THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY ROEBUCK, STURLA, LONGIETTI, MUNDY, CARROLL, CONKLIN, HARKINS, M. O'BRIEN, K. SMITH, WAGNER, BRENNAN, CALTAGIRONE, DALEY, FABRIZIO, GOODMAN, HALUSKA, JOSEPHS, PASHINSKI, READSHAW, SANTONI AND THOMAS, JUNE 14, 2011

REFERRED TO COMMITTEE ON EDUCATION, JUNE 14, 2011  

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," in pupils and attendance, providing

for transfer of records to another school entity or nonpublic

school; in charter schools, further providing for

definitions, providing for Office of Charter and Cyber

Charter Schools, further providing for powers of charter

schools, for charter school requirements, for powers of

boards of trustees, providing for organization of meetings of

boards of trustees and duties of administrators, further

providing for establishment of charter school; providing for

multiple charter school organization; further providing for

contents of application, for State Charter School Appeal

Board, for facilities, for enrollment, for school staff, for

funding for charter schools, for transportation, for annual

reports and assessments, for causes for nonrenewal or

termination and for provisions applicable to charter schools,

providing for charter school fund balance limit, further

providing for powers and duties of the Department of

Education and for assessment and evaluation, for cyber

charter school requirements and prohibitions, for school

district and intermediate unit responsibilities, for

enrollment and notification and for applicability of other

provisions of this act and of other acts and regulations and

providing for cyber charter school fund balance limit and for

cyber charter school funding; and in auditing of school

finances, further providing for duties of controller.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding a

section to read:

Section 1313.1.  Transfer of Records to Another School Entity

or Nonpublic School.--(a)  Whenever a student transfers to

another school entity or nonpublic school within this

Commonwealth, a certified copy of the student's attendance

record shall be transmitted to the school entity or nonpublic

school to which the student has transferred. The school entity

or nonpublic school to which the student has transferred shall

request the record. The sending school entity or nonpublic

school shall have ten (10) days from the receipt of the request

to supply a certified copy of the student's attendance record.

(b)  In the case of a student transferring during the course

of a school term, the student's unexcused absences shall be

included in the student's attendance record at the school entity

or nonpublic school to which the student has transferred for

that school term.

(c)  For purposes of this section, the tern "school entity"

shall mean a public school district, charter school, cyber

charter school, intermediate unit or area vocational-technical

school.

Section 2.  Section 1703-A of the act, amended June 29, 2002

(P.L.524, No.88), is amended to read:

Section 1703-A.  Definitions.--As used in this article,

"Administrator" shall include the chief administrator of a

charter school or cyber charter school and all other employes of

a charter school or cyber charter school who by virtue of their

positions exercise management or operational oversight

responsibilities.

"Appeal board" shall mean the State Charter School Appeal

Board established by this article.

"At-risk student" shall mean a student at risk of educational

failure because of limited English proficiency, poverty,

community factors, truancy, academic difficulties or economic

disadvantage.

"Charter school" shall mean an independent public school

established and operated under a charter from the local [board

of school directors] school board and in which students are

enrolled or attend. A charter school must be organized as a

public, nonprofit corporation. Charters may not be granted to

any for-profit entity.

"Charter school foundation" shall mean a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3))

that provides funding or resources to a charter school or cyber

charter school, either directly or through an affiliated entity.

"Charter school fund balance limit" shall mean the amount

determined under section 1733-A.

"Chief [executive officer] administrator" shall mean an

individual appointed by the board of trustees to oversee and

manage the operation of the charter school, but who shall not be

deemed a professional staff member under this article.

"Component schools" shall mean the charter schools merging or

consolidating under the multiple charter school organization.

"Cyber charter school" shall mean an independent public

school established and operated under a charter from the

Department of Education and in which the school uses technology

in order to provide a significant portion of its curriculum and

to deliver a significant portion of instruction to its students

through the Internet or other electronic means. A cyber charter

school must be organized as a public, nonprofit corporation. A

charter may not be granted to a for-profit entity.

"Department" shall mean the Department of Education of the

Commonwealth.

"Educational service provider" shall mean a for-profit

education management organization, nonprofit charter management

organization, school design provider, business manager or any

other partner entity with which a charter school intends to

contract or presently contracts to provide educational services,

operational services or management services to the charter

school. An educational service provider does not include a

charter school foundation.

"Financial relationship" shall mean any formal or informal

arrangement pursuant to which a charter is obligated to make

payment or in fact does make payment to an individual, group of

individuals or any entity.

"Immediate family member" shall mean a spouse, parent,

brother, sister or child.

"Local [boards of school directors] school board" shall mean

the board of directors of a school district in which a proposed

or an approved charter school is located. The term shall include

a board of control established under Article XVII-B, a special

board of control established under section 692 or a school

reform commission established under section 696.

"Multiple charter school organization" shall mean two or more

charter schools that agree to merge or consolidate under 15

Pa.C.S. Pt. II Subpt. C (relating to nonprofit corporations)

subject to approval by the Secretary of Education.

"Office" shall mean the Office of Charter and Cyber Charter

Schools established within the Department of Education.

"Regional charter school" shall mean an independent public

school established and operated under a charter from more than

one local school board [of school directors] and in which

students are enrolled or attend. A regional charter school must

be organized as a public, nonprofit corporation. Charters may

not be granted to any for-profit entity.

"School district of residence" shall mean the school district

in this Commonwealth in which the parents or guardians of a

child reside.

"School entity" shall mean a school district, intermediate

unit, joint school or area vocational-technical school.

"Secretary" shall mean the Secretary of Education of the

Commonwealth.

"State board" shall mean the State Board of Education of the

Commonwealth.

Section 3.  The act is amended by adding a section to read:

Section 1704-A.  Office of Charter and Cyber Charter

Schools.--(a)  The department shall establish an Office of

Charter and Cyber Charter Schools within one hundred twenty

(120) days of the effective date of this section. The office

shall report directly to the secretary. The office shall be

responsible for:

(1)  Implementing the provisions of this article.

(2)  Overseeing the performance and effectiveness of all

charter schools and cyber charter schools under subsection (b).

(3)  Distributing funding to cyber charter schools through an

allocation from the basic education funding line item.

(4)  The collection, development and dissemination of

information, policies, strategies and best practices for the

effective management and operation of charter schools and cyber

charter schools.

(5)  Identifying model charter school and cyber charter

school applications and providing best practices.

(6)  Organizing and providing mandatory training for members

of the board of trustees and chief administrators of a charter

school or cyber charter school. The training shall be paid for

exclusively by the charter school or cyber charter school. The

following apply:

(i)  A person who serves as a member of a charter school or

cyber charter school board of trustees or as a chief

administrator shall be required to complete a minimum of eight

(8) hours of continuing education annually in course work

directly related to his position in a charter school or cyber

charter school.

(ii)  Continuing education training shall be provided by an

eligible provider selected by the office. Training topics that

may be provided include:

(A)  Charter school best practices.

(B)  Overview of charter school law, including special

education topics.

(C)  Role of the board of trustees and administrators.

(D)  Audits and financing.

(E)  15 Pa.C.S. Pt. II Subpt. C (relating to nonprofit

corporations).

(F)  65 Pa.C.S. Ch. 7 (relating to open meetings).

(G)  65 Pa.C.S. Ch. 11 (relating to ethics standards and

financial disclosure).

(H)  The act of July 19, 1957 (P.L.1017, No.451), known as

the "State Adverse Interest Act."

(I)  The act of February 14, 2008 (P.L.6, No.3), known as the

"Right-to-Know Law."

(iii)  The charter school or cyber charter school shall

annually certify to the office on a form developed by the office

for this purpose and supported by submitted documentary evidence

that each member of the charter school's or cyber charter

school's board of trustees and chief administrator have

completed the minimum hours of continuing education as required

under this section. The charter school or cyber charter school

shall also include this certification in its annual report and

publish the same on its Internet website.

(7)  The development and issuance of standardized forms that

shall be used by all applicants, local school boards, charter

schools and cyber charter schools as required under sections

1717-A, 1719-A, 1728-A, 1731-A, 1747-A and 1748-A.

(8)  Directing all charter schools and cyber charter schools

to submit an annual report to the office no later than September

1 of each year and to publish the same on the department's

Internet website on an annual basis.

(9)  Providing administrative support for the State Charter

School Appeal Board.

(b)  The office shall have the following powers and duties:

(1)  To designate the office as a local education agency for

the purpose of receiving Federal and State funding to distribute

to cyber charter schools.

(2)  To establish the minimum age of kindergarten or beginner

for students attending a cyber charter school.

(3)  To conduct a special review of a local school board,

charter school or cyber charter school in the event of

persistently unsatisfactory performance of a local school

board's portfolio of charter schools, a pattern of well-founded

complaints about a local school board or its charter schools or

other objective circumstances, and take any appropriate action

authorized under this article.

(4)  To investigate fraud, waste, mismanagement and

misconduct in the operations of a local school board, charter

school or cyber charter school, including any of the following:

(i)  Misuse of movable and immovable property.

(ii)  Evidence of a pattern of wasteful spending or

misappropriation of funds by board members, administrators or

staff.

(iii)  Mismanagement of school operations.

(iv)  Waste or abuse of things of value belonging to State or

local government.

(v)  Allegations of collusion or coercion.

(5)  To receive complaints of fraud, waste, mismanagement,

misconduct or persistently unsatisfactory academic performance

by a local school board, charter school or cyber charter school.

(6)  To receive and investigate a complaint from any parent

who has a student enrolled in a charter school or cyber charter

school regarding a member of the board of trustees who refuses

or neglects to perform any duty imposed upon the member under

this article or has violated any requirement established under

this article or has committed misfeasance or malfeasance while

in office as a trustee.

(7)  To notify the local school board, charter school or

cyber charter school in writing if at any time the office finds

that a local school board, charter school or cyber charter

school is not in compliance with an existing charter contract or

the requirements of this act and to allow the local school

board, charter school or cyber charter school to have reasonable

opportunity to respond and comply.

(8)  If the local school board, charter school or cyber

charter school fails to comply with the direction given pursuant

to this subsection, to notify the secretary, who shall have the

authority to withhold payment of all funds to the local school

board, charter school or cyber charter school or order school

districts not to make any payments to the charter school until

the secretary determines that the charter school has complied

with the direction given pursuant to this subsection. If the

secretary withholds payment of the subsidy to a local school

board based on the actions of that board, the local board shall

not intentionally withhold payment of per pupil allocation

payments to a charter school unless directed by the secretary.

(9)  To refer findings to the district attorney with

jurisdiction or to the Office of Attorney General or to any

other appropriate law enforcement agency for prosecution if the

office discovers or receives information about possible

violations of law by any person affiliated with or employed by a

local school board, charter school or cyber charter school.

Section 4.  Section 1714-A(5) of the act, amended July 4,

2004 (P.L.536, No.70), is amended to read:

Section 1714-A.  Powers of Charter Schools.--(a)  A charter

school established under this act is a body corporate and shall

have all powers necessary or desirable for carrying out its

charter, including, but not limited to, the power to:

* * *

(5)  Make contracts and leases for the procurement of

services, equipment and supplies[.], subject to the following:

(i)  No contract or lease entered into by a charter school or

cyber charter school for an amount greater than one hundred

dollars ($100) may provide for a payment in excess of the fair

market value of the services, equipment, supplies or other

property being acquired or leased.

(ii)  A charter school or cyber charter school may not enter

into or continue operating under a contract for management,

operations or educational services that involves the charter

school or cyber charter school providing a percentage of the

charter or cyber charter school's revenues to the contractor.

(iii)  No contract entered into by a charter school or cyber

charter school shall have a term that extends beyond the charter

or cyber charter school's existing charter agreement with a

local school board or the office.

* * *

Section 5.  Section 1715-A(11) and (12) of the act, amended

or added June 19, 1997 (P.L.225, No.22) and July 9, 2008

(P.L.846, No.61), are amended and the section is amended by

adding clauses to read:

Section 1715-A.  Charter School Requirements.--Charter

schools shall be required to comply with the following

provisions:

* * *

[(11)  Trustees of a charter school shall be public

officials.

(12)  A person who serves as an administrator for a charter

school shall not receive compensation from another charter

school or from a company that provides management or other

services to another charter school. The term "administrator"

shall include the chief executive officer of a charter school

and all other employes of a charter school who by virtue of

their positions exercise management or operational oversight

responsibilities. A person who serves as an administrator for a

charter school shall be a public official under 65 Pa.C.S. Ch.

11 (relating to ethics standards and financial disclosure). A

violation of this clause shall constitute a violation of 65

Pa.C.S. § 1103(a) (relating to restricted activities), and the

violator shall be subject to the penalties imposed under the

jurisdiction of the State Ethics Commission.]

(11)  The board of trustees of a charter school or cyber

charter school must record in written format the minutes of each

meeting of the board at which any business of the charter school

or cyber charter school is considered or transacted. All meeting

minutes must be maintained by a charter school or cyber charter

school for at least seven (7) years.

(12)  The board minutes of the trustees of a charter school

or cyber charter school must reflect the board's approval or

disapproval of all contracts, agreements and obligations in

excess of one hundred dollars ($100), including how each member

voted on the contract, agreement or obligation.

(13)  The board minutes of the trustees of a charter school

or cyber charter school must reflect the board's approval of an

annual budget, including how each member voted on the budget.

(14)  An individual who is a trustee of a charter school or

cyber charter school shall not serve as a trustee at any other

charter school or cyber charter school.

(15)  An individual who is a trustee of a charter school or

cyber charter school shall not serve as an employe of any other

charter school or cyber charter school.

(16)  An individual who is a trustee of a charter school or

cyber charter school shall not have a financial relationship

with an entity with which the charter school or cyber charter

school transacts any business.

(17)  Members of the board of trustees and administrators of

a charter school or cyber charter school shall be deemed to be

public officials and subject to the provisions of 65 Pa.C.S.

Chs. 7 (relating to open meetings) and 11 (relating to ethics

standards and financial disclosure).

(18)  Members of the board of trustees and administrators of

a charter school or cyber charter school shall be subject to the

following statutory requirements:

(i)  The act of July 19, 1957 (P.L.1017, No.451), known as

the "State Adverse Interest Act."

(ii)  The act of February 14, 2008 (P.L.6, No.3), known as

the "Right-to-Know Law."

(19)  Notwithstanding section 322, an administrator,

supervisor, principal, teacher or employe of a charter school

shall not serve on a local school board which granted or renewed

its charter. This clause shall not prevent any administrator,

supervisor, teacher or employe of any charter school from being

a school director in a district other than a district that

granted the charter school's charter.

(20)  All members of the board of trustees and administrators

of a charter school or cyber charter school shall take the oath

of office as required by section 321 before entering upon the

duties of the office.

(21)  All payments made by a charter school or cyber charter

school shall be cosigned by the treasurer of the board of

trustees and the chief administrator of the charter school or

cyber charter school.

(22)  Within ten (10) days of the execution of an agreement

between a charter school or cyber charter school and any

education service provider, the board of trustees shall publish

on the charter or cyber charter school school's publicly

available Internet website all of the following:

(i)  a copy of the executed agreement;

(ii)  a plain language explanation of all costs and fees

associated with the agreement;

(iii)  a description of all financial relationships between

the charter school or cyber charter school and the education

service provider or any of its board members or employes;

(iv)  the education service provider's status as a for-profit

or nonprofit organization; and

(v)  if the education service provider is a for-profit

organization, a plain language explanation of how any profit

will be determined and distributed between the charter school

and the education service provider.

Section 6.  Section 1716-A of the act, added June 19, 1997

(P.L.225, No.22), is amended to read:

Section 1716-A.  [Powers of] Board of Trustees.--(a)  The

board of trustees of a charter school or cyber charter school 

shall have the authority to decide matters related to the

operation of the school, including, but not limited to,

budgeting, curriculum and operating procedures, subject to the

school's charter. [The board]

(a.1) The board of trustees shall have the authority to

employ, discharge and contract with necessary professional and

nonprofessional employes subject to the school's charter and the

provisions of this [article] act. The board of trustees, only

with written permission of the department, may contract with

educators who are not employes of the charter school or cyber

charter school to serve as teaching staff in specialized

subjects, provided that such arrangements shall constitute no

more than five percentum of the teaching staff of the charter

school or cyber charter school.

(a.2)  The board of trustees of a charter school or cyber

charter school shall have a minimum of five (5) voting members.

If a charter school or cyber charter school has fewer than five

(5) voting members serving on its board as of the effective date

of this subsection, the charter school or cyber charter school

shall have sixty (60) days to appoint additional members to the

board to meet the minimum requirements of this section.

(b)  The following shall apply to all members of the board of

trustees of a charter school or cyber charter school:

(1)  No member of a local school board [of school directors]

of a school entity shall serve on the board of trustees of a

charter school that is located in the member's district.

(2)  No administrator or member of a local school board which

granted or renewed a charter shall serve on the board of

trustees of a charter school that is the subject of the granted

or renewed charter.

(3)  No member of the board of trustees shall be employed in

any capacity or have any financial relationship with the local

school board from which the charter school received its charter.

No member of the board of trustees of a cyber charter school

shall be employed in any capacity or have any financial

relationship with the office.

(4)  No member of the board of trustees or a member of the

immediate family of the member of the board of trustees shall be

employed by the charter school or cyber charter school or have a

financial relationship with the charter school or cyber charter

school, nor be employed by any entity that has a financial

relationship with the charter school or cyber charter school or

any related or associated foundation unless the charter school

or cyber charter school complies with the requirements of 65

Pa.C.S. § 1103(f) (relating to restricted activities).

(5)  No member of the board of trustees or a member of the

immediate family of the member of the board of trustees shall be

employed by or have A financial relationship with an educational

service provider which is under contract with the charter school

or cyber charter school or any related or associated foundation.

(6)  A member of the board of trustees shall disqualify

himself and abstain from voting in a proceeding which

constitutes a conflict of interest or where the objectivity,

impartiality, integrity or independence of judgment of the

member may be reasonably questioned.

(7)  A member of the board of trustees shall be automatically

disqualified from serving on the board upon conviction for an

offense graded as a felony, an infamous crime, any offense

pertaining to the member's official capacity as a board member

or any crime involving moral turpitude.

(8)  No member of the board of trustees, employe or

administrator of a charter school or cyber charter school shall

convert to his own use or use by way of investment or contract

any portion of the charter school or cyber charter school funds

or school property or deposit any of the funds of the charter

school or cyber charter school in any other name.

(9)  No business entity, including for-profit and nonprofit

entities with which a member of the board OF trustees, an

administrator or a member of the immediate family of the member

of the board of trustees or administrator is associated shall

contract with the charter school or cyber charter school unless

the charter school complies with the requirements of 65 Pa.C.S.

§ 1103(f).

(10)  No member of the board of trustees or a member of the

immediate family of the member of the board of trustees shall

act as an agent for any vendor or subvendor for goods or

services with the local school board or charter school or cyber

charter school.

(11)  No member of the board OF trustees shall commingle or

allow the commingling of any portion of the charter school or

cyber charter school funds or property or deposit any of the

funds of the charter school or cyber charter school in accounts

unrelated to the charter school or cyber charter school.

(12)  No member of the board OF trustees of a charter school

or cyber charter school shall be employed by a charter school or

cyber charter school foundation or any entity affiliated with a

charter school or cyber charter school foundation. No immediate

family member of a member of the board of trustees shall serve

on, receive compensation from or be employed by a charter school

or cyber charter school foundation or any entity affiliated with

a charter school or cyber charter school foundation.

(13)  No member of the board of trustees of a charter school

or cyber charter school shall be employed in any capacity or

have a financial relationship with the department.

(14)  Any member of the board of trustees, elected officials,

administrators or their immediate families or staff determined

to have engaged in any conduct in contravention of any aspect of

this subsection shall be immediately barred and prohibited from

the handling or receipt of funds, directly or indirectly, for a

period of five (5) consecutive years from the date of receipt,

expenditure, oversight or handling in any fashion, directly or

indirectly, of the funds of any school board, charter school,

cyber charter school, charter school or cyber charter school

foundation or appropriated by the Commonwealth, including, but

not limited to, awards of contracts to third parties, hiring or

retention of employes or consultants and the purchase or

acquisition of goods or services.

[(c)  The board of trustees shall comply with the act of July

3, 1986 (P.L.388, No.84), known as the "Sunshine Act."]

(c.1)  At least one member of the board of trustees of a

charter school or cyber charter school shall be a parent of a

child attending that charter school or cyber charter school.

(d)  The following shall apply:

(1)  The secretary, upon a petition filled by department

staff, may remove a member of a board of trustees if the

secretary determines the member has refused or neglected to

perform any duty imposed under this article or has violated any

requirement established under this article or has committed

misfeasance or malfeasance while in office as a trustee.

(2)  Before a trustee is removed, that trustee shall be

provided with a written statement of the reasons for removal and

an opportunity to be heard in accordance with 2 Pa.C.S. Chs. 5

Subch. A (relating to practice and procedure of Commonwealth

agencies) and 7 Subch. A (relating to judicial review of

Commonwealth agency action).

(3)  When in the judgment of the secretary the immediate

removal of a board member is reasonably necessary, the removal

process described under this subsection may be expedited.

(4)  Any person removed as a member of the board of trustees

of a charter school or cyber charter school under this

subsection shall not be eligible again to serve as a board

member or administrator for the period of five (5) years from

the date of removal.

Section 7.  The act is amended by adding sections to read:

Section 1716.1-A.  Organization of Meetings of Boards of

Trustees.--(a)  A majority of the members of the board of

trustees shall constitute a quorum. If less than a majority is

present at any meeting, no business shall be transacted at the

meeting.

(b)  The affirmative vote of a majority of all the members of

the board of trustees, duly recorded, shall be required in order

to take action on the subjects enumerated under section 508.

Section 1716.2-A.  Duties of Administrators.--(a)  The chief

administrator shall have the duty of the general supervision of

all business affairs of the charter school or cyber charter

school, subject to the direction of the board of trustees, and

the following duties subject to the direction of the board of

trustees:

(1)  Upon action by the board as described in this article,

to approve any bill or account for payment of money and to

prepare and sign an order for the payment of money.

(2)  To attest in writing the executing of all deeds,

contracts, reports and other instruments that are are to be

executed by the board.

(3)  To furnish when requested to do so all reports as

required under this act.

(4)  Notwithstanding other provisions of this act and other

laws, to serve as custodian of all records, offices and property

of the charter school or cyber charter school.

(5)  To receive ALL funds and make payments out of the same

on proper orders approved by the board of trustees.

(6)  To deposit funds and at the end of each month make a

report to the SCHOOL CONTROLLER of the amount of funds received

and the amount dispersed during the month.

(7)  To perform other duties pertaining to the business of

the charter school or cyber charter school as required under

this act.

(b)  The following restrictions and requirements shall apply:

(1)  No administrator shall receive compensation from another

charter school, cyber charter school or from a company that

provides management or other services to another charter school

or cyber charter school.

(2)  No administrator shall be employed by or have a

financial relationship with the local school boards from which

the charter school received its charter.

(2.1)  No administrator of a cyber charter school shall be

employed or have a financial relationship with the department.

(3)  No immediate family member of an administrator shall be

employed by or have any financial relationship with the charter

school or cyber charter school unless the charter school or

cyber charter school complies with the requirements of 65

Pa.C.S. § 1103(f) (relating to restricted activities).

(4)  No administrator shall be employed by or have a

financial relationship with an educational service provider

without the approval of the board of trustees.

(5)  No immediate family member of an administrator shall be

employed by or have a financial relationship with an educational

service provider which is under contract with the charter school

or cyber charter school.

(6)  An administrator shall be dismissed upon conviction for

an offense graded as a felony, an infamous crime or any crime

involving moral turpitude.

(7)  No business with which an administrator, or a member of

the immediate family of the administrator, is associated shall

contract with the charter school or cyber charter school unless

the charter school or cyber charter school complies with the

requirements of 65 Pa.C.S. § 1103(f).

(8)  No administrator shall commingle or convert to his own

use or use by way of investment any portion of the school funds

or school property or deposit any of the funds of the school in

accounts unrelated to the charter school or cyber charter

school.

(9)  No administrator shall act as an agent for any vendor

for school supplies, program materials or related educational

services with the local school board.

(10)  No administrator shall receive compensation from or be

employed by a charter school or cyber charter school foundation

or any entity affiliated with a charter school or cyber charter

school foundation. No immediate family member of an

administrator shall serve on or be employed by a charter school

or cyber charter school foundation or any entity affiliated with

a charter school or cyber charter school foundation.

Section 8.  Section 1717-A(e) of the act, added June 19, 1997

(P.L.225, No.22), is amended to read:

Section 1717-A.  Establishment of Charter School.--* * *

(e)  (1)  Not later than seventy-five (75) days after the

first public hearing on the application, the local [board of

school directors] school board shall grant or deny the

application. For a charter school beginning in the 1997-1998

school year, the local board of school directors shall grant or

deny the application no later than sixty (60) days after the

first public hearing.

(2)  A charter school application submitted under this

article shall be evaluated by the local [board of school

directors] school board based on criteria, including, but not

limited to, the following:

(i)  The demonstrated, sustainable support for the charter

school plan by teachers, parents, other community members and

students, including comments received at the public hearing held

under subsection (d).

(ii)  The capability of the charter school applicant, in

terms of support and planning, to provide comprehensive learning

experiences to students pursuant to the adopted charter.

(iii)  The extent to which the application considers the

information requested in section 1719-A and conforms to the

legislative intent outlined in section 1702-A.

(iv)  The extent to which the charter school may serve as a

model for other public schools.

(v)  The student performance baselines and objectives for

future student performance that will be used to evaluate the

charter school.

(3)  The local [board of school directors,] school board in

the case of an existing school being converted to a charter

school, shall establish the alternative arrangements for current

students who choose not to attend the charter school.

(4)  A charter application shall be deemed approved by the

local [board of] school [directors] board of a school district

upon affirmative vote by a majority of all the directors. Formal

action approving or denying the application shall be taken by

the local [board of] school [directors] board at a public

meeting, with notice or consideration of the application given

by the board, under the "Sunshine Act."

(5)  Written notice of the board's action shall be sent to

the applicant, the department and the appeal board. If the

application is denied, the reasons for the denial, including a

description of deficiencies in the application, shall be clearly

stated in the notice sent by the local [board of] school

[directors] board to the charter school applicant.

* * *

Section 9.  The act is amended by adding a section to read:

Section 1718.1-A.  Multiple Charter School Organization.--(a)

Two or more charter schools may merge or consolidate under 15

Pa.C.S. Pt.II Subpt. C (relating to nonprofit corporations) into

a multiple charter school organization. The multiple charter

school organization shall be granted a single charter to operate

two or more individual charter schools under the oversight of a

single board of trustees and a chief administrator who shall

oversee and manage the operation of the individual charter

schools under its organization. The multiple charter school

organization shall be considered a charter school as defined

under this article and shall be subject to all of the

requirements of this article unless otherwise provided for under

this section. Nothing in this section shall be construed to

affect or change the terms or conditions of any individual

charter previously granted that is consolidated under this

section.

(b)  The office shall develop and issue a standard

application form for multiple charter school organization

applicants, which shall contain the following information:

(1)  The identification of the multiple charter school

organization.

(2)  The names of the charter schools seeking merger or

consolidation under subsection (a).

(3)  A copy of the approved charters of each charter

school agreeing to merge or consolidate administrative

functions with the office under subsection (a).

(4)  An organization chart clearly presenting the

proposed governance structure of the multiple charter school

organization, including lines or authority and reporting

among the board of trustees, chief administrator,

administrators, staff and any educational management service

provider that will play a role in providing management

services to the charter schools under its jurisdiction.

(5)  A clear description of the roles and

responsibilities for the board of trustees, chief

administrator, administrators and any other entities,

including a charter school foundation, shown in the

organization chart.

(6)  A clear description and method for the appointment

or election of members of the board of trustees.

(7)  Standards for board performance, including

compliance with all applicable laws, regulations and terms of

the charter.

(8)  Enrollment procedures for each individual charter

school included in its charter.

(9)  Any other information as deemed necessary by the

office.

(c)  The office shall serve as the legal authorizer of a

multiple charter school organization.

(d)  A multiple charter school organization may:

(1)  Participate in the assessment systems in the same

manner in which a school district participates, and its

component schools shall participate in such assessment 

systems in the same manner as individual schools in school

districts. All data gathered for purposes of evaluation shall

be gathered in a like manner.

(2)  Add new charter schools to its organization.

(3)  Add existing charter schools to its organization or

amend the individual charters of each charter school under

its organization.

(4)  Allow students enrolled in an individual charter

school to matriculate to another individual charter school

under its oversight so as to complete a course of instruction

in an educational institution from kindergarten through grade

12.

(e)  An annual report shall be provided by the board of

trustees and chief administrator of the multiple charter school

organization and shall include all information required to

provide a basis for evaluation for renewal of each individual

charter school under the organization's oversight.

(f)  A multiple charter school organization shall be regarded

as the holder of the charter of each individual charter school

under its oversight, and each such previously or subsequently

awarded charter shall be subject to nonrenewal or revocation in

accordance with this act. The nonrenewal or revocation shall not

affect the status of a charter awarded for any other individual

charter school under its oversight.

Section 10.  Sections 1719-A and 1721-A(e) of the act, added

June 19, 1997 (P.L.225, No.22), are amended to read:

Section 1719-A.  Contents of Application.--[An] (a)  The

department shall develop and issue a standard application form

that shall be used by all applicants to establish a charter

school or cyber charter school. The application to establish a

charter school or cyber charter school shall include all of the

following information:

(1)  The identification of the charter or cyber charter

school applicant.

(2)  The name of the proposed charter school or cyber charter

school.

(3)  The grade or age levels served by the school.

(4)  [The proposed governance structure of the charter

school, including a description and method for the appointment

or election of members of the board of trustees.] An

organization chart clearly presenting the proposed governance

structure of the charter school or cyber charter school,

including lines of authority and reporting among the board of

trustees, administrators, staff and any educational service

provider that will play a role in providing management services

to the charter school or cyber charter school.

(4.1)  A clear description of the roles and responsibilities

for the board of trustees, administrators and any other

entities, including a charter school or cyber charter school

foundation, shown in the organization chart.

(4.2)  A clear description and method for the appointment or

election of members of the board of trustees.

(4.3)  Standards for board performance and stewardship,

including compliance with all applicable laws, regulations and

terms of the charter.

(4.4)  If the charter school or cyber charter school intends

to contract with an educational service provider for services,

the charter or cyber charter school applicant shall:

(i)  Provide evidence of the education service provider's

record in serving student populations, including demonstrated

academic achievement and demonstrated management of nonacademic

school functions, including proficiency with public school-based

accounting, if applicable.

(ii)  Provide a copy of the finalized management agreement,

which shall include all of the following:

(A)  The proposed duration of the service contract.

(B)  Roles and responsibilities of the governing board, the

school staff and the educational management service provider.

(C)  The scope of services and resources to be provided by

the educational management service provider.

(D)  Performance evaluation measures and timelines.

(E)  The compensation structure, including clear

identification of all fees to be paid to the educational

management service provider.

(F)  Methods of contract oversight and enforcement.

(G)  Investment disclosure or the advance of monies by the

educational management service provider on behalf of the charter

school or cyber charter school.

(H)  Conditions for renewal and termination of the contract.

(iii)  Disclose and explain any existing or potential

conflicts of interest between the board of trustees and proposed

educational service provider and any affiliated business

entities, including a charter school or cyber charter school

foundation.

(5)  The mission and education goals of the charter school or

cyber charter school, the curriculum to be offered and the

methods of assessing whether students are meeting educational

goals.

(6)  The admission policy and criteria for evaluating the

admission of students which shall comply with the requirements

of section 1723-A, including the maximum number of students the

school will enroll during each year of its charter.

(7)  Procedures which will be used regarding the suspension

or expulsion of pupils. Said procedures shall comply with

section 1318.

(8)  Information on the manner in which community groups will

be involved in the charter school planning process.

(9)  The financial plan for the charter school or cyber

charter school based on the projected range of the number of

students enrolled in the school during each year of the proposed

charter period and the provisions which will be made for

auditing the school under section 437, including the role of any

charter school or cyber charter school foundation.

(10)  Procedures which shall be established to review

complaints of parents regarding the operation of the charter

school or cyber charter school.

(11)  A description of and address of the physical facility

in which the charter school will be located and the ownership

thereof and any lease arrangements.

(12)  Information on the proposed school calendar for the

charter school or cyber charter school, including the length of

the school day and school year consistent with the provisions of

section 1502.

(13)  The proposed faculty and a professional development

plan for the faculty and staff of a charter school or cyber

charter school.

(14)  Whether any agreements have been entered into or plans

developed with the local school district regarding participation

of the charter school students in extracurricular activities

within the school district. Notwithstanding any provision to the

contrary, no school district of residence shall prohibit a

student of a charter school from participating in any

extracurricular activity of that school district of residence:

Provided, That the student is able to fulfill all of the

requirements of participation in such activity and the charter

school does not provide the same extracurricular activity.

(15)  A report of criminal history record, pursuant to

section 111, for all individuals who shall have direct contact

with students.

(16)  An official clearance statement regarding child injury

or abuse from the Department of Public Welfare as required by 23

Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for

employment in schools) for all individuals who shall have direct

contact with students.

(17)  How the charter school or cyber charter school will

provide adequate liability and other appropriate insurance for

the charter school or cyber charter school, its employes and the

board of trustees of the charter school or cyber charter school.

(18)  The proposed manner in which the charter school or

cyber charter school will assess student performance, including

the manner in which the State assessment set forth in 22 Pa.

Code Ch. 4 (relating to academic standards and assessment) will

be utilized.

(b)  A local school board may not impose additional terms or

require additional information outside the standard application

required under subsection (a).

Section 1721-A.  State Charter School Appeal Board.--* * *

(e)  Meetings of the appeal board shall be conducted under

[the act of July 3, 1986 (P.L.388, No.84), known as the

"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings). 

Documents of the appeal board shall be subject to the act of

[June 21, 1957 (P.L.390, No.212), referred to as the Right-to-

Know Law.] February 14, 2008 (P.L.6, No.3), known as the "Right-

to-Know Law."

Section 11.  Section 1722-A is amended by adding subsections

to read:

Section 1722-A.  Facilities.--* * *

(b.1)  (1)  Alcoholic beverages shall not be available for

consumption, purchase or sale in any charter school facility.

(2)  If the secretary reasonably believes that alcoholic

beverages have been made available for consumption, purchase or

sale in any charter school facility, the department shall order

the following forfeitures against the charter school:

(i)  One thousand dollars ($1,000) for a first violation.

(ii)  Five thousand dollars ($5,000) for a second or

subsequent violation.

The department shall deduct the amount of the forfeiture from

any and all State payments made to the charter school or order

school districts to redirect payments to the department that the

school district would have made to the charter school until the

department determines that the amount of the forfeiture has been

paid.

(3)  The charter school may appeal the order of the secretary

pursuant to 2 Pa.C.S. Chs. 5 (relating to practice and

procedure) and 7 (relating to judicial review).

(b.2)  A charter school facility shall not be located in a

building that is within three hundred (300) feet of a place that

has a liquor license. This subsection shall not apply to a

charter school facility in existence and operating on the

effective date of this subsection.

Section 12.  Section 1723-A(d) of the act, added July 9, 2008

(P.L.846, No.61), is amended to read:

Section 1723-A.  Enrollment.--* * *

(d)  (1)  Enrollment of students in a charter school or cyber

charter school shall not be subject to a cap or otherwise

limited by any past or future action of a [board of school

directors] local school board, a board of control established

under Article XVII-B, a special board of control established

under section 692 or any other governing authority, unless

agreed to by the charter school or cyber charter school as part

of a written charter pursuant to section 1720-A. A charter

school, cyber charter school or applicant for a charter school

or cyber charter school and the governing authority shall

negotiate maximum reasonable enrollment levels in good faith.

(2)  The provisions of this subsection shall apply to a

charter school or cyber charter school regardless of whether the

charter was approved prior to or is approved subsequent to the

effective date of this subsection.

Section 13.  Section 1724-A(g) and (i) of the act, added June

19, 1997 (P.L.225, No.22), are amended to read:

Section 1724-A.  School Staff.--* * *

(g)  [Professional] Except as provided under section 1743-A,

professional employes who hold a first level teaching or

administrative certificate may, at their option, have the time

completed in satisfactory service in a charter school applied to

the length of service requirements for the next level of

certification.

* * *

(i)  All individuals who shall have direct contact with

students or contact through electronic means via the Internet or

e-mail with students shall be required to submit a report of

criminal history record information as provided for in section

111 prior to accepting a position with the charter school or

cyber charter school. This subsection shall also apply to any

individual who volunteers to work on a full-time or part-time

basis at the charter school or cyber charter school.

* * *

Section 14.  Section 1725-A(a) of the act, amended June 29,

2002 (P.L.524, No.88), is amended to read:

Section 1725-A.  Funding for Charter Schools.--(a)  Funding

for a charter school shall be provided in the following manner,

except as provided under section 1753-A of this act for funding

for a cyber charter school:

(1)  There shall be no tuition charge for a resident or

nonresident student attending a charter school. A local school

district is not required to provide per pupil funding for a

resident or nonresident student attending a cyber charter

school.

(2)  For non-special education students enrolled in a charter

school that is not a cyber charter school, the charter school

shall receive for each student enrolled no less than the

budgeted total expenditure per average daily membership of the

prior school year, as defined in section 2501(20), minus the

budgeted expenditures of the district of residence for nonpublic

school programs; adult education programs; community/junior

college programs; student transportation services; for special

education programs; facilities acquisition, construction and

improvement services; and other financing uses, including debt

service and fund transfers as provided in the Manual of

Accounting and Related Financial Procedures for Pennsylvania

School Systems established by the department. This amount shall

be paid by the district of residence of each student or, upon

written request of the charter school, by the department to the

charter school in which a Pennsylvania resident student is

enrolled from any allocation for basic education funding to

which the school district in which the student resides is

entitled. The department shall establish payment guidelines and

notify the school district of receipt of a request for direct

payment by the department.

(3)  For special education students enrolled in a charter

school that is not a cyber charter school, the charter school

shall receive for each student enrolled the same funding as for

each non-special education student as provided in clause (2),

plus an additional amount determined by dividing the district of

residence's total special education expenditure by the product

of multiplying the combined percentage of section 2509.5(k)

times the district of residence's total average daily membership

for the prior school year, except that for students identified

as speech or language impaired, the charter school shall receive

for each student twenty per centum of the additional amount

calculated under this subsection. This amount shall be paid by

the district of residence of each student or, upon written

request of the charter school, by the department to the charter

school in which a Pennsylvania resident student is enrolled from

any allocation for basic education funding to which the school

district in which the student resides is entitled. The

department shall establish payment guidelines and notify the

school district of the receipt of a request for direct payment

by the department.

(4)  A charter school may request the intermediate unit in

which the charter school is located to provide services to

assist the charter school to address the specific needs of

exceptional students. The intermediate unit shall assist the

charter school and bill the charter school for the services. The

intermediate unit may not charge the charter school more for any

service than it charges the constituent districts of the

intermediate unit.

(5)  Payments shall be made to the charter school in twelve

(12) equal monthly payments, by the fifth day of each month,

within the operating school year, unless the charter school

receives direct payment from the department. A student enrolled

in a charter school shall be included in the average daily

membership of the student's district of residence for the

purpose of providing basic education funding payments and

special education funding pursuant to Article XXV, except that a

student enrolled in a cyber charter school shall not be included

in the average daily membership of the student's district of

residence. If a school district fails to make a payment to a

charter school as prescribed in this clause, the secretary shall

deduct the estimated amount, as documented by the charter

school, from any and all State payments made to the district

after receipt of documentation from the charter school.

(6)  Within thirty (30) days after the secretary makes the

deduction described in clause (5) or if the charter school

receives direct payment from the department, a school district

may notify the secretary that the deduction made from State

payments to the district under this subsection is inaccurate.

The secretary shall provide the school district with an

opportunity to be heard concerning whether the charter school

documented that its students were enrolled in the charter

school, the period of time during which each student was

enrolled; the school district of residence of each student and

whether the amounts deducted from the school district were

accurate.

* * *

Section 15.  Section 1726-A(a) of the act, amended July 9,

2008 (P.L.846, No.61), is amended to read:

Section 1726-A.  Transportation.--(a)  (1)  Students who

attend a charter school located in their school district of

residence, a regional charter school of which the school

district is a part or a charter school located outside district

boundaries at a distance not exceeding ten (10) miles by the

nearest public highway shall be provided free transportation to

the charter school by their school district of residence on such

dates and periods that the charter school is in regular session

whether or not transportation is provided on such dates and

periods to students attending schools of the district.

(2)  Transportation is not required for elementary students,

including kindergarten students, residing within one and one-

half (1.5) miles or for secondary students residing within two

(2) miles of the nearest public highway from the charter school

in which the students are enrolled unless the road or traffic

conditions are such that walking constitutes a hazard to the

safety of the students when so certified by the Department of

Transportation, except that if the school district provides

transportation to the public schools of the school district for