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        PRIOR PRINTER'S NOS. 957, 1832, 2083,         PRINTER'S NO. 2347
        2169

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 842 Session of 2007


                     Report of the Committee of Conference

        To the Members of the House of Representatives and Senate:

           We, the undersigned, Committee of Conference on the part of
        the House of Representatives and Senate for the purpose of
        considering House Bill No. 842, entitled:
        "An act amending the act of March 10, 1949 (P.L.30, No.14),
        entitled 'An act relating to the public school system, including
        certain provisions applicable as well to private and parochial
        schools; amending, revising, consolidating and changing the laws
        relating thereto,' further providing for TRANSFERRED PROGRAMS
        AND CLASSES AND FOR program of continuing professional
        development EDUCATION AND FOR EDUCATIONAL ASSISTANCE PROGRAM;
        PROVIDING FOR DISTRESSED SCHOOL DISTRICTS AND STUDENT ATTENDANCE
        IN OTHER DISTRICTS; IN CHARTER SCHOOL PROVISIONS, FURTHER
        PROVIDING FOR ENROLLMENT; * * * AND FURTHER PROVIDING FOR
        PAYMENTS ON ACCOUNT OF LIMITED ENGLISH PROFICIENCY PROGRAMS, FOR
        PAYMENTS TO INTERMEDIATE UNITS, FOR SPECIAL EDUCATION PAYMENTS
        TO SCHOOL DISTRICTS AND FOR PENNSYLVANIA ACCOUNTABILITY GRANTS,"

        respectfully submit the following bill as our report:

                                           Dwight Evans

                                           James R. Roebuck, Jr.

                                           Jess M. Stairs

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

                                           Dominic Pilleggi

                                           Gibson E. Armstrong

                                           Raphael J. Musto

                                  (Committee on the part of the Senate.)


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    20070H0842B2347                  - 2 -     

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing for background
     6     checks of prospective employees and conviction of employees
     7     for certain offenses, in school finances, for annual budget,
     8     in district and assistant superintendents, for eligibility,
     9     in professional employees, for qualifications and for
    10     transferred programs and classes, in certification of
    11     teachers, for program of continuing professional education;
    12     providing for continuing professional education for school or
    13     system leaders and for Pennsylvania school leadership
    14     standards; in pupils and attendance, further providing for
    15     school lunch and breakfast reimbursement; further providing
    16     for duties of Department of Education relating to school
    17     health services and for educational assistance program; in
    18     early learning programs, further providing for Head Start
    19     Supplemental Assistance Program; establishing the
    20     Pennsylvania Pre-K Counts Program; providing for distressed
    21     school districts and student attendance in other districts;
    22     in opportunities for educational excellence, for
    23     responsibilities of department and State Board of Education;
    24     in education empowerment provisions, providing for
    25     superintendent power to recommend dismissal; further
    26     providing for education empowerment districts and for boards
    27     of control for certain school districts; in community
    28     education councils, further providing for State funding;
    29     establishing the Pennsylvania Technical College Program; in
    30     educational improvement tax credit provisions, further
    31     providing for limitations; providing for funding for public
    32     libraries; in reimbursement by Commonwealth and between
    33     school districts, further providing for small district
    34     assistance; providing for basic education funding for 2006-
    35     2007 school year; further providing for payments on account
    36     of limited English proficiency programs, for payments to
    37     intermediate units, and for special education payments to
    38     school districts; providing for budget stabilization plan
    39     progress report; and further providing for payments on
    40     account of pupil transportation, for Commonwealth
    41     reimbursements for charter schools and cyber charter schools
    42     and for Pennsylvania accountability grants.

    43     The General Assembly of the Commonwealth of Pennsylvania
    44  hereby enacts as follows:
    45     Section 1.  Section 111(c.1) of the act of March 10, 1949
    46  (P.L.30, No.14), known as the Public School Code of 1949, added
    47  July 11, 2006 (P.L.1092, No.114), is amended to read:
    48     Section 111.  Background Checks of Prospective Employes;
    49  Conviction of Employes of Certain Offenses.--* * *

    20070H0842B2347                  - 3 -     

     1     (c.1)  Beginning April 1, 2007, administrators shall require
     2  the applicant to submit with the application for employment a
     3  copy of the Federal criminal history record in a manner
     4  prescribed by the Department of Education. At a minimum, the
     5  Department of Education shall prescribe a method for applicants
     6  to submit a set of fingerprints to be transmitted to the Federal
     7  Bureau of Investigation for Federal criminal history record
     8  information pursuant to the Federal Bureau of Investigation
     9  appropriation of Title II of Public Law 92-544, 86 Stat. 1115.
    10  When the applicant provides a copy of the Federal criminal
    11  history record, it shall be no more than one (1) year old.
    12  Administrators shall maintain a copy of the required information
    13  and shall require each applicant to produce a Federal criminal
    14  history record that may not be more than one (1) year old at the
    15  time of employment. The original Federal criminal history record
    16  shall be returned to the applicant.
    17     * * *
    18     Section 2.  Section 687(j) of the act, amended July 11, 2006
    19  (P.L.1092, No.114), is amended to read:
    20     Section 687.  Annual Budget; Additional or Increased
    21  Appropriations; Transfer of Funds.--* * *
    22     (j)  Notwithstanding any other provisions of this act, the
    23  board of school directors of each school district may reopen its
    24  2003-2004 budget, its 2004-2005 budget, its 2005-2006 budget
    25  [or], its 2006-2007 budget or its 2007-2008 budget to reflect
    26  any State allocations for fiscal year 2003-2004, fiscal year
    27  2004-2005, fiscal year 2005-2006 [or], fiscal year 2006-2007 or
    28  fiscal year 2007-2008 provided by the General Assembly through
    29  this act.
    30     Section 3.  Section 1003 of the act, amended December 19,
    20070H0842B2347                  - 4 -     

     1  1975 (P.L.511, No.150), is amended to read:
     2     Section 1003.  Eligibility.--No person shall be eligible for
     3  election or appointment as a district, or assistant district
     4  superintendent, unless--
     5     (1)  He holds a diploma from a college or other institution
     6  approved by the Department of Education;
     7     (2)  He has had six (6) years' successful teaching
     8  experience, not less than three of which shall have been in a
     9  supervisory or administrative capacity;
    10     (3)  He has completed in a college or university a graduate
    11  [course] program in education approved by the Department of
    12  Education[;] that includes the Pennsylvania school leadership
    13  standards under section 1217. Completion of the program shall
    14  not be subject to waiver under section 1714-B unless the
    15  candidate provides to the Secretary of Education evidence that
    16  the candidate has successfully completed an equivalent
    17  leadership development program that addresses the school
    18  leadership standards under section 1217.
    19     (4)  Provided that in school districts of the first class,
    20  five (5) years of administrative experience at the level of
    21  assistant, associate or deputy superintendent, may be
    22  substituted for prescribed graduate administrative courses, and
    23  which shall be the responsibility of the Secretary of Education
    24  to review these equivalences to conform with State board
    25  regulations.
    26     Serving either as county, district, or assistant county or
    27  district superintendent, or associate superintendent, in this
    28  Commonwealth, at the time this act becomes effective, shall,
    29  irrespective of the foregoing requirements, be considered
    30  sufficient qualification for any of the aforesaid offices.
    20070H0842B2347                  - 5 -     

     1     Section 4.  Section 1109 of the act, amended March 19, 1970
     2  (P.L.189, No.73), is amended to read:
     3     Section 1109.  Qualifications.--(a)  Every teacher employed
     4  to teach in the public schools of this Commonwealth must be a
     5  person of good moral character, must be at least eighteen years
     6  of age, and must be a citizen of the United States: Provided,
     7  That citizenship may be waived in the case of exchange teachers
     8  not permanently employed, and teachers employed for the purpose
     9  of teaching foreign languages, including special teachers who
    10  speak the idiomatic or colloquial language of immigrants
    11  residing in the school district, and employed for the purpose of
    12  easing the transition period of such immigrants.
    13     (b)  Every principal appointed after August thirty-first, one
    14  thousand nine hundred fifty-three, employed in the public
    15  schools of this Commonwealth, who devotes one-half or more of
    16  his time to supervision and administration, shall be properly
    17  certificated by the Department of Public Instruction in
    18  accordance with such standards as the State Board of Education
    19  may establish.
    20     (c)  An individual who is granted an administrative
    21  certificate by the Department of Education prior to January 1,
    22  2008, and who is employed for the first time in a position of
    23  principal, vice principal or assistant principal in a public
    24  school in this Commonwealth on or after January 1, 2008, shall
    25  complete the induction program provided for in subsection (f)
    26  within five years of appointment as a principal, vice principal
    27  or assistant principal.
    28     (d)  (1)  An individual who applies on or after January 1,
    29  2008, for a certificate to become eligible to serve as a
    30  principal, vice principal or assistant principal in a public
    20070H0842B2347                  - 6 -     

     1  school in this Commonwealth and who otherwise meets the
     2  requirements for such certificate shall be issued an
     3  Administrative I certificate.
     4     (2)  No individual may serve as a principal, vice principal
     5  or assistant principal on an Administrative I certificate for
     6  more than five school years.
     7     (e)  The holder of an Administrative I certificate shall be
     8  issued an Administrative II certificate upon application to the
     9  Department of Education verifying three years of satisfactory
    10  service on an Administrative I certificate and successful
    11  completion of the induction program provided for in subsection
    12  (f).
    13     (f)  (1)  The Department of Education shall design and offer
    14  an induction program at no cost to those principals, vice
    15  principals and assistant principals who participate and at no
    16  cost to their employer school entities and shall approve other
    17  providers to offer induction programs. An induction program
    18  shall be designed to aid in development in the core school
    19  leadership standards identified in section 1217(a)(1).
    20     (2)  A participant in an induction program shall not be
    21  required to attend more than thirty-six (36) hours of induction
    22  during any one school year or a total of one hundred eight (108)
    23  hours over the course of the induction program.
    24     (3)  Hours of participation in an induction program shall be
    25  applied toward meeting the certificate holder's continuing
    26  professional education requirements under section 1205.2.
    27     Section 5.  Section 1113(c) of the act, amended August 5,
    28  1991 (P.L.219, No.25), is amended and the section is amended by
    29  adding a subsection to read:
    30     Section 1113.  Transferred Programs and Classes.--* * *
    20070H0842B2347                  - 7 -     

     1     (b.2)  (1)  The following shall apply to professional and
     2  temporary professional employes of a distressed school district
     3  in which pupils have been reassigned to another school district
     4  pursuant to section 1607.1:
     5     (i)  The distressed school district shall create a pool
     6  comprised of the professional and temporary professional
     7  employes who have received formal notice of suspension from the
     8  distressed school district as a result of the curtailment of the
     9  high school program.
    10     (ii)  Employes in the pool created under subclause (i) shall
    11  be offered employment by any school district with a border that
    12  is no more than three miles from a border of a distressed school
    13  district, as set forth in section 1607.1(a)(1), whenever that
    14  school district has a vacancy for a position that an employe in
    15  the pool is certified to fill, provided that no employe of the
    16  school district in which the vacancy exists, including a
    17  suspended or demoted employe, has a right to such vacancy under
    18  this act or the collective bargaining agreement of that school
    19  district.
    20     (iii)  No new employe shall be hired by any school district
    21  with a border that is three miles or less from a border of a
    22  distressed school district until the position has been offered,
    23  in order of seniority, to all properly certified members of the
    24  pool created under subclause (i).
    25     (2)  Employes hired from the pool as provided under this
    26  subsection shall be credited by the hiring school district for
    27  all sick leave accumulated in the distressed school district and
    28  shall be credited for years of service in the distressed school
    29  district for purposes of salary schedule placement. Temporary
    30  professional and professional employes shall further be credited
    20070H0842B2347                  - 8 -     

     1  for their years of service in the distressed school district for
     2  purposes of sabbatical leave eligibility, suspension and
     3  realignment rights and eligibility for any retirement incentives
     4  or severance payments in a hiring school district.
     5     (c)  Nothing contained in [this section] subsections (a) and
     6  (b.1) shall be construed to supersede or preempt any provision
     7  of a collective bargaining agreement in effect on February 4,
     8  1982, and negotiated by a school entity and an exclusive
     9  representative of the employes in accordance with the act of
    10  July 23, 1970 (P.L.563, No.195), known as the "Public Employe
    11  Relations Act."
    12     * * *
    13     Section 6.  Section 1205.2(h) and (i) of the act, amended or
    14  added November 23, 1999 (P.L.529, No.48) and July 13, 2005
    15  (P.L.226, No.46), are amended to read:
    16     Section 1205.2.  Program of Continuing Professional
    17  Education.--* * *
    18     (h)  The department shall provide the following information
    19  to professional educators and school entities:
    20     (1)  Notice of the number of credits or hours needed for a
    21  professional educator to comply with this section, as of the
    22  date on which such notice is given. Such notice shall be
    23  provided no later twelve (12) months prior to the end of a
    24  professional educator's five-year compliance period. For
    25  professional educators who have not completed sufficient credits
    26  or hours to comply with this section, such notice shall be
    27  provided in writing and mailed to the most recent address on
    28  record with the department. For professional educators who have
    29  completed sufficient credits or hours to comply with this
    30  section, such notice shall be provided by electronic means,
    20070H0842B2347                  - 9 -     

     1  which shall include a notation on the electronic system
     2  maintained by the department pursuant to subsection (g)
     3  affirming that the professional educator has completed
     4  sufficient credits or hours to comply with this section.
     5     (2)  Reasonable access to reports and records relating to a
     6  professional educator's continuing professional education.
     7     (3)  Notice of inactive certification requested by a
     8  professional educator.
     9     (4)  Notice of inactive certification due to failure of the
    10  professional educator to meet the requirements of this section,
    11  whether or not the individual is employed by a school entity.
    12  The notice shall be provided no later than thirty-one (31) days
    13  prior to the date on which a professional educator's certificate
    14  is placed in inactive status, provided, that the department may
    15  only place a professional educator's certificate in inactive
    16  status between June 30 and July 31.
    17     (5)  Notice of reinstatement.
    18     * * *
    19     (i)  The Secretary of Education shall provide an educator
    20  with the opportunity to appeal any determination that the
    21  educator's certification is inactive pursuant to 2 Pa.C.S. Chs.
    22  5 (relating to practice and procedure) and 7 (relating to
    23  judicial review). If the secretary determines that an educator's
    24  certificate is inactive under this subsection, the effective
    25  date of the determination shall be between June 30 and July 31.
    26     * * *
    27     Section 7.  The act is amended by adding sections to read:
    28     Section 1205.5.  Continuing Professional Education for School
    29  or System Leaders.--(a)  (1)  Beginning January 1, 2008, every
    30  school or system leader shall meet the continuing professional
    20070H0842B2347                 - 10 -     

     1  education requirements of section 1205.2 through participation
     2  in programs approved in accordance with this section.
     3     (2)  For any school or system leader who serves in both
     4  administrative and nonadministrative positions during a
     5  compliance period as defined in section 1205.2, the school or
     6  system leader's continuing professional education requirements
     7  shall be earned in programs approved in accordance with this
     8  section in no less than the same proportion as the proportion of
     9  the compliance period during which the school or system leader
    10  served on an administrative certificate or letter of
    11  eligibility.
    12     (b)  For the compliance period in effect on January 1, 2008,
    13  this section shall only apply to any credits or hours needed to
    14  satisfy the unmet requirements of the current compliance period.
    15     (c)  (1)  The Department of Education shall design and offer
    16  continuing professional education programs at no cost to school
    17  or system leaders who are required by this section to
    18  participate and at no cost to their employer school entities.
    19     (2)  In the event that school or system leaders are unable to
    20  access these programs because all available slots are filled,
    21  the school or system leader may request and shall be granted
    22  upon review by the department an extension of the compliance
    23  period.
    24     (d)  The Department of Education shall approve other
    25  providers to offer induction and continuing professional
    26  education programs for school or system leaders and shall
    27  annually publish a list of approved providers.
    28     (e)  All programs offered or approved by the Department of
    29  Education under this section shall address the Pennsylvania
    30  school leadership standards pursuant to section 1217.
    20070H0842B2347                 - 11 -     

     1     (f)  The Secretary of Education may adopt standards as
     2  necessary to implement this section.
     3     (g)  For the purpose of this section, the term "school or
     4  system leader" shall mean an individual who serves on a
     5  certificate as a principal, vice principal, assistant principal,
     6  superintendent, assistant superintendent, intermediate unit
     7  executive director, assistant intermediate unit executive
     8  director or director of an area vocational-technical school.
     9     Section 1217.  Pennsylvania School Leadership Standards.--(a)
    10  Programs provided under section 1205.5(c) and (d) to prepare
    11  school or system leaders and for purposes of issuing
    12  administrator certificates or letters of eligibility and
    13  approved programs for the induction and continuing professional
    14  education of school or system leaders shall address:
    15     (1)  The following core standards:
    16     (i)  The knowledge and skills to think and plan strategically
    17  to create an organizational vision around personalized student
    18  success.
    19     (ii)  An understanding of standards-based systems theory and
    20  design and the ability to transfer that knowledge to the school
    21  or system leader's job as the architect of standards-based
    22  reform in the school.
    23     (iii)  The ability to access and use appropriate data to
    24  inform decision-making at all levels of the system.
    25     (2)  The following corollary standards:
    26     (i)  Creating a culture of teaching and learning with an
    27  emphasis on learning.
    28     (ii)  Managing resources for effective results.
    29     (iii)  Collaborating, communicating, engaging and empowering
    30  others inside and outside of the organization to pursue
    20070H0842B2347                 - 12 -     

     1  excellence in learning.
     2     (iv)  Operating in a fair and equitable manner with personal
     3  and professional integrity.
     4     (v)  Advocating for children and public education in the
     5  larger political, social, economic, legal and cultural context.
     6     (vi)  Supporting professional growth of self and others
     7  through practice and inquiry.
     8     (b)  The State Board of Education may promulgate regulations
     9  to carry out the provisions of this section.
    10     (c)  For the purpose of this section, the term "school or
    11  system leader" shall mean an individual who serves on a
    12  certificate as a principal, vice principal, assistant principal,
    13  superintendent, assistant superintendent, intermediate unit
    14  executive director, assistant intermediate unit executive
    15  director or director of an area vocational-technical school.
    16     Section 8.  Section 1337.1(d) of the act, added May 10, 2000
    17  (P.L.44, No.16), is amended and the section is amended by adding
    18  a subsection to read:
    19     Section 1337.1.  School Lunch and Breakfast Reimbursement.--*
    20  * *
    21     (c.1)  (1)  In order to promote initiatives regarding child
    22  health and nutrition, the department shall establish a School
    23  Nutrition Incentive Program. The program shall provide a
    24  supplemental school lunch and breakfast reimbursement to any
    25  school in a local education agency that has adopted and
    26  implemented the nutritional guidelines for food and beverages
    27  available on each school campus published by the department
    28  pursuant to section 1422.3(5).
    29     (2)  To qualify, the local wellness policy adopted by the
    30  local education agency pursuant to section 1422.1 must indicate
    20070H0842B2347                 - 13 -     

     1  adoption of such guidelines.
     2     (3)  For the 2007-2008 school year and each school year
     3  thereafter, supplemental reimbursement shall be provided to
     4  schools in qualifying local education agencies as follows:
     5     (i)  Each school that offers the school lunch program under
     6  subsection (a) shall receive an additional reimbursement of one
     7  cent (1¢) per lunch served, exclusive of any additional
     8  supplemental reimbursement under subclause (iii) or (iv).
     9     (ii)  Each school that offers the school breakfast program
    10  under subsection (b) shall receive an additional reimbursement
    11  of one cent (1¢) per breakfast served, exclusive of any
    12  additional supplemental reimbursement under subclause (iii) or
    13  (iv).
    14     (iii)  Each school that offers both a school lunch program
    15  under subsection (a) and a school breakfast program under
    16  subsection (b) that serves breakfast to less than or equal to
    17  twenty per centum (20%) of its student enrollment shall receive
    18  an additional reimbursement of two cents (2¢) per lunch served.
    19     (iv)  Each school that offers both a school lunch program
    20  under subsection (a) and a school breakfast program under
    21  subsection (b) that serves breakfast to more than twenty per
    22  centum (20%) of its student enrollment shall receive an
    23  additional reimbursement of three cents (3¢) per lunch served.
    24     (d)  For the purposes of this section, the following terms
    25  shall have the following meanings:
    26     "School" shall have the same meaning as given to that term in
    27  7 CFR 210.2 (relating to definitions).
    28     "School lunch program" shall have the same meaning as given
    29  to [that term] the term "National School Lunch Program" in 7 CFR
    30  210.2 (relating to definitions).
    20070H0842B2347                 - 14 -     

     1     "School breakfast program" shall have the same meaning as
     2  given to that term in 7 CFR [210.2 (relating to definitions).]
     3  Pt. 220 (relating to School Breakfast Program).
     4     Section 9.  Sections 1422.3 and 1512-C(g) of the act, added
     5  July 11, 2006 (P.L.1092, No.114), are amended to read:
     6     Section 1422.3.  Duties of Department of Education.--The
     7  Department of Education shall, in order to promote initiatives
     8  regarding child health, nutrition and physical education:
     9     (1)  To every extent possible, include programs related to
    10  child health, nutrition and physical education as part of the
    11  continuing professional education courses, programs, activities
    12  or learning experiences required under section 1205.2(f).
    13     (2)  Collaborate with the Department of Health to apply for
    14  Federal funds related to coordinated school health funding to
    15  enhance initiatives regarding child health, nutrition, physical
    16  education, local wellness policies and advisory health councils.
    17     (3)  Establish a clearinghouse of wellness policies and
    18  information regarding child health, nutrition and physical
    19  education submitted to the department by local education
    20  agencies pursuant to section 1422.1(c). Such information shall
    21  be made available on the department's Internet website.
    22     (4)  To every extent possible, maintain information related
    23  to teaching about nutrition and obesity, which information shall
    24  include concepts of healthy eating, including nutrient density
    25  and portion control, and the physical, psychological and
    26  nutritional causes of obesity. Such information shall be made
    27  available on the department's Internet website.
    28     (5)  Publish recommended nutritional guidelines for food and
    29  beverages sold in schools on the department's Internet website
    30  on or after the effective date of this clause.
    20070H0842B2347                 - 15 -     

     1  Section 1512-C.  Educational Assistance Program.
     2     * * *
     3     (g)  Educational assistance funding.--
     4         (1)  During the 2003-2004, 2004-2005, 2005-2006 [and],
     5     2006-2007 and 2007-2008 school years, the department shall
     6     provide each eligible school entity with educational
     7     assistance funding calculated by:
     8             (i)  Dividing the number of Pennsylvania System of
     9         School Assessment tests administered in the eligible
    10         school entity on which students scored below proficient
    11         in reading or mathematics by the total number of
    12         Pennsylvania System of School Assessment tests
    13         administered in the eligible school entity in reading and
    14         mathematics during the 2002-2003 school year.
    15             (ii)  Multiplying the quotient from subparagraph (i)
    16         by the average daily membership of the eligible school
    17         entity during the 2002-2003 school year.
    18             (iii)  Multiplying the product from subparagraph (ii)
    19         by the dollar value of funds appropriated to the
    20         Department of Education for the Educational Assistance
    21         Program in the 2004-2005 fiscal year.
    22             (iv)  Dividing the product from subparagraph (iii) by
    23         the sum of the products of subparagraph (ii) for all
    24         eligible school entities that qualify for grant funds
    25         under this paragraph.
    26         (1.1)  During the 2005-2006 [and], 2006-2007 and 2007-
    27     2008 school years, the department shall provide each school
    28     entity with at least one school that has failed to achieve
    29     its 2005 mathematics proficiency target or its 2005 reading
    30     proficiency target with educational assistance funding for
    20070H0842B2347                 - 16 -     

     1     the support of tutoring services to eligible students
     2     enrolled in seventh through twelfth grades. Such funding
     3     shall be calculated as follows:
     4             (i)  Dividing the number of Pennsylvania System of
     5         School Assessment tests administered in the eligible
     6         school entity to eleventh grade students on which such
     7         students scored below the 2005 reading or mathematics
     8         proficiency target by the total number of Pennsylvania
     9         System of School Assessment tests administered in the
    10         eligible school entity to eleventh grade students in
    11         reading and mathematics during the 2003-2004 school year.
    12             (ii)  Multiplying the quotient from subparagraph (i)
    13         by the average daily membership of the eligible school
    14         entity during the 2004-2005 school year.
    15             (iii)  Multiplying the product from subparagraph (ii)
    16         by the difference between the dollar value of funds
    17         appropriated to the department for the educational
    18         assistance program in the 2004-2005 fiscal year and the
    19         dollar value of funds appropriated to the department for
    20         the educational assistance program in the [2006-2007]
    21         2007-2008 fiscal year.
    22             (iv)  Dividing the product from subparagraph (iii) by
    23         the sum of the products of subparagraph (ii) for all
    24         eligible school entities that qualify for grant funds
    25         under this paragraph.
    26         (2)  The amount of educational assistance funding
    27     provided under this article shall be limited to funds
    28     appropriated for this purpose.
    29     * * *
    30     Section 10.  The heading of Article XV-D of the act, added
    20070H0842B2347                 - 17 -     

     1  December 23, 2003 (P.L.304, No.48), is amended to read:
     2                           ARTICLE XV-D.
     3           [HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM.]
     4                      EARLY LEARNING PROGRAMS
     5          (a)  Head Start Supplemental Assistance Program
     6     Section 11.  Section 1501-D of the act, amended or added
     7  December 23, 2003 (P.L.304, No.48) and July 13, 2005 (P.L.226,
     8  No.46), is amended to read:
     9  Section 1501-D.  Definitions.
    10     The following words and phrases when used in this [article]
    11  subarticle shall have the meanings given to them in this section
    12  unless the context clearly indicates otherwise:
    13     "Department."  The Department of Education of the
    14  Commonwealth.
    15     "Extended day services."  Head Start and child-care services
    16  provided to children eligible for Head Start by a Head Start
    17  provider or through a collaborative agreement between a Head
    18  Start provider and a licensed child-care center, or a registered
    19  family or group day-care home for those hours and days beyond
    20  the hours funded through the Federal Head Start Program.
    21     "Head Start."  A program funded under the Federal Head Start
    22  Act established by the Omnibus Budget Reconciliation Act of 1981
    23  (Public Law 97-35, 95 Stat. 357) and carried out by a Head Start
    24  agency or delegate agency that provides ongoing comprehensive
    25  child development services.
    26     "Program."  The Head Start Supplemental Assistance Program
    27  established in section 1502-D.
    28     "School entity."  A school district, joint school district,
    29  independent school or an intermediate unit.
    30     Section 12.  Sections 1504-D, 1505-D and 1506-D of the act,
    20070H0842B2347                 - 18 -     

     1  added December 23, 2003 (P.L.304, No.48), are amended to read:
     2  Section 1504-D.  Annual report.
     3     The department shall compile an annual report on the program
     4  for submission to the Governor, the chairmen of the
     5  Appropriations Committee and the Education Committee of the
     6  Senate and the chairmen of the Appropriations Committee and
     7  Education Committee of the House of Representatives. The report
     8  shall include:
     9         (1)  The number of eligible children served by Head Start
    10     as of [the effective date of this article] December 23, 2003.
    11         (2)  The number of eligible children served by the
    12     program during the 2005-2006 school year [that begins one
    13     year after the effective date of this article] and each
    14     school year thereafter.
    15         (3)  The number of extended day programs and the number
    16     of eligible children enrolled in extended day programs as of
    17     [the effective date of this article] December 23, 2003.
    18         (4)  The number of extended day programs and the number
    19     of eligible children enrolled in extended day programs during
    20     the 2005-2006 school year [that begins one year after the
    21     effective date of this article] and each school year
    22     thereafter.
    23         (5)  A summary of the types of activities funded under
    24     the program.
    25  Section 1505-D.  Head Start expansion.
    26     (a)  General rule.--The Department of Public Welfare shall[,
    27  within 90 days of the effective date of this article,]
    28  promulgate regulations necessary to assure eligibility for the
    29  child care subsidy for children enrolled in Head Start whose
    30  parents need extended hours of Head Start services in order to
    20070H0842B2347                 - 19 -     

     1  work. During the time period of the child's enrollment in Head
     2  Start, the child shall remain eligible for the child care
     3  subsidy. Regulations promulgated under this section shall permit
     4  the use of child care subsidy funds to support full-day, full-
     5  year opportunities for Head Start participants.
     6     (b)  Final-omitted regulations.--The Department of Public
     7  Welfare, in adopting such revised regulations, shall follow the
     8  procedures set forth in the act of July 31, 1968 (P.L.769,
     9  No.240), referred to as the Commonwealth Documents Law, and the
    10  act of June 25, 1982 (P.L.633, No.181), known as the Regulatory
    11  Review Act, for the promulgation and review of final-omitted
    12  regulations.
    13  Section 1506-D.  Standards.
    14     The department may promulgate any standards necessary to
    15  administer and enforce this [article] subarticle.
    16     Section 13.  Article XV-D of the act is amended by adding a
    17  subarticle to read:
    18               (b)  Pennsylvania Pre-K Counts Program
    19  Section 1511-D.  Definitions.
    20     The following words and phrases when used in this subarticle
    21  shall have the meanings given to them in this section unless the
    22  context clearly indicates otherwise:
    23     "Approved provider."  An eligible provider that has been
    24  approved by the Department of Education to offer pre-
    25  kindergarten under this subarticle.
    26     "At-risk child."  A child who is at a risk of educational
    27  failure because of limited English proficiency, poverty,
    28  community factors, academic difficulties or economic
    29  disadvantage.
    30     "Department."  The Department of Education of the
    20070H0842B2347                 - 20 -     

     1  Commonwealth.
     2     "Eligible provider."  Any of the following entities, if the
     3  entity complies with all quality program standards established
     4  by the Department of Education:
     5         (1)  A school district.
     6         (2)  A Head Start program.
     7         (3)  A nursery school licensed under the act of January
     8     28, 1988 (P.L.24, No.11), known as the Private Academic
     9     Schools Act.
    10         (4)  A child day care center or a group day care home
    11     that has met or exceeded the standards of STAR 2 under the
    12     Keystone STARS quality rating system established by the
    13     Department of Public Welfare.
    14     "Eligible student."  A child who is at least three years of
    15  age and is younger than the entry age of kindergarten in the
    16  school district of residence.
    17     "Program."  The Pre-K Counts Program established under
    18  section 1512-D.
    19  Section 1512-D.  Establishment of program.
    20     To the extent that funds are appropriated by the General
    21  Assembly, the department shall establish the Pennsylvania Pre-K
    22  Counts Program as a competitive grant program to expand pre-
    23  kindergarten opportunities for eligible students.
    24  Section 1513-D.  Duties of department.
    25     The department shall have the following powers and duties:
    26         (1)  To promulgate regulations and establish guidelines
    27     and standards necessary to implement this subarticle. In
    28     promulgating the initial regulations, the department shall
    29     follow the procedures provided in the act of July 31, 1968
    30     (P.L.769, No.240), referred to as the Commonwealth Documents
    20070H0842B2347                 - 21 -     

     1     Law, and the act of June 25, 1982 (P.L.633, No.181), known as
     2     the Regulatory Review Act, for promulgation and review of
     3     final-omitted regulations. Subsequent regulations promulgated
     4     under this subarticle or amendments to the initial
     5     regulations shall not be in final-omitted form.
     6         (2)  To establish the process through which eligible
     7     providers may apply for grant funds, allowable and required
     8     grant uses and per-student funding levels and the criteria
     9     used to identify approved providers for grant funds.
    10         (3)  To identify one or more assessments to be used by
    11     approved providers, the cost of which shall be paid as part
    12     of an approved provider's grant award.
    13         (4)  To encourage the development and maintenance of
    14     community coordination and partnerships.
    15         (5)  To perform all other functions necessary to carry
    16     out the program, including the monitoring of approved
    17     providers.
    18         (6)  To enter into agreements with third-party entities,
    19     to include intermediate units, to carry out the provisions of
    20     this subarticle.
    21         (7)  To publish the process through which eligible
    22     providers may apply for grant funds, the criteria used to
    23     identify approved providers for grant funds and the per-
    24     student funding levels of approved providers, by county, on
    25     the department's Internet website and in the Pennsylvania
    26     Bulletin within 60 days of the effective date of this
    27     section.
    28  Section 1514-D.  Grant awards.
    29     The department shall award grants under this subarticle to
    30  the extent that funds are appropriated for the program by the
    20070H0842B2347                 - 22 -     

     1  General Assembly. The grants shall be awarded on a per-student
     2  basis for each eligible student served by an approved provider
     3  and shall not exceed the per-student cost of administering the
     4  approved provider's pre-kindergarten program. To the greatest
     5  extent possible, the department shall:
     6         (1)  Give priority in grant funding to approved providers
     7     serving the highest number or the highest percentage of at-
     8     risk eligible students.
     9         (2)  Give priority in grant funding to approved providers
    10     that received grant funds in the immediately preceding school
    11     year, have met the program standards and have demonstrated
    12     satisfactory implementation of the program.
    13         (3)  Ensure that grant funding is geographically
    14     dispersed to approved providers throughout this Commonwealth.
    15  Section 1515-D.  Duties of approved providers.
    16     (a)  General rule.--An approved provider that receives grant
    17  funds under this subarticle shall have the following duties:
    18         (1)  Maintain separate accounts in its budget to
    19     facilitate monitoring and auditing of the use of the grant
    20     funds. If the approved provider is a school district, the
    21     school district shall not place grant funds in a reserve
    22     account. In no case shall the approved provider use grant
    23     funds for administrative costs as defined by the department.
    24         (2)  Plan to provide no fewer than 180 days of pre-
    25     kindergarten over the course of the school year. A half-day
    26     program shall provide no fewer than two and one-half hours of
    27     instructional activities per day. A full-day program shall
    28     provide no fewer than five hours of instructional activities
    29     per day.
    30         (3)  Align the pre-kindergarten program's curriculum with
    20070H0842B2347                 - 23 -     

     1     early learning standards established by the department.
     2         (4)  Perform all other duties pursuant to applicable
     3     regulations and standards.
     4     (b)  Calculation of average daily membership.--An eligible
     5  student shall not be included in the average daily membership of
     6  an approved provider for the purpose of providing funding
     7  allocations pursuant to Article XXV.
     8  Section 1516-D.  Reporting.
     9     (a)  General rule.--No later than October 1, 2008, and
    10  October 1 of each year thereafter in which funding is
    11  appropriated for the purpose of providing grants to approved
    12  providers under this subarticle, the department shall submit a
    13  report to the chairman and minority chairman of the
    14  Appropriations Committee of the Senate, the chairman and
    15  minority chairman of the Appropriations Committee of the House
    16  of Representatives, the chairman and minority chairman of the
    17  Education Committee of the Senate and the chairman and minority
    18  chairman of the Education Committee of the House of
    19  Representatives summarizing the operation of the program for the
    20  immediately preceding fiscal year. The report shall include:
    21         (1)  A description of the operation of the program,
    22     including:
    23             (i)  The criteria used to determine the eligibility
    24         of a provider for funding under the program.
    25             (ii)  The criteria used to determine the amount of
    26         grant funds paid to approved providers.
    27             (iii)  A summary of the process used by eligible
    28         providers to apply for grant funds, including sample
    29         copies of all application forms, instructions, guidelines
    30         and deadlines.
    20070H0842B2347                 - 24 -     

     1         (2)  A summary of the total amount of grant funds paid to
     2     approved providers.
     3         (3)  A summary of the allowable uses of grant funds under
     4     the program.
     5         (4)  A description of the assessments used to measure the
     6     academic progress of eligible students served through the
     7     program.
     8         (5)  A listing by county of each eligible provider
     9     submitting a grant application and indicating whether the
    10     eligible provider received funding and the amount thereof.
    11         (6)  For each approved provider, a report by county
    12     indicating:
    13             (i)  Name.
    14             (ii)  Address.
    15             (iii)  The number of eligible students served through
    16         the program.
    17             (iv)  The use or uses of the grant funds.
    18             (v)  The assessment of academic progress of each
    19         eligible student served through the program.
    20             (vi)  Of the eligible students served through the
    21         program, the number who are three years of age and the
    22         number who are four years of age.
    23             (vii)  To the extent possible, the total number of
    24         students receiving pre-kindergarten services itemized to
    25         identify:
    26                 (A)  The number of students receiving services as
    27             a result of tuition paid by the parent or guardian.
    28                 (B)  The number of students receiving services
    29             through the program.
    30                 (C)  The number of students receiving services
    20070H0842B2347                 - 25 -     

     1             through the State Head Start Supplemental Assistance
     2             and Federal Head Start programs.
     3             (viii)  To the extent possible, a financial summary
     4         indicating the total expenditures of each approved
     5         provider and indicating as components of those
     6         expenditures, the total revenues received from the
     7         Commonwealth through early childhood programs
     8         administered by the Department of Public Welfare, the
     9         total revenues received from the Commonwealth under the
    10         program and the total revenues received from
    11         nonparticipating families with children enrolled in the
    12         program.
    13             (ix)  The enrollment goals as set forth in the grant
    14         application.
    15             (x)  To the extent possible, the number of eligible
    16         students served through the program who were funded
    17         through the subsidized day-care programs administered by
    18         the Department of Public Welfare and the number of
    19         eligible students served through the program who were
    20         funded through the Federal Head Start program or the
    21         State Head Start Supplemental Assistance program.
    22     (b)  Interim report.--No later than February 1, 2008, the
    23  department shall submit an interim report regarding the program
    24  to the chairman and minority chairman of the Appropriations
    25  Committee of the Senate, the chairman and minority chairman of
    26  the Appropriations Committee of the House of Representatives,
    27  the chairman and minority chairman of the Education Committee of
    28  the Senate and the chairman and minority chairman of the
    29  Education Committee of the House of Representatives summarizing
    30  the operation of the program for the 2007-2008 fiscal year. The
    20070H0842B2347                 - 26 -     

     1  interim report shall include the items listed in subsection
     2  (a)(1), (2), (3), (4), (5) and (6)(i), (ii), (iii), (iv), (vi)
     3  and (ix).
     4     Section 14.  The act is amended by adding a section to read:
     5     Section 1607.1.  Distressed School Districts and Student
     6  Attendance in Other Districts.--(a)  If a third class school
     7  district in which a public high school is not maintained
     8  operates and, for at least five consecutive years, has operated
     9  under a special board of control under section 692, has been
    10  placed on the education empowerment list under section 1703-B,
    11  has, with the approval of the secretary, curtailed its
    12  educational program by eliminating its high school, and has not
    13  assigned its high school pupils to another school district or
    14  school districts and provided adequate transportation in a
    15  manner pursuant to section 1607, the secretary shall have the
    16  following authority:
    17     (1)  To designate two or more school districts that shall
    18  accept on a tuition basis the high school students of a
    19  distressed school district, so long as a designated school
    20  district's border is no more than three miles from the border of
    21  the distressed school district. Such designation shall occur no
    22  later than fifteen (15) days after the effective date of this
    23  section. No designated school district shall be assigned more
    24  than one hundred sixty-five (165) students from the distressed
    25  school district.
    26     (2)  To establish a process that a distressed school district
    27  shall use to reassign its high school students to the school
    28  districts designated under paragraph (1).
    29     (3)  To establish the per-pupil tuition rate that a school
    30  district designated under paragraph (1) shall receive for each
    20070H0842B2347                 - 27 -     

     1  reassigned student in a regular or special education program.
     2  For the 2007-2008 school year, the tuition rate shall be the
     3  2006-2007 high school tuition charge of each of the school
     4  districts designated under paragraph (1). For the 2008-2009
     5  school year and each school year thereafter, the tuition rate
     6  established under this paragraph may not exceed the tuition rate
     7  established for the 2007-2008 school year multiplied by the
     8  greater of either two per centum (2%) or the percentage increase
     9  in total budgeted revenues available to a distressed school
    10  district.
    11     (b)  A school district designated under subsection (a)(1)
    12  shall provide transportation to reassigned students to its high
    13  school and shall be eligible for transportation reimbursement in
    14  a manner consistent with section 2541.
    15     (c)  The secretary shall publish the following on the
    16  Department of Education's Internet website no later than August
    17  1, 2007, and August 1 of each year thereafter and in the
    18  Pennsylvania Bulletin no later than September 30, 2007, and
    19  September 30 of each year thereafter:
    20     (1)  The names of the school districts designated under
    21  subsection (a)(1).
    22     (2)  The process established under subsection (a)(2).
    23     (3)  The tuition rate established under subsection (a)(3).
    24     (d)  Notwithstanding any other provision of law, regulation,
    25  guideline, directive, decision or agreement to the contrary, any
    26  school district that is designated under subsection (a)(1) may
    27  not be required to include the students in its public school
    28  enrollment report for the purposes of determining an
    29  interscholastic sports classification by a private entity that
    30  is organized under the laws of this Commonwealth to administer
    20070H0842B2347                 - 28 -     

     1  interscholastic athletics.
     2     (e)  A student assigned to a school district designated under
     3  subsection (a)(1) shall be included in the average daily
     4  membership of the student's school district of residence for the
     5  purpose of providing basic education funding allocations and
     6  special education funding payments pursuant to Article XXV.
     7     (f)  No later than February 1, 2008, and February 1 of each
     8  year thereafter, the Legislative Budget and Finance Committee
     9  shall submit a report to the chairman and minority chairman of
    10  the Appropriations and Education Committees of the Senate and to
    11  the chairman and minority chairman of the Appropriations and
    12  Education Committees of the House of Representatives summarizing
    13  the financial and academic status of a distressed school
    14  district under this section and including an audit of its
    15  accounts for the immediately preceding school year.
    16     (g)  For the 2007-2008 and 2008-2009 school years, a school
    17  district designated under subsection (a)(1) shall receive an
    18  additional per-pupil sum of five hundred dollars ($500) for
    19  students reassigned pursuant to this section. These additional
    20  funds shall be used for transition services to students,
    21  including, but not limited to, student mentoring, tutoring,
    22  employe in-service programs designed to assist transitioning
    23  students and security expenditures.
    24     (h)  (1)  No later than October 1, 2007, the secretary shall
    25  establish an Education Advisory Committee which shall provide
    26  semi-annual reports to the secretary. Such reports to the
    27  secretary may include, but are not limited to:
    28     (i)  An evaluation of the transition of students that have
    29  been assigned to a school district designated under subsection
    30  (a)(1).
    20070H0842B2347                 - 29 -     

     1     (ii)  Recommendations for changes to the process established
     2  under subsection (a)(2).
     3     (iii)  Recommendations for improving education opportunities
     4  for students of a distressed school district under this section.
     5     (2)  The secretary shall provide the Education Advisory
     6  Committee a written response to the semi-annual report required
     7  under this paragraph.
     8     (3)  The Education Advisory Committee shall consist of
     9  members selected by the secretary, including:
    10     (i)  A representative of each school district designated
    11  under subsection (a)(1) recommended by the board of school
    12  directors of the designated school district.
    13     (ii)  A member of the board of control of the distressed
    14  school district.
    15     (iii)  An administrator from each school district designated
    16  under subsection (a)(1) and from the distressed school district.
    17     (iv)  A teacher from each school district designated under
    18  subsection (a)(1) and from the distressed school district.
    19     (v)  An elected official representing voters in each school
    20  district designated under subsection (a)(1) and the distressed
    21  school district.
    22     (vi)  Three residents of each of the school districts
    23  designated under subsection (a)(1).
    24     (vii)  Three residents of the distressed school district.
    25     (viii)  An employe of the Department of Education, who shall
    26  not be a current member of the board of control.
    27     (ix)  A representative of the intermediate unit in which the
    28  school districts designated under subsection (a)(1) and the
    29  distressed school district are located.
    30     Section 15.  Section 1603-B(d)(2) of the act, amended July
    20070H0842B2347                 - 30 -     

     1  11, 2006 (P.L.1092, No.114), is amended to read:
     2  Section 1603-B.  Responsibilities of department and State Board
     3                     of Education.
     4     * * *
     5     (d)  Supplemental grants.--
     6         * * *
     7         (2)  (i)  The total amount of grant funds available under
     8         this subsection shall equal [15%] 22% of the total amount
     9         of funds appropriated for concurrent enrollment programs
    10         under this article. Where funds available for
    11         supplemental grants are insufficient to fund the full
    12         amount of all supplemental grants under this subsection,
    13         supplemental grant amounts shall be reduced on a pro rata
    14         basis.
    15             (ii)  Where the total amount of supplemental grants
    16         provided on behalf of low-income concurrent students is
    17         less than the total amount of grant funds available under
    18         this paragraph, any unexpended grant funds shall be made
    19         available for other concurrent students.
    20     * * *
    21     Section 16.  The act is amended by adding a section to read:
    22     Section 1704.1-B.  Superintendent Power to Recommend
    23  Dismissal.--(a)  The superintendent of a school district shall
    24  have the authority to recommend to the board of school directors
    25  dismissal of a management employe for unsatisfactory performance
    26  or wilful misconduct.
    27     (b)  The board of school directors shall consider a
    28  recommendation of the superintendent for dismissal of a
    29  management employe. A recommendation for dismissal of a
    30  management employe shall be subject to the provisions of section
    20070H0842B2347                 - 31 -     

     1  508.
     2     (c)  The action of the board of school directors in
     3  dismissing an employe under this article shall not be deemed an
     4  adjudication under 2 Pa.C.S. Ch. 5 Subch. A (relating to
     5  practice and procedure of Commonwealth agencies) nor shall it be
     6  subject to a hearing under section 514, 1125.1 or 1122.
     7     (d)  For the purposes of this section:
     8     (i)  The term "management employe" shall mean an employe who
     9  holds a management position above the level of first level
    10  supervisor. This term shall not include a principal, assistant
    11  principal, vice principal or any position requiring a
    12  certificate from the Secretary of Education.
    13     (ii)  The term "school district" shall mean a school district
    14  that has been designated by the Secretary of Education as a
    15  Commonwealth partnership school district.
    16     (e)  This section shall expire December 31, 2009.
    17     Section 17.  Section 1705-B(h)(4) of the act, amended July
    18  11, 2006 (P.L.1092, No.114), is amended to read:
    19     Section 1705-B.  Education Empowerment Districts.--* * *
    20     (h)  * * *
    21     (4)  The department may utilize up to [$3,500,000] $4,500,000
    22  of undistributed funds not expended, encumbered or committed
    23  from appropriations for grants and subsidies made to the
    24  department to assist school districts certified as an education
    25  empowerment district under paragraph (3). There is hereby
    26  established a restricted account from which payments under this
    27  paragraph shall be paid. Funds shall be transferred by the
    28  Secretary of the Budget to the restricted account to the extent
    29  necessary to make payments under this paragraph. Funds in the
    30  restricted account are hereby appropriated to carry out the
    20070H0842B2347                 - 32 -     

     1  purposes of this paragraph. The subsidy payment from this
     2  account shall be utilized to supplement the operational budget
     3  of the eligible school districts. This paragraph shall apply to
     4  fiscal years 2000-2001, 2001-2002, 2002-2003, 2003-2004, 2004-
     5  2005, 2005-2006 [and], 2006-2007 and 2007-2008 and shall expire
     6  June 30, [2007] 2008.
     7     Section 18.  Section 1707-B(b) of the act, amended November
     8  22, 2000 (P.L.672, No.91), is amended to read:
     9     Section 1707-B.  Boards of Control for Certain School
    10  Districts.--* * *
    11     (b)  (1)  A board of control in an education empowerment
    12  district certified under this section shall consist of [five
    13  (5)] seven (7) residents of the school district [who], five (5)
    14  of whom shall be appointed by the mayor of the coterminous city
    15  within fourteen (14) days of the certification of the school
    16  district as an education empowerment district[. Members of the
    17  board of control shall serve at the pleasure of the mayor.] and
    18  two (2) of whom shall be elected by and from the members of the
    19  elected board of school directors.
    20     (2)  The members of the board of control that are elected by
    21  and from the members of the elected board of school directors
    22  shall serve on the board of control for a period of time
    23  concurrent with their terms of office as members of the elected
    24  board of school directors and are not subject to removal by the
    25  mayor.
    26     (3)  The members of the board of control that are not elected
    27  by and from the members of the elected board of school directors
    28  shall serve at the pleasure of the mayor.
    29     * * *
    30     Section 19.  Section 1905-D(d) of the act, added July 11,
    20070H0842B2347                 - 33 -     

     1  2006 (P.L.1092, No.114), is amended to read:
     2     Section 1905-D.  State Funding.--* * *
     3     (d)  Grants from funds appropriated to community education
     4  councils in any fiscal year shall be paid in an amount no less
     5  than and in the same manner as payments in fiscal year [2005-
     6  2006] 2006-2007. If a community education council ceases to
     7  exist, the funds may be distributed to the remaining community
     8  education councils on a pro rata basis.
     9     Section 20.  The act is amended by adding an article to read:
    10                           ARTICLE XIX-F
    11               PENNSYLVANIA TECHNICAL COLLEGE PROGRAM
    12  Section 1901-F.  Definitions.
    13     The following words and phrases when used in this article
    14  shall have the meanings given to them in this section unless the
    15  context clearly indicates otherwise:
    16     "Department."  The Department of Education of the
    17  Commonwealth.
    18     "Educationally underserved area."  As defined in Article XIX-
    19  D.
    20     "Eligible applicant."  Any of the following:
    21         (1)  An institution of higher education.
    22         (2)  An institution of higher education in partnership
    23     with one or more of the following:
    24             (i)  Another institution of higher education.
    25             (ii)  An area vocational-technical school or ATVS, as
    26         defined under 22 Pa. Code § 4.3 (relating to
    27         definitions).
    28             (iii)  A community education council, as defined
    29         under section 1901-D.
    30             (iv)  A private licensed school as the term is
    20070H0842B2347                 - 34 -     

     1         defined under section 2 of the act of December 15, 1986
     2         (P.L.1585, No.174), known as the Private Licensed Schools
     3         Act, that is authorized to confer the degree of Associate
     4         in Specialized Technology or Associate in Specialized
     5         Business and is accredited by the Accrediting Commission
     6         of Career Schools and Colleges of Technology or the
     7         Accrediting Council for Independent Colleges and Schools.
     8     "Institution of higher education."  Any of the following:
     9         (1)  An institution of the State System of Higher
    10     Education created under Article XX-A.
    11         (2)  A community college created under Article XIX-A.
    12         (3)  The Pennsylvania State University, the University of
    13     Pittsburgh, Temple University, Lincoln University and their
    14     branch campuses.
    15         (4)  An institution as the term is defined under 24
    16     Pa.C.S. § 6501(a) (relating to applicability of chapter) that
    17     is accredited by the Middle States Commission on Higher
    18     Education. The term does not include an institution which is
    19     determined by the Department of Education to be a theological
    20     seminary or school of theology or a sectarian and
    21     denominational institution.
    22     "Lead sponsor."  An institution of higher education which as
    23  an eligible applicant receives approval to establish a technical
    24  college program.
    25     "Program."  The Pennsylvania Technical College Program
    26  approved under this article.
    27  Section 1902-F.  Pennsylvania Technical College Program.
    28     To the extent that funds are appropriated by the General
    29  Assembly, the department shall establish the Pennsylvania
    30  Technical College Program as a competitive grant program to
    20070H0842B2347                 - 35 -     

     1  prepare students in educationally underserved areas for high-
     2  demand occupations that require a postsecondary certificate or
     3  associate degree.
     4  Section 1903-F.  Duties of department.
     5     The department shall have the following powers and duties:
     6         (1)  Establish guidelines and standards necessary to
     7     implement this article. Such guidelines shall include the
     8     identification of approved fields of study and a process for
     9     considering requests for approval of fields of study that are
    10     not listed and that meet criteria established by the
    11     department, eligibility requirements, designated
    12     educationally underserved areas, a description of program
    13     requirements and limitations and funding information.
    14         (2)  Establish the process through which eligible
    15     applicants may apply for grant funds including the
    16     identification of required and allowable grant uses, the
    17     criteria used to approve programs, annual limits on student
    18     tuition and fees and limits on enrollment eligible for State
    19     funding.
    20         (3)  Perform all other functions necessary to carry out
    21     this article, including the monitoring and reporting of
    22     approved programs and student outcomes.
    23  Section 1904-F.  Program requirements.
    24     Grant recipients shall do all of the following:
    25         (1)  Award, through the lead sponsor, credit-bearing
    26     certificates and associate degrees. No other degree or
    27     credential shall be awarded under the program. Associate
    28     degrees awarded through the program shall be limited to one
    29     of the following:
    30             (i)  An associate of arts degree.
    20070H0842B2347                 - 36 -     

     1             (ii)  An associate of sciences degree.
     2             (iii)  An associate of applied sciences degree, if an
     3         articulation agreement exists to enable the bearer of the
     4         associate of applied sciences degree to transfer the
     5         degree for full credit to an institution of higher
     6         education in pursuit of a bachelor's degree.
     7         (2)  Offer a program of study designed to be completed in
     8     no more than two years for a full-time student or an
     9     equivalent period for a part-time student. Each course
    10     included in an approved program of study shall be offered for
    11     college credit.
    12         (3)  Establish enrollment standards that include, but are
    13     not limited to, limiting enrollment to persons who have
    14     earned a high school diploma or equivalent and have been
    15     residents of this Commonwealth for at least 18 months prior
    16     to enrollment.
    17         (4)  Establish financial aid policies providing that a
    18     student enrolled in the program shall be eligible for
    19     publicly funded financial aid opportunities in the same
    20     manner as students enrolled in the lead sponsor institution.
    21  Section 1905-F.  Grant awards.
    22     (a)  General rule.--The department shall award grants to a
    23  lead sponsor under this article to the extent that funds are
    24  appropriated for the Pennsylvania Technical College Program by
    25  the General Assembly, as follows:
    26         (1)  Operating grants that are awarded on a per-student
    27     basis. The department shall be responsible for the allocation
    28     and distribution of State funding among programs; provided,
    29     that the department shall:
    30             (i)  Give priority in grant funding to programs
    20070H0842B2347                 - 37 -     

     1         providing access in educationally underserved areas that
     2         are seeking renewal of grant funding and that have met
     3         the program standards and demonstrated satisfactory
     4         implementation of the program.
     5             (ii)  To the greatest extent possible, ensure that
     6         grant funding is geographically dispersed to approved
     7         programs located in educationally underserved areas of
     8         the Commonwealth.
     9         (2)  Equipment grants that are awarded pursuant to
    10     guidelines and processes established by the department.
    11     (b)  Restriction.--Payments made under this section shall not
    12  be used for construction or purchase of space.
    13  Section 1906-F.  Promulgation of standards.
    14     Within 30 days of the effective date of this section, the
    15  department shall promulgate interim standards necessary to
    16  ensure the establishment of quality programs under this article
    17  and which shall be published in the Pennsylvania Bulletin. The
    18  interim standards shall not be subject to review under the act
    19  of June 25, 1982 (P.L.633, No.181), known as the Regulatory
    20  Review Act, nor shall they be subject to sections 201, 202, 203,
    21  204 and 205 of the act of July 31, 1968 (P.L.769, No.240),
    22  referred to as the Commonwealth Documents Law, or section 204 of
    23  the act of October 15, 1980 (P.L.950, No.164), known as the
    24  Commonwealth Attorneys Act. Within one year of publication of
    25  the interim standards in the Pennsylvania Bulletin, the
    26  department shall promulgate proposed standards. The interim
    27  standards shall remain in effect until the effective date of the
    28  final standards.
    29  Section 1907-F.  Annual reports.
    30     No later than October 1, 2008, and October 1 of each year
    20070H0842B2347                 - 38 -     

     1  thereafter in which funding is appropriated for the purpose of
     2  providing grants under this article, the department shall submit
     3  a report to the chairman and minority chairman of the
     4  Appropriations Committee of the Senate, the chairman and
     5  minority chairman of the Appropriations Committee of the House
     6  of Representatives, the chairman and minority chairman of the
     7  Education Committee of the Senate and the chairman and minority
     8  chairman of the Education Committee of the House of
     9  Representatives summarizing the operations and successes of the
    10  Pennsylvania Technical College Program during the prior fiscal
    11  year. The report shall include:
    12         (1)  A description of the operations of the Pennsylvania
    13     Technical College Program including:
    14             (i)  The criteria used to evaluate the applications
    15         for funding under the grant program.
    16             (ii)  The criteria used to identify fields of study,
    17         educationally underserved areas and annual tuition rates.
    18         (2)  A list of the total amount of grant funds paid to
    19     lead sponsors by higher education institutions, approved
    20     programs, fields of study, geographic areas served by the
    21     programs and fiscal year.
    22         (3)  A summary of financial information including
    23     revenues and expenditures by programs, including all sources
    24     of funding for each program, such as tuition, lead sponsor
    25     financial support and partnering entity support.
    26         (4)  A summary of programmatic information including
    27     approved programs, fields of study, educationally underserved
    28     areas participating, number of student enrollments, credits
    29     awarded, certificates awarded, degrees awarded and graduate
    30     placement information.
    20070H0842B2347                 - 39 -     

     1         (5)  A description of the evaluation process to measure
     2     the success of the Pennsylvania Technical College Program
     3     with respect to increasing access, improving opportunities
     4     and controlling costs. The process should include an
     5     identification of program goals and objectives and related
     6     measures and the results of implementation of the identified
     7     evaluation process.
     8     Section 21.  Section 2006-B(a) of the act, amended July 11,
     9  2006 (P.L.1092, No.114), is amended to read:
    10  Section 2006-B.  Limitations.
    11     (a)  Amount.--
    12         (1)  The total aggregate amount of all tax credits
    13     approved shall not exceed [$54,000,000] $67,000,000 in a
    14     fiscal year. No less than [$36,000,000] $44,666,667 of the
    15     total aggregate amount shall be used to provide tax credits
    16     for contributions from business firms to scholarship
    17     organizations. No less than [$18,000,000] $22,333,333 of the
    18     total aggregate amount shall be used to provide tax credits
    19     for contributions from business firms to educational
    20     improvement organizations.
    21         (2)  (i)  For the fiscal year 2004-2005 [and each fiscal
    22         year thereafter,], 2005-2006 and 2006-2007,  the total
    23         aggregate amount of all tax credits approved for
    24         contributions from business firms to pre-kindergarten
    25         scholarship programs shall not exceed $5,000,000 in a
    26         fiscal year.
    27             (ii)  For the fiscal year 2007-2008 and each fiscal
    28         year thereafter, the total aggregate amount of all tax
    29         credits approved for contributions from business firms to
    30         pre-kindergarten scholarship programs shall not exceed
    20070H0842B2347                 - 40 -     

     1         $8,000,000 in a fiscal year.
     2     * * *
     3     Section 22.  Article XXIII heading of the act is amended to
     4  read:
     5                           ARTICLE XXIII.
     6               FUNDING FOR PUBLIC [SCHOOL] LIBRARIES.
     7     Section 23.  The act is amended by adding a section to read:
     8     Section 2316.  State aid for certain public libraries.
     9  (a)  General rule.--Each library subject to the act of June 14,
    10  1961 (P.L.324, No.188), known as The Library Code, and that
    11  received a State aid allocation for fiscal year 2006-2007
    12  pursuant to The Library Code and complies with the standards
    13  contained in The Library Code and regulations promulgated
    14  thereunder relating to hours of operation, continuing
    15  professional development, collections expenditures and any other
    16  standards related to library operations as required under
    17  section 104 of The Library Code, shall be eligible for State aid
    18  in fiscal year 2007-2008.
    19     (b)  Formula.--State aid under this section shall consist of
    20  the following:
    21         (1)  an amount equal to the State aid allocation for
    22     fiscal year 2006-2007 pursuant to section 303.16 of The
    23     Library Code; and
    24         (2)  an equal distribution grant supplement to be
    25     provided to each local library, qualifying branch library and
    26     bookmobile. To determine the grant amount under this
    27     paragraph, $250,000 shall be divided by the total number of
    28     all local libraries, branch libraries and bookmobiles.
    29     (c)  Discretionary disbursement of unallocated funds.--After
    30  distribution of State aid to libraries under this section, any
    20070H0842B2347                 - 41 -     

     1  remaining unallocated funds may be distributed at the discretion
     2  of the State Librarian.
     3     Section 24.  Section 2502.13 of the act is amended by adding
     4  a subsection to read:
     5     Section 2502.13.  Small District Assistance.--* * *
     6     (m)  For the school year 2006-2007, the Commonwealth shall
     7  pay to each school district which has an average daily
     8  membership of one thousand five-hundred (1,500) or less and a
     9  market value/income aid ratio of six thousand ten-thousandths
    10  (0.6000) or greater an amount equal to thirty dollars ($30)
    11  multiplied by that district's average daily membership and by
    12  that district's market value/income aid ratio.
    13     Section 25.  The act is amended by adding a section to read:
    14     Section 2502.47.  Basic Education Funding for 2006-2007
    15  School Year.--For the 2006-2007 school year, the Commonwealth
    16  shall pay to each school district a basic education funding
    17  allocation which shall consist of the following:
    18     (1)  An amount equal to the basic education funding
    19  allocation for the 2005-2006 school year under sections 2502.13,
    20  2502.45 and 2504.4.
    21     (2)  If a school district has been declared a Commonwealth
    22  partnership school district under Article XVII-B, an amount
    23  equal to four million dollars ($4,000,000).
    24     (3)  A base supplement calculated as follows:
    25     (i)  If the school district's market value/income aid ratio
    26  is equal to or greater than seven thousand three hundred ninety-
    27  one ten-thousandths (.7391):
    28     (A)  Multiply the school district's 2007-2008 market
    29  value/income aid ratio by its 2006-2007 average daily
    30  membership.
    20070H0842B2347                 - 42 -     

     1     (B)  Multiply the product from clause (A) by five million
     2  nine hundred fifty thousand dollars ($5,950,000).
     3     (C)  Divide the product from clause (B) by the sum of the
     4  products of the 2007-2008 market value/income aid ratio
     5  multiplied by the 2006-2007 average daily membership for all
     6  qualifying school districts.
     7     (ii)  If the school district's 2007-2008 market value/income
     8  aid ratio is equal to or greater than six thousand six hundred
     9  fifteen ten-thousandths (.6615) and less than seven thousand
    10  three hundred ninety-one ten-thousandths (.7391):
    11     (A)  Multiply the school district's 2007-2008 market value/
    12  income aid ratio by its 2006-2007 average daily membership.
    13     (B)  Multiply the product from clause (A) by seventeen
    14  million five hundred twenty thousand dollars ($17,520,000).
    15     (C)  Divide the product from clause (B) by the sum of the
    16  products of the 2007-2008 market value/income aid ratio
    17  multiplied by the 2006-2007 average daily membership for all
    18  qualifying school districts.
    19     (iii)  If the school district's 2007-2008 market value/
    20  income aid ratio is equal to or greater than five thousand eight
    21  hundred fifty-six ten-thousandths (.5856) and less than six
    22  thousand six hundred fifteen ten-thousandths (.6615):
    23     (A)  Multiply the school district's 2007-2008 market
    24  value/income aid ratio by its 2006-2007 average daily
    25  membership.
    26     (B)  Multiply the product from clause (A) by seven million
    27  eight hundred thousand dollars ($7,800,000).
    28     (C)  Divide the product from clause (B) by the sum of the
    29  products of the 2007-2008 market value/income aid ratio
    30  multiplied by the 2006-2007 average daily membership for all
    20070H0842B2347                 - 43 -     

     1  qualifying school districts.
     2     (iv)  If the school district's 2007-2008 market value/income
     3  aid ratio is equal to or greater than four thousand one hundred
     4  ninety-five ten-thousandths (.4195) and less than five thousand
     5  eight hundred fifty-six ten-thousandths (.5856):
     6     (A)  Multiply the school district's 2007-2008 market value/
     7  income aid ratio by its 2006-2007 average daily membership.
     8     (B)  Multiply the product from clause (A) by eleven million
     9  four hundred thousand dollars ($11,400,000).
    10     (C)  Divide the product from clause (B) by the sum of the
    11  products of the 2007-2008 market value/income aid ratio
    12  multiplied by the 2006-2007 average daily membership for all
    13  qualifying school districts.
    14     (v)  If the school district's 2007-2008 market value/income
    15  aid ratio is less than four thousand one hundred ninety-five
    16  ten-thousandths (.4195):
    17     (A)  Multiply the school district's 2007-2008 market value/
    18  income aid ratio by its 2006-2007 average daily membership.
    19     (B)  Multiply the product from clause (A) by six million
    20  twenty-five thousand dollars ($6,025,000).
    21     (C)  Divide the product from clause (B) by the sum of the
    22  products of the 2007-2008 market value/income aid ratio
    23  multiplied by the 2006-2007 average daily membership for all
    24  qualifying school districts.
    25     (4)  A poverty supplement calculated for qualifying school
    26  districts as follows:
    27     (i)  For a school district to qualify for the poverty
    28  supplement:
    29     (A)  forty percent (40%) or more of the students enrolled in
    30  the school district on October 31, 2006, must have been eligible
    20070H0842B2347                 - 44 -     

     1  for free or reduced price meals under the school lunch program
     2  and the school district's 2007-2008 market value/income aid
     3  ratio must be at least four thousand five hundred ten-
     4  thousandths (.4500); or
     5     (B)  equal to or greater than thirty percent (30%) and fewer
     6  than forty percent (40%) of the students enrolled in the school
     7  district on October 31, 2006, must have been eligible for free
     8  or reduced price meals under the school lunch program and the
     9  school district's 2007-2008 market value/income aid ratio must
    10  be at least six thousand five hundred ten-thousandths (.6500).
    11     (ii)  The poverty supplement shall be calculated for
    12  qualifying school districts as follows:
    13     (A)  Multiply the school district's 2007-2008 market value/
    14  income aid ratio by its 2006-2007 average daily membership by
    15  the percent of students enrolled in the school district on
    16  October 31, 2006, who were eligible for free or reduced price
    17  meals under the school lunch program.
    18     (B)  Multiply the product from clause (A) by twenty-six
    19  million dollars ($26,000,000).
    20     (C)  Divide the product from clause (B) by the sum of the
    21  products of the 2007-2008 market value/income aid ratio
    22  multiplied by the 2006-2007 average daily membership multiplied
    23  by the percent of students enrolled in the school district on
    24  October 31, 2006, who were eligible for free or reduced price
    25  meals under the school lunch program for all qualifying school
    26  districts.
    27     (5)  A foundation supplement calculated for qualifying
    28  districts as follows:
    29     (i)  To qualify for the foundation supplement, a school
    30  district's 2005-2006 adjusted current expenditures per average
    20070H0842B2347                 - 45 -     

     1  daily membership must be less than the foundation target and its
     2  2005-2006 equalized millage must be greater than or equal to
     3  18.0. For the purpose of this subsection, the "foundation
     4  target" shall be one of the following:
     5     (A)  The 2003-2004 median current expenditures per average
     6  daily membership increased by three and nine-tenths percent
     7  (3.9%) and further increased by three and four-tenths percent
     8  (3.4%).
     9     (B)  For a school district where at least fifty percent (50%)
    10  of students enrolled in the school district on October 31, 2006,
    11  were eligible for free or reduced price meals under the school
    12  lunch program, the amount referenced under clause (A) increased
    13  by twenty percent (20%).
    14     (ii)  The foundation supplement shall be calculated for
    15  qualifying school districts as follows:
    16     (A)  Multiply the school district's 2007-2008 market
    17  value/income aid ratio by its 2006-2007 average daily
    18  membership.
    19     (B)  Multiply the product in clause (A) by the lesser of:
    20     (I)  five hundred dollars ($500), or if its 2007-2008 market
    21  value/income aid ratio is equal to or greater than seven
    22  thousand ten-thousandths (.7000), eight hundred fifty dollars
    23  ($850);
    24     (II)  the difference between the value of the foundation
    25  target and the school district's 2005-2006 adjusted current
    26  expenditures per average daily membership; or
    27     (III)  if the school district's 2005-2006 equalized millage
    28  is less than twenty-one and one-tenth (21.1), the product of the
    29  lesser of the amount in clause (B)(I) or (II) and the quotient
    30  of its 2005-2006 equalized millage divided by twenty-one and
    20070H0842B2347                 - 46 -     

     1  one-tenth (21.1).
     2     (C)  Multiply the product from clause (B) by forty million
     3  dollars ($40,000,000).
     4     (D)  Divide the product from clause (C) by the sum of the
     5  products from clause (B).
     6     (iii)  If a qualifying school district's 2005-2006 equalized
     7  millage is equal to or greater than twenty-four and seven-tenths
     8  (24.7), it shall receive an additional payment calculated as
     9  follows:
    10     (A)  Multiply the product from subparagraph (ii)(B) by
    11  eighteen million dollars ($18,000,000).
    12     (B)  Divide the product from clause (A) by the sum of the
    13  products from subparagraph (ii)(B) for qualifying school
    14  districts.
    15     (6)  A tax effort supplement calculated for qualifying school
    16  districts as follows:
    17     (i)  To qualify for this portion of the tax effort
    18  supplement, the percent change in a school district's market
    19  value from 2000 to 2005 must be less than ten percent (10%).
    20     (ii)  This portion of the tax effort supplement shall be
    21  calculated for qualifying school districts as follows:
    22     (A)  Multiply the school district's 2007-2008 market
    23  value/income aid ratio by its 2006-2007 average daily
    24  membership.
    25     (B)  Multiply the product from clause (A) by three million
    26  dollars ($3,000,000).
    27     (C)  Divide the product from clause (B) by the sum of the
    28  products of the 2007-2008 market value/income aid ratio
    29  multiplied by the 2006-2007 average daily membership for all
    30  qualifying school districts.
    20070H0842B2347                 - 47 -     

     1     (iii)  To qualify for this portion of the tax effort
     2  supplement, a school district's 2007-2008 market value/income
     3  aid ratio must be greater than four thousand five hundred ten-
     4  thousandths (.4500), the residential portion of its 2005
     5  assessed valuation as determined by the State Tax Equalization
     6  Board must be greater than eighty-seven percent (87%), its 2005-
     7  2006 equalization millage must be greater than twenty-two and
     8  five-tenths (22.5), and its 2007-2008 market value/income aid
     9  ratio minus its 1994-1995 market value/income aid ratio must be
    10  greater than one thousand ten-thousandths (.1000).
    11     (iv)  This portion of the tax effort supplement shall be
    12  calculated for qualifying school districts as follows:
    13     (A)  Multiply the school district's 2006-2007 average daily
    14  membership by five hundred thousand dollars ($500,000).
    15     (B)  Divide the product from clause (A) by the sum of the
    16  2006-2007 average daily membership for all qualifying school
    17  districts.
    18     (7)  A growth supplement calculated for qualifying school
    19  districts as follows:
    20     (i)  To qualify for the growth supplement, the school
    21  district's 2005-2006 average daily membership must be at least
    22  five percent (5%) greater than the school district's 2000-2001
    23  average daily membership, the school district's 2005 market
    24  value per 2005-2006 average daily membership must be less than
    25  or equal to nineteen and one-half percent (19.50%) greater than
    26  the school district's 2000 market value per 2000-2001 average
    27  daily membership and the school district's 2006-2007 average
    28  daily membership must be greater than the school district's
    29  2005-2006 average daily membership.
    30     (ii)  The growth supplement shall be calculated for
    20070H0842B2347                 - 48 -     

     1  qualifying school districts as follows:
     2     (A)  Multiply the school district's 2007-2008 market value/
     3  income aid ratio by the difference between the school district's
     4  2005-2006 average daily membership and the school district's
     5  2006-2007 average daily membership.
     6     (B)  Multiply the product from clause (A) by two million five
     7  hundred thousand dollars ($2,500,000).
     8     (C)  Divide the product from clause (B) by the sum of the
     9  products of the 2007-2008 market value/income aid ratio
    10  multiplied by the difference between the 2005-2006 average daily
    11  membership and the 2006-2007 average daily membership for all
    12  qualifying school districts.
    13     (8)  Each school district shall receive an inflation index
    14  supplement as necessary so that the sum of the amounts under
    15  section 2502.13, 2504.4 and paragraphs (3), (4), (5), (6) and
    16  (7) and this paragraph equal three and four-tenths percent
    17  (3.4%) multiplied by its 2007-2008 market value/income aid ratio
    18  of the amount in paragraph (1).
    19     (9)  Each school district shall receive additional funding as
    20  necessary so that the sum of the amounts under section 2502.13,
    21  2504.4 and paragraphs (3), (4), (5), (6), (7) and (8) and this
    22  paragraph shall equal at least two percent (2.00%) of the amount
    23  in paragraph (1).
    24     Section 26.  Sections 2504.4, 2509.1 and 2509.5 of the act
    25  are amended by adding subsections to read:
    26     Section 2504.4.  Payments on Account of Limited English
    27  Proficiency Programs.--* * *
    28     (a.3)  To qualify for limited English proficiency payments
    29  under this section, a school district's 2007-2008 market
    30  value/income aid ratio must be equal to or greater than three
    20070H0842B2347                 - 49 -     

     1  thousand eight hundred ten-thousandths (.3800) and the number of
     2  enrolled students identified as limited English proficient in
     3  the 2005-2006 school year must be equal to or greater than three
     4  and one-half percent (3.5%) of the school district's 2005-2006
     5  average daily membership. The allocation under this section
     6  shall be paid in fiscal year 2007-2008 out of the appropriation
     7  for basic education funding and calculated for qualifying school
     8  districts as follows:
     9     (1)  Multiply the number of enrolled students identified as
    10  limited English proficient in the 2005-2006 school year by two
    11  million seven hundred thousand dollars ($2,700,000).
    12     (2)  Divide the product from paragraph (1) by the sum of
    13  enrolled students identified as limited English proficient for
    14  all qualifying school districts.
    15     Section 2509.1.  Payments to Intermediate Units.--* * *
    16     (b.15)  Up to eleven million two hundred thousand dollars
    17  ($11,200,000) may be utilized for programs administered and
    18  operated by intermediate units during the 2007-2008 school year
    19  for institutionalized children as established in subsection
    20  (b.1).
    21     * * *
    22     Section 2509.5.  Special Education Payments to School
    23  Districts.--* * *
    24     (vv)  During the 2007-2008 school year, each school district
    25  shall be paid the amount it received during the 2006-2007 school
    26  year under subsections (rr), (ss), (tt) and (uu).
    27     (ww)  During the 2007-2008 school year, twenty-seven million
    28  six hundred eighty-two thousand one hundred and ninety-three
    29  dollars ($27,682,193) of the funds appropriated to the
    30  Department of Education for special education shall be used to
    20070H0842B2347                 - 50 -     

     1  provide supplemental funding for special education to all school
     2  districts. Each school district shall receive a funding
     3  supplement calculated as follows:
     4     (1)  multiply each school district's 2007-2008 market
     5  value/income aid ratio by sixteen percent (16%) of its 2006-2007
     6  average daily membership;
     7     (2)  multiply the product from paragraph (1) by twenty-seven
     8  million dollars ($27,000,000); and
     9     (3)  divide the resultant product from paragraph (2) by the
    10  sum of the products of the 2007-2008 market value/income aid
    11  ratio multiplied by sixteen percent (16%) of the 2006-2007
    12  average daily membership for all school districts.
    13     (xx)  Each school district shall receive an inflation index
    14  supplement as necessary so that the amounts under subsection
    15  (ww) and this subsection equal three and four-tenths percent
    16  (3.4%) multiplied by each school district's 2007-2008 market
    17  value/income aid ratio of the amount in subsection (vv).
    18     (yy)  Each school district for which the sum of the
    19  supplements under subsections (ww) and (xx) provides an amount
    20  less than two percent (2%) of the amount provided under
    21  subsection (vv) shall receive additional funding as necessary so
    22  that the sum of the amounts provided under subsections (ww),
    23  (xx) and this subsection equals two percent (2%) of the amount
    24  provided under subsection (vv).
    25     Section 27.  The act is amended by adding a section to read:
    26     Section 2526.1.  Budget Stabilization Plan Progress Report.--
    27  (a)  A school district of the first class shall submit a budget
    28  stabilization plan progress report to the Secretary of Education
    29  and the Secretary of the Budget in a manner prescribed by the
    30  Secretary of Education no later than October 15, 2007, for the
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     1  period ending September 30, 2007, and no later than January 15,
     2  2008, for the period ending December 31, 2007.
     3     (b)  (1)  The Secretary of Education shall approve a report
     4  that demonstrates that planned cost reduction measures adopted
     5  by a school district of the first class and resulting projected
     6  savings included in a budget adopted by a school district of the
     7  first class have occurred as scheduled or have been replaced
     8  with substitute cost reduction measures that have generated
     9  equal savings.
    10     (2)  In the case of a report deemed to be unsatisfactory, the
    11  Secretary of Education shall disapprove the report and make any
    12  necessary recommendations to a school district of the first
    13  class.
    14     (3)  The Secretary of Education may withhold any State
    15  appropriation that may become due to a school district of the
    16  first class after the deadline for submitting a budget
    17  stabilization plan progress report until such time as a budget
    18  stabilization plan progress report is approved pursuant to this
    19  subsection.
    20     (c)  The Secretary of Education shall provide a copy of any
    21  budget stabilization plan progress report submitted by a school
    22  district of the first class to the chairman and minority
    23  chairman of the Appropriations Committee of the Senate, the
    24  chairman and minority chairman of the Appropriations Committee
    25  of the House of Representatives, the chairman and minority
    26  chairman of the Education Committee of the Senate and the
    27  chairman and the minority chairman of the Education Committee of
    28  the House of Representatives.
    29     Section 28.  Section 2541 is amended by adding a subsection
    30  to read:
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     1     Section 2541.  Payments on Account of Pupil Transportation.--
     2  * * *
     3     (f)  Effective for the 2007-2008 school year, any school
     4  district that is required to transport resident students of a
     5  distressed school district pursuant to section 1607.1(b) shall
     6  be reimbursed by the Commonwealth the additional sum of three
     7  hundred eighty-five dollars ($385) for each student reassigned
     8  to a school district designated pursuant to section
     9  1607.1(a)(1).
    10     Section 29.  Section 2591.1(c.1) and (d) of the act, amended
    11  or added July 4, 2004 (P.L.536, No.70), are amended to read:
    12     Section 2591.1.  Commonwealth Reimbursements for Charter
    13  Schools and Cyber Charter Schools.--* * *
    14     (c.1)  (1)  For the 2003-2004 school year and each school
    15  year thereafter, except for the 2006-2007 school year as
    16  provided under paragraph (2), the Commonwealth shall pay to each
    17  school district with resident students enrolled during the
    18  immediately preceding school year in a charter school, a charter
    19  school approved under section 1717-A or 1718-A which provides
    20  instruction through the Internet or other electronic means or a
    21  cyber charter school as defined under Article XVII-A, an amount
    22  equal to thirty percent (30%) of the total funding required
    23  under section 1725-A(a).
    24     (2)  For the 2006-2007 school year, the payment required
    25  under this subsection shall be equal to thirty-two and forty-
    26  five hundredths percent (32.45%) of the amount required under
    27  section 1725-A(a) where the school district has:
    28     (i)  average daily membership of resident students enrolled
    29  in a charter school, a charter school approved under section
    30  1717-A or 1718-A which provides instruction through the Internet
    20070H0842B2347                 - 53 -     

     1  or other electronic means or a cyber charter school as defined
     2  under Article XVII-A equal to or greater than twelve percent
     3  (12%) of the school district's 2006-2007 average daily
     4  membership;
     5     (ii)  a 2007-2008 market value/income aid ratio of equal to
     6  or greater than six thousand ten thousandths (.6000); and
     7     (iii)  made payments equal to or greater than one million
     8  dollars ($1,000,000) as required under section 1725-A(a).
     9     * * *
    10     (d)  (1)  For the fiscal year 2003-2004 and each fiscal year
    11  thereafter, if insufficient funds are appropriated to make
    12  Commonwealth payments pursuant to this section, such payments
    13  shall be made on a pro rata basis.
    14     (2)  For fiscal year 2007-2008, when determining if
    15  sufficient funds are available, the Department of Education
    16  shall include in the calculation two million dollars
    17  ($2,000,000) in addition to the funds appropriated to the
    18  Department of Education for this purpose.
    19     Section 30.  Section 2599.2(c) and (d.1)(1) of the act,
    20  amended or added July 13, 2005 (P.L.226, No.46) and July 11,
    21  2006 (P.L.1092, No.114), are amended, the section is amended by
    22  adding subsections and subsection (b) is amended by adding
    23  paragraphs to read:
    24     Section 2599.2.  Pennsylvania Accountability Grants.--* * *
    25     (b)  The grant shall be used by a school district to attain
    26  or maintain academic performance targets. Funds obtained under
    27  this section may be used for any of the following:
    28     * * *
    29     (12)  Establishing, expanding or maintaining programs for
    30  instruction on world languages in the elementary grades, either
    20070H0842B2347                 - 54 -     

     1  in immersion classrooms or as separate periods of instruction.
     2     (13)  Establishing, expanding or maintaining programs to
     3  strengthen high school curricula by creating rigorous college
     4  and career preparatory programs, increasing academic
     5  achievement, offering additional advanced placement courses,
     6  providing school-based counseling, and providing professional
     7  development.
     8     (14)  Establishing, expanding or maintaining programs to
     9  provide intensive teacher training, professional development
    10  opportunities and teaching resources to elementary level science
    11  teachers.
    12     * * *
    13     (b.2)  (1)  If, for the 2007-2008 school year, the amount of
    14  funding that a school district receives under subsection (d.2)
    15  exceeds the amount of the grant that it received during the
    16  2006-2007 school year, the school district shall use its
    17  additional funds to establish or expand the full-day
    18  kindergarten program under subsection (b)(2).
    19     (2)  The department shall require each school district to
    20  certify as part of the plan submitted under subsection (c)(2)
    21  whether the school district will use its additional grant funds
    22  in compliance with this subsection.
    23     (3)  A school district that does one of the following shall
    24  forfeit the right to the additional grant funds received in the
    25  2007-2008 school year under subsection (d.2)(2) and (3) and all
    26  forfeited funds shall be distributed pursuant to subsection
    27  (d.3):
    28     (i)  Chooses in the 2007-2008 school year not to establish or
    29  expand a full-day kindergarten program consistent with the
    30  requirements of this subsection.
    20070H0842B2347                 - 55 -     

     1     (ii)  Submits a plan that does not comply with this section.
     2     (c)  (1)  No later than April 10, 2004, and April 10, 2005,
     3  the department shall notify each school district of the grant
     4  amount it will receive under subsection (d). No later than April
     5  10, 2006, the department shall notify each school district of
     6  the grant amount it will receive under subsection (d.1).
     7     (1.1)  For the 2007-2008 school year, the department shall
     8  notify each school district of the programs and activities
     9  authorized under subsection (b)(12), (13) and (14) and of its
    10  grant amount under subsection (d.3) within fifteen (15) days of
    11  the effective date of this paragraph.
    12     (2)  Within thirty (30) days of receipt of the notification
    13  under paragraph (1), the school district shall submit to the
    14  department an accountability grant plan. The plan shall include:
    15     (i)  Reference to the programs or activities under subsection
    16  (b) for which the grant funds will be used.
    17     (ii)  Identification of whether the grant funds will be used
    18  to establish, maintain or expand the programs or activities
    19  referenced under subparagraph (i).
    20     (iii)  A brief description of the programs or activities for
    21  which the grant funds will be used.
    22     (2.1)  For the 2007-2008 school year, a school district that
    23  proposes to use the grant funds for a program or activity not
    24  referenced in the accountability grant plan submitted under
    25  paragraph (2) shall submit an amended accountability grant plan
    26  to the department within thirty (30) days of the effective date
    27  of this paragraph. The amended plan shall include the
    28  information required under paragraph (2).
    29     (3)  (i)  Where the accountability grant plan submitted under
    30  paragraph (2) proposes to use the grant funds for a program or
    20070H0842B2347                 - 56 -     

     1  activity under subsection (b)(11), the department shall have
     2  fifteen (15) days from the receipt of the plan to disapprove the
     3  use and notify the school district of the reason for the
     4  disapproval. Within thirty (30) days of the receipt of notice of
     5  disapproval, the school district shall submit a revised
     6  accountability grant plan under paragraph (2).
     7     (ii)  Where the accountability grant plan submitted under
     8  paragraph (2) proposes to use the grant funds for a program or
     9  activity under subsection (b)(11) and the school district fails
    10  to receive notification from the secretary within fifteen (15)
    11  days of receipt that its request has been disapproved, the
    12  school district may proceed to implement the proposed programs
    13  or activities.
    14     (4)  Where the accountability grant plan submitted under
    15  paragraph (2) or where the amended accountability grant plan
    16  submitted under paragraph (2.1) proposes to use the grant funds
    17  for a program or activity under subsection (b)(1), (2), (3),
    18  (4), (5), (6), (7), (8), (9) [or], (10), (12), (13) or (14), the
    19  department may, within thirty (30) days from the receipt of the
    20  plan, make nonbinding recommendations for alternative
    21  utilization of the grant funds.
    22     (5)  No later than February 1, 2005, and February 1 of each
    23  year thereafter, the department shall submit a report to the
    24  majority and minority chairs of the Appropriations and Education
    25  Committees of the Senate and to the majority and minority chairs
    26  of the Appropriations and Education Committees of the House of
    27  Representatives summarizing the operation of the program for
    28  that fiscal year. The report shall include:
    29     (i)  A description of the operation of the program.
    30     (ii)  A summary of the total amount of grant funds paid to
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     1  school districts.
     2     (iii)  A summary of the uses of grant funds to school
     3  districts.
     4     (iv)  An identification of the number of school districts
     5  that used grant funds for each of the programs or activities
     6  under subsection (b).
     7     (v)  A listing of each school district and the program or
     8  activity under subsection (b) for which the grant funds were
     9  used.
    10     (vi)  An identification of the number of school districts
    11  that used grant funds to establish, maintain or expand the
    12  program or activity for which the grant funds were used.
    13     (vii)  A listing of each school district and whether the
    14  grant funds were used to establish, maintain or expand the
    15  program or activity for which the grant funds were used.
    16     * * *
    17     (d.1)  (1)  During the 2006-2007 school year [and each school
    18  year thereafter], the department shall pay to each school
    19  district a Pennsylvania accountability grant equal to the amount
    20  determined in subsection (d) plus the sum of the amounts
    21  calculated under paragraphs (2) and (3).
    22     * * *
    23     (d.2)  (1)  During the 2007-2008 school year, the department
    24  shall pay to each school district a Pennsylvania accountability
    25  grant equal to the amount determined under subsection (d.1) plus
    26  the sum of the amounts calculated under paragraphs (2) and (3).
    27     (2)  Each school district shall receive an amount based on
    28  the percentage of its students scoring below proficient on PSSA
    29  tests administered in the school district, calculated as
    30  follows:
    20070H0842B2347                 - 58 -     

     1     (i)  Divide the number of PSSA tests administered in the
     2  school district on which students scored below proficient in
     3  reading or mathematics during the 2005-2006 school year by the
     4  total number of PSSA tests scored in reading and mathematics in
     5  the school district during the 2005-2006 school year.
     6     (ii)  Multiply the quotient from subparagraph (i) by the
     7  average daily membership of the school district for the 2005-
     8  2006 school year.
     9     (iii)  Multiply the product from subparagraph (ii) by the
    10  market value/income aid ratio of the school district for the
    11  2006-2007 school year.
    12     (iv)  Multiply the product from subparagraph (iii) by
    13  eighteen million seven hundred fifty thousand dollars
    14  ($18,750,000).
    15     (v)  Divide the product from subparagraph (iv) by the sum of
    16  the products of subparagraph (iii) for all school districts.
    17     (3)  Each school district shall receive an amount based on
    18  the percentage of its students scoring at or above proficient on
    19  PSSA tests administered in the school district, calculated as
    20  follows:
    21     (i)  Divide the number of PSSA tests administered in the
    22  school district on which students scored at or above proficient
    23  in reading or mathematics during the 2005-2006 school year by
    24  the total number of PSSA tests scored in reading and mathematics
    25  in the school district during the 2005-2006 school year.
    26     (ii)  Multiply the quotient from subparagraph (i) by the
    27  average daily membership of the school district for the 2005-
    28  2006 school year.
    29     (iii)  Multiply the product from subparagraph (ii) by the
    30  market value/income aid ratio of the school district for the
    20070H0842B2347                 - 59 -     

     1  2006-2007 school year.
     2     (iv)  Multiply the product from subparagraph (iii) by six
     3  million two hundred fifty thousand dollars ($6,250,000).
     4     (v)  Divide the product from subparagraph (iv) by the sum of
     5  the products of subparagraph (iii) for all school districts.
     6     (d.3) (1)  During the 2007-2008 school year, the department
     7  shall pay a Pennsylvania accountability grant supplement from
     8  funds subject to distribution pursuant to subsection (b.2)(3)
     9  equal to the amount calculated under paragraphs (2), (3), (4)
    10  and (5).
    11     (2)  Each school district with a 2006-2007 full-day
    12  kindergarten average daily membership shall receive an amount
    13  based on the percentage of its students scoring below proficient
    14  on PSSA tests administered in the school district, calculated as
    15  follows:
    16     (i)  Divide the number of PSSA tests administered in the
    17  school district on which students scored below proficient in
    18  reading or mathematics during the 2005-2006 school year by the
    19  total number of PSSA tests scored in reading and mathematics in
    20  the school district during the 2005-2006 school year.
    21     (ii)  Multiply the quotient from subparagraph (i) by the
    22  full-day kindergarten estimated average daily membership of the
    23  school district for the 2006-2007 school year.
    24     (iii)  Multiply the product from subparagraph (ii) by the
    25  market value/income aid ratio of the school district for the
    26  2006-2007 school year.
    27     (iv)  Multiply the product from subparagraph (iii) by three
    28  million seven hundred fifty thousand dollars ($3,750,000).
    29     (v)  Divide the product from subparagraph (iv) by the sum of
    30  the products of subparagraph (iii) for all eligible school
    20070H0842B2347                 - 60 -     

     1  districts under this paragraph.
     2     (3)  Each school district with a 2006-2007 full-day
     3  kindergarten average daily membership shall receive an amount
     4  based on the percentage of its students scoring at or above
     5  proficient on PSSA tests administered in the school district,
     6  calculated as follows:
     7     (i)  Divide the number of PSSA tests administered in the
     8  school district on which students scored at or above proficient
     9  in reading or mathematics during the 2005-2006 school year by
    10  the total number of PSSA tests scored in reading and mathematics
    11  in the school district during the 2005-2006 school year.
    12     (ii)  Multiply the quotient from subparagraph (i) by the
    13  full-day kindergarten estimated average daily membership of the
    14  school district for the 2006-2007 school year.
    15     (iii)  Multiply the product from subparagraph (ii) by the
    16  market value/income aid ratio of the school district for the
    17  2006-2007 school year.
    18     (iv)  Multiply the product from subparagraph (iii) by one
    19  million two hundred fifty thousand dollars ($1,250,000).
    20     (v)  Divide the product from subparagraph (iv) by the sum of
    21  the products of subparagraph (iii) for all eligible school
    22  districts under this paragraph.
    23     (4)  Each school district shall receive an amount equal to
    24  two percent (2%) of the amount determined pursuant to subsection
    25  (d.1).
    26     (5)  After amounts have been paid pursuant to paragraphs (2),
    27  (3) and (4), any remaining funds subject to distribution
    28  pursuant to subsection (b.2)(3) shall be allocated to each
    29  school district as follows:
    30     (i)  Multiply the school district's 2006-2007 market
    20070H0842B2347                 - 61 -     

     1  value/income aid ratio by the number of additional full-day
     2  kindergarten students to be enrolled in the newly established or
     3  expanded full-day kindergarten program in the school district as
     4  indicated in the accountability grant plan submitted under
     5  subsection (c).
     6     (ii)  Multiply the product from subparagraph (i) by the total
     7  amount of forfeited grant funds subject to distribution under
     8  this paragraph.
     9     (iii)  Divide the product from subparagraph (ii) by the sum
    10  of the products from subparagraph (i) of all school districts
    11  with additional full-day kindergarten students to be enrolled in
    12  newly established or expanded full-day kindergarten programs.
    13     Section 31.  This act shall take effect immediately.












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