PRIOR PRINTER'S NOS. 666, 1789, 2305, PRINTER'S NO. 4325
2385, 2474
No. 564 Session of 2003
Report of the Committee of Conference
To the Members of the House of Representatives and Senate:
We, the undersigned, Committee of Conference on the part of
the House of Representatives and Senate for the purpose of
considering House Bill No. 564, entitled:
"An act amending the act of March 10, 1949 (P.L.30, No.14),
entitled 'An act relating to the public school system, including
certain provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the laws
relating thereto,' REQUIRING SCHOOL DISTRICTS TO REOPEN THEIR
2003-2004 BUDGETS; IMPOSING LIMITATIONS ON CERTAIN UNRESERVED
FUND BALANCES; * * * FURTHER PROVIDING FOR PAYMENTS TO
INTERMEDIATE UNITS, FOR SPECIAL EDUCATION PAYMENTS TO SCHOOL
DISTRICTS AND FOR COMMONWEALTH REIMBURSEMENTS FOR CHARTER
SCHOOLS AND CYBER CHARTER SCHOOLS AND FOR POWERS AND DUTIES OF
THE STATE BOARD OF EDUCATION; ABROGATING REGULATIONS; AND MAKING
APPROPRIATIONS, REPEALS AND AN EDITORIAL CHANGE,"
respectfully submit the following bill as our report:
SAMUEL H. SMITH
JESS M. STAIRS
DWIGHT EVANS
(Committee on the part of the House of Representatives.)
DAVID J. BRIGHTBILL
JAMES J. RHOADES
ROBERT J. MELLOW
(Committee on the part of the Senate.)
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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 background
6 checks of prospective employees; providing for optometric
7 externs; further providing for management information
8 reports, for reports to the Secretary of Education, for
9 withholding of State appropriations, for delinquent taxes and
10 appointment of collector, for power of board of school
11 directors to reopen certain budgets, for referendum or public
12 hearing required prior to construction or lease and for
13 school police officers; providing for attendance at schools
14 for the performing arts; further providing for cost of
15 tuition and maintenance of certain exceptional children in
16 approved institutions and for actual cost of tuition and
17 maintenance of certain exceptional children in chartered
18 schools for the sight and hearing impaired; providing for
19 agreements with institutions of higher education; further
20 providing for firefighter and emergency services training and
21 for educational assistance program; adding provisions
22 relating to character education program; establishing the
23 Pennsylvania Athletic Oversight Committee; further providing
24 for powers of charter schools, for charter school facilities,
25 for causes for nonrenewal or termination of charter, for
26 education empowerment districts, for mandate waiver program,
27 for limitations on education empowerment districts and for
28 election or appointment and term and organization of boards
29 of trustees of community colleges; providing for Community
30 College Nonmandated Capital Restricted Account; further
31 providing for Board of Governors of the State System of
32 Higher Education, for educational improvement tax credit, for
33 small district assistance and for temporary special aid to
34 school districts; providing for basic education funding for
35 2003-2004 school year and for payments on account of Limited
36 English Proficiency programs; and further providing for
37 payments to intermediate units, for special education
38 payments to school districts, for Commonwealth reimbursements
39 for charter schools and cyber charter schools and for
40 Pennsylvania Accountability grants.
41 The General Assembly of the Commonwealth of Pennsylvania
42 hereby enacts as follows:
43 Section 1. Section 111(c) of the act of March 10, 1949
44 (P.L.30, No.14), known as the Public School Code of 1949,
45 amended December 9, 2002 (P.L.1317, No.153), is amended to read:
46 Section 111. Background Checks of Prospective Employes;
47 Conviction of Employes of Certain Offenses.--* * *
48 (c) Where the applicant has not been a resident of this
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1 Commonwealth for at least two (2) years immediately preceding
2 the date of application for employment, administrators shall
3 require the applicant to submit with the application for
4 employment [a report of] a set of fingerprints which may be
5 submitted to the Federal Bureau of Investigation for Federal
6 criminal history record information pursuant to the Federal
7 Bureau of Investigation appropriation of Title II of Public Law
8 92-544, 86 Stat. 1115[, and the department shall be the
9 intermediary for the purposes of this section.] or a copy of
10 such Federal criminal history record. Administrators shall
11 forward the set of fingerprints for the Federal criminal history
12 record to the Department of Education. The Department of
13 Education shall be the intermediary for the purposes of this
14 section. The Department of Education shall return the Federal
15 criminal history record to the applicant. When the applicant
16 provides a copy of the Federal criminal history record, it shall
17 be no more than one (1) year old. Administrators shall maintain
18 a copy of the required information and shall require each
19 applicant to produce a Federal criminal history record that may
20 not be more than one (1) year old at the time of employment. The
21 original Federal criminal history record shall be returned to
22 the applicant.
23 * * *
24 Section 2. The act is amended by adding a section to read:
25 Section 115. Optometric Externs.--(a) Notwithstanding the
26 provisions of section 6 of the act of June 6, 1980 (P.L.197,
27 No.57), known as the "Optometric Practice and Licensure Act," an
28 optometric extern who is performing procedures and tests for the
29 sole purpose of clinical instruction and experience under the
30 direct supervision of a licensed health care professional in
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1 this Commonwealth shall be defined as a student enrolled in an
2 accredited school or college of optometry in the United States.
3 (b) An optometric extern may not independently practice
4 optometry.
5 Section 3. Section 613 of the act, amended or added May 10,
6 2000 (P.L.44, No.16) and June 22, 2001 (P.L.530, No.35), is
7 amended to read:
8 Section 613. Management Information Reports.--(a) For the
9 2000-2001 school year and each school year thereafter, each
10 school district shall report to the Department of Education
11 expenditures of all governmental funds at the school operational
12 unit for:
13 (1) classroom instruction;
14 (2) instructional student support; and
15 (3) facilities and plant management costs.
16 [(b) For the 2001-2002 school year and each school year
17 thereafter, each school district shall report to the Department
18 of Education:
19 (1) Expenditures of all governmental funds at the school
20 operational unit level in middle and high schools for subject
21 matter including math, science, language arts and social
22 studies.
23 (2) Expenditures of all governmental funds at the school
24 operational unit level for each grade level in elementary
25 school.]
26 (c) For the 2001-2002 school year and each school year
27 thereafter, each school district shall report to the Department
28 of Education districtwide expenditures of all governmental funds
29 for:
30 (1) special education noninstructional student support;
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1 (2) professional development; and
2 (3) technology.
3 (d) The Department of Education shall issue specific
4 guidelines for the collection, reporting and submission of the
5 information under this section.
6 (e) As used in this section, a "school operational unit" is
7 defined as any individual school within a district, as reported
8 by the district. A school district is comprised of all the
9 school operational units within the district.
10 (f) Beginning with the 2001-2002 school year and each school
11 year thereafter, the mandatory reporting requirements of this
12 section shall apply, as prescribed by the department, to area
13 vocational-technical schools, intermediate units and charter
14 schools to the extent that funding is available. Area
15 vocational-technical schools, intermediate units and charter
16 schools shall apply for funding in a form and manner prescribed
17 by the department.
18 Section 4. Section 633 of the act, amended December 21, 1998
19 (P.L.1194, No.154), is amended to read:
20 Section 633. Reports to Secretary of Education; Withholding
21 State Appropriations.--It shall be the duty of the Secretary of
22 Education, to require, as part of the annual financial reports
23 of all of the school districts and charter schools, a list of
24 the amount of bonds or other indebtedness that becomes due
25 during the fiscal year, together with the amount paid on each
26 item of indebtedness. In case of failure on the part of any
27 school district or charter school to furnish such report at the
28 required time after the close of the fiscal year, the Secretary
29 of Education may withhold any State appropriation that may
30 become due to any such school district or charter school until
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1 such report covering information regarding the maturities of
2 indebtedness and payments on same during the preceding fiscal
3 year, as required herein, and any other information which he may
4 require of a school district or charter school, has been
5 received. In all cases where the board of directors of any
6 school district fails to pay or to provide for the payment of
7 any indebtedness at date of maturity or date of mandatory
8 redemption or on any sinking fund deposit date, or any interest
9 due on such indebtedness on any interest payment date, or on any
10 sinking fund deposit date in accordance with the schedule under
11 which the bonds were issued, the Secretary of Education shall
12 notify such board of school directors of its obligation and
13 shall withhold out of any State appropriation due such school
14 district an amount equal to the sum of the principal amount
15 maturing or subject to mandatory redemption and interest owing
16 by such school district, or sinking fund deposit due by such
17 school district, and shall pay over the amount so withheld to
18 the bank or other person acting as sinking fund depositary for
19 such bond issue.
20 Section 5. Section 686 of the act is amended by adding a
21 subsection to read:
22 Section 686. Delinquent Taxes; Appointment of Collector;
23 etc.--* * *
24 (d) (1) Each school district may assign some or all of its
25 claims for delinquent school taxes, either absolutely or as
26 collateral security, for an amount to be determined by the
27 school district and under such terms and conditions upon which
28 the school district and the assignee may agree in writing. Upon
29 such an assignment, the following shall apply:
30 (i) The school district or the assignee shall direct the tax
20030H0564B4325 - 7 -
1 claim bureau to record notice of the assignment on the docket.
2 (ii) Assignment shall not be deemed a discharge or
3 satisfaction of the claim or the taxes giving rise to the claim
4 and the lien of the assigned claim and taxes giving rise to the
5 claim shall continue in favor of the assignee.
6 (iii) The assignee shall have and enjoy the same rights,
7 privileges and remedies as were held by the school district with
8 respect to the assigned claim and the tax giving rise to the
9 claim.
10 (iv) An owner of property shall have the same rights and
11 defenses under all laws applicable to the collection and
12 enforcement of tax claims that the owner held against the
13 assignor.
14 (2) A claim assigned pursuant to this subsection may be
15 further assigned, with the subsequent assignee having and
16 enjoying the same rights, privileges and remedies as its
17 assignor had, provided that notice of any subsequent assignment
18 is recorded pursuant to paragraph (1).
19 Section 6. Section 687(j) of the act, added December 23,
20 2003 (P.L.304, No.48), is amended to read:
21 Section 687. Annual Budget; Additional or Increased
22 Appropriations; Transfer of Funds.--* * *
23 (j) Notwithstanding any other provisions of this act, the
24 board of school directors of each school district may reopen its
25 2003-2004 budget or its 2004-2005 budget to reflect any State
26 allocations for fiscal year 2003-2004 or fiscal year 2004-2005
27 provided by the General Assembly through this act.
28 Section 7. Section 701.1 of the act, added June 27, 1973
29 (P.L.75, No.34), is amended to read:
30 Section 701.1. Referendum or Public Hearing Required Prior
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1 to Construction or Lease.--Except where the approval of the
2 electors is obtained to incur indebtedness to finance the
3 construction of a school project, the board of school directors
4 of any school district of the second, third or fourth classes,
5 shall not construct, enter into a contract to construct or enter
6 into a contract to lease a new school building or substantial
7 addition to an existing school building without the consent of
8 the electors obtained by referendum or without holding a public
9 hearing as hereinafter provided. In the event that a new school
10 building or a substantial addition to an existing building is to
11 be constructed or leased, the school board shall, by a majority
12 vote of all its members, authorize a maximum project cost and a
13 maximum building construction cost to be financed by the
14 district or amortized by lease rentals to be paid by the
15 district. Building construction cost shall consist of the cost
16 of all building construction including general construction
17 costs, plumbing, heating, electrical, ventilating and other
18 structural costs, equipment and fixtures and architectural and
19 engineering fees relating thereto, but not including costs for
20 site acquisition and development, rough grading to receive the
21 building, sewage treatment facilities or equivalent capital
22 contributions, and architectural and engineering fees relating
23 thereto. In all cases, a public hearing shall be held not later
24 than thirty (30) days before the school district submits the
25 initial building construction cost estimates to the Department
26 of Education for approval. Notice of the hearing shall be given
27 not later than twenty (20) days before the date of the scheduled
28 hearing. In the event that the maximum building construction
29 cost authorization exceeds the aggregate building expenditure
30 standard hereinafter specified, the aforesaid authorization of
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1 the school board shall be submitted to the electors of the
2 school district for their approval within six (6) months prior
3 to submission of the final building construction cost bids to
4 the Department of Education for approval. Such referendum shall
5 be held in the same manner as provided by law for the approval
6 of the incurring of indebtedness by referendum. The question as
7 submitted shall specify the maximum project cost, the maximum
8 building construction cost and the annual sinking fund charge or
9 lease rental to be incurred by the school district and the
10 portion of such charge or rental expected to be reimbursed by
11 the Commonwealth. If the final building construction cost bids
12 to be submitted to the Department of Education for approval are
13 less than the aggregate building expenditure standard hereafter
14 specified but exceed by eight (8) per cent or more the initial
15 building construction cost estimates submitted to the Department
16 for approval, a second public hearing shall be held before the
17 Department shall give its final approval.
18 The applicable aggregate building expenditure standard shall
19 be a total amount calculated for each building or substantial
20 addition by multiplying the rated pupil capacity under the
21 approved room schedule by the following: two thousand eight
22 hundred dollars ($2,800) for each pupil of rated elementary
23 capacity; four thousand two hundred dollars ($4,200) for each
24 pupil of rated secondary capacity in grades seven, eight and
25 nine and five thousand two hundred dollars ($5,200) for each
26 pupil of rated secondary capacity in grades ten, eleven and
27 twelve and five thousand two hundred dollars ($5,200) for each
28 pupil of rated vocational-technical capacity in grades ten,
29 eleven and twelve to not include the cost of equipment and
30 fixtures in such vocational-technical schools: Provided,
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1 however, That each of the preceding per pupil amounts shall be
2 adjusted by the Department of Education on July 1, 1974; and
3 annually thereafter through July 1, 2003, by multiplying said
4 amounts by the ratio of the composite construction cost index
5 compiled and published by the United States Department of
6 Commerce for the preceding calendar year to such index for the
7 next preceding calendar year[.]; and Further Provided, however,
8 That each of the preceding per pupil amounts shall be adjusted
9 by the Department of Education on July 1, 2004; and annually
10 thereafter by multiplying said amounts by the ratio of the
11 Building Cost Index published by the McGraw-Hill Companies for
12 the preceding calendar year to such index for the next preceding
13 calendar year. Rated elementary pupil capacity or rated
14 secondary pupil capacity for any school building shall be the
15 rated pupil capacity determined on the basis of the method used
16 by the Department for school building reimbursement purposes
17 during the school year 1971-1972.
18 For purposes of this section:
19 (1) "Site acquisition" includes the cost of land and mineral
20 rights, demolition and clearing, rights-of-way and related
21 utility relocations, surveys and soils analysis, and the cost of
22 all fees relating thereto.
23 (2) "Site development" includes excavation, grouting or
24 shoring, special foundations for buildings, access roads to
25 site, utilities on site, extension of utilities to site.
26 (3) "Equipment and fixtures" means property fixed or movable
27 which is incidental and necessary to conduct the educational
28 program, and includes, but is not limited to movable equipment
29 such as desks, chairs, tables, portable physical education
30 equipment, audio-visual equipment and science, homemaking,
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1 industrial art and business equipment and instructional
2 materials and fixtures such as casework, laboratory equipment,
3 kitchen equipment, auditorium seating and any other special
4 fixtures or equipment required to conduct a particular
5 educational program.
6 (4) "Substantial addition" means more than twenty (20) per
7 centum of the area and replacement value of the structure to
8 which the improvement is to be added.
9 Section 8. Section 778 of the act is amended by adding
10 subsections to read:
11 Section 778. School Police Officers.--* * *
12 (a.1) Any school district which employs a school police
13 officer under this section shall report annually to the
14 Department of Education, Office of Safe Schools, the following
15 information regarding school police officers receiving training
16 as required under 53 Pa.C.S. Ch. 21 Subch. D (relating to
17 municipal police education and training):
18 (1) The identity of the school district and the number of
19 school police officers it employs.
20 (2) The municipalities comprising the school district.
21 (3) The date and type of training provided to each school
22 police officer.
23 * * *
24 (b.1) Every school police officer who has been granted
25 powers under subsection (c)(2) or (3) or has been authorized to
26 carry a firearm must, before entering upon the duties of his
27 office, successfully complete training as set forth in 53
28 Pa.C.S. Ch. 21 Subch. D.
29 * * *
30 Section 9. The act is amended by adding a section to read:
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1 Section 1316.1. Attendance at Schools for the Performing
2 Arts.--The board of school directors of school districts of the
3 first class A may permit any non-resident pupil to attend a high
4 school for the performing arts in its district provided there
5 are enrollment vacancies at the school and no other qualified
6 district residents have applied for enrollment and upon such
7 additional terms as it may determine, subject to the provisions
8 of this act. Upon approval of the board of school directors
9 pursuant to section 1608, payments due from a sending district
10 to a receiving district shall be governed by sections 2561 and
11 2562, except that a sending district's liability for payment
12 shall be limited to the tuition charge of the receiving district
13 or its own tuition charge, whichever is less.
14 Section 10. Sections 1376 and 1376.1 of the act, amended
15 December 23, 2003 (P.L.304, No.48), are 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
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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] through the 2003-2004 school year, the school
13 district or charter school payment shall be the greater of forty
14 percent (40%) of the actual audited costs of tuition and
15 maintenance of such child in such school, as determined by the
16 Department of Education, or its "tuition charge per elementary
17 pupil" or its "tuition charge per high school pupil," as
18 calculated pursuant to section 2561, and the Commonwealth shall
19 pay, out of funds appropriated to the department for approved
20 private schools, the balance due for the costs of such child's
21 tuition and maintenance, as determined by the department. For
22 the 2004-2005 school year and each school year thereafter, the
23 school district or charter school payment shall be the greater
24 of forty percent (40%) of the approved tuition rate as
25 established pursuant to subsection (c.3) or (c.5) or the school
26 district or charter school's "tuition charges per elementary
27 pupil" or "tuition charges per secondary pupil" as calculated
28 under section 2561, and the Commonwealth shall pay, out of funds
29 appropriated to the department for approved private schools, the
30 balance of the approved tuition rate due for the cost of such
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1 child's tuition and maintenance. The department will credit the
2 district of residence with average daily membership for such
3 child consistent with the rules of procedure developed in
4 accordance with section 2501. If the residence of such child in
5 a particular school district cannot be determined, the
6 Commonwealth shall pay[, out of moneys appropriated to the
7 department for special education,] the whole cost of tuition and
8 maintenance of such child[.] as established under subsection
9 (c.3) or (c.5).
10 (a.1) For the 2004-2005 school year, the following shall
11 apply:
12 (1) The Department of Education shall determine the payment
13 amount for each approved private school for all students
14 enrolled in an approved private school for the 2003-2004 school
15 year based on the average of:
16 (i) The preliminary budget submitted to the Department of
17 Education by the approved private school for the 2004-2005
18 school year.
19 (ii) The mid-year budget submitted to the Department of
20 Education by the approved private school for the 2003-2004
21 school year.
22 (iii) The audit issued by the Governor's Office of the
23 Budget for the 2002-2003 school year, excluding questioned
24 costs.
25 (2) Where the 2002-2003 audit is not available, the
26 Department of Education shall use the claim form submitted to it
27 by the approved private school for the 2002-2003 school year. In
28 the event that an approved private school has not submitted a
29 claim form for the 2002-2003 school year, the Department of
30 Education shall use the audit or, where the audit is not
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1 available, the claim form for the 2001-2002 school year.
2 (3) For the purposes of determining the payment under
3 paragraph (1) for an approved private school that was not in
4 operation for the 2002-2003 school year, the Department of
5 Education shall utilize the approved private school's
6 preliminary budget for the 2004-2005 school year instead of the
7 audit identified under paragraph (1)(iii).
8 (4) No later than August 10, 2004, the Department of
9 Education shall notify each school district of residence or
10 charter school of a child enrolled in an approved private school
11 of its payment amount under subsection (a).
12 (5) The Department of Education shall pay each approved
13 private school the total amount calculated pursuant to this
14 subsection divided into twelve (12) monthly payments. The
15 Department of Education shall withhold the school district or
16 charter school payment amount calculated under subsection (a)
17 from the amount of any and all State payments made to the school
18 district or charter school. In no event shall the sum of the
19 Commonwealth's share of payments to approved private schools
20 under this subsection exceed the appropriation for approved
21 private schools.
22 (a.2) For the 2005-2006 school year and each school year
23 thereafter, the Department of Education shall determine the
24 payment amount for each approved private school for all students
25 enrolled in an approved private school for the prior school year
26 as follows:
27 (1) (i) Multiply the payment determined for the immediate
28 preceding school year by one hundred and twenty-five percent
29 (125%) of the percentage increase in the appropriation for
30 special education for the fiscal year prior to the fiscal year
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1 in which payments under this subsection are made.
2 (ii) Add the product from subparagraph (i) to the payment
3 determined for the immediate preceding school year.
4 (2) No later than May 10, 2005, and no later than May 10 of
5 each year thereafter, the Department of Education shall notify
6 each school district of residence or charter school of a child
7 enrolled in an approved private school of its payment amount
8 under subsection (a).
9 (3) The Department of Education shall pay each approved
10 private school the total amount calculated pursuant to this
11 subsection divided into twelve (12) monthly payments. The
12 Department of Education shall withhold the school district or
13 charter school payment amount calculated under subsection (a)
14 from the amount of any and all State payments made to the school
15 district or charter school. In no event shall the sum of the
16 Commonwealth's share of payments to approved private schools
17 under this subsection exceed the appropriation for approved
18 private schools.
19 (b) When any person less than school entry age or more than
20 twenty-one (21) years of age and resident in this Commonwealth,
21 who is blind or deaf, or has cerebral palsy and/or has
22 neurological impairment and/or has muscular dystrophy, or has
23 autism/pervasive developmental delay, and is enrolled, with the
24 approval of the Department of Education, as a pupil in an
25 approved private school approved by the Department of Education,
26 the Commonwealth shall pay to such school[, out of moneys
27 appropriated to the department for special education, the actual
28 audited cost of tuition and maintenance of such person, as
29 determined by the Department of Education, subject to review and
30 approval in accordance with standards and regulations
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1 promulgated by the State Board of Education in accordance with
2 subsection (b.1)] the approved tuition rate for such child's
3 tuition and maintenance, and in addition, in the case of any
4 child less than school entry age, who is blind, the cost, as
5 determined by the Department of Education of instructing the
6 parent of such blind child in caring for such child.
7 [(b.1) For the 2004-2005 school year and each school year
8 thereafter, an approved private school shall submit to the
9 Department of Education such information as the department may
10 reasonably require to determine its budgeted costs for the
11 upcoming school year. Based upon this information and the most
12 recent settled audit, the Department of Education shall develop
13 an interim reimbursement rate for the approved private school.
14 The Department of Education shall provide the approved private
15 school with monthly payments in advance of the final cost
16 settlement as provided for in subsection (c.2). The Department
17 of Education shall adopt final reimbursement rates based on the
18 final cost settlement. The Department of Education may withhold
19 a portion of such payments not exceeding five percent (5%) of
20 such payments, pending final cost settlement. In no event shall
21 either the payments made in advance of the final cost settlement
22 or final reimbursements based on the final cost settlement made
23 by the Department of Education exceed the appropriation
24 available for approved private schools.]
25 (c.1) Any funds remaining from the appropriation line items
26 "for special education - approved private schools" or for
27 Pennsylvania Charter Schools for the Deaf and Blind from the
28 general appropriations acts for fiscal years 1978-1979 and each
29 fiscal year thereafter shall be transferred by the State
30 Treasurer into a restricted account (continuing appropriation)
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1 for audit resolution which is hereby established. The Department
2 of Education shall also deposit into this restricted account any
3 funds returned to or recovered by the department from approved
4 private schools or chartered schools for overpayments during
5 fiscal years 1978-1979 and each fiscal year thereafter. The
6 funds in the restricted account are hereby appropriated upon
7 approval of the Governor to the Department of Education for
8 payments to approved private schools for audit resolutions for
9 fiscal years 1978-1979 [and each fiscal year thereafter. Funds
10 in this restricted account shall not be subject to the
11 limitations in subsection (b.1) which prohibit advance payments
12 and final reimbursement from exceeding the appropriation
13 available for approved private schools] through 2003-2004.
14 During the 1995-1996 fiscal year and during each fiscal year
15 thereafter, the Department of Education shall review the
16 activity in the restricted account and may recommend that the
17 Governor authorize the lapsing into the General Fund of any
18 funds that are estimated not to be needed for audit resolution.
19 (c.2) Beginning with payments made in the 2004-2005 school
20 year and each school year thereafter, the Department of
21 Education shall establish procedures and audit standards to
22 govern the scope of reportable costs [and the methods used to
23 examine and determine allowability of costs. Cost reports], the
24 format of the audit, and the standards and methods used by the
25 Commonwealth to audit attendance. Each approved private school
26 shall submit a cost report of its expenditures for the prior
27 fiscal year to the Department of Education no later than August
28 1, 2004, and no later than August 1 of each year thereafter.
29 Audit reports of expenditures for the prior fiscal year prepared
30 by an independent certified public accountant shall be prepared
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1 in accordance with the established procedures and audit
2 standards and submitted by the approved private school to the
3 Department of Education [after the conclusion of the school
4 year. The Department of Education shall process these cost
5 reports and settle any outstanding payments due to or from the
6 approved private school within one (1) year of the cost report
7 submission. If the cost reports are subject to any appeals or
8 postsettlement resolution, the Department of Education shall
9 have an additional three (3) months to settle.] by November 1,
10 2005, and no later than November 1 of each year thereafter. For
11 payments in the 2004-2005 school year, the Department of
12 Education shall issue guidelines for budget and audit standards
13 no later than October 15, 2004. For payments in the 2005-2006
14 school year and each school year thereafter, the Department of
15 Education shall annually issue guidelines for budget and audit
16 standards at least three months prior to the date that the
17 approved private schools must submit their budget information
18 pursuant to subsection (c.4). These guidelines shall include
19 provisions for audit methodology and a definition of allowable
20 administrative expenditures. Allowable administrative
21 expenditures shall not exceed ten percent (10%) of each approved
22 private school's budget. Each audit shall identify expenditures
23 and include all spending on students for whom payment is made
24 pursuant to subsection (a) or (b) and shall identify the source
25 and amount of all revenue used to educate students for whom
26 payment is made pursuant to subsection (a) or (b). Work papers
27 pertaining to the audit of an approved private school by an
28 independent certified public accountant shall be made available
29 to the Department of Education upon request. Audits of cost
30 reports submitted for school years prior to the 2004-2005 school
20030H0564B4325 - 20 -
1 year shall be completed in a manner consistent with prior audit
2 practices. An approved private school may submit an audit for
3 the 2003-2004 school year prepared by an independent certified
4 public accountant provided the following have occurred:
5 (1) The Department of Education has failed to process and
6 settle the cost reports within twelve (12) months from
7 submission by the approved private school.
8 (2) The Department of Education has failed to settle any
9 appeals or postsettlement resolution within fifteen (15) months
10 from submission by the approved private school.
11 (3) The approved private school has responded to reasonable
12 requests for information and documents by the Department of
13 Education.
14 Upon receipt of the independent audit for the 2003-2004 school
15 year, the Department of Education shall have three (3) months to
16 review the audit and settle any outstanding payments due to or
17 from the approved private school.
18 (c.3) For payments made during the 2004-2005 school year,
19 the Department of Education shall establish an approved tuition
20 rate for each approved private school by dividing the amount
21 calculated under subsection (a.1) by the full-time equivalent
22 enrollment for the approved private school for the 2003-2004
23 school year. This calculation shall be adjusted for residential
24 and non-residential students. The approved tuition rate
25 multiplied by the full-time equivalent enrollment shall not
26 exceed the amount calculated under subsection (a.1).
27 (c.4) Beginning August 15, 2004, and no later than August 15
28 of each year thereafter, each approved private school shall
29 submit budget information for the current school year on forms
30 and in a manner determined by the Department of Education. The
20030H0564B4325 - 21 -
1 budget information shall include a proposed tuition rate or
2 rates and projected full-time equivalent enrollment for the
3 current year. An approved private school may submit separate
4 proposed tuition rates for up to three levels of services and
5 for day and residential students, pursuant to the guidelines
6 established under subsection (c.7).
7 (c.5) For payments made during the 2005-2006 school year and
8 each school year thereafter, beginning January 15, 2005, and no
9 later than January 15 of each year thereafter, the Department of
10 Education shall establish an approved tuition rate or rates and
11 full-time equivalent enrollment for each approved private school
12 for the current school year. Where an approved private school
13 has submitted one tuition rate, the approved tuition rate shall
14 be determined by dividing the amount calculated under subsection
15 (a.2) by the full-time equivalent enrollment for the approved
16 private school for the prior school year. Where an approved
17 private school has submitted more than one tuition rate, the sum
18 of the products of each approved tuition rate and corresponding
19 full-time equivalent enrollment for the approved private school
20 for the prior school year shall equal the amount calculated
21 under subsection (a.2). An approved private school may enroll
22 students in excess of the approved full-time equivalent
23 enrollment. Where an approved private school enrolls students in
24 excess of the approved full-time equivalent enrollment, it must
25 show a corresponding decrease in its approved tuition rate.
26 (c.6) No later than May 1, 2005, and May 1 of each school
27 year thereafter, the department shall annually publish a report
28 on the department's publicly accessible World Wide Web site that
29 shall include, but not be limited to:
30 (1) The approved tuition rate or rates for each approved
20030H0564B4325 - 22 -
1 private school for the current school year.
2 (2) A description of the exceptionalities each approved
3 private school is approved to serve.
4 (3) A description of all programs and services offered by
5 each approved private school.
6 (c.7) No later than November 1, 2004, the Department of
7 Education shall issue guidelines establishing the levels of
8 services to assist each approved private school in determining
9 its proposed tuition rate or rates. The guidelines shall allow
10 an approved private school to establish approved tuition rates
11 for up to three levels of services and for day and residential
12 students.
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) [As used in this section, "independent] The following
21 words and phrases as used in this section shall have the
22 meanings given to them in this subsection unless the context
23 clearly indicates otherwise:
24 "Approved full-time equivalent enrollment" means the full-
25 time equivalent enrollment set by the Department of Education
26 pursuant to the provisions of subsection (c.3) or (c.5).
27 "Approved tuition rate" means the final tuition rate set by
28 the Department of Education pursuant to the provisions of
29 subsection (c.3) or (c.5).
30 "Audit" for the purpose of subsection (a.1), means the fiscal
20030H0564B4325 - 23 -
1 audit issued by the Governor's Office of the Budget, excluding
2 questioned costs.
3 "Claim form" for the purpose of subsection (a.1), means the
4 form that each approved private school submitted following the
5 end of the fiscal year showing the final costs claimed for the
6 fiscal year.
7 "Current school year" means the year in which payment is
8 being made.
9 "Full-time equivalent enrollment" means the number of
10 students enrolled in an approved private school pursuant to
11 subsection (a) or (b).
12 "Independent certified public accountant" means a member of
13 the American Institute of Certified Public Accountants that has
14 a minimum of five (5) years' verifiable experience in performing
15 audits of government funds for nonprofit organizations with a
16 comparable or larger annual budget.
17 "Mid-year budget" for the purpose of subsection (a.1), means
18 the adjusted budget for the 2003-2004 school year submitted by
19 each approved private school in January 2004.
20 "Preliminary budget" for the purpose of subsection (a.1),
21 means the budget for the 2004-2005 school year submitted by each
22 approved private school in June 2004.
23 "Prior school year" means the year for which payment is made
24 during the current year.
25 "Proposed tuition rate" means the amount submitted by each
26 approved private school to the Department of Education to be
27 used in establishing the cost that the approved private school
28 incurred to provide instructional and residential services for
29 each full-time equivalent student. An approved private school
30 may submit information to establish costs for up to three (3)
20030H0564B4325 - 24 -
1 levels of services and for day and residential students.
2 Section 1376.1. Actual Cost of Tuition and Maintenance of
3 Certain Exceptional Children in the Four Chartered Schools for
4 Education of the Deaf and the Blind.--(a) The following term,
5 whenever used or referred to in this section, shall have the
6 following meaning. "Chartered school" shall mean any of the four
7 (4) chartered schools for the education of the deaf or the
8 blind: the Pennsylvania School for the Deaf; the Overbrook
9 School for the Blind; the Western Pennsylvania School for Blind
10 Children; and the Western Pennsylvania School for the Deaf.
11 (b) When any child of school age resident in this
12 Commonwealth, who is blind or deaf, is enrolled with the
13 approval of the Department of Education as a pupil in any of the
14 four (4) chartered schools in accordance with standards and
15 regulations promulgated by the State Board of Education, the
16 school district in which such child is resident shall pay the
17 greater of either twenty percent (20%) of the actual cost of
18 tuition and maintenance of such child in such institution, as
19 determined by the [Department of Education] department; or its
20 "tuition charge per elementary pupil" or its "tuition charge per
21 high school pupil," and the Commonwealth shall pay, out of funds
22 appropriated to the department for special education, the
23 balance due for the costs of such child's tuition and
24 maintenance, as determined by the department. For the school
25 years 1989-90, 1990-91 and 1991-92, the school district payment
26 shall be no greater than forty percent (40%) of the actual
27 audited costs of tuition and maintenance of such child in such
28 school. For the 1992-1993 school year [and each school year
29 thereafter] through the 2003-2004 school year, the school
30 district payment shall be the greater of forty percent (40%) of
20030H0564B4325 - 25 -
1 the actual audited costs of tuition and maintenance of such
2 child in such school, as determined by the [Department of
3 Education] department, or its "tuition charge per elementary
4 pupil" or its "tuition charge per high school pupil," and the
5 Commonwealth shall pay out of funds appropriated to the
6 department for chartered schools the balance due for the costs
7 of such child's tuition and maintenance, as determined by the
8 department. For the 2004-2005 school year and each school year
9 thereafter, the school district or charter school payment shall
10 be the greater of forty percent (40%) of the approved tuition
11 rate established in subsection (f.1) or (f.3) or the school
12 district's or charter school's "tuition charges per elementary
13 pupil" or "tuition charges per secondary pupil" as calculated
14 under section 2561; and the Commonwealth shall pay, out of funds
15 appropriated to the department for chartered schools, the
16 balance of the approved tuition rate due for such child's
17 tuition and maintenance. The department will credit the district
18 of residence with average daily membership for such child
19 consistent with the rules of procedure developed in accordance
20 with section 2501. If the residence of such child in a
21 particular school district cannot be determined, the
22 Commonwealth shall pay[, out of moneys appropriated to the
23 department for special education,] the whole cost of tuition and
24 maintenance of such child as established under subsection (f.1)
25 or (f.3).
26 (b.1) For the 2004-2005 school year, the following apply:
27 (1) The department shall determine the payment amount for
28 each chartered school for all students enrolled in a chartered
29 school for the 2003-2004 school year based on the average of:
30 (i) The preliminary budget submitted to the department by
20030H0564B4325 - 26 -
1 the chartered school for the 2004-2005 school year.
2 (ii) The mid-year budget submitted to the department by the
3 chartered school for the 2003-2004 school year.
4 (iii) The audit issued by the Governor's Office of the
5 Budget for the 2002-2003 school year, excluding questioned
6 costs. If the 2002-2003 audit is not available, the department
7 shall use the claim form submitted by the chartered school for
8 the 2002-2003 school year.
9 (2) No later than August 10, 2004, the department shall
10 notify each school district of residence or charter school of a
11 child enrolled in a chartered school of its payment amount under
12 subsection (b).
13 (3) The department shall pay each chartered school the total
14 amount calculated pursuant to this subsection divided into
15 twelve (12) monthly payments. The department shall withhold the
16 school district or charter school payment amount calculated
17 under subsection (b) from the amount of State payments made to
18 the school district or charter school. In no event shall the sum
19 of the Commonwealth's share of payments to chartered schools
20 under this subsection exceed the appropriation for chartered
21 schools.
22 (b.2) Payments are as follows:
23 (1) For the 2005-2006 school year and each school year
24 thereafter, the department shall determine the payment amount
25 for each chartered school for all students enrolled in a
26 chartered school for the prior school year as follows:
27 (i) Multiply the payment determined for the immediate
28 preceding school year by one hundred and twenty-five percent
29 (125%) of the percentage increase in the appropriation for
30 special education for the fiscal year prior to the fiscal year
20030H0564B4325 - 27 -
1 in which payments under this subsection are made.
2 (ii) Add the product under subparagraph (i) to the payment
3 determined for the immediately preceding school year.
4 (2) No later than May 10, 2005, and no later than May 10 of
5 each school year thereafter, the department shall notify each
6 school district of residence or charter school of a child
7 enrolled in a chartered school of its payment amount under
8 subsection (b).
9 (3) The department shall pay each chartered school the total
10 amount calculated pursuant to this subsection divided into
11 twelve (12) monthly payments. The department shall withhold the
12 school district or charter school payment amount calculated
13 under subsection (b) from the amount of any and all State
14 payments made to the school district or charter school. In no
15 event shall the sum of the Commonwealth's share of payments to
16 chartered schools under this subsection exceed the appropriation
17 for chartered schools.
18 (c) When any person less than school age resident in this
19 Commonwealth who is blind or deaf is enrolled, with the approval
20 of the [Department of Education] department, as a residential
21 pupil in any of the four (4) chartered schools, the Commonwealth
22 shall pay to the school[, out of moneys appropriated to the
23 department for special education, the actual cost of tuition and
24 maintenance of such person, as determined by the Department of
25 Education, subject to review and approval in accordance with
26 standards and regulations promulgated by the State Board of
27 Education in accordance with subsection (e)] the approved
28 tuition rate for such child's tuition and maintenance, and in
29 addition, in the case of any child less than school age, who is
30 blind, the cost, as determined by the [Department of Education]
20030H0564B4325 - 28 -
1 department of instructing the parent of such blind child in
2 caring for such child.
3 (d) None of the chartered schools receiving payment in
4 accordance with this section shall impose any charge on the
5 student and/or parents who are approved reimbursable residents
6 for a program of instruction and maintenance appropriate to the
7 child's needs; except that charges for programs not part of the
8 normal school year may be made.
9 [(e) For the 2004-2005 school year and each school year
10 thereafter, a chartered school shall submit to the Department of
11 Education such information as the Department of Education may
12 reasonably require to determine its budgeted costs for the
13 upcoming school year. Based upon this information and the most
14 recent settled audit, the Department of Education shall develop
15 an interim reimbursement rate for the chartered school. The
16 Department of Education shall provide the chartered school with
17 monthly payments in advance of the final cost settlement as
18 provided for in subsection (f). The Department of Education
19 shall adopt final reimbursement rates based on the final cost
20 settlement. The Department of Education may withhold a portion
21 of such payments not exceeding five percent (5%) of such
22 payments, pending final cost settlement. In no event shall
23 either the payments made in advance of the final cost settlement
24 or final reimbursements based on the final cost settlement made
25 by the Department of Education exceed the appropriation
26 available for chartered schools.]
27 (f) Beginning with payments made in the 2004-2005 school
28 year and each school year thereafter, the [Department of
29 Education] department shall establish procedures and audit
30 standards to govern the scope of reportable costs [and the
20030H0564B4325 - 29 -
1 methods used to examine and determine allowability of costs.
2 Cost reports], the format of the audit and the standards and
3 methods used by the Commonwealth to audit attendance. Each
4 chartered school shall submit a cost report of its expenditures
5 for the prior fiscal year to the department no later than August
6 1, 2004, and each August 1 thereafter. Audit reports of
7 expenditures for the prior fiscal year prepared by an
8 independent certified public accountant shall be prepared in
9 accordance with established procedures and audit standards and
10 submitted by the chartered school to the [Department of
11 Education after the conclusion of the school year. The
12 Department of Education shall process these cost reports and
13 settle any outstanding payments due to or from the chartered
14 school within one (1) year of the cost report submission. If the
15 cost reports are subject to any appeals or postsettlement
16 resolution, the Department of Education shall have an additional
17 three (3) months to settle.] department by November 1, 2005, and
18 no later than November 1 of each year thereafter. For payments
19 in the 2004-2005 school year, the department shall issue
20 guidelines for budget and audit standards no later than October
21 15, 2004. For payments in the 2005-2006 school year and each
22 school year thereafter, the department shall annually issue
23 guidelines for budget and audit standards at least three months
24 prior to the date that the chartered schools must submit their
25 budget information pursuant to subsection (f.2). The guidelines
26 shall include provisions for audit methodology and a definition
27 of allowable administrative expenditures. Allowable
28 administrative expenditures shall not exceed ten percent (10%)
29 of each chartered school's budget. Each audit shall identify
30 expenditures, shall include all spending on students for whom
20030H0564B4325 - 30 -
1 payment is made pursuant to subsection (b) or (c) and shall
2 identify the source and amount of all revenue used to educate
3 students for whom payment is made pursuant to subsection (b) or
4 (c). Work papers pertaining to the audit of a chartered school
5 by an independent certified public accountant shall be made
6 available to the department upon request. Audits of cost reports
7 submitted for school years prior to the 2004-2005 school year
8 shall be completed in a manner consistent with prior audit
9 practices. A chartered school may submit an audit for the 2003-
10 2004 school year prepared by an independent certified public
11 accountant provided the following have occurred:
12 (1) The [Department of Education] department has failed to
13 process and settle the cost reports within twelve (12) months
14 from submission by the chartered school.
15 (2) The [Department of Education] department has failed to
16 settle any appeals or postsettlement resolution within fifteen
17 (15) months from submission by the chartered school.
18 (3) The chartered school has responded to reasonable
19 requests for information and documents by the [Department of
20 Education] department.
21 Upon receipt of the independent audit for the 2003-2004 school
22 year, the [Department of Education] department shall have three
23 (3) months to review the audit and settle any outstanding
24 payments due to or from the chartered school.
25 (f.1) For payments made during the 2004-2005 school year,
26 the department shall establish an approved tuition rate for each
27 chartered school by dividing the amount calculated under
28 subsection (b.1) by the full-time equivalent enrollment for the
29 chartered school for the 2003-2004 school year. This calculation
30 shall be adjusted for residential and non-residential students.
20030H0564B4325 - 31 -
1 The approved tuition rate multiplied by the full-time equivalent
2 enrollment shall not exceed the amount calculated under
3 subsection (b.1).
4 (f.2) Beginning August 15, 2004, and no later than August 15
5 of each year thereafter, each chartered school shall submit
6 budget information for the current school year on forms and in a
7 manner determined by the [Department of Education] department.
8 The budget information shall include a proposed tuition rate and
9 projected full-time equivalent enrollment for the current year.
10 (f.3) For payments made during the 2005-2006 school year and
11 each school year thereafter, beginning January 15, 2005, and no
12 later than January 15 of each year thereafter, the department
13 shall establish an approved tuition rate and full-time
14 equivalent enrollment for each chartered school for the current
15 school year. The approved tuition rate shall be determined by
16 dividing the amount calculated under subsection (b.2) by the
17 full-time equivalent enrollment for the chartered school for the
18 prior school year. This calculation shall be adjusted for
19 residential and non-residential students. A chartered school may
20 enroll students in excess of the approved full-time equivalent
21 enrollment. Where a chartered school enrolls students in excess
22 of the approved full-time equivalent enrollment, it must show a
23 corresponding decrease in its approved tuition rate.
24 (f.4) No later than May 1, 2005, and May 1 of each school
25 year thereafter, the department shall annually issue a report
26 for publication on the department's publicly accessible World
27 Wide Web site that shall include, but not be limited to:
28 (1) The approved tuition rate for each chartered school for
29 the current school year.
30 (2) A description of the exceptionalities each chartered
20030H0564B4325 - 32 -
1 school is approved to serve.
2 (3) A description of all programs and services offered by
3 each chartered school.
4 [(g) As used in this section, "independent]
5 (g) The following words and phrases shall have the meanings
6 given to them in this subsection unless the context clearly
7 indicates otherwise:
8 "Approved full-time equivalent enrollment" means the full-
9 time equivalent enrollment set by the Department of Education
10 pursuant to the provisions of subsection (f.3)
11 "Approved tuition rate" means the final tuition rate set by
12 the Department of Education pursuant to the provisions of
13 subsections (f.1) and (f.3).
14 "Audit" for the purposes of subsection (b.1), means the
15 fiscal audit issued by the Governor's Office of the Budget,
16 excluding questioned costs.
17 "Claim form" for the purposes of subsection (b.1), means the
18 form that each chartered school submitted following the end of
19 the fiscal year showing the final costs claimed for the fiscal
20 year.
21 "Current school year" means the year in which payment is
22 being made.
23 "Full-time equivalent enrollment" means the number of
24 students enrolled in a chartered school pursuant to subsection
25 (b) or (c).
26 "Independent certified public accountant" means a member of
27 the American Institute of Certified Public Accountants that has
28 a minimum of five (5) years' verifiable experience in performing
29 audits of government funds for nonprofit organizations with a
30 comparable or larger annual budget.
20030H0564B4325 - 33 -
1 "Mid-year budget" for the purposes of subsection (b.1), means
2 the adjusted budget for the 2003-2004 school year submitted by
3 each chartered school in January 2004.
4 "Preliminary budget" for the purposes of subsection (b.1),
5 means the budget for the 2004-2005 school year submitted by each
6 chartered school in June 2004.
7 "Prior school year" means the year for which payment is made
8 during the current year.
9 "Proposed tuition rate" means the amount submitted by each
10 chartered school to the Department of Education to be used in
11 establishing the cost that the chartered school incurred to
12 provide instructional and residential services for each full-
13 time equivalent student.
14 Section 11. The act is amended by adding a section to read:
15 Section 1525. Agreements with Institutions of Higher
16 Education.--Notwithstanding any other provision of law to the
17 contrary, a school district may enter into an agreement with one
18 or more institutions of higher education approved to operate in
19 this Commonwealth in order to allow resident students to attend
20 such institutions of higher education while the resident
21 students are enrolled in the school district. The agreement may
22 be structured so that high school students may receive credits
23 toward completion of courses at the school district and at
24 institutions of higher education approved to operate in this
25 Commonwealth.
26 Section 12. Section 1550 of the act, added December 23, 2003
27 (P.L.304, No.48), is amended to read:
28 Section 1550. Firefighter and Emergency Service Training.--
29 (a) Beginning with the 2003-2004 school year and each school
30 year thereafter, a school district may offer firefighter and
20030H0564B4325 - 34 -
1 emergency service training as credit-earning courses to students
2 of the age of sixteen (16) years or older. Such courses may
3 include:
4 (1) Training as a Firefighter I from the National Board on
5 Fire Service Professional Qualifications.
6 (2) Training as an emergency medical technician [by the
7 Department of Health under] pursuant to the act of July 3, 1985
8 (P.L.164, No.45), known as the "Emergency Medical Services Act."
9 (b) A school district that offers firefighter and emergency
10 service training as credit-earning courses shall provide
11 transportation to and supervision during any firefighter and
12 emergency service training program that takes place off school
13 grounds. Supervision of training shall be conducted as a
14 cooperative education program in accordance with the provisions
15 of 22 Pa. Code § 11.28 (relating to out-of-school programs).
16 Section 13. The definition of "eligible school entity" in
17 section 1501-C of the act, amended December 23, 2003 (P.L.304,
18 No.48), is amended to read:
19 Section 1501-C. 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 * * *
24 "Eligible school entity." For the purposes of the
25 Educational Assistance Program operated pursuant to sections
26 1502-C and 1512-C, a school entity with one or more schools
27 identified by the Department of Education as having failed to
28 meet one or more academic performance targets in the 2002-2003
29 school year.
30 * * *
20030H0564B4325 - 35 -
1 Section 14. Section 1512-C(g) of the act, added December 23,
2 2003 (P.L.304, No.48), is amended and the section is amended by
3 adding a subsection to read:
4 Section 1512-C. Educational Assistance Program.
5 * * *
6 (g) Educational assistance funding.--
7 (1) During the 2003-2004 and 2004-2005 school years, the
8 department shall provide each eligible school entity with
9 educational assistance funding calculated by:
10 (i) Dividing the number of Pennsylvania System of
11 School Assessment tests administered in the eligible
12 school entity on which students scored below proficient
13 in reading or mathematics by the total number of
14 Pennsylvania System of School Assessment tests
15 administered in the eligible school entity in reading and
16 mathematics during the [immediate preceding] 2002-2003
17 school year.
18 (ii) Multiplying the quotient from subparagraph (i)
19 by the average daily membership of the eligible school
20 entity during the [immediate preceding] 2002-2003 school
21 year.
22 (iii) Multiplying the product from subparagraph (ii)
23 by the dollar value of funds appropriated to the
24 Department of Education for the Educational Assistance
25 Program.
26 (iv) Dividing the product from subparagraph (iii) by
27 the sum of the products of subparagraph (ii) for all
28 eligible school entities that qualify for grant funds
29 under this subsection.
30 (2) The amount of educational assistance funding
20030H0564B4325 - 36 -
1 provided under this article shall be limited to funds
2 appropriated for this purpose.
3 (h.1) Redistribution of funds.--For the 2004-2005 school
4 year, an eligible school entity that chooses not to receive
5 educational assistance funding under subsection (g) shall
6 forfeit the right to such funds. Such funds shall then be
7 distributed on a pro rata basis among all other eligible school
8 entities choosing to receive educational assistance funding
9 under subsection (g).
10 * * *
11 Section 15. The act is amended by adding an article to read:
12 ARTICLE XV-E
13 CHARACTER EDUCATION PROGRAM
14 Section 1501-E. Definitions.
15 The following words and phrases when used in this article
16 shall have the meanings given to them in this section unless the
17 context clearly indicates otherwise:
18 "Character education." A course of instruction designed to
19 educate and assist students in developing basic civic values and
20 character traits, a service ethic and community outreach and
21 thus to improve the school environment and student achievement
22 and learning.
23 "Character education program" or "program." A program
24 designed and implemented by a school district to provide a
25 course of character education to students in that school
26 district. This term includes, but is not limited to:
27 (1) Professional education for professional educators
28 for the delivery of character education.
29 (2) Participation in professional education programs by
30 members of the Character Education Advisory Group.
20030H0564B4325 - 37 -
1 "Department." The Department of Education of the
2 Commonwealth.
3 "Grant program." The Character Education Grant Program
4 established by section 1504-E.
5 "Professional educator." An individual who holds a
6 Pennsylvania teacher, educational specialist or administrative
7 certification or letter of eligibility.
8 "Secretary." The Secretary of Education of the Commonwealth.
9 Section 1502-E. Character education program.
10 (a) Authorization.--The board of school directors of a
11 school district may establish and implement a character
12 education program in its schools.
13 (b) Curriculum contents.--The program may include and teach
14 the following basic civil values and character traits:
15 (1) Trustworthiness, including honesty, integrity,
16 reliability and loyalty.
17 (2) Respect, including regard for others, tolerance and
18 courtesy.
19 (3) Responsibility, including hard work, economic self-
20 reliance, accountability, diligence, perseverance and self-
21 control.
22 (4) Fairness, including justice, consequences of bad
23 behavior, principles of nondiscrimination and freedom from
24 prejudice.
25 (5) Caring, including kindness, empathy, compassion,
26 consideration, generosity and charity.
27 (6) Citizenship, including love of country, concern for
28 the common good, respect for authority and the law and
29 community mindedness.
30 (c) Additional elements.--The program may also include and
20030H0564B4325 - 38 -
1 teach the importance of a service ethic and community outreach.
2 (d) Character education advisory group.--
3 (1) If a board of school directors elects to establish
4 the program, the board of school directors shall develop the
5 program in consultation with a character education advisory
6 group. The board of directors of a school district shall
7 appoint the members of the character education advisory
8 group.
9 (2) A character education advisory group shall consult
10 with and advise the board of school directors in the
11 development of the program. The members of the character
12 education advisory group shall elect a chairperson of the
13 group.
14 (3) The board of school directors shall appoint to the
15 character education advisory group no less than two
16 representatives from each of the following groups:
17 (i) Parents and legal guardians of students in the
18 school district.
19 (ii) Teachers and administrators employed by the
20 school district.
21 (iii) Other members of the community where the
22 school district is located, including social, cultural,
23 business and religious leaders.
24 (4) The board of school directors shall:
25 (i) Cooperate and consult with the character
26 education advisory group.
27 (ii) Provide assistance and relevant materials to
28 the character education advisory group.
29 (5) (i) The character education advisory group shall
30 consult with and advise the board of school directors
20030H0564B4325 - 39 -
1 until such time that the program is fully developed and
2 deemed completed.
3 (ii) The board of school directors shall have the
4 sole authority to determine the completion of the
5 program, and may elect to continue the duration of the
6 character education advisory group for up to two
7 additional years for the purpose of receiving
8 consultation and advice from the character education
9 advisory group regarding the school district's
10 implementation of the program.
11 (e) Integration of concepts into total curriculum.--The
12 program shall be integrated into the school procedures and
13 environment and structured to instruct primarily through
14 example. Classroom instruction may also be used to supplement
15 the program.
16 Section 1503-E. Department duties and powers.
17 The department shall:
18 (1) Establish criteria and guidelines for the
19 establishment and implementation of programs that are
20 consistent with this article. These guidelines shall also
21 include methods of evaluating the programs and curricula.
22 (2) Provide resources and technical assistance to boards
23 of directors of school districts regarding the establishment
24 and implementation of successful programs, upon the request
25 of the board of directors of the school district.
26 (3) Identify and analyze effective programs and
27 practices and related professional development for
28 professional educators and provide such information to a
29 school district upon request of the board of directors of the
30 school district.
20030H0564B4325 - 40 -
1 (4) Collect and disseminate among school districts
2 information regarding programs and practices and potential
3 support sources, including character education programs that
4 have been successfully established and implemented in other
5 states.
6 (5) Provide resources and technical assistance to boards
7 of school directors of school districts that support the
8 professional development of professional educators in the
9 establishment and implementation of the program.
10 (6) Collect and disseminate among school districts
11 information regarding effective professional education for
12 professional educators regarding the establishment and
13 implementation of the program.
14 (7) Seek, apply for and accept grants or contributions
15 of funds from any public or private source, including the
16 acceptance of Federal funds appropriated by the General
17 Assembly for the purposes of this article.
18 (8) To the extent that funds are available, establish
19 and award grants under the grant program to assist school
20 districts in establishing and implementing programs.
21 (9) Maintain a list of school districts that have
22 established and implemented the program pursuant to this
23 article.
24 (10) Prepare and submit an annual report to the
25 Education Committee of the Senate and the Education Committee
26 of the House of Representatives regarding the administration
27 and operation of programs and grants awarded under the grant
28 program. The report shall include:
29 (i) A summary of the guidelines and criteria
30 established by the department and the establishment and
20030H0564B4325 - 41 -
1 operation of the grant program.
2 (ii) A listing of the sources of funding sought by
3 the department for use in the grant program.
4 (iii) A listing of the number of school districts
5 that established and implemented programs.
6 (iv) A description of each school district's program
7 and the integration into the curriculum.
8 (v) A description of measures utilized by school
9 districts to provide parent, professional educator and
10 community involvement.
11 Section 1504-E. Character Education Grant Program.
12 (a) Establishment.--There is hereby established in the
13 department the Character Education Grant Program for the purpose
14 of funding the establishment and implementation of a program by
15 a school district.
16 (b) Eligibility.--A school district, that establishes and
17 implements the program in compliance with the requirements
18 established under section 1502-E and with department criteria
19 and guidelines established under section 1503-E, may apply to
20 the department for a grant. Grants shall be awarded to eligible
21 school districts from funds appropriated and funds received by
22 the department for this purpose.
23 (c) Permitted uses.--The grant shall be used by a school
24 district to fund the establishment and implementation of the
25 program.
26 (d) Adoption of application procedures.--The secretary shall
27 adopt such procedures, rules and form as may be necessary to
28 implement this grant program by regulation.
29 (e) Application forms.--Applications shall be made to the
30 department in such form and at such time as the secretary may
20030H0564B4325 - 42 -
1 prescribe by regulation.
2 (f) Other funding sources.--Funds received under the grant
3 program may be used in conjunction with funds received from any
4 other public or private source.
5 Section 1505-E. Prohibited instruction.
6 Nothing in this article shall be construed to authorize a
7 board of school directors of a school district to establish and
8 implement the program in such a manner that it instructs,
9 proselytizes or indoctrinates students in a specific religious
10 or political belief.
11 Section 1506-E. Local control.
12 Nothing in this article shall be construed to require a board
13 of school directors of a school district to establish and
14 implement the program or to apply for any grant from the
15 Commonwealth or any other source for the purposes of funding the
16 establishment or implementation of the program.
17 Section 16. The act is amended by adding a section to read:
18 Section 1605-A. Pennsylvania Athletic Oversight Committee.--
19 (a) The Pennsylvania Athletic Oversight Committee is hereby
20 established.
21 (b) The committee shall have six voting members, who shall
22 serve at the pleasure of the appointing authority and be
23 appointed as follows:
24 (1) Three members of the Senate, of whom two shall be
25 appointed by the President pro tempore of the Senate and one
26 shall be appointed by the Minority Leader of the Senate. To the
27 greatest extent possible, appointees should have some experience
28 in interscholastic athletics or shall be parents of students
29 involved in interscholastic athletics.
30 (2) Three members of the House of Representatives, of whom
20030H0564B4325 - 43 -
1 two shall be appointed by the Speaker of the House of
2 Representatives and one shall be appointed by the Minority
3 Leader of the House of Representatives. To the greatest extent
4 possible, appointees should have some experience in
5 interscholastic athletics or shall be parents of students
6 involved in interscholastic athletics.
7 (3) A chairman and vice chairman shall be elected from among
8 the members appointed under this subsection.
9 (c) The committee shall meet at least once each year for the
10 purpose of reviewing the association's continued compliance with
11 the criteria listed in section 1604-A(a) and (b) and responding
12 to issues related to the activities of the association referred
13 to the committee. The committee shall issue an annual report of
14 its findings to the President pro tempore of the Senate and the
15 Speaker of the House of Representatives.
16 Section 17. Section 1714-A of the act, added June 19, 1997
17 (P.L.225, No.22), is amended to read:
18 Section 1714-A. Powers of Charter Schools.--(a) A charter
19 school established under this act is a body corporate and shall
20 have all powers necessary or desirable for carrying out its
21 charter, including, but not limited to, the power to:
22 (1) Adopt a name and corporate seal; however, any name
23 selected shall include the words "charter school."
24 (2) Sue and be sued, but only to the same extent and upon
25 the same condition that political subdivisions and local
26 agencies can be sued.
27 (3) Acquire real property from public or private sources by
28 purchase, lease, lease with an option to purchase or gift for
29 use as a charter school facility.
30 (4) Receive and disburse funds for charter school purposes
20030H0564B4325 - 44 -
1 only.
2 (5) Make contracts and leases for the procurement of
3 services, equipment and supplies.
4 (6) Incur temporary debts in anticipation of the receipt of
5 funds.
6 (6.1) Incur debt for the construction of school facilities.
7 (7) Solicit and accept any gifts or grants for charter
8 school purposes.
9 (b) A charter school shall have such other powers as are
10 necessary to fulfill its charter and which are not inconsistent
11 with this article.
12 (c) Any indebtedness incurred by a charter school in the
13 exercise of the powers specified in this section shall not
14 impose any liability or legal obligation upon a school entity or
15 upon the Commonwealth.
16 Section 18. Section 1722-A(c) of the act is repealed.
17 Section 19. Section 1729-A(i) of the act, added June 19,
18 1997 (P.L.225, No.22), is amended to read:
19 Section 1729-A. Causes for Nonrenewal or Termination.--* * *
20 (i) When a charter is revoked [or is], not renewed,
21 forfeited, surrendered or otherwise ceases to operate, the
22 charter school shall be dissolved. After the disposition of any
23 liabilities and obligations of the charter school, any remaining
24 assets of the charter school, both real and personal, shall be
25 distributed on a proportional basis to the school entities with
26 students enrolled in the charter school for the last full or
27 partial school year of the charter school. In no event shall
28 such school entities or the Commonwealth be liable for any
29 outstanding liabilities or obligations of the charter school.
30 * * *
20030H0564B4325 - 45 -
1 Section 20. Section 1705-B(a) and (h)(4) of the act, amended
2 November 22, 2000 (P.L.672, No.91) and December 23, 2003
3 (P.L.304, No.48), are reenacted or amended and the section is
4 amended by adding a subsection to read:
5 Section 1705-B. Education Empowerment Districts.--(a)
6 Except as provided in subsection (a.1) or (h), a school district
7 on the education empowerment list that does not meet the goals
8 for improving educational performance set forth in the school
9 district improvement plan and maintains a history of low test
10 performance at the end of the third school year following the
11 date of its placement on the list shall be certified by the
12 department as an education empowerment district, and a board of
13 control shall be established. The department may allow the
14 school district to remain on the education empowerment list for
15 an additional school year prior to certifying the school
16 district as an education empowerment district if the department
17 determines that the additional year will enable the school
18 district to improve test performance and meet other goals set
19 forth in the school district improvement plan.
20 (a.1) Notwithstanding the provisions of subsection (a),
21 beginning June 1, 2004, a school district that does not meet the
22 goals for improving educational performance set forth in the
23 school district improvement plan and maintains a history of low
24 test performance at the end of the third school year following
25 the date of its placement on the list shall remain on the
26 education empowerment list until the school district no longer
27 has a history of low test performance and meets the goals set
28 forth in the school district improvement plan.
29 * * *
30 (h) * * *
20030H0564B4325 - 46 -
1 (4) The department may utilize up to $2,000,000 of
2 undistributed funds not expended, encumbered or committed from
3 appropriations for grants and subsidies made to the department
4 to assist school districts certified as an education empowerment
5 district under paragraph (3). There is hereby established a
6 restricted account from which payments under this paragraph
7 shall be paid. Funds shall be transferred by the Secretary of
8 the Budget to the restricted account to the extent necessary to
9 make payments under this paragraph. Funds in the restricted
10 account are hereby appropriated to carry out the purposes of
11 this paragraph. The subsidy payment from this account shall be
12 utilized to supplement the operational budget of the eligible
13 school districts. This paragraph shall apply to fiscal years
14 2000-2001, 2001-2002, 2002-2003 [and], 2003-2004 and 2004-2005
15 and shall expire June 30, [2004] 2005.
16 Section 21. Sections 1714-B(g) and 1714.1-B of the act,
17 amended or added December 23, 2003 (P.L.304, No.48), are amended
18 to read:
19 Section 1714-B. Mandate Waiver Program.--* * *
20 (g) The following provisions of this act shall not be
21 subject to waiver pursuant to this section: sections 108, 110,
22 111, 321, 322, 323, 324, 325, 326, 327, 431, 436, 437, 440.1,
23 443, 510, 513, 518, 527, 688, 701.1, 708, 736, 737, 738, 739,
24 740, 741, 752, 753, 755, 771, 776, 777, 778, 808, 809, 810,
25 1303(a), 1310, 1317, 1317.1, 1317.2, 1318, 1327, 1327.1, 1330,
26 1332, 1361, 1366, 1501, 1502, 1513, 1517, 1518, 1521, 1523, 1546
27 and 1547; provisions prohibiting discrimination; Articles VI,
28 XI, XI-A, XII, XIII-A, XIV and XVII-A and this article.
29 * * *
30 Section 1714.1-B. Limitation.--Notwithstanding any other
20030H0564B4325 - 47 -
1 provision of this article, no school district shall be placed on
2 the education empowerment list under section 1703-B or certified
3 as an education empowerment district under section 1705-B or
4 1707-B on or after [July] June 1, 2004. Any placement or
5 certification that occurs on or after June 1, 2004, shall be
6 null and void.
7 Section 22. Section 1904-A of the act is amended by adding a
8 subsection to read:
9 Section 1904-A. Election or Appointment; Term and
10 Organization of Board of Trustees.--* * *
11 (d) Notwithstanding the provisions of subsections (a) and
12 (b), the board of trustees of a community college may appoint a
13 trustee from each county where a campus or satellite classroom
14 is located for which no local sponsor exists. The trustee shall
15 be selected by the board of trustees of the community college.
16 Trustees appointed under the provisions of this subsection shall
17 be appointed for terms of two years.
18 Section 23. The act is amended by adding a section to read:
19 Section 1916-A. Community College Nonmandated Capital
20 Restricted Account.--(a) There is hereby established the
21 Community College Nonmandated Capital Restricted Account for the
22 purpose of making payments to community colleges for certain
23 nonmandated capital projects.
24 (b) The sources of the restricted account may include:
25 (1) With the approval of the Secretary of the Budget, in
26 consultation with the Secretary of Education, reimbursements
27 repaid by community colleges to the Commonwealth pursuant to
28 audits under section 1913-A and regulations under that section.
29 (2) Appropriations.
30 (3) Earnings on money in the restricted account.
20030H0564B4325 - 48 -
1 (c) The restricted account shall be used for nonmandated
2 capital projects in community colleges. The Department of
3 Education shall develop guidelines for disbursement in
4 consultation with community colleges.
5 (d) The money in the restricted account is hereby
6 appropriated to the department on a continuing basis for the
7 purposes identified in this section.
8 Section 24. Section 2004-A(c) of the act, amended June 23,
9 1988 (P.L.457, No.77), is amended to read:
10 Section 2004-A. Board of Governors.--* * *
11 (c) (1) The Governor or his designee, and the Secretary of
12 Education or his designee, and the members of the General
13 Assembly shall be members of the board and shall be entitled to
14 attend all meetings of the board and shall have the right to
15 speak on all matters before the board, and to vote, but shall
16 not be elected as an officer of the board.
17 (2) A member of the General Assembly appointed under
18 subsection (a) may designate an official representative to
19 attend any meetings of the board, the executive committee of the
20 board and any committee to which the member of the General
21 Assembly is assigned. Such official representative shall have
22 the right to speak on all matters before the board, the
23 executive committee and any committee to which the member of the
24 General Assembly is assigned but shall not have the right to
25 vote on behalf of the member of the General Assembly.
26 * * *
27 Section 25. Sections 2005-B(d) and 2502.13 of the act,
28 amended December 23, 2003 (P.L.304, No.48), are amended to read:
29 Section 2005-B. Tax credit.
30 * * *
20030H0564B4325 - 49 -
1 (d) Combination of tax credits.--A business firm may receive
2 [a tax credit from the Department of Revenue for a contribution
3 under subsection (a) or (c), or both.] tax credits from the
4 Department of Revenue in any tax year for any combination of
5 contributions under subsections (a) or (b) or (c). In no case
6 may a business firm receive tax credits in any tax year in
7 excess of $200,000 for contributions under subsections (a) and
8 (b). In no case shall a business firm receive tax credits in any
9 tax year in excess of $100,000 for contributions under
10 subsection (c).
11 Section 2502.13. Small District Assistance.--For the 1984-
12 1985 and 1985-1986 school years, the Commonwealth shall pay to
13 each school district which has an average daily membership of
14 one thousand five hundred (1,500) or less and has a market
15 value/income aid ratio of five thousand ten-thousandths (0.5000)
16 or greater, an amount equal to fifty dollars ($50) multiplied by
17 that district's average daily membership. For the 1985-1986
18 school year, no school district shall receive less on account of
19 this section than it did for the 1984-1985 school year. For the
20 school year 1986-1987, the Commonwealth shall pay to each school
21 district which has an average daily membership of one thousand
22 five hundred (1,500) or less and has a market value/income aid
23 ratio of five thousand ten-thousandths (0.5000) or greater, or
24 received payments under this section for the 1985-1986 school
25 year, an amount equal to seventy-five dollars ($75) multiplied
26 by that district's average daily membership. For the school year
27 1987-1988, the Commonwealth shall pay to each school district
28 which has an average daily membership of one thousand five
29 hundred (1,500) or less and a market value/income aid ratio of
30 five thousand ten-thousandths (0.5000) or greater, or received
20030H0564B4325 - 50 -
1 payments under this section for the 1986-1987 school year, an
2 amount equal to eighty-five dollars ($85) multiplied by that
3 district's average daily membership. For the school year 1988-
4 1989, the Commonwealth shall pay to each school district which
5 has an average daily membership of one thousand five hundred
6 (1,500) or less and a market value/income aid ratio of five
7 thousand ten thousandths (0.5000) or greater, or received
8 payments under this section for the 1987-1988 or 1988-1989
9 school year, an amount equal to one hundred five dollars ($105).
10 For the school year 1989-1990, the Commonwealth shall pay to
11 each school district which has an average daily membership of
12 one thousand five hundred (1,500) or less and a market
13 value/income aid ratio of five thousand ten-thousandths (0.5000)
14 or greater, or received payments under this section for the
15 1987-1988 school year, an amount equal to one hundred fifteen
16 dollars ($115) multiplied by the district's average daily
17 membership as provided for in section 212 of the act of July 1,
18 1990 (P.L.1591, No.7A), known as the "General Appropriation Act
19 of 1990." For the school year 1990-1991, the Commonwealth shall
20 pay to each school district which has an average daily
21 membership of one thousand five hundred (1,500) or less and a
22 market value/income aid ratio of five thousand ten-thousandths
23 (0.5000) or greater, or received payments under this section for
24 the prior school year, an amount equal to one hundred seventy
25 dollars ($170) multiplied by that district's average daily
26 membership. For the school year 1990-1991, each school district
27 with a population per square mile of less than ninety (90),
28 which otherwise meets the average daily membership and market
29 value/income aid ratio requirements of this section, or received
30 payments under this section for the prior school year, shall
20030H0564B4325 - 51 -
1 instead receive an amount equal to one hundred ninety dollars
2 ($190) multiplied by that district's average daily membership.
3 For the 1987-1988 school year through the 1990-1991 school year,
4 no school district shall receive less on account of this section
5 than it did for the prior school year. For the school year 1994-
6 1995, the Commonwealth shall pay to each school district which
7 has an average daily membership of one thousand five hundred
8 (1,500) or less and a market value/income aid ratio of five
9 thousand ten-thousandths (0.5000) or greater, an amount equal to
10 ninety five dollars ($95) multiplied by that district's average
11 daily membership. For each of the school years 1997-1998 through
12 1999-2000, the Commonwealth shall pay to each school district
13 which has an average daily membership of one thousand five
14 hundred (1,500) or less and a market value/income aid ratio of
15 five thousand ten-thousandths (0.5000) or greater an amount
16 equal to seventy-five dollars ($75) multiplied by that
17 district's average daily membership. For the school years 2000-
18 2001, 2001-2002 and 2002-2003, the Commonwealth shall pay to
19 each school district which has an average daily membership of
20 one thousand five hundred (1,500) or less an amount equal to
21 seventy-five dollars ($75) multiplied by that district's average
22 daily membership. For the school year 2003-2004, the
23 Commonwealth shall pay to each school district which has an
24 average daily membership of one thousand five hundred (1,500) or
25 less an amount equal to seventy-five dollars ($75) multiplied by
26 that district's average daily membership. For the school year
27 2003-2004, the Commonwealth shall pay an additional amount to
28 each school district which has an average daily membership of
29 one thousand five hundred (1,500) or less and a market
30 value/income aid ratio of five thousand ten-thousandths (0.5000)
20030H0564B4325 - 52 -
1 or greater an amount equal to fifty dollars ($50) multiplied by
2 that district's average daily membership.
3 Section 26. Section 2502.30 of the act, amended December 23,
4 2003 (P.L.304, No.48), is reenacted and amended to read:
5 Section 2502.30. Temporary Special Aid to School Districts
6 [Suffering Loss of Tax Revenue Due to Reduction in Assessed
7 Valuation of Taxable Property].--(a) Temporary special aid
8 shall be paid in fiscal years 1994-1995, 1995-1996, 1996-1997,
9 1997-1998, 1998-1999, 1999-2000, 2001-2002, 2002-2003 and 2003-
10 2004 to school districts experiencing a severe reduction in
11 local revenue due to a decline in the assessed value of taxable
12 properties. The allocation to these districts shall be
13 determined by multiplying the reduction in assessed value
14 between 1985-1986 and 1992-1993 by the 1992-1993 real estate
15 millage rate. This aid shall be paid from undistributed funds
16 not expended, encumbered or committed from appropriations for
17 grants and subsidies made to the Department of Education. No
18 other funds shall be used for assistance under this section.
19 These funds shall be sufficient to provide temporary relief to
20 seven school districts in fiscal year 1995-1996 at seventy-five
21 per centum (75%) of the funds received in fiscal year 1994-1995,
22 in fiscal year 1996-1997 at fifty per centum (50%) of the funds
23 received in fiscal year 1994-1995, in fiscal year 1997-1998,
24 1998-1999 and in fiscal year 1999-2000 at twenty-five per centum
25 (25%) of the funds received in fiscal year 1994-1995. For fiscal
26 years 2001-2002, 2002-2003 and 2003-2004 to the extent funds are
27 available as determined by the Secretary of the Budget,
28 qualifying school districts shall receive twenty-five per centum
29 (25%) of the funds received in fiscal year 1994-1995.
30 (a.1) (1) Temporary special aid shall be paid in fiscal
20030H0564B4325 - 53 -
1 year 2004-2005 out of the appropriation for basic education
2 funding to school districts to certain school districts that
3 have experienced severe increases in average daily membership
4 and in market value/income aid ratio. To qualify for temporary
5 special aid under this subsection, the school district's 2004-
6 2005 market value/income aid ratio must be greater than five
7 thousand two hundred ten thousandths (0.5200), the increase from
8 the school district's 1991-1992 average daily membership to its
9 2003-2004 average daily membership must be equal to or greater
10 than eighteen per centum (18%) and the increase from the school
11 district's 1991-1992 market value/income aid ratio to its 2003-
12 2004 market value/income aid ratio must be equal to or greater
13 than fifteen per centum (15%).
14 (2) The allocation to a qualifying school district under
15 this subsection shall be determined by:
16 (i) Subtracting the school district's 1991-1992 average
17 daily membership from its 2003-2004 average daily membership.
18 (ii) Multiplying the difference from subparagraph (i) by
19 eight million five hundred thousand dollars ($8,500,000).
20 (iii) Dividing the product from subparagraph (ii) by the sum
21 of the differences from subparagraph (i).
22 (a.2) (1) Temporary special aid shall be paid in fiscal
23 year 2004-2005 out of the appropriation for basic education
24 funding to school districts to certain school districts that
25 have extremely high local tax effort. To qualify for temporary
26 special aid under this subsection, the school district's 2002
27 equalized millage rate must be equal to or greater than thirty-
28 three (33) equalized mills and its 2004-2005 market value/income
29 aid ratio must be equal to or greater than six thousand four
30 hundred ten thousandths (0.6400).
20030H0564B4325 - 54 -
1 (2) The allocation to a qualifying school district under
2 this subsection shall be determined by:
3 (i) Multiplying the school district's 2003-2004 average
4 daily membership by seven hundred fifty thousand dollars
5 ($750,000).
6 (ii) Dividing the product from subparagraph (i) by the 2003-
7 2004 average daily membership for all qualifying school
8 districts.
9 (b) Payments made pursuant to subsection (a) shall be paid
10 from a restricted receipt account, which is hereby established,
11 for such payments. Funds shall be transferred by the Secretary
12 of the Budget to the restricted account only to the extent
13 necessary to make the payments authorized by this section. The
14 money in the restricted account is hereby appropriated from the
15 account for purposes of this section.
16 (c) This section shall expire [October 1, 2004] June 30,
17 2005.
18 Section 27. The act is amended by adding sections to read:
19 Section 2502.43. Basic Education Funding for 2003-2004
20 School Year.--For the 2003-2004 school year, the Commonwealth
21 shall pay to each school district a basic education funding
22 allocation which shall consist of the following:
23 (1) An amount equal to the basic education funding
24 allocation for the 2002-2003 school year pursuant to sections
25 2502.13 and 2502.41.
26 (2) Where the school district received a grant under section
27 1709-B during the 2003-2004 school year, but is not eligible to
28 receive such a grant during the 2004-2005 school year, an amount
29 equal to the grant amount it received during the 2003-2004
30 school year multiplied by fifty percent (50%).
20030H0564B4325 - 55 -
1 (3) Where the school district received funds pursuant to
2 section 2502.30(a) during the 2003-2004 school year, an amount
3 equal to the amount it received during the 2003-2004 school
4 year.
5 (4) A base supplement calculated as follows:
6 (i) If the school district's 2004-2005 market value/income
7 aid ratio is equal to or greater than seven thousand ten
8 thousandths (.7000):
9 (A) Multiply the school district's 2004-2005 market
10 value/income aid ratio by its 2003-2004 average daily
11 membership.
12 (B) Multiply the product from clause (A) by seven million
13 five hundred thousand dollars ($7,500,000).
14 (C) Divide the product from clause (B) by the sum of the
15 products of the 2004-2005 market value/income aid ratio
16 multiplied by the 2003-2004 average daily membership for all
17 qualifying school districts.
18 (ii) If the school district's 2004-2005 market value/income
19 aid ratio is equal to or greater than four thousand ten
20 thousandths (.4000) and less than seven thousand ten thousandths
21 (.7000):
22 (A) Multiply the school district's 2004-2005 market
23 value/income aid ratio by its 2003-2004 average daily
24 membership.
25 (B) Multiply the product from clause (A) by thirty-four
26 million dollars ($34,000,000).
27 (C) Divide the product from clause (B) by the sum of the
28 products of the 2004-2005 market value/income aid ratio
29 multiplied by the 2003-2004 average daily membership for all
30 qualifying school districts.
20030H0564B4325 - 56 -
1 (iii) If the school district's 2004-2005 market value/income
2 aid ratio is less than four thousand ten thousandths (.4000):
3 (A) Multiply the school district's 2004-2005 market
4 value/income aid ratio by its 2003-2004 average daily
5 membership.
6 (B) Multiply the product 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 products of the 2004-2005 market value/income aid ratio
10 multiplied by the 2003-2004 average daily membership for all
11 qualifying school districts.
12 (5) A poverty supplement calculated for qualifying school
13 districts as follows:
14 (i) To qualify for the poverty supplement, a school
15 district's 2004-2005 market value/income aid ratio must be equal
16 to or greater than six thousand five hundred ten thousandths
17 (0.6500) and its personal income valuation when divided by its
18 2003-2004 average daily membership must be equal to or less than
19 one hundred three thousand five hundred seventy-one dollars
20 ($103,571).
21 (ii) The poverty supplement shall be calculated for
22 qualifying school districts as follows:
23 (A) Multiply the school district's 2003-2004 average daily
24 membership by thirty-three million dollars ($33,000,000).
25 (B) Divide the product from clause (A) by the sum of the
26 2003-2004 average daily membership for all qualifying school
27 districts.
28 (6) A tax effort supplement calculated for qualifying school
29 districts as follows:
30 (i) To qualify for the tax effort supplement, a school
20030H0564B4325 - 57 -
1 district's 2002 equalized millage must be equal to or greater
2 than 20.0 equalized mills.
3 (ii) The tax effort supplement shall be calculated for
4 qualifying school districts as follows:
5 (A) Multiply the school district's 2003-2004 average daily
6 membership by ten million dollars ($10,000,000).
7 (B) Divide the product from clause (A) by the sum of the
8 2003-2004 average daily membership for all qualifying school
9 districts.
10 (7) A growth supplement calculated for qualifying school
11 districts as follows:
12 (i) To qualify for the growth supplement, a school
13 district's 2003-2004 average daily membership must be greater
14 than its 2002-2003 average daily membership.
15 (ii) The growth supplement shall be calculated for
16 qualifying school districts as follows:
17 (A) Subtract the school district's 2002-2003 average daily
18 membership from its 2003-2004 average daily membership and
19 multiply the difference by its 2004-2005 market value/income aid
20 ratio.
21 (B) Multiply the difference from clause (A) by thirteen
22 million dollars ($13,000,000).
23 (C) Divide the product from clause (B) by the sum of the
24 differences from clause (A) for all qualifying school districts.
25 (8) Each school district shall receive additional funding as
26 necessary so that the sum of the amounts under section 2502.13
27 and paragraphs (4), (5), (6), (7) and this paragraph will equal
28 at least two percent (2%) of the amount in paragraph (1).
29 Section 2504.4. Payments on Account of Limited English
30 Proficiency Programs.--(a) To qualify for limited English
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1 proficiency payments under this section, a school district's
2 2004-2005 market value income aid ratio must be greater than or
3 equal to 0.3000 and the number of enrolled students identified
4 as limited English proficient in the 2002-2003 school year must
5 be no less than 2% of the school district's 2002-2003 average
6 daily membership. The allocation to a qualified school district
7 under this section shall be paid in fiscal year 2004-2005 out of
8 the appropriation for basic education funding to school
9 districts and determined by:
10 (1) multiplying the number of enrolled students identified
11 as Limited English Proficient in the 2002-2003 school year in a
12 qualified school district by $11,135,070; and
13 (2) dividing the product from paragraph (1) by the total
14 number of enrolled students identified as Limited English
15 Proficient in all qualified school districts.
16 (b) Funds received by a school district under this section
17 shall only be used to support instructional programs for
18 students identified as Limited English Proficient. A school
19 district shall not place any funds received under this section
20 into any reserve account.
21 Section 28. Sections 2509.1 and 2509.5 of the act are
22 amended by adding subsections to read:
23 Section 2509.1. Payments to Intermediate Units.--* * *
24 (b.12) Up to nine million seven hundred and fifty thousand
25 dollars ($9,750,000) may be utilized for programs administered
26 and operated by intermediate units during the 2004-2005 school
27 year for institutionalized children as established in subsection
28 (b.1).
29 * * *
30 Section 2509.5. Special Education Payments to School
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1 Districts.--* * *
2 (nn) During the 2004-2005 school year, each school district
3 shall be paid the amount it received during the 2003-2004 school
4 year under subsections (ll) and (mm).
5 (oo) During the 2004-2005 school year, eighteen million,
6 four hundred eighty thousand, seven hundred eighty-one dollars
7 ($18,480,781) of the funds appropriated to the Department of
8 Education for special education shall be used to provide
9 supplemental funding for special education to school districts.
10 (1) Each school district shall receive a funding supplement
11 calculated as follows:
12 (i) multiply each school district's 2004-2005 market
13 value/income aid ratio by sixteen percent (16%) of its 2003-2004
14 average daily membership;
15 (ii) multiply the product from clause (i) by sixteen
16 million, seven hundred thousand dollars ($16,700,000); and
17 (iii) divide the resultant product from clause (ii) by the
18 sum of the products of the 2004-2005 market value/income aid
19 ratio multiplied by sixteen per cent (16%) of the 2003-2004
20 average daily membership for all school districts.
21 (2) Each school district for which the supplement under
22 paragraph (1) provides an amount less than two per cent (2%) of
23 the sum of the amounts provided under subsections (ll) and (mm)
24 shall receive additional funding as necessary so that the sum of
25 the amounts provided under paragraph (1) and this paragraph
26 equals two per cent (2%) of the sum of the amounts provided
27 under subsections (ll) and (mm).
28 Section 29. Section 2591.1(d) of the act, amended December
29 23, 2003 (P.L.304, No.48), is amended and the section is amended
30 by adding a subsection to read:
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1 Section 2591.1. Commonwealth Reimbursements for Charter
2 Schools and Cyber Charter Schools.--* * *
3 (c.1) For the 2003-2004 school year and each school year
4 thereafter, the Commonwealth shall pay to each school district
5 with resident students enrolled during the immediately preceding
6 school year in a charter school, a charter school approved under
7 section 1717-A or 1718-A which provides instruction through the
8 Internet or other electronic means or a cyber charter school as
9 defined under Article XVII-A, an amount equal to thirty percent
10 (30%) of the total funding required under section 1725-A(a).
11 (d) For the fiscal year 2003-2004 and each fiscal year
12 thereafter, if insufficient funds are appropriated to make
13 Commonwealth payments pursuant to this section, such payments
14 shall be made on a pro rata basis.
15 Section 30. Section 2599.2(c)(1) and (d) of the act, added
16 December 23, 2003 (P.L.304, No.48), are amended to read:
17 Section 2599.2. Pennsylvania Accountability Grants.--* * *
18 (c) (1) No later than April 10, 2004 and April 10, 2005,
19 the department shall notify each school district of the grant
20 amount it will receive under subsection (d).
21 * * *
22 (d) During the 2004-2005 and 2005-2006 school [year] years,
23 the department shall pay to each school district a Pennsylvania
24 Accountability grant equal to the sum of the amounts calculated
25 under paragraphs (1) and (2) as follows:
26 (1) Each school district shall receive an amount based on
27 the percentage of its students scoring below proficient on the
28 PSSA tests, calculated as follows:
29 (i) Divide the number of PSSA tests administered in the
30 school district on which students scored below proficient in
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1 reading or mathematics during the 2002-2003 school year by the
2 total number of PSSA tests scored in reading and mathematics in
3 the school district during the 2002-2003 school year.
4 (ii) Multiply the quotient from subparagraph (i) by the
5 average daily membership of the school district for the 2002-
6 2003 school year.
7 (iii) Multiply the product from subparagraph (ii) by the
8 market value/income aid ratio of the school district for the
9 2003-2004 school year.
10 (iv) Multiply the product from subparagraph (iii) by [one
11 hundred thirty-one million two hundred fifty thousand dollars
12 ($131,250,000)] one hundred fifty million dollars
13 ($150,000,000).
14 (v) Divide the product from subparagraph (iv) by the sum of
15 the products of subparagraph (iii) for all school districts.
16 (2) Each school district shall receive an amount based on
17 the percentage of its students scoring at or above proficient on
18 the PSSA tests, calculated as follows:
19 (i) Divide the number of PSSA tests administered in the
20 school district on which students scored at or above proficient
21 in reading or mathematics during the 2002-2003 school year by
22 the total number of PSSA tests scored in reading and mathematics
23 in the school district during the 2002-2003 school year.
24 (ii) Multiply the quotient from subparagraph (i) by the
25 average daily membership of the school district for the 2002-
26 2003 school year.
27 (iii) Multiply the product from subparagraph (ii) by the
28 market value/income aid ratio of the school district for the
29 2003-2004 school year.
30 (iv) Multiply the product from subparagraph (iii) by [forty-
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1 three million seven hundred fifty thousand dollars
2 ($43,750,000)] fifty million dollars ($50,000,000).
3 (v) Divide the product from subparagraph (iv) by the sum of
4 the products of subparagraph (iii) for all school districts.
5 (3) Grants awarded under this section shall be paid to
6 school districts on the last Thursday of July.
7 * * *
8 Section 31. The provisions of this act are severable. If any
9 provision of this act or its application to any person or
10 circumstance is held invalid, the invalidity shall not affect
11 the remaining provisions or applications.
12 Section 32. The following shall apply:
13 (1) The amendment or addition of section 1705-B(a) and
14 (a.1) of the act shall apply retroactively to June 1, 2004.
15 (2) The reenactment and amendment of section 1705-
16 B(h)(4) of the act shall apply retroactively to June 29,
17 2003.
18 (3) The amendment of section 1714.1-B of the act shall
19 apply retroactively to June 1, 2004.
20 (4) The reenactment of section 2502.30 of the act shall
21 apply retroactively to September 30, 2003.
22 Section 33. This act shall take effect as follows:
23 (1) The addition of section 778(a.1) and (b.1) of the
24 act shall take effect in one year.
25 (2) The remainder of this act shall take effect
26 immediately.
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