation requested by the department without a showing
    10  satisfactory to the department that the information or
    11  documentation is unavailable and without offering substitute
    12  documentation satisfactory to the department shall forfeit
    13  eligibility for a grant until a copy of the required
    14  documentation has been received by the department. Income
    15  verification under this subsection may also be used when the
    16  department has probable cause to believe an applicant has
    17  submitted incorrect income information. Copies of Federal tax
    18  returns and other income information and documentation received
    19  pursuant to this subsection shall be confidential. Department
    20  personnel shall be subject to all disclosure and penalty
    21  provisions of section 353 (f) of the act of March 4, 1971
    22  (P.L.6, No.2), known as the "Tax Reform Code of 1971."
    23     (f)  If a student attends a public school outside the
    24  student's district of residence and the receiving school
    25  district has received per pupil basic education funding for the
    26  student and the student is no longer enrolled prior to
    27  completion of the school term, the receiving district shall
    28  refund a pro rata portion of the per pupil basic education
    29  funding for the balance of the school year to the department
    30  within ten (10) days of determining that the student is no
    19990H1374B1607                 - 16 -

     1  longer enrolled.
     2     (g)  (1)  If a grant recipient is no longer enrolled in a
     3  school and is not subsequently timely enrolled in another full-
     4  day kindergarten, half-day kindergarten, or elementary or
     5  secondary program, the parent of the grant recipient shall
     6  submit the full amount of a pro rata grant refund payment to the
     7  department within thirty (30) days of receipt of notification
     8  that the payment is due. If the parent fails to submit the pro
     9  rata grant refund, the department may impose interest on the
    10  amount owed by the parent. Interest shall be calculated from the
    11  due date at the rate determined by the Secretary of Revenue for
    12  interest payments on overdue taxes or the refund of taxes as
    13  provided in sections 806 and 806.1 of the act of April 9, 1929
    14  (P.L.343, No.176), known as "The Fiscal Code." Should the
    15  parents of the grant recipient fail to submit the full amount of
    16  the refund to the department within one hundred eighty (180)
    17  days of a written demand therefore, the department may also
    18  impose a civil penalty not to exceed the full amount of the
    19  annual grant award made to the parents and disqualify the grant
    20  recipient from eligibility for an educational opportunity grant
    21  for a period of up to two (2) years.
    22     (2)  In addition to the penalties in clause (1), any parent
    23  who fraudulently submits a grant application or who knowingly
    24  falsifies information on a grant application or other
    25  documentation submitted to the department shall be subject to
    26  imposition by the department of a civil penalty of up to five
    27  thousand dollars ($5,000) and shall be disqualified from
    28  participation in the educational opportunity grant program for a
    29  period of up to five (5) years.
    30     (3)  In addition to the penalties contained in clauses (1)
    19990H1374B1607                 - 17 -

     1  and (2), any parent who fails to make a required refund to the
     2  department or who fraudulently submits a grant application or
     3  who knowingly falsifies information on a grant application or
     4  other documentation submitted to the department shall reimburse
     5  the department for the full amount of any grant or pro rata
     6  refund received by the parent.
     7     (4)  Any school that wilfully fails to provide timely notice
     8  that a student is no longer enrolled as prescribed by department
     9  guidelines, shall be subject to imposition by the department of
    10  a civil penalty not to exceed one thousand dollars ($1,000) for
    11  each failure.
    12     (5)  Any parent who is convicted of or who pleads guilty or
    13  nolo contendere to a charge of fraudulently submitting or
    14  knowingly falsifying a grant application or fraudulently or
    15  knowingly failing to timely reimburse the department for the pro
    16  rata refund of a grant shall be guilty of a misdemeanor of the
    17  third degree and shall be subject to a fine of up to five
    18  thousand dollars ($5,000) and/or to imprisonment for up to one
    19  (1) year.
    20     (6)  Any school, person or entity that is convicted of or
    21  pleads guilty or nolo contendere to fraudulently or wilfully
    22  submitting, or causing to be submitted false or misleading
    23  information shall be guilty of a misdemeanor of the third degree
    24  and shall be subject to a fine of up to five thousand dollars
    25  ($5,000) and/or to imprisonment for up to one (1) year.
    26     (h)  Notwithstanding any other provision of law, procedures
    27  and guidelines under this article shall not be subject to
    28  review, regulation or approval by the State Board of Education.
    29     (i)  Nothing in this article shall be construed to empower
    30  the Commonwealth or any of its agencies or officers or political
    19990H1374B1607                 - 18 -

     1  subdivisions to impose any additional requirements on any
     2  nonpublic school which are not otherwise authorized under the
     3  laws of this Commonwealth or to require any nonpublic school to
     4  accept eligible grant recipients if the nonpublic school does
     5  not offer appropriate programs or is not structured or equipped
     6  with the necessary facilities to meet the special needs of the
     7  student or does not offer a particular program requested.
     8     (j)  Educational opportunity grant funds received by a parent
     9  of an eligible grant recipient under this article shall not be
    10  considered to be taxable income for purposes of Article III of
    11  the "Tax Reform Code of 1971," nor constitute financial
    12  assistance or appropriations to the educational institution
    13  attended by the grant recipient.
    14     (k)  No nonpublic school may be compelled to accept or enroll
    15  eligible grant recipients.
    16     (l)  No school may charge a grant recipient a higher tuition
    17  than the student would have been charged without receiving a
    18  grant.
    19     (m)  (1)  Except as provided in clause (2), the provisions of
    20  this article are severable. If any provision of this article or
    21  its application to any person or circumstances is finally
    22  determined to be invalid, the invalidity shall not affect other
    23  provisions or applications of this article which can be given
    24  effect without the invalid provision or application.
    25     (2)  (i)  If the provision in section 1303-B(b)(4) which
    26  empowers school entities to determine the number of attendance
    27  slots on an annual basis at each age or grade level at each
    28  public school is finally determined to be invalid by an
    29  appellate court of competent jurisdiction, this article shall be
    30  invalid.
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     1     (ii)  If the statutory authority for the award of educational
     2  opportunity grants to parents of students attending nonpublic
     3  schools is finally determined by an appellate court of competent
     4  jurisdiction to be unconstitutional, then the award of
     5  educational opportunity grants to parents of students attending
     6  public school shall be invalid. If the statutory authority for
     7  the award of educational opportunity grants to parents of
     8  students attending public schools is finally determined by an
     9  appellate court of competent jurisdiction to be
    10  unconstitutional, then the award of educational opportunity
    11  grants to parents of students attending nonpublic schools shall
    12  be invalid.
    13     (n)  If the award of educational opportunity grants to
    14  parents of students attending public or nonpublic schools is
    15  enjoined or otherwise delayed by a court of competent
    16  jurisdiction, the five-year schedule under section 1304-B,
    17  established for the awarding of grants and the basic education
    18  funding base established in section 2502.36 shall begin with the
    19  school year commencing after:
    20     (1)  If an injunction or delay occurs in a court of this
    21  Commonwealth, final determination of the Pennsylvania Supreme
    22  Court or an intermediate appellate court of this Commonwealth,
    23  so long as in the latter case, further review has been either
    24  precluded or denied.
    25     (2)  If an injunction occurs in Federal court, final
    26  determination by the United States Supreme Court or the Third
    27  Circuit Court of Appeals, so long as in the latter case further
    28  appeal or review has been precluded or denied.
    29     Section 1306-B.  Time Period for Program.--Provisions of this
    30  article pertaining to the award of educational opportunity
    19990H1374B1607                 - 20 -

     1  grants shall terminate five (5) years after the effective date
     2  of this article or five (5) years after the commencement of the
     3  educational opportunity grant program under this article,
     4  whichever is later, unless reenacted. This section shall not
     5  apply to provisions relating to the selection of a public school
     6  by a parent, which the parent's child will attend and the per
     7  pupil basic education funding, transportation and other
     8  provisions related to that choice.
     9     Section 1307-B.  Report.--(a)  No later than February 1,
    10  2001, and no later than January 1 each year thereafter, the
    11  secretary shall submit a report to the Governor and the
    12  Appropriations Committee and the Education Committee of the
    13  Senate and the Appropriations Committee and Education Committee
    14  of the House of Representatives, which shall include the
    15  following:
    16     (1)  The total number of educational opportunity grants
    17  awarded to students attending public schools outside their
    18  district of residence and students attending nonpublic schools.
    19     (2)  From the information provided on the grant application
    20  forms filed pursuant to section 1305-B(d).
    21     (i)  The number and amounts of grants awarded.
    22     (ii)  The schools for which grants were sought.
    23     (iii)  The tuition charge for the schools in which grant
    24  recipients were enrolled.
    25     (3)  The number of grant recipients who subsequently withdrew
    26  from their original enrollment choice.
    27     (4)  The number of public school students who were not grant
    28  recipients but attended a public school outside their district
    29  of residence.
    30     (5)  The number of exceptional students who attended a school
    19990H1374B1607                 - 21 -

     1  outside their district of residence, and for whom the resident
     2  district forwarded funding for their special education services.
     3     (6)  An estimate of additional transportation costs to public
     4  school districts under this article.
     5     (7)  The number of persons or schools for whom penalties were
     6  assessed under the provisions of section 1305-B(f). In no case
     7  shall the individual names of educational opportunity grant
     8  recipients or their parents be included in the report.
     9     Section 1308-B.  Evaluation.--(a)  On February 1 of the
    10  fourth year of the implementation of the educational opportunity
    11  grant program under section 1304-B, the Governor shall provide
    12  for an independent evaluation of the educational opportunity
    13  grant program. The evaluation report shall be provided to the
    14  Governor and the General Assembly by December 1 of the same
    15  calendar year.
    16     (b)  The department shall solicit requests for proposals for
    17  the evaluation of the educational opportunity grant program. The
    18  proposals shall be available for public inspection at least
    19  thirty (30) days prior to the awarding of the contract for the
    20  evaluation. The evaluation procedure shall include the receipt
    21  of public comments on the educational opportunity grant program.
    22     (c)  The evaluation shall consider where available:
    23     (1)  the levels of academic performance of students in public
    24  schools, students receiving educational opportunity grants to
    25  attend public and nonpublic schools, and students who are not
    26  grant recipients who attend a public school outside of their
    27  district of residence under section 1303-B;
    28     (2)  academic and extracurricular programs available for the
    29  education of students in all public schools and public and
    30  nonpublic schools with students receiving educational
    19990H1374B1607                 - 22 -

     1  opportunity grants;
     2     (3)  parental involvement in the activities of all public
     3  schools and nonpublic schools enrolling students receiving
     4  educational opportunity grants; and
     5     (4)  parental satisfaction with the educational opportunity
     6  grant and public school choice programs under this article.
     7     (d)  The department shall provide technical and other
     8  assistance to facilitate completion of the report.
     9     (e)  The evaluation shall not include any listing of programs
    10  or contain any assessments or measurements which address or
    11  measure the attitudes, values or personal beliefs of the
    12  students attending a school under the educational opportunity
    13  grant program or public school choice options provided in this
    14  article.
    15     (f)  A nonpublic school shall only be required to provide
    16  information for the independent evaluation to the extent that
    17  the information required under subsection (c) is readily
    18  available and does not require the administration of any
    19  additional tests or other academic assessments or require
    20  significant additional data collection by the school.
    21     Section 3.  Section 1726-A of the act, added June 19, 1997
    22  (P.L.225, No.22), is amended to read:
    23     Section 1726-A.  Transportation.--Students who reside in the
    24  school district in which the charter school is located or who
    25  are residents of a school district which is part of a regional
    26  charter school shall be provided transportation to the charter
    27  school on the same terms and conditions as transportation is
    28  provided to students attending the schools of the district.
    29  School districts of the first class shall also provide
    30  transportation to such students if they are of the same age or
    19990H1374B1607                 - 23 -

     1  are enrolled in the same grade, grades or their grade
     2  equivalents, as any students of the district for whom
     3  transportation is provided under any other program or policy to
     4  the schools of the district. Nonresident students shall be
     5  provided transportation under section 1361. Districts providing
     6  transportation to a charter school outside the district shall be
     7  eligible for payments under section 2509.3 for each public
     8  school student transported.
     9     Section 4.  The act is amended by adding sections to read:
    10     Section 2502.36.  Basic Education Funding Base.--
    11  Notwithstanding any other provisions of this act, for the 1999-
    12  2000 school year through the school year 2003-2004, a school
    13  district of residence for a student attending a public or
    14  nonpublic school under Article XIII-B shall not receive less in
    15  basic education funding as established in section 2502.13 and
    16  2502.35, and its successor provisions, than it received in the
    17  prior school year.
    18     Section 2502.37.  Unexpended Basic Education Funding.--(a)
    19  No later than March 1 of the fourth school year in which the
    20  expiration of the five-year pilot period for educational
    21  opportunity grants as provided in section 1306-B would occur,
    22  the department shall submit to the Appropriations Committee and
    23  Education Committee of the Senate and the Appropriations
    24  Committee and Education Committee of the House of
    25  Representatives an estimate of all funds not expended under
    26  basic education funding, as defined in Article XIII-B, by the
    27  Commonwealth for students attending a nonpublic school with an
    28  educational opportunity grant under section 1304-B. The estimate
    29  shall be made by determining the number of students who were
    30  enrolled in a public school in their district of residence
    19990H1374B1607                 - 24 -

     1  during the school year prior to the implementation of the
     2  educational opportunity grant program and who attend a nonpublic
     3  school in the fall of the fourth school year of the five-year
     4  implementation period of the grant program using an educational
     5  opportunity grant under section 1304-B.
     6     (b)  For the first school year following the five-year
     7  implementation period under section 1306-B, the Commonwealth
     8  shall provide funds equivalent to the estimated basic education
     9  funding not expended under subsection (a). The funds shall be
    10  paid on an equal per pupil basis to school districts with market
    11  value/income aid ratios equal to or greater than five thousand
    12  ten-thousandths (.5000) and which are in whole, or in part,
    13  located within counties of the fifth through eighth class. The
    14  board of directors of a school district shall use the funds:
    15     (1)  for professional development activities for staff to
    16  enable students to attain State and local academic standards;
    17     (2)  to hire additional teaching staff to reduce class sizes
    18  in grades kindergarten through three;
    19     (3)  to hire additional special education teachers and
    20  classroom aids; or
    21     (4)  to address other expenses of providing special education
    22  services to students who are defined as exceptional under
    23  section 1371. The funds shall not be used for administrative or
    24  legal expenses incurred in providing special education services.
    25     (c)  The submission date for the information required under
    26  subsection (a) shall be postponed to coincide with section 1306-
    27  B if the implementation of the educational opportunity grant
    28  program in section 1304-B is delayed.
    29     Section 5.  Section 2509.3 of the act, amended April 27, 1998
    30  (P.L.270, No.46), is amended to read:
    19990H1374B1607                 - 25 -

     1     Section 2509.3.  Payments on Account of Certain Interdistrict
     2  School Transportation and Transportation of Nonpublic School
     3  Pupils.--Each school district, regardless of classification,
     4  shall be paid by the Commonwealth the sum of thirty-five dollars
     5  ($35) for each nonpublic school pupil transported in the school
     6  year 1978-1979 through the school year 1983-1984. For the school
     7  year 1984-1985 through the school year 1989-1990, each school
     8  district shall be paid the sum of seventy dollars ($70) for each
     9  nonpublic school pupil transported. For the school years 1990-
    10  1991 and 1991-1992, each school district shall be paid the sum
    11  of one hundred twenty-four dollars ($124) for each nonpublic
    12  school pupil transported. For the school year 1992-1993 and the
    13  1993-1994 school year, each school district shall be paid the
    14  sum of one hundred fifty-nine dollars ($159) for each nonpublic
    15  school pupil transported. For the school year 1994-1995 through
    16  the school year 1996-1997, each school district shall be paid
    17  the sum of two hundred dollars ($200) for each nonpublic school
    18  pupil transported. For the school year 1997-1998 and each school
    19  year thereafter, each school district shall be paid the sum of
    20  two hundred eighty-five dollars ($285) for each nonpublic school
    21  pupil transported[.] and for each charter school pupil
    22  transported to a charter school outside the district boundaries.
    23  For the school year 1999-2000, and each school year thereafter,
    24  each district shall be paid the sum of two hundred eighty-five
    25  dollars ($285) for each public school pupil transported to a
    26  public school outside the school district pursuant to Article
    27  XIII-B.
    28     Section 6.  Section 2541(d) of the act, amended November 20,
    29  1979 (P.L.465, No.97), is amended to read:
    30     Section 2541.  Payments on Account of Pupil Transportation.--
    19990H1374B1607                 - 26 -

     1  * * *
     2     (d)  The Commonwealth shall reimburse the school districts
     3  for the school year 1973-1974 and for each year thereafter for
     4  the approved reimbursable costs incurred in providing
     5  transportation under section 1361 for students attending a
     6  public school or a charter school outside of their district of
     7  residence pursuant to Article XIII-B, for nonpublic school
     8  pupils and under section 1362 for hazardous conditions:
     9  Provided, however, That no district shall receive less than
    10  fifty percent (50%) of such approved reimbursable costs.
    11     * * *
    12     Section 7.  Section 2561 of the act, amended or added
    13  September 11, 1959 (P.L.873, No.348), July 25, 1963 (P.L.281,
    14  No.151), December 17, 1982 (P.L.1378, No.316), June 7, 1993
    15  (P.L.49, No.16) and June 25, 1997 (P.L.297, No.30), is amended
    16  to read:
    17     Section 2561.  Tuition Charges for Pupils of Other
    18  Districts.--(a)  A school district or vocational school district
    19  receiving elementary or high school pupils or vocational or
    20  other extension education pupils who are residents of another
    21  school district or another vocational school district shall
    22  compute the tuition charges as follows:
    23     (1)  General. Add the salaries of secretaries, treasurers,
    24  auditors, superintendents, the cost of library books, the
    25  salaries of librarians, lectures, health, medical, nurse and
    26  dental services, the wages of janitors, and other comparable
    27  employes, the cost of fuel, water, light and power, telephone
    28  rentals and tolls, the cost of maintenance of school plant,
    29  including ordinary repairs, but not including alterations or
    30  remodeling, the cost of care of school grounds, premiums on fire
    19990H1374B1607                 - 27 -

     1  and workmen's compensation insurance, the cost of attendance at
     2  teachers' institutes, and the district's contribution to the
     3  retirement fund and social security contribution fund on behalf
     4  of the above listed employes incurred for the school year
     5  immediately preceding, and divide the sum so obtained by the
     6  total number of pupils in average daily membership in the
     7  receiving district's public schools during the school year
     8  immediately preceding. The quotient so obtained shall be
     9  designated the "overhead cost per pupil."
    10     (2)  Elementary Tuition Charge. Add the salaries of
    11  supervisors, principals, clerks, assistants and teachers
    12  employed in the receiving district's elementary schools, the
    13  district's contribution to the retirement fund and social
    14  security contribution fund on behalf of teachers, supervisors
    15  and principals employed in the district's elementary schools,
    16  the cost of textbooks, and supplies of the second class used in
    17  the district's elementary schools incurred for the school year
    18  immediately preceding, and divide the sum so obtained by the
    19  total number of pupils in average daily membership in the
    20  receiving district's elementary schools during the school year
    21  immediately preceding. The quotient so obtained shall be
    22  designated as the "instruction cost per elementary pupil." Add
    23  to the instruction cost per elementary pupil, the overhead cost
    24  per pupil and a rental charge of eight dollars ($8) per pupil
    25  for the use of the receiving district's school plant. For the
    26  school years 1952-1953 and 1953-1954 only, but not thereafter,
    27  deduct from the amount so obtained the per pupil State
    28  appropriation on account of elementary school teaching units.
    29  The cost so determined shall be the "tuition charge per
    30  elementary pupil."
    19990H1374B1607                 - 28 -

     1     (3)  High School Tuition Charge. Add the salaries of
     2  supervisors, principals, clerks, assistants and teachers
     3  employed in the receiving district's high schools, the
     4  district's contribution to the retirement fund and social
     5  security contribution fund on behalf of teachers, supervisors
     6  and principals employed in the district's high schools, the cost
     7  of textbooks and supplies of the second class used in the
     8  district's high schools incurred for the school year immediately
     9  preceding, and divide the sum so obtained by the total number of
    10  pupils in average daily membership in the receiving district's
    11  high schools during the school year immediately preceding. The
    12  quotient so obtained shall be designated as the "instruction
    13  cost per high school pupil." Add to the instruction cost per
    14  high school pupil the overhead cost per pupil and a rental
    15  charge of eighteen dollars ($18) per pupil for the use of the
    16  receiving district's school plant. For the school years 1952-
    17  1953 and 1953-1954 only, but not thereafter, deduct from the
    18  amount so obtained the per pupil State appropriation on account
    19  of high school teaching units. The cost so determined shall be
    20  the "tuition charge per high school pupil." Upon the request of
    21  the receiving district, the "tuition charge per high school
    22  pupil" shall be computed separately for pupils attending junior
    23  high school and pupils attending senior high school.
    24     (4)  Vocational or Other Extension Tuition Charge. Add the
    25  salaries of administrators, supervisors, instructors, clerks and
    26  custodians specifically employed in the school district's or
    27  vocational school district's annual program of Vocational or
    28  other Extension Education, the cost of textbooks, and supplies
    29  of the second class issued for the program incurred for the
    30  school year immediately preceding. A charge of five cents (.05)
    19990H1374B1607                 - 29 -

     1  per pupil hour of instruction for the district overhead and
     2  plant usage. Subtract from the sum so obtained the amount of
     3  State appropriation applicable. The remainder shall be
     4  designated as the "district cost for vocational or other
     5  extension education." Determine the total pupil hours of
     6  instruction during the school year immediately preceding, divide
     7  the "district cost for vocational or other extension education"
     8  by the total pupil hours of instruction. The cost so determined
     9  shall be the "vocational or other extension tuition charge per
    10  pupil hour of instruction.
    11     (5)  A school district shall compute the tuition charges for
    12  pupils who are residents of another school district for
    13  budgetary purposes at the beginning of each school year, and
    14  shall use the expenses of the next preceding school year as a
    15  basis for such computation. At the end of each school year, the
    16  tuition charges shall again be computed and be based on the
    17  actual expenses for the school year immediately preceding and
    18  the tuition charges for non-resident pupils shall then be
    19  adjusted in accordance with this latter computation. The school
    20  district in which the non-resident pupil is a legal resident
    21  shall pay the tuition charges in accordance with the computation
    22  based upon these actual expenses.
    23     (6)  When the public school district administers and delivers
    24  the educational services required by this act to a child
    25  referred to an institution, pursuant to a proceeding under 42
    26  Pa.C.S. Ch. 63 (relating to juvenile matters), at the
    27  institution itself, the tuition to be charged to the district of
    28  residence of such child shall be one and one-half times the
    29  amount determined in accordance with clauses (1) through (5),
    30  but not to exceed the actual cost of the educational services
    19990H1374B1607                 - 30 -

     1  provided to such child.
     2     (7)  Special Education Tuition Charge.  When the receiving
     3  district voluntarily receives exceptional children, the
     4  receiving district and sending district may agree that the
     5  sending district will pay a special education charge in addition
     6  to the applicable tuition charge. Such special education charge
     7  shall be an amount as determined by the two school districts.
     8     (b)  The provisions of this section shall apply to the
     9  calculation of a tuition charge by a school district for a
    10  nonresident student attending a school within that district
    11  under the provisions of Article XIII, except for a "child with
    12  exceptionalities" as defined in section 1371. The provision of
    13  this section shall not establish the tuition payment to be made
    14  by a nonresident student attending the district under the
    15  provisions of Article XIII-B. The provisions of Article XIII-B
    16  shall supersede the provision of this section regarding the
    17  tuition payment made by a nonresident student.
    18     Section 8.  The Department of Education shall, within 120
    19  days of the effective date of this act, adopt and publish such
    20  guidelines and procedures as may be required to fully implement
    21  Article XIII-B of the act. The initial guidelines and procedures
    22  shall not be subject to the act of June 25, 1982 (P.L.633,
    23  No.181), known as the Regulatory Review Act.
    24     Section 9.  The amendment of section 1726-A of the act shall
    25  be retroactive to July 1, 1998.
    26     Section 10.  This act shall take effect immediately.



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