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        PRIOR PRINTER'S NOS. 189, 1643, 2277,         PRINTER'S NO. 4517
        3723, 4464, 3723, 4510

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 185 Session of 2005


                     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. 185, 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,' providing for school district notification of
        residential development and for contracts for competitive food
        or beverage contracts; * * * and providing for free and reduced-
        price school lunches for certain students. COMPETITIVE FOOD OR
        BEVERAGE CONTRACTS AND FOR NUTRITIONAL GUIDELINES FOR FOOD AND
        BEVERAGE SALES IN SCHOOLS; * * * AND FURTHER PROVIDING FOR
        PHYSIOLOGY AND HYGIENE.

        respectfully submit the following bill as our report:

                                           JESS M. STAIRS

                                           DAVID G. ARGALL

                                           JAMES R. ROEBUCK, JR.

                (Committee on the part of the House of Representatives.)

                                           DAVID J. BRIGHTBILL

                                           JAMES J. RHOADES

                                           RAPHAEL J. MUSTO

                                  (Committee on the part of the Senate.)


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    20050H0185B4517                  - 2 -     

                                     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 competitive
     7     food or beverage contracts and for certain budget timelines;
     8     further providing for annual budget and for financial
     9     reports; providing for the Distinguished Educators Program;
    10     further providing for continuing professional development,
    11     for program of continuing professional education, for safe
    12     schools advocate, for certain health services and for
    13     advisory health councils; providing for local wellness
    14     policies, for an interagency coordinating council for child
    15     health and nutrition, for duties of the Department of
    16     Education and for physical education; providing for
    17     physiology and hygiene; further providing for the Educational
    18     Assistance Program, for definitions, for responsibilities of
    19     Department of Education, for responsibilities of school
    20     entities, for transportation, for definitions, for education
    21     empowerment list, for board of school directors, for
    22     education empowerment districts, for school improvement
    23     grants, for limitation and for alternative education grants;
    24     providing for alternative education demonstration grants;
    25     further providing for State funding; providing for
    26     articulation agreements; further providing for definitions
    27     and for limitations; providing for transfer of credits
    28     between institutions of higher education and for
    29     transportation of certain students; further providing for
    30     definitions and for small district assistance; providing for
    31     basic education funding for 2005-2006 school year and for
    32     funding for partnership schools; further providing for
    33     payments on account of limited English proficiency programs,
    34     for payments to intermediate units and for special education
    35     payments to school districts; providing for special education
    36     community support services; further providing for payments,
    37     for approved reimbursable rental for leases and for
    38     Pennsylvania Accountability Grants; and providing for
    39     Statewide costing-out study.

    40     The General Assembly of the Commonwealth of Pennsylvania
    41  hereby enacts as follows:
    42     Section 1.  Section 111(a), (c) and (i) of the act of March
    43  10, 1949 (P.L.30, No.14), known as the Public School Code of
    44  1949, amended December 19, 1990 (P.L.1362, No.211) and July 4,
    45  2004 (P.L.536, No.70), are amended and the section is amended by
    46  adding subsections to read:
    47     Section 111.  Background Checks of Prospective Employes;
    48  Conviction of Employes of Certain Offenses.--(a)  This section
    20050H0185B4517                  - 3 -     

     1  shall apply to all prospective employes of public and private
     2  schools, intermediate units and area vocational-technical
     3  schools, including independent contractors and their employes,
     4  except those employes and independent contractors and their
     5  employes who have no direct contact with children. This
     6  subsection shall expire March 31, 2007.
     7     (a.1)  Beginning April 1, 2007, this section shall apply to
     8  all prospective employes of public and private schools,
     9  intermediate units and area vocational-technical schools,
    10  including, but not limited to, teachers, substitutes, janitors,
    11  cafeteria workers, independent contractors and their employes,
    12  except those employes and independent contractors and their
    13  employes who have no direct contact with children.
    14     (1)  Beginning April 1, 2007, this section shall apply to bus
    15  drivers offered employment by a school district, private school,
    16  nonpublic school, intermediate unit or area vocational-technical
    17  school or by an independent contractor.
    18     (2)  Beginning April 1, 2007, this section shall apply to
    19  student teacher candidates assigned to all public and private
    20  schools, intermediate units and area vocational-technical
    21  schools.
    22     (3)  For purposes of this section, "student teacher
    23  candidate" shall mean an individual participating in a classroom
    24  teaching, internship, clinical or field experience who, as part
    25  of a program for the initial or advanced preparation of
    26  professional educators, performs classroom teaching or assists
    27  in the education program in a public or private school,
    28  intermediate unit or area vocational-technical school under the
    29  supervision of educator preparation program faculty.
    30     (4)  Prior to a student teacher candidate's participation in
    20050H0185B4517                  - 4 -     

     1  any classroom teaching, internship, clinical or field
     2  experience, that candidate shall provide to the administrator of
     3  his or her educator preparation program all criminal history
     4  record information required of an employe or prospective employe
     5  who is subject to this section.
     6     (5)  The student teacher candidate may not participate in any
     7  classroom teaching, internship, clinical or field experience if
     8  this section would prohibit an employe or prospective employe
     9  subject to this section from being employed under those
    10  circumstances.
    11     (6)  During the course of a student teacher candidate's
    12  participation in an educator preparation program, the
    13  administrator of the student teacher candidate's educator
    14  preparation program shall maintain a copy of the criminal
    15  history record information that was provided by the student
    16  teacher candidate. The penalty provisions of subsection (g)
    17  shall be applicable to the administrator of a student teacher
    18  candidate's educator preparation program.
    19     (7)  If a student teacher candidate is continuously enrolled
    20  in an educator preparation program, the criminal history record
    21  information initially submitted by that candidate to that
    22  program shall remain valid during that period of enrollment. If
    23  a student teacher candidate's enrollment in an educator
    24  preparation program is interrupted or if that candidate
    25  transfers to another educator preparation program, the candidate
    26  shall provide to the administrator of his or her educator
    27  preparation program all criminal history record information
    28  required of an employee who is subject to this section.
    29     * * *
    30     (c)  Where the applicant has not been a resident of this
    20050H0185B4517                  - 5 -     

     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 set of fingerprints which may be submitted to the
     5  Federal Bureau of Investigation for Federal criminal history
     6  record information pursuant to the Federal Bureau of
     7  Investigation appropriation of Title II of Public Law 92-544, 86
     8  Stat. 1115 or a copy of such Federal criminal history record.
     9  Administrators shall forward the set of fingerprints for the
    10  Federal criminal history record to the Department of Education.
    11  The Department of Education shall be the intermediary for the
    12  purposes of this section. The Department of Education shall
    13  return the Federal criminal history record to the applicant.
    14  When the applicant provides a copy of the Federal criminal
    15  history record, it shall be no more than one (1) year old.
    16  Administrators shall maintain a copy of the required information
    17  and shall require each applicant to produce a Federal criminal
    18  history record that may not be more than one (1) year old at the
    19  time of employment. The original Federal criminal history record
    20  shall be returned to the applicant. This subsection shall expire
    21  March 31, 2007.
    22     (c.1)  Beginning April 1, 2007, administrators shall require
    23  the applicant to submit with the application for employment a
    24  copy of the Federal criminal history record in a manner
    25  prescribed by the Department of Education. When the applicant
    26  provides a copy of the Federal criminal history record, it shall
    27  be no more than one (1) year old. Administrators shall maintain
    28  a copy of the required information and shall require each
    29  applicant to produce a Federal criminal history record that may
    30  not be more than one (1) year old at the time of employment. The
    20050H0185B4517                  - 6 -     

     1  original Federal criminal history record shall be returned to
     2  the applicant.
     3     * * *
     4     (i)  Notwithstanding subsections (b) [and (c)], (c) and
     5  (c.1), administrators, before April 1, 2007, may employ in-State
     6  applicants on a provisional basis for a single period not to
     7  exceed thirty (30) days [or, for] and may employ out-of-State
     8  applicants[, a period of] on a provisional basis for a single
     9  period not to exceed ninety (90) days[, except] and, after March
    10  31, 2007, may employ any applicants on a provisional basis for a
    11  single period not to exceed ninety (90) days, except during a
    12  lawful strike proceeding under the provisions of the act of July
    13  23, 1970 (P.L.563, No.195), known as the "Public Employe
    14  Relations Act," provided that all of the following conditions
    15  are met:
    16     (1)  the applicant has applied for the information required
    17  under subsection (b) and, where applicable, under subsection (c)
    18  or (c.1) and the applicant provides a copy of the appropriate
    19  completed request forms to the administrator;
    20     (2)  the administrator has no knowledge of information
    21  pertaining to the applicant which would disqualify him from
    22  employment pursuant to subsection (e);
    23     (3)  the applicant swears or affirms in writing that he is
    24  not disqualified from employment pursuant to subsection (e);
    25     (4)  if the information obtained pursuant to subsection (b)
    26  [or (c)], (c) or (c.1) reveals that the applicant is
    27  disqualified from employment pursuant to subsection (e), the
    28  applicant shall be suspended and subject to termination
    29  proceedings as provided for by law; and
    30     (5)  the administrator requires that the applicant not be
    20050H0185B4517                  - 7 -     

     1  permitted to work alone with children and that the applicant
     2  work in the immediate vicinity of a permanent employe.
     3     Section 1.1.  The act is amended by adding sections to read:
     4     Section 504.1.  Competitive Food or Beverage Contracts.--(a)
     5  (1)  A board of school directors of a school district or any of
     6  the schools under its jurisdiction shall not enter into an
     7  exclusive competitive food or beverage contract unless the board
     8  of school directors provides reasonable public notice or holds a
     9  public hearing about the contract.
    10     (2)  As used in this subsection, "reasonable public notice"
    11  shall mean providing notice to parents or guardians utilizing
    12  normal school communication procedures at least 30 days prior to
    13  the board of school directors or any of the schools under its
    14  jurisdiction entering into an exclusive competitive food or
    15  beverage contract, which notice includes guidance for parents or
    16  guardians on how to offer public comment regarding the contract.
    17     (b)  A board of school directors or any of the schools under
    18  its jurisdiction shall not enter into any contract prohibiting a
    19  school district employe from disparaging the goods or services
    20  of the party contracting with the board of school directors or
    21  any of the schools under its jurisdiction.
    22     (c)  (1)  No contract entered into under this section may
    23  include a confidentiality clause prohibiting a board of school
    24  directors or any of the schools under its jurisdiction from
    25  making any part of the contract public.
    26     (2)  A contract entered into or renewed under this section
    27  shall be made accessible to the public pursuant to section 2 of
    28  the act of June 21, 1957 (P.L.390, No.212), referred to as the
    29  Right-to-Know Law.
    30     (d)  The board of school directors shall report the amounts
    20050H0185B4517                  - 8 -     

     1  and specific sources of funds received and the nature of
     2  expenditures made from funds received from a competitive food or
     3  beverage contract at a regularly scheduled board meeting, a
     4  public hearing or on the school district's Internet website.
     5     (e)  The board of school directors may post signs publicly
     6  expressing the school district's appreciation of a business or
     7  person that supports the school district's educational programs.
     8     (f)  As used in this section, the term "competitive food or
     9  beverage" means any food or beverages offered or sold in
    10  competition with reimbursable meals served under the National
    11  School Lunch or School Breakfast Program.
    12     Section 614.  Certain Budget Timelines.--(a)  Notwithstanding
    13  the act of June 27, 2006 (1st Sp.Sess., P.L.    , No.1), known
    14  as the "Taxpayer Relief Act," for the first fiscal year which
    15  begins after June 30, 2006, each board of school directors shall
    16  prepare and adopt its budget and establish its rates of taxation
    17  according to the laws in effect prior to June 27, 2006, and this
    18  act.
    19     (b)  This section shall expire January 1, 2007.
    20     Section 2.  Section 687(j) of the act, amended July 13, 2005
    21  (P.L.226, No.46), is amended to read:
    22     Section 687.  Annual Budget; Additional or Increased
    23  Appropriations; Transfer of Funds.--* * *
    24     (j)  Notwithstanding any other provisions of this act, the
    25  board of school directors of each school district may reopen its
    26  2003-2004 budget, its 2004-2005 budget [or], its 2005-2006
    27  budget or its 2006-2007 budget to reflect any State allocations
    28  for fiscal year 2003-2004, fiscal year 2004-2005 [or], fiscal
    29  year 2005-2006 or fiscal year 2006-2007 provided by the General
    30  Assembly through this act.
    20050H0185B4517                  - 9 -     

     1     Section 2.1.  Section 921-A of the act, amended May 10, 2000
     2  (P.L.44, No.16), is amended to read:
     3     Section 921-A.  Financial Reports.--An annual financial
     4  report shall be submitted to the Secretary of Education by each
     5  intermediate unit not later than the [first] 31st day of
     6  October, together with an auditor's report prepared by an
     7  independent auditor who shall be a certified public accountant
     8  or other competent public accountant. All financial accounting
     9  and reporting by intermediate units to the Department of
    10  Education shall be in accordance with generally accepted
    11  accounting and reporting standards.
    12     Section 2.2.  The act is amended by adding a section to read:
    13     Section 1195.  Distinguished Educators Program.--(a)  The
    14  Department of Education shall establish a Distinguished
    15  Educators Program for organizing individuals into a State corps
    16  of educators for the purpose of making them available throughout
    17  this Commonwealth to help eligible school districts and schools
    18  improve the quality of education.
    19     (b)  The department shall develop guidelines, standards and
    20  criteria for the selection of participants. At a minimum,
    21  candidates must hold administrative or instructional
    22  certificates and have satisfactory experience as a teacher or
    23  school administrator for a minimum of five (5) years prior to
    24  the date of application. Candidates selected for participation
    25  shall have knowledge and skills relating to school leadership,
    26  management, curriculum and instruction.
    27     (c)  Applications shall be submitted to the department in a
    28  form and manner prescribed by the department. The application
    29  form and information relating to applying for the program, along
    30  with criteria to be used to review applications, shall be
    20050H0185B4517                 - 10 -     

     1  published in the Pennsylvania Bulletin and may be placed on the
     2  department's Internet website.
     3     (d)  The following applies for school year 2007-2008 and each
     4  school year thereafter:
     5     (1)  The department shall appoint a selection committee to
     6  annually select from the applications received those individuals
     7  who will participate in the program.
     8     (2)  At least ninety per centum (90%) of the individuals
     9  selected for participation in any year must possess an
    10  instructional or administrative certificate issued by the
    11  Commonwealth.
    12     (3)  An individual selected must not be an employe of the
    13  department or a professional organization representing school
    14  boards of directors, school administrators, school principals or
    15  teachers.
    16     (e)  By participating in the program, all individuals
    17  recognized as Distinguished Educators by the department agree to
    18  provide assistance to eligible school districts and schools at
    19  the request of the department.
    20     (f)  The department shall establish an intensive and
    21  comprehensive training program for Distinguished Educators in
    22  order to participate in the program. Individuals must attend and
    23  complete the training program before being named a Distinguished
    24  Educator. The department shall require additional training from
    25  time to time to ensure the continued competencies of
    26  Distinguished Educators and the integrity of the program.
    27  Training shall be provided at no cost to participants. The
    28  training program shall include instruction relating to school
    29  district and school management, methods of personnel evaluation,
    30  school district and school organization, curriculum and
    20050H0185B4517                 - 11 -     

     1  assessment techniques and methodologies. Participants in the
     2  program will be compensated by the department during training
     3  pursuant to subsection (j).
     4     (g)  The following apply:
     5     (1)  Upon request of the department, a Distinguished Educator
     6  may be assigned to provide assistance to an eligible school
     7  district or to one or more schools within that school district
     8  as part of a team of Distinguished Educators.
     9     (2)  No Distinguished Educator may be assigned as a
    10  consultant to the department.
    11     (3)  The following apply:
    12     (i)  A Distinguished Educator may be assigned to provide
    13  assistance to one or more eligible school districts for a period
    14  of at least one (1) school semester, which may be extended upon
    15  mutual agreement of the Distinguished Educator and the
    16  department. A Distinguished Educator shall not be assigned to a
    17  school district from which leave was granted for the
    18  Distinguished Educator pursuant to subsection (h).
    19     (ii)  While on assignment, a Distinguished Educator shall do
    20  all of the following:
    21     (A)  Cooperate with the superintendent and leadership team in
    22  the school districts where they are serving schools.
    23     (B)  Work cooperatively with other members of the
    24  Distinguished Educator program and the department.
    25     (C)  Recommend curriculum and assessment techniques and
    26  methodologies.
    27     (h)  Any school district, intermediate unit or area
    28  vocational-technical school may grant leave to a Distinguished
    29  Educator to serve under and in accordance with the provisions of
    30  this article.
    20050H0185B4517                 - 12 -     

     1     (i)  If leave is granted under subsection (h), Distinguished
     2  Educators shall maintain the rights and obligations established
     3  in sections 1168 and 1170; but the leave shall not be subject to
     4  section 1166, 1166.1, 1167 or 1169.
     5     (j)  The department shall compensate an individual serving as
     6  a Distinguished Educator based on a formula developed by the
     7  department and published annually in the Pennsylvania Bulletin
     8  by August 1 of each year. The department shall make payment only
     9  to the extent that funds are appropriated for this purpose. The
    10  department shall not pay any costs incurred by a school district
    11  to fill a vacancy resulting from the absence of a Distinguished
    12  Educator during the leave granted pursuant to subsection (h).
    13     (k)  Notwithstanding the provisions of 24 Pa.C.S § 8346
    14  (relating to termination of annuities) an individual who is an
    15  annuitant may serve as a Distinguished Educator without the loss
    16  of his annuity. While serving as a Distinguished Educator, the
    17  annuitant shall not be entitled to earn any credited service and
    18  no contributions shall be made by the annuitant or the
    19  department on account of such service as a Distinguished
    20  Educator.
    21     (l)  As used in this section, the following words and phrases
    22  shall have the meanings given to them in this subsection:
    23     The term "eligible school district" shall mean a school
    24  district which meets at least one of the following criteria:
    25     (1)  Has one or more schools in corrective action.
    26     (2)  Has one or more schools which have not met their
    27  academic adequate yearly progress targets in math and reading
    28  for the school overall.
    29     (3)  Has one or more schools which have not met their
    30  academic adequate yearly progress targets in math and reading
    20050H0185B4517                 - 13 -     

     1  for a particular subgroup for two consecutive years.
     2     (4)  Has one or more schools which have met their academic
     3  adequate yearly progress targets in math and reading only by the
     4  department's application of section 1111(b)(2)(I)(i) of the No
     5  Child Left Behind Act of 2001 (115 Stat. 1445, 20 U.S.C. §
     6  6311(b)(2)(A)(i)), the Pennsylvania Performance Index or
     7  confidence intervals.
     8     "Selection Committee."  A committee formed by the department
     9  which, at a minimum, includes one of each of the following:
    10     (1)  A Pennsylvania educator who has been recognized by a
    11  national, State or independent organization for excellence in
    12  education.
    13     (2)  A Pennsylvania education practitioner.
    14     (3)  A national education practitioner.
    15     (4)  A Pennsylvania education researcher.
    16     (5)  A department representative.
    17  With the exception of the department representative, a member of
    18  the selection committee under clause (1), (2), (3) or (4) must
    19  not be an employe of the department or a school entity
    20  administering the program.
    21     Section 2.3.  Sections 1205.1(c.1) and 1205.2(c) of the act,
    22  amended or added November 23, 1999 (P.L.529, No.48), are amended
    23  to read:
    24     Section 1205.1.  Continuing Professional Development.--* * *
    25     (c.1)  The continuing professional education plan shall
    26  specify the professional education needs that will be met by
    27  completion of each continuing professional education option and
    28  how it relates to areas of assignment and certification or
    29  potential administrative certification. The options may include,
    30  but shall not be limited to:
    20050H0185B4517                 - 14 -     

     1     (1)  Collegiate studies.
     2     (2)  Continuing professional education courses taken for
     3  credit.
     4     (3)  Other programs, activities or learning experiences taken
     5  for credit or hourly, to include:
     6     (i)  curriculum development and other program design and
     7  delivery activities at the school entity or grade level as
     8  determined by the school entity and approved by the board of
     9  directors;
    10     (ii)  participation in professional conferences and
    11  workshops;
    12     (iii)  education in the workplace, where the work relates to
    13  the professional educator's area of assignment and is approved
    14  by the board of directors;
    15     (iv)  review, redesign and restructuring of school programs,
    16  organizations and functions as determined by the school entity
    17  and approved by the board of directors;
    18     (v)  in-service programs that comply with guidelines
    19  established by the department;
    20     (vi)  early childhood and child development activities for
    21  professional educators whose area of assignment includes
    22  kindergarten through third grade;
    23     (vii)  special education activities for professional
    24  educators whose area of assignment includes students with
    25  special needs; [or]
    26     (viii)  successful completion of department training for
    27  service as a Distinguished Educator if the professional educator
    28  participates in and completes at least one assignment in the
    29  Distinguished Educators Program; or
    30     (ix)  other continuing professional education courses,
    20050H0185B4517                 - 15 -     

     1  programs, activities or learning experiences sponsored by the
     2  department.
     3     * * *
     4     Section 1205.2.  Program of Continuing Professional
     5  Education.--* * *
     6     (c)  The requirements of subsection (a) may be satisfied by a
     7  professional educator, whether or not presently employed by a
     8  school entity, by the successful completion of credits or hours
     9  to include any of the following:
    10     (1)  Credits of collegiate studies related to an area of the
    11  professional educator's assignment or certification at an
    12  institution of higher education approved by the department.
    13     (2)  Credits of continuing professional education courses
    14  related to an area of the professional educator's assignment or
    15  certification conducted by providers approved by the department.
    16     (3)  Hours of other continuing professional education
    17  programs, activities or learning experiences related to an area
    18  of the professional educator's assignment or certification
    19  conducted by providers approved by the department.
    20     (4)  Credits or hours completed in any collegiate studies,
    21  continuing professional education courses or continuing
    22  professional education programs, activities or learning
    23  experiences included in the professional education plan of the
    24  professional educator's school entity and conducted by:
    25     (i)  the department;
    26     (ii)  providers approved by the department;
    27     (iii)  the professional educator's school entity; or
    28     (iv)  providers approved as part of the professional
    29  education plan of the professional educator's school entity.
    30     (5)  Credits or hours not included in clauses (1) through (4)
    20050H0185B4517                 - 16 -     

     1  approved by the board of directors of the school entity.
     2     (6)  Credits or hours required to obtain administrator
     3  certification.
     4     (7)  Credits or hours in an area other than the area of the
     5  professional educator's assignment or certification if the
     6  professional educator may be transferred by the board of
     7  directors to another assignment. The credits or hours must be
     8  approved for the professional educator by the board of
     9  directors.
    10     (8)  Successful completion of department training for service
    11  as a Distinguished Educator if the professional educator
    12  participates in and completes at least one assignment in the
    13  Distinguished Educators Program.
    14     * * *
    15     Section 2.4.  Section 1310-A of the act is amended by adding
    16  a subsection to read:
    17     Section 1310-A.  Safe Schools Advocate in School Districts of
    18  the First Class.--* * *
    19     (i)  At least eighty per centum (80%) of all appropriations
    20  for the Office of Safe Schools Advocate in fiscal year 2006-2007
    21  shall be expended by June 30, 2007, and the remaining balance of
    22  the appropriation shall be committed or encumbered by June 30,
    23  2007.
    24     Section 2.5.  Section 1402(a) of the act, amended August 9,
    25  1963 (P.L.642, No.340), is amended to read:
    26     Section 1402.  Health Services.--(a)  Each child of school
    27  age shall be given by methods established by the Advisory Health
    28  Board, (1) a vision test by a school nurse, medical technician
    29  or teacher, (2) a hearing test by a school nurse or medical
    30  technician, (3) a measurement of height and weight by a school
    20050H0185B4517                 - 17 -     

     1  nurse or teacher, who shall use the measurement to compute a
     2  child's weight-for-height ratio, (4) tests for tuberculosis
     3  under medical supervision, and (5) such other tests as the
     4  Advisory Health Board may deem advisable to protect the health
     5  of the child. Vision tests shall be given at least annually and
     6  other tests at intervals established by the Advisory Health
     7  Board.
     8     * * *
     9     Section 2.6.  Section 1422 of the act, amended January 14,
    10  1970 (1969 P.L.468, No.192), is amended to read:
    11     Section 1422.  Advisory Health Councils.--District
    12  superintendents may set up advisory health councils to study
    13  health needs [and to], assist in organizing follow-up programs[.
    14  An] and provide recommendations on the development of the local
    15  wellness policy required under section 1422.1. To every extent
    16  possible, an advisory health council shall be composed of
    17  district representatives, including a school administrator, a
    18  student and a school food service professional, and
    19  representatives of the medical and dental associations, social
    20  organizations, [veterans' organizations,] parent-teacher
    21  associations, service clubs, physical education, health
    22  education, school counseling, school psychological and social
    23  services, health and wellness professionals, including a
    24  certified school nurse and a licensed dietitian, and other
    25  family and community organizations in the area served. Those
    26  making the medical and dental examinations shall make to this
    27  advisory council an annual report, and later a report on the
    28  remedial work which has been accomplished during the school
    29  year.
    30     Section 2.7.  The act is amended by adding sections to read:
    20050H0185B4517                 - 18 -     

     1     Section 1422.1.  Local Wellness Policy.--(a)  Not later than
     2  the first day of the school year beginning after June 30, 2006,
     3  each local education agency shall, pursuant to section 204 of
     4  the Child Nutrition and WIC Reauthorization Act of 2004 (Public
     5  Law 108-265, 118 Stat. 729), establish a local wellness policy
     6  for schools within the local education agency.
     7     (b)  A local education agency to which 22 Pa. Code § 4.13
     8  (relating to strategic plans) applies shall include the local
     9  wellness policy as part of the strategic plan required under 22
    10  Pa. Code § 4.13.
    11     (c)  A local education agency may submit its local wellness
    12  policy or information on other initiatives regarding child
    13  health, nutrition and physical education to the Department of
    14  Education for inclusion in the clearinghouse established under
    15  section 1422.3(3).
    16     Section 1422.2.  Interagency Coordinating Council for Child
    17  Health , Nutrition and Physical Education.--(a)  The Secretary
    18  of Education, the Secretary of Health and the Secretary of
    19  Agriculture shall establish an interagency coordinating council
    20  which shall annually review , revise and publish a Pennsylvania
    21  Child Wellness Plan to promote child health, nutrition and
    22  physical education. The council shall be composed of employes of
    23  the Department of Education, the Department of Health and the
    24  Department of Agriculture. The Secretary of Education shall
    25  appoint the chairman of the council.
    26     (b)  The Secretary of Education shall establish an advisory
    27  committee to offer recommendations to the council. The secretary
    28  shall appoint no fewer than eight members to the advisory
    29  committee, who may include experts from the fields of health,
    30  education, research, community development and business. The
    20050H0185B4517                 - 19 -     

     1  advisory committee shall meet at least twice annually.
     2     (c)  In the initial publication of the Pennsylvania Child
     3  Wellness Plan to promote child health, nutrition and physical
     4  education, the council shall integrate the contents of the
     5  Pennsylvania Nutrition and Activity Plan to Prevent Obesity and
     6  Related Chronic Diseases, and shall include additional
     7  recommendations regarding:
     8     (1)  Nutritional guidelines for food and beverages sold in
     9  schools.
    10     (2)  Local wellness policies.
    11     (3)  Physical education curriculum.
    12     (4)  Teaching about nutrition and obesity.
    13     (5)  The utilization of any Federal funds identified by the
    14  council that may be available to local education agencies to
    15  enhance initiatives regarding child health, nutrition, physical
    16  education, local wellness policies and advisory health councils.
    17     (6)  A process through which the Secretary of Education may
    18  monitor and evaluate any outcomes that may result from the
    19  implementation of initiatives regarding child health, nutrition,
    20  physical education, local wellness policies and advisory health
    21  councils.
    22     (d)  The council shall submit the plan to the Secretary of
    23  Education, the Secretary of Health and the Secretary of
    24  Agriculture no later than May 1, 2007, and May 1 of each year
    25  thereafter. The Secretary of Education shall submit the final
    26  plan to the Governor, the President pro tempore of the Senate,
    27  the Minority Leader of the Senate, the Speaker of the House of
    28  Representatives and the Minority Leader of the House of
    29  Representatives by June 1, 2007, and June 1 of each year
    30  thereafter. The final plan shall be included on the Department
    20050H0185B4517                 - 20 -     

     1  of Education's, Department of Health's and Department of
     2  Agriculture's Internet websites.
     3     Section 1422.3.  Duties of Department of Education.--The
     4  Department of Education shall, in order to promote initiatives
     5  regarding child health, nutrition and physical education:
     6     (1)  To every extent possible, include programs related to
     7  child health, nutrition and physical education as part of the
     8  continuing professional education courses, programs, activities
     9  or learning experiences required under section 1205.2(f).
    10     (2)  Collaborate with the Department of Health to apply for
    11  Federal funds related to coordinated school health funding to
    12  enhance initiatives regarding child health, nutrition, physical
    13  education, local wellness policies and advisory health councils.
    14     (3)  Establish a clearinghouse of wellness policies and
    15  information regarding child health, nutrition and physical
    16  education submitted to the department by local education
    17  agencies pursuant to section 1422.1(c). Such information shall
    18  be made available on the department's Internet website.
    19     (4)  To every extent possible, maintain information related
    20  to teaching about nutrition and obesity, which information shall
    21  include concepts of healthy eating, including nutrient density
    22  and portion control, and the physical, psychological and
    23  nutritional causes of obesity. Such information shall be made
    24  available on the department's Internet website.
    25     Section 1512.1.  Physical Education.--  The board of school
    26  directors in every school district shall establish a curriculum
    27  aligned with Pennsylvania academic standards on health, safety
    28  and physical education that, pursuant to 22 Pa. Code § 4.27
    29  (relating to physical education and athletics), requires pupils
    30  enrolled in the district to participate in physical education.
    20050H0185B4517                 - 21 -     

     1     Section 2.8.  Section 1513 of the act is amended to read:
     2     Section 1513.  Physiology and Hygiene.--Physiology and
     3  hygiene, which shall in each division of the subject so pursued
     4  include special reference to the effect of alcoholic drinks,
     5  stimulants, and narcotics upon the human system, and which shall
     6  also include special reference to tuberculosis and its
     7  prevention, as well as nutrition and obesity, shall be
     8  introduced and studied as a regular branch by all pupils in all
     9  departments of the public schools, and in all educational
    10  institutions supported wholly or in part by appropriations from
    11  this Commonwealth.
    12     Section 2.9.  Section 1512-C(g) of the act, amended July 13,
    13  2005 (P.L.226, No.46), is amended to read:
    14  Section 1512-C.  Educational Assistance Program.
    15     * * *
    16     (g)  Educational assistance funding.--
    17         (1)  During the 2003-2004, 2004-2005 [and], 2005-2006 and
    18     2006-2007 school years, the department shall provide each
    19     eligible school entity with educational assistance funding
    20     calculated by:
    21             (i)  Dividing the number of Pennsylvania System of
    22         School Assessment tests administered in the eligible
    23         school entity on which students scored below proficient
    24         in reading or mathematics by the total number of
    25         Pennsylvania System of School Assessment tests
    26         administered in the eligible school entity in reading and
    27         mathematics during the 2002-2003 school year.
    28             (ii)  Multiplying the quotient from subparagraph (i)
    29         by the average daily membership of the eligible school
    30         entity during the 2002-2003 school year.
    20050H0185B4517                 - 22 -     

     1             (iii)  Multiplying the product from subparagraph (ii)
     2         by the dollar value of funds appropriated to the
     3         Department of Education for the Educational Assistance
     4         Program in the 2004-2005 fiscal year.
     5             (iv)  Dividing the product from subparagraph (iii) by
     6         the sum of the products of subparagraph (ii) for all
     7         eligible school entities that qualify for grant funds
     8         under this paragraph.
     9         (1.1)  During the 2005-2006 [school year] and 2006-2007
    10     school years, the department shall provide each school entity
    11     with at least one school that has failed to achieve its 2005
    12     mathematics proficiency target or its 2005 reading
    13     proficiency target with educational assistance funding for
    14     the support of tutoring services to eligible students
    15     enrolled in seventh through twelfth grades. Such funding
    16     shall be calculated as follows:
    17             (i)  Dividing the number of Pennsylvania System of
    18         School Assessment tests administered in the eligible
    19         school entity to eleventh grade students on which such
    20         students scored below the 2005 reading or mathematics
    21         proficiency target by the total number of Pennsylvania
    22         System of School Assessment tests administered in the
    23         eligible school entity to eleventh grade students in
    24         reading and mathematics during the 2003-2004 school year.
    25             (ii)  Multiplying the quotient from subparagraph (i)
    26         by the average daily membership of the eligible school
    27         entity during the 2004-2005 school year.
    28             (iii)  Multiplying the product from subparagraph (ii)
    29         by the difference between the dollar value of funds
    30         appropriated to the department for the educational
    20050H0185B4517                 - 23 -     

     1         assistance program in the 2004-2005 fiscal year and the
     2         dollar value of funds appropriated to the department for
     3         the educational assistance program in the [2005-2006]
     4         2006-2007 fiscal year.
     5             (iv)  Dividing the product from subparagraph (iii) by
     6         the sum of the products of subparagraph (ii) for all
     7         eligible school entities that qualify for grant funds
     8         under this paragraph.
     9         (2)  The amount of educational assistance funding
    10     provided under this article shall be limited to funds
    11     appropriated for this purpose.
    12     * * *
    13     Section 3.  The definition of "eligible postsecondary
    14  institution" in section 1602-B of the act, added July 13, 2005
    15  (P.L.226, No.46), is amended to read:
    16  Section 1602-B.  Definitions.
    17     The following words and phrases when used in this article
    18  shall have the meanings given to them in this section unless the
    19  context clearly indicates otherwise:
    20     * * *
    21     "Eligible postsecondary institution."  A nonprofit two-year
    22  or four-year public or private college or university or an
    23  eligible private licensed school approved to operate in this
    24  Commonwealth. [The term does not include a foreign corporation.]
    25     * * *
    26     Section 4.  Sections 1603-B and 1611-B of the act, added July
    27  13, 2005 (P.L.226, No.46), are amended to read:
    28  Section 1603-B.  Responsibilities of department and State Board
    29                     of Education.
    30     (a)  Rules and regulations.--The State Board of Education
    20050H0185B4517                 - 24 -     

     1  shall promulgate any regulations necessary to carry out the
     2  provisions of this article pursuant to the act of June 25, 1982
     3  (P.L.633, No.181), known as the Regulatory Review Act.
     4     (b)  Promotional materials.--The department shall publish
     5  promotional materials on its publicly accessible website that
     6  may be used by school entities to inform parents and students
     7  [enrolled in the school entities] about the requirements,
     8  features and opportunities of concurrent enrollment programs
     9  established under this article. To the extent that the
    10  department provides school entities with printed promotional
    11  materials for dissemination, the department shall make such
    12  materials available, upon request, to any charter school,
    13  nonpublic school, private school or home education program.
    14     (c)  Grants.--
    15         (1)  The department shall provide a grant to any school
    16     entity that has applied for grant funds under section 1611-
    17     B(c) and has approved a concurrent enrollment program as set
    18     forth in this article. The grant amount to each school entity
    19     shall be calculated for each concurrent course as follows:
    20             (i)  Determine the total approved cost for all
    21         concurrent students who are residents of the school
    22         district or enrolled in the area vocational-technical
    23         school.
    24             (ii)  Multiply the amount from subparagraph (i) by
    25         the sum of 0.425 and the market value/income aid ratio of
    26         the school entity, provided that where a concurrent
    27         student is enrolled in an area vocational-technical
    28         school, the market value/income aid ratio shall be the
    29         average of the market value/income aid ratios of the
    30         concurrent students' school districts of residence.
    20050H0185B4517                 - 25 -     

     1         (2)  (i)  The total amount of [grants provided] grant
     2         funds available for concurrent courses classified as
     3         early college high school, middle college high school or
     4         gateway to college programs shall [not exceed 4%] equal
     5         6% of the total amount of funds appropriated for
     6         concurrent enrollment programs under this article.
     7             (ii)  Where the total amount of grants provided for
     8         concurrent courses classified as early college high
     9         school, middle college high school or gateway to college
    10         programs is less than the total amount of grant funds
    11         available under this paragraph, any unexpended grant
    12         funds shall be made available for other concurrent
    13         students.
    14         (3)  (i)  The total amount of [grants provided on behalf
    15         of] grant funds available for concurrent students who are
    16         enrolled in charter schools, nonpublic schools, private
    17         schools or home education programs shall [not exceed 4%]
    18         equal 6% of the total amount of funds appropriated for
    19         concurrent enrollment programs under this article.
    20             (ii)  Where the total amount of grants provided on
    21         behalf of concurrent students who are enrolled in charter
    22         schools, nonpublic schools, private schools or home
    23         education programs is less than the total amount of grant
    24         funds available under this paragraph, any unexpended
    25         grant funds shall be made available for other concurrent
    26         students.
    27         (4)  The grant amount shall not exceed 100% of the total
    28     approved cost of a concurrent course. Where funds
    29     appropriated for this program are insufficient to fund the
    30     full amount of all grants calculated under this subsection,
    20050H0185B4517                 - 26 -     

     1     each grant amount shall be reduced on a pro rata basis.
     2     (d)  Supplemental grants.--
     3         (1)  The department shall provide a supplemental grant
     4     amount to any school entity that has applied for grant funds
     5     under section 1611-B(c) and has at least one low-income
     6     concurrent student enrolled in a concurrent course. The
     7     supplemental grant amount shall equal the cost of tuition,
     8     books and fees for which a low-income concurrent student is
     9     responsible in order to enroll in a concurrent course.
    10         (2)  (i)  The [sum of all supplemental grants provided]
    11         total amount of grant funds available under this
    12         subsection shall [not exceed 8%] equal 15% of the total
    13         amount of funds appropriated for concurrent enrollment
    14         programs under this article. Where funds available for
    15         supplemental grants are insufficient to fund the full
    16         amount of all supplemental grants under this subsection,
    17         supplemental grant amounts shall be reduced on a pro rata
    18         basis.
    19             (ii)  Where the total amount of supplemental grants
    20         provided on behalf of low-income concurrent students is
    21         less than the total amount of grant funds available under
    22         this paragraph, any unexpended grant funds shall be made
    23         available for other concurrent students.
    24     (e)  Technical assistance.--Upon request of a board of school
    25  directors of a school entity, the department shall provide
    26  technical assistance in the development of concurrent enrollment
    27  agreements and concurrent enrollment programs.
    28     (f)  Annual report.--The department shall produce an annual
    29  report on concurrent enrollment programs using the reporting
    30  information submitted by school entities under section 1611-
    20050H0185B4517                 - 27 -     

     1  B(b). The annual report shall be provided to the chairman and
     2  minority chairman of the Appropriations Committee of the Senate,
     3  the chairman and minority chairman of the Appropriations
     4  Committee of the House of Representatives, the chairman and
     5  minority chairman of the Education Committee of the Senate and
     6  the chairman and minority chairman of the Education Committee of
     7  the House of Representatives no later than February 1, 2007, and
     8  February 1 of each year thereafter. The report shall be
     9  published on the department's publicly accessible website.
    10  Section 1611-B.  Responsibilities of school entities.
    11     (a)  Concurrent enrollment program.--A school entity seeking
    12  a grant under section 1603-B(c) shall do all of the following:
    13         (1)  Enter into a concurrent enrollment agreement with an
    14     eligible postsecondary institution or institutions as
    15     required under section 1613-B.
    16         (2)  Form a concurrent enrollment committee as required
    17     under section 1612-B.
    18         (3)  (i)  Except as provided in subparagraph (ii),
    19         provide, no later than 90 days prior to the date on which
    20         an application is submitted pursuant to subsection (c),
    21         written notice of the availability of the concurrent
    22         enrollment program to:
    23                 (A)  Any nonpublic or private school for which
    24             the school entity provides free transportation as
    25             required under section 1361.
    26                 (B)  Any charter school approved to operate
    27             within the school entity.
    28                 (C)  The parents of students enrolled in a home
    29             education program under section 1327.1.
    30             (ii)  For the 2006-2007 school year, a school entity
    20050H0185B4517                 - 28 -     

     1         shall provide the information required under this
     2         subparagraph no later than 30 days prior to the date on
     3         which an application is submitted under subsection (c).
     4     (b)  Annual reporting information.--A school entity that
     5  receives a grant under section 1603-B(c) shall submit an annual
     6  report to the department. The report shall include:
     7         (1)  The eligible postsecondary institution or
     8     institutions with which the school entity has established a
     9     concurrent enrollment program.
    10         (2)  The number of concurrent students participating in a
    11     concurrent enrollment program.
    12         (3)  The number of concurrent students participating in a
    13     concurrent enrollment program who are enrolled in early
    14     college high school, middle college high school or gateway to
    15     college programs.
    16         (4)  The approved courses offered through a concurrent
    17     enrollment program.
    18         (5)  The total approved cost for each concurrent course.
    19         (6)  The total amount of grant funds received pursuant to
    20     section 1603-B(c).
    21         (7)  The number of concurrent students enrolled in
    22     charter schools, nonpublic schools, private schools or home
    23     education programs.
    24     (c)  Application for grant funds.--A school entity seeking
    25  grant funds under section 1603-B(c) for the 2005-2006 school
    26  year shall submit an application to the department no later than
    27  September 15, 2005.[, and August 15 of each year thereafter.]
    28         (1)  A school entity seeking grant funds under section
    29     1603-B(c) for the 2006-2007 school year shall submit an
    30     application to the department no later than August 15, 2006.
    20050H0185B4517                 - 29 -     

     1         (2)  A school entity seeking grant funds under section
     2     1603-B(c) for the 2007-2008 school year and each school year
     3     thereafter shall submit an application to the department no
     4     later than February 15. The application shall include:
     5         [(1)] (i)  The total approved cost of each concurrent
     6     course included in the concurrent enrollment agreement.
     7         [(2)] (ii)  The number of concurrent students to be
     8     enrolled in each concurrent course pursuant to the concurrent
     9     enrollment agreement.
    10         [(3)] (iii)  The cost of tuition, books and fees for
    11     which a student will be responsible in order to enroll in
    12     each concurrent course included in the concurrent enrollment
    13     agreement.
    14         [(4)] (iv)  The number of low-income concurrent students
    15     to be enrolled in each concurrent course pursuant to the
    16     concurrent enrollment agreement.
    17         [(5)] (v)  The number of concurrent students to be
    18     enrolled in early college high school, middle college high
    19     school or gateway to college programs pursuant to the
    20     concurrent enrollment agreement.
    21         [(6)] (vi)  The eligible postsecondary institutions at
    22     which concurrent courses will be offered pursuant to the
    23     concurrent enrollment agreement.
    24             (vii)  The number of concurrent students enrolled in
    25         charter schools, nonpublic schools, private schools or
    26         home education programs.
    27     (d)  Use of grant funds.--A school entity shall use the
    28  grants provided under section 1603-B(c) and (d) to pay the
    29  portion of total approved costs for which it is provided grants.
    30     (e)  Limitation.--A school entity shall not be responsible
    20050H0185B4517                 - 30 -     

     1  for the payment of any portion of the total approved costs for
     2  any concurrent student enrolled in a charter school, nonpublic
     3  school, private school or home education program in excess of
     4  the grants provided under section 1603-B(c) and (d).
     5     (f)  Construction.--Nothing in this article shall be
     6  construed to preclude a school entity that does not receive a
     7  grant under section 1603-B(c) from continuing or entering into
     8  an agreement with an institution of higher education under the
     9  provisions of section 1525.
    10     Section 4.1.  Section 1726-A of the act, amended December 9,
    11  2002 (P.L.1472, No.187), is amended to read:
    12     Section 1726-A.  Transportation.--(a)  Students who attend a
    13  charter school located in their school district of residence, a
    14  regional charter school of which the school district is a part
    15  or a charter school located outside district boundaries at a
    16  distance not exceeding ten (10) miles by the nearest public
    17  highway shall be provided free transportation to the charter
    18  school by their school district of residence[. School districts
    19  of the first class shall also provide transportation to the
    20  students if they are the same age or are enrolled in the same
    21  grade, grades or their grade equivalents as any students of the
    22  district for whom transportation is provided under any program
    23  or policy to the schools of the district. Notwithstanding any
    24  provision of law to the contrary, transportation shall be
    25  provided to charter school students by their school district of
    26  residence] on such dates and periods that the charter school is
    27  in regular session whether or not transportation is provided on
    28  such dates and periods to students attending schools of the
    29  district. Transportation is not required for elementary
    30  students, including kindergarten students, residing within one
    20050H0185B4517                 - 31 -     

     1  and one-half (1.5) miles or for secondary students residing
     2  within two (2) miles of the nearest public highway from the
     3  charter school in which the students are enrolled unless the
     4  road or traffic conditions are such that walking constitutes a
     5  hazard to the safety of the students when so certified by the
     6  Department of Transportation, except that if the school district
     7  provides transportation to the public schools of the school
     8  district for elementary students, including kindergarten
     9  students, residing within one and one-half (1.5) miles or for
    10  secondary students residing within two (2) miles of the nearest
    11  public highway under nonhazardous conditions, transportation
    12  shall also be provided to charter schools under the same
    13  conditions. Districts providing transportation to a charter
    14  school outside the district shall be eligible for payments under
    15  section 2509.3 for each public school student transported.
    16     (a.1)  In addition to any other requirements in this section,
    17  school districts of the first class shall provide transportation
    18  to students who attend a charter school if they are the same age
    19  or are enrolled in the same grade, grades or their grade
    20  equivalents as any of the students of the school district for
    21  whom transportation is provided under any program or policy to
    22  the schools of the school district.
    23     (b)  In the event that the Secretary of Education determines
    24  that a school district is not providing the required
    25  transportation to students to the charter school, the Department
    26  of Education shall pay directly to the charter school funds for
    27  costs incurred in the transportation of its students. Payments
    28  to a charter school shall be determined in the following manner:
    29  for each eligible student transported, the charter school shall
    30  receive a payment equal to the total expenditures for
    20050H0185B4517                 - 32 -     

     1  transportation of the school district divided by the total
     2  number of school students transported by the school district
     3  under any program or policy.
     4     (c)  The department shall deduct the amount paid to the
     5  charter school under subsection (b) from any and all payments
     6  made to the district.
     7     (d)  A school district of the first class shall submit a copy
     8  of its current transportation policy to the department no later
     9  than August 1 of each year.
    10     Section 5.  Section 1702-B of the act is amended by adding a
    11  definition to read:
    12     Section 1702-B.  Definitions.--For purposes of this article,
    13  the following terms shall have the following meanings:
    14     "Commonwealth partnership school district."  A school
    15  district for which within sixty (60) days of the effective date
    16  of this definition the Secretary of Education has determined all
    17  of the following:
    18     (1)  The school district has experienced a decline of fifteen
    19  per centum (15%) or more in student enrollment during the
    20  immediately preceding five-year period.
    21     (2)  The school district has experienced a loss of revenue
    22  during the immediately preceding three-year period due to the
    23  statutory removal of one or more of the sources of revenue made
    24  available pursuant to section 652.1.
    25     (3)  The school district has an equalized millage for the
    26  2004-2005 fiscal year of greater than twenty-seven (27).
    27     * * *
    28     Section 6.  Section 1703-B(a) 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:
    20050H0185B4517                 - 33 -     

     1     Section 1703-B.  Education Empowerment List.--(a)  The
     2  department shall place a school district that has a history of
     3  low test performance [or], a history of financial distress or is
     4  designated by the secretary as a Commonwealth partnership school
     5  district on an education empowerment list. The department shall
     6  immediately notify the school district of its placement on the
     7  education empowerment list and shall publish the list in the
     8  Pennsylvania Bulletin. A school district may petition the
     9  department to exclude from its calculation under this subsection
    10  or section 1707-B(a.1) the PSSA test score of any student who
    11  was enrolled in the district for less than ninety (90)
    12  instructional days of the school year in which the test was
    13  administered.
    14     * * *
    15     (e.2)  (1)  Where a school district has been placed on the
    16  education empowerment list due to the designation by the
    17  secretary as a Commonwealth partnership school district, the
    18  school district improvement plan developed pursuant to
    19  subsection (c) shall give priority consideration to and set
    20  forth specific goals for improving the financial stability of
    21  the school district. The plan shall include implementation and
    22  completion plans for any realignment plan reducing excess
    23  capacity adopted by the board of school directors and any plans
    24  for increasing the level of achievement of African-American
    25  students.
    26     (2)  Within thirty (30) days of notification of its
    27  designation as a Commonwealth partnership school district, the
    28  school district shall submit to the secretary for approval a
    29  plan for more efficient and effective management of school
    30  district special education programs. In addition to any other
    20050H0185B4517                 - 34 -     

     1  elements the plan may include, the plan shall describe how
     2  special education services should most appropriately be targeted
     3  to ensure that all services meet the needs of each child and are
     4  provided in the most economical setting.
     5     (3)  The secretary may make revisions to this plan to ensure
     6  that the educational needs of the students and the fiscal
     7  constraints of the school district are fully addressed.
     8     (4)  The department shall review the school district's
     9  progress on an annual basis in order to determine whether the
    10  school district is on track to meet the requirements set forth
    11  in this section by the end of the three-year period.
    12     (5)  If the school district does not demonstrate sufficient
    13  progress, the secretary may request revision of the plan to the
    14  extent necessary to ensure the goals are achieved.
    15     (6)  The school district shall submit to the secretary on a
    16  quarterly basis reports that outline the steps taken to
    17  implement the actions outlined in the plan and the progress
    18  made. The secretary may ask for additional reports if necessary.
    19     (7)  Nothing within this provision shall be construed as
    20  conflicting with any provision of Federal or State special
    21  education law.
    22     * * *
    23     Section 7.  Section 1704-B of the act is amended by adding a
    24  subsection to read:
    25     Section 1704-B.  Board of School Directors.--* * *
    26     (c)  (1)  In addition to all current rights, powers,
    27  privileges, prerogatives and duties, a board of school directors
    28  of a school district that has been placed on the empowerment
    29  list due to the designation by the secretary as a Commonwealth
    30  partnership school district shall have the power to cancel or
    20050H0185B4517                 - 35 -     

     1  renegotiate any contract, other than collective bargaining
     2  agreements, for the purpose of making necessary economies in the
     3  operation of the schools within the school district; eliminate
     4  nonprofessional positions for services nonessential for the
     5  operation of the school district; or enter into agreements with
     6  individuals, for-profit or nonprofit organizations for the
     7  operation of school buildings or groups of school buildings or
     8  for the provision of educational or other types of services to
     9  or for the school district.
    10     (2)  The superintendent shall be responsible for the
    11  implementation of a system of performance review of school
    12  administrators, as approved by the board of school directors.
    13  Administrator performance shall be evaluated on the basis of
    14  abilities and effectiveness to manage the operation of the
    15  school facilities and staff, manage resources, provide
    16  instructional leadership, implement and administer the school
    17  budget and promote and maintain a positive educational learning
    18  environment.
    19     (3)  Based upon an unsatisfactory review and evaluation of a
    20  school administrator arising from the implementation of the
    21  program established in paragraph (2), a board of school
    22  directors may reassign, transfer or suspend the school
    23  administrator without regard to section 1125.1 or 1151.
    24     (4)  Based upon an unsatisfactory review and evaluation of a
    25  school administrator arising from the implementation of the
    26  program established in paragraph (2), a board of school
    27  directors may dismiss the school administrator pursuant to the
    28  procedure contained in section 1127, provided, that the board of
    29  school directors shall afford the school administrator notice
    30  and an opportunity to be heard pursuant to 2 Pa.C.S. Ch. 5
    20050H0185B4517                 - 36 -     

     1  Subch. B (relating to practice and procedure of local agencies).
     2     (5)  As used in this subsection, "school administrator" shall
     3  have the same meaning given to it under section 1164.
     4     (6)  This subsection shall expire June 30, 2012.
     5     Section 7.1.  Section 1705-B(h) of the act, amended December
     6  9, 2002 (P.L.1472, No.187), and July 13, 2005 (P.L.226, No.46),
     7  is amended to read:
     8     Section 1705-B.  Education Empowerment Districts.--* * *
     9     (h)  (1)  A school district under a declaration of distress
    10  pursuant to section 691(a) and certified as an education
    11  empowerment district shall be operated by a special board of
    12  control established under section 692. A board of control
    13  established under this section shall be abolished upon the
    14  appointment of a special board of control under section 692.
    15     (2)  For a school district under a declaration of distress
    16  pursuant to section 691(a) and certified as an education
    17  empowerment district, the special board of control established
    18  under section 692 shall have the powers and duties of a special
    19  board of control under section 692 and the powers and duties
    20  contained in section 1706-B.
    21     (3)  For a school district with a history of low test
    22  performance that is certified as distressed for a minimum period
    23  of two (2) years under sections 691 and 692, the department
    24  shall waive the inclusion of the school district on the
    25  education empowerment list under section 1703-B(a) and
    26  immediately certify the school district as an education
    27  empowerment district.
    28     (4)  The department may utilize up to [$2,875,000] $3,500,000
    29  of undistributed funds not expended, encumbered or committed
    30  from appropriations for grants and subsidies made to the
    20050H0185B4517                 - 37 -     

     1  department to assist school districts certified as an education
     2  empowerment district under paragraph (3). There is hereby
     3  established a restricted account from which payments under this
     4  paragraph shall be paid. Funds shall be transferred by the
     5  Secretary of the Budget to the restricted account to the extent
     6  necessary to make payments under this paragraph. Funds in the
     7  restricted account are hereby appropriated to carry out the
     8  purposes of this paragraph. The subsidy payment from this
     9  account shall be utilized to supplement the operational budget
    10  of the eligible school districts. This paragraph shall apply to
    11  fiscal years 2000-2001, 2001-2002, 2002-2003, 2003-2004, 2004-
    12  2005 [and], 2005-2006 and 2006-2007 and shall expire June 30,
    13  [2006] 2007.
    14     Section 8.  Section 1709-B(c.1) of the act, amended December
    15  23, 2003 (P.L.304, No.48), is amended to read:
    16     Section 1709-B.  School Improvement Grants.--* * *
    17     (c.1)  Where the school district is on the education
    18  empowerment list due to a history of financial distress or to a
    19  designation by the secretary as a Commonwealth partnership
    20  school district, grants shall be provided annually to the school
    21  district for use as directed by the school district empowerment
    22  team in implementing the school district improvement plan
    23  developed pursuant to section 1703-B.
    24     * * *
    25     Section 8.1.  Section 1714.1-B of the act, amended July 4,
    26  2004 (P.L.536, No.70), is amended to read:
    27     Section 1714.1-B.  Limitation.--[Notwithstanding] With the
    28  exception of any designation by the secretary as a Commonwealth
    29  partnership school district and as provided pursuant to section
    30  1703-B, notwithstanding any other provision of this article, no
    20050H0185B4517                 - 38 -     

     1  school district shall be placed on the education empowerment
     2  list under section 1703-B or certified as an education
     3  empowerment district under section 1705-B or 1707-B on or after
     4  June 1, 2004. Any placement or certification that occurs on or
     5  after June 1, 2004, shall be null and void.
     6     Section 9.  Section 1903-C of the act is amended by adding a
     7  paragraph to read:
     8     Section 1903-C.  Alternative Education Grants.--The
     9  department shall establish grants for alternative education
    10  programs which meet the requirements of this article, to include
    11  the following:
    12     * * *
    13     (4)  The department is authorized to utilize for
    14  administrative purposes up to one per centum (1%) of the funds
    15  appropriated for safe and alternative schools that are not
    16  expended, encumbered or committed.
    17     Section 9.1.  The act is amended by adding a section to read:
    18     Section 1906-C.  Alternative Education Demonstration
    19  Grants.--Grants to school districts from funds appropriated for
    20  alternative education demonstration grants shall be used only
    21  for behavioral programs and programs for disruptive students.
    22     Section 9.2.  Section 1905-D of the act is amended by adding
    23  a subsection to read:
    24     Section 1905-D.  State Funding.--* * *
    25     (d)  Grants from funds appropriated to community education
    26  councils in any fiscal year shall be paid in an amount no less
    27  than and in the same manner as payments in fiscal year 2005-
    28  2006. If a community education council ceases to exist, the
    29  funds may be distributed to the remaining community education
    30  councils on a pro rata basis.
    20050H0185B4517                 - 39 -     

     1     Section 9.3.  The act is amended by adding a section to read:
     2     Section 2020-A.  Articulation Agreements.--Funds appropriated
     3  for program initiatives, including performance measurement and
     4  system-wide technology initiatives, shall be contingent upon the
     5  State System of Higher Education making all articulation
     6  agreements with other higher education institutions available on
     7  its Internet website.
     8     Section 10.  Section 2002-B of the act, amended December 23,
     9  2003 (P.L.304, No.48), is amended to read:
    10  Section 2002-B.  Definitions.
    11     The following words and phrases when used in this article
    12  shall have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Business firm."  An entity authorized to do business in this
    15  Commonwealth and subject to taxes imposed under Article IV, VI,
    16  VII, VII-A, VIII, VIII-A, IX or XV of the act of March 4, 1971
    17  (P.L.6, No.2), known as the Tax Reform Code of 1971.
    18     "Contribution."  A donation of cash, personal property or
    19  services the value of which is the net cost of the donation to
    20  the donor or the pro rata hourly wage, including benefits, of
    21  the individual performing the services.
    22     "Department."  The Department of Community and Economic
    23  Development of the Commonwealth.
    24     "Educational improvement organization."  A nonprofit entity
    25  which:
    26         (1)  is exempt from Federal taxation under section
    27     501(c)(3) of the Internal Revenue Code of 1986 (Public Law
    28     99-514, 26 U.S.C. § 1 et seq.); and
    29         (2)  contributes at least 80% of its annual receipts as
    30     grants to a public school for innovative educational
    20050H0185B4517                 - 40 -     

     1     programs.
     2  For purposes of this definition, a nonprofit entity
     3  "contributes" its annual cash receipts when it expends or
     4  otherwise irrevocably encumbers those funds for expenditure
     5  during the then current fiscal year of the nonprofit entity or
     6  during the next succeeding fiscal year of the nonprofit entity.
     7     "Eligible pre-kindergarten student."  [A] For participation
     8  in the pre-kindergarten scholarship program, a student who is
     9  enrolled in a pre-kindergarten program and is a member of a
    10  household with an annual household income of not more than
    11  $50,000. An income allowance of $10,000 shall be allowed for
    12  each eligible student and dependent member of the household.
    13     "Eligible student."  A school-age student who is enrolled in
    14  a school and is a member of a household with an annual household
    15  income of not more than $50,000. An income allowance of $10,000
    16  shall be allowed for each eligible student and dependent member
    17  of the household.
    18     "Household."  An individual living alone or with the
    19  following: a spouse, parent and their unemancipated minor
    20  children; and other unemancipated minor children who are related
    21  by blood or marriage; or other adults or unemancipated minor
    22  children living in the household who are dependent upon the
    23  individual.
    24     "Household income."  All moneys or property received of
    25  whatever nature and from whatever source derived. The term does
    26  not include the following:
    27         (1)  Periodic payments for sickness and disability other
    28     than regular wages received during a period of sickness or
    29     disability.
    30         (2)  Disability, retirement or other payments arising
    20050H0185B4517                 - 41 -     

     1     under workers' compensation acts, occupational disease acts
     2     and similar legislation by any government.
     3         (3)  Payments commonly recognized as old-age or
     4     retirement benefits paid to persons retired from service
     5     after reaching a specific age or after a stated period of
     6     employment.
     7         (4)  Payments commonly known as public assistance or
     8     unemployment compensation payments by a governmental agency.
     9         (5)  Payments to reimburse actual expenses.
    10         (6)  Payments made by employers or labor unions for
    11     programs covering hospitalization, sickness, disability or
    12     death, supplemental unemployment benefits, strike benefits,
    13     Social Security and retirement.
    14         (7)  Compensation received by United States servicemen
    15     serving in a combat zone.
    16     "Innovative educational program."  An advanced academic or
    17  similar program that is not part of the regular academic program
    18  of a public school but that enhances the curriculum or academic
    19  program of the public school[.] or provides pre-kindergarten
    20  programs to public school students.
    21     "Pre-kindergarten program."  A program of instruction for
    22  three-year-old or four-year-old students that utilizes a
    23  curriculum aligned with the curriculum of the school with which
    24  it is affiliated and which provides a minimum of two hours of
    25  instructional and developmental activities per day at least 60
    26  days per school year.
    27     "Pre-kindergarten scholarship organization."  A nonprofit
    28  entity which:
    29         (1)  either is exempt from Federal taxation under section
    30     501(c)(3) of the Internal Revenue Code of 1986 (Public Law
    20050H0185B4517                 - 42 -     

     1     99-514, 26 U.S.C. § 1 et seq.) or is operated as a separate
     2     segregated fund by a scholarship organization that has been
     3     qualified under section 2003-B; and
     4         (2)  contributes at least 80% of its annual cash receipts
     5     to a pre-kindergarten scholarship program by expending or
     6     otherwise irrevocably encumbering those funds for
     7     distribution during the then current fiscal year of the
     8     organization or during the next succeeding fiscal year of the
     9     organization.
    10     "Pre-kindergarten scholarship program."  A program to provide
    11  tuition to eligible pre-kindergarten students to attend a pre-
    12  kindergarten program operated by or in conjunction with a school
    13  located in this Commonwealth and that includes an application
    14  and review process for the purpose of making awards to eligible
    15  pre-kindergarten students and awards scholarships to eligible
    16  pre-kindergarten students without limiting availability to only
    17  students of one school.
    18     "Public school."  A public pre-kindergarten where compulsory
    19  attendance requirements do not apply or a public kindergarten,
    20  elementary school or secondary school at which the compulsory
    21  attendance requirements of this Commonwealth may be met and
    22  which meets the applicable requirements of Title VI of the Civil
    23  Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).
    24     "Scholarship organization."  A nonprofit entity which:
    25         (1)  is exempt from Federal taxation under section
    26     501(c)(3) of the Internal Revenue Code of 1986 (Public Law
    27     99-514, 26 U.S.C. § 1 et seq.); and
    28         (2)  contributes at least 80% of its annual cash receipts
    29     to a scholarship program.
    30  For purposes of this definition, a nonprofit entity
    20050H0185B4517                 - 43 -     

     1  "contributes" its annual cash receipts to a scholarship program
     2  when it expends or otherwise irrevocably encumbers those funds
     3  for distribution during the then current fiscal year of the
     4  nonprofit entity or during the next succeeding fiscal year of
     5  the nonprofit entity.
     6     "Scholarship program."  A program to provide tuition to
     7  eligible students to attend a school located in this
     8  Commonwealth. A scholarship program must include an application
     9  and review process for the purpose of making awards to eligible
    10  students. The award of scholarships to eligible students shall
    11  be made without limiting availability to only students of one
    12  school.
    13     "School."  A public or nonpublic pre-kindergarten,
    14  kindergarten, elementary school or secondary school at which the
    15  compulsory attendance requirements of the Commonwealth may be
    16  met and which meets the applicable requirements of Title VI of
    17  the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).
    18     "School age."  Children from the earliest admission age to a
    19  school's pre-kindergarten or kindergarten program or, when no
    20  pre-kindergarten or kindergarten program is provided, the
    21  school's earliest admission age for beginners, until the end of
    22  the school year the student attains 21 years of age or
    23  graduation from high school, whichever occurs first.
    24     Section 10.1.  Section 2006-B(a) of the act, amended December
    25  23, 2003 (P.L.304, No.48) and July 13, 2005 (P.L.226, No.46), is
    26  amended to read:
    27  Section 2006-B.  Limitations.
    28     (a)  Amount.--
    29         (1)  The total aggregate amount of all tax credits
    30     approved shall not exceed [$44,000,000] $54,000,000 in a
    20050H0185B4517                 - 44 -     

     1     fiscal year. No less than [$29,333,333] $36,000,000 of the
     2     total aggregate amount shall be used to provide tax credits
     3     for contributions from business firms to scholarship
     4     organizations. No less than [$14,666,666] $18,000,000 of the
     5     total aggregate amount shall be used to provide tax credits
     6     for contributions from business firms to educational
     7     improvement organizations.
     8         (2)  For the fiscal year 2004-2005 and each fiscal year
     9     thereafter, the total aggregate amount of all tax credits
    10     approved for contributions from business firms to pre-
    11     kindergarten scholarship programs shall not exceed $5,000,000
    12     in a fiscal year.
    13     * * *
    14     Section 10.2.  The act is amended by adding an article to
    15  read:
    16                            ARTICLE XX-C
    17                    TRANSFERS OF CREDITS BETWEEN
    18                  INSTITUTIONS OF HIGHER EDUCATION
    19  Section 2001-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     "Career, technical or applied courses."  Courses usually
    24  offered as part of an associate degree curriculum designed to
    25  prepare students for entry level professions not for transfer to
    26  baccalaureate programs for advanced studies.
    27     "Community college."  An institution created pursuant to
    28  Article XIX-A or the act of August 24, 1963 (P.L.1132, No.484),
    29  known as the Community College Act of 1963.
    30     "Degree objective courses."  Courses required for completion
    20050H0185B4517                 - 45 -     

     1  of a major in a subject area.
     2     "Department."  The Department of Education of the
     3  Commonwealth.
     4     "Developmental or remedial courses."  Courses typically
     5  consisting of reading, writing and math designed to prepare
     6  students for college-level courses and that are not
     7  transferable.
     8     "Equivalent courses."  Courses determined to have generally
     9  equivalent content and level as determined by the faculty of an
    10  institution of higher education consistent with the policy at
    11  each institution.
    12     "Foundation courses."  Courses required to be completed by
    13  students that provide an academic foundation for the degree,
    14  general education or advanced study in a major.
    15     "Independent institution of higher education."  An
    16  institution of higher education which is operated not for
    17  profit, located in and incorporated or chartered by the
    18  Commonwealth and entitled to confer degrees as set forth in 24
    19  Pa.C.S. § 6505 (relating to power to confer degrees) and to
    20  apply to itself the designation "college" or "university" as
    21  provided for by the standards and qualifications prescribed by
    22  the State Board of Education pursuant to 24 Pa.C.S. Ch. 65
    23  (relating to private colleges, universities and seminaries).
    24     "Public institution of higher education."  A community
    25  college or an institution which is part of the State System of
    26  Higher Education pursuant to Article XX-A.
    27     "State-related institution."  The Pennsylvania State
    28  University, the University of Pittsburgh, Temple University,
    29  Lincoln University and their branch campuses.
    30     "Transfer and Articulation Oversight Committee."  The
    20050H0185B4517                 - 46 -     

     1  committee established under section 2004-C.
     2  Section 2002-C.  Duties of public institutions of higher
     3  education.
     4     (a)  Completion.--Each public institution of higher education
     5  shall complete all of the following by June 30, 2008:
     6         (1)  Participate in the development and implementation of
     7     equivalency standards pursuant to section 2004-C(c)(1).
     8         (2)  Establish and maintain records and data detailing
     9     the credits transferred to and received from other public
    10     institutions of higher education as the department may
    11     prescribe.
    12         (3)  Make any reasonable changes and modifications to its
    13     foundation courses, including the strengthening of the
    14     courses, to ensure equivalency of those credits among the
    15     public institutions of higher education, as recommended by
    16     the Transfer and Articulation Oversight Committee.
    17         (4)  Agree to accept for transfer foundation courses
    18  determined to meet equivalency standards under section 2004-
    19  C(c)(2).
    20     (b)  Reporting requirements.--
    21     A public institution of higher education shall submit to the
    22  department a series of interim reports outlining the actions
    23  that the public institution of higher education has undertaken
    24  or intends to undertake to comply with subsection (a), which
    25  shall be filed December 31, 2006, June 30, 2007, and December
    26  31, 2007.
    27  Section 2003-C.  Duties of public institutions of higher
    28                 education and State-related institutions.
    29     (a)  Agreements.--Each public institution of higher education
    30  and State-related institution shall provide the Transfer and
    20050H0185B4517                 - 47 -     

     1  Articulation Oversight Committee with copies of all articulation
     2  agreements for inclusion in the electronic database or software
     3  program and portal provided for under section 2005-C(4), within
     4  180 days of the effective date of this section.
     5     (b)  Reporting requirements.--The following shall apply to
     6  reporting requirements:
     7         (1)  Each public institution of higher education and
     8     State-related institution shall submit to the department a
     9     series of interim reports that describe the status of the
    10     institution's articulation agreements, which shall include
    11     all of the following:
    12             (i)  The number of students who have transferred to
    13         the public institution of higher education or State-
    14         related institution by institution of origin within the
    15         last academic year or since submittal of the
    16         institution's last interim report required under this
    17         section.
    18             (ii)  The total number of credits completed by
    19         transfer students at the institution of origin.
    20             (iii)  The total number of credits from each
    21         institution of origin that transferred to the public
    22         institution of higher education or State-related
    23         institution for each academic year.
    24             (iv)  An explanation of the credit transfer process
    25         at the institution.
    26             (v)  Any other information related to the credit
    27         transfer process as requested by the department including
    28         the useability of transfer credits.
    29         (2)  Each public institution of higher education and
    30     State-related institution shall submit its first interim
    20050H0185B4517                 - 48 -     

     1     report required under this section 180 days after the
     2     effective date of this section.
     3         (3)  Each public institution of higher education and
     4     State-related institution shall submit a subsequent report
     5     every two years from the date of the first interim report.
     6     This paragraph shall expire on July 1, 2012.
     7  Section 2004-C.  Transfer and Articulation Oversight Committee.
     8     (a)  Establishment and membership.--
     9         (1)  In order to develop and implement equivalency
    10     standards as provided for in subsection (c)(1), there is
    11     hereby established within the department, the Transfer and
    12     Articulation Oversight Committee. The committee shall be
    13     comprised of the following members:
    14             (i)  The Secretary of Education or his designee, who
    15         shall serve as chair of the committee.
    16             (ii)  Members appointed by the secretary as follows:
    17                 (A)  one member representing each of the
    18             community colleges and one member representing the
    19             Commission for Community Colleges;
    20                 (B)  one member representing each institution of
    21             the State System of Higher Education and one member
    22             representing the Office of the Chancellor;
    23                 (C)  one member representing each of the State-
    24             related institutions, who shall serve as a nonvoting
    25             member but shall retain all other duties associated
    26             with membership on the committee. If the State-
    27             related institution elects to participate under
    28             section 2006-C, the member representing the State-
    29             related institution shall be entitled to vote; and
    30                 (D)  one member representing each independent
    20050H0185B4517                 - 49 -     

     1             institution of higher education that elects to
     2             participate under section 2006-C.
     3         (2)  Members shall be appointed to four-year terms. Terms
     4     of committee members shall be staggered.
     5     (b)  Dispute resolution subcommittee.--
     6         (1)  The chair of the committee shall appoint a dispute
     7     resolution subcommittee comprised of:
     8             (i)  three members appointed under subsection
     9         (a)(1)(ii)(A);
    10             (ii)  three members appointed under subsection
    11         (a)(1)(ii)(B); and
    12             (iii)  one member appointed under subsection
    13         (a)(1)(ii)(D).
    14         (2)  The chair of the committee may add members to the
    15     dispute resolution subcommittee.
    16         (3)  The dispute resolution subcommittee shall develop
    17     dispute resolution policies and procedures to be utilized
    18     when disputes arise relating to the transfer and application
    19     of credits under this article.
    20     (c)  Duties of Transfer and Articulation Oversight
    21  Committee.--The committee shall:
    22         (1)  Within 180 days of the effective date of this
    23     section, develop, in consultation with faculty and personnel,
    24     equivalency standards for foundation courses and provide
    25     these standards to the department, the Education Committee of
    26     the Senate, the Education Committee of the House of
    27     Representatives, the Appropriations Committee of the Senate
    28     and the Appropriations Committee of the House of
    29     Representatives.
    30         (2)  Within one year of the effective date of this
    20050H0185B4517                 - 50 -     

     1     section, determine equivalent courses for at least 30 hours
     2     of foundation courses, not including developmental or
     3     remedial courses or career, technical or applied courses, in
     4     consultation with faculty and personnel.
     5         (3)  Develop an assessment/evaluation plan and identify
     6     appropriate information and collect appropriate data to
     7     ensure the effectiveness of section 2002-C and make necessary
     8     revisions thereto over time.
     9         (4)  Review interim reports submitted to the department
    10     and, within 90 days of receipt of each report, recommend to
    11     the department action to be taken by the committee to enable
    12     the transfer of credits among public institutions of higher
    13     education and institutions that elect to participate under
    14     section 2006-C.
    15         (5)  Submit an annual report to the General Assembly that
    16     details the progress made by the public institutions of
    17     higher education and institutions that elect to participate
    18     under section 2006-C in furtherance of enabling the transfer
    19     of credits between such institutions and which recommends
    20     further action to be taken.
    21  Section 2005-C.  Duties of department.
    22     The department shall:
    23         (1)  Convene a meeting, within 60 days of the effective
    24     date of this section, of the Transfer and Articulation
    25     Oversight Committee.
    26         (2)  Request information and data from the public
    27     institutions of higher education and institutions that elect
    28     to participate under section 2006-C, so as to identify
    29     foundation courses offered at the institutions and any
    30     articulation agreements currently established between the
    20050H0185B4517                 - 51 -     

     1     institutions that include foundation courses.
     2         (3)  Provide technical assistance to the public
     3     institutions of higher education and the institutions that
     4     elect to participate under section 2006-C.
     5         (4)  Provide for an electronic database or software
     6     program and portal for the purpose of providing access to all
     7     of the following information on an Internet website:
     8             (i)  Articulation agreements entered into by public
     9         institutions of higher education and institutions that
    10         elect to participate under section 2006-C.
    11             (ii)  The annual report to the General Assembly as
    12         required by section 2004-C(c)(5).
    13             (iii)  At the request of a public institution of
    14         higher education or an institution that elects to
    15         participate under section 2006-C, any articulation
    16         agreements.
    17  Section 2006-C.  Participation by independent institutions of
    18                     higher education or State-related
    19                     institution.
    20     An independent institution of higher education or a State-
    21  related institution may elect to participate through the
    22  adoption of equivalency standards as provided for in subsection
    23  2004-C(c)(1) by its governing body.
    24  Section 2007-C.  Applicability.
    25     Nothing in this article shall do any of the following:
    26         (1)  Preclude any institution of higher education from
    27     establishing institution-to-institution articulation
    28     agreements.
    29         (2)  Void articulation agreements that have been
    30     established prior to the effective date of this section.
    20050H0185B4517                 - 52 -     

     1     Section 10.3.  The act is amended by adding a section to
     2  read:
     3     Section 2135.  Transportation of Certain Students.--For a
     4  school district of the first class, funds appropriated in any
     5  fiscal year for safe and alternative schools shall be used to
     6  pay costs to provide school bus transportation services for
     7  students in alternative education programs operated either by
     8  the school district or under a contract between the school
     9  district and a private alternative education institution as
    10  defined under Article XIX-E before it may be used for other
    11  alternative education programs or services.
    12     Section 11.  Section 2501 of the act is amended by adding a
    13  clause to read:
    14     Section 2501.  Definitions.--For the purposes of this article
    15  the following terms shall have the following meanings:
    16     * * *
    17     (25)  "Adjusted Current Expenditure per Average Daily
    18  Membership."  An amount equal to a school district's current
    19  expenditures for a school year, as defined in clause (24), minus
    20  the revenue account tuition for patrons, as designated in the
    21  Manual of Accounting and Related Financial Procedures for
    22  Pennsylvania School Systems, divided by the average daily
    23  membership of the school district for the same school year.
    24     Section 12.  Section 2502.13 of the act is amended by adding
    25  a subsection to read:
    26     Section 2502.13.  Small District Assistance.--* * *
    27     (l)  For the school year 2005-2006, the Commonwealth shall
    28  pay to each school district which has an average daily
    29  membership of one thousand five-hundred (1,500) or less and a
    30  market value/income aid ratio of five thousand ten-thousandths
    20050H0185B4517                 - 53 -     

     1  (0.5000) or greater an amount equal to seventy dollars ($70)
     2  multiplied by that district's average daily membership and by
     3  that district's market value/income aid ratio.
     4     Section 13.  The act is amended by adding sections to read:
     5     Section 2502.45.  Basic Education Funding for 2005-2006
     6  School Year.--For the 2005-2006 school year, the Commonwealth
     7  shall pay to each school district a basic education funding
     8  allocation which shall consist of the following:
     9     (1)  An amount equal to the basic education funding
    10  allocation for the 2004-2005 school year pursuant to sections
    11  2502.13, 2502.44 and 2504.4.
    12     (2)  Where the school district received a grant under section
    13  1709-B during the 2005-2006 school year, but is not eligible to
    14  receive such a grant during the 2006-2007 school year, an amount
    15  equal to the grant amount the district received during the 2005-
    16  2006 school year multiplied by fifty percent (50%).
    17     (3)  An amount equal to any payment made pursuant to section
    18  2502.10 during the 2004-2005 school year.
    19     (4)  Where the school district received payments under
    20  section 34 of the act of June 29, 2002 (P.L.524, No.88),
    21  entitled "An act amending the act of March 10, 1949 (P.L.30,
    22  No.14), entitled 'An act relating to the public school system,
    23  including certain provisions applicable as well to private and
    24  parochial schools; amending, revising, consolidating and
    25  changing the laws relating thereto,' further defining the
    26  "Pennsylvania System of School Assessment test" or "PSSA test";
    27  providing for report of graduate rates for certain colleges and
    28  universities; further providing for establishment of independent
    29  schools, for school athletics, publications and organizations,
    30  for retention of records and for annual budgets; providing for
    20050H0185B4517                 - 54 -     

     1  membership of the School Reform Commission and responsibilities
     2  relating to financial matters of first class school districts in
     3  distress; further providing for intermediate unit board of
     4  directors; providing for conditional employment; further
     5  providing for age limits and temporary residence and for
     6  educational support services definitions and providers, for high
     7  school certificates, for charter school definitions, for funding
     8  for charter schools and for provisions applicable to charter
     9  schools; adding provisions for cyber charter schools; further
    10  providing for regulations and provisions applicable to charter
    11  schools, for education empowerment districts, for waivers, for
    12  alternative education and for trustee councils in institutions
    13  of the State System of Higher Education; providing for placement
    14  of adjudicated delinquents in first class school districts;
    15  further providing for Commonwealth reimbursement definitions,
    16  for small district assistance and for temporary special aid to
    17  certain school districts; providing for basic education funding
    18  for 2001-2002 school year; further providing for payments to
    19  intermediate units, for payments on account of transportation of
    20  nonpublic school pupils, for special education payments and for
    21  certain payments; providing for Commonwealth reimbursement for
    22  charter schools and cyber charter schools; further providing for
    23  school performance incentives; authorizing the Multipurpose
    24  Service Center Grant Program; further providing for powers and
    25  duties of the State Board of Education; and making an
    26  appropriation," an amount equal to such payments.
    27     (5)  Where a school district has been declared a Commonwealth
    28  partnership school district under Article XVII-B, an amount
    29  equal to five million two hundred thousand dollars ($5,200,000).
    30     (6)  A base supplement calculated as follows:
    20050H0185B4517                 - 55 -     

     1     (i)  If the school district's market value/income aid ratio
     2  is equal to or greater than seven thousand three hundred
     3  seventy-one ten-thousandths (.7371):
     4     (A)  Multiply the school district's 2006-2007 market
     5  value/income aid ratio by its 2005-2006 average daily
     6  membership.
     7     (B)  Multiply the product from clause (A) by ten million
     8  seven hundred thousand dollars ($10,700,000).
     9     (C)  Divide the product from clause (B) by the sum of the
    10  products of the 2006-2007 market value/income aid ratio
    11  multiplied by the 2005-2006 average daily membership for all
    12  qualifying school districts.
    13     (ii)  If the school district's market value/income aid ratio
    14  is equal to or greater than six thousand five hundred ninety-
    15  five ten-thousandths (.6595) and less than seven thousand three
    16  hundred seventy-one ten-thousandths (.7371):
    17     (A)  Multiply the school district's 2006-2007 market
    18  value/income aid ratio by its 2005-2006 average daily
    19  membership.
    20     (B)  Multiply the product from clause (A) by thirty-five
    21  million nine hundred fifty thousand dollars ($35,950,000).
    22     (C)  Divide the product from clause (B) by the sum of the
    23  products of the 2006-2007 market value/income aid ratio
    24  multiplied by the 2005-2006 average daily membership for all
    25  qualifying school districts.
    26     (iii)  If the school district's market value/income aid ratio
    27  is equal to or greater than five thousand eight hundred sixty-
    28  three ten-thousandths (.5863) and less than six thousand five
    29  hundred ninety-five ten-thousandths (.6595):
    30     (A)  Multiply the school district's 2006-2007 market
    20050H0185B4517                 - 56 -     

     1  value/income aid ratio by its 2005-2006 average daily
     2  membership.
     3     (B)  Multiply the product from clause (A) by thirteen million
     4  three hundred thousand dollars ($13,300,000).
     5     (C)  Divide the product from clause (B) by the sum of the
     6  products of the 2006-2007 market value/income aid ratio
     7  multiplied by the 2005-2006 average daily membership for all
     8  qualifying school districts.
     9     (iv)  If the school district's market value/income aid ratio
    10  is equal to or greater than four thousand forty-four ten-
    11  thousandths (.4044) and less than five thousand eight hundred
    12  sixty-three ten-thousandths (.5863):
    13     (A)  Multiply the school district's 2006-2007 market
    14  value/income aid ratio by its 2005-2006 average daily
    15  membership.
    16     (B)  Multiply the product from clause (A) by fifteen million
    17  six hundred thousand dollars ($15,600,000).
    18     (C)  Divide the product from clause (B) by the sum of the
    19  products of the 2006-2007 market value/income aid ratio
    20  multiplied by the 2005-2006 average daily membership for all
    21  qualifying school districts.
    22     (v)  If the school district's market value/income aid ratio
    23  is less than four thousand forty-four ten-thousandths (.4044):
    24     (A)  Multiply the school district's 2006-2007 market
    25  value/income aid ratio by its 2005-2006 average daily
    26  membership.
    27     (B)  Multiply the product from clause (A) by four million
    28  five hundred thousand dollars ($4,500,000).
    29     (C)  Divide the product from clause (B) by the sum of the
    30  products of the 2006-2007 market value/income aid ratio
    20050H0185B4517                 - 57 -     

     1  multiplied by the 2005-2006 average daily membership for all
     2  qualifying school districts.
     3     (7)  A poverty supplement calculated for qualifying school
     4  districts as follows:
     5     (i)  For a school district to qualify for the poverty
     6  supplement:
     7     (A)  the quotient of the school district's personal income
     8  valuation divided by its 2005-2006 average daily membership must
     9  not exceed ninety-one thousand dollars ($91,000); or
    10     (B)  the school district's 2006-2007 market value/income aid
    11  ratio must be at least six thousand six hundred ten-thousandths
    12  (.6600).
    13     (ii)  The poverty supplement shall be calculated for
    14  qualifying school districts as follows:
    15     (A)  Multiply the school district's 2005-2006 average daily
    16  membership by fifty-five million dollars ($55,000,000).
    17     (B)  Divide the product from clause (A) by the sum of the
    18  2005-2006 average daily membership for all qualifying school
    19  districts.
    20     (8)  A foundation supplement calculated for qualifying school
    21  districts as follows:
    22     (i)  To qualify for the foundation supplement, a school
    23  district's 2004-2005 adjusted current expenditures per average
    24  daily membership must be less than the 2003-2004 median current
    25  expenditures per average daily membership increased by three and
    26  nine-tenths percent (3.9%) and its 2004-2005 equalized millage
    27  must be greater than or equal to 17.2.
    28     (ii)  The foundation supplement shall be calculated for
    29  qualifying school districts as follows:
    30     (A)  Multiply the school district's 2006-2007 market
    20050H0185B4517                 - 58 -     

     1  value/income aid ratio by its 2005-2006 average daily
     2  membership.
     3     (B)  Multiply the product in clause (A) by the lesser of:
     4     (I)  five hundred dollars ($500), or if its 2004-2005
     5  equalized millage is equal to or greater than 28.3 and its 2006-
     6  2007 market value/income aid ratio is equal to or greater than
     7  seven thousand five hundred sixty three ten-thousandths (.7563),
     8  eight hundred fifty dollars ($850); or
     9     (II)  the difference between the value of the 2003-2004
    10  median current expenditures per average daily membership
    11  increased by three and nine-tenths percent (3.9%) and the school
    12  district's 2004-2005 adjusted current expenditures per average
    13  daily membership; or
    14     (III)  if the school district's 2004-2005 equalized mills is
    15  less than twenty (20.0), the product of the lesser of the amount
    16  in clause (B)(I) or (II) and the quotient of its 2004-2005
    17  equalized mills divided by twenty (20.0).
    18     (C)  Multiply the product from clause (B) by forty-four
    19  million dollars ($44,000,000).
    20     (D)  Divide the product from clause (C) by the sum of the
    21  products from clause (B).
    22     (iii)  If a qualifying school district's equalized millage is
    23  equal to or greater than twenty-three and eight-tenths (23.8),
    24  it shall receive an additional payment calculated as follows:
    25     (A)  Multiply the product from subparagraph (ii)(B) by twenty
    26  million dollars ($20,000,000).
    27     (B)  Divide the product from clause (A) by the sum of the
    28  products from subparagraph (ii)(B) for qualifying school
    29  districts.
    30     (9)  A tax effort supplement calculated for qualifying school
    20050H0185B4517                 - 59 -     

     1  districts as follows:
     2     (i)  To qualify for the tax effort supplement, a school
     3  district's 2004 equalized millage must be equal to or greater
     4  than twenty (20) equalized mills.
     5     (ii)  The tax effort supplement shall be calculated for
     6  qualifying school districts as follows:
     7     (A)  Multiply the school district's 2005-2006 average daily
     8  membership by eleven million dollars ($11,000,000).
     9     (B)  Divide the product from clause (A) by the sum of the
    10  2005-2006 average daily membership for all qualifying school
    11  districts.
    12     (10)  A growth supplement calculated for qualifying schools
    13  districts as follows:
    14     (i)  To qualify for this portion of the growth supplement, a
    15  school district's average daily membership must have increased
    16  by at least two percent (2%) between the 2002-2003 and 2004-2005
    17  school years, its 2004-2005 local school tax revenue divided by
    18  its 2004-2005 average daily membership must be less than its
    19  2002-2003 local school tax revenue divided by its 2002-2003
    20  average daily membership, and its 2006-2007 market value/income
    21  aid ratio must be equal to or greater than five thousand eight
    22  hundred sixty-three ten-thousandths (.5863). This portion of the
    23  growth supplement shall be calculated for qualifying school
    24  district as follows:
    25     (A)  Multiply the school district's 2006-2007 market
    26  value/income aid ratio by its 2005-2006 average daily
    27  membership.
    28     (B)  Multiply the product from clause (A) by five hundred
    29  thousand dollars ($500,000).
    30     (C)  Divide the product from clause (B) by the sum of the
    20050H0185B4517                 - 60 -     

     1  products from clause (A).
     2     (ii)  To qualify for this portion of the growth supplement, a
     3  school district's 2005-2006 average daily membership must be
     4  greater than its 2004-2005 average daily membership. This
     5  portion of the growth supplement shall be calculated for
     6  qualifying school districts as follows:
     7     (A)  Subtract the school district's 2004-2005 average daily
     8  membership from its 2005-2006 average daily membership and
     9  multiply the difference by its 2006-2007 market value/income aid
    10  ratio.
    11     (B)  Multiply the difference from clause (A) by five million
    12  dollars ($5,000,000).
    13     (C)  Divide the product from clause (B) by the sum of the
    14  differences from clause (A) for all qualifying school districts.
    15     (iii)  For this portion of the growth supplement, the
    16  department shall calculate the following:
    17     (A)  Subtract the school district's 1994-1995 average daily
    18  membership from its 2004-2005 average daily membership.
    19     (B)  Divide the difference from clause (A) by the school
    20  district's 1994-1995 average daily membership.
    21     (C)  Divide the school district's basic education funding
    22  allocation for the 1994-1995 school year, calculated pursuant to
    23  sections 2502.13 and 2502.29, by the school district's 1994-1995
    24  average daily membership.
    25     (D)  Divide the school district's basic education funding
    26  allocation for the 2004-2005 school year, calculated pursuant to
    27  sections 2502.13, 2502.44 and 2504.4, by the school district's
    28  2004-2005 average daily membership.
    29     (E)  For each school district, subtract the quotient from
    30  clause (C) from the quotient from clause (D).
    20050H0185B4517                 - 61 -     

     1     (F)  Divide the total basic education funding allocation for
     2  the 1994-1995 school year, calculated pursuant to sections
     3  2502.13 and 2502.29, by the 1994-1995 average daily membership
     4  for all school districts.
     5     (G)  Divide the total basic education funding allocation for
     6  the 2004-2005 school year, calculated pursuant to sections
     7  2502.13, 2502.44 and 2504.4, by the 2004-2005 average daily
     8  membership for all school districts.
     9     (H)  Subtract the quotient from clause (F) from the quotient
    10  from clause (G).
    11     (I)  A school district for which the quotient from clause (B)
    12  is greater than ten percent (10%) but less than twenty percent
    13  (20%) and for which the difference from clause (E) is less than
    14  the difference from clause (H) shall receive an amount equal to
    15  the difference from clause (A) multiplied by sixty dollars
    16  ($60).
    17     (J)  A school district for which the quotient from clause (B)
    18  is greater than or equal to twenty percent (20%) and for which
    19  the difference from clause (E) is less than the difference from
    20  clause (H) shall receive an amount equal to the difference from
    21  clause (A) multiplied by one hundred ten dollars ($110).
    22     (iv)  The amount of a school district's growth supplement
    23  under this paragraph shall be the sum of the amount calculated
    24  pursuant to subparagraph (i) and the greater of the amount
    25  calculated pursuant to subparagraph (ii) or (iii).
    26     (11)  Each school district shall receive additional funding
    27  as necessary so that the sum of the amounts under section
    28  2502.13 and paragraphs (6), (7), (8), (9) and (10) and this
    29  paragraph shall equal at least three and five-tenths percent
    30  (3.5%) of the amount in paragraph (1).
    20050H0185B4517                 - 62 -     

     1     (12)  Each school district shall receive additional funding
     2  as necessary so that the sum of the amounts under sections
     3  2502.13 and 2504.4 and paragraphs (1), (6), (7), (8), (9), (10),
     4  (11) and this paragraph shall equal the basic education funding
     5  allocation for the school district as published on the
     6  Department of Education's Internet website on February 8, 2006.
     7  Within thirty (30) days of the effective date of this paragraph,
     8  the basic education funding allocation for each school district,
     9  as published on the Department of Education's Internet website
    10  on February 8, 2006, shall be published in the Pennsylvania
    11  Bulletin.
    12     Section 2502.46.  Funding for Partnership Schools.--The
    13  following shall apply:
    14     (1)  Beginning with the 2005-2006 school year and each school
    15  year thereafter, a school district of the first class shall
    16  expend no less than twenty-five million dollars ($25,000,000)
    17  from its annual basic education funding allocation solely for
    18  costs associated with the operation of schools governed by
    19  agreements pursuant to section 696(i)(2), for the operation of
    20  schools previously designated as partnership schools under the
    21  School Reform Commission Resolution Number 10 of April 17, 2002,
    22  or their successors, or for schools operated under any successor
    23  partnership agreements or contracts.
    24     (2)  Such expenditures shall include costs associated with
    25  targeted reform efforts such as: enhancements in curriculum;
    26  material and equipment, including computer hardware;
    27  professional development programs; improved or newly established
    28  accountability measures for employes; safety and security
    29  measures; and other costs associated with such agreements.
    30     (3)  These funds shall be supplemental and in addition to any
    20050H0185B4517                 - 63 -     

     1  amount of Federal, State and local funds allocated to those
     2  schools previously designated as partnership schools by a school
     3  district of the first class under its standard budgeting
     4  process.
     5     (4)  Receipt of funds pursuant to this paragraph shall in no
     6  way be deemed to authorize those schools previously designated
     7  as partnership schools by a school district of the first class
     8  to be treated differently from other schools in the school
     9  district of the first class in terms of services or other
    10  funding provided by the school district of the first class.
    11     Section 14.  Sections 2504.4, 2509.1 and 2509.5 of the act
    12  are amended by adding subsections to read:
    13     Section 2504.4.  Payments on Account of Limited English
    14  Proficiency Programs.--* * *
    15     (a.2)  To qualify for limited English proficiency payments
    16  under this section, a school district's 2006-2007 market
    17  value/income aid ratio must be equal to or greater than three
    18  thousand five hundred ten-thousandths (.3500) and the number of
    19  enrolled students identified as limited English proficient in
    20  the 2004-2005 school year must be equal to or greater than two
    21  and one-half percent (2.5%) of the school district's 2004-2005
    22  average daily membership. The allocation under this section
    23  shall be paid in fiscal year 2006-2007 out of the appropriation
    24  for basic education funding and calculated for qualifying school
    25  districts as follows:
    26     (1)  Multiply the number of enrolled students identified as
    27  limited English proficient in the 2004-2005 school year by ten
    28  million dollars ($10,000,000).
    29     (2)  Divide the product from paragraph (1) by the sum of
    30  enrolled students identified as limited English proficient for
    20050H0185B4517                 - 64 -     

     1  all qualifying school districts.
     2     * * *
     3     Section 2509.1.  Payments to Intermediate Units.--* * *
     4     (b.14)  Up to ten million seven hundred and fifty thousand
     5  dollars ($10,750,000) may be utilized for programs administered
     6  and operated by intermediate units during the 2006-2007 school
     7  year for institutionalized children as established in subsection
     8  (b.1).
     9     * * *
    10     Section 2509.5.  Special Education Payments to School
    11  Districts.--* * *
    12     (rr)  During the 2006-2007 school year, each school district
    13  shall be paid the amount it received during the 2005-2006 school
    14  year under subsections (pp) and (qq).
    15     (ss)  During the 2006-2007 school year, twenty-two million
    16  four hundred sixty-two thousand and one hundred twenty dollars
    17  ($22,462,120) of the funds appropriated to the Department of
    18  Education for special education shall be used to provide
    19  supplemental funding for special education to all school
    20  districts. Each school district shall receive a funding
    21  supplement calculated as follows:
    22     (1)  multiply each school district's 2006-2007 market
    23  value/income aid ratio by sixteen percent (16%) of its 2005-2006
    24  average daily membership;
    25     (2)  multiply the product from paragraph (1) by twenty
    26  million nine hundred forty-three thousand and four hundred
    27  ninety-eight dollars ($20,943,498); and
    28     (3)  divide the resultant product from paragraph (2) by the
    29  sum of the products of the 2006-2007 market value/income aid
    30  ratio multiplied by sixteen percent (16%) of the 2005-2006
    20050H0185B4517                 - 65 -     

     1  average daily membership for all school districts.
     2     (tt)  Each school district shall receive an inflation index
     3  supplement as necessary so that the amounts under subsection
     4  (ss) and this subsection equal three and nine-tenths percent
     5  (3.9%) multiplied by each school district's 2006-2007 market
     6  value/income aid ratio of the amount in subsection (rr).
     7     (uu)  Each school district for which the sum of the
     8  supplements under subsections (ss) and (tt) provides an amount
     9  less than two percent (2%) of the amount provided under
    10  subsection (rr) shall receive additional funding as necessary so
    11  that the sum of the amounts provided under subsections (ss),
    12  (tt) and this subsection equals two percent (2%) of the amount
    13  provided under subsection (rr).
    14     Section 14.1.  The act is amended by adding a section to
    15  read:
    16     Section 2509.12.  Special Education Community Support
    17  Services.--For the 2006-2007 school year and each school year
    18  thereafter, the Department of Education shall set aside from the
    19  annual special education appropriation five hundred sixty-three
    20  thousand dollars ($563,000) for community support services for
    21  students with disabilities. This amount is not to be included in
    22  the base calculations of the special education program
    23  components.
    24     Section 14.2.  Section 2517 of the act is amended by adding a
    25  subsection to read:
    26     Section 2517.  Payments.--* * *
    27     (e)  The Secretary of Education, with the approval of the
    28  Governor, may make basic education funding allocation payments
    29  to school districts, in advance of the dates set forth in this
    30  section to school districts which are financially handicapped,
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     1  when the secretary deems it necessary to enable the school
     2  district to keep their public schools open.
     3     Section 14.3.  Section 2574(c.4) of the act, added July 13,
     4  2005, (P.L.226, No.46), is amended and the section is amended by
     5  adding a subsection to read:
     6     Section 2574.  Approved Reimbursable Rental for Leases
     7  Hereafter Approved and Approved Reimbursable Sinking Fund
     8  Charges on Indebtedness.--* * *
     9     (c.4)  For school buildings for which the general
    10  construction contract is awarded on or after January 1, 2005,
    11  and for approved school building projects for which the general
    12  construction contract was awarded but for which a lease or
    13  general obligation bond resolution was not approved by the
    14  Department of Education prior to January 1, 2005, and where the
    15  school building receives a silver, gold or platinum
    16  certification from the United States Green Building Council's
    17  Leadership in Energy and Environmental Design Green Building
    18  Rating System or two, three or four Globes under the Green
    19  Building Initiative's Green Globes Green Building Rating System
    20  on or after January 1, 2005, the Department of Education shall
    21  adjust the approved building construction cost to additionally
    22  include the product of the rated pupil capacity as determined by
    23  the Department of Education at the time the project is approved
    24  and (i) four hundred seventy dollars ($470) in the case of
    25  elementary schools, (ii) six hundred twenty dollars ($620) in
    26  the case of secondary schools, (iii) an amount in the case of
    27  combined elementary-secondary schools obtained by multiplying
    28  the rated elementary pupil capacity by four hundred seventy
    29  dollars ($470) and the rated secondary pupil capacity by six
    30  hundred twenty dollars ($620) and dividing the sum by the total
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     1  rated pupil capacity. The Department of Education in
     2  consultation with the Governor's Green Government Council shall
     3  issue guidelines to carry out this section.
     4     * * *
     5     (c.6)  If a school district receives reimbursement for a
     6  school construction project under this section, the school
     7  district, upon request by the Department of Education, shall do
     8  all of the following:
     9     (i)  Provide information required by the department to
    10  determine whether the school construction project meets criteria
    11  established by the department for certification as an approved
    12  school facility design for purposes of the department's school
    13  facility design clearinghouse.
    14     (ii)  Authorize the department, in its discretion, to certify
    15  the school construction project as an approved school facility
    16  design and to include information about the certified project in
    17  the department's school facility design clearinghouse.
    18     * * *
    19     Section 15.  Section 2599.2(c)(1) of the act, amended July 4,
    20  2004 (P.L.536, No.70), is amended and the section is amended by
    21  adding a subsection to read:
    22     Section 2599.2.  Pennsylvania Accountability Grants.--* * *
    23     (c)  (1)  No later than April 10, 2004, and April 10, 2005,
    24  the department shall notify each school district of the grant
    25  amount it will receive under subsection (d). No later than April
    26  10, 2006, and April 10 of each school year thereafter, the
    27  department shall notify each school district of the grant amount
    28  it will receive under subsection (d.1).
    29     * * *
    30     (d.1)  (1)  During the 2006-2007 school year and each school
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     1  year thereafter, the department shall pay to each school
     2  district a Pennsylvania accountability grant equal to the amount
     3  determined in subsection (d) plus the sum of the amounts
     4  calculated under paragraphs (2) and (3).
     5     (2)  Each school district shall receive an amount based on
     6  the percentage of its students scoring below proficient on the
     7  PSSA tests administered in grades five, eight and eleven,
     8  calculated as follows:
     9     (i)  Divide the number of PSSA tests administered in the
    10  school district on which students scored below proficient in
    11  reading or mathematics during the 2004-2005 school year by the
    12  total number of PSSA tests scored in reading and mathematics in
    13  the school district during the 2004-2005 school year.
    14     (ii)  Multiply the quotient from subparagraph (i) by the
    15  average daily membership of the school district for the 2004-
    16  2005 school year.
    17     (iii)  Multiply the product from subparagraph (ii) by the
    18  market value/income aid ratio of the school district for the
    19  2005-2006 school year.
    20     (iv)  Multiply the product from subparagraph (iii) by thirty-
    21  seven million five hundred thousand dollars ($37,500,000).
    22     (v)  Divide the product from subparagraph (iv) by the sum of
    23  the products of subparagraph (iii) for all school districts.
    24     (3)  Each school district shall receive an amount based on
    25  the percentage of its students scoring at or above proficient on
    26  the PSSA tests administered in grades five, eight and eleven,
    27  calculated as follows:
    28     (i)  Divide the number of PSSA tests administered in the
    29  school district on which students scored at or above proficient
    30  in reading or mathematics during the 2004-2005 school year by
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     1  the total number of PSSA tests scored in reading and mathematics
     2  in the school district during the 2004-2005 school year.
     3     (ii)  Multiply the quotient from subparagraph (i) by the
     4  average daily membership of the school district for the 2004-
     5  2005 school year.
     6     (iii)  Multiply the product from subparagraph (ii) by the
     7  market value/income aid ratio of the school district for the
     8  2005-2006 school year.
     9     (iv)  Multiply the product from subparagraph (iii) by twelve
    10  million five hundred thousand dollars ($12,500,000).
    11     (v)  Divide the product from subparagraph (iv) by the sum of
    12  the products of subparagraph (iii) for all school districts.
    13     (4)  Grants awarded under this subsection shall be paid to
    14  school districts on the last Thursday of July.
    15     * * *
    16     Section 15.1.  The act is amended by adding a section to
    17  read:
    18     Section 2599.3.  Statewide Costing-out Study.--(a)  The
    19  General Assembly directs the State Board of Education to conduct
    20  or provide for a comprehensive Statewide costing-out study to
    21  arrive at a determination of the basic cost per pupil to provide
    22  an education that will permit a student to meet the State's
    23  academic standards and assessments.
    24     (b)  The study shall consider both adequacy and equity. For
    25  the purposes of this subsection, the term "equity" shall mean
    26  whether public resources being committed to education are
    27  distributed in such a way that all children, regardless of race,
    28  gender, ethnicity, disability, socioeconomic status and
    29  geography, have an equal opportunity to succeed in school. For
    30  purposes of this subsection, the term "adequacy" shall mean
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     1  whether sufficient resources, both State and local, are being
     2  committed to meet established performance standards and assure
     3  academic success for all.
     4     (c)  The State Board of Education is authorized to hire or
     5  retain consultants, utilizing a request for proposal procedure,
     6  as necessary, to assist in the performance of its duties under
     7  this section.
     8     (d)  The State Board of Education shall consult with the
     9  following leaders in the development of the request for
    10  proposals and the assent of a majority of the following leaders
    11  shall be required before the request for proposal shall be
    12  released.
    13     (1)  The President pro tempore of the Senate or a designee.
    14     (2)  The Speaker of the House of Representatives or a
    15  designee.
    16     (3)  The Minority Leader of the Senate or a designee.
    17     (4)  The Minority Leader of the House of Representatives or a
    18  designee.
    19     (e)  At a minimum the study shall include all of the
    20  following:
    21     (1)  Determine what educational resources and related
    22  expenditures are required to provide a quality primary and
    23  secondary education for each student in the Commonwealth's
    24  public schools. The study shall include examining exemplary
    25  school districts that are high-performing and low-spending
    26  school districts. As part of the determination to be conducted
    27  under this paragraph, a review shall be conducted of school
    28  district tax efforts in support of public schools, including
    29  both local and State tax support.
    30     (2)  Examine the potential use of geographic cost-of-
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     1  education indexing in the Commonwealth.
     2     (3)  Investigate additional categories of funding that may be
     3  necessary to meet needs unique to schools and students including
     4  all of the following:
     5     (i)  Poverty.
     6     (ii)  Limited English proficiency.
     7     (iii)  Students with disabilities.
     8     (iv)  Scarcity and density of population.
     9     (v)  Issues related to the rural, urban or suburban nature of
    10  the school district.
    11     (vi)  Issues related to research-based analysis of the
    12  difficulty of the educational task.
    13     (4)  Study the issue of student population growth and decline
    14  to determine the cost impact of both factors.
    15     (f)  The State Board of Education shall issue an interim
    16  report no later than six months after the date of the signing of
    17  a contract entered into under subsection (c) and shall provide a
    18  final report of its findings and recommendations to the Governor
    19  and the members of the General Assembly no later than one year
    20  from the date of the signing of a contract entered into under
    21  subsection (c).
    22     (g)  Upon receipt of the final report, the Education
    23  Committee of the Senate and the Education Committee of the House
    24  of Representatives shall promptly review and consider the
    25  recommendations of the study and develop legislation as deemed
    26  appropriate.
    27     Section 15.2.  The addition of section 614 of the act shall
    28  apply retroactively to June 27, 2006.
    29     Section 16.  This act shall take effect immediately.

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