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        PRIOR PRINTER'S NO. 494                       PRINTER'S NO. 2951

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 446 Session of 2007


        INTRODUCED BY BEYER, O'NEILL, BELFANTI, BOYD, BUXTON, CAPPELLI,
           CURRY, GRUCELA, KING, LEVDANSKY, MACKERETH, MANN, McILHATTAN,
           R. MILLER, MUNDY, MUSTIO, PICKETT, SANTONI, STAIRS, STERN,
           R. STEVENSON, J. TAYLOR, WATSON, MENSCH, FLECK, BAKER, HANNA,
           EVERETT, GOODMAN, BROOKS, M. KELLER, HORNAMAN, SIPTROTH,
           CAUSER, VITALI, SONNEY, PASHINSKI, J. WHITE, HELM, BRENNAN,
           SAYLOR, VULAKOVICH, J. EVANS, SURRA AND MAHONEY,
           FEBRUARY 22, 2007

        AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
           REPRESENTATIVES, AS AMENDED, DECEMBER 6, 2007

                                     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," amending, adding and deleting          <--
     6     provisions relating to cyber charter schools. PROVIDING FOR    <--
     7     THE DEFINITIONS OF "CYBER CHARTER SCHOOL FUND BALANCE LIMIT,"
     8     "CYBER EDUCATION REAL COST LEVEL," "CYBER SPECIAL EDUCATION
     9     REAL COST LEVEL," "EMPLOYMENT COST INDEX" AND "STATEWIDE
    10     AVERAGE WEEKLY WAGE"; AND FURTHER PROVIDING FOR SCHOOL STAFF,
    11     FOR FUNDING FOR CHARTER SCHOOLS, FOR CAUSES FOR NONRENEWAL OR
    12     TERMINATION, FOR POWERS AND DUTIES OF DEPARTMENT, FOR
    13     ASSESSMENT AND EVALUATION, FOR CYBER CHARTER SCHOOL
    14     REQUIREMENTS AND PROHIBITIONS, FOR SCHOOL DISTRICT AND
    15     INTERMEDIATE UNIT RESPONSIBILITIES, FOR CYBER CHARTER SCHOOL
    16     APPLICATION, FOR ENROLLMENT AND NOTIFICATION AND FOR
    17     APPLICABILITY.

    18     The General Assembly of the Commonwealth of Pennsylvania
    19  hereby enacts as follows:
    20     Section 1.  Section 102 of the act of March 10, 1949 (P.L.30,  <--
    21  No.14), known as the Public School Code of 1949, amended
    22  December 23, 2003 (P.L.304, No.48), is amended by adding a

     1  definition to read:
     2     Section 102.  Definitions.--When used in this act the
     3  following words and phrases shall have the following meanings:
     4     * * *
     5     "Beginners."  Any child that should enter the lowest grade of
     6  the primary school or the lowest primary class above the
     7  kindergarten level.
     8     * * *
     9     Section 2.  Section 1304 of the act, amended January 14, 1970
    10  (1969 P.L.468, No.192), is amended to read:
    11     Section 1304.  Admission of Beginners.--The admission of
    12  beginners to the public schools shall be confined to the first
    13  two weeks of the annual school term in districts operating on an
    14  annual promotion basis, and to the first two weeks of either the
    15  first or the second semester of the school term in districts
    16  operating on a semi-annual promotion basis. Admission shall be
    17  limited to beginners who have attained the age of five years and
    18  seven months before the first day of September if they are to be
    19  admitted in the fall, and to those who have attained the age of
    20  five years and seven months before the first day of February if
    21  they are to be admitted at the beginning of the second semester.
    22  The board of school directors of any school district may admit
    23  beginners who are less than five years and seven months of age,
    24  in accordance with standards prescribed by the State Board of
    25  Education. The board of school directors may refuse to accept or
    26  retain beginners who have not attained a mental age of five
    27  years, as determined by the supervisor of special education or a
    28  properly certificated public school psychologist in accordance
    29  with standards prescribed by the State Board of Education.
    30     [The term "beginners," as used in this section, shall mean
    20070H0446B2951                  - 2 -     

     1  any child that should enter the lowest grade of the primary
     2  school or the lowest primary class above the kindergarten
     3  level.]
     4     Section 3.  Section 1725-A of the act, amended or added June
     5  19, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and
     6  June 29, 2002 (P.L.524, No.88), is amended to read:
     7     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
     8  for a charter school established under this article shall be
     9  provided in the following manner:
    10     (1)  There shall be no tuition charge for a resident or
    11  nonresident student attending a charter school.
    12     (2)  For non-special education students, the charter school
    13  shall receive for each student enrolled no less than the
    14  budgeted total expenditure per average daily membership of the
    15  prior school year, as defined in section 2501(20), minus the
    16  budgeted expenditures of the district of residence for nonpublic
    17  school programs; adult education programs; community/junior
    18  college programs; student transportation services; for special
    19  education programs; facilities acquisition, construction and
    20  improvement services; and other financing uses, including debt
    21  service and fund transfers as provided in the Manual of
    22  Accounting and Related Financial Procedures for Pennsylvania
    23  School Systems established by the department. This amount shall
    24  be paid by the district of residence of each student.
    25     (3)  For special education students, the charter school shall
    26  receive for each student enrolled the same funding as for each
    27  non-special education student as provided in clause (2), plus an
    28  additional amount determined by dividing the district of
    29  residence's total special education expenditure by the product
    30  of multiplying the combined percentage of section 2509.5(k)
    20070H0446B2951                  - 3 -     

     1  times the district of residence's total average daily membership
     2  for the prior school year. This amount shall be paid by the
     3  district of residence of each student.
     4     (4)  A charter school may request the intermediate unit in
     5  which the charter school is located to provide services to
     6  assist the charter school to address the specific needs of
     7  exceptional students. The intermediate unit shall assist the
     8  charter school and bill the charter school for the services. The
     9  intermediate unit may not charge the charter school more for any
    10  service than it charges the constituent districts of the
    11  intermediate unit.
    12     (5)  Payments shall be made to the charter school in twelve
    13  (12) equal monthly payments, by the fifth day of each month,
    14  within the operating school year. A student enrolled in a
    15  charter school shall be included in the average daily membership
    16  of the student's district of residence for the purpose of
    17  providing basic education funding payments and special education
    18  funding pursuant to Article XXV. If a school district fails to
    19  make a payment to a charter school as prescribed in this clause,
    20  the secretary shall deduct the estimated amount, as documented
    21  by the charter school, from any and all State payments made to
    22  the district after receipt of documentation from the charter
    23  school.
    24     (6)  Within thirty (30) days after the secretary makes the
    25  deduction described in clause (5), a school district may notify
    26  the secretary that the deduction made from State payments to the
    27  district under this subsection is inaccurate. The secretary
    28  shall provide the school district with an opportunity to be
    29  heard concerning whether the charter school documented that its
    30  students were enrolled in the charter school, the period of time
    20070H0446B2951                  - 4 -     

     1  during which each student was enrolled, the school district of
     2  residence of each student and whether the amounts deducted from
     3  the school district were accurate.
     4     (7)  A school district shall not be required to provide per
     5  pupil funding to charter schools for any student who does not
     6  meet the minimum requirement for the age of beginners
     7  established by the board of school directors in the student's
     8  school district of residence.
     9     (b)  The Commonwealth shall provide temporary financial
    10  assistance to a school district due to the enrollment of
    11  students in a charter school established under this article who
    12  attended a nonpublic school in the prior school year in order to
    13  offset the additional costs directly related to the enrollment
    14  of those students in a public charter school. The Commonwealth
    15  shall pay the school district of residence of a student enrolled
    16  in a nonpublic school in the prior school year who is attending
    17  a charter school an amount equal to the school district of
    18  residence's basic education subsidy for the current school year
    19  divided by the district's average daily membership for the prior
    20  school year. This payment shall occur only for the first year of
    21  the attendance of the student in a charter school, starting with
    22  school year 1997-1998. Total payments of temporary financial
    23  assistance to school districts on behalf of a student enrolling
    24  in a charter school who attended a nonpublic school in the prior
    25  school year shall be limited to funds appropriated for this
    26  program in a fiscal year. If the total of the amount needed for
    27  all students enrolled in a nonpublic school in the prior school
    28  year who enroll in a charter school exceeds the appropriation
    29  for the temporary financial assistance program, the amount paid
    30  to a school district for each qualifying student shall be pro
    20070H0446B2951                  - 5 -     

     1  rata reduced. Receipt of funds under this subsection shall not
     2  preclude a school district from applying for a grant under
     3  subsection (c).
     4     (c)  The Commonwealth shall create a grant program to provide
     5  temporary transitional funding to a school district due to the
     6  budgetary impact relating to any student's first-year attendance
     7  at a charter school established under this article. The
     8  department shall develop criteria which shall include, but not
     9  be limited to, the overall fiscal impact on the budget of the
    10  school district resulting from students of a school district
    11  attending a charter school. The criteria shall be published in
    12  the Pennsylvania Bulletin. This subsection shall not apply to a
    13  public school converted to a charter school under section 1717-
    14  A(b). Grants shall be limited to funds appropriated for this
    15  purpose.
    16     (d)  It shall be lawful for any charter school established
    17  under this article to receive, hold, manage and use, absolutely
    18  or in trust, any devise, bequest, grant, endowment, gift or
    19  donation of any property, real or personal and/or mixed, which
    20  shall be made to the charter school for any of the purposes of
    21  this article.
    22     (e)  It shall be unlawful for any trustee of a charter school
    23  or any board of trustees of a charter school or any other person
    24  affiliated in any way with a charter school to demand or
    25  request, directly or indirectly, any gift, donation or
    26  contribution of any kind from any parent, teacher, employe or
    27  any other person affiliated with the charter school as a
    28  condition for employment or enrollment and/or continued
    29  attendance of any pupil. Any donation, gift or contribution
    30  received by a charter school shall be given freely and
    20070H0446B2951                  - 6 -     

     1  voluntarily.
     2     Section 4.  Sections 1741-A, 1742-A, 1743-A, 1744-A, 1745-A,
     3  1746-A, 1747-A, 1748-A, 1749-A, 1750-A and 1751-A of the act,
     4  added June 29, 2002 (P.L.524, No.88), are repealed:
     5  [Section 1741-A.  Powers and duties of department.
     6     (a)  Powers and duties.--The department shall:
     7         (1)  Receive, review and act on applications for the
     8     creation of a cyber charter school and have the power to
     9     request further information from applicants, obtain input
    10     from interested persons or entities and hold hearings
    11     regarding applications.
    12         (2)  Renew the charter of cyber charter school and renew
    13     the charter of a charter school approved under section 1717-A
    14     or 1718-A which provides instruction through the Internet or
    15     other electronic means. Upon renewal of a charter of a
    16     charter school approved under section 1717-A or 1718-A, the
    17     charter school shall qualify as a cyber charter school under
    18     this subdivision and shall be subject to the provisions of
    19     this subdivision.
    20         (3)  Revoke or deny renewal of a cyber charter school's
    21     charter under the provisions of section 1729-A.
    22             (i)  Notwithstanding the provisions of section 1729-
    23         A(i), when the department has revoked or denied renewal
    24         of a charter, the cyber charter school shall be
    25         dissolved. After the disposition of the liabilities and
    26         obligations of the cyber charter school, any remaining
    27         assets of the cyber charter school shall be given over to
    28         the intermediate unit in which the cyber charter school's
    29         administrative office was located for distribution to the
    30         school districts in which the students enrolled in the
    20070H0446B2951                  - 7 -     

     1         cyber charter school reside at the time of dissolution.
     2             (ii)  Notwithstanding any laws to the contrary, the
     3         department may, after notice and hearing, take immediate
     4         action to revoke a charter if:
     5                 (A)  a material component of the student's
     6             education as required under this subdivision is not
     7             being provided; or
     8                 (B)  the cyber charter school has failed to
     9             maintain the financial ability to provide services as
    10             required under this subdivision.
    11         (4)  Execute charters after approval.
    12         (5)  Develop forms, including the notification form under
    13     section 1748-A(b), necessary to carry out the provisions of
    14     this subdivision.
    15     (b)  Hearings.--Hearings conducted by the department shall be
    16  conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).
    17     (c)  Documents.--Documents of the appeal board shall be
    18  subject to the act of June 21, 1957 (P.L.390, No.212), referred
    19  to as the Right-to-Know Law.
    20  Section 1742-A.  Assessment and evaluation.
    21     The department shall:
    22         (1)  Annually assess whether each cyber charter school is
    23     meeting the goals of its charter and is in compliance with
    24     the provisions of the charter and conduct a comprehensive
    25     review prior to granting a five-year renewal of the charter.
    26         (2)  Annually review each cyber charter school's
    27     performance on the Pennsylvania System of School Assessment
    28     test, standardized tests and other performance indicators to
    29     ensure compliance with 22 Pa. Code Ch. 4 (relating to
    30     academic standards and assessment) or subsequent regulations
    20070H0446B2951                  - 8 -     

     1     promulgated to replace 22 Pa. Code Ch. 4.
     2         (3)  Have ongoing access to all records, instructional
     3     materials and student and staff records of each cyber charter
     4     school and to every cyber charter school facility to ensure
     5     the cyber charter school is in compliance with its charter
     6     and this subdivision.
     7  Section 1743-A.  Cyber charter school requirements and
     8                     prohibitions.
     9     (a)  Special financial requirements prohibited.--A cyber
    10  charter school shall not:
    11         (1)  provide discounts to a school district or waive
    12     payments under section 1725-A for any student;
    13         (2)  except as provided for in subsection (e), provide
    14     payments to parents or guardians for the purchase of
    15     instructional materials; or
    16         (3)  except as compensation for the provision of specific
    17     services, enter into agreements to provide funds to a school
    18     entity.
    19     (b)  Enrollment.--A cyber charter school shall report to the
    20  department an increase or a decrease of 30% or more in its
    21  anticipated enrollment set forth in the application under
    22  section 1747-A(11).
    23     (c)  School district.--A cyber charter school shall make
    24  available upon request, either in writing or electronically, to
    25  each student's school district of residence the following:
    26         (1)  A copy of the charter.
    27         (2)  A copy of the cyber charter school application.
    28         (3)  A copy of all annual reports prepared by the cyber
    29     charter school.
    30         (4)  A list of all students from that school district
    20070H0446B2951                  - 9 -     

     1     enrolled in the cyber charter school.
     2     (d)  Parent or guardian.--Upon request and prior to the
     3  student's first day in a cyber charter school, the cyber charter
     4  school shall, either in writing or electronically, provide to
     5  the parent or guardian of a student the following:
     6         (1)  A list and brief description of the courses of
     7     instruction the student will receive. The list shall be
     8     updated annually for each grade level in which the student is
     9     enrolled.
    10         (2)  A description of the lessons and activities to be
    11     offered both online and offline.
    12         (3)  The manner in which attendance will be reported and
    13     work will be authenticated.
    14         (4)  A list of all standardized tests the student will be
    15     required to take during the school year and the place where
    16     the test will be administered, if available.
    17         (5)  The meetings to be held during the school year
    18     between a parent or guardian and a teacher and among other
    19     school officials or parents or guardians and the manner in
    20     which the parent or guardian will be notified of the time and
    21     place for the meeting.
    22         (6)  The address of the cyber charter school and the
    23     name, telephone number and e-mail address of the school
    24     administrator and other school personnel.
    25         (7)  A list of any extracurricular activities provided by
    26     the cyber charter school.
    27         (8)  The names of the student's teachers, if available,
    28     and the manner in which each teacher can be contacted by the
    29     student or the parent or guardian.
    30         (9)  A list of all services that will be provided to the
    20070H0446B2951                 - 10 -     

     1     student by the cyber charter school.
     2         (10)  Copies of policies relating to computer security
     3     and privacy, truancy, absences, discipline and withdrawal or
     4     expulsion of students.
     5         (11)  Information on:
     6             (i)  The cyber charter school's professional staff,
     7         including the number of staff personnel, their education
     8         level and experience.
     9             (ii)  The cyber charter school's performance on the
    10         PSSA and other standardized test scores.
    11         (12)  Information regarding the proper usage of equipment
    12     and materials and the process for returning equipment and
    13     materials supplied to the students by the cyber charter
    14     school. A parent or guardian shall acknowledge, either in
    15     writing or electronically, the receipt of this information.
    16         (13)  A description of the school calendar, including,
    17     but not limited to, the time frame that will constitute a
    18     school year and a school week, holidays and term breaks.
    19     (e)  Students.--For each student enrolled, a cyber charter
    20  school shall:
    21         (1)  provide all instructional materials;
    22         (2)  provide all equipment, including, but not limited
    23     to, a computer, computer monitor and printer; and
    24         (3)  provide or reimburse for all technology and services
    25     necessary for the on-line delivery of the curriculum and
    26     instruction.
    27  The Commonwealth shall not be liable for any reimbursement owed
    28  to students, parents or guardians by a cyber charter school
    29  under paragraph (3).
    30     (f)  Annual report.--A cyber charter school shall submit an
    20070H0446B2951                 - 11 -     

     1  annual report no later than August 1 of each year to the
     2  department in the form prescribed by the department.
     3     (g)  Records and facilities.--A cyber charter school shall
     4  provide the department with ongoing access to all records and
     5  facilities necessary for the department to assess the cyber
     6  charter school in accordance with the provisions of this
     7  subdivision.
     8     (h)  Offices and facilities.--A cyber charter school shall
     9  maintain an administrative office within this Commonwealth where
    10  all student records shall be maintained at all times and shall
    11  provide the department with the addresses of all offices and
    12  facilities of the cyber charter school, the ownership thereof
    13  and any lease arrangements. The administrative office of the
    14  cyber charter school shall be considered as the principal place
    15  of business for service of process for any action brought
    16  against the cyber charter school or cyber charter school staff
    17  members. The cyber charter school shall notify the department of
    18  any changes in this information within ten days of the change.
    19     (i)  Applicable law.--Any action taken against the cyber
    20  charter school, its successors or assigns or its employees,
    21  including any cyber charter school staff member as defined in
    22  the act of December 12, 1973 (P.L.397, No.141), known as the
    23  Professional Educator Discipline Act, shall be governed by the
    24  laws of this Commonwealth. If the department initiates an
    25  investigation or pursues an action pursuant to the Professional
    26  Educator Discipline Act involving any current or former charter
    27  school staff member outside this Commonwealth, any reasonable
    28  expenses incurred by the department in such investigation or
    29  action shall be paid by the cyber charter school which employed
    30  that staff member at the time of the alleged misconduct.
    20070H0446B2951                 - 12 -     

     1  Section 1744-A.  School district and intermediate unit
     2                     responsibilities.
     3     An intermediate unit or a school district in which a student
     4  enrolled in a cyber charter school resides shall do all of the
     5  following:
     6         (1)  Provide the cyber charter school within ten days of
     7     receipt of the notice of the admission of the student under
     8     section 1748-A(a) with all records relating to the student,
     9     including transcripts, test scores and a copy of any
    10     individualized education program for that student.
    11         (2)  Provide the cyber charter school with reasonable
    12     access to its facilities for the administration of
    13     standardized tests required under this subdivision.
    14         (3)  Upon request, provide assistance to the cyber
    15     charter school in the delivery of services to a student with
    16     disabilities. The school district or intermediate unit shall
    17     not charge the cyber charter school more for a service than
    18     it charges a school district.
    19         (4)  Make payments to the cyber charter school under
    20     section 1725-A.
    21  Section 1745-A.  Establishment of cyber charter school.
    22     (a)  Establishment.--A cyber charter school may be
    23  established by an individual; one or more teachers who will
    24  teach at the proposed cyber charter school; parents or guardians
    25  of students who will enroll in the cyber charter school; a
    26  nonsectarian college, university or museum located in this
    27  Commonwealth; a nonsectarian corporation not-for-profit as
    28  defined in 15 Pa.C.S. § 5103 (relating to definitions); a
    29  corporation, association or partnership; or any combination of
    30  the foregoing. Section 1327.1 shall not apply to a cyber charter
    20070H0446B2951                 - 13 -     

     1  school established under this subdivision.
     2     (b)  Sectarian entities.--No cyber charter school shall be
     3  established or funded by and no charter shall be granted to a
     4  sectarian school, institution or other entity.
     5     (c)  Attendance.--Attendance at a cyber charter school shall
     6  satisfy requirements for compulsory attendance.
     7     (d)  Application.--An application to establish a cyber
     8  charter school shall be submitted to the department by October 1
     9  of the school year preceding the school year in which the cyber
    10  charter school proposes to commence operation.
    11     (e)  Grant or denial.--Within 120 days of receipt of an
    12  application, the department shall grant or deny the application.
    13  The department shall review the application and shall hold at
    14  least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
    15  open meetings). At least 30 days prior to the hearing, the
    16  department shall publish in the Pennsylvania Bulletin and on the
    17  department's World Wide Web site notice of the hearing and the
    18  purpose of the application.
    19     (f)  Evaluation criteria.--
    20         (1)  A cyber charter school application submitted under
    21     this subdivision shall be evaluated by the department based
    22     on the following criteria:
    23             (i)  The demonstrated, sustainable support for the
    24         cyber charter school plan by teachers, parents or
    25         guardians and students.
    26             (ii)  The capability of the cyber charter school
    27         applicant, in terms of support and planning, to provide
    28         comprehensive learning experiences to students under the
    29         charter.
    30             (iii)  The extent to which the programs outlined in
    20070H0446B2951                 - 14 -     

     1         the application will enable students to meet the academic
     2         standards under 22 Pa. Code Ch. 4 (relating to academic
     3         standards and assessment) or subsequent regulations
     4         promulgated to replace 22 Pa. Code Ch. 4.
     5             (iv)  The extent to which the application meets the
     6         requirements of section 1747-A.
     7             (v)  The extent to which the cyber charter school may
     8         serve as a model for other public schools.
     9         (2)  Written notice of the action of the department shall
    10     be sent by certified mail to the applicant and published on
    11     the department's World Wide Web site. If the application is
    12     denied, the reasons for denial, including a description of
    13     deficiencies in the application, shall be clearly stated in
    14     the notice.
    15         (3)  Upon approval of a cyber charter school application,
    16     a written charter shall be developed which shall contain the
    17     provisions of the charter application and be signed by the
    18     secretary and each member of the board of trustees of the
    19     cyber charter school. The charter, when duly signed, shall
    20     act as legal authorization of the establishment of a cyber
    21     charter school. The charter shall be legally binding on the
    22     department, the cyber charter school and its board of
    23     trustees. The charter shall be for a period of no less than
    24     three years nor more than five years and may be renewed for a
    25     period of five years by the department.
    26         (4)  The decision of the department to deny an
    27     application may be appealed to the appeal board.
    28     (g)  Denied application.--A cyber charter school applicant
    29  may revise and resubmit a denied application to the department.
    30  The department shall grant or deny the revised application
    20070H0446B2951                 - 15 -     

     1  within 60 days after its receipt.
     2     (h)  Appeal.--If the department fails to hold the required
     3  public hearing or to approve or disapprove the charter, the
     4  applicant may file its application as an appeal to the appeal
     5  board. The appeal board shall review the application and make a
     6  decision to approve or disapprove the charter based on the
     7  criteria in subsection (f).
     8  Section 1746-A.  State Charter School Appeal Board review.
     9     (a)  Jurisdiction.--The appeal board shall have the exclusive
    10  review of an appeal by a cyber charter school applicant or by
    11  the board of trustees of a cyber charter school on the decisions
    12  of the department, including:
    13         (1)  The denial of an application for a charter.
    14         (2)  The denial of a renewal of a charter.
    15         (3)  The revocation of a charter.
    16         (4)  An appeal under section 1745-A(h).
    17     (b)  Procedure.--The appeal board shall:
    18         (1)  Review the decision made by the department under
    19     subsection (a) on the record as certified by the department.
    20     The secretary shall recuse himself from all cyber charter
    21     school appeals and shall not participate in a hearing,
    22     deliberation or vote on a cyber charter school appeal. The
    23     appeal board may allow the department, the cyber charter
    24     school applicant or the board of trustees of a cyber charter
    25     school to supplement the record if the supplemental
    26     information was previously unavailable.
    27         (2)  Meet to officially review the certified record no
    28     later than 30 days after the date of filing the appeal.
    29         (3)  Issue a written decision affirming or denying the
    30     appeal no later than 60 days following its review.
    20070H0446B2951                 - 16 -     

     1         (4)  In the case of a decision by the department to deny
     2     a cyber charter application, make its decision based on
     3     section 1745-A(f)(1). A decision by the appeal board to
     4     reverse the decision of the department and grant a charter
     5     shall serve as a requirement for the secretary to sign the
     6     written charter of the cyber charter school.
     7         (5)  In the case of a decision by the department to
     8     revoke or deny renewal of a cyber school charter in
     9     accordance with section 1741-A(a)(3), make its decision based
    10     on section 1729-A(a). A decision of the appeal board to
    11     reverse the decision of the department to not revoke or deny
    12     renewal of a charter shall serve as a requirement of the
    13     department to not revoke or to not deny renewal of the
    14     charter of the cyber charter school.
    15     (c)  Stay.--If the department appeals the decision of the
    16  appeal board, the appeal board's decision shall be stayed only
    17  upon order of the appeal board, the Commonwealth Court or the
    18  Pennsylvania Supreme Court.
    19     (d)  Review.--All decisions of the appeal board shall be
    20  subject to appellate review by the Commonwealth Court.
    21  Section 1747-A.  Cyber charter school application.
    22     In addition to the provisions of section 1719-A, an
    23  application to establish a cyber charter school shall also
    24  include the following:
    25         (1)  The curriculum to be offered and how it meets the
    26     requirements of 22 Pa. Code Ch. 4 (relating to academic
    27     standards and assessment) or subsequent regulations
    28     promulgated to replace 22 Pa. Code Ch. 4.
    29         (2)  The number of courses required for elementary and
    30     secondary students.
    20070H0446B2951                 - 17 -     

     1         (3)  An explanation of the amount of on-line time
     2     required for elementary and secondary students.
     3         (4)  The manner in which teachers will deliver
     4     instruction, assess academic progress and communicate with
     5     students to provide assistance.
     6         (5)  A specific explanation of any cooperative learning
     7     opportunities, meetings with students, parents and guardians,
     8     field trips or study sessions.
     9         (6)  The technology, including types of hardware and
    10     software, equipment and other materials which will be
    11     provided by the cyber charter school to the student.
    12         (7)  A description of how the cyber charter school will
    13     define and monitor a student's school day, including the
    14     delineation of on-line and off-line time.
    15         (8)  A description of commercially prepared standardized
    16     achievement tests that will be used by the cyber charter
    17     school in addition to the Pennsylvania System of School
    18     Assessment test, including the grade levels that will be
    19     tested and how the data collected from the tests will be used
    20     to improve instruction.
    21         (9)  The technical support that will be available to
    22     students and parents or guardians.
    23         (10)  The privacy and security measures to ensure the
    24     confidentiality of data gathered online.
    25         (11)  The level of anticipated enrollment during each
    26     school year of the proposed charter, including expected
    27     increases due to the addition of grade levels.
    28         (12)  The methods to be used to insure the authenticity
    29     of student work and adequate proctoring of examinations.
    30         (13)  The provision of education and related services to
    20070H0446B2951                 - 18 -     

     1     students with disabilities, including evaluation and the
     2     development and revision of individualized education
     3     programs.
     4         (14)  Policies regarding truancy, absences and withdrawal
     5     of students, including the manner in which the cyber charter
     6     school will monitor attendance consistent with the provisions
     7     of section 1715-A(9).
     8         (15)  The types and frequency of communication between
     9     the cyber charter school and the student and the manner in
    10     which the cyber charter school will communicate with parents
    11     and guardians.
    12         (16)  The addresses of all facilities and offices of the
    13     cyber charter school, the ownership thereof and any lease
    14     arrangements.
    15  Section 1748-A.  Enrollment and notification.
    16     (a)  Notice to school district.--
    17         (1)  Within 15 days of the enrollment of a student to a
    18     cyber charter school, the parent or guardian and the cyber
    19     charter school shall notify the student's school district of
    20     residence of the enrollment through the use of the
    21     notification form under subsection (b).
    22         (2)  If a school district which has received notice under
    23     paragraph (1) determines that a student is not a resident of
    24     the school district, the following apply:
    25             (i)  Within seven days of receipt of the notice under
    26         paragraph (1), the school district shall notify the cyber
    27         charter school and the department that the student is not
    28         a resident of the school district. Notification of
    29         nonresidence shall include the basis for the
    30         determination.
    20070H0446B2951                 - 19 -     

     1             (ii)  Within seven days of notification under
     2         subparagraph (i), the cyber charter school shall review
     3         the notification of nonresidence, respond to the school
     4         district and provide a copy of the response to the
     5         department. If the cyber charter school agrees that a
     6         student is not a resident of the school district, it
     7         shall determine the proper district of residence of the
     8         student before requesting funds from another school
     9         district.
    10             (iii)  Within seven days of receipt of the response
    11         under subparagraph (ii), the school district shall notify
    12         the cyber charter school that it agrees with the cyber
    13         charter school's determination or does not agree with the
    14         cyber charter school's determination.
    15             (iv)  A school district that has notified the cyber
    16         charter school that it does not agree with the cyber
    17         charter school's determination under subparagraph (iii)
    18         shall appeal to the department for a final determination.
    19             (v)  All decisions of the department regarding the
    20         school district of residence of a student shall be
    21         subject to review by the Commonwealth Court.
    22             (vi)  A school district shall continue to make
    23         payments to a cyber charter school under section 1725-A
    24         during the time in which the school district of residence
    25         of a student is in dispute.
    26             (vii)  If a final determination is made that a
    27         student is not a resident of an appealing school
    28         district, the cyber charter school shall return all funds
    29         provided on behalf of that student to the school district
    30         within 30 days.
    20070H0446B2951                 - 20 -     

     1     (b)  Notification form.--The department shall develop a
     2  notification form for use under subsection (a). The notification
     3  shall include:
     4         (1)  The name, home address and mailing address of the
     5     student.
     6         (2)  The grade in which the student is being enrolled.
     7         (3)  The date the student will be enrolled.
     8         (4)  The name and address of the cyber charter school and
     9     the name and telephone number of a contact person able to
    10     provide information regarding the cyber charter school.
    11         (5)  The signature of the parent or guardian and an
    12     authorized representative of the cyber charter school.
    13     (c)  Withdrawal.--The cyber charter school and the parent or
    14  guardian of a student enrolled in a cyber charter school shall
    15  provide written notification to the student's school district of
    16  residence within 15 days following the withdrawal of a student
    17  from the cyber charter school.
    18  Section 1749-A.  Applicability of other provisions of this act
    19                     and of other acts and regulations.
    20     (a)  General requirements.--Cyber charter schools shall be
    21  subject to the following:
    22         (1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,
    23     436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,
    24     808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,
    25     1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,
    26     1523, 1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A,
    27     1719-A, 1721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A,
    28     1727-A, 1729-A, 1730-A, 1731-A(a)(1) and (b) and 2014-A and
    29     Articles XII-A, XIII-A and XIV.
    30         (2)  The act of July 17, 1961 (P.L.776, No.341), known as
    20070H0446B2951                 - 21 -     

     1     the Pennsylvania Fair Educational Opportunities Act.
     2         (3)  The act of July 19, 1965 (P.L.215, No.116), entitled
     3     "An act providing for the use of eye protective devices by
     4     persons engaged in hazardous activities or exposed to known
     5     dangers in schools, colleges and universities."
     6         (4)  Section 4 of the act of January 25, 1966 (1965
     7     P.L.1546, No.541), entitled "An act providing scholarships
     8     and providing funds to secure Federal funds for qualified
     9     students of the Commonwealth of Pennsylvania who need
    10     financial assistance to attend postsecondary institutions of
    11     higher learning, making an appropriation, and providing for
    12     the administration of this act."
    13         (5)  The act of July 12, 1972 (P.L.765, No.181) entitled
    14     "An act relating to drugs and alcohol and their abuse,
    15     providing for projects and programs and grants to educational
    16     agencies, other public or private agencies, institutions or
    17     organizations."
    18         (6)  The act of December 15, 1986 (P.L.1595, No.175),
    19     known as the Antihazing Law.
    20     (b)  Regulations.--Cyber charter schools shall be subject to
    21  the following provisions of 22 Pa. Code (relating to education):
    22         (1)  Chapter 4 (relating to academic standards and
    23     assessment).
    24         (2)  Chapter 11 (relating to pupil attendance).
    25         (3)  Chapter 12 (relating to students).
    26         (4)  Section 32.3 (relating to assurances).
    27         (5)  Section 121.3 (relating to discrimination
    28     prohibited).
    29         (6)  Section 235.4 (relating to practices).
    30         (7)  Section 235.8 (relating to civil rights).
    20070H0446B2951                 - 22 -     

     1         (8)  Chapter 711 (relating to charter school services and
     2     programs for children with disabilities).
     3     (c)  Existing charter schools.--
     4         (1)  The charter of a charter school approved under
     5     section 1717-A or 1718-A which provides instruction through
     6     the Internet or other electronic means shall remain in effect
     7     for the duration of the charter and shall be subject to the
     8     provisions of Subdivision (b).
     9         (2)  In addition to subsections (a) and (b), the
    10     following provisions of this subdivision shall apply to a
    11     charter school approved under section 1717-A or 1718-A which
    12     provides instruction through the Internet or other electronic
    13     means:
    14             (i)  Section 1743-A(c), (d), (e), (h) and (i).
    15             (ii)  Section 1744-A.
    16             (iii)  Section 1748-A.
    17  Section 1750-A.  Effect on certain existing charter schools.
    18     (a)  Determination.--For a charter school approved under
    19  section 1717-A or 1718-A which provides instruction through the
    20  Internet or other electronic means, prior to August 15, 2002,
    21  the department shall determine:
    22         (1)  whether the charter school is in compliance with
    23     this subdivision;
    24         (2)  whether the charter school has provided notification
    25     of the enrollment of each existing student to the school
    26     district of residence; and
    27         (3)  how the charter school plans to comply with section
    28     1743-A(d).
    29     (b)  Notification of compliance.--Prior to August 15, 2002,
    30  the department shall:
    20070H0446B2951                 - 23 -     

     1         (1)  Notify each charter school and the chartering school
     2     district of the department's determination under subsection
     3     (a). The notification shall include specific requirements
     4     with which the charter school has failed to comply.
     5         (2)  Publish a copy of the notification on the
     6     department's World Wide Web site.
     7     (c)  Charter school requirement.--A charter school subject to
     8  the requirements of this section shall, either in writing or
     9  electronically, provide the parent or guardian of any student
    10  enrolled in the charter school a copy of the department's
    11  determination under subsection (b).
    12     (d)  School districts.--A school district shall not renew the
    13  charter of a charter school approved under section 1717-A or
    14  1718-A which provides instruction through the Internet or other
    15  electronic means or approve a charter for a cyber charter
    16  school.
    17     (e)  Renewal of charter for certain existing charter
    18  schools.--Upon the expiration of its charter, a charter school
    19  approved under section 1717-A or 1718-A which provides
    20  instruction through the Internet or other electronic means shall
    21  seek renewal of its charter from the department under this
    22  subdivision. The charter shall be amended as needed to reflect
    23  the requirements of this subdivision.
    24  Section 1751-A.  Regulations.
    25     The department may issue regulations to implement this
    26  subdivision.]
    27     Section 5.  The act is amended by adding an article to read:
    28                           ARTICLE XVII-C
    29                       CHARTER CYBER SCHOOLS
    30                    (a)  Preliminary Provisions
    20070H0446B2951                 - 24 -     

     1  Section 1701-C.  Scope.
     2     This article deals with charter cyber schools.
     3  Section 1702-C.  Definitions.
     4     The following words and phrases when used in this article
     5  shall have the meanings given to them in this section unless the
     6  context clearly indicates otherwise:
     7     "Appeal board."  The State Charter School Appeal Board
     8  established by Article XVII-A.
     9     "At-risk student."  A student at risk of educational failure
    10  because of limited English proficiency, poverty, community
    11  factors, truancy, academic difficulties or economic
    12  disadvantage.
    13     "Charter cyber school."  An independent public school
    14  established and operated under a charter from the Department of
    15  Education and in which the school uses technology in order to
    16  provide a significant portion of its curriculum and to deliver a
    17  significant portion of instruction to its students through the
    18  Internet or other electronic means. A charter cyber school must
    19  be organized as a public, nonprofit corporation. A charter may
    20  not be granted to a for-profit entity.
    21     "Chief executive officer."  An individual appointed by the
    22  board of trustees to oversee and manage the operation of the
    23  charter cyber school, but who shall not be deemed a professional
    24  staff member under this article.
    25     "Department."  The Department of Education of the
    26  Commonwealth.
    27     "School district of residence."  The school district in this
    28  Commonwealth in which the parents or guardians of a child
    29  reside.
    30     "Secretary."  The Secretary of Education of the Commonwealth.
    20070H0446B2951                 - 25 -     

     1     "State board."  The State Board of Education.
     2                          (b)  Governance
     3  Section 1711-C.  Powers of charter cyber schools.
     4     (a)  General powers.--A charter cyber school established
     5  under this article is a body corporate and shall have all powers
     6  necessary or desirable for carrying out its charter, including,
     7  but not limited to, the power to:
     8         (1)  Adopt a name and corporate seal; however, any name
     9     selected shall include the words "charter cyber school."
    10         (2)  Sue and be sued, but only to the same extent and
    11     upon the same condition that political subdivisions and local
    12     agencies can be sued.
    13         (3)  Acquire real property from public or private sources
    14     by lease or gift for use as a charter cyber school facility.
    15         (4)  Receive and disburse budgeted funds for charter
    16     school purposes only. The funds shall not be used for any
    17     other purpose, or transferred, except by resolution of the
    18     board of trustees receiving the affirmative vote of two-
    19     thirds of the members thereof. Whenever Federal or State
    20     funds are made available to charter cyber schools, the funds
    21     may be expended by the board of trustees for the purposes for
    22     which they are made available even though the provisions
    23     therefor were not made in the annual estimates or budget of
    24     the charter cyber entity.
    25         (5)  Make contracts and leases for the procurement of
    26     services, equipment and supplies.
    27         (6)  Incur temporary debts in anticipation of the receipt
    28     of funds.
    29         (7)  Solicit and accept any gifts or grants for charter
    30     cyber school purposes.
    20070H0446B2951                 - 26 -     

     1     (b)  Additional powers.--A charter cyber school shall have
     2  such other powers as are necessary to fulfill its charter and
     3  which are not inconsistent with this article.
     4     (c)  Indebtedness.--Any indebtedness incurred by a charter
     5  cyber school in the exercise of the powers specified in this
     6  section shall not impose any liability or legal obligation upon
     7  the Commonwealth.
     8  Section 1712-C.  Powers of board of trustees.
     9     (a)  General powers.--The board of trustees of a charter
    10  cyber school shall have the authority to decide matters related
    11  to the operation of the school, including, but not limited to,
    12  budgeting, except as set forth in sections 2528 and 2529,
    13  curriculum and operating procedures, subject to the school's
    14  charter. The board shall have the authority to employ, discharge
    15  and contract with necessary professional and nonprofessional
    16  employees subject to the school's charter and the provisions of
    17  this article.
    18     (b)  Compliance with Sunshine Act.--The board of trustees
    19  shall comply with 65 Pa.C.S. Ch. 7 (relating to open meetings).
    20     (c)  Conflict of interest.--No member of the board of
    21  trustees or employee of the charter cyber school may do business
    22  with the school or the management of the school nor may a person
    23  affiliated with the management of the school sit on the board of
    24  trustees.
    25  Section 1713-C.  Term and form of charter.
    26     (a)  Written charter.--Upon approval of a charter application
    27  under section 1727-C, a written charter shall be developed which
    28  shall contain the provisions of the charter application and
    29  which shall be signed by the department or by the chairman of
    30  the appeal board pursuant to section 1727-C(j) and the board of
    20070H0446B2951                 - 27 -     

     1  trustees of the charter cyber school. This written charter, when
     2  duly signed by the department and the charter cyber school's
     3  board of trustees, shall act as legal authorization for the
     4  establishment of a charter cyber school. This written charter
     5  shall be legally binding on both the department and the charter
     6  cyber school's board of trustees.
     7     (b)  Term.--The charter shall be for a period of no less than
     8  three nor more than five years and may be renewed for five-year
     9  periods upon reauthorization by the department or the appeal
    10  board.
    11     (c)  Organization.--A charter will be granted only for a
    12  school organized as a public, nonprofit corporation.
    13  Section 1714-C.  Facilities.
    14     (a)  Location.--A charter cyber school may be located in any
    15  suitable location.
    16     (b)  Exemption from regulation.--The charter cyber school
    17  facility shall be exempt from public school facility regulations
    18  except those pertaining to the health or safety of the pupils.
    19  Section 1715-C.  School staff.
    20     (a)  Requirements.--The board of trustees shall determine the
    21  level of compensation and all terms and conditions of employment
    22  of the staff except as may otherwise be provided in this
    23  article. At least 75% of the professional staff members of a
    24  charter cyber school shall hold appropriate State certification.
    25  Employees of a charter cyber school may organize under the act
    26  of July 23, 1970 (P.L.563, No.195), known as the Public Employe
    27  Relations Act. The board of trustees of a charter cyber school
    28  shall be considered an employer for the purposes of Article XI-
    29  A. Upon formation of one or more collective bargaining units at
    30  the school, the board of trustees shall bargain with the
    20070H0446B2951                 - 28 -     

     1  employees based on the provisions of this article, Article XI-A
     2  and the Public Employe Relations Act. Collective bargaining
     3  units at a charter cyber school shall be separate from any
     4  collective bargaining unit of the school district in which the
     5  charter cyber school is located and shall be separate from any
     6  other collective bargaining unit. A charter cyber school shall
     7  be considered a school entity as provided for in section 1161-A
     8  for the purpose of the secretary seeking an injunction requiring
     9  the charter cyber school to meet the minimum requirements for
    10  instruction as provided for in this article.
    11     (b)  Qualifications.--Each charter application shall list the
    12  general qualifications needed to staff any noncertified
    13  positions. Professional employees who do not hold appropriate
    14  Pennsylvania certification must present evidence that they:
    15         (1)  Meet the qualifications in sections 1109 and 1209.
    16         (2)  Have demonstrated satisfactorily a combination of
    17     experience, achievement and qualifications as defined in the
    18     charter cyber school application in basic skills, general
    19     knowledge, professional knowledge and practice and subject
    20     matter knowledge in the subject area where an individual will
    21     teach.
    22     (c)  Retirement and social security.--All employees of a
    23  charter cyber school shall be enrolled in the Public School
    24  Employees' Retirement System in the same manner as set forth in
    25  24 Pa.C.S. § 8301(a) (relating to mandatory and optional
    26  membership). The Commonwealth shall make contributions on behalf
    27  of charter cyber school employees, and the charter cyber school
    28  shall be considered a school district and shall make payments by
    29  employers and payments on account of Social Security as
    30  established under 24 Pa.C.S. Pt. IV (relating to retirement for
    20070H0446B2951                 - 29 -     

     1  school employees). For purposes of payments by employers, a
     2  charter cyber school shall be considered a school district under
     3  24 Pa.C.S. § 8329(a)(1) (relating to payments on account of
     4  social security deductions from appropriations). The market
     5  value/income aid ratio used in calculating payments as
     6  prescribed in this subsection shall be a composite market
     7  value/income aid ratio for the participating school districts as
     8  determined by the department. Except as otherwise provided,
     9  employees of a charter cyber school shall make regular member
    10  contributions as required for active members under 24 Pa.C.S.
    11  Pt. IV. For purposes of this subsection, a charter cyber school
    12  shall be deemed to be a "public school" as defined in 24 Pa.C.S.
    13  § 8102 (relating to definitions).
    14     (d)  Health care benefits.--Every employee of a charter cyber
    15  school shall be provided the same health care benefits as the
    16  employee would be provided if the employee were an employee of
    17  the local district. The charter school shall make any required
    18  employer's contribution to the district's health plan to an
    19  insurer, a local board of school directors or a contractual
    20  representative of school employees, whichever is appropriate to
    21  provide the required coverage.
    22     (e)  Certification.--Professional employees who hold a first
    23  level teaching or administrative certificate may, at their
    24  option, have the time completed in satisfactory service in a
    25  charter cyber school applied to the length of service
    26  requirements for the next level of certification.
    27     (f)  Criminal history.--All applicants for a position as a
    28  charter cyber school employee who shall have direct contact or
    29  electronic contact via the Internet or e-mail with students
    30  shall be required to submit a report of criminal history record
    20070H0446B2951                 - 30 -     

     1  information as provided for in section 111 prior to accepting a
     2  position with the charter cyber school. This subsection shall
     3  also apply to any individual who volunteers to work on a full-
     4  time or part-time basis at the charter cyber school.
     5     (g)  Child abuse clearance.--All applicants for a position as
     6  a school employee shall be required to submit the official
     7  clearance statement regarding child injury or abuse from the
     8  Department of Public Welfare as required by 23 Pa.C.S. Ch. 63
     9  Subch. C.2 (relating to background checks for employment in
    10  schools). This section shall also apply to any individual who
    11  volunteers to work on a full-time or part-time basis at a
    12  charter cyber school.
    13  Section 1716-C.  Tort liability.
    14     For purposes of tort liability, employees of the charter
    15  cyber school shall be considered public employees and the board
    16  of trustees shall be considered the public employer in the same
    17  manner as political subdivisions and local agencies. The board
    18  of trustees of a charter cyber school and the charter cyber
    19  school shall be solely liable for any and all damages of any
    20  kind resulting from any legal challenge involving the operation
    21  of a charter cyber school. Notwithstanding this requirement, the
    22  local board of directors of a school entity shall not be held
    23  liable for any activity or operation related to the program of
    24  the charter cyber school.
    25  Section 1717-C.  Causes for nonrenewal or termination.
    26     (a)  Revocation.--During the term of the charter or at the
    27  end of the term of the charter, the department may choose to
    28  revoke or not to renew the charter based on any of the
    29  following:
    30         (1)  One or more material violations of any of the
    20070H0446B2951                 - 31 -     

     1     conditions, standards or procedures contained in the written
     2     charter signed pursuant to section 1713-C.
     3         (2)  Failure to meet the requirements for student
     4     performance set forth in 22 Pa. Code Ch. 4 (relating to
     5     academic standards and assessment) or subsequent regulations
     6     promulgated to replace 22 Pa. Code Ch. 4 or failure to meet
     7     any performance standard set forth in the written charter
     8     signed pursuant to section 1713-C.
     9         (3)  Failure to meet generally accepted standards of
    10     fiscal management or audit requirements.
    11         (4)  Violation of provisions of this article.
    12         (5)  Violation of any provision of law from which the
    13     charter cyber school has not been exempted, including Federal
    14     laws and regulations governing children with disabilities.
    15         (6)  The charter cyber school has been convicted of
    16     fraud.
    17     (b)  Disqualification.--A member of the board of trustees who
    18  is convicted of a felony or any crime involving moral turpitude
    19  shall be immediately disqualified from serving on the board of
    20  trustees.
    21     (c)  Notice.--Any notice of revocation or nonrenewal of a
    22  charter given by the department shall state the grounds for the
    23  action with reasonable specificity and give reasonable notice to
    24  the governing board of the charter cyber school of the date on
    25  which a public hearing concerning the revocation or nonrenewal
    26  will be held. The department shall conduct the hearing, present
    27  evidence in support of the grounds for revocation or nonrenewal
    28  stated in its notice and give the charter cyber school
    29  reasonable opportunity to offer testimony before taking final
    30  action. Formal action revoking or not renewing a charter shall
    20070H0446B2951                 - 32 -     

     1  be taken by the department at a public meeting pursuant to 65
     2  Pa.C.S. Ch. 7 (relating to open meetings) after the public has
     3  had 30 days to provide comments to the department. All
     4  proceedings of the department pursuant to this subsection shall
     5  be subject to 2 Pa.C.S. Ch. 5 Subch. A (relating to practice and
     6  procedure of Commonwealth agencies). Except as provided in
     7  subsection (d), the decision of the department shall not be
     8  subject to 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial review
     9  of Commonwealth agency action).
    10     (d)  Appeal.--The charter cyber school may appeal the
    11  decision of the department to revoke or not renew the charter to
    12  the appeal board. The appeal board shall have the exclusive
    13  review of a decision not to renew or revoke a charter. The
    14  appeal board shall review the record and shall have the
    15  discretion to supplement the record if the supplemental
    16  information was previously unavailable. The appeal board may
    17  consider the charter cyber school plan, annual reports, student
    18  performance and employee and community support for the charter
    19  cyber school in addition to the record. The appeal board shall
    20  give due consideration to the findings of the department and
    21  specifically articulate its reasons for agreeing or disagreeing
    22  with those findings in its written decision.
    23     (e)  Determination.--If the appeal board determines that the
    24  charter should not be revoked or should be renewed, the appeal
    25  board shall order the department to rescind its revocation or
    26  nonrenewal decision.
    27     (f)  Status of charter.--Except as provided in subsection
    28  (g), the charter shall remain in effect until final disposition
    29  by the appeal board.
    30     (g)  Special circumstances.--In cases where the health or
    20070H0446B2951                 - 33 -     

     1  safety of the school's pupils, staff or both is at serious risk,
     2  the department may take immediate action to revoke a charter.
     3     (h)  Review by Commonwealth Court.--All decisions of the
     4  appeal board shall be subject to appellate review by the
     5  Commonwealth Court.
     6     (i)  Dissolution.--When a charter is revoked, not renewed,
     7  forfeited, surrendered or otherwise ceases to operate, the
     8  charter cyber school shall be dissolved. After the disposition
     9  of any liabilities and obligations of the charter cyber school,
    10  any remaining assets of the charter cyber school, both real and
    11  personal, shall be distributed on a proportional basis to the
    12  school entities with students enrolled in the charter cyber
    13  school for the last full or partial school year of the charter
    14  cyber school. In no event shall such school entities or the
    15  Commonwealth be liable for any outstanding liabilities or
    16  obligations of the charter cyber school.
    17     (j)  Students.--When a charter is revoked or is not renewed,
    18  a student who attended the charter cyber school shall apply to
    19  another public school in the student's school district of
    20  residence. Normal application deadlines will be disregarded
    21  under these circumstances. All student records maintained by the
    22  charter cyber school shall be forwarded within ten days to the
    23  student's district of residence.
    24                  (c)  Establishment and Operation
    25  Section 1721-C.  Powers and duties of department.
    26     (a)  Powers and duties.--The department shall:
    27         (1)  Receive, review and act on applications for the
    28     creation of a charter cyber school and have the power to
    29     request further information from applicants, obtain input
    30     from interested persons or entities and hold hearings
    20070H0446B2951                 - 34 -     

     1     regarding applications.
     2         (2)  Renew the charter of a charter cyber school and
     3     renew the charter of a charter school approved under section
     4     1717-A or 1718-A which provides instruction through the
     5     Internet or other electronic means. Upon renewal of a charter
     6     of a charter school approved under section 1717-C or 1718-C,
     7     the charter school shall qualify as a charter cyber school
     8     under this article and shall be subject to the provisions of
     9     this article.
    10         (3)  Revoke or deny renewal of a charter cyber school's
    11     charter under the provisions of section 1717-C.
    12             (i)  Notwithstanding the provisions of section 1717-
    13         C(i), when the department has revoked or denied renewal
    14         of a charter, the charter cyber school shall be
    15         dissolved. After the disposition of the liabilities and
    16         obligations of the charter cyber school, any remaining
    17         assets of the charter cyber school shall be given over to
    18         the department. Upon the transfer of assets from the
    19         charter cyber school to the department, the department
    20         shall equally distribute any remaining funds of the
    21         charter cyber school to the school entities that enroll
    22         the former charter cyber school students.
    23             (ii)  Notwithstanding any laws to the contrary, the
    24         department may, after notice and hearing, take immediate
    25         action to revoke a charter if:
    26                 (A)  a material component of the student's
    27             education as required under this article is not being
    28             provided; or
    29                 (B)  the charter cyber school has failed to
    30             maintain the financial ability to provide services as
    20070H0446B2951                 - 35 -     

     1             required under this article.
     2         (4)  Execute charters after approval.
     3         (5)  Develop forms, including the notification form under
     4     section 1731-C(c), necessary to carry out the provisions of
     5     this article.
     6         (6)  Provide for funding at charter cyber schools in
     7     accordance with section 2527.
     8     (b)  Hearings.--Hearings conducted by the department shall be
     9  conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).
    10     (c)  Documents.--Documents of the appeal board shall be
    11  subject to the act of June 21, 1957 (P.L.390, No.212), referred
    12  to as the Right-to-Know Law.
    13  Section 1722-C.  Assessment and evaluation.
    14     The department shall:
    15         (1)  Annually assess whether each charter cyber school is
    16     meeting the goals of its charter as required under section
    17     1726-C(5) and is in compliance with the provisions of the
    18     charter and conduct a comprehensive review prior to granting
    19     a five-year renewal of the charter.
    20         (2)  Annually review each charter cyber school's
    21     performance on the Pennsylvania System of School Assessment
    22     test, standardized tests and other performance indicators to
    23     ensure compliance with 22 Pa. Code Ch. 4 (relating to
    24     academic standards and assessment) or subsequent regulations
    25     promulgated to replace 22 Pa. Code Ch. 4.
    26         (3)  Have ongoing access to all records, instructional
    27     materials and student and staff records of each charter cyber
    28     school and to every charter cyber school facility to ensure
    29     the charter cyber school is in compliance with its charter
    30     and this article.
    20070H0446B2951                 - 36 -     

     1  Section 1723-C.  Charter cyber school requirements and
     2                     prohibitions.
     3     (a)  Special financial requirements prohibited.--A charter
     4  cyber school shall not:
     5         (1)  except as provided for in subsection (e), provide
     6     payments to parents or guardians for the purchase of
     7     instructional materials; or
     8         (2)  except as compensation for the provision of specific
     9     services, enter into agreements to provide funds to a school
    10     entity.
    11     (b)  Enrollment.--A charter cyber school shall report to the
    12  department an increase or a decrease of 15% or more in its
    13  anticipated enrollment set forth in the application under
    14  section 1729-C(11).
    15     (c)  Department.--A charter cyber school shall make available
    16  upon request, either in writing or electronically, to the
    17  department the following:
    18         (1)  A copy of the charter.
    19         (2)  A copy of the charter cyber school application.
    20         (3)  A copy of all annual reports prepared by the charter
    21     cyber school.
    22     (c.1)  School district.--A charter cyber school shall make
    23  available upon request, either in writing or electronically, to
    24  each student's school district of residence, a list of all
    25  students from that school district enrolled in the charter cyber
    26  school.
    27     (d)  Parent or guardian.--Upon request and prior to the
    28  student's first day in a charter cyber school, the charter cyber
    29  school shall, either in writing or electronically, provide to
    30  the parent or guardian of a student the following:
    20070H0446B2951                 - 37 -     

     1         (1)  A list and brief description of the courses of
     2     instruction the student will receive. The list shall be
     3     updated annually for each grade level in which the student is
     4     enrolled.
     5         (2)  A description of the lessons and activities to be
     6     offered both online and off-line.
     7         (3)  The manner in which attendance will be reported and
     8     work will be authenticated.
     9         (4)  A list of all standardized tests the student will be
    10     required to take during the school year and the place where
    11     the test will be administered, if available.
    12         (5)  The meetings to be held during the school year
    13     between a parent or guardian and a teacher and among other
    14     school officials or parents or guardians and the manner in
    15     which the parent or guardian will be notified of the time and
    16     place for the meeting.
    17         (6)  The address of the charter cyber school and the
    18     name, telephone number and e-mail address of the school
    19     administrator and other school personnel.
    20         (7)  A list of any extracurricular activities provided by
    21     the charter cyber school.
    22         (8)  The names of the student's teachers, if available,
    23     and the manner in which each teacher can be contacted by the
    24     student or the parent or guardian.
    25         (9)  A list of all services that will be provided to the
    26     student by the charter cyber school.
    27         (10)  Copies of policies relating to computer security
    28     and privacy, truancy, absences, discipline and withdrawal or
    29     expulsion of students.
    30         (11)  Information on:
    20070H0446B2951                 - 38 -     

     1             (i)  The charter cyber school's professional staff,
     2         including the number of staff personnel, their education
     3         level and experience.
     4             (ii)  The charter cyber school's performance on the
     5         PSSA test and other standardized test scores.
     6         (12)  Information regarding the proper usage of equipment
     7     and materials and the process for returning equipment and
     8     materials supplied to the students by the charter cyber
     9     school. A parent or guardian shall acknowledge, either in
    10     writing or electronically, the receipt of this information.
    11         (13)  A description of the school calendar, including,
    12     but not limited to, the time frame that will constitute a
    13     school year and a school week, holidays and term breaks.
    14     (e)  Students.--For each student enrolled, a charter cyber
    15  school shall:
    16         (1)  provide all instructional materials;
    17         (2)  provide all equipment, including, but not limited
    18     to, a computer, computer monitor and printer; and
    19         (3)  provide or reimburse for all technology and services
    20     necessary for the online delivery of the curriculum and
    21     instruction.
    22  The Commonwealth shall not be liable for any reimbursement owed
    23  to students, parents or guardians by a charter cyber school
    24  under paragraph (3).
    25     (f)  Annual report.--A charter cyber school shall submit an
    26  annual report no later than August 1 of each year to the
    27  department in the form prescribed by the department.
    28     (g)  Records and facilities.--A charter cyber school shall
    29  provide the department with ongoing access to all records and
    30  facilities necessary for the department to assess the charter
    20070H0446B2951                 - 39 -     

     1  cyber school in accordance with the provisions of this article.
     2     (h)  Offices and facilities.--A charter cyber school shall
     3  maintain an administrative office within this Commonwealth where
     4  all student records shall be maintained at all times and shall
     5  provide the department with the addresses of all offices and
     6  facilities of the charter cyber school, the ownership thereof
     7  and any lease arrangements. The administrative office of the
     8  charter cyber school shall be considered as the principal place
     9  of business for service of process for any action brought
    10  against the charter cyber school or charter cyber school staff
    11  members. The charter cyber school shall notify the department of
    12  any changes in this information within ten days of the change.
    13     (i)  Applicable law.--Any action taken against the charter
    14  cyber school, its successors or assigns or its employees,
    15  including any charter cyber school staff member as defined in
    16  the act of December 12, 1973 (P.L.397, No.141), known as the
    17  Professional Educator Discipline Act, shall be governed by the
    18  laws of this Commonwealth. If the department initiates an
    19  investigation or pursues an action pursuant to the Professional
    20  Educator Discipline Act involving any current or former charter
    21  cyber school staff member outside this Commonwealth, any
    22  reasonable expenses incurred by the department in such
    23  investigation or action shall be paid by the charter cyber
    24  school which employed that staff member at the time of the
    25  alleged misconduct.
    26  Section 1724-C.  Charter cyber school requirements.
    27     Charter cyber schools shall be required to comply with the
    28  following provisions:
    29         (1)  Except as otherwise provided in this article, a
    30     charter cyber school is exempt from statutory requirements
    20070H0446B2951                 - 40 -     

     1     established in this act, from regulations of the State board
     2     and the standards of the secretary not specifically
     3     applicable to charter cyber schools. Charter cyber schools
     4     are not exempt from statutes applicable to public schools
     5     other than this act.
     6         (2)  A charter cyber school shall be accountable to the
     7     parents, the public and the Commonwealth, with the
     8     delineation of that accountability reflected in the charter.
     9     Strategies for meaningful parent and community involvement
    10     shall be developed and implemented by each school.
    11         (3)  A charter cyber school shall not unlawfully
    12     discriminate in admissions, hiring or operation.
    13         (4)  A charter cyber school shall be nonsectarian in all
    14     operations.
    15         (5)  A charter cyber school shall not provide any
    16     religious instruction, nor shall it display religious objects
    17     and symbols on the premises of the charter cyber school.
    18         (6)  A charter cyber school shall not advocate unlawful
    19     behavior.
    20         (7)  A charter cyber school shall only be subject to the
    21     laws and regulations as provided for in this article.
    22         (8)  A charter cyber school shall participate in the
    23     Pennsylvania State Assessment System as provided for in 22
    24     Pa. Code Ch. 4 (relating to academic standards and
    25     assessment), or subsequent regulations promulgated to replace
    26     22 Pa. Code Ch. 4, in the manner in which the school district
    27     in which the charter cyber school is located is scheduled to
    28     participate.
    29         (9)  A charter cyber school shall provide a minimum of
    30     180 days of instruction or 900 hours per year of instruction
    20070H0446B2951                 - 41 -     

     1     at the elementary level, or 990 hours per year of instruction
     2     at the secondary level. Nothing in this paragraph shall
     3     preclude the use of computer and satellite linkages for
     4     delivering instruction to students.
     5         (10)  Boards of trustees and contractors of charter cyber
     6     schools shall be subject to the following statutory
     7     requirements governing construction projects and
     8     construction-related work:
     9             (i)  The following provisions of this act:
    10                 (A)  Sections 751 and 751.1.
    11                 (B)  Sections 756 and 757 insofar as they are
    12             consistent with the act of December 20, 1967
    13             (P.L.869, No.385), known as the Public Works
    14             Contractors' Bond Law of 1967.
    15             (ii)  Section 1 of the act of May 1, 1913 (P.L.155,
    16         No.104), referred to as the Separations Act.
    17             (iii)  The Public Works Contractors' Bond Law of
    18         1967.
    19             (iv)  The act of March 3, 1978 (P.L.6, No.3), known
    20         as the Steel Products Procurement Act.
    21         (11)  Trustees of a charter cyber school shall be public
    22     officials.
    23  Section 1725-C.  School district and intermediate unit
    24                     responsibilities.
    25     Subject to agreement between a charter cyber school and an
    26  intermediate unit or school district, the intermediate unit or a
    27  school district in which a student enrolled in a charter cyber
    28  school resides shall do all of the following:
    29         (1)  Provide the charter cyber school within ten days of
    30     receipt of the notice of the admission of the student under
    20070H0446B2951                 - 42 -     

     1     section 1731-C(a) with all records relating to the student,
     2     including transcripts, test scores and a copy of any
     3     individualized education program for that student.
     4         (2)  Enter into written agreements for the use of
     5     intermediate units or school facilities for, but not limited
     6     to, standardized testing or any program sponsored by the
     7     intermediate unit or school district.
     8         (3)  Upon request, provide assistance to the charter
     9     cyber school in the delivery of services to a student with
    10     disabilities. The school district or intermediate unit shall
    11     not charge the charter cyber school more for a service than
    12     it charges a school district.
    13  Section 1726-C.  Contents of application.
    14     An application to establish a charter cyber school shall
    15  include all of the following information:
    16         (1)  The identification of the charter applicant.
    17         (2)  The name of the proposed charter cyber school.
    18         (3)  The grade or age levels served by the school.
    19         (4)  The proposed governance structure of the charter
    20     cyber school, including a description and method for the
    21     appointment or election of members of the board of trustees.
    22     The board of trustees must include at least one member
    23     appointed by the secretary and two members who represent the
    24     intermediate unit serving that charter cyber school's region.
    25         (5)  The mission and education goals of the charter cyber
    26     school, the curriculum to be offered and the methods of
    27     assessing whether students are meeting educational goals.
    28         (6)  The admission policy and criteria for evaluating the
    29     admission of students which shall comply with the
    30     requirements of section 1730-C.
    20070H0446B2951                 - 43 -     

     1         (7)  Procedures which will be used regarding the
     2     suspension or expulsion of pupils. The procedures shall
     3     comply with section 1318.
     4         (8)  Information on the manner in which community groups
     5     will be involved in the charter cyber school planning
     6     process.
     7         (9)  The financial plan for the charter cyber school and
     8     the provisions which will be made for auditing the school
     9     under section 437.
    10         (10)  Procedures which shall be established to review
    11     complaints of parents regarding the operation of the charter
    12     cyber school.
    13         (11)  A description of and address of the physical
    14     facility in which the charter cyber school will be located
    15     and the ownership thereof and any lease arrangements.
    16         (12)  Information on the proposed school calendar for the
    17     charter cyber school, including the length of the school day
    18     and school year consistent with the provisions of section
    19     1502.
    20         (13)  The proposed faculty and a professional development
    21     plan for the faculty of a charter cyber school.
    22         (14)  Whether any agreements have been entered into or
    23     plans developed with the local school district regarding
    24     participation of the charter cyber school students in
    25     extracurricular activities within the school district.
    26         (15)  A report of criminal history record, pursuant to
    27     section 111, for all individuals who shall have direct
    28     contact or electronic contact via the Internet or e-mail with
    29     students.
    30         (16)  An official clearance statement regarding child
    20070H0446B2951                 - 44 -     

     1     injury or abuse from the Department of Public Welfare as
     2     required by 23 Pa.C.S. Ch. 63 Subch. C.2 (relating to
     3     background checks for employment in schools) for all
     4     individuals who shall have direct contact with students.
     5         (17)  How the charter cyber school will provide adequate
     6     liability and other appropriate insurance for the charter
     7     cyber school, its employees and the board of trustees of the
     8     charter cyber school.
     9  Section 1727-C.  Establishment of charter cyber school.
    10     (a)  Establishment.--A charter cyber school may be
    11  established by:
    12         (1)  an individual;
    13         (2)  one or more teachers who will teach at the proposed
    14     charter cyber school;
    15         (3)  parents or guardians of students who will enroll in
    16     the charter cyber school;
    17         (4)  a nonsectarian college, university or museum located
    18     in this Commonwealth;
    19         (5)  a nonsectarian corporation not-for-profit as defined
    20     in 15 Pa.C.S. § 5103 (relating to definitions);
    21         (6)  a corporation, association or partnership; or
    22         (7)  any combination of the entities listed in paragraph
    23     (1), (2), (3), (4), (5) or (6).
    24     (b)  Home education.--Section 1327.1 shall not apply to a
    25  charter cyber school established under this article.
    26     (c)  Sectarian entities.--No charter cyber school shall be
    27  established or funded by and no charter shall be granted to a
    28  sectarian school, institution or other entity.
    29     (d)  Attendance.--Attendance at a charter cyber school shall
    30  satisfy requirements for compulsory attendance.
    20070H0446B2951                 - 45 -     

     1     (e)  Application.--An application to establish a charter
     2  cyber school shall be submitted to the department by October 1
     3  of the school year preceding the school year in which the
     4  charter cyber school proposes to commence operation.
     5     (f)  Grant or denial.--Within 120 days of receipt of an
     6  application, the department shall grant or deny the application.
     7  The department shall review the application and shall hold at
     8  least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
     9  open meetings). At least 30 days prior to the hearing, the
    10  department shall publish in the Pennsylvania Bulletin and on the
    11  department's Internet website notice of the hearing and the
    12  purpose of the application.
    13     (g)  Evaluation criteria.--
    14         (1)  A charter cyber school application submitted under
    15     this article shall be evaluated by the department based on
    16     the following criteria:
    17             (i)  The demonstrated, sustainable support for the
    18         charter cyber school plan by teachers, parents or
    19         guardians and students.
    20             (ii)  The capability of the charter cyber school
    21         applicant, in terms of support and planning, to provide
    22         comprehensive learning experiences to students under the
    23         charter.
    24             (iii)  The extent to which the programs outlined in
    25         the application will enable students to meet the academic
    26         standards under 22 Pa. Code Ch. 4 (relating to academic
    27         standards and assessment) or subsequent regulations
    28         promulgated to replace 22 Pa. Code Ch. 4.
    29             (iv)  The extent to which the application meets the
    30         requirements of section 1729-C.
    20070H0446B2951                 - 46 -     

     1             (v)  The extent to which the charter cyber school may
     2         serve as a model for other public schools.
     3         (2)  Written notice of the action of the department shall
     4     be sent by certified mail to the applicant and published on
     5     the department's Internet website. If the application is
     6     denied, the reasons for denial, including a description of
     7     deficiencies in the application, shall be clearly stated in
     8     the notice.
     9         (3)  Upon approval of a charter cyber school application,
    10     a written charter shall be developed which shall contain the
    11     provisions of the charter application and be signed by the
    12     secretary and each member of the board of trustees of the
    13     charter cyber school. The charter, when duly signed, shall
    14     act as legal authorization of the establishment of a charter
    15     cyber school. The charter shall be legally binding on the
    16     department, the charter cyber school and its board of
    17     trustees. The charter shall be for a period of no less than
    18     three years nor more than five years and may be renewed for a
    19     period of five years by the department.
    20         (4)  The decision of the department to deny an
    21     application may be appealed to the appeal board.
    22     (h)  Funding.--Once approved a charter cyber school is
    23  eligible for funding by the department pursuant to section 2527.
    24     (i)  Denied application.--A charter cyber school applicant
    25  may revise and resubmit a denied application to the department.
    26  The department shall grant or deny the revised application
    27  within 60 days after its receipt.
    28     (j)  Appeal.--If the department fails to hold the required
    29  public hearing or to approve or disapprove the charter, the
    30  applicant may file its application as an appeal to the appeal
    20070H0446B2951                 - 47 -     

     1  board. The appeal board shall review the application and make a
     2  decision to approve or disapprove the charter based on the
     3  criteria in subsection (g).
     4  Section 1728-C.  Appeal board review.
     5     (a)  Jurisdiction.--The appeal board shall have the exclusive
     6  review of an appeal by a charter cyber school applicant or by
     7  the board of trustees of a charter cyber school on the decisions
     8  of the department, including:
     9         (1)  The denial of an application for a charter.
    10         (2)  The denial of a renewal of a charter.
    11         (3)  The revocation of a charter.
    12         (4)  An appeal under section 1727-C(j).
    13     (b)  Procedure.--The appeal board shall:
    14         (1)  Review the decision made by the department under
    15     subsection (a) on the record as certified by the department.
    16     The secretary shall recuse himself from all charter cyber
    17     school appeals and shall not participate in a hearing,
    18     deliberation or vote on a charter cyber school appeal. The
    19     appeal board may allow the department, the charter cyber
    20     school applicant or the board of trustees of a charter cyber
    21     school to supplement the record if the supplemental
    22     information was previously unavailable.
    23         (2)  Meet to officially review the certified record no
    24     later than 30 days after the date of filing the appeal.
    25         (3)  Issue a written decision affirming or denying the
    26     appeal no later than 60 days following its review.
    27         (4)  In the case of a decision by the department to deny
    28     a charter cyber application, make its decision based on
    29     section 1727-C(g)(1). A decision by the appeal board to
    30     reverse the decision of the department and grant a charter
    20070H0446B2951                 - 48 -     

     1     shall serve as a requirement for the secretary to sign the
     2     written charter of the charter cyber school.
     3         (5)  In the case of a decision by the department to
     4     revoke or deny renewal of charter of a charter cyber school
     5     in accordance with section 1721-C(a)(3), make its decision
     6     based on section 1717-C(a). A decision of the appeal board to
     7     reverse the decision of the department to not revoke or deny
     8     renewal of a charter shall serve as a requirement of the
     9     department to not revoke or to not deny renewal of the
    10     charter of the charter cyber school.
    11     (c)  Stay.--If the department appeals the decision of the
    12  appeal board, the appeal board's decision shall be stayed only
    13  upon order of the appeal board, the Commonwealth Court or the
    14  Pennsylvania Supreme Court.
    15     (d)  Review.--All decisions of the appeal board shall be
    16  subject to appellate review by the Commonwealth Court.
    17  Section 1729-C.  Charter cyber school application.
    18     In addition to the provisions of section 1726-C, an
    19  application to establish a charter cyber school shall also
    20  include the following:
    21         (1)  The curriculum to be offered and how it meets the
    22     requirements of 22 Pa. Code Ch. 4 (relating to academic
    23     standards and assessment) or subsequent regulations
    24     promulgated to replace 22 Pa. Code Ch. 4.
    25         (2)  The number of courses required for elementary and
    26     secondary students.
    27         (3)  An explanation of the amount of online time required
    28     for elementary and secondary students.
    29         (4)  The manner in which teachers will deliver
    30     instruction, assess academic progress and communicate with
    20070H0446B2951                 - 49 -     

     1     students to provide assistance.
     2         (5)  A specific explanation of any cooperative learning
     3     opportunities, meetings with students, parents and guardians,
     4     field trips or study sessions.
     5         (6)  The technology, including types of hardware and
     6     software, equipment and other materials which will be
     7     provided by the charter cyber school to the student.
     8         (7)  A description of how the charter cyber school will
     9     define and monitor a student's school day, including the
    10     delineation of online and off-line time.
    11         (8)  A description of commercially prepared standardized
    12     achievement tests that will be used by the charter cyber
    13     school in addition to the Pennsylvania System of School
    14     Assessment test, including the grade levels that will be
    15     tested and how the data collected from the tests will be used
    16     to improve instruction.
    17         (9)  The technical support that will be available to
    18     students and parents or guardians.
    19         (10)  The privacy and security measures to ensure the
    20     confidentiality of data gathered online.
    21         (11)  The level of anticipated enrollment during each
    22     school year of the proposed charter, including expected
    23     increases due to the addition of grade levels.
    24         (12)  The methods to be used to insure the authenticity
    25     of student work and adequate proctoring of examinations.
    26         (13)  The provision of education and related services to
    27     students with disabilities, including evaluation and the
    28     development and revision of individualized education
    29     programs.
    30         (14)  Policies regarding truancy, absences and withdrawal
    20070H0446B2951                 - 50 -     

     1     of students, including the manner in which the charter cyber
     2     school will monitor attendance consistent with the provisions
     3     of section 1724-C(9).
     4         (15)  The types and frequency of communication between
     5     the charter cyber school and the student and the manner in
     6     which the charter cyber school will communicate with parents
     7     and guardians.
     8         (16)  The addresses of all facilities and offices of the
     9     charter cyber school, the ownership thereof and any lease
    10     arrangements.
    11  Section 1730-C.  Enrollment.
    12     (a)  General rule.--All resident children in this
    13  Commonwealth qualify for admission to a charter cyber school
    14  within the provisions of subsection (b). If more students apply
    15  to the charter cyber school than the number of attendance slots
    16  available in the school, then students must be selected on a
    17  random basis from a pool of qualified applicants meeting the
    18  established eligibility criteria and submitting an application
    19  by the deadline established by the charter cyber school, except
    20  that the charter cyber school may give preference in enrollment
    21  to a child of a parent who has actively participated in the
    22  development of the charter cyber school and to siblings of
    23  students presently enrolled in the charter cyber school.
    24     (b)  Admission policy.--
    25         (1)  A charter cyber school shall not discriminate in its
    26     admission policies or practices on the basis of intellectual
    27     ability, except as provided in paragraph (2), or athletic
    28     ability, measures of achievement or aptitude, status as a
    29     person with a disability, proficiency in the English language
    30     or any other basis that would be illegal if used by a school
    20070H0446B2951                 - 51 -     

     1     district.
     2         (2)  A charter cyber school may limit admission to a
     3     particular grade level, a targeted population group composed
     4     of at-risk students, or areas of concentration of the school
     5     such as mathematics, science or the arts. A charter cyber
     6     school may establish reasonable criteria to evaluate
     7     prospective students which shall be outlined in the school's
     8     charter.
     9     (c)  Nonresident students.--If available classroom space
    10  permits, a charter cyber school may enroll nonresident students
    11  on a space-available basis, and the student's district of
    12  residence shall permit the student to attend the charter school.
    13  The terms and conditions of the enrollment shall be outlined in
    14  the school's charter.
    15  Section 1731-C.  Enrollment and notification.
    16     (a)  Notice to school district.--
    17         (1)  Within 15 days of the enrollment of a student to a
    18     charter cyber school, the parent or guardian and the charter
    19     cyber school shall notify the student's school district of
    20     residence of the enrollment through the use of the
    21     notification form under subsection (b).
    22         (2)  If a school district which has received notice under
    23     paragraph (1) determines that a student is not a resident of
    24     the school district, the following apply:
    25             (i)  Within seven days of receipt of the notice under
    26         paragraph (1), the school district shall notify the
    27         charter cyber school and the department that the student
    28         is not a resident of the school district. Notification of
    29         nonresidence shall include the basis for the
    30         determination.
    20070H0446B2951                 - 52 -     

     1             (ii)  Within seven days of notification under
     2         subparagraph (i), the charter cyber school shall review
     3         the notification of nonresidence, respond to the school
     4         district and provide a copy of the response to the
     5         department.
     6             (iii)  Within seven days of receipt of the response
     7         under subparagraph (ii), the school district shall notify
     8         the charter cyber school that it agrees with the charter
     9         cyber school's determination or does not agree with the
    10         charter cyber school's determination.
    11             (iv)  A school district that has notified the charter
    12         cyber school that it does not agree with the charter
    13         cyber school's determination under subparagraph (iii)
    14         shall appeal to the department for a final determination.
    15             (v)  All decisions of the department regarding the
    16         school district of residence of a student shall be
    17         subject to review by the Commonwealth Court.
    18             (vi)  If a final determination is made that a student
    19         is not a resident of an appealing school district, the
    20         charter cyber school shall return all funds provided on
    21         behalf of that student to the department within 30 days.
    22     (b)  Notification form.--The department shall develop a
    23  notification form for use under subsection (a). The notification
    24  shall include:
    25         (1)  The name, home address and mailing address of the
    26     student.
    27         (2)  The grade in which the student is being enrolled.
    28         (3)  The date the student will be enrolled.
    29         (4)  The name and address of the charter cyber school and
    30     the name and telephone number of a contact person able to
    20070H0446B2951                 - 53 -     

     1     provide information regarding the charter cyber school.
     2         (5)  The signature of the parent or guardian and an
     3     authorized representative of the charter cyber school.
     4     (c)  Withdrawal.--The charter cyber school and the parent or
     5  guardian of a student enrolled in a charter cyber school shall
     6  provide written notification to the student's school district of
     7  residence within 15 days following the withdrawal of a student
     8  from the charter cyber school.
     9  Section 1732-C.  Equipment.
    10     All computers, software and Internet connections are the
    11  property of the charter cyber school, not the parents or the
    12  students, and the disposition of the property of the school is
    13  left to the school itself. If a student leaves the charter cyber
    14  school, the student must return the school's property to it in
    15  usable condition or pay a fine in the form of fair market value
    16  for it, enforceable in a court of law.
    17  Section 1733-C.  Extracurricular activities.
    18     (a)  Prohibitions.--Notwithstanding any provision to the
    19  contrary, no school district of residence shall prohibit a
    20  student of a charter cyber school from participating in any
    21  extracurricular activity of that school district of residence,
    22  provided, that the student is able to fulfill all of the
    23  requirements of participation in such activity and the charter
    24  school does not provide the same extracurricular activity.
    25     (b)  Written agreements.--The school districts and charter
    26  cyber schools shall enter into a written agreement that
    27  includes, but is not limited to, the following provisions:
    28         (1)  Eligibility criteria that apply to charter cyber
    29     school students for participation in the activity.
    30         (2)  Tryout criteria that apply to charter cyber school
    20070H0446B2951                 - 54 -     

     1     students for participation in the activity.
     2         (3)  The method by which charter cyber schools shall
     3     inform school districts that the charter cyber school's
     4     students meet the eligibility and tryout criteria and also
     5     comply with all policies, rules and regulations, or their
     6     equivalent, of the governing organization of the activity.
     7         (4)  Any transportation, safety or security issues that
     8     the parties desire to address.
     9     (c)  Physical examination or medical testing.--Where the
    10  activity requires completion of a physical examination or
    11  medical test as a condition of participation and the school
    12  district of residence offers such physical examination or
    13  medical test to students enrolled in the school district, the
    14  school district of residence shall permit a child who is
    15  enrolled in a charter cyber school to access such physical
    16  examination or medical test. The school district shall publish
    17  the dates and times of such physical examination or medical test
    18  on its publicly accessible Internet website.
    19  Section 1734-C.  Applicability of other provisions of this act
    20                     and of other acts and regulations.
    21     (a)  General requirements.--Charter cyber schools shall be
    22  subject to the following:
    23         (1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,
    24     436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,
    25     808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,
    26     1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,
    27     1523, 1531, 1547, 1721-A, 1730-A, 1731-A(a)(1) and (b) and
    28     2014-A, Articles XIII-A and XIV and former Article XII-A.
    29         (2)  The act of July 17, 1961 (P.L.776, No.341), known as
    30     the Pennsylvania Fair Educational Opportunities Act.
    20070H0446B2951                 - 55 -     

     1         (3)  The act of July 19, 1965 (P.L.215, No.116), entitled
     2     "An act providing for the use of eye protective devices by
     3     persons engaged in hazardous activities or exposed to known
     4     dangers in schools, colleges and universities."
     5         (4)  Section 4 of the act of January 25, 1966 (1965
     6     P.L.1546, No.541), entitled "An act providing scholarships
     7     and providing funds to secure Federal funds for qualified
     8     students of the Commonwealth of Pennsylvania who need
     9     financial assistance to attend postsecondary institutions of
    10     higher learning, making an appropriation, and providing for
    11     the administration of this act."
    12         (5)  The act of July 12, 1972 (P.L.765, No.181), entitled
    13     "An act relating to drugs and alcohol and their abuse,
    14     providing for projects and programs and grants to educational
    15     agencies, other public or private agencies, institutions or
    16     organizations."
    17         (6)  The act of December 15, 1986 (P.L.1595, No.175),
    18     known as the Antihazing Law.
    19     (b)  Regulations.--Charter cyber schools shall be subject to
    20  the following provisions of 22 Pa. Code (relating to education):
    21         (1)  Chapter 4 (relating to academic standards and
    22     assessment).
    23         (2)  Chapter 11 (relating to student attendance).
    24         (3)  Chapter 12 (relating to students and student
    25     services).
    26         (4)  Section 32.3 (relating to assurances).
    27         (5)  Section 121.3 (relating to discrimination
    28     prohibited).
    29         (6)  Section 235.4 (relating to practices).
    30         (7)  Section 235.8 (relating to civil rights).
    20070H0446B2951                 - 56 -     

     1         (8)  Chapter 711 (relating to charter school services and
     2     programs for children with disabilities).
     3     (c)  Bidding requirements.--Charter cyber schools are subject
     4  to the same bidding requirements as school districts and other
     5  governmental entities in this Commonwealth.
     6     (d)  Existing charter schools.--
     7         (1)  The charter of a charter school approved under
     8     section 1717-A or 1718-A which provides instruction through
     9     the Internet or other electronic means shall remain in effect
    10     for the duration of the charter and shall be subject to the
    11     provisions of section 1741-C.
    12         (2)  In addition to subsections (a) and (b), the
    13     following provisions of this article shall apply to a charter
    14     school approved under section 1717-A or 1718-A which provides
    15     instruction through the Internet or other electronic means:
    16             (i)  Section 1723-C(c), (d), (e), (h) and (i).
    17             (ii)  Section 1725-C.
    18             (iii)  Section 1731-C.
    19                   (d)  Miscellaneous Provisions
    20  Section 1741-C.  Effect on certain existing charter schools.
    21     (a)  Determination.--For a charter school approved under
    22  section 1717-A or 1718-A which provides instruction through the
    23  Internet or other electronic means, the department shall
    24  determine:
    25         (1)  whether the charter school is in compliance with
    26     this article;
    27         (2)  whether the charter school has provided notification
    28     of the enrollment of each existing student to the school
    29     district of residence; and
    30         (3)  how the charter school plans to comply with section
    20070H0446B2951                 - 57 -     

     1     1723-C.
     2     (b)  Notification of compliance.--The department shall:
     3         (1)  Notify each charter school and the chartering school
     4     district of the department's determination under subsection
     5     (a). The notification shall include specific requirements
     6     with which the charter school has failed to comply.
     7         (2)  Publish a copy of the notification on the
     8     department's Internet website.
     9     (c)  Charter school requirement.--A charter school subject to
    10  the requirements of this section shall, either in writing or
    11  electronically, provide the parent or guardian of any student
    12  enrolled in the charter school a copy of the department's
    13  determination under subsection (b).
    14     (d)  School districts.--A school district shall not renew the
    15  charter of a charter school approved under section 1717-A or
    16  1718-A which provides instruction through the Internet or other
    17  electronic means or approve a charter for a charter cyber
    18  school.
    19     (e)  Renewal of charter for certain existing charter
    20  schools.--Upon the expiration of its charter, a charter school
    21  approved under section 1717-A or 1718-A which provides
    22  instruction through the Internet or other electronic means shall
    23  seek renewal of its charter from the department under this
    24  article. The charter shall be amended as needed to reflect the
    25  requirements of this article.
    26  Section 1742-C.  Regulations.
    27     The department may issue regulations to implement this
    28  article.
    29     Section 6.  The act is amended by adding sections to read:
    30     Section 2527.  Payments to Charter Cyber Schools.--(a)
    20070H0446B2951                 - 58 -     

     1  Notwithstanding any other provision of this article, each
     2  charter cyber school shall be paid by the Commonwealth on
     3  account of the instruction of pupils an amount as follows:
     4     (1)  For nonspecial education pupils:
     5     (i)  Five thousand dollars ($5,000) per pupil enrolled in a
     6  charter cyber school enrolling one thousand (1,000) or fewer
     7  pupils.
     8     (ii)  Four thousand dollars ($4,000) per pupil enrolled in a
     9  charter cyber school enrolling between one thousand one (1,001)
    10  pupils and four thousand nine hundred ninety-nine (4,999)
    11  pupils.
    12     (iii)  Three thousand dollars ($3,000) per pupil enrolled in
    13  a charter cyber school enrolling five thousand (5,000) pupils or
    14  more.
    15     (2)  For special education pupils, the amount shall be
    16  equivalent to the cost of a nonspecial education pupil as set
    17  forth in paragraph (1), plus the actual cost of providing
    18  special education services at the charter cyber school in
    19  accordance with the pupil's individualized education program.
    20     (3)  Enrollments shall be determined by the number of
    21  students enrolled in the charter cyber school as of May 31 of
    22  the previous school year or, in the case of a new charter cyber
    23  school, the enrollment as of the first day of the current school
    24  year.
    25     (b)  A student enrolled in a charter cyber school shall not
    26  be included in the average daily membership of the student's
    27  district of residence for the purpose of providing basic
    28  education funding payments and special education funding
    29  pursuant to this article.
    30     (c)  The department shall not be required to provide per
    20070H0446B2951                 - 59 -     

     1  pupil funding to charter cyber schools for any student who does
     2  not meet the minimum requirements for the age of beginners
     3  established by the board of school directors in the student's
     4  school district of residence.
     5     (d)  Payments to charter cyber schools shall be paid through
     6  a separate line item from the department's payments to school
     7  districts and shall not be deducted from a school district's
     8  basic education subsidy.
     9     Section 2528.  Requirements for Charter Cyber School
    10  Budgeting.--(a) The board of trustees of each charter cyber
    11  school shall, annually, at least thirty (30) days prior to the
    12  adoption of the annual budget, prepare a proposed budget of the
    13  amount of funds that will be required by the charter cyber
    14  school in its departments for the following fiscal year. Such
    15  proposed budget shall be prepared on a uniform form, prepared
    16  and furnished by the Department of Education. On the date of the
    17  adoption of the proposed budget, the board of trustees shall
    18  certify to the Department of Education that the proposed budget
    19  has been prepared, presented and will be made available for
    20  public inspection, upon request, using the uniform form prepared
    21  and furnished by the department as follows:
    22     (1)  Upon request, the proposed budget shall be made
    23  available for duplication to any person at least twenty (20)
    24  days prior to the date set for the adoption of the budget.
    25     (2)  Fees for duplication under this paragraph by
    26  photocopying, printing from electronic media, transmission by
    27  facsimile or other electronic means and other means for
    28  duplication must be reasonable and based on prevailing fees for
    29  comparable duplication services provided by local business
    30  entities.
    20070H0446B2951                 - 60 -     

     1     (b)  The board of trustees shall adopt a budget by the
     2  thirtieth day of June of each year. The budget shall include the
     3  State appropriation and any gifts or grants awarded to the
     4  charter cyber school. Within fifteen (15) days after the
     5  adoption of the budget, the board of trustees shall file a copy
     6  of the same with the Department of Education and with the
     7  Education Committee of the Senate and the Education Committee of
     8  the House of Representatives by the fifteenth day of September
     9  each year.
    10     (c)  The board of trustees may, during any fiscal year, make
    11  additional appropriations or increase existing appropriations to
    12  meet emergencies, such as epidemics, floods, fires or other
    13  catastrophes.
    14     (d)  The board of trustees shall have the power to authorize
    15  the transfer of any unencumbered balance, or any portion
    16  thereof, from one class of expenditure or item to another, but
    17  such action shall be taken only during the last nine (9) months
    18  of the fiscal year.
    19     Section 2529.  Limitations on Certain Unreserved Fund
    20  Balances.--(a)  For the school year 2007-2008, and each school
    21  year thereafter, no charter cyber school shall adopt a budget
    22  that includes an estimated ending unreserved, undesignated fund
    23  balance that is more than ten per centum (10%) of the charter
    24  cyber school's total budgeted expenditures. If a charter cyber
    25  school fails to comply with this section, the department shall
    26  deduct from the department's next payment to the charter cyber
    27  school the amount by which the estimated ending unreserved,
    28  undesignated fund balances exceed the ten per centum (10%)
    29  threshold of total budgeted expenditures.
    30     (b)  By August 15, 2007, and on the fifteenth day of August
    20070H0446B2951                 - 61 -     

     1  of each year thereafter, each charter cyber school shall provide
     2  the Department of Education with information certifying
     3  compliance with this section. Such information shall be provided
     4  in a form and manner prescribed by the Department of Education
     5  and shall include information on the charter cyber school's
     6  estimated unreserved, undesignated fund balance as a dollar
     7  amount and as a percentage of the charter cyber school's total
     8  budgeted expenditures for that school year.
     9     (c)  As used in this section, "estimated ending unreserved,
    10  undesignated fund balance" shall mean that portion of the fund
    11  balance which is appropriable for a specific or tentative future
    12  use, that is projected to remain in the general fund accounts of
    13  the charter cyber school at the close of the school year for
    14  which a charter cyber school's budget was adopted.
    15     Section 2530.  Auditing Requirements.--(a)  The finances of
    16  every charter cyber school in every department thereof, together
    17  with the account of all charter cyber school treasurers, school
    18  depositories, teachers' retirement funds, teachers' institute
    19  funds, directors' association funds, sinking funds and other
    20  funds belonging to or controlled by the charter cyber school,
    21  shall be properly audited by an independent auditor who shall be
    22  a certified public accountant who shall be named prior to the
    23  end of the fiscal year and shall have all the powers and duties
    24  of such other auditors provided for within this act, except that
    25  the audit shall be made in accordance with generally accepted
    26  auditing standards. The compensation of the independent auditor
    27  shall be fixed by the charter cyber school's board of trustees
    28  and shall be paid from the funds of the charter cyber school.
    29     (b)  In order that the aforesaid account may be thoroughly
    30  and properly audited, it shall be the duty of all charter cyber
    20070H0446B2951                 - 62 -     

     1  schools' boards of trustees and other proper persons to furnish
     2  to such auditors, whenever required by them for auditing
     3  purposes, statements and accounts of all finances of the charter
     4  cyber school and other funds belonging to or controlled by the
     5  charter cyber school, including assets and liabilities, together
     6  with access to all books, records, tax duplicates, vouchers,
     7  school orders, payrolls, letters and other matters pertaining to
     8  the same.
     9     (c)  The auditors, as provided in subsection (a), shall have
    10  the power and are hereby authorized to issue subpoenas to compel
    11  the attendance of charter cyber school officials or other
    12  persons whom they deem necessary to examine as witnesses and to
    13  compel the production of all books, records, vouchers, letters
    14  and papers relating to any accounts being audited by them. The
    15  auditors shall have the power to administer oaths or
    16  affirmations to all persons appearing before them as witnesses,
    17  and any person guilty of testifying falsely in any such
    18  examination shall be guilty of perjury and be liable for and
    19  subject to all the penalties provided therefor.
    20     (d)  In every charter cyber school, the proper auditors,
    21  pursuant to subsection (a), shall audit the finances of the
    22  charter cyber school by beginning their duties on the first day
    23  of July of each year, and promptly, within thirty (30) days,
    24  audit the accounts of the charter cyber school for which they
    25  were appointed. On the completion of the audit, the auditors
    26  shall make correct copies thereof, which shall contain an
    27  itemized statement of all receipts, expenditures and credits,
    28  whatsoever, of charter cyber school officials, and the assets
    29  and liabilities of the charter cyber school. One copy shall be
    30  filed with the board of trustees of the charter cyber school,
    20070H0446B2951                 - 63 -     

     1  one copy in the court of common pleas of the county in which the
     2  charter cyber school is located, one copy with the board of
     3  directors of the intermediate unit in which the charter cyber
     4  school is located, one copy with the school board of directors
     5  of the school district in which the charter cyber school is
     6  located, and one copy with the Department of Education. The copy
     7  shall be sent by registered mail with return receipt requested
     8  to the Secretary of Education.
     9     (e)  The charter cyber school, upon receipt of a copy of the
    10  audit, shall make the audit available for public inspection on
    11  the charter cyber school's publicly accessible Internet website.
    12     (f)  The Secretary of Education may investigate the financial
    13  records of any charter cyber school in person or by his
    14  authorized representative.
    15     (g)  Charter cyber schools shall also be subject to sections
    16  2451, 2452, 2453, 2454 and 2455.
    17     Section 7.  Section 2591.1(c.1) of the act, added July 4,
    18  2004 (P.L.536, No.70), is amended and the section is amended by
    19  adding a subsection to read:
    20     Section 2591.1.  Commonwealth Reimbursements for Charter
    21  Schools and Cyber Charter Schools.--* * *
    22     (c.1)  For the 2003-2004 school year [and each school year
    23  thereafter] through the 2006-2007 school year, the Commonwealth
    24  shall pay to each school district with resident students
    25  enrolled during the immediately preceding school year in a
    26  charter school, a charter school approved under section 1717-A
    27  or 1718-A which provides instruction through the Internet or
    28  other electronic means or a cyber charter school as defined
    29  under Article XVII-A, an amount equal to thirty percent (30%) of
    30  the total funding required under section 1725-A(a).
    20070H0446B2951                 - 64 -     

     1     (c.2)  For the 2007-2008 school year and each school year
     2  thereafter, the Commonwealth shall pay to each school district
     3  with resident students enrolled during the immediately preceding
     4  school year in a charter school, an amount equal to thirty
     5  percent (30%) of the total funding required under section 1725-
     6  A(a).
     7     * * *
     8     Section 8.  This act shall apply to the 2007-2008 school year
     9  and thereafter.
    10     Section 9.  This act shall take effect immediately.
    11     SECTION 1.  SECTION 1703-A OF THE ACT OF MARCH 10, 1949        <--
    12  (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, IS
    13  AMENDED BY ADDING DEFINITIONS TO READ:
    14     SECTION 1703-A.  DEFINITIONS.--AS USED IN THIS ARTICLE,
    15     * * *
    16     "CYBER CHARTER SCHOOL FUND BALANCE LIMIT" SHALL MEAN THE
    17  AMOUNT DETERMINED UNDER SECTION 1725-A.
    18     "CYBER EDUCATION REAL COST LEVEL" SHALL MEAN THE AMOUNT
    19  ESTABLISHED BY THE DEPARTMENT UNDER SECTION 1725-A.
    20     "CYBER SPECIAL EDUCATION REAL COST LEVEL" SHALL MEAN THE
    21  AMOUNT ESTABLISHED BY THE DEPARTMENT UNDER SECTION 1725-A.
    22     * * *
    23     "EMPLOYMENT COST INDEX" SHALL HAVE THE SAME MEANING AS GIVEN
    24  TO IT IN SECTION 302 OF THE ACT OF JUNE 27, 2006 (1ST SP.SESS.,
    25  P.L.1873, NO.1), KNOWN AS THE TAXPAYER RELIEF ACT.
    26     * * *
    27     "STATEWIDE AVERAGE WEEKLY WAGE" SHALL HAVE THE SAME MEANING
    28  AS GIVEN TO IT IN SECTION 302 OF THE ACT OF JUNE 27, 2006 (1ST
    29  SP.SESS., P.L.1873, NO.1), KNOWN AS THE TAXPAYER RELIEF ACT.
    30     SECTION 2.  SECTION 1724-A(G) AND (I) OF THE ACT, ADDED JUNE
    20070H0446B2951                 - 65 -     

     1  19, 1997 (P.L.225, NO.22), ARE AMENDED TO READ:
     2     SECTION 1724-A.  SCHOOL STAFF.--* * *
     3     (G)  [PROFESSIONAL] EXCEPT AS PROVIDED UNDER SECTION 1743-
     4  A(K), PROFESSIONAL EMPLOYES WHO HOLD A FIRST LEVEL TEACHING OR
     5  ADMINISTRATIVE CERTIFICATE MAY, AT THEIR OPTION, HAVE THE TIME
     6  COMPLETED IN SATISFACTORY SERVICE IN A CHARTER SCHOOL APPLIED TO
     7  THE LENGTH OF SERVICE REQUIREMENTS FOR THE NEXT LEVEL OF
     8  CERTIFICATION.
     9     * * *
    10     (I)  ALL INDIVIDUALS WHO SHALL HAVE DIRECT CONTACT WITH
    11  STUDENTS OR CONTACT THROUGH ELECTRONIC MEANS VIA THE INTERNET OR
    12  E-MAIL WITH STUDENTS SHALL BE REQUIRED TO SUBMIT A REPORT OF
    13  CRIMINAL HISTORY RECORD INFORMATION AS PROVIDED FOR IN SECTION
    14  111 PRIOR TO ACCEPTING A POSITION WITH THE CHARTER SCHOOL. THIS
    15  SUBSECTION SHALL ALSO APPLY TO ANY INDIVIDUAL WHO VOLUNTEERS TO
    16  WORK ON A FULL-TIME OR PART-TIME BASIS AT THE CHARTER SCHOOL.
    17     * * *
    18     SECTION 3.  SECTION 1725-A(A) OF THE ACT, AMENDED JUNE 29,
    19  2002 (P.L.524, NO.88), IS AMENDED TO READ:
    20     SECTION 1725-A.  FUNDING FOR CHARTER SCHOOLS.--(A)  FUNDING
    21  FOR A CHARTER SCHOOL SHALL BE PROVIDED IN THE FOLLOWING MANNER:
    22     (1)  THERE SHALL BE NO TUITION CHARGE FOR A RESIDENT OR
    23  NONRESIDENT STUDENT ATTENDING A CHARTER SCHOOL.
    24     (1.1)  FOR THE 2008-2009 SCHOOL YEAR AND EACH SCHOOL YEAR
    25  THEREAFTER, THE DEPARTMENT SHALL ESTABLISH A CYBER EDUCATION
    26  REAL COST LEVEL AND A CYBER SPECIAL EDUCATION REAL COST LEVEL AS
    27  FOLLOWS:
    28     (I)  THE DEPARTMENT SHALL ESTABLISH THE CYBER EDUCATION REAL
    29  COST LEVEL FOR THE 2008-2009 SCHOOL YEAR BY DETERMINING THE
    30  LOWEST 2006-2007 TOTAL EXPENDITURES PER AVERAGE DAILY
    20070H0446B2951                 - 66 -     

     1  MEMBERSHIP, AFTER HAVING SUBTRACTED ALL EXPENDITURES FOR SPECIAL
     2  EDUCATION, OF ALL CYBER CHARTER SCHOOLS THAT ACHIEVED ADEQUATE
     3  YEARLY PROGRESS IN THE 2006-2007 SCHOOL YEAR. THE AMOUNT SHALL
     4  BE CERTIFIED BY THE DEPARTMENT AND ADJUSTED ANNUALLY BY THE
     5  PERCENTAGE INCREASE IN THE AVERAGE OF THE STATEWIDE AVERAGE
     6  WEEKLY WAGE AND THE EMPLOYMENT COST INDEX.
     7     (II)  THE DEPARTMENT SHALL ESTABLISH THE CYBER SPECIAL
     8  EDUCATION REAL COST LEVEL FOR THE 2008-2009 SCHOOL YEAR BY
     9  CALCULATING THE SUM OF THE AMOUNT DETERMINED UNDER SUBPARAGRAPH
    10  (I) AND THE LOWEST 2006-2007 EXPENDITURES FOR SPECIAL EDUCATION
    11  PER SPECIAL EDUCATION STUDENT OF ALL CYBER CHARTER SCHOOLS THAT
    12  ACHIEVED ADEQUATE YEARLY PROGRESS IN THE 2006-2007 SCHOOL YEAR.
    13  THE AMOUNT SHALL BE CERTIFIED BY THE DEPARTMENT AND ADJUSTED
    14  ANNUALLY BY THE PERCENTAGE INCREASE IN THE AVERAGE OF THE
    15  STATEWIDE AVERAGE WEEKLY WAGE AND THE EMPLOYMENT COST INDEX.
    16     (2)  (I)  FOR NON-SPECIAL EDUCATION STUDENTS ENROLLED IN A
    17  CHARTER SCHOOL THAT IS NOT A CYBER CHARTER SCHOOL, THE CHARTER
    18  SCHOOL SHALL RECEIVE FOR EACH STUDENT ENROLLED NO LESS THAN THE
    19  BUDGETED TOTAL EXPENDITURE PER AVERAGE DAILY MEMBERSHIP OF THE
    20  PRIOR SCHOOL YEAR, AS DEFINED IN SECTION 2501(20), MINUS THE
    21  BUDGETED EXPENDITURES OF THE DISTRICT OF RESIDENCE FOR NONPUBLIC
    22  SCHOOL PROGRAMS; ADULT EDUCATION PROGRAMS; COMMUNITY/JUNIOR
    23  COLLEGE PROGRAMS; STUDENT TRANSPORTATION SERVICES; FOR SPECIAL
    24  EDUCATION PROGRAMS; FACILITIES ACQUISITION, CONSTRUCTION AND
    25  IMPROVEMENT SERVICES; AND OTHER FINANCING USES, INCLUDING DEBT
    26  SERVICE AND FUND TRANSFERS AS PROVIDED IN THE MANUAL OF
    27  ACCOUNTING AND RELATED FINANCIAL PROCEDURES FOR PENNSYLVANIA
    28  SCHOOL SYSTEMS ESTABLISHED BY THE DEPARTMENT. THIS AMOUNT SHALL
    29  BE PAID BY THE DISTRICT OF RESIDENCE OF EACH STUDENT.
    30     (II)  (A)  IN THE 2008-2009 SCHOOL YEAR AND EACH SCHOOL YEAR
    20070H0446B2951                 - 67 -     

     1  THEREAFTER, FOR NON-SPECIAL EDUCATION STUDENTS ENROLLED IN A
     2  CYBER CHARTER SCHOOL, THE CYBER CHARTER SCHOOL SHALL RECEIVE FOR
     3  EACH STUDENT ENROLLED THE LESSER OF:
     4     (I)  AN AMOUNT EQUAL TO THE CYBER EDUCATION REAL COST LEVEL.
     5     (II)  THE AMOUNT DETERMINED UNDER SUBPARAGRAPH (I).
     6     (B)  THE AMOUNT UNDER THIS SUBPARAGRAPH SHALL BE PAID BY THE
     7  DISTRICT OF RESIDENCE OF EACH STUDENT.
     8     (3)  (I)  FOR SPECIAL EDUCATION STUDENTS ENROLLED IN A
     9  CHARTER SCHOOL THAT IS NOT A CYBER CHARTER SCHOOL, THE CHARTER
    10  SCHOOL SHALL RECEIVE FOR EACH STUDENT ENROLLED THE SAME FUNDING
    11  AS FOR EACH NON-SPECIAL EDUCATION STUDENT AS PROVIDED IN CLAUSE
    12  (2), PLUS AN ADDITIONAL AMOUNT DETERMINED BY DIVIDING THE
    13  DISTRICT OF RESIDENCE'S TOTAL SPECIAL EDUCATION EXPENDITURE BY
    14  THE PRODUCT OF MULTIPLYING THE COMBINED PERCENTAGE OF SECTION
    15  2509.5(K) TIMES THE DISTRICT OF RESIDENCE'S TOTAL AVERAGE DAILY
    16  MEMBERSHIP FOR THE PRIOR SCHOOL YEAR. THIS AMOUNT SHALL BE PAID
    17  BY THE DISTRICT OF RESIDENCE OF EACH STUDENT.
    18     (II)  (A)  IN THE 2008-2009 SCHOOL YEAR AND EACH SCHOOL YEAR
    19  THEREAFTER, FOR SPECIAL EDUCATION STUDENTS ENROLLED IN A CYBER
    20  CHARTER SCHOOL, THE CYBER CHARTER SCHOOL SHALL RECEIVE FOR EACH
    21  STUDENT ENROLLED THE LESSER OF:
    22     (I)  AN AMOUNT EQUAL TO THE COST OF THE CYBER SPECIAL
    23  EDUCATION REAL COST LEVEL.
    24     (II)  THE AMOUNT DETERMINED UNDER SUBPARAGRAPH (I).
    25     (B)  THE AMOUNT UNDER THIS SUBPARAGRAPH SHALL BE PAID BY THE
    26  DISTRICT OF RESIDENCE OF EACH STUDENT.
    27     (4)  A CHARTER SCHOOL MAY REQUEST THE INTERMEDIATE UNIT IN
    28  WHICH THE CHARTER SCHOOL IS LOCATED TO PROVIDE SERVICES TO
    29  ASSIST THE CHARTER SCHOOL TO ADDRESS THE SPECIFIC NEEDS OF
    30  EXCEPTIONAL STUDENTS. THE INTERMEDIATE UNIT SHALL ASSIST THE
    20070H0446B2951                 - 68 -     

     1  CHARTER SCHOOL AND BILL THE CHARTER SCHOOL FOR THE SERVICES. THE
     2  INTERMEDIATE UNIT MAY NOT CHARGE THE CHARTER SCHOOL MORE FOR ANY
     3  SERVICE THAN IT CHARGES THE CONSTITUENT DISTRICTS OF THE
     4  INTERMEDIATE UNIT.
     5     (5)  PAYMENTS SHALL BE MADE TO THE CHARTER SCHOOL IN TWELVE
     6  (12) EQUAL MONTHLY PAYMENTS, BY THE FIFTH DAY OF EACH MONTH,
     7  WITHIN THE OPERATING SCHOOL YEAR. A STUDENT ENROLLED IN A
     8  CHARTER SCHOOL SHALL BE INCLUDED IN THE AVERAGE DAILY MEMBERSHIP
     9  OF THE STUDENT'S DISTRICT OF RESIDENCE FOR THE PURPOSE OF
    10  PROVIDING BASIC EDUCATION FUNDING PAYMENTS AND SPECIAL EDUCATION
    11  FUNDING PURSUANT TO ARTICLE XXV. IF A SCHOOL DISTRICT FAILS TO
    12  MAKE A PAYMENT TO A CHARTER SCHOOL AS PRESCRIBED IN THIS CLAUSE,
    13  THE SECRETARY SHALL DEDUCT THE ESTIMATED AMOUNT, AS DOCUMENTED
    14  BY THE CHARTER SCHOOL, FROM ANY AND ALL STATE PAYMENTS MADE TO
    15  THE DISTRICT AFTER RECEIPT OF DOCUMENTATION FROM THE CHARTER
    16  SCHOOL. IN THE CASE OF PAYMENT OWED TO A CYBER CHARTER SCHOOL, A
    17  PENALTY OF THREE PER CENTUM SHALL BE ADDED TO THE AMOUNT AND
    18  FORWARDED TO THE CYBER CHARTER SCHOOL.
    19     (6)  WITHIN THIRTY (30) DAYS AFTER THE SECRETARY MAKES THE
    20  DEDUCTION DESCRIBED IN CLAUSE (5), A SCHOOL DISTRICT MAY NOTIFY
    21  THE SECRETARY THAT THE DEDUCTION MADE FROM STATE PAYMENTS TO THE
    22  DISTRICT UNDER THIS SUBSECTION IS INACCURATE. THE SECRETARY
    23  SHALL PROVIDE THE SCHOOL DISTRICT WITH AN OPPORTUNITY TO BE
    24  HEARD CONCERNING WHETHER THE CHARTER SCHOOL DOCUMENTED THAT ITS
    25  STUDENTS WERE ENROLLED IN THE CHARTER SCHOOL, THE PERIOD OF TIME
    26  DURING WHICH EACH STUDENT WAS ENROLLED, THE SCHOOL DISTRICT OF
    27  RESIDENCE OF EACH STUDENT AND WHETHER THE AMOUNTS DEDUCTED FROM
    28  THE SCHOOL DISTRICT WERE ACCURATE. THE SECRETARY SHALL RESCIND
    29  ANY PENALTY PAID TO A CYBER CHARTER SCHOOL UNDER CLAUSE (5) ON
    30  BEHALF OF A STUDENT FOR WHOM BILLING WAS INACCURATE AS
    20070H0446B2951                 - 69 -     

     1  DETERMINED UNDER THIS CLAUSE.
     2     (7)  (I)  FOR THE 2008-2009 SCHOOL YEAR AND EACH SCHOOL YEAR
     3  THEREAFTER, NO CYBER CHARTER SCHOOL SHALL ACCUMULATE AN
     4  UNRESERVED, UNDESIGNATED FUND BALANCE GREATER THAN THE CYBER
     5  CHARTER FUND BALANCE LIMIT, WHICH SHALL BE DETERMINED AS
     6  FOLLOWS:
     7          CYBER CHARTER SCHOOL TOTAL        MAXIMUM UNRESERVED,
     8          BUDGETED EXPENDITURES             UNDESIGNATED FUND
     9                                            BALANCE AS PERCENTAGE
    10                                            OF TOTAL BUDGETED
    11                                            EXPENDITURES
    12     LESS THAN OR EQUAL TO $11,999,999               12%
    13     BETWEEN $12,000,000 AND $12,999,999             11.5%
    14     BETWEEN $13,000,000 AND $13,999,999             11%
    15     BETWEEN $14,000,000 AND $14,999,999             10.5%
    16     BETWEEN $15,000,000 AND $15,999,999             10%
    17     BETWEEN $16,000,000 AND $16,999,999             9.5%
    18     BETWEEN $17,000,000 AND $17,999,999             9%
    19     BETWEEN $18,000,000 AND $18,999,999             8.5%
    20     GREATER THAN OR EQUAL TO $19,000,000            8%
    21     (II)  ANY UNRESERVED, UNDESIGNATED FUND BALANCE IN PLACE ON
    22  JUNE 30, 2008, THAT EXCEEDS THE CYBER CHARTER FUND BALANCE LIMIT
    23  SHALL BE DISTRIBUTED BY THE CYBER CHARTER SCHOOL AS FOLLOWS:
    24     (A)  THE CYBER CHARTER SCHOOL MAY EXPEND UP TO FORTY PER
    25  CENTUM OF THE FUND BALANCE IN EXCESS OF THE LIMIT, BUT NO MORE
    26  THAN $1,000,000, ON PROFESSIONAL DEVELOPMENT, STUDENT SUPPLIES,
    27  TECHNOLOGY, INSTRUCTIONAL ACTIVITIES DIRECTLY AFFECTING STUDENT
    28  PERFORMANCE, TO PROVIDE A DISCOUNT TO THE CYBER EDUCATION REAL
    29  COST LEVEL AND CYBER SPECIAL EDUCATION REAL COST LEVEL TO ALL
    30  SCHOOL DISTRICTS ON BEHALF OF ENROLLED STUDENTS OR OTHER
    20070H0446B2951                 - 70 -     

     1  ACTIVITIES AS APPROVED BY THE SECRETARY UPON APPLICATION BY THE
     2  CYBER CHARTER SCHOOL. THE FUNDS MAY NOT BE USED TO PAY BONUSES
     3  TO ANY EMPLOYE OR CONTRACTOR.
     4     (B)  THE REMAINDER SHALL BE REFUNDED ON A PRO RATA BASIS
     5  WITHIN NINETY (90) DAYS TO ALL SCHOOL DISTRICTS THAT PAID
     6  TUITION TO THE CYBER CHARTER SCHOOL ON BEHALF OF STUDENTS
     7  ENROLLED IN THE 2006-2007 AND 2007-2008 SCHOOL YEARS.
     8     (III)  FOR THE 2008-2009 SCHOOL YEAR AND EACH SCHOOL YEAR
     9  THEREAFTER, ANY UNRESERVED, UNDESIGNATED FUND BALANCE IN EXCESS
    10  OF THE CYBER CHARTER FUND BALANCE LIMIT SHALL BE REFUNDED ON A
    11  PRO RATA BASIS TO ALL SCHOOL DISTRICTS THAT PAID TUITION TO THE
    12  CYBER CHARTER SCHOOL IN THE PRIOR SCHOOL YEAR.
    13     (8)  EXCEPT IN THE CASE OF ANY STUDENT ENROLLED IN A CYBER
    14  CHARTER SCHOOL ON THE EFFECTIVE DATE OF THIS SECTION, A SCHOOL
    15  DISTRICT SHALL NOT BE REQUIRED TO PROVIDE PER PUPIL FUNDING TO
    16  CYBER CHARTER SCHOOLS FOR A STUDENT WHO DOES NOT MEET THE
    17  MINIMUM REQUIREMENT FOR THE AGE OF KINDERGARTEN OR BEGINNER
    18  ESTABLISHED BY THE BOARD OF SCHOOL DIRECTORS IN THE STUDENT'S
    19  SCHOOL DISTRICT OF RESIDENCE. THE TERM "BEGINNERS," AS USED IN
    20  THIS CLAUSE, SHALL MEAN ANY CHILD THAT SHOULD ENTER THE LOWEST
    21  GRADE OF THE PRIMARY SCHOOL OR THE LOWEST PRIMARY CLASS ABOVE
    22  THE KINDERGARTEN LEVEL.
    23     (9)  IF A STUDENT'S SCHOOL DISTRICT OF RESIDENCE DOES NOT
    24  OFFER FULL-DAY KINDERGARTEN, THE SCHOOL DISTRICT OF RESIDENCE
    25  SHALL ONLY BE REQUIRED TO PAY A CYBER CHARTER SCHOOL ONE-HALF OF
    26  THE AMOUNT CALCULATED UNDER CLAUSE (2)(II) OR (3)(II) FOR ANY
    27  STUDENT WHO IS ENROLLED IN KINDERGARTEN IN A CYBER CHARTER
    28  SCHOOL.
    29     * * *
    30     SECTION 4.  SECTION 1729-A(J) OF THE ACT, ADDED JUNE 19, 1997
    20070H0446B2951                 - 71 -     

     1  (P.L.225, NO.22), IS AMENDED TO READ:
     2     SECTION 1729-A.  CAUSES FOR NONRENEWAL OR TERMINATION.--* * *
     3     (J)  WHEN A CHARTER IS REVOKED OR IS NOT RENEWED, A STUDENT
     4  WHO ATTENDED THE CHARTER SCHOOL SHALL APPLY TO ANOTHER PUBLIC
     5  SCHOOL IN THE STUDENT'S SCHOOL DISTRICT OF RESIDENCE. NORMAL
     6  APPLICATION DEADLINES WILL BE DISREGARDED UNDER THESE
     7  CIRCUMSTANCES. ALL STUDENT RECORDS MAINTAINED BY THE CHARTER
     8  SCHOOL SHALL BE FORWARDED TO THE STUDENT'S DISTRICT OF RESIDENCE
     9  WITHIN TEN (10) DAYS OF THE REVOCATION OR NONRENEWAL OF THE
    10  CHARTER.
    11     SECTION 5.  SECTION 1741-A(A) OF THE ACT IS AMENDED BY ADDING
    12  A CLAUSE TO READ:
    13  SECTION 1741-A.  POWERS AND DUTIES OF DEPARTMENT.
    14     (A)  POWERS AND DUTIES.--THE DEPARTMENT SHALL:
    15     * * *
    16     (6)  PROMULGATE REGULATIONS IN ACCORDANCE WITH THE ACT OF
    17  JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE "REGULATORY REVIEW
    18  ACT," THAT PROVIDE ALL OF THE FOLLOWING WITH REGARD TO CYBER
    19  CHARTER SCHOOLS:
    20     (I)  THE MINIMUM NUMBER OF HOURS THAT STUDENTS MUST BE ONLINE
    21  AND OFFLINE ENGAGED IN EDUCATIONAL ACTIVITIES IN ORDER TO MEET
    22  THE ATTENDANCE REQUIREMENTS OF 22 PA. CODE CH. 11 (RELATING TO
    23  STUDENT ATTENDANCE).
    24     (II)  THE REQUIREMENTS THAT EACH CYBER CHARTER SCHOOL MUST
    25  MEET TO BE ABLE TO DEMONSTRATE IN ITS ANNUAL REPORT TO THE
    26  DEPARTMENT DUE BY AUGUST 1 OF EACH YEAR UNDER SECTION 1743-A(F)
    27  THAT THE MINIMUM NUMBER OF ONLINE AND OFFLINE HOURS HAVE BEEN
    28  ATTAINED BY EACH STUDENT.
    29     * * *
    30     SECTION 6.  SECTION 1742-A OF THE ACT, ADDED JUNE 29, 2002
    20070H0446B2951                 - 72 -     

     1  (P.L.524, NO.88), IS AMENDED TO READ:
     2  SECTION 1742-A.  ASSESSMENT AND EVALUATION.
     3     THE DEPARTMENT SHALL:
     4         (1)  [ANNUALLY] NO LATER THAN OCTOBER 1 OF EACH YEAR,
     5     ASSESS WHETHER EACH CYBER CHARTER SCHOOL IS MEETING THE GOALS
     6     OF ITS CHARTER AND IS IN COMPLIANCE WITH THE PROVISIONS OF
     7     THE CHARTER AND CONDUCT A COMPREHENSIVE REVIEW PRIOR TO
     8     GRANTING A FIVE-YEAR RENEWAL OF THE CHARTER. THE DEPARTMENT
     9     SHALL PROVIDE EACH CYBER CHARTER SCHOOL WITH THE RESULTS OF
    10     THAT SCHOOL'S ANNUAL ASSESSMENT IN THE FORM OF A WRITTEN
    11     REPORT TO BE SUBMITTED BOTH THROUGH UNITED STATES MAIL AND
    12     ELECTRONICALLY BY NO LATER THAN NOVEMBER 1 OF EACH YEAR. THE
    13     REPORT SHALL BE POSTED ON THE DEPARTMENT'S INTERNET WEBSITE
    14     FOR NO LESS THAN A FIVE-YEAR PERIOD OR UNTIL THE EXPIRATION
    15     OF THE CYBER CHARTER SCHOOL'S CURRENT CHARTER, WHICHEVER
    16     OCCURS FIRST.
    17         (2)  ANNUALLY REVIEW EACH CYBER CHARTER SCHOOL'S
    18     PERFORMANCE ON THE PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT
    19     TEST, STANDARDIZED TESTS AND OTHER PERFORMANCE INDICATORS TO
    20     ENSURE COMPLIANCE WITH 22 PA. CODE CH. 4 (RELATING TO
    21     ACADEMIC STANDARDS AND ASSESSMENT) OR SUBSEQUENT REGULATIONS
    22     PROMULGATED TO REPLACE 22 PA. CODE CH. 4.
    23         (3)  HAVE ONGOING ACCESS TO ALL RECORDS, INSTRUCTIONAL
    24     MATERIALS AND STUDENT AND STAFF RECORDS OF EACH CYBER CHARTER
    25     SCHOOL AND TO EVERY CYBER CHARTER SCHOOL FACILITY TO ENSURE
    26     THE CYBER CHARTER SCHOOL IS IN COMPLIANCE WITH ITS CHARTER
    27     AND THIS SUBDIVISION.
    28     SECTION 7.  SECTION 1743-A(B), (C) AND (E) OF THE ACT, ADDED
    29  JUNE 29, 2002 (P.L.524, NO.88), ARE AMENDED AND THE SECTION IS
    30  AMENDED BY ADDING SUBSECTIONS TO READ:
    20070H0446B2951                 - 73 -     

     1  SECTION 1743-A.  CYBER CHARTER SCHOOL REQUIREMENTS AND
     2                     PROHIBITIONS.
     3     * * *
     4     (B)  ENROLLMENT.--A CYBER CHARTER SCHOOL SHALL [REPORT TO THE
     5  DEPARTMENT AN INCREASE OR A DECREASE OF 30% OR MORE IN ITS
     6  ANTICIPATED ENROLLMENT] REQUEST APPROVAL FROM THE DEPARTMENT IN
     7  ORDER TO INCREASE ITS ENROLLMENT BEYOND THAT SET FORTH IN THE
     8  APPLICATION UNDER SECTION 1747-A(11).
     9     (C)  [SCHOOL DISTRICT.--A CYBER CHARTER SCHOOL] DEPARTMENT.--
    10  THE DEPARTMENT SHALL MAKE AVAILABLE UPON REQUEST, EITHER IN
    11  WRITING OR ELECTRONICALLY, [TO EACH STUDENT'S SCHOOL DISTRICT OF
    12  RESIDENCE] THE FOLLOWING:
    13         (1)  A COPY OF THE CHARTER.
    14         (2)  A COPY OF THE CYBER CHARTER SCHOOL APPLICATION.
    15         (3)  A COPY OF ALL ANNUAL REPORTS PREPARED BY THE CYBER
    16     CHARTER SCHOOL.
    17         [(4)  A LIST OF ALL STUDENTS FROM THAT SCHOOL DISTRICT
    18     ENROLLED IN THE CYBER CHARTER SCHOOL.]
    19     (C.1)  SCHOOL DISTRICT.--A CYBER CHARTER SCHOOL SHALL MAKE
    20  AVAILABLE UPON REQUEST, EITHER IN WRITING OR ELECTRONICALLY, TO
    21  EACH STUDENT'S SCHOOL DISTRICT OF RESIDENCE A LIST OF ALL
    22  STUDENTS FROM THAT SCHOOL DISTRICT ENROLLED IN THE CYBER CHARTER
    23  SCHOOL.
    24     * * *
    25     (E)  STUDENTS.--FOR EACH STUDENT ENROLLED, A CYBER CHARTER
    26  SCHOOL SHALL:
    27         (1)  PROVIDE ALL INSTRUCTIONAL MATERIALS;
    28         (2)  PROVIDE ALL EQUIPMENT, INCLUDING, BUT NOT LIMITED
    29     TO, A COMPUTER, COMPUTER MONITOR AND PRINTER; AND
    30         (3)  PROVIDE OR REIMBURSE FOR ALL TECHNOLOGY AND SERVICES
    20070H0446B2951                 - 74 -     

     1     NECESSARY FOR THE ON-LINE DELIVERY OF THE CURRICULUM AND
     2     INSTRUCTION.
     3  THE COMMONWEALTH SHALL NOT BE LIABLE FOR ANY REIMBURSEMENT OWED
     4  TO STUDENTS, PARENTS OR GUARDIANS BY A CYBER CHARTER SCHOOL
     5  UNDER PARAGRAPH (3). ALL COMPUTERS, SOFTWARE AND INTERNET
     6  CONNECTIONS PURCHASED BY THE CYBER CHARTER SCHOOL SHALL BE THE
     7  PROPERTY OF THE CYBER CHARTER SCHOOL. IF A STUDENT DISCONTINUES
     8  ENROLLMENT IN A CYBER CHARTER SCHOOL, THE STUDENT MUST RETURN
     9  THE SCHOOL'S PROPERTY IN USABLE CONDITION OR PAY A CIVIL PENALTY
    10  IN THE FORM OF FAIR MARKET VALUE FOR THE PROPERTY.
    11     * * *
    12     (J)  BOARD OF TRUSTEES.--A MEMBER OF THE BOARD OF TRUSTEES
    13  SHALL BE CONSIDERED A PUBLIC OFFICIAL UNDER THE ACT OF OCTOBER
    14  4, 1978 (P.L.883, NO.170), REFERRED TO AS THE PUBLIC OFFICIAL
    15  AND EMPLOYEE ETHICS LAW. NO MEMBER OF THE BOARD OF TRUSTEES MAY
    16  DO BUSINESS WITH THE SCHOOL OR THE MANAGEMENT OF THE SCHOOL NOR
    17  MAY A PERSON AFFILIATED WITH THE MANAGEMENT OF THE SCHOOL SIT ON
    18  THE BOARD OF TRUSTEES.
    19     (K)  EMPLOYES.--PROFESSIONAL EMPLOYES WHO HOLD A FIRST LEVEL
    20  TEACHING OR ADMINISTRATIVE CERTIFICATE MAY PETITION THE
    21  DEPARTMENT TO HAVE THE TIME COMPLETED IN SATISFACTORY SERVICE IN
    22  A CYBER CHARTER SCHOOL APPLIED TO THE LENGTH OF SERVICE
    23  REQUIREMENTS FOR THE NEXT LEVEL OF CERTIFICATION. THE DEPARTMENT
    24  SHALL ESTABLISH GUIDELINES GOVERNING ACCEPTABLE CRITERIA FOR
    25  APPROVAL OF A PETITION UNDER THIS SUBSECTION.
    26     (L)  OUT-OF-STATE STUDENTS.--A CYBER CHARTER SCHOOL MAY NOT
    27  EXPEND ANY FUNDS, INCLUDING FUNDS PROVIDED BY THE COMMONWEALTH
    28  OR BY A SCHOOL DISTRICT, ON THE EDUCATION OF ANY STUDENT WHO IS
    29  NOT A RESIDENT OF A PENNSYLVANIA SCHOOL DISTRICT.
    30     SECTION 8.  SECTIONS 1744-A AND 1747-A(11) OF THE ACT, ADDED
    20070H0446B2951                 - 75 -     

     1  JUNE 29, 2002 (P.L.524, NO.88), ARE AMENDED TO READ:
     2  SECTION 1744-A.  SCHOOL DISTRICT AND INTERMEDIATE UNIT
     3                     RESPONSIBILITIES.
     4     AN INTERMEDIATE UNIT OR A SCHOOL DISTRICT IN WHICH A STUDENT
     5  ENROLLED IN A CYBER CHARTER SCHOOL RESIDES SHALL DO ALL OF THE
     6  FOLLOWING:
     7         (1)  PROVIDE THE CYBER CHARTER SCHOOL WITHIN TEN DAYS OF
     8     RECEIPT OF THE NOTICE OF THE ADMISSION OF THE STUDENT UNDER
     9     SECTION 1748-A(A) WITH ALL RECORDS RELATING TO THE STUDENT,
    10     INCLUDING TRANSCRIPTS, TEST SCORES AND A COPY OF ANY
    11     INDIVIDUALIZED EDUCATION PROGRAM FOR THAT STUDENT.
    12         (2)  PROVIDE THE CYBER CHARTER SCHOOL WITH REASONABLE
    13     ACCESS TO ITS FACILITIES FOR THE ADMINISTRATION OF
    14     STANDARDIZED TESTS REQUIRED UNDER THIS SUBDIVISION.
    15         (3)  UPON REQUEST AND SUBJECT TO AGREEMENT BETWEEN A
    16     CYBER CHARTER SCHOOL AND AN INTERMEDIATE UNIT OR SCHOOL
    17     DISTRICT, PROVIDE ASSISTANCE TO THE CYBER CHARTER SCHOOL IN
    18     THE DELIVERY OF SERVICES TO A STUDENT WITH DISABILITIES. THE
    19     SCHOOL DISTRICT OR INTERMEDIATE UNIT SHALL NOT CHARGE THE
    20     CYBER CHARTER SCHOOL MORE FOR A SERVICE THAN IT CHARGES A
    21     SCHOOL DISTRICT.
    22         (4)  MAKE PAYMENTS TO THE CYBER CHARTER SCHOOL UNDER
    23     SECTION 1725-A.
    24  SECTION 1747-A.  CYBER CHARTER SCHOOL APPLICATION.
    25     IN ADDITION TO THE PROVISIONS OF SECTION 1719-A, AN
    26  APPLICATION TO ESTABLISH A CYBER CHARTER SCHOOL SHALL ALSO
    27  INCLUDE THE FOLLOWING:
    28         * * *
    29         (11)  THE MAXIMUM LEVEL OF [ANTICIPATED] ENROLLMENT
    30     DURING EACH SCHOOL YEAR OF THE PROPOSED CHARTER, INCLUDING
    20070H0446B2951                 - 76 -     

     1     EXPECTED INCREASES DUE TO THE ADDITION OF GRADE LEVELS.
     2         * * *
     3     SECTION 9.  SECTION 1748-A(A) OF THE ACT, ADDED JUNE 29, 2002
     4  (P.L.524, NO.88), IS AMENDED AND THE SECTION IS AMENDED BY
     5  ADDING A SUBSECTION TO READ:
     6  SECTION 1748-A.  ENROLLMENT AND NOTIFICATION.
     7     (A)  NOTICE TO SCHOOL DISTRICT.--
     8         (1)  WITHIN [15] TEN DAYS OF THE ENROLLMENT OF A STUDENT
     9     TO A CYBER CHARTER SCHOOL, THE PARENT OR GUARDIAN AND THE
    10     CYBER CHARTER SCHOOL SHALL NOTIFY THE STUDENT'S SCHOOL
    11     DISTRICT OF RESIDENCE OF THE ENROLLMENT THROUGH THE USE OF
    12     THE NOTIFICATION FORM UNDER SUBSECTION (B).
    13         (2)  IF A SCHOOL DISTRICT WHICH HAS RECEIVED NOTICE UNDER
    14     PARAGRAPH (1) DETERMINES THAT A STUDENT IS NOT A RESIDENT OF
    15     THE SCHOOL DISTRICT, THE FOLLOWING APPLY:
    16             (I)  WITHIN [SEVEN] 20 DAYS OF RECEIPT OF THE NOTICE
    17         UNDER PARAGRAPH (1), THE SCHOOL DISTRICT SHALL NOTIFY THE
    18         CYBER CHARTER SCHOOL AND THE DEPARTMENT THAT THE STUDENT
    19         IS NOT A RESIDENT OF THE SCHOOL DISTRICT. NOTIFICATION OF
    20         NONRESIDENCE SHALL INCLUDE THE BASIS FOR THE
    21         DETERMINATION.
    22             (II)  WITHIN SEVEN DAYS OF NOTIFICATION UNDER
    23         SUBPARAGRAPH (I), THE CYBER CHARTER SCHOOL SHALL REVIEW
    24         THE NOTIFICATION OF NONRESIDENCE, RESPOND TO THE SCHOOL
    25         DISTRICT AND PROVIDE A COPY OF THE RESPONSE TO THE
    26         DEPARTMENT. IF THE CYBER CHARTER SCHOOL AGREES THAT A
    27         STUDENT IS NOT A RESIDENT OF THE SCHOOL DISTRICT, IT
    28         SHALL DETERMINE THE PROPER DISTRICT OF RESIDENCE OF THE
    29         STUDENT BEFORE REQUESTING FUNDS FROM ANOTHER SCHOOL
    30         DISTRICT.
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     1             (III)  WITHIN SEVEN DAYS OF RECEIPT OF THE RESPONSE
     2         UNDER SUBPARAGRAPH (II), THE SCHOOL DISTRICT SHALL NOTIFY
     3         THE CYBER CHARTER SCHOOL THAT IT AGREES WITH THE CYBER
     4         CHARTER SCHOOL'S DETERMINATION OR DOES NOT AGREE WITH THE
     5         CYBER CHARTER SCHOOL'S DETERMINATION.
     6             (IV)  A SCHOOL DISTRICT THAT HAS NOTIFIED THE CYBER
     7         CHARTER SCHOOL THAT IT DOES NOT AGREE WITH THE CYBER
     8         CHARTER SCHOOL'S DETERMINATION UNDER SUBPARAGRAPH (III)
     9         SHALL APPEAL TO THE DEPARTMENT FOR A FINAL DETERMINATION.
    10             (V)  ALL DECISIONS OF THE DEPARTMENT REGARDING THE
    11         SCHOOL DISTRICT OF RESIDENCE OF A STUDENT SHALL BE
    12         SUBJECT TO REVIEW BY THE COMMONWEALTH COURT.
    13             (VI)  A SCHOOL DISTRICT SHALL CONTINUE TO MAKE
    14         PAYMENTS TO A CYBER CHARTER SCHOOL UNDER SECTION 1725-A
    15         DURING THE TIME IN WHICH THE SCHOOL DISTRICT OF RESIDENCE
    16         OF A STUDENT IS IN DISPUTE.
    17             (VII)  IF A FINAL DETERMINATION IS MADE THAT A
    18         STUDENT IS NOT A RESIDENT OF AN APPEALING SCHOOL
    19         DISTRICT, THE CYBER CHARTER SCHOOL SHALL RETURN ALL FUNDS
    20         PROVIDED ON BEHALF OF THAT STUDENT TO THE SCHOOL DISTRICT
    21         WITHIN 30 DAYS.
    22     * * *
    23     (D)  TRUANCY.--IF A SCHOOL DISTRICT RECEIVES A NOTIFICATION
    24  OF ENROLLMENT FORM, AS REQUIRED UNDER PARAGRAPH (A)(1), THAT A
    25  RESIDENT STUDENT WHO IS A TRUANT FROM THE SCHOOL DISTRICT
    26  SCHOOLS HAS ENROLLED IN A CYBER CHARTER SCHOOL, THE SCHOOL
    27  DISTRICT SHALL NOTIFY THE CYBER CHARTER SCHOOL IN WRITING ABOUT
    28  THE STUDENT'S TRUANCY. THE FOLLOWING SHALL APPLY:
    29         (1)  UPON RECEIPT OF NOTICE BY THE RESIDENT SCHOOL
    30     DISTRICT OF A STUDENT'S TRUANCY AT THE SCHOOL DISTRICT
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     1     SCHOOLS, THE CYBER CHARTER SCHOOL SHALL PROVIDE TO THE
     2     STUDENT'S RESIDENT SCHOOL DISTRICT EVIDENCE DURING THE FIRST
     3     THREE MONTHS THAT THE STUDENT IS ENROLLED IN THE CYBER
     4     CHARTER SCHOOL, THAT THE STUDENT IS RECEIVING EDUCATIONAL
     5     INSTRUCTION AND COMPLETING ASSIGNMENTS AS REQUIRED BY THE
     6     CYBER CHARTER SCHOOL. THE EVIDENCE SHALL BE PROVIDED BY THE
     7     CYBER CHARTER SCHOOL WHEN IT BILLS THE SCHOOL DISTRICT FOR
     8     PAYMENT DURING THE FIRST THREE MONTHS OF THE STUDENT'S
     9     ENROLLMENT.
    10         (2)  IF THE CYBER CHARTER SCHOOL FAILS TO COMPLY WITH THE
    11     REQUIREMENTS OF PARAGRAPH (1), THE STUDENT'S RESIDENT SCHOOL
    12     DISTRICT SHALL NOT BE REQUIRED TO PAY THE CYBER CHARTER
    13     SCHOOL FOR THAT STUDENT DURING THAT TIME.
    14         (3)  IF ANY STUDENT ENROLLED IN THE CYBER CHARTER SCHOOL
    15     ACCRUES THREE OR MORE DAYS OF UNLAWFUL ABSENCES, THE CYBER
    16     CHARTER SCHOOL HAS THE AUTHORITY TO AND SHALL BE RESPONSIBLE
    17     FOR INSTITUTING TRUANCY PROCEEDINGS UNDER SECTION 1333.
    18     SECTION 10.  SECTION 1749-A(A) OF THE ACT, ADDED JUNE 29,
    19  2002 (P.L.524, NO.88), IS AMENDED TO READ:
    20  SECTION 1749-A.  APPLICABILITY OF OTHER PROVISIONS OF THIS ACT
    21                     AND OF OTHER ACTS AND REGULATIONS.
    22     (A)  GENERAL REQUIREMENTS.--CYBER CHARTER SCHOOLS SHALL BE
    23  SUBJECT TO THE FOLLOWING:
    24         (1)  SECTIONS 108, 110, 111, 321, 325, 326, 327, 431,
    25     436, 443, 510, 518, 527, 609, 687(A), (B), (C), (D), (H) AND
    26     (J), 708, 752, 753, [755,] 771, 776, 777, 807.1, 808, 809,
    27     810, 1109, 1111, 1112(A), 1205.1, 1205.2, 1301, 1302, 1310,
    28     1317.2, 1318, 1330, 1332, 1333, 1354, 1355, 1303-A, 1518,
    29     1521, 1523, 1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-
    30     A, 1719-A, 1721-A, 1722-A, 1723-A(A) AND (B), 1724-A, 1725-A,
    20070H0446B2951                 - 79 -     

     1     1727-A, 1729-A, 1730-A, 1731-A(A)(1) AND (B) AND 2014-A AND
     2     ARTICLES XII-A, XIII-A AND XIV.
     3         (2)  THE ACT OF JULY 17, 1961 (P.L.776, NO.341), KNOWN AS
     4     THE PENNSYLVANIA FAIR EDUCATIONAL OPPORTUNITIES ACT.
     5         (3)  THE ACT OF JULY 19, 1965 (P.L.215, NO.116), ENTITLED
     6     "AN ACT PROVIDING FOR THE USE OF EYE PROTECTIVE DEVICES BY
     7     PERSONS ENGAGED IN HAZARDOUS ACTIVITIES OR EXPOSED TO KNOWN
     8     DANGERS IN SCHOOLS, COLLEGES AND UNIVERSITIES."
     9         (4)  SECTION 4 OF THE ACT OF JANUARY 25, 1966 (1965
    10     P.L.1546, NO.541), ENTITLED "AN ACT PROVIDING SCHOLARSHIPS
    11     AND PROVIDING FUNDS TO SECURE FEDERAL FUNDS FOR QUALIFIED
    12     STUDENTS OF THE COMMONWEALTH OF PENNSYLVANIA WHO NEED
    13     FINANCIAL ASSISTANCE TO ATTEND POSTSECONDARY INSTITUTIONS OF
    14     HIGHER LEARNING, MAKING AN APPROPRIATION, AND PROVIDING FOR
    15     THE ADMINISTRATION OF THIS ACT."
    16         (5)  THE ACT OF JULY 12, 1972 (P.L.765, NO.181) ENTITLED
    17     "AN ACT RELATING TO DRUGS AND ALCOHOL AND THEIR ABUSE,
    18     PROVIDING FOR PROJECTS AND PROGRAMS AND GRANTS TO EDUCATIONAL
    19     AGENCIES, OTHER PUBLIC OR PRIVATE AGENCIES, INSTITUTIONS OR
    20     ORGANIZATIONS."
    21         (6)  THE ACT OF DECEMBER 15, 1986 (P.L.1595, NO.175),
    22     KNOWN AS THE ANTIHAZING LAW.
    23     * * *
    24     SECTION 11.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.




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