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                                                       PRINTER'S NO. 787

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 720 Session of 2007


        INTRODUCED BY PILEGGI, PICCOLA, EARLL, ERICKSON, A. WILLIAMS,
           FOLMER, PIPPY AND WONDERLING, APRIL 2, 2007

        REFERRED TO EDUCATION, APRIL 2, 2007

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing, in charter
     6     schools, for definitions, for administration, for
     7     establishment, for regional schools, for charters, for
     8     funding, for tort liability, for nonrenewal and termination
     9     and for desegregation orders.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  The definitions of "charter school" and "regional
    13  charter school" in section 1703-A of the act of March 10, 1949
    14  (P.L.30, No.14), known as the Public School Code of 1949,
    15  amended June 29, 2002 (P.L.524, No.88), are amended and the
    16  section is amended by adding definitions to read:
    17     Section 1703-A.  Definitions.--As used in this article,
    18     * * *
    19     "Charter school" shall mean an independent public school
    20  established and operated under a charter from [the local board
    21  of school directors] an initial approving authority and in which

     1  students are enrolled or attend. A charter school must be
     2  organized as a public, nonprofit corporation. Charters may not
     3  be granted to any for-profit entity.
     4     * * *
     5     "Initial approving authority" shall mean the department, a
     6  board of school directors or the governing board of an
     7  intermediate unit or an institution of higher education.
     8     "Institution of higher education" for purposes of this
     9  article shall mean an accredited college or university under 24
    10  Pa.C.S. § 6501 (relating to applicability of chapter) or Article
    11  XX-A of this act or a community college under Article XIX-A of
    12  this act.
    13     * * *
    14     "Regional charter school" shall mean an independent public
    15  school established and operated under a charter from more than
    16  one [local board of school directors] initial approving
    17  authority and in which students are enrolled or attend. A
    18  regional charter school must be organized as a public, nonprofit
    19  corporation. Charters may not be granted to any for-profit
    20  entity.
    21     * * *
    22     Section 2.  Sections 1716-A, 1717-A, 1718-A, 1720-A and 1724-
    23  A(d) of the act, added June 19, 1997 (P.L.225, No.22), are
    24  amended to read:
    25     Section 1716-A.  Powers of Board of Trustees.--(a)  The board
    26  of trustees of a charter school shall have the authority to
    27  decide matters related to the operation of the school,
    28  including, but not limited to, budgeting, curriculum and
    29  operating procedures, subject to the school's charter. The board
    30  shall have the authority to employ, discharge and contract with
    20070S0720B0787                  - 2 -     

     1  necessary professional and nonprofessional employes subject to
     2  the school's charter and the provisions of this article.
     3     (b)  No member of [a local board of school directors of a
     4  school entity] the initial approving authority which granted or
     5  renewed a charter shall serve on the board of trustees of a
     6  charter school that is [located in the member's district] the
     7  subject of the granted or renewed charter.
     8     (c)  The board of trustees shall comply with the act of July
     9  3, 1986 (P.L.388, No.84), known as the "Sunshine Act."
    10     Section 1717-A.  Establishment of Charter School.--(a)  A
    11  charter school may be established by an individual; one or more
    12  teachers who will teach at the proposed charter school; parents
    13  or guardians of students who will attend the charter school; any
    14  nonsectarian college, university or museum located in this
    15  Commonwealth; any nonsectarian corporation not-for-profit, as
    16  defined in 15 Pa.C.S. (relating to corporations and
    17  unincorporated associations); any corporation, association or
    18  partnership; or any combination thereof. A charter school may be
    19  established by creating a new school or by converting an
    20  existing public school or a portion of an existing public
    21  school. No charter school shall be established or funded by and
    22  no charter shall be granted to any sectarian school, institution
    23  or other entity. No funds allocated or disbursed under this
    24  article shall be used to directly support instruction pursuant
    25  to section 1327.1.
    26     (b)  (1)  The conversion of an existing public school or
    27  portion of an existing public school to a charter school may be
    28  initiated by any individual or entity authorized to establish a
    29  charter school under subsection (a).
    30     (2)  In order to convert an existing public school to a
    20070S0720B0787                  - 3 -     

     1  charter school, the applicants must show that:
     2     (i)  More than fifty per centum of the teaching staff in the
     3  public school have signed a petition in support of the public
     4  school becoming a charter school; and
     5     (ii)  More than fifty per centum of the parents or guardians
     6  of pupils attending that public school have signed a petition in
     7  support of the school becoming a charter school.
     8     (3)  In no event shall the [board of school directors]
     9  initial approving authority serve as the board of trustees of an
    10  existing school which is converted to a charter school pursuant
    11  to this subsection.
    12     (c)  An application to establish a charter school shall be
    13  submitted to the [local board of school directors of the
    14  district where the charter school will be located] initial
    15  approving authority by November 15 of the school year preceding
    16  the school year in which the charter school will be established.
    17  [except that for a charter school beginning in the 1997-1998
    18  school year, an application must be received by July 15, 1997.
    19  In the 1997-1998 school year only, applications shall be limited
    20  to recipients of fiscal year 1996-1997 Department of Education
    21  charter school planning grants.]
    22     (d)  Within forty-five (45) days of receipt of an
    23  application, the [local board of school directors in which the
    24  proposed charter school is to be located] initial approving
    25  authority shall hold at least one public hearing on the
    26  provisions of the charter application, under the act of July 3,
    27  1986 (P.L.388, No.84), known as the "Sunshine Act." At least
    28  forty-five (45) days must transpire between the first public
    29  hearing and the final decision of the [board] initial approving
    30  authority on the charter application. [except that for a charter
    20070S0720B0787                  - 4 -     

     1  school beginning in the 1997-1998 school year, only thirty (30)
     2  days must transpire between the first public hearing and the
     3  final decision of the board.]
     4     (e)  (1)  Not later than seventy-five (75) days after the
     5  first public hearing on the application, the [local board of
     6  school directors] initial approving authority which received the
     7  application shall grant or deny the application. For a charter
     8  school beginning in the 1997-1998 school year, the local board
     9  of school directors shall grant or deny the application no later
    10  than sixty (60) days after the first public hearing.
    11     (2)  A charter school application submitted under this
    12  article shall be evaluated by the [local board of school
    13  directors] initial approving authority based on criteria,
    14  including, but not limited to, the following:
    15     (i)  The demonstrated, sustainable support for the charter
    16  school plan by teachers, parents, other community members and
    17  students, including comments received at the public hearing held
    18  under subsection (d).
    19     (ii)  The capability of the charter school applicant, in
    20  terms of support and planning, to provide comprehensive learning
    21  experiences to students pursuant to the adopted charter.
    22     (iii)  The extent to which the application considers the
    23  information requested in section 1719-A and conforms to the
    24  legislative intent outlined in section 1702-A.
    25     (iv)  The extent to which the charter school may serve as a
    26  model for other public schools.
    27     (3)  The local board of school directors, in the case of an
    28  existing school being converted to a charter school, shall
    29  establish the alternative arrangements for current students who
    30  choose not to attend the charter school.
    20070S0720B0787                  - 5 -     

     1     (4)  A charter application shall be deemed approved by the
     2  [local board of school directors of a school district] initial
     3  approving authority upon affirmative vote by a majority of all
     4  the [directors. Formal] members of the board of school directors
     5  or members of the governing board of an intermediate unit or
     6  institution of higher education. Except for approval by the
     7  department, formal action approving or denying the application
     8  shall be taken by [the local board of school directors] that
     9  entity at a public meeting, with notice or consideration of the
    10  application given by the board, under the "Sunshine Act." A
    11  charter application shall be deemed by the department upon the
    12  issuance of written approval by the department.
    13     (5)  Written notice of the [board's] action of an initial
    14  approving authority shall be sent to the applicant, the
    15  department and the appeal board. If the application is denied,
    16  the reasons for the denial, including a description of
    17  deficiencies in the application, shall be clearly stated in the
    18  notice [sent by the local board of school directors] to the
    19  charter school applicant.
    20     (f)  At the option of the charter school applicant, a denied
    21  application may be revised and resubmitted to the [local board
    22  of school directors] initial approving authority which denied
    23  the application. Following the appointment and confirmation of
    24  the Charter School Appeal Board under section 1721-A, the
    25  decision of the [local board of school directors] initial
    26  approving authority may be appealed to the appeal board. When an
    27  application is revised and resubmitted to the [local board of
    28  school directors, the board] initial approving authority which
    29  denied the application, that initial approving authority may
    30  schedule additional public hearings on the revised application.
    20070S0720B0787                  - 6 -     

     1  The [board] initial approving authority shall consider the
     2  revised and resubmitted application [at the first board meeting
     3  occurring] at least forty-five (45) days after receipt of the
     4  revised application by [the board] that initial approving
     5  authority. For a revised application resubmitted for the 1997-
     6  1998 school year, the board shall consider the application at
     7  the first board meeting occurring at least thirty (30) days
     8  after its receipt. The [board] initial approving authority shall
     9  provide notice of consideration of the revised application under
    10  the "Sunshine Act." [No appeal from a decision of a local school
    11  board may be taken until July 1, 1999.]
    12     (g)  Notwithstanding the provisions of subsection (e)(5),
    13  failure by the [local board of directors] initial approving
    14  authority to hold a public hearing and to grant or deny the
    15  application for a charter school within the time periods
    16  specified in subsections (d)[, (e) and (f)] and (e) shall permit
    17  the applicant for a charter to file its application [as an
    18  appeal to] with the appeal board. In such case, the appeal board
    19  shall review the application and make a decision to grant or
    20  deny a charter based on the criteria established in subsection
    21  (e)(2).
    22     (h)  In the case of a review by the appeal board of an
    23  application that is revoked or is not renewed, the appeal board
    24  shall make its decision based on the criteria established in
    25  subsection (e)(2). A decision by the appeal board under this
    26  subsection or subsection (g) to grant, to renew or not to revoke
    27  a charter shall serve as a requirement for the local board of
    28  directors of a school district or school districts, as
    29  appropriate, to sign the written charter of the charter school
    30  as provided for in section 1720-A. Should the local board of
    20070S0720B0787                  - 7 -     

     1  directors fail to grant the application and sign the charter
     2  within ten (10) days of notice of reversal of the decision of
     3  the local board of directors, the charter shall be deemed to be
     4  approved and shall be signed by the chairman of the appeal
     5  board.
     6     (i)  (1)  The appeal board shall have the exclusive review of
     7  an appeal by a charter school applicant, or by the board of
     8  trustees of an existing charter school, of a decision made by [a
     9  local board of directors] an initial approving authority not to
    10  grant a charter as provided in this section. The department
    11  shall develop a form to be used for an appeal.
    12     (2)  In order for a charter school applicant to be eligible
    13  to appeal the denial of a charter by [the local board of
    14  directors] an initial approving authority, the applicant must
    15  obtain the signatures of at least two per centum of the
    16  residents of the school district or of one thousand (1,000)
    17  residents, whichever is less, who are over eighteen (18) years
    18  of age. For a regional charter school, the applicant must obtain
    19  the signatures of at least two per centum of the residents of
    20  each school district granting the charter or of one thousand
    21  (1,000) residents from each of the school districts granting the
    22  charter, whichever is less, who are over eighteen (18) years of
    23  age. The signatures shall be obtained within sixty (60) days of
    24  the denial of the application by the local board of directors in
    25  accordance with clause (3).
    26     (3)  Each person signing a petition to appeal denial of a
    27  charter under clause (2) shall declare that he or she is a
    28  resident of the school district which denied the charter
    29  application and shall include his or her printed name;
    30  signature; address, including city, borough or township, with
    20070S0720B0787                  - 8 -     

     1  street and number, if any; and the date of signing. All pages
     2  shall be bound together. Additional pages of the petition shall
     3  be numbered consecutively. There shall be appended to the
     4  petition a statement that the local board of directors rejected
     5  the petition for a charter school, the names of all applicants
     6  for the charter, the date of denial by the board and the
     7  proposed location of the charter school. No resident may sign
     8  more than one petition relating to the charter school
     9  application within the sixty (60) days following denial of the
    10  application. The department shall develop a form to be used to
    11  petition for an appeal.
    12     (4)  Each petition to appeal denial of a charter under clause
    13  (2) shall have appended thereto the affidavit of some person,
    14  not necessarily a signer, setting forth all of the following:
    15     (i)  That the affiant is a resident of the school district
    16  referred to in the petition.
    17     (ii)  The affiant's residence, giving city, borough or
    18  township, with street and number, if any.
    19     (iii)  That the signers signed with full knowledge of the
    20  purpose of the petition.
    21     (iv)  That the signers' respective residences are correctly
    22  stated in the petition.
    23     (v)  That the signers all reside in the school district.
    24     (vi)  That each signer signed on the date set forth opposite
    25  the signer's name.
    26     (vii)  That to the best of the affiant's knowledge and
    27  belief, the signers are residents of the school district.
    28     (5)  If the required number of signatures are obtained on a
    29  petition to appeal denial of a charter under clause (2) within
    30  sixty (60) days of the denial of the application by an initial
    20070S0720B0787                  - 9 -     

     1  approving authority, the applicant may present the petition to
     2  the court of common pleas of the county in which the charter
     3  school would be situated. The court shall hold a hearing only on
     4  the sufficiency of the petition. The applicant and local board
     5  of school directors shall be given seven (7) days' notice of the
     6  hearing. The court shall issue a decree establishing the
     7  sufficiency or insufficiency of the petition. If the petition is
     8  sufficient, the decree shall be transmitted to the State Charter
     9  School Appeal Board for review in accordance with this section.
    10  Notification of the decree shall be given to the applicant and
    11  the local board of directors.
    12     (6)  In any appeal, the decision made by the [local board of
    13  directors] initial approving authority shall be reviewed by the
    14  appeal board on the record as certified by the [local board of
    15  directors] initial approving authority. The appeal board shall
    16  give due consideration to the findings of the [local board of
    17  directors] initial approving authority and specifically
    18  articulate its reasons for agreeing or disagreeing with those
    19  findings in its written decision. The appeal board shall have
    20  the discretion to allow the [local board of directors] initial
    21  approving authority and the charter school applicant to
    22  supplement the record if the supplemental information was
    23  previously unavailable.
    24     (7)  Not later than thirty (30) days after the date of notice
    25  of the acceptance of the appeal, the appeal board shall meet to
    26  officially review the certified record.
    27     (8)  Not later than sixty (60) days following the review
    28  conducted pursuant to clause (6), the appeal board shall issue a
    29  written decision affirming or denying the appeal. If the appeal
    30  board has affirmed the decision of the [local board of
    20070S0720B0787                 - 10 -     

     1  directors] initial approving authority, notice shall be provided
     2  to both parties.
     3     (9)  A decision of the appeal board to reverse the decision
     4  of the [local board of directors] initial approving authority
     5  shall serve as a requirement for the [local board of directors
     6  of a school district or school districts] initial approving
     7  authority, as appropriate, to grant the application and sign the
     8  written charter of the charter school as provided for in section
     9  1720-A. Should the [local board of directors] initial approving
    10  authority fail to grant the application and sign the charter
    11  within ten (10) days of notice of the reversal of the decision
    12  of the [local board of directors] initial approving authority,
    13  the charter shall be deemed to be approved and shall be signed
    14  by the chairman of the appeal board.
    15     (10)  All decisions of the appeal board shall be subject to
    16  appellate review by the Commonwealth Court.
    17     Section 1718-A.  Regional Charter School.--(a)  A regional
    18  charter school may be established by an individual, one or more
    19  teachers who will teach at the proposed charter school; parents
    20  or guardians of students who will attend the charter school; any
    21  nonsectarian college, university or museum located in this
    22  Commonwealth; any nonsectarian corporation not-for-profit, as
    23  defined in 15 Pa.C.S. (relating to corporations and
    24  unincorporated associations); any corporation, association or
    25  partnership; or any combination thereof. A regional charter
    26  school may be established by creating a new school or by
    27  converting an existing public school or a portion of an existing
    28  public school. Conversion of an existing public school to a
    29  regional charter school shall be accomplished in accordance with
    30  section 1714-A(b). No regional charter school shall be
    20070S0720B0787                 - 11 -     

     1  established or funded by and no charter shall be granted to any
     2  sectarian school, institution or other entity.
     3     (b)  The boards of school directors of one or more school
     4  districts, or the governing board of any combination of one or
     5  more initial approving authorities, may act jointly to receive
     6  and consider an application for a regional charter school,
     7  except that any action to approve an application for a charter
     8  or to sign a written charter of an applicant shall require an
     9  affirmative vote of a majority of all the school directors of
    10  each of the school districts or a majority of the members of the
    11  governing board of each of the initial approving authorities
    12  involved. [The applicant shall apply for a charter to the board
    13  of directors of any school district in which the charter school
    14  will be located.]
    15     (c)  The provisions of this article as they pertain to
    16  charter schools and the powers and duties of the local board of
    17  school directors of a school district and the appeal board shall
    18  apply to regional charter schools, except as provided in
    19  subsections (a) and (b) or as otherwise clearly stated in this
    20  article.
    21     Section 1720-A.  Term and Form of Charter.--Upon approval of
    22  a charter application under section 1717-A, a written charter
    23  shall be developed which shall contain the provisions of the
    24  charter application and which shall be signed by the [local
    25  board of school directors of a school district, by the local
    26  boards of school directors of a school district in the case of a
    27  regional charter school or by the chairman of the appeal board
    28  pursuant to section 1717-A(i)(5)] initial approving authority
    29  and the board of trustees of the charter school. This written
    30  charter, when duly signed by the [local board of school
    20070S0720B0787                 - 12 -     

     1  directors of a school district, or by the local boards of school
     2  directors of a school district in the case of a regional charter
     3  school,] initial approving authority and the charter school's
     4  board of trustees, shall act as legal authorization for the
     5  establishment of a charter school. This written charter shall be
     6  legally binding on both [the local board of school directors of
     7  a school district and the charter school's board of trustees]
     8  the charter school's board of trustees and on the initial
     9  approving authority, as applicable. The charter [shall be for a
    10  period of no less than three (3) nor more than five (5) years
    11  and may be renewed for five (5) year periods upon
    12  reauthorization by the local board of school directors of a
    13  school district or the appeal board.] may be for a fixed term of
    14  no less than three (3) years, may provide for renewal, or it may
    15  provide that it is to remain in force unless revoked for cause
    16  by the department or initial approving authority. A charter will
    17  be granted only for a school organized as a public, nonprofit
    18  corporation.
    19     Section 1724-A.  School Staff.--* * *
    20     (d)  Every employe of a charter school shall be provided the
    21  same health care benefits as the employe would be provided if he
    22  or she were an employe of the local district. The [local board
    23  of school directors] initial approving authority may require the
    24  charter school to provide the same terms and conditions with
    25  regard to health insurance as the collective bargaining
    26  agreement of the school district to include employe
    27  contributions to the district's health benefits plan. The
    28  charter school shall make any required employer's contribution
    29  to the district's health plan to an insurer, [a local board of
    30  school directors] an initial approving authority or a
    20070S0720B0787                 - 13 -     

     1  contractual representative of school employes, whichever is
     2  appropriate to provide the required coverage.
     3     * * *
     4     Section 3.  Section 1725-A(a) of the act, amended June 29,
     5  2002 (P.L.524, No.88), is amended to read:
     6     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
     7  for a charter school shall be provided in the following manner:
     8     (1)  There shall be no tuition charge for a resident or
     9  nonresident student attending a charter school.
    10     (2)  For non-special education students, the charter school
    11  shall receive for each student enrolled no less than the
    12  budgeted total expenditure per average daily membership of the
    13  prior school year, as defined in section 2501(20), minus the
    14  budgeted expenditures of the district of residence for nonpublic
    15  school programs; adult education programs; community/junior
    16  college programs; student transportation services; for special
    17  education programs; facilities acquisition, construction and
    18  improvement services; and other financing uses, including debt
    19  service and fund transfers as provided in the Manual of
    20  Accounting and Related Financial Procedures for Pennsylvania
    21  School Systems established by the department. This amount shall
    22  be paid by the district of residence of each student[.] or, upon
    23  written request of the charter school, by the department to the
    24  charter school in which a Pennsylvania resident student is
    25  enrolled from any State allocation to which the school district
    26  in which the student resides is entitled. The department shall
    27  notify the school district of the receipt of a request for
    28  direct payment by the department. When the student's district of
    29  residence Annual Financial Report (AFR) contains final school
    30  district fiscal information that causes the funding per student
    20070S0720B0787                 - 14 -     

     1  as defined in this clause to be two percent (2%) or more than
     2  the amount determined by the figures in the budget of the school
     3  district of residence, then the funding per charter school
     4  student shall be recalculated and the difference sent to the
     5  charter school where the student is enrolled.
     6     (3)  For special education students, the charter school shall
     7  receive for each student enrolled the same funding as for each
     8  non-special education student as provided in clause (2), plus an
     9  additional amount determined by dividing the district of
    10  residence's total special education expenditure by the product
    11  of multiplying the combined percentage of section 2509.5(k)
    12  times the district of residence's total average daily membership
    13  for the prior school year. This amount shall be paid by the
    14  [district of residence of each student.] department to the
    15  charter school which a Pennsylvania resident student is enrolled
    16  from any State allocation to which the school district in which
    17  the special education student resides is entitled. When the
    18  student's district of residence Annual Financial Report (AFR)
    19  contains final school district fiscal information that causes
    20  the funding per student as defined in this clause to be two
    21  percent (2%) or more that the amount determined by the figures
    22  in the budget of the school district of residence, then the
    23  funding per charter school student shall be recalculated and the
    24  difference sent to the charter school where the student is
    25  enrolled.
    26     (4)  A charter school may request the intermediate unit in
    27  which the charter school is located to provide services to
    28  assist the charter school to address the specific needs of
    29  exceptional students. The intermediate unit shall assist the
    30  charter school and bill the charter school for the services. The
    20070S0720B0787                 - 15 -     

     1  intermediate unit may not charge the charter school more for any
     2  service than it charges the constituent districts of the
     3  intermediate unit.
     4     (5)  Payments shall be made to the charter school in twelve
     5  (12) equal monthly payments, by the fifth day of each month,
     6  within the operating school year. A student enrolled in a
     7  charter school shall be included in the average daily membership
     8  of the student's district of residence for the purpose of
     9  providing basic education funding payments and special education
    10  funding pursuant to Article XXV. [If a school district fails to
    11  make a payment to a charter school as prescribed in this clause,
    12  the secretary shall deduct the estimated amount, as documented
    13  by the charter school, from any and all State payments made to
    14  the district after receipt of documentation from the charter
    15  school.]
    16     (6)  Within thirty (30) days after the secretary makes the
    17  deduction described in clause (5), a school district may notify
    18  the secretary that the deduction made from State payments to the
    19  district under this subsection is inaccurate. The secretary
    20  shall provide the school district with an opportunity to be
    21  heard concerning whether the charter school documented that its
    22  students were enrolled in the charter school, the period of time
    23  during which each student was enrolled, the school district of
    24  residence of each student and whether the amounts deducted from
    25  the school district were accurate.
    26     * * *
    27     Section 4.  Sections 1727-A and 1728-A of the act, added June
    28  19, 1997 (P.L.225, No.22), are amended to read:
    29     Section 1727-A.  Tort Liability.--For purposes of tort
    30  liability, employes of the charter school shall be considered
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     1  public employes and the board of trustees shall be considered
     2  the public employer in the same manner as political subdivisions
     3  and local agencies. The board of trustees of a charter school
     4  and the charter school shall be solely liable for any and all
     5  damages of any kind resulting from any legal challenge involving
     6  the operation of a charter school. Notwithstanding this
     7  requirement, the local board of directors of a school entity, an
     8  initial approving authority shall not be held liable for any
     9  activity or operation related to the program of the charter
    10  school.
    11     Section 1728-A.  Annual Reports and Assessments.--(a)  The
    12  [local board of school directors] initial approving authority
    13  shall annually assess whether each charter school is meeting the
    14  goals of its charter and shall conduct a comprehensive review
    15  [prior to granting a five (5) year renewal of the charter] every
    16  five (5) years. The [local board of school directors] initial
    17  approving authority shall have ongoing access to the records and
    18  facilities of the charter school to ensure that the charter
    19  school is in compliance with its charter and this act and that
    20  requirements for testing, civil rights and student health and
    21  safety are being met.
    22     (b)  In order to facilitate the [local board's] initial
    23  approving authority's review and secretary's report, each
    24  charter school shall submit an annual report no later than
    25  August 1 of each year to the [local board of school directors]
    26  initial approving authority and the secretary in the form
    27  prescribed by the secretary.
    28     (c)  Five (5) years following the effective date of this
    29  article, the secretary shall contract with an independent
    30  professional consultant with expertise in public and private
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     1  education. The consultant shall receive input from members of
     2  the educational community and the public on the charter school
     3  program. The consultant shall submit a report to the secretary,
     4  the Governor and the General Assembly and an evaluation of the
     5  charter school program, which shall include a recommendation on
     6  the advisability of the continuation, modification, expansion or
     7  termination of the program and any recommendations for changes
     8  in the structure of the program.
     9     Section 5.  Section 1729-A of the act, amended or added June
    10  19, 1997 (P.L.225, No.22) and July 4, 2004 (P.L.536, No,.70), is
    11  amended to read:
    12     Section 1729-A.  Causes for Nonrenewal or Termination.--(a)
    13  During the term of the charter or at the end of the term of the
    14  charter, the [local board of school directors] initial approving
    15  authority may choose to revoke or not to renew the charter based
    16  on any of the following:
    17     (1)  One or more material violations of any of the
    18  conditions, standards or procedures contained in the written
    19  charter signed pursuant to section 1720-A.
    20     (2)  Failure to meet the requirements for student performance
    21  set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
    22  subsequent regulations promulgated to replace 22 Pa. Code Ch. 5
    23  or failure to meet any performance standard set forth in the
    24  written charter signed pursuant to section 1716-A.
    25     (3)  Failure to meet generally accepted standards of fiscal
    26  management or audit requirements.
    27     (4)  Violation of provisions of this article.
    28     (5)  Violation of any provision of law from which the charter
    29  school has not been exempted, including Federal laws and
    30  regulations governing children with disabilities.
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     1     (6)  The charter school has been convicted of fraud.
     2     (b)  A member of the board of trustees who is convicted of a
     3  felony or any crime involving moral turpitude shall be
     4  immediately disqualified from serving on the board of trustees.
     5     (c)  Any notice of revocation or nonrenewal of a charter
     6  [given by the local board of school directors of a school
     7  district] shall state the grounds for such action with
     8  reasonable specificity and give reasonable notice to the
     9  governing board of the charter school of the date on which a
    10  public hearing concerning the revocation or nonrenewal will be
    11  held. The [local board of school directors] initial approving
    12  authority shall conduct such hearing, present evidence in
    13  support of the grounds for revocation or nonrenewal stated in
    14  its notice and give the charter school reasonable opportunity to
    15  offer testimony before taking final action. Formal action
    16  revoking or not renewing a charter shall be taken by the [local
    17  board of school directors] initial approving authority at a
    18  public meeting pursuant to the act of July 3, 1986 (P.L.388,
    19  No.84), known as the "Sunshine Act," after the public has had
    20  thirty (30) days to provide comments to the board. All
    21  proceedings of the local board pursuant to this subsection shall
    22  be subject to 2 Pa.C.S. Ch. 5 Subch. B (relating to practice and
    23  procedure of local agencies). Except as provided in subsection
    24  (d), the decision of the local board shall not be subject to 2
    25  Pa.C.S. Ch. 7 Subch. B (relating to judicial review of local
    26  agency action).
    27     (d)  Following the appointment and confirmation of the appeal
    28  board, but not before July 1, 1999, the charter school may
    29  appeal the decision of the local board of school directors to
    30  revoke or not renew the charter to the appeal board. The appeal
    20070S0720B0787                 - 19 -     

     1  board shall have the exclusive review of a decision not to renew
     2  or revoke a charter. The appeal board shall review the record
     3  and shall have the discretion to supplement the record if the
     4  supplemental information was previously unavailable. The appeal
     5  board may consider the charter school plan, annual reports,
     6  student performance and employe and community support for the
     7  charter school in addition to the record. The appeal board shall
     8  give due consideration to the findings of the local board of
     9  directors and specifically articulate its reasons for agreeing
    10  or disagreeing with those findings in its written decision.
    11     (e)  If the appeal board determines that the charter should
    12  not be revoked or should be renewed, the appeal board shall
    13  order the local board of directors to rescind its revocation or
    14  nonrenewal decision.
    15     (f)  Except as provided in subsection (g), the charter shall
    16  remain in effect until final disposition by the appeal board.
    17     (g)  In cases where the health or safety of the school's
    18  pupils, staff or both is at serious risk, the local board of
    19  school directors may take immediate action to revoke a charter.
    20     (h)  All decisions of the charter school appeal board shall
    21  be subject to appellate review by the Commonwealth Court.
    22     (i)  When a charter is revoked, not renewed, forfeited,
    23  surrendered or otherwise ceases to operate, the charter school
    24  shall be dissolved. After the disposition of any liabilities and
    25  obligations of the charter school, any remaining assets of the
    26  charter school, both real and personal, shall be distributed on
    27  a proportional basis to the school entities with students
    28  enrolled in the charter school for the last full or partial
    29  school year of the charter school. In no event shall such school
    30  entities or the Commonwealth be liable for any outstanding
    20070S0720B0787                 - 20 -     

     1  liabilities or obligations of the charter school.
     2     (j)  When a charter is revoked or is not renewed, a student
     3  who attended the charter school shall apply to another public
     4  school in the student's school district of residence. Normal
     5  application deadlines will be disregarded under these
     6  circumstances. All student records maintained by the charter
     7  school shall be forwarded to the student's district of
     8  residence.
     9     Section 6.  Section 1730-A of the act, added June 19, 1997
    10  (P.L.225, No.22), is amended to read:
    11     Section 1730-A.  Desegregation Orders.--[The local board of
    12  school directors of] If a school district [which] is operating
    13  under a desegregation plan approved by the Pennsylvania Human
    14  Relations Commission or a desegregation order by a Federal or
    15  State court, an initial approving authority shall not approve a
    16  charter school application if such charter school would place
    17  the school district in noncompliance with its desegregation
    18  order.
    19     Section 7.  The following provisions shall apply to charter
    20  school applications made on or after the effective date of this
    21  section:
    22         (1)  The amendment or addition of the definition of
    23     "charter school," "regional charter school," "initial
    24     approving authority" and "institution of higher education" in
    25     section 1703-A of the act.
    26         (2)  The amendment of sections 1716-A, 1717-A, 1718-A,
    27     1720-A, 1724-A, 1725-A, 1727-A, 1728-A, 1729-A and 1730-A of
    28     the act.
    29     Section 8.  This act shall take effect in 60 days.

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