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                                                       PRINTER'S NO. 865

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 738 Session of 2007


        INTRODUCED BY DeLUCA, BELFANTI, BOYD, BUXTON, CALTAGIRONE,
           CARROLL, DALEY, EVERETT, FABRIZIO, FRANKEL, GERGELY, GRUCELA,
           HENNESSEY, HERSHEY, KOTIK, McILHATTAN, MUNDY, PETRONE,
           PRESTON, RUBLEY, SIPTROTH, SONNEY, TRUE, WALKO, WANSACZ,
           WATSON AND YOUNGBLOOD, MARCH 19, 2007

        REFERRED TO COMMITTEE ON EDUCATION, MARCH 19, 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.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 1725-A of the act of March 10, 1949
    10  (P.L.30, No.14), known as the Public School Code of 1949,
    11  amended or added June 19, 1997 (P.L.225, No.22), June 22, 2001
    12  (P.L.530, No.35) and June 29, 2002 (P.L.524, No.88), is amended
    13  to read:
    14     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
    15  for a charter school established under this article shall be
    16  provided in the following manner:
    17     (1)  There shall be no tuition charge for a resident or
    18  nonresident student attending a charter school except for


     1  students at cyber charter schools who do not meet the residency
     2  requirements of clause (2).
     3     (2)  For non-special education students, the charter school
     4  shall receive for each student enrolled no less than the
     5  budgeted total expenditure per average daily membership of the
     6  prior school year, as defined in section 2501(20), minus the
     7  budgeted expenditures of the district of residence for nonpublic
     8  school programs; adult education programs; community/junior
     9  college programs; student transportation services; for special
    10  education programs; facilities acquisition, construction and
    11  improvement services; and other financing uses, including debt
    12  service and fund transfers as provided in the Manual of
    13  Accounting and Related Financial Procedures for Pennsylvania
    14  School Systems established by the department. This amount shall
    15  be paid by the district of residence of each student.
    16  Notwithstanding any other provision of law to the contrary, in
    17  the case of cyber charter schools, for the purposes of this
    18  clause a student is a resident of a school district only if both
    19  of the following criteria are met:
    20     (i)  it is the school district in which his parents or the
    21  guardian of his person resides; and
    22     (ii)  it is the school district in which the student sleeps
    23  at least one hundred eighty-three (183) nights of the year
    24  during which payment is made.
    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)
    20070H0738B0865                  - 2 -     

     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
    20070H0738B0865                  - 3 -     

     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     (b)  The Commonwealth shall provide temporary financial
     5  assistance to a school district due to the enrollment of
     6  students in a charter school established under this article who
     7  attended a nonpublic school in the prior school year in order to
     8  offset the additional costs directly related to the enrollment
     9  of those students in a public charter school. The Commonwealth
    10  shall pay the school district of residence of a student enrolled
    11  in a nonpublic school in the prior school year who is attending
    12  a charter school an amount equal to the school district of
    13  residence's basic education subsidy for the current school year
    14  divided by the district's average daily membership for the prior
    15  school year. This payment shall occur only for the first year of
    16  the attendance of the student in a charter school, starting with
    17  school year 1997-1998. Total payments of temporary financial
    18  assistance to school districts on behalf of a student enrolling
    19  in a charter school who attended a nonpublic school in the prior
    20  school year shall be limited to funds appropriated for this
    21  program in a fiscal year. If the total of the amount needed for
    22  all students enrolled in a nonpublic school in the prior school
    23  year who enroll in a charter school exceeds the appropriation
    24  for the temporary financial assistance program, the amount paid
    25  to a school district for each qualifying student shall be pro
    26  rata reduced. Receipt of funds under this subsection shall not
    27  preclude a school district from applying for a grant under
    28  subsection (c).
    29     (c)  The Commonwealth shall create a grant program to provide
    30  temporary transitional funding to a school district due to the
    20070H0738B0865                  - 4 -     

     1  budgetary impact relating to any student's first-year attendance
     2  at a charter school established under this article. The
     3  department shall develop criteria which shall include, but not
     4  be limited to, the overall fiscal impact on the budget of the
     5  school district resulting from students of a school district
     6  attending a charter school. The criteria shall be published in
     7  the Pennsylvania Bulletin. This subsection shall not apply to a
     8  public school converted to a charter school under section 1717-
     9  A(b). Grants shall be limited to funds appropriated for this
    10  purpose.
    11     (d)  It shall be lawful for any charter school established
    12  under this article to receive, hold, manage and use, absolutely
    13  or in trust, any devise, bequest, grant, endowment, gift or
    14  donation of any property, real or personal and/or mixed, which
    15  shall be made to the charter school for any of the purposes of
    16  this article.
    17     (e)  It shall be unlawful for any trustee of a charter school
    18  or any board of trustees of a charter school or any other person
    19  affiliated in any way with a charter school to demand or
    20  request, directly or indirectly, any gift, donation or
    21  contribution of any kind from any parent, teacher, employe or
    22  any other person affiliated with the charter school as a
    23  condition for employment or enrollment and/or continued
    24  attendance of any pupil. Any donation, gift or contribution
    25  received by a charter school shall be given freely and
    26  voluntarily.
    27     Section 2.  Sections 1741-A, 1742-A, 1743-A, 1744-A, 1745-A,
    28  1746-A, 1747-A, 1748-A, 1749-A, 1750-A and 1751-A of the act,
    29  added June 29, 2002 (P.L.524, No.88), are repealed:
    30  [Section 1741-A.  Powers and duties of department.
    20070H0738B0865                  - 5 -     

     1     (a)  Powers and duties.--The department shall:
     2         (1)  Receive, review and act on applications for the
     3     creation of a cyber charter school and have the power to
     4     request further information from applicants, obtain input
     5     from interested persons or entities and hold hearings
     6     regarding applications.
     7         (2)  Renew the charter of cyber charter school and renew
     8     the charter of a charter school approved under section 1717-A
     9     or 1718-A which provides instruction through the Internet or
    10     other electronic means. Upon renewal of a charter of a
    11     charter school approved under section 1717-A or 1718-A, the
    12     charter school shall qualify as a cyber charter school under
    13     this subdivision and shall be subject to the provisions of
    14     this subdivision.
    15         (3)  Revoke or deny renewal of a cyber charter school's
    16     charter under the provisions of section 1729-A.
    17             (i)  Notwithstanding the provisions of section 1729-
    18         A(i), when the department has revoked or denied renewal
    19         of a charter, the cyber charter school shall be
    20         dissolved. After the disposition of the liabilities and
    21         obligations of the cyber charter school, any remaining
    22         assets of the cyber charter school shall be given over to
    23         the intermediate unit in which the cyber charter school's
    24         administrative office was located for distribution to the
    25         school districts in which the students enrolled in the
    26         cyber charter school reside at the time of dissolution.
    27             (ii)  Notwithstanding any laws to the contrary, the
    28         department may, after notice and hearing, take immediate
    29         action to revoke a charter if:
    30                 (A)  a material component of the student's
    20070H0738B0865                  - 6 -     

     1             education as required under this subdivision is not
     2             being provided; or
     3                 (B)  the cyber charter school has failed to
     4             maintain the financial ability to provide services as
     5             required under this subdivision.
     6         (4)  Execute charters after approval.
     7         (5)  Develop forms, including the notification form under
     8     section 1748-A(b), necessary to carry out the provisions of
     9     this subdivision.
    10     (b)  Hearings.--Hearings conducted by the department shall be
    11  conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).
    12     (c)  Documents.--Documents of the appeal board shall be
    13  subject to the act of June 21, 1957 (P.L.390, No.212), referred
    14  to as the Right-to-Know Law.
    15  Section 1742-A.  Assessment and evaluation.
    16     The department shall:
    17         (1)  Annually assess whether each cyber charter school is
    18     meeting the goals of its charter and is in compliance with
    19     the provisions of the charter and conduct a comprehensive
    20     review prior to granting a five-year renewal of the charter.
    21         (2)  Annually review each cyber charter school's
    22     performance on the Pennsylvania System of School Assessment
    23     test, standardized tests and other performance indicators to
    24     ensure compliance with 22 Pa. Code Ch. 4 (relating to
    25     academic standards and assessment) or subsequent regulations
    26     promulgated to replace 22 Pa. Code Ch. 4.
    27         (3)  Have ongoing access to all records, instructional
    28     materials and student and staff records of each cyber charter
    29     school and to every cyber charter school facility to ensure
    30     the cyber charter school is in compliance with its charter
    20070H0738B0865                  - 7 -     

     1     and this subdivision.
     2  Section 1743-A.  Cyber charter school requirements and
     3                     prohibitions.
     4     (a)  Special financial requirements prohibited.--A cyber
     5  charter school shall not:
     6         (1)  provide discounts to a school district or waive
     7     payments under section 1725-A for any student;
     8         (2)  except as provided for in subsection (e), provide
     9     payments to parents or guardians for the purchase of
    10     instructional materials; or
    11         (3)  except as compensation for the provision of specific
    12     services, enter into agreements to provide funds to a school
    13     entity.
    14     (b)  Enrollment.--A cyber charter school shall report to the
    15  department an increase or a decrease of 30% or more in its
    16  anticipated enrollment set forth in the application under
    17  section 1747-A(11).
    18     (c)  School district.--A cyber charter school shall make
    19  available upon request, either in writing or electronically, to
    20  each student's school district of residence the following:
    21         (1)  A copy of the charter.
    22         (2)  A copy of the cyber charter school application.
    23         (3)  A copy of all annual reports prepared by the cyber
    24     charter school.
    25         (4)  A list of all students from that school district
    26     enrolled in the cyber charter school.
    27     (d)  Parent or guardian.--Upon request and prior to the
    28  student's first day in a cyber charter school, the cyber charter
    29  school shall, either in writing or electronically, provide to
    30  the parent or guardian of a student the following:
    20070H0738B0865                  - 8 -     

     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 offline.
     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 cyber charter 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 cyber charter 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 cyber charter 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:
    20070H0738B0865                  - 9 -     

     1             (i)  The cyber charter school's professional staff,
     2         including the number of staff personnel, their education
     3         level and experience.
     4             (ii)  The cyber charter school's performance on the
     5         PSSA 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 cyber charter
     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 cyber charter
    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 on-line 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 cyber charter school
    24  under paragraph (3).
    25     (f)  Annual report.--A cyber charter 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 cyber charter school shall
    29  provide the department with ongoing access to all records and
    30  facilities necessary for the department to assess the cyber
    20070H0738B0865                 - 10 -     

     1  charter school in accordance with the provisions of this
     2  subdivision.
     3     (h)  Offices and facilities.--A cyber charter school shall
     4  maintain an administrative office within this Commonwealth where
     5  all student records shall be maintained at all times and shall
     6  provide the department with the addresses of all offices and
     7  facilities of the cyber charter school, the ownership thereof
     8  and any lease arrangements. The administrative office of the
     9  cyber charter school shall be considered as the principal place
    10  of business for service of process for any action brought
    11  against the cyber charter school or cyber charter school staff
    12  members. The cyber charter school shall notify the department of
    13  any changes in this information within ten days of the change.
    14     (i)  Applicable law.--Any action taken against the cyber
    15  charter school, its successors or assigns or its employees,
    16  including any cyber charter school staff member as defined in
    17  the act of December 12, 1973 (P.L.397, No.141), known as the
    18  Professional Educator Discipline Act, shall be governed by the
    19  laws of this Commonwealth. If the department initiates an
    20  investigation or pursues an action pursuant to the Professional
    21  Educator Discipline Act involving any current or former charter
    22  school staff member outside this Commonwealth, any reasonable
    23  expenses incurred by the department in such investigation or
    24  action shall be paid by the cyber charter school which employed
    25  that staff member at the time of the alleged misconduct.
    26  Section 1744-A.  School district and intermediate unit
    27                     responsibilities.
    28     An intermediate unit or a school district in which a student
    29  enrolled in a cyber charter school resides shall do all of the
    30  following:
    20070H0738B0865                 - 11 -     

     1         (1)  Provide the cyber charter school within ten days of
     2     receipt of the notice of the admission of the student under
     3     section 1748-A(a) with all records relating to the student,
     4     including transcripts, test scores and a copy of any
     5     individualized education program for that student.
     6         (2)  Provide the cyber charter school with reasonable
     7     access to its facilities for the administration of
     8     standardized tests required under this subdivision.
     9         (3)  Upon request, provide assistance to the cyber
    10     charter school in the delivery of services to a student with
    11     disabilities. The school district or intermediate unit shall
    12     not charge the cyber charter school more for a service than
    13     it charges a school district.
    14         (4)  Make payments to the cyber charter school under
    15     section 1725-A.
    16  Section 1745-A.  Establishment of cyber charter school.
    17     (a)  Establishment.--A cyber charter school may be
    18  established by an individual; one or more teachers who will
    19  teach at the proposed cyber charter school; parents or guardians
    20  of students who will enroll in the cyber charter school; a
    21  nonsectarian college, university or museum located in this
    22  Commonwealth; a nonsectarian corporation not-for-profit as
    23  defined in 15 Pa.C.S. § 5103 (relating to definitions); a
    24  corporation, association or partnership; or any combination of
    25  the foregoing. Section 1327.1 shall not apply to a cyber charter
    26  school established under this subdivision.
    27     (b)  Sectarian entities.--No cyber charter school shall be
    28  established or funded by and no charter shall be granted to a
    29  sectarian school, institution or other entity.
    30     (c)  Attendance.--Attendance at a cyber charter school shall
    20070H0738B0865                 - 12 -     

     1  satisfy requirements for compulsory attendance.
     2     (d)  Application.--An application to establish a cyber
     3  charter school shall be submitted to the department by October 1
     4  of the school year preceding the school year in which the cyber
     5  charter school proposes to commence operation.
     6     (e)  Grant or denial.--Within 120 days of receipt of an
     7  application, the department shall grant or deny the application.
     8  The department shall review the application and shall hold at
     9  least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
    10  open meetings). At least 30 days prior to the hearing, the
    11  department shall publish in the Pennsylvania Bulletin and on the
    12  department's World Wide Web site notice of the hearing and the
    13  purpose of the application.
    14     (f)  Evaluation criteria.--
    15         (1)  A cyber charter school application submitted under
    16     this subdivision shall be evaluated by the department based
    17     on the following criteria:
    18             (i)  The demonstrated, sustainable support for the
    19         cyber charter school plan by teachers, parents or
    20         guardians and students.
    21             (ii)  The capability of the cyber charter school
    22         applicant, in terms of support and planning, to provide
    23         comprehensive learning experiences to students under the
    24         charter.
    25             (iii)  The extent to which the programs outlined in
    26         the application will enable students to meet the academic
    27         standards under 22 Pa. Code Ch. 4 (relating to academic
    28         standards and assessment) or subsequent regulations
    29         promulgated to replace 22 Pa. Code Ch. 4.
    30             (iv)  The extent to which the application meets the
    20070H0738B0865                 - 13 -     

     1         requirements of section 1747-A.
     2             (v)  The extent to which the cyber charter school may
     3         serve as a model for other public schools.
     4         (2)  Written notice of the action of the department shall
     5     be sent by certified mail to the applicant and published on
     6     the department's World Wide Web site. If the application is
     7     denied, the reasons for denial, including a description of
     8     deficiencies in the application, shall be clearly stated in
     9     the notice.
    10         (3)  Upon approval of a cyber charter school application,
    11     a written charter shall be developed which shall contain the
    12     provisions of the charter application and be signed by the
    13     secretary and each member of the board of trustees of the
    14     cyber charter school. The charter, when duly signed, shall
    15     act as legal authorization of the establishment of a cyber
    16     charter school. The charter shall be legally binding on the
    17     department, the cyber charter school and its board of
    18     trustees. The charter shall be for a period of no less than
    19     three years nor more than five years and may be renewed for a
    20     period of five years by the department.
    21         (4)  The decision of the department to deny an
    22     application may be appealed to the appeal board.
    23     (g)  Denied application.--A cyber charter school applicant
    24  may revise and resubmit a denied application to the department.
    25  The department shall grant or deny the revised application
    26  within 60 days after its receipt.
    27     (h)  Appeal.--If the department fails to hold the required
    28  public hearing or to approve or disapprove the charter, the
    29  applicant may file its application as an appeal to the appeal
    30  board. The appeal board shall review the application and make a
    20070H0738B0865                 - 14 -     

     1  decision to approve or disapprove the charter based on the
     2  criteria in subsection (f).
     3  Section 1746-A.  State Charter School Appeal Board review.
     4     (a)  Jurisdiction.--The appeal board shall have the exclusive
     5  review of an appeal by a cyber charter school applicant or by
     6  the board of trustees of a cyber charter school on the decisions
     7  of the department, including:
     8         (1)  The denial of an application for a charter.
     9         (2)  The denial of a renewal of a charter.
    10         (3)  The revocation of a charter.
    11         (4)  An appeal under section 1745-A(h).
    12     (b)  Procedure.--The appeal board shall:
    13         (1)  Review the decision made by the department under
    14     subsection (a) on the record as certified by the department.
    15     The secretary shall recuse himself from all cyber charter
    16     school appeals and shall not participate in a hearing,
    17     deliberation or vote on a cyber charter school appeal. The
    18     appeal board may allow the department, the cyber charter
    19     school applicant or the board of trustees of a cyber charter
    20     school to supplement the record if the supplemental
    21     information was previously unavailable.
    22         (2)  Meet to officially review the certified record no
    23     later than 30 days after the date of filing the appeal.
    24         (3)  Issue a written decision affirming or denying the
    25     appeal no later than 60 days following its review.
    26         (4)  In the case of a decision by the department to deny
    27     a cyber charter application, make its decision based on
    28     section 1745-A(f)(1). A decision by the appeal board to
    29     reverse the decision of the department and grant a charter
    30     shall serve as a requirement for the secretary to sign the
    20070H0738B0865                 - 15 -     

     1     written charter of the cyber charter school.
     2         (5)  In the case of a decision by the department to
     3     revoke or deny renewal of a cyber school charter in
     4     accordance with section 1741-A(a)(3), make its decision based
     5     on section 1729-A(a). A decision of the appeal board to
     6     reverse the decision of the department to not revoke or deny
     7     renewal of a charter shall serve as a requirement of the
     8     department to not revoke or to not deny renewal of the
     9     charter of the cyber charter school.
    10     (c)  Stay.--If the department appeals the decision of the
    11  appeal board, the appeal board's decision shall be stayed only
    12  upon order of the appeal board, the Commonwealth Court or the
    13  Pennsylvania Supreme Court.
    14     (d)  Review.--All decisions of the appeal board shall be
    15  subject to appellate review by the Commonwealth Court.
    16  Section 1747-A.  Cyber charter school application.
    17     In addition to the provisions of section 1719-A, an
    18  application to establish a cyber charter school shall also
    19  include the following:
    20         (1)  The curriculum to be offered and how it meets the
    21     requirements of 22 Pa. Code Ch. 4 (relating to academic
    22     standards and assessment) or subsequent regulations
    23     promulgated to replace 22 Pa. Code Ch. 4.
    24         (2)  The number of courses required for elementary and
    25     secondary students.
    26         (3)  An explanation of the amount of on-line time
    27     required for elementary and secondary students.
    28         (4)  The manner in which teachers will deliver
    29     instruction, assess academic progress and communicate with
    30     students to provide assistance.
    20070H0738B0865                 - 16 -     

     1         (5)  A specific explanation of any cooperative learning
     2     opportunities, meetings with students, parents and guardians,
     3     field trips or study sessions.
     4         (6)  The technology, including types of hardware and
     5     software, equipment and other materials which will be
     6     provided by the cyber charter school to the student.
     7         (7)  A description of how the cyber charter school will
     8     define and monitor a student's school day, including the
     9     delineation of on-line and off-line time.
    10         (8)  A description of commercially prepared standardized
    11     achievement tests that will be used by the cyber charter
    12     school in addition to the Pennsylvania System of School
    13     Assessment test, including the grade levels that will be
    14     tested and how the data collected from the tests will be used
    15     to improve instruction.
    16         (9)  The technical support that will be available to
    17     students and parents or guardians.
    18         (10)  The privacy and security measures to ensure the
    19     confidentiality of data gathered online.
    20         (11)  The level of anticipated enrollment during each
    21     school year of the proposed charter, including expected
    22     increases due to the addition of grade levels.
    23         (12)  The methods to be used to insure the authenticity
    24     of student work and adequate proctoring of examinations.
    25         (13)  The provision of education and related services to
    26     students with disabilities, including evaluation and the
    27     development and revision of individualized education
    28     programs.
    29         (14)  Policies regarding truancy, absences and withdrawal
    30     of students, including the manner in which the cyber charter
    20070H0738B0865                 - 17 -     

     1     school will monitor attendance consistent with the provisions
     2     of section 1715-A(9).
     3         (15)  The types and frequency of communication between
     4     the cyber charter school and the student and the manner in
     5     which the cyber charter school will communicate with parents
     6     and guardians.
     7         (16)  The addresses of all facilities and offices of the
     8     cyber charter school, the ownership thereof and any lease
     9     arrangements.
    10  Section 1748-A.  Enrollment and notification.
    11     (a)  Notice to school district.--
    12         (1)  Within 15 days of the enrollment of a student to a
    13     cyber charter school, the parent or guardian and the cyber
    14     charter school shall notify the student's school district of
    15     residence of the enrollment through the use of the
    16     notification form under subsection (b).
    17         (2)  If a school district which has received notice under
    18     paragraph (1) determines that a student is not a resident of
    19     the school district, the following apply:
    20             (i)  Within seven days of receipt of the notice under
    21         paragraph (1), the school district shall notify the cyber
    22         charter school and the department that the student is not
    23         a resident of the school district. Notification of
    24         nonresidence shall include the basis for the
    25         determination.
    26             (ii)  Within seven days of notification under
    27         subparagraph (i), the cyber charter school shall review
    28         the notification of nonresidence, respond to the school
    29         district and provide a copy of the response to the
    30         department. If the cyber charter school agrees that a
    20070H0738B0865                 - 18 -     

     1         student is not a resident of the school district, it
     2         shall determine the proper district of residence of the
     3         student before requesting funds from another school
     4         district.
     5             (iii)  Within seven days of receipt of the response
     6         under subparagraph (ii), the school district shall notify
     7         the cyber charter school that it agrees with the cyber
     8         charter school's determination or does not agree with the
     9         cyber charter school's determination.
    10             (iv)  A school district that has notified the cyber
    11         charter school that it does not agree with the cyber
    12         charter school's determination under subparagraph (iii)
    13         shall appeal to the department for a final determination.
    14             (v)  All decisions of the department regarding the
    15         school district of residence of a student shall be
    16         subject to review by the Commonwealth Court.
    17             (vi)  A school district shall continue to make
    18         payments to a cyber charter school under section 1725-A
    19         during the time in which the school district of residence
    20         of a student is in dispute.
    21             (vii)  If a final determination is made that a
    22         student is not a resident of an appealing school
    23         district, the cyber charter school shall return all funds
    24         provided on behalf of that student to the school district
    25         within 30 days.
    26     (b)  Notification form.--The department shall develop a
    27  notification form for use under subsection (a). The notification
    28  shall include:
    29         (1)  The name, home address and mailing address of the
    30     student.
    20070H0738B0865                 - 19 -     

     1         (2)  The grade in which the student is being enrolled.
     2         (3)  The date the student will be enrolled.
     3         (4)  The name and address of the cyber charter school and
     4     the name and telephone number of a contact person able to
     5     provide information regarding the cyber charter school.
     6         (5)  The signature of the parent or guardian and an
     7     authorized representative of the cyber charter school.
     8     (c)  Withdrawal.--The cyber charter school and the parent or
     9  guardian of a student enrolled in a cyber charter school shall
    10  provide written notification to the student's school district of
    11  residence within 15 days following the withdrawal of a student
    12  from the cyber charter school.
    13  Section 1749-A.  Applicability of other provisions of this act
    14                     and of other acts and regulations.
    15     (a)  General requirements.--Cyber charter schools shall be
    16  subject to the following:
    17         (1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,
    18     436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,
    19     808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,
    20     1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,
    21     1523, 1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A,
    22     1719-A, 1721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A,
    23     1727-A, 1729-A, 1730-A, 1731-A(a)(1) and (b) and 2014-A and
    24     Articles XII-A, XIII-A and XIV.
    25         (2)  The act of July 17, 1961 (P.L.776, No.341), known as
    26     the Pennsylvania Fair Educational Opportunities Act.
    27         (3)  The act of July 19, 1965 (P.L.215, No.116), entitled
    28     "An act providing for the use of eye protective devices by
    29     persons engaged in hazardous activities or exposed to known
    30     dangers in schools, colleges and universities."
    20070H0738B0865                 - 20 -     

     1         (4)  Section 4 of the act of January 25, 1966 (1965
     2     P.L.1546, No.541), entitled "An act providing scholarships
     3     and providing funds to secure Federal funds for qualified
     4     students of the Commonwealth of Pennsylvania who need
     5     financial assistance to attend postsecondary institutions of
     6     higher learning, making an appropriation, and providing for
     7     the administration of this act."
     8         (5)  The act of July 12, 1972 (P.L.765, No.181) entitled
     9     "An act relating to drugs and alcohol and their abuse,
    10     providing for projects and programs and grants to educational
    11     agencies, other public or private agencies, institutions or
    12     organizations."
    13         (6)  The act of December 15, 1986 (P.L.1595, No.175),
    14     known as the Antihazing Law.
    15     (b)  Regulations.--Cyber charter schools shall be subject to
    16  the following provisions of 22 Pa. Code (relating to education):
    17         (1)  Chapter 4 (relating to academic standards and
    18     assessment).
    19         (2)  Chapter 11 (relating to pupil attendance).
    20         (3)  Chapter 12 (relating to students).
    21         (4)  Section 32.3 (relating to assurances).
    22         (5)  Section 121.3 (relating to discrimination
    23     prohibited).
    24         (6)  Section 235.4 (relating to practices).
    25         (7)  Section 235.8 (relating to civil rights).
    26         (8)  Chapter 711 (relating to charter school services and
    27     programs for children with disabilities).
    28     (c)  Existing charter schools.--
    29         (1)  The charter of a charter school approved under
    30     section 1717-A or 1718-A which provides instruction through
    20070H0738B0865                 - 21 -     

     1     the Internet or other electronic means shall remain in effect
     2     for the duration of the charter and shall be subject to the
     3     provisions of Subdivision (b).
     4         (2)  In addition to subsections (a) and (b), the
     5     following provisions of this subdivision shall apply to a
     6     charter school approved under section 1717-A or 1718-A which
     7     provides instruction through the Internet or other electronic
     8     means:
     9             (i)  Section 1743-A(c), (d), (e), (h) and (i).
    10             (ii)  Section 1744-A.
    11             (iii)  Section 1748-A.
    12  Section 1750-A.  Effect on certain existing charter schools.
    13     (a)  Determination.--For a charter school approved under
    14  section 1717-A or 1718-A which provides instruction through the
    15  Internet or other electronic means, prior to August 15, 2002,
    16  the department shall determine:
    17         (1)  whether the charter school is in compliance with
    18     this subdivision;
    19         (2)  whether the charter school has provided notification
    20     of the enrollment of each existing student to the school
    21     district of residence; and
    22         (3)  how the charter school plans to comply with section
    23     1743-A(d).
    24     (b)  Notification of compliance.--Prior to August 15, 2002,
    25  the department shall:
    26         (1)  Notify each charter school and the chartering school
    27     district of the department's determination under subsection
    28     (a). The notification shall include specific requirements
    29     with which the charter school has failed to comply.
    30         (2)  Publish a copy of the notification on the
    20070H0738B0865                 - 22 -     

     1     department's World Wide Web site.
     2     (c)  Charter school requirement.--A charter school subject to
     3  the requirements of this section shall, either in writing or
     4  electronically, provide the parent or guardian of any student
     5  enrolled in the charter school a copy of the department's
     6  determination under subsection (b).
     7     (d)  School districts.--A school district shall not renew the
     8  charter of a charter school approved under section 1717-A or
     9  1718-A which provides instruction through the Internet or other
    10  electronic means or approve a charter for a cyber charter
    11  school.
    12     (e)  Renewal of charter for certain existing charter
    13  schools.--Upon the expiration of its charter, a charter school
    14  approved under section 1717-A or 1718-A which provides
    15  instruction through the Internet or other electronic means shall
    16  seek renewal of its charter from the department under this
    17  subdivision. The charter shall be amended as needed to reflect
    18  the requirements of this subdivision.
    19  Section 1751-A.  Regulations.
    20     The department may issue regulations to implement this
    21  subdivision.]
    22     Section 3.  The act is amended by adding an article to read:
    23                           ARTICLE XVII-C
    24                       CYBER CHARTER SCHOOLS
    25                    (a)  Preliminary Provisions
    26  Section 1701-C.  Scope.
    27     This article deals with cyber charter schools.
    28  Section 1702-C.  Definitions.
    29     The following words and phrases when used in this article
    30  shall have the meanings given to them in this section unless the
    20070H0738B0865                 - 23 -     

     1  context clearly indicates otherwise:
     2     "Appeal board."  The State Charter School Appeal Board
     3  established by Article XVII-A.
     4     "At-risk student."  A student at risk of educational failure
     5  because of limited English proficiency, poverty, community
     6  factors, truancy, academic difficulties or economic
     7  disadvantage.
     8     "Chief executive officer."  An individual appointed by the
     9  board of trustees to oversee and manage the operation of the
    10  cyber charter school, but who shall not be deemed a professional
    11  staff member under this article.
    12     "Cyber Charter school."  An independent public school
    13  established and operated under a charter from the Department of
    14  Education and in which the school uses technology in order to
    15  provide a significant portion of its curriculum and to deliver a
    16  significant portion of instruction to its students through the
    17  Internet or other electronic means. A cyber charter school must
    18  be organized as a public, nonprofit corporation. A charter may
    19  not be granted to a for-profit entity.
    20     "Department."  The Department of Education of the
    21  Commonwealth.
    22     "School district of residence."  The school district in this
    23  Commonwealth in which the parents or guardians of a child
    24  reside.
    25     "Secretary."  The Secretary of Education of the Commonwealth.
    26     "State board."  The State Board of Education.
    27                          (b)  Governance
    28  Section 1711-C.  Powers of cyber charter schools.
    29     (a)  General powers.--A cyber charter school established
    30  under this article is a body corporate and shall have all powers
    20070H0738B0865                 - 24 -     

     1  necessary or desirable for carrying out its charter, including,
     2  but not limited to, the power to:
     3         (1)  Adopt a name and corporate seal; however, any name
     4     selected shall include the words "cyber charter school."
     5         (2)  Sue and be sued, but only to the same extent and
     6     upon the same condition that political subdivisions and local
     7     agencies can be sued.
     8         (3)  Acquire real property from public or private sources
     9     by lease or gift for use as a cyber charter school facility.
    10         (4)  Receive and disburse funds for cyber charter school
    11     purposes only.
    12         (5)  Make contracts and leases for the procurement of
    13     services, equipment and supplies.
    14         (6)  Incur temporary debts in anticipation of the receipt
    15     of funds.
    16         (7)  Solicit and accept any gifts or grants for cyber
    17     charter school purposes.
    18     (b)  Additional powers.--A cyber charter school shall have
    19  such other powers as are necessary to fulfill its charter and
    20  which are not inconsistent with this article.
    21     (c)  Indebtedness.--Any indebtedness incurred by a cyber
    22  charter school in the exercise of the powers specified in this
    23  section shall not impose any liability or legal obligation upon
    24  the Commonwealth.
    25  Section 1712-C.  Powers of board of trustees.
    26     (a)  General powers.--The board of trustees of a cyber
    27  charter school shall have the authority to decide matters
    28  related to the operation of the school, including, but not
    29  limited to, budgeting, curriculum and operating procedures,
    30  subject to the school's charter. The board shall have the
    20070H0738B0865                 - 25 -     

     1  authority to employ, discharge and contract with necessary
     2  professional and nonprofessional employees subject to the
     3  school's charter and the provisions of this article.
     4     (b)  Compliance with Sunshine Act.--The board of trustees
     5  shall comply with 65 Pa.C.S. Ch. 7 (relating to open meetings).
     6     (c)  Conflict of interest.--No member of the board of
     7  trustees or employee of the cyber charter school may do business
     8  with the school or the management of the school nor may a person
     9  affiliated with the management of the school sit on the board of
    10  trustees.
    11  Section 1713-C.  Term and form of charter.
    12     (a)  Written charter.--Upon approval of a charter application
    13  under section 1727-C, a written charter shall be developed which
    14  shall contain the provisions of the charter application and
    15  which shall be signed by the department or by the chairman of
    16  the appeal board pursuant to section 1727-C(j) and the board of
    17  trustees of the cyber charter school. This written charter, when
    18  duly signed by the department and the cyber charter school's
    19  board of trustees, shall act as legal authorization for the
    20  establishment of a cyber charter school. This written charter
    21  shall be legally binding on both the department and the cyber
    22  charter school's board of trustees.
    23     (b)  Term.--The charter shall be for a period of no less than
    24  three nor more than five years and may be renewed for five-year
    25  periods upon reauthorization by the department or the appeal
    26  board.
    27     (c)  Organization.--A charter will be granted only for a
    28  school organized as a public, nonprofit corporation.
    29  Section 1714-C.  Facilities.
    30     (a)  Location.--A cyber charter school may be located in any
    20070H0738B0865                 - 26 -     

     1  suitable location.
     2     (b)  Exemption from regulation.--The cyber charter school
     3  facility shall be exempt from public school facility regulations
     4  except those pertaining to the health or safety of the pupils.
     5  Section 1715-C.  School staff.
     6     (a)  Requirements.--The board of trustees shall determine the
     7  level of compensation and all terms and conditions of employment
     8  of the staff except as may otherwise be provided in this
     9  article. At least 75% of the professional staff members of a
    10  cyber charter school shall hold appropriate State certification.
    11  Employees of a cyber charter school may organize under the act
    12  of July 23, 1970 (P.L.563, No.195), known as the Public Employe
    13  Relations Act. The board of trustees of a cyber charter school
    14  shall be considered an employer for the purposes of Article XI-
    15  A. Upon formation of one or more collective bargaining units at
    16  the school, the board of trustees shall bargain with the
    17  employees based on the provisions of this article, Article XI-A
    18  and the Public Employe Relations Act. Collective bargaining
    19  units at a cyber charter school shall be separate from any
    20  collective bargaining unit of the school district in which the
    21  cyber charter school is located and shall be separate from any
    22  other collective bargaining unit. A cyber charter school shall
    23  be considered a school entity as provided for in section 1161-A
    24  for the purpose of the secretary seeking an injunction requiring
    25  the cyber charter school to meet the minimum requirements for
    26  instruction as provided for in this article.
    27     (b)  Qualifications.--Each charter application shall list the
    28  general qualifications needed to staff any noncertified
    29  positions. Professional employees who do not hold appropriate
    30  Pennsylvania certification must present evidence that they:
    20070H0738B0865                 - 27 -     

     1         (1)  Meet the qualifications in sections 1109 and 1209.
     2         (2)  Have demonstrated satisfactorily a combination of
     3     experience, achievement and qualifications as defined in the
     4     cyber charter school application in basic skills, general
     5     knowledge, professional knowledge and practice and subject
     6     matter knowledge in the subject area where an individual will
     7     teach.
     8     (c)  Retirement and social security.--All employees of a
     9  cyber charter school shall be enrolled in the Public School
    10  Employee's Retirement System in the same manner as set forth in
    11  24 Pa.C.S. § 8301(a) (relating to mandatory and optional
    12  membership). The Commonwealth shall make contributions on behalf
    13  of cyber charter school employees, and the cyber charter school
    14  shall be considered a school district and shall make payments by
    15  employers and payments on account of Social Security as
    16  established under 24 Pa.C.S. Pt. IV (relating to retirement for
    17  school employees). For purposes of payments by employers, a
    18  cyber charter school shall be considered a school district under
    19  24 Pa.C.S. § 8329(a)(1) (relating to payments on account of
    20  social security deductions from appropriations). The market
    21  value/income aid ratio used in calculating payments as
    22  prescribed in this subsection shall be a composite market
    23  value/income aid ratio for the participating school districts as
    24  determined by the department. Except as otherwise provided,
    25  employees of a cyber charter school shall make regular member
    26  contributions as required for active members under 24 Pa.C.S.
    27  Pt. IV. For purposes of this subsection, a cyber charter school
    28  shall be deemed to be a "public school" as defined in 24 Pa.C.S.
    29  § 8102 (relating to definitions).
    30     (d)  Health care benefits.--Every employee of a cyber charter
    20070H0738B0865                 - 28 -     

     1  school shall be provided the same health care benefits as the
     2  employee would be provided if the employee were an employee of
     3  the local district. The charter school shall make any required
     4  employer's contribution to the district's health plan to an
     5  insurer, a local board of school directors or a contractual
     6  representative of school employees, whichever is appropriate to
     7  provide the required coverage.
     8     (e)  Certification.--Professional employees who hold a first
     9  level teaching or administrative certificate may, at their
    10  option, have the time completed in satisfactory service in a
    11  cyber charter school applied to the length of service
    12  requirements for the next level of certification.
    13     (f)  Criminal history.--All applicants for a position as a
    14  cyber charter school employee who shall have direct contact with
    15  students shall be required to submit a report of criminal
    16  history record information as provided for in section 111 prior
    17  to accepting a position with the cyber charter school. This
    18  subsection shall also apply to any individual who volunteers to
    19  work on a full-time or part-time basis at the cyber charter
    20  school.
    21     (g)  Child abuse clearance.--All applicants for a position as
    22  a school employee shall be required to submit the official
    23  clearance statement regarding child injury or abuse from the
    24  Department of Public Welfare as required by 23 Pa.C.S. Ch. 63
    25  Subch. C.2 (relating to background checks for employment in
    26  schools). This section shall also apply to any individual who
    27  volunteers to work on a full-time or part-time basis at a cyber
    28  charter school.
    29  Section 1716-C.  Tort liability.
    30     For purposes of tort liability, employees of the cyber
    20070H0738B0865                 - 29 -     

     1  charter school shall be considered public employees and the
     2  board of trustees shall be considered the public employer in the
     3  same manner as political subdivisions and local agencies. The
     4  board of trustees of a cyber charter school and the cyber
     5  charter school shall be solely liable for any and all damages of
     6  any kind resulting from any legal challenge involving the
     7  operation of a cyber charter school. Notwithstanding this
     8  requirement, the local board of directors of a school entity
     9  shall not be held liable for any activity or operation related
    10  to the program of the cyber charter school.
    11  Section 1717-C.  Causes for nonrenewal or termination.
    12     (a)  Revocation.--During the term of the charter or at the
    13  end of the term of the charter, the department may choose to
    14  revoke or not to renew the charter based on any of the
    15  following:
    16         (1)  One or more material violations of any of the
    17     conditions, standards or procedures contained in the written
    18     charter signed pursuant to section 1713-C.
    19         (2)  Failure to meet the requirements for student
    20     performance set forth in 22 Pa. Code Ch. 4 (relating to
    21     academic standards and assessment) or subsequent regulations
    22     promulgated to replace 22 Pa. Code Ch. 4 or failure to meet
    23     any performance standard set forth in the written charter
    24     signed pursuant to section 1713-C.
    25         (3)  Failure to meet generally accepted standards of
    26     fiscal management or audit requirements.
    27         (4)  Violation of provisions of this article.
    28         (5)  Violation of any provision of law from which the
    29     cyber charter school has not been exempted, including Federal
    30     laws and regulations governing children with disabilities.
    20070H0738B0865                 - 30 -     

     1         (6)  The cyber charter school has been convicted of
     2     fraud.
     3     (b)  Disqualification.--A member of the board of trustees who
     4  is convicted of a felony or any crime involving moral turpitude
     5  shall be immediately disqualified from serving on the board of
     6  trustees.
     7     (c)  Notice.--Any notice of revocation or nonrenewal of a
     8  charter given by the department shall state the grounds for such
     9  action with reasonable specificity and give reasonable notice to
    10  the governing board of the cyber charter school of the date on
    11  which a public hearing concerning the revocation or nonrenewal
    12  will be held. The department shall conduct such hearing, present
    13  evidence in support of the grounds for revocation or nonrenewal
    14  stated in its notice and give the cyber charter school
    15  reasonable opportunity to offer testimony before taking final
    16  action. Formal action revoking or not renewing a charter shall
    17  be taken by the department at a public meeting pursuant to 65
    18  Pa.C.S. Ch. 7 (relating to open meetings) after the public has
    19  had 30 days to provide comments to the department. All
    20  proceedings of the department pursuant to this subsection shall
    21  be subject to 2 Pa.C.S. Ch. 5 Subch. A (relating to practice and
    22  procedure of Commonwealth agencies). Except as provided in
    23  subsection (d), the decision of the department shall not be
    24  subject to 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial review
    25  of Commonwealth agency action).
    26     (d)  Appeal.--The cyber charter school may appeal the
    27  decision of the department to revoke or not renew the charter to
    28  the appeal board. The appeal board shall have the exclusive
    29  review of a decision not to renew or revoke a charter. The
    30  appeal board shall review the record and shall have the
    20070H0738B0865                 - 31 -     

     1  discretion to supplement the record if the supplemental
     2  information was previously unavailable. The appeal board may
     3  consider the cyber charter school plan, annual reports, student
     4  performance and employee and community support for the cyber
     5  charter school in addition to the record. The appeal board shall
     6  give due consideration to the findings of the department and
     7  specifically articulate its reasons for agreeing or disagreeing
     8  with those findings in its written decision.
     9     (e)  Determination.--If the appeal board determines that the
    10  charter should not be revoked or should be renewed, the appeal
    11  board shall order the department to rescind its revocation or
    12  nonrenewal decision.
    13     (f)  Status of charter.--Except as provided in subsection
    14  (g), the charter shall remain in effect until final disposition
    15  by the appeal board.
    16     (g)  Special circumstances.--In cases where the health or
    17  safety of the school's pupils, staff or both is at serious risk,
    18  the department may take immediate action to revoke a charter.
    19     (h)  Review by Commonwealth Court.--All decisions of the
    20  appeal board shall be subject to appellate review by the
    21  Commonwealth Court.
    22     (i)  Dissolution.--When a charter is revoked, not renewed,
    23  forfeited, surrendered or otherwise ceases to operate, the cyber
    24  charter school shall be dissolved. After the disposition of any
    25  liabilities and obligations of the cyber charter school, any
    26  remaining assets of the cyber charter school, both real and
    27  personal, shall be distributed on a proportional basis to the
    28  school entities with students enrolled in the cyber charter
    29  school for the last full or partial school year of the cyber
    30  charter school. In no event shall such school entities or the
    20070H0738B0865                 - 32 -     

     1  Commonwealth be liable for any outstanding liabilities or
     2  obligations of the cyber charter school.
     3     (j)  Students.--When a charter is revoked or is not renewed,
     4  a student who attended the cyber charter school shall apply to
     5  another public school in the student's school district of
     6  residence. Normal application deadlines will be disregarded
     7  under these circumstances. All student records maintained by the
     8  cyber charter school shall be forwarded within ten days to the
     9  student's district of residence.
    10                  (c)  Establishment and Operation
    11  Section 1721-C.  Powers and duties of department.
    12     (a)  Powers and duties.--The department shall:
    13         (1)  Receive, review and act on applications for the
    14     creation of a cyber charter school and have the power to
    15     request further information from applicants, obtain input
    16     from interested persons or entities and hold hearings
    17     regarding applications.
    18         (2)  Renew the charter of a cyber charter school and
    19     renew the charter of a charter school approved under section
    20     1717-A or 1718-A which provides instruction through the
    21     Internet or other electronic means. Upon renewal of a charter
    22     of a charter school approved under section 1717-C or 1718-C,
    23     the charter school shall qualify as a cyber charter school
    24     under this article and shall be subject to the provisions of
    25     this article.
    26         (3)  Revoke or deny renewal of a cyber charter school's
    27     charter under the provisions of section 1717-C.
    28             (i)  Notwithstanding the provisions of section 1717-
    29         C(i), when the department has revoked or denied renewal
    30         of a charter, the cyber charter school shall be
    20070H0738B0865                 - 33 -     

     1         dissolved. After the disposition of the liabilities and
     2         obligations of the cyber charter school, any remaining
     3         assets of the cyber charter school shall be given over to
     4         the department.
     5             (ii)  Notwithstanding any laws to the contrary, the
     6         department may, after notice and hearing, take immediate
     7         action to revoke a charter if:
     8                 (A)  a material component of the student's
     9             education as required under this article is not being
    10             provided; or
    11                 (B)  the cyber charter school has failed to
    12             maintain the financial ability to provide services as
    13             required under this article.
    14         (4)  Execute charters after approval.
    15         (5)  Develop forms, including the notification form under
    16     section 1731-C(c), necessary to carry out the provisions of
    17     this article.
    18         (6)  Provide for funding at cyber charter schools in
    19     accordance with section 2527.
    20     (b)  Hearings.--Hearings conducted by the department shall be
    21  conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).
    22     (c)  Documents.--Documents of the appeal board shall be
    23  subject to the act of June 21, 1957 (P.L.390, No.212), referred
    24  to as the Right-to-Know Law.
    25  Section 1722-C.  Assessment and evaluation.
    26     The department shall:
    27         (1)  Annually assess whether each cyber charter school is
    28     meeting the goals of its charter as required under section
    29     1726-C(5) and is in compliance with the provisions of the
    30     charter and conduct a comprehensive review prior to granting
    20070H0738B0865                 - 34 -     

     1     a five-year renewal of the charter.
     2         (2)  Annually review each cyber charter school's
     3     performance on the Pennsylvania System of School Assessment
     4     test, standardized tests and other performance indicators to
     5     ensure compliance with 22 Pa. Code Ch. 4 (relating to
     6     academic standards and assessment) or subsequent regulations
     7     promulgated to replace 22 Pa. Code Ch. 4.
     8         (3)  Have ongoing access to all records, instructional
     9     materials and student and staff records of each cyber charter
    10     school and to every cyber charter school facility to ensure
    11     the cyber charter school is in compliance with its charter
    12     and this article.
    13  Section 1723-C.  Cyber charter school requirements and
    14                     prohibitions.
    15     (a)  Special financial requirements prohibited.--A cyber
    16  charter school shall not:
    17         (1)  except as provided for in subsection (e), provide
    18     payments to parents or guardians for the purchase of
    19     instructional materials; or
    20         (2)  except as compensation for the provision of specific
    21     services, enter into agreements to provide funds to a school
    22     entity.
    23     (b)  Enrollment.--A cyber charter school shall report to the
    24  department an increase or a decrease of 30% or more in its
    25  anticipated enrollment set forth in the application under
    26  section 1729-C(11).
    27     (c)  Department.--A cyber charter school shall make available
    28  upon request, either in writing or electronically, to the
    29  department the following:
    30         (1)  A copy of the charter.
    20070H0738B0865                 - 35 -     

     1         (2)  A copy of the cyber charter school application.
     2         (3)  A copy of all annual reports prepared by the cyber
     3     charter school.
     4     (c.1)  School district.--A cyber charter school shall make
     5  available upon request, either in writing or electronically, to
     6  each student's school district of residence, a list of all
     7  students from that school district enrolled in the cyber charter
     8  school.
     9     (d)  Parent or guardian.--Upon request and prior to the
    10  student's first day in a cyber charter school, the cyber charter
    11  school shall, either in writing or electronically, provide to
    12  the parent or guardian of a student the following:
    13         (1)  A list and brief description of the courses of
    14     instruction the student will receive. The list shall be
    15     updated annually for each grade level in which the student is
    16     enrolled.
    17         (2)  A description of the lessons and activities to be
    18     offered both online and offline.
    19         (3)  The manner in which attendance will be reported and
    20     work will be authenticated.
    21         (4)  A list of all standardized tests the student will be
    22     required to take during the school year and the place where
    23     the test will be administered, if available.
    24         (5)  The meetings to be held during the school year
    25     between a parent or guardian and a teacher and among other
    26     school officials or parents or guardians and the manner in
    27     which the parent or guardian will be notified of the time and
    28     place for the meeting.
    29         (6)  The address of the cyber charter school and the
    30     name, telephone number and e-mail address of the school
    20070H0738B0865                 - 36 -     

     1     administrator and other school personnel.
     2         (7)  A list of any extracurricular activities provided by
     3     the cyber charter school.
     4         (8)  The names of the student's teachers, if available,
     5     and the manner in which each teacher can be contacted by the
     6     student or the parent or guardian.
     7         (9)  A list of all services that will be provided to the
     8     student by the cyber charter school.
     9         (10)  Copies of policies relating to computer security
    10     and privacy, truancy, absences, discipline and withdrawal or
    11     expulsion of students.
    12         (11)  Information on:
    13             (i)  The cyber charter school's professional staff,
    14         including the number of staff personnel, their education
    15         level and experience.
    16             (ii)  The cyber charter school's performance on the
    17         PSSA and other standardized test scores.
    18         (12)  Information regarding the proper usage of equipment
    19     and materials and the process for returning equipment and
    20     materials supplied to the students by the cyber charter
    21     school. A parent or guardian shall acknowledge, either in
    22     writing or electronically, the receipt of this information.
    23         (13)  A description of the school calendar, including,
    24     but not limited to, the time frame that will constitute a
    25     school year and a school week, holidays and term breaks.
    26     (e)  Students.--For each student enrolled, a cyber charter
    27  school shall:
    28         (1)  provide all instructional materials;
    29         (2)  provide all equipment, including, but not limited
    30     to, a computer, computer monitor and printer; and
    20070H0738B0865                 - 37 -     

     1         (3)  provide or reimburse for all technology and services
     2     necessary for the on-line delivery of the curriculum and
     3     instruction.
     4  The Commonwealth shall not be liable for any reimbursement owed
     5  to students, parents or guardians by a cyber charter school
     6  under paragraph (3).
     7     (f)  Annual report.--A cyber charter school shall submit an
     8  annual report no later than August 1 of each year to the
     9  department in the form prescribed by the department.
    10     (g)  Records and facilities.--A cyber charter school shall
    11  provide the department with ongoing access to all records and
    12  facilities necessary for the department to assess the cyber
    13  charter school in accordance with the provisions of this
    14  article.
    15     (h)  Offices and facilities.--A cyber charter school shall
    16  maintain an administrative office within this Commonwealth where
    17  all student records shall be maintained at all times and shall
    18  provide the department with the addresses of all offices and
    19  facilities of the cyber charter school, the ownership thereof
    20  and any lease arrangements. The administrative office of the
    21  cyber charter school shall be considered as the principal place
    22  of business for service of process for any action brought
    23  against the cyber charter school or cyber charter school staff
    24  members. The cyber charter school shall notify the department of
    25  any changes in this information within ten days of the change.
    26     (i)  Applicable law.--Any action taken against the cyber
    27  charter school, its successors or assigns or its employees,
    28  including any cyber charter school staff member as defined in
    29  the act of December 12, 1973 (P.L.397, No.141), known as the
    30  Professional Educator Discipline Act, shall be governed by the
    20070H0738B0865                 - 38 -     

     1  laws of this Commonwealth. If the department initiates an
     2  investigation or pursues an action pursuant to the Professional
     3  Educator Discipline Act involving any current or former cyber
     4  charter school staff member outside this Commonwealth, any
     5  reasonable expenses incurred by the department in such
     6  investigation or action shall be paid by the cyber charter
     7  school which employed that staff member at the time of the
     8  alleged misconduct.
     9  Section 1724-C.  Cyber charter school requirements.
    10     Cyber charter schools shall be required to comply with the
    11  following provisions:
    12         (1)  Except as otherwise provided in this article, a
    13     cyber charter school is exempt from statutory requirements
    14     established in this act, from regulations of the State board
    15     and the standards of the secretary not specifically
    16     applicable to cyber charter schools. Cyber charter schools
    17     are not exempt from statutes applicable to public schools
    18     other than this act.
    19         (2)  A cyber charter school shall be accountable to the
    20     parents, the public and the Commonwealth, with the
    21     delineation of that accountability reflected in the charter.
    22     Strategies for meaningful parent and community involvement
    23     shall be developed and implemented by each school.
    24         (3)  A cyber charter school shall not unlawfully
    25     discriminate in admissions, hiring or operation.
    26         (4)  A cyber charter school shall be nonsectarian in all
    27     operations.
    28         (5)  A cyber charter school shall not provide any
    29     religious instruction, nor shall it display religious objects
    30     and symbols on the premises of the cyber charter school.
    20070H0738B0865                 - 39 -     

     1         (6)  A cyber charter school shall not advocate unlawful
     2     behavior.
     3         (7)  A cyber charter school shall only be subject to the
     4     laws and regulations as provided for in this article.
     5         (8)  A cyber charter school shall participate in the
     6     Pennsylvania State Assessment System as provided for in 22
     7     Pa. Code Ch. 4 (relating to academic standards and
     8     assessment), or subsequent regulations promulgated to replace
     9     22 Pa. Code Ch. 4, in the manner in which the school district
    10     in which the cyber charter school is located is scheduled to
    11     participate.
    12         (9)  A cyber charter school shall provide a minimum of
    13     180 days of instruction or 900 hours per year of instruction
    14     at the elementary level, or 990 hours per year of instruction
    15     at the secondary level. Nothing in this paragraph shall
    16     preclude the use of computer and satellite linkages for
    17     delivering instruction to students.
    18         (10)  Boards of trustees and contractors of cyber charter
    19     schools shall be subject to the following statutory
    20     requirements governing construction projects and
    21     construction-related work:
    22             (i)  The following provisions of this act:
    23                 (A)  Sections 751 and 751.1.
    24                 (B)  Sections 756 and 757 insofar as they are
    25             consistent with the act of December 20, 1967
    26             (P.L.869, No.385), known as the Public Works
    27             Contractors' Bond Law of 1967.
    28             (ii)  Section 1 of the act of May 1, 1913 (P.L.155,
    29         No.104), referred to as the Separations Act.
    30             (iii)  The Public Works Contractors' Bond Law of
    20070H0738B0865                 - 40 -     

     1         1967.
     2             (iv)  The act of March 3, 1978 (P.L.6, No.3), known
     3         as the Steel Products Procurement Act.
     4         (11)  Trustees of a cyber charter school shall be public
     5     officials.
     6  Section 1725-C.  School district and intermediate unit
     7                 responsibilities.
     8     Subject to agreement between a cyber charter school and an
     9  intermediate unit or school district, the intermediate unit or a
    10  school district in which a student enrolled in a cyber charter
    11  school resides shall do all of the following:
    12         (1)  Provide the cyber charter school within ten days of
    13     receipt of the notice of the admission of the student under
    14     section 1731-C(a) with all records relating to the student,
    15     including transcripts, test scores and a copy of any
    16     individualized education program for that student.
    17         (2)  Upon request provide the cyber charter school with
    18     reasonable access to its facilities for the administration of
    19     standardized tests required under this article.
    20         (3)  Upon request, provide assistance to the cyber
    21     charter school in the delivery of services to a student with
    22     disabilities. The school district or intermediate unit shall
    23     not charge the cyber charter school more for a service than
    24     it charges a school district.
    25  Section 1726-C.  Contents of application.
    26     An application to establish a cyber charter school shall
    27  include all of the following information:
    28         (1)  The identification of the charter applicant.
    29         (2)  The name of the proposed cyber charter school.
    30         (3)  The grade or age levels served by the school.
    20070H0738B0865                 - 41 -     

     1         (4)  The proposed governance structure of the cyber
     2     charter school, including a description and method for the
     3     appointment or election of members of the board of trustees.
     4     The board of trustees must include at least one member
     5     appointed by the secretary and two members who represent the
     6     intermediate unit serving that cyber charter school's region.
     7         (5)  The mission and education goals of the cyber charter
     8     school, the curriculum to be offered and the methods of
     9     assessing whether students are meeting educational goals.
    10         (6)  The admission policy and criteria for evaluating the
    11     admission of students which shall comply with the
    12     requirements of section 1730-C.
    13         (7)  Procedures which will be used regarding the
    14     suspension or expulsion of pupils. The procedures shall
    15     comply with section 1318.
    16         (8)  Information on the manner in which community groups
    17     will be involved in the cyber charter school planning
    18     process.
    19         (9)  The financial plan for the cyber charter school and
    20     the provisions which will be made for auditing the school
    21     under section 437.
    22         (10)  Procedures which shall be established to review
    23     complaints of parents regarding the operation of the cyber
    24     charter school.
    25         (11)  A description of and address of the physical
    26     facility in which the cyber charter school will be located
    27     and the ownership thereof and any lease arrangements.
    28         (12)  Information on the proposed school calendar for the
    29     cyber charter school, including the length of the school day
    30     and school year consistent with the provisions of section
    20070H0738B0865                 - 42 -     

     1     1502.
     2         (13)  The proposed faculty and a professional development
     3     plan for the faculty of a cyber charter school.
     4         (14)  Whether any agreements have been entered into or
     5     plans developed with the local school district regarding
     6     participation of the cyber charter school students in
     7     extracurricular activities within the school district.
     8         (15)  A report of criminal history record, pursuant to
     9     section 111, for all individuals who shall have direct
    10     contact with students.
    11         (16)  An official clearance statement regarding child
    12     injury or abuse from the Department of Public Welfare as
    13     required by 23 Pa.C.S. Ch. 63 Subch. C.2 (relating to
    14     background checks for employment in schools) for all
    15     individuals who shall have direct contact with students.
    16         (17)  How the cyber charter school will provide adequate
    17     liability and other appropriate insurance for the cyber
    18     charter school, its employees and the board of trustees of
    19     the cyber charter school.
    20  Section 1727-C.  Establishment of cyber charter school.
    21     (a)  Establishment.--A cyber charter school may be
    22  established by:
    23         (1)  an individual;
    24         (2)  one or more teachers who will teach at the proposed
    25     cyber charter school;
    26         (3)  parents or guardians of students who will enroll in
    27     the cyber charter school;
    28         (4)  a nonsectarian college, university or museum located
    29     in this Commonwealth;
    30         (5)  a nonsectarian corporation not-for-profit as defined
    20070H0738B0865                 - 43 -     

     1     in 15 Pa.C.S. § 5103 (relating to definitions);
     2         (6)  a corporation, association or partnership; or
     3         (7)  any combination of the entities listed in paragraph
     4     (1), (2), (3), (4), (5) or (6).
     5     (b)  Home education.--Section 1327.1 shall not apply to a
     6  cyber charter school established under this article.
     7     (c)  Sectarian entities.--No cyber charter school shall be
     8  established or funded by and no charter shall be granted to a
     9  sectarian school, institution or other entity.
    10     (d)  Attendance.--Attendance at a cyber charter school shall
    11  satisfy requirements for compulsory attendance.
    12     (e)  Application.--An application to establish a cyber
    13  charter school shall be submitted to the department by October 1
    14  of the school year preceding the school year in which the cyber
    15  charter school proposes to commence operation.
    16     (f)  Grant or denial.--Within 120 days of receipt of an
    17  application, the department shall grant or deny the application.
    18  The department shall review the application and shall hold at
    19  least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
    20  open meetings). At least 30 days prior to the hearing, the
    21  department shall publish in the Pennsylvania Bulletin and on the
    22  department's Internet website notice of the hearing and the
    23  purpose of the application.
    24     (g)  Evaluation criteria.--
    25         (1)  A cyber charter school application submitted under
    26     this article shall be evaluated by the department based on
    27     the following criteria:
    28             (i)  The demonstrated, sustainable support for the
    29         cyber charter school plan by teachers, parents or
    30         guardians and students.
    20070H0738B0865                 - 44 -     

     1             (ii)  The capability of the cyber charter school
     2         applicant, in terms of support and planning, to provide
     3         comprehensive learning experiences to students under the
     4         charter.
     5             (iii)  The extent to which the programs outlined in
     6         the application will enable students to meet the academic
     7         standards under 22 Pa. Code Ch. 4 (relating to academic
     8         standards and assessment) or subsequent regulations
     9         promulgated to replace 22 Pa. Code Ch. 4.
    10             (iv)  The extent to which the application meets the
    11         requirements of section 1729-C.
    12             (v)  The extent to which the cyber charter school may
    13         serve as a model for other public schools.
    14         (2)  Written notice of the action of the department shall
    15     be sent by certified mail to the applicant and published on
    16     the department's Internet website. If the application is
    17     denied, the reasons for denial, including a description of
    18     deficiencies in the application, shall be clearly stated in
    19     the notice.
    20         (3)  Upon approval of a cyber charter school application,
    21     a written charter shall be developed which shall contain the
    22     provisions of the charter application and be signed by the
    23     secretary and each member of the board of trustees of the
    24     cyber charter school. The charter, when duly signed, shall
    25     act as legal authorization of the establishment of a cyber
    26     charter school. The charter shall be legally binding on the
    27     department, the cyber charter school and its board of
    28     trustees. The charter shall be for a period of no less than
    29     three years nor more than five years and may be renewed for a
    30     period of five years by the department.
    20070H0738B0865                 - 45 -     

     1         (4)  The decision of the department to deny an
     2     application may be appealed to the appeal board.
     3     (h)  Funding.--Once approved a cyber charter school is
     4  eligible for funding by the department pursuant to section 2527.
     5     (i)  Denied application.--A cyber charter school applicant
     6  may revise and resubmit a denied application to the department.
     7  The department shall grant or deny the revised application
     8  within 60 days after its receipt.
     9     (j)  Appeal.--If the department fails to hold the required
    10  public hearing or to approve or disapprove the charter, the
    11  applicant may file its application as an appeal to the appeal
    12  board. The appeal board shall review the application and make a
    13  decision to approve or disapprove the charter based on the
    14  criteria in subsection (g).
    15  Section 1728-C.  Appeal board review.
    16     (a)  Jurisdiction.--The appeal board shall have the exclusive
    17  review of an appeal by a cyber charter school applicant or by
    18  the board of trustees of a cyber charter school on the decisions
    19  of the department, including:
    20         (1)  The denial of an application for a charter.
    21         (2)  The denial of a renewal of a charter.
    22         (3)  The revocation of a charter.
    23         (4)  An appeal under section 1727-C(j).
    24     (b)  Procedure.--The appeal board shall:
    25         (1)  Review the decision made by the department under
    26     subsection (a) on the record as certified by the department.
    27     The secretary shall recuse himself from all cyber charter
    28     school appeals and shall not participate in a hearing,
    29     deliberation or vote on a cyber charter school appeal. The
    30     appeal board may allow the department, the cyber charter
    20070H0738B0865                 - 46 -     

     1     school applicant or the board of trustees of a cyber charter
     2     school to supplement the record if the supplemental
     3     information was previously unavailable.
     4         (2)  Meet to officially review the certified record no
     5     later than 30 days after the date of filing the appeal.
     6         (3)  Issue a written decision affirming or denying the
     7     appeal no later than 60 days following its review.
     8         (4)  In the case of a decision by the department to deny
     9     a cyber charter application, make its decision based on
    10     section 1727-C(g)(1). A decision by the appeal board to
    11     reverse the decision of the department and grant a charter
    12     shall serve as a requirement for the secretary to sign the
    13     written charter of the cyber charter school.
    14         (5)  In the case of a decision by the department to
    15     revoke or deny renewal of charter of a cyber charter school
    16     in accordance with section 1721-C(a)(3), make its decision
    17     based on section 1717-C(a). A decision of the appeal board to
    18     reverse the decision of the department to not revoke or deny
    19     renewal of a charter shall serve as a requirement of the
    20     department to not revoke or to not deny renewal of the
    21     charter of the cyber charter school.
    22     (c)  Stay.--If the department appeals the decision of the
    23  appeal board, the appeal board's decision shall be stayed only
    24  upon order of the appeal board, the Commonwealth Court or the
    25  Pennsylvania Supreme Court.
    26     (d)  Review.--All decisions of the appeal board shall be
    27  subject to appellate review by the Commonwealth Court.
    28  Section 1729-C.  Cyber charter school application.
    29     In addition to the provisions of section 1726-C, an
    30  application to establish a cyber charter school shall also
    20070H0738B0865                 - 47 -     

     1  include the following:
     2         (1)  The curriculum to be offered and how it meets the
     3     requirements of 22 Pa. Code Ch. 4 (relating to academic
     4     standards and assessment) or subsequent regulations
     5     promulgated to replace 22 Pa. Code Ch. 4.
     6         (2)  The number of courses required for elementary and
     7     secondary students.
     8         (3)  An explanation of the amount of on-line time
     9     required for elementary and secondary students.
    10         (4)  The manner in which teachers will deliver
    11     instruction, assess academic progress and communicate with
    12     students to provide assistance.
    13         (5)  A specific explanation of any cooperative learning
    14     opportunities, meetings with students, parents and guardians,
    15     field trips or study sessions.
    16         (6)  The technology, including types of hardware and
    17     software, equipment and other materials which will be
    18     provided by the cyber charter school to the student.
    19         (7)  A description of how the cyber charter school will
    20     define and monitor a student's school day, including the
    21     delineation of on-line and off-line time.
    22         (8)  A description of commercially prepared standardized
    23     achievement tests that will be used by the cyber charter
    24     school in addition to the Pennsylvania System of School
    25     Assessment test, including the grade levels that will be
    26     tested and how the data collected from the tests will be used
    27     to improve instruction.
    28         (9)  The technical support that will be available to
    29     students and parents or guardians.
    30         (10)  The privacy and security measures to ensure the
    20070H0738B0865                 - 48 -     

     1     confidentiality of data gathered online.
     2         (11)  The level of anticipated enrollment during each
     3     school year of the proposed charter, including expected
     4     increases due to the addition of grade levels.
     5         (12)  The methods to be used to insure the authenticity
     6     of student work and adequate proctoring of examinations.
     7         (13)  The provision of education and related services to
     8     students with disabilities, including evaluation and the
     9     development and revision of individualized education
    10     programs.
    11         (14)  Policies regarding truancy, absences and withdrawal
    12     of students, including the manner in which the cyber charter
    13     school will monitor attendance consistent with the provisions
    14     of section 1724-C(9).
    15         (15)  The types and frequency of communication between
    16     the cyber charter school and the student and the manner in
    17     which the cyber charter school will communicate with parents
    18     and guardians.
    19         (16)  The addresses of all facilities and offices of the
    20     cyber charter school, the ownership thereof and any lease
    21     arrangements.
    22  Section 1730-C.  Enrollment.
    23     (a)  General rule.--All resident children in this
    24  Commonwealth qualify for admission to a cyber charter school
    25  within the provisions of subsection (b). If more students apply
    26  to the cyber charter school than the number of attendance slots
    27  available in the school, then students must be selected on a
    28  random basis from a pool of qualified applicants meeting the
    29  established eligibility criteria and submitting an application
    30  by the deadline established by the cyber charter school, except
    20070H0738B0865                 - 49 -     

     1  that the cyber charter school may give preference in enrollment
     2  to a child of a parent who has actively participated in the
     3  development of the cyber charter school and to siblings of
     4  students presently enrolled in the cyber charter school.
     5     (b)  Admission policy.--
     6         (1)  A cyber charter school shall not discriminate in its
     7     admission policies or practices on the basis of intellectual
     8     ability, except as provided in paragraph (2), or athletic
     9     ability, measures of achievement or aptitude, status as a
    10     person with a disability, proficiency in the English language
    11     or any other basis that would be illegal if used by a school
    12     district.
    13         (2)  A cyber charter school may limit admission to a
    14     particular grade level, a targeted population group composed
    15     of at-risk students, or areas of concentration of the school
    16     such as mathematics, science or the arts. A cyber charter
    17     school may establish reasonable criteria to evaluate
    18     prospective students which shall be outlined in the school's
    19     charter.
    20     (c)  Nonresident students.--If available classroom space
    21  permits, a cyber charter school may enroll nonresident students
    22  on a space-available basis, and the student's district of
    23  residence shall permit the student to attend the charter school.
    24  The terms and conditions of the enrollment shall be outlined in
    25  the school's charter.
    26  Section 1731-C.  Enrollment and notification.
    27     (a)  Notice to school district.--
    28         (1)  Within 15 days of the enrollment of a student to a
    29     cyber charter school, the parent or guardian and the cyber
    30     charter school shall notify the student's school district of
    20070H0738B0865                 - 50 -     

     1     residence of the enrollment through the use of the
     2     notification form under subsection (b).
     3         (2)  If a school district which has received notice under
     4     paragraph (1) determines that a student is not a resident of
     5     the school district, the following apply:
     6             (i)  Within 30 days of receipt of the notice under
     7         paragraph (1), the school district shall notify the cyber
     8         charter school and the department that the student is not
     9         a resident of the school district. Notification of
    10         nonresidence shall include the basis for the
    11         determination.
    12             (ii)  Within seven days of notification under
    13         subparagraph (i), the cyber charter school shall review
    14         the notification of nonresidence, respond to the school
    15         district and provide a copy of the response to the
    16         department.
    17             (iii)  Within seven days of receipt of the response
    18         under subparagraph (ii), the school district shall notify
    19         the cyber charter school that it agrees with the cyber
    20         charter school's determination or does not agree with the
    21         cyber charter school's determination.
    22             (iv)  A school district that has notified the cyber
    23         charter school that it does not agree with the cyber
    24         charter school's determination under subparagraph (iii)
    25         shall appeal to the department for a final determination.
    26             (v)  All decisions of the department regarding the
    27         school district of residence of a student shall be
    28         subject to review by the Commonwealth Court.
    29             (vi)  If a final determination is made that a student
    30         is not a resident of an appealing school district, the
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     1         cyber charter school shall return all funds provided on
     2         behalf of that student to the department within 30 days.
     3     (b)  Notification form.--The department shall develop a
     4  notification form for use under subsection (a). The notification
     5  shall include:
     6         (1)  The name, home address and mailing address of the
     7     student.
     8         (2)  The grade in which the student is being enrolled.
     9         (3)  The date the student will be enrolled.
    10         (4)  The name and address of the cyber charter school and
    11     the name and telephone number of a contact person able to
    12     provide information regarding the cyber charter school.
    13         (5)  The signature of the parent or guardian and an
    14     authorized representative of the cyber charter school.
    15     (c)  Withdrawal.--The cyber charter school and the parent or
    16  guardian of a student enrolled in a cyber charter school shall
    17  provide written notification to the student's school district of
    18  residence within 15 days following the withdrawal of a student
    19  from the cyber charter school.
    20  Section 1732-C.  Equipment.
    21     All computers, software and Internet connections are the
    22  property of the cyber charter school, not the parents or the
    23  students, and the disposition of the property of the school is
    24  left to the school itself. If a student leaves the cyber charter
    25  school, the student must return the school's property to it in
    26  usable condition or pay a fine in the form of fair market value
    27  for it, enforceable in a court of law.
    28  Section 1733-C.  Extracurricular activities.
    29     Notwithstanding any provision to the contrary, no school
    30  district of residence shall prohibit a student of a cyber
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     1  charter school from participating in any extracurricular
     2  activity of that school district of residence, provided, that
     3  the student is able to fulfill all of the requirements of
     4  participation in such activity and the charter school does not
     5  provide the same extracurricular activity.
     6  Section 1734-C.  Applicability of other provisions of this act
     7                 and of other acts and regulations.
     8     (a)  General requirements.--Cyber charter schools shall be
     9  subject to the following:
    10         (1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,
    11     436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,
    12     808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,
    13     1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,
    14     1523, 1531, 1547, 1721-A, 1730-A, 1731-A(a)(1) and (b) and
    15     2014-A and Articles XII-A, XIII-A and XIV.
    16         (2)  The act of July 17, 1961 (P.L.776, No.341), known as
    17     the Pennsylvania Fair Educational Opportunities Act.
    18         (3)  The act of July 19, 1965 (P.L.215, No.116), entitled
    19     "An act providing for the use of eye protective devices by
    20     persons engaged in hazardous activities or exposed to known
    21     dangers in schools, colleges and universities."
    22         (4)  Section 4 of the act of January 25, 1966 (1965
    23     P.L.1546, No.541), entitled "An act providing scholarships
    24     and providing funds to secure Federal funds for qualified
    25     students of the Commonwealth of Pennsylvania who need
    26     financial assistance to attend postsecondary institutions of
    27     higher learning, making an appropriation, and providing for
    28     the administration of this act."
    29         (5)  The act of July 12, 1972 (P.L.765, No.181), entitled
    30     "An act relating to drugs and alcohol and their abuse,
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     1     providing for projects and programs and grants to educational
     2     agencies, other public or private agencies, institutions or
     3     organizations."
     4         (6)  The act of December 15, 1986 (P.L.1595, No.175),
     5     known as the Antihazing Law.
     6     (b)  Regulations.--Cyber charter schools shall be subject to
     7  the following provisions of 22 Pa. Code (relating to education):
     8         (1)  Chapter 4 (relating to academic standards and
     9     assessment).
    10         (2)  Chapter 11 (relating to student attendance).
    11         (3)  Chapter 12 (relating to students and student
    12     services).
    13         (4)  Section 32.3 (relating to assurances).
    14         (5)  Section 121.3 (relating to discrimination
    15     prohibited).
    16         (6)  Section 235.4 (relating to practices).
    17         (7)  Section 235.8 (relating to civil rights).
    18         (8)  Chapter 711 (relating to charter school services and
    19     programs for children with disabilities).
    20     (c)  Bidding requirements.--Cyber charter schools are subject
    21  to the same bidding requirements as school districts and other
    22  governmental entities in this Commonwealth.
    23     (d)  Existing charter schools.--
    24         (1)  The charter of a charter school approved under
    25     section 1717-A or 1718-A which provides instruction through
    26     the Internet or other electronic means shall remain in effect
    27     for the duration of the charter and shall be subject to the
    28     provisions of section 1741-C.
    29         (2)  In addition to subsections (a) and (b), the
    30     following provisions of this article shall apply to a charter
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     1     school approved under section 1717-A or 1718-A which provides
     2     instruction through the Internet or other electronic means:
     3             (i)  Section 1723-C(c), (d), (e), (h) and (i).
     4             (ii)  Section 1725-C.
     5             (iii)  Section 1731-C.
     6                   (d)  Miscellaneous Provisions
     7  Section 1741-C.  Effect on certain existing charter schools.
     8     (a)  Determination.--For a charter school approved under
     9  section 1717-A or 1718-A which provides instruction through the
    10  Internet or other electronic means, the department shall
    11  determine:
    12         (1)  whether the charter school is in compliance with
    13     this article;
    14         (2)  whether the charter school has provided notification
    15     of the enrollment of each existing student to the school
    16     district of residence; and
    17         (3)  how the charter school plans to comply with section
    18     1723-C.
    19     (b)  Notification of compliance.--The department shall:
    20         (1)  Notify each charter school and the chartering school
    21     district of the department's determination under subsection
    22     (a). The notification shall include specific requirements
    23     with which the charter school has failed to comply.
    24         (2)  Publish a copy of the notification on the
    25     department's Internet website.
    26     (c)  Charter school requirement.--A charter school subject to
    27  the requirements of this section shall, either in writing or
    28  electronically, provide the parent or guardian of any student
    29  enrolled in the charter school a copy of the department's
    30  determination under subsection (b).
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     1     (d)  School districts.--A school district shall not renew the
     2  charter of a charter school approved under section 1717-A or
     3  1718-A which provides instruction through the Internet or other
     4  electronic means or approve a charter for a cyber charter
     5  school.
     6     (e)  Renewal of charter for certain existing charter
     7  schools.--Upon the expiration of its charter, a charter school
     8  approved under section 1717-A or 1718-A which provides
     9  instruction through the Internet or other electronic means shall
    10  seek renewal of its charter from the department under this
    11  article. The charter shall be amended as needed to reflect the
    12  requirements of this article.
    13  Section 1742-C.  Regulations.
    14     The department may issue regulations to implement this
    15  article.
    16     Section 4.  The act is amended by adding a section to read:
    17     Section 2527.  Payments to cyber charter schools.--(a)
    18  Notwithstanding any other provision of this article, each cyber
    19  charter school shall be paid by the Commonwealth on account of
    20  the instruction of pupils an amount as follows:
    21     (1)  For nonspecial education pupils:
    22     (i)  Five thousand dollars ($5,000) per pupil enrolled in a
    23  cyber charter school enrolling one thousand (1,000) or fewer
    24  pupils.
    25     (ii)  Four thousand dollars ($4,000) per pupil enrolled in a
    26  cyber charter school enrolling between one thousand one (1,001)
    27  pupils and four thousand nine hundred ninety-nine (4,999)
    28  pupils.
    29     (iii)  Three thousand dollars ($3,000) per pupil enrolled in
    30  a charter cyber school enrolling five thousand (5,000) pupils or
    20070H0738B0865                 - 56 -     

     1  more.
     2     (2)  For special education pupils, the amount shall be
     3  equivalent to the cost of a nonspecial education pupil as set
     4  forth in paragraph (1), plus the actual cost of providing
     5  special education services at the cyber charter school in
     6  accordance with the pupil's Individualized Education Program.
     7     (3)  Enrollments shall be determined by the number of
     8  students enrolled in the cyber charter school as of May 31 of
     9  the previous school year or, in the case of a new cyber charter
    10  school, the enrollment as of the first day of the current school
    11  year.
    12     (b)  A student enrolled in a cyber charter school shall not
    13  be included in the average daily membership of the student's
    14  district of residence for the purpose of providing basic
    15  education funding payments and special education funding
    16  pursuant to this article.
    17     Section 5.  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).
    20070H0738B0865                 - 57 -     

     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 6.  This act shall apply to the 2007-2008 school year
     9  and thereafter.
    10     Section 7.  This act shall take effect immediately.














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