AN ACT

 

<-1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," in charter schools, further providing
6for funding for charter schools.

<-7Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
8act relating to the public school system, including certain
9provisions applicable as well to private and parochial
10schools; amending, revising, consolidating and changing the
11laws relating thereto," in terms and courses of study,
12further providing for agreements with institutions of higher
13education; in opportunities for educational excellence,
14further providing for definitions and for concurrent
15enrollment agreements; and extensively revising and adding
16charter school provisions.

17The General Assembly of the Commonwealth of Pennsylvania
18hereby enacts as follows:

<-19Section 1. Section 1725-A (a)(3) of the act of March 10,
201949 (P.L.30, No.14), known as the Public School Code of 1949,
21amended June 29, 2002 (P.L.524, No.88), is amended, subsection

1(a) is amended by adding a paragraph and the section is amended
2by adding a subsection to read:

3Section 1725-A. Funding for Charter Schools.--(a) Funding
4for a charter school shall be provided in the following manner:

5* * *

6(2.1) For the 2013-2014 school year and every school year
7thereafter, a cyber charter school shall receive for each
8student enrolled the same funding for each nonspecial education
9student as provided in clause (2), minus the budgeted
10expenditures of the district of residence for the full
11employer's share of retirement contributions paid to the Public
12School Employees' Retirement System.

13(3) For special education students, the charter school shall
14receive for each student enrolled the same funding as for each
15non-special education student as provided in clause (2) or
16(2.1), whichever is appropriate, plus an additional amount
17determined by dividing the district of residence's total special
18education expenditure by the product of multiplying the combined
19percentage of section 2509.5(k) times the district of
20residence's total average daily membership for the prior school
21year. This amount shall be paid by the district of residence of
22each student.

23* * *

24(f) The term "cyber charter school" shall mean an
25independent public school established and operated under a
26charter from the Department of Education and in which the school
27uses technology in order to provide a significant portion of its
28curriculum and to deliver a significant portion of instruction
29to its students through the Internet or other electronic means.
30A cyber charter school must be organized as a public, nonprofit

1corporation. A charter may not be granted to a for-profit
2entity.

3Section 2. This act shall take effect in 60 days.

<-4Section 1. Section 1525 of the act of March 10, 1949 
5(P.L.30, No.14), known as the Public School Code of 1949, added 
6July 4, 2004 (P.L.536, No.70), is amended to read:

7Section 1525. Agreements with Institutions of Higher
8Education.--Notwithstanding any other provision of law to the
9contrary, a school district, charter school, regional charter 
10school, cyber charter school or area vocational-technical school
11may enter into an agreement with one or more institutions of
12higher education approved to operate in this Commonwealth in
13order to allow [resident] students to attend such institutions
14of higher education while the [resident] students are enrolled
15in the school district, charter school, regional charter school, 
16cyber charter school or area vocational-technical school. The
17agreement may be structured so that high school students may
18receive credits toward completion of courses at the school
19district, charter school, regional charter school, cyber charter 
20school or area vocational-technical school and at institutions
21of higher education approved to operate in this Commonwealth.

22Section 2. The definitions of "concurrent student" and
23"school entity" in section 1602-B of the act, added July 13,
242005 (P.L.226, No.46), are amended to read:

25Section 1602-B. Definitions.

26The following words and phrases when used in this article
27shall have the meanings given to them in this section unless the
28context clearly indicates otherwise:

29* * *

30"Concurrent student." A student who is enrolled in a school

1district, a charter school, a regional charter school, a cyber 
2charter school, an area vocational-technical school, a nonpublic
3school, a private school or a home education program under
4section 1327.1 and who takes a concurrent course through a
5concurrent enrollment program.

6* * *

7"School entity." A school district, a charter school, a 
8regional charter school, a cyber charter school or an area
9vocational-technical school.

10* * *

11Section 3. Section 1613-B of the act is amended by adding a
12subsection to read:

13Section 1613-B. Concurrent enrollment agreements.

14* * *

15(c) Charter schools, regional charter schools and cyber
16charter schools.--Charter schools, regional charter schools and
17cyber charter schools shall have the power and authority to
18enter into a concurrent enrollment agreement with an institution
19of higher education, and appropriate credit shall be awarded to
20students concurrently enrolled under the agreement.

21Section 4. Section 1703-A of the act, amended June 29, 2002
22(P.L.524, No.88), is amended to read:

23Section 1703-A. Definitions.--As used in this article,

24"Administrator" shall include an employe of a charter school
25entity, including the chief administrator of a charter school
26entity and any other employe, who by virtue of the employe's
27position is responsible for taking official action of a
28nonministerial nature with regard to contracting or procurement,
29administering or monitoring grants or subsidies, managing or
30regulating staff, student and school activities or any activity

1where the official action has an economic impact of greater than
2a de minimis nature on the interests of any person.

3"Appeal board" shall mean the State Charter School Appeal
4Board established by this article.

5"Assessment" shall mean the Pennsylvania System of School
6Assessment test, the Keystone Exam or another test established
7by the State board to meet the requirements of section 2603-
8B(d)(10)(i) and required under the No Child Left Behind Act of
92001 (Public Law 107-110, 115 Stat. 1425) or its successor
10Federal statute.

11"At-risk student" shall mean a student at risk of educational
12failure because of limited English proficiency, poverty,
13community factors, truancy, academic difficulties or economic
14disadvantage.

15"Charter school" shall mean an independent public school
16established and operated under a charter from the local board of
17school directors and in which students are enrolled or attend. A
18charter school must be organized as a public, nonprofit
19corporation. Charters may not be granted to any for-profit
20entity.

21"Charter school entity" shall mean a charter school, regional
22charter school or cyber charter school.

23"Charter school foundation" shall mean a nonprofit
24organization under section 501(c)(3) of the Internal Revenue
25Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), that
26provides funding, resources or otherwise serves to support a
27charter school entity, either directly or through an affiliated
28entity.

29"Chief administrator" shall mean an individual appointed by a
30board of trustees to oversee and manage the operation of a

1charter school entity. The term shall not include a professional
2staff member under this article.

3["Chief executive officer" shall mean an individual appointed
4by the board of trustees to oversee and manage the operation of
5the charter school, but who shall not be deemed a professional
6staff member under this article.]

7"Cyber charter school" shall mean an independent public
8school established and operated under a charter from the
9Department of Education and in which the school uses technology
10in order to provide a significant portion of its curriculum and
11to deliver a significant portion of instruction to its students
12through the Internet or other electronic means. A cyber charter
13school must be organized as a public, nonprofit corporation. A
14charter may not be granted to a for-profit entity.

15"Department" shall mean the Department of Education of the
16Commonwealth.

17"Educational management service provider" shall mean a
18nonprofit charter management organization, for-profit education
19management organization, school design provider, business
20manager or any other partner entity with which a board of
21trustees of a charter school entity contracts to provide
22educational design, business services, comprehensive management
23or personnel functions or to implement the charter. The term
24shall not include a charter school foundation.

25"Immediate family member" shall mean a parent, spouse, child,
26brother or sister.

27"Local board of school directors" shall mean the board of
28directors, School Reform Commission or other governing authority
29of a school district in which a proposed or an approved charter
30school is located.

1"Nonrelated" shall mean an individual who is not an immediate
2family member.

3"Regional charter school" shall mean an independent public
4school established and operated under a charter from more than
5one local board of school directors and in which students are
6enrolled or attend. A regional charter school must be organized
7as a public, nonprofit corporation. Charters may not be granted
8to any for-profit entity.

9"School district of residence" shall mean the school district
10in this Commonwealth in which [the parents or guardians of a
11child reside] a child resides as determined under section 1302 
12and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of 
13resident children to attend public schools).

14"School entity" shall mean a school district, intermediate
15unit, joint school or area vocational-technical school.

16"Secretary" shall mean the Secretary of Education of the
17Commonwealth.

18"State board" shall mean the State Board of Education of the
19Commonwealth.

20Section 4.1. The act is amended by adding a section to read:

21Section 1704-A. Charter School Funding Advisory
22Commission.--(1) The Governor shall immediately convene a
23Statewide advisory commission, to be known as the Charter School
24Funding Advisory Commission, to examine the financing of charter
25schools, regional charter schools and cyber charter schools in
26the public education system. The commission shall examine how
27charter school, regional charter school and cyber charter school
28finances affect opportunities for teachers, parents, pupils and
29community members to establish and maintain schools that operate
30independently from the existing school district structure as a

1method to accomplish the requirements of section 1702-A. The
2Office of the Budget and the department shall provide
3administrative support, meeting space and any other assistance
4required by the commission to carry out its duties under this
5section.

6(2) The commission shall consist of the following members:

7(i) Three members of the Senate appointed by the President
8pro tempore of the Senate, in consultation with the Majority
9Leader of the Senate and the Minority Leader of the Senate, with
10two appointees from the majority party and one appointee from
11the minority party.

12(ii) Three members of the House of Representatives appointed
13by the Speaker of the House of Representatives, in consultation
14with the Majority Leader of the House of Representatives and the
15Minority Leader of the House of Representatives, with two
16appointees from the majority party and one appointee from the
17minority party.

18(iii) The secretary or a designee.

19(iv) To represent the interests of charter school entities,
20the following members, who shall be appointed by the Governor:

21(A) One member who shall represent charter schools.

22(B) One member who shall represent regional charter schools.

23(C) One member who shall represent cyber charter schools.

24(D) One member who shall be a teacher in a charter school
25entity.

26(E) One member who shall be a parent of a child attending a
27charter school entity.

28(v) To represent the interests of school districts, the
29following members, who shall be appointed by the Governor:

30(A) One member who shall be a teacher in a public school

1that is not a charter school entity.

2(B) One member who shall represent school administrators.

3(C) Two members who shall represent school board members.

4(D) One member who shall be a business manager of a school
5district.

6(vi) One member who shall represent an institution of higher
7education and who shall be appointed by the Governor.

8(3) Members of the commission shall be appointed within
9twenty (20) days of the effective date of this section. Any
10vacancy on the commission shall be filled by the original
11appointing authority. The commission shall select a chairman and
12vice chairman from among its membership at an organizational
13meeting. The organizational meeting shall take place not later
14than forty-five (45) days following the effective date of this
15section.

16(4) The commission shall hold meetings at the call of the
17chairman. The commission may also hold public hearings on the
18matters to be considered by the commission at locations
19throughout this Commonwealth. All meetings and public hearings
20of the commission shall be deemed public meetings for the
21purpose of 65 Pa.C.S. Ch. 7 (relating to open meetings). Ten
22(10) members of the commission shall constitute a quorum at any
23meeting. Each member of the commission may designate another
24person to represent that member at meetings of the commission.

25(5) Commission members shall receive no compensation for
26their services but shall be reimbursed by the department for all
27necessary travel and other reasonable expenses incurred in
28connection with the performance of their duties as members.
29Whenever possible, the commission shall utilize the services and
30expertise of existing personnel and staff of State government.

1The department may utilize undistributed funds not expended,
2encumbered or committed from appropriations for grants and
3subsidies made to the department, not to exceed three hundred
4thousand dollars ($300,000), to carry out this section.

5(6) The commission shall have the following powers and
6duties:

7(i) Meet with current charter school entity operators,
8school district personnel and representatives of institutions of
9higher education within this Commonwealth.

10(ii) Review charter school entity financing laws in
11operation throughout the United States.

12(iii) Explore the actual cost of educating a child in a
13cyber charter school.

14(iv) Evaluate and make recommendations on the following:

15(A) Consideration of establishing a higher education
16authorizer of charter school entities.

17(B) Appropriate assessment of fees on charter school
18entities for potentially funding a higher education authorizer
19of charter school entities, including review of independent
20authorizer fees and structures throughout the United States.

21(C) The process by which charter school entities are funded
22under section 1725-A, including the continuation of school
23district deductions for food services and for retirement
24contributions paid to the Public School Employees' Retirement
25System and addressing other potential funding inequities.

26(v) Issue a report pursuant to paragraph (7).

27(7) The commission shall, no later than March 31, 2014,
28issue a report of its findings and recommendations to the
29Governor, the President pro tempore of the Senate, the Majority
30Leader of the Senate, the Minority Leader of the Senate, the

1chairman and minority chairman of the Appropriations Committee
2of the Senate, the chairman and minority chairman of the
3Education Committee of the Senate, the Speaker of the House of
4Representatives, the Majority Leader of the House of
5Representatives, the Minority Leader of the House of
6Representatives, the chairman and minority chairman of the
7Appropriations Committee of the House of Representatives and the
8chairman and minority chairman of the Education Committee of the
9House of Representatives. The recommendations of the commission
10shall not take effect unless the recommendations are approved by
11an act of the General Assembly enacted after the effective date
12of this section.

13Section 5. Section 1715-A of the act, amended or added June
1419, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is
15amended to read:

16Section 1715-A. Charter School Entity Requirements.--(a) 
17Charter [schools] school entities shall be required to comply
18with the following provisions:

19(1) Except as otherwise provided in this article, a charter
20school entity is exempt from statutory requirements established
21in this act, from regulations of the State board and the
22standards of the secretary not specifically applicable to
23charter [schools] school entities. Charter [schools] school 
24entities are not exempt from statutes applicable to public
25schools other than this act.

26(2) A charter school entity shall be accountable to the
27parents, the public and the Commonwealth, with the delineation
28of that accountability reflected in the charter. Strategies for
29meaningful parent and community involvement shall be developed
30and implemented by each school.

1(3) A charter school entity shall not unlawfully
2discriminate in admissions, hiring or operation.

3(4) A charter school entity shall be nonsectarian in all
4operations.

5(5) (i) [A] Subject to subparagraph (ii), a charter school
6entity shall not provide any religious instruction, nor shall it
7display religious objects and symbols on the premises of the
8charter school[.] entity.

9(ii) It shall not be a violation of this paragraph for a
10charter school entity to utilize a sectarian facility:

11(A) if the charter school entity provides for discrete and
12separate entrances to buildings utilized for school purposes
13only;

14(B) if the religious objects and symbols within the portions
15of the facility utilized by the school are covered or removed to
16the extent reasonably feasible; or

17(C) in which the unused portion of the facility or its
18common areas contain religious symbols and objects.

19(6) A charter school entity shall not advocate unlawful
20behavior.

21(7) A charter school or regional charter school shall only
22be subject to the laws and regulations as provided for in
23section 1732-A, or as otherwise provided for in this [article]
24act.

25(7.1) A cyber charter school shall only be subject to the
26laws and regulations as provided for in section 1749-A, or as
27otherwise provided for in this act.

28(8) A charter school entity shall participate in [the
29Pennsylvania State Assessment System as provided for in 22 Pa.
30Code Ch. 5 (relating to curriculum), or subsequent regulations

1promulgated to replace 22 Pa. Code Ch. 5,] assessments in the
2manner in which the school district in which the charter school
3entity is located is scheduled to participate.

4(9) A charter school entity shall provide a minimum of one
5hundred eighty (180) days of instruction or nine hundred (900)
6hours per year of instruction at the elementary level, or nine
7hundred ninety (990) hours per year of instruction at the
8secondary level. Nothing in this clause shall preclude the use
9of computer and satellite linkages for delivering instruction to
10students.

11(10) Boards of trustees and contractors of charter [schools]
12school entities shall be subject to the following statutory
13requirements governing construction projects and construction-
14related work:

15(i) The following provisions of this act:

16(A) Sections 751 and 751.1.

17(B) Sections 756 and 757 insofar as they are consistent with
18the act of December 20, 1967 (P.L.869, No.385), known as the
19"Public Works Contractors' Bond Law of 1967."

20(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
21entitled "An act regulating the letting of certain contracts for
22the erection, construction, and alteration of public buildings."

23(iii) The act of August 11, 1961 (P.L.987, No.442), known as
24the "Pennsylvania Prevailing Wage Act."

25(iv) The "Public Works Contractors' Bond Law of 1967."

26(v) The act of March 3, 1978 (P.L.6, No.3), known as the
27"Steel Products Procurement Act."

28(11) Trustees of a charter school entity shall be public
29officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to 
30ethics standards and financial disclosure) and shall file a
 

1statement of financial interests for the preceding calendar year 
2with the State Ethics Commission and either the local board of 
3school directors in the case of a charter school or regional 
4charter school, or the department in the case of a cyber charter 
5school, not later than May 1 of each year that members hold the 
6position and of the year after a member leaves the position. All 
7members of the board of trustees of a charter school entity 
8shall take the oath of office as required under section 321 
9before entering upon the duties of their office.

10[(12) A person who serves as an administrator for a charter
11school shall not receive compensation from another charter
12school or from a company that provides management or other
13services to another charter school. The term "administrator"
14shall include the chief executive officer of a charter school
15and all other employes of a charter school who by virtue of
16their positions exercise management or operational oversight
17responsibilities. A person who serves as an administrator for a
18charter school shall be a public official under 65 Pa.C.S. Ch.
1911 (relating to ethics standards and financial disclosure). A
20violation of this clause shall constitute a violation of 65
21Pa.C.S. § 1103(a) (relating to restricted activities), and the
22violator shall be subject to the penalties imposed under the
23jurisdiction of the State Ethics Commission.]

24(b) An individual who serves as an administrator for a
25charter school entity shall be a public employe for the purposes
26of 65 Pa.C.S. Ch. 11 and shall file a statement of financial
27interests for the preceding calendar year with the board of
28trustees not later than May 1 of each year that the person holds
29the position and of the year after the person leaves the
30position.

1(c) (1) No individual who serves as an administrator for a
2charter school entity may receive compensation from another
3charter school entity or from an educational management service
4provider, unless:

5(i) The administrator has submitted a sworn statement to the
6board of trustees of the charter school entity and the sworn
7statement details the work for the other entity and includes the
8projected number of hours, rate of compensation and projected
9duration.

10(ii) The board of trustees of the charter school entity has
11reviewed the sworn statement under subclause (i) and agreed, by
12resolution, to grant permission to the administrator.

13(2) A copy of the sworn statement under clause (1)(i) and
14the resolution by the board of trustees granting the permission
15under clause (1)(ii) shall be provided to, and kept on file
16with, the charter school entity and the local board of school
17directors or, in the case of a cyber charter school, the
18department.

19(3) No administrator of a charter school entity or immediate
20family member of the administrator may serve as a voting member
21of the board of trustees of the charter school entity that
22employs the administrator.

23(4) (i) No administrator of a charter school entity may
24participate in the selection, award or administration of a
25contract if the person has a conflict of interest as that term
26is defined in 65 Pa.C.S. § 1102 (relating to definitions).

27(ii) An administrator who knowingly violates this clause
28commits a violation of 65 Pa.C.S. § 1103(a) (relating to
29restricted activities) and shall be subject to the penalties
30imposed under the jurisdiction of the State Ethics Commission.

1(iii) Any contract made in violation of this clause shall be
2voidable by the board of trustees of the charter school entity.

3(5) An administrator shall be immediately dismissed upon
4conviction for an offense graded as a felony, an infamous crime,
5an offense pertaining to fraud, theft or mismanagement of public
6funds or any crime involving moral turpitude.

7Section 6. Section 1716-A(c) of the act, added June 19, 1997
8(P.L.225, No.22), is amended and the section is amended by
9adding subsections to read:

10Section 1716-A. Powers of Board of Trustees.--* * *

11(b.1) (1) For a charter school or regional charter school
12chartered after the effective date of this subsection, an
13individual shall be prohibited from serving as a voting member
14of the board of trustees of the charter school or regional
15charter school if the individual or an immediate family member
16receives compensation from or is employed by or is a member of
17the local board of school directors who participated in the
18initial review, approval, oversight, evaluation or renewal
19process of the charter school or regional charter school
20chartered by that board.

21(2) An employe of the school district that chartered a
22charter school or regional charter school may serve as a member
23of the board of trustees of the charter school or regional
24charter school without voting privileges.

25(b.2) (1) No member of the board of trustees of a charter
26school entity may participate in the selection, award or
27administration of any contract if the member has a conflict of
28interest as that term is defined in 65 Pa.C.S. § 1102 (relating
29to definitions).

30(2) Any member of the board of trustees of a charter school

1entity who in the discharge of the person's official duties
2would be required to vote on a matter that would result in a
3conflict of interest shall abstain from voting and follow the
4procedures required under 65 Pa.C.S. § 1103(j) (relating to
5restricted activities).

6(3) A member of the board of trustees of a charter school
7entity who knowingly violates this subsection commits a
8violation of 65 Pa.C.S. § 1103(a) and shall be subject to the
9penalties imposed under the jurisdiction of the State Ethics
10Commission.

11(4) A contract made in violation of this subsection shall be
12voidable by a court of competent jurisdiction, if the suit is
13commenced within ninety (90) days of the making of the contract.

14(5) No member of the board of trustees of a charter school
15entity shall be compensated for duties on the board of trustees.

16(b.3) A member of the board of trustees of a charter school
17entity shall be automatically disqualified and immediately
18removed from the board of trustees upon conviction for an
19offense graded as a felony, an infamous crime, an offense
20pertaining to fraud, theft or mismanagement of public funds, any
21offense pertaining to his official capacity as a member of the
22board of trustees or any crime involving moral turpitude.

23(c) The board of trustees shall comply with [the act of July
243, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
25Pa.C.S. Ch. 7 (relating to open meetings).

26(d) (1) (i) The board of trustees of a charter school
27entity shall consist of a minimum of five (5) nonrelated voting
28members.

29(ii) If a charter school entity has fewer than five (5)
30nonrelated voting members serving on its board of trustees on

1the effective date of this subsection, the charter school entity
2shall, within sixty (60) days, appoint additional members to the
3board of trustees to meet the minimum requirements of this
4section.

5(2) Within one (1) year of the effective date of this
6subsection, at least one member of the board of trustees of a
7charter school entity shall be a parent of a child currently
8attending the charter school entity. The board of trustees
9member required by this paragraph shall be eligible to serve
10only so long as the child attends the charter school entity.

11(e) (1) A majority of the voting members of the board of
12trustees shall constitute a quorum. If less than a majority is
13present at any meeting, no business may be transacted at the
14meeting.

15(2) The affirmative vote of a majority of all the voting
16members of the board of trustees, duly recorded, shall be
17required in order to take official action on the subjects
18enumerated under subsection (a).

19Section 7. The act is amended by adding a section to read:

20Section 1716.1-A. Payment of Indebtedness by Charter School 
21Entities.--(a) The board of trustees of a charter school entity 
22shall supply the secretary and, in the case of a charter school 
23or regional charter school, the local board of school directors 
24a list of the amount of rental payments which are guarantees for 
25school building debt or bonds that become due during the fiscal 
26year together with the amount paid on each item of indebtedness. 
27Any charter school entity that elects to issue debt shall hold 
28in escrow an amount sufficient to pay the annual amount of the 
29sum of the principal maturing or subject to mandatory redemption 
30and interest owing by the charter school entity or sinking fund
 

1deposit due by the charter school entity.

2(b) (1) In any case where the board of trustees of a
3charter school entity fails to pay or to provide for the payment
4of:

5(i) any indebtedness at date of maturity or date of
6mandatory redemption or on any sinking fund deposit date; or

7(ii) any interest due on such indebtedness on any interest
8payment date or on any sinking fund deposit date in accordance
9with the schedule under which the bonds were issued,

10the bank or trustee for the bonds shall notify the board of
11trustees of its obligation and shall immediately notify the
12secretary and, in the case of a charter school or regional
13charter school, the local board of school directors.

14(2) The secretary shall withhold any payment due the charter
15school entity in any amount necessary to fully fund the amount
16held in escrow by the charter school entity which shall be equal
17to the sum of the principal amount maturing or subject to
18mandatory redemption and interest owing by the charter school
19entity or sinking fund deposit due by the charter school entity
20and shall require payover of the amount withheld to the bank or
21trustee acting as the sinking fund depositary for the bond issue
22from the escrow account.

23Section 8. Sections 1717-A(c), (d), (e) and (f) and 1719-A
24of the act, added June 19, 1997 (P.L.225, No.22), are amended to
25read:

26Section 1717-A. Establishment of Charter School.--* * *

27(c) An application to establish a charter school shall be
28submitted to the local board of school directors of the district
29where the charter school will be located by [November 15]
30October 1 of the school year preceding the school year in which

1the charter school will be established except that for a charter
2school beginning in the 1997-1998 school year, an application
3must be received by July 15, 1997. In the 1997-1998 school year
4only, applications shall be limited to recipients of fiscal year
51996-1997 Department of Education charter school planning
6grants.

7(d) Within forty-five (45) days of receipt of an
8application, the local board of school directors in which the
9proposed charter school is to be located shall hold at least one
10public hearing on the provisions of the charter application,
11under [the act of July 3, 1986 (P.L.388, No.84), known as the
12"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
13At least forty-five (45) days must transpire between the first
14public hearing and the final decision of the board on the
15charter application except that for a charter school beginning
16in the 1997-1998 school year, only thirty (30) days must
17transpire between the first public hearing and the final
18decision of the board.

19(e) (1) Not later than seventy-five (75) days after the
20first public hearing on the application, the local board of
21school directors shall grant or deny the application. For a
22charter school beginning in the 1997-1998 school year, the local
23board of school directors shall grant or deny the application no
24later than sixty (60) days after the first public hearing.

25(2) A charter school application submitted under this
26article shall be evaluated by the local board of school
27directors based on criteria, including, but not limited to, the
28following:

29(i) The demonstrated, sustainable support for the charter
30school plan by teachers, parents, other community members and

1students, including comments received at the public hearing held
2under subsection (d).

3(ii) The capability of the charter school applicant, in
4terms of support and planning, to provide comprehensive learning
5experiences to students pursuant to the adopted charter.

6(iii) The extent to which the application considers the
7information requested in section 1719-A and conforms to the
8legislative intent outlined in section 1702-A.

9(iv) The extent to which the charter school may serve as a
10model for other public schools.

11(3) The local board of school directors, in the case of an
12existing school being converted to a charter school, shall
13establish the alternative arrangements for current students who
14choose not to attend the charter school.

15(4) A charter application shall be deemed approved by the
16local board of school directors of a school district upon
17affirmative vote by a majority of all the directors. Formal
18action approving or denying the application shall be taken by
19the local board of school directors at a public meeting, with
20notice or consideration of the application given by the board,
21under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

22(5) Written notice of the board's action shall be sent to
23the applicant, the department and the appeal board. If the
24application is denied, the reasons for the denial, including a
25description of deficiencies in the application, shall be clearly
26stated in the notice sent by the local board of school directors
27to the charter school applicant.

28(f) At the option of the charter school applicant, a denied
29application may be revised and resubmitted to the local board of
30school directors. Following the appointment and confirmation of

1the Charter School Appeal Board under section 1721-A, the
2decision of the local board of school directors may be appealed
3to the appeal board. When an application is revised and
4resubmitted to the local board of school directors, the board
5may schedule additional public hearings on the revised
6application. The board shall consider the revised and
7resubmitted application at the first board meeting occurring at
8least forty-five (45) days after receipt of the revised
9application by the board. For a revised application resubmitted
10for the 1997-1998 school year, the board shall consider the
11application at the first board meeting occurring at least thirty
12(30) days after its receipt. The board shall provide notice of
13consideration of the revised application under [the "Sunshine
14Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local
15school board may be taken until July 1, 1999.

16* * *

17Section 1719-A. Contents of Application.--[An] (a) The 
18department shall create a standard application form for charter 
19school applicants seeking to establish a charter school entity 
20and for existing charter school entities seeking renewal of 
21their charters. The form shall be published in the Pennsylvania 
22Bulletin and posted on the department's publicly accessible 
23Internet website. The form shall include all of the following
24information:

25(1) The identification of the charter school applicant.

26(2) The name of the proposed charter school entity.

27(3) The grade or age levels served by the school.

28(4) [The proposed governance structure of the charter
29school, including a description and method for the appointment
30or election of members of the board of trustees.] An
 

1organization chart clearly presenting the proposed governance 
2structure of the school, including lines of authority and 
3reporting between the board of trustees, administrators, staff 
4and any educational management service provider that will 
5provide management services to the charter school entity.

6(4.1) A clear description of the roles and responsibilities
7of the board of trustees, administrators and any other entities,
8including a charter school foundation, shown in the organization
9chart.

10(4.2) A clear description of the method for the appointment
11or election of members of the board of trustees.

12(4.3) Standards for board of trustees performance, including
13compliance with all applicable laws, regulations and terms of
14the charter.

15(4.4) If the charter school entity intends to contract with
16an educational management service provider for services, all of
17the following:

18(i) Evidence of the educational management service
19provider's record in serving student populations, including
20demonstrated academic achievement and demonstrated management of
21nonacademic school functions, including proficiency with public
22school-based accounting, if applicable.

23(ii) A draft contract stating all of the following:

24(A) The officers, chief administrator and administrators of
25the educational management service provider.

26(B) The proposed duration of the service contract.

27(C) Roles and responsibilities of the board of trustees, the
28school staff and the educational management service provider.

29(D) The scope of services, personnel and resources to be
30provided by the educational management service provider.

1(E) Performance evaluation measures and timelines.

2(F) The compensation structure, including clear
3identification of all fees to be paid to the educational
4management service provider.

5(G) Methods of contract oversight and enforcement.

6(H) Investment disclosure or the advance of moneys by the
7educational management service provider on behalf of the charter
8school entity.

9(I) Conditions for renewal and termination of the contract.

10(iii) Disclosure and explanation of any existing or
11potential conflicts of interest between the members of the board
12of trustees and the proposed educational management service
13provider or any affiliated business entities, including a
14charter school foundation qualified as a support organization
15under the Internal Revenue Code of 1986 (Public Law 99-514, 26
16U.S.C. § 1 et seq.).

17(5) The mission and education goals of the charter school
18entity, the curriculum to be offered and the methods of
19assessing whether students are meeting educational goals.

20(6) The admission policy and criteria for evaluating the
21admission of students which shall comply with the requirements
22of section 1723-A.

23(7) Procedures which will be used regarding the suspension
24or expulsion of pupils. Said procedures shall comply with
25section 1318.

26(8) Information on the manner in which community groups will
27be involved in the charter school entity planning process.

28(9) The financial plan for the charter school entity and the
29provisions which will be made for auditing the school under
30[section] sections 437 and 1728-A, including the role of any
 

1charter school foundation.

2(10) Procedures which shall be established to review
3complaints of parents regarding the operation of the charter
4school entity.

5(11) A description of and address of the physical facility
6in which the charter school entity will be located and the
7ownership thereof and any lease arrangements.

8(12) Information on the proposed school calendar for the
9charter school entity, including the length of the school day
10and school year consistent with the provisions of section 1502.

11(13) The proposed faculty, if already determined, and a
12professional development and continuing education plan for the
13faculty and professional staff of [a] the charter school entity.

14(14) Whether any agreements have been entered into or plans
15developed with the local school district regarding participation
16of the charter school entity's students in extracurricular
17activities within the school district. Notwithstanding any
18provision to the contrary, no school district of residence shall
19prohibit a student of a charter school entity from participating
20in any extracurricular activity of that school district of
21residence: Provided, That the student is able to fulfill all of
22the requirements of participation in such activity and the
23charter school entity does not provide the same extracurricular
24activity.

25(15) A report of criminal history record, pursuant to
26section 111, for all individuals identified in the application
27who shall have direct contact with students and a plan for 
28satisfying the proper criminal history record clearances 
29required for all other staff.

30(16) An official clearance statement regarding child injury

1or abuse from the Department of Public Welfare as required by 23
2Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for
3employment in schools) for all individuals identified in the 
4application who shall have direct contact with students and a 
5plan for satisfying the proper official clearance statement 
6regarding child injury or abuse required for all other staff.

7(17) How the charter school entity will provide adequate
8liability and other appropriate insurance for the charter school
9entity, its employes and the board of trustees of the charter
10school entity.

11(18) Policies regarding truancy, absences and withdrawal of
12students, including the manner in which the charter school
13entity will monitor attendance consistent with section 1715-A(a)
14(9). The charter school entity's policy shall establish, to the
15satisfaction of the local board of school directors or, in the
16case of a cyber charter school, to the satisfaction of the
17department, that the charter school entity will comply with
18sections 1332 and 1333, including the institution of truancy
19proceedings when required under section 1333.

20(19) How the charter school entity will meet the standards
21included in the performance matrix developed by the State Board
22of Education under section 1731.2-A.

23(20) Indicate whether or not the charter school entity will
24seek accreditation by a nationally recognized accreditation
25agency, including the Middle States Association of Colleges and
26Schools or another regional institutional accrediting agency
27recognized by the United States Department of Education or an
28equivalent federally recognized body for charter school
29education.

30(b) A local board of school directors may not impose

1additional terms, develop its own application or require
2additional information outside the standard application form
3required under subsection (a).

4Section 9. Section 1720-A of the act, amended July 9, 2008,
5(P.L.846, No.61), is amended to read:

6Section 1720-A. Term and Form of Charter.--(a) (1) Upon
7approval of a charter application under section 1717-A, a
8written charter shall be developed which shall contain the
9provisions of the standardized charter application under section 
101719-A and which shall be signed by the local board of school
11directors of a school district, by the local boards of school
12directors of a school district in the case of a regional charter
13school or by the chairman of the appeal board pursuant to
14section [1717-A(i)(5)] 1717-A(i)(9) and the board of trustees of
15the charter school or regional charter school. This written
16charter, when duly signed by the local board of school directors
17of a school district, [or] by the local boards of school
18directors of a school district in the case of a regional charter
19school or by the chairman of the appeal board, and the charter 
20school or regional charter school's board of trustees, shall act
21as legal authorization for the establishment of a charter school 
22or regional charter school. This written charter shall be
23legally binding on both the local board of school directors of a
24school district and the charter school or regional charter 
25school's board of trustees. [Except as otherwise provided in
26subsection (b), the charter shall be for a period of no less
27than three (3) nor more than five (5) years and may be renewed
28for five (5) year periods upon reauthorization by the local
29board of school directors of a school district or the appeal
30board.] If the charter school or regional charter school
 

1contracts with an educational management service provider, a 
2contract shall be executed once the charter is approved. A
3charter will be granted only for a school organized as a public,
4nonprofit corporation.

5(2)  The following shall apply to all charters granted by a
6school district:

7(i)  An initial charter executed pursuant to section
81720-A(a)(1) shall be for a period of five (5) years.

9(ii)  Prior to the effective date of the regulations
10implementing the performance matrix as required pursuant to
11section 1731.2-A, a charter may be renewed for five (5) year
12periods upon reauthorization by the local board of school
13directors or other governing body of a school district or the
14appeal board.

15(iii)  Upon the effective date of the regulations
16implementing the performance matrix as required pursuant to
17section 1731.2-A, the following shall apply:

18(A)  For charter schools and regional charter schools that
19have satisfied the academic quality benchmark established by the
20State Board of Education pursuant to section 1731.2-A, a charter
21may be renewed for ten (10) year periods upon reauthorization by
22the local board of school directors or other governing body of a
23school district or the appeal board.

24(B)  For charter schools and regional charter schools that
25have not satisfied the academic quality benchmark established by
26the State Board of Education pursuant to section 1731.2-A, a
27charter may be renewed for five (5) year periods upon
28reauthorization by the local board of school directors or other
29governing body of a school district or the appeal board.

30[(b) (1) Notwithstanding subsection (a), a governing board

1of a school district of the first class may renew a charter for
2a period of one (1) year if the board of school directors
3determines that there is insufficient data concerning the
4charter school's academic performance to adequately assess that
5performance and determines that an additional year of
6performance data would yield sufficient data to assist the
7governing board in its decision whether to renew the charter for
8a period of five (5) years.

9(2) A one-year renewal pursuant to paragraph (1) shall not
10be considered an adjudication and may not be appealed to the
11State Charter School Appeal Board.

12(3) A governing board of a school district of the first
13class does not have the authority to renew a charter for
14successive one (1) year periods.]

15(c) (1) A charter school or regional charter school may
16request amendments to its approved written charter by filing a
17written document describing the requested amendment with the
18local board of school directors.

19(2) Within twenty (20) days of its receipt of the request
20for an amendment, the local board of school directors shall hold
21a public hearing on the requested amendment under 65 Pa.C.S. Ch.
227 (relating to open meetings).

23(3) Within twenty (20) days after the hearing, the local
24board of school directors shall grant or deny the requested
25amendment. Failure by the local board of school directors to
26hold a public hearing and to grant or deny the amendment within
27the time period specified in this subsection shall be deemed an
28approval.

29(4) An applicant for an amendment shall have the right to
30appeal the denial of a requested amendment to the appeal board

1provided for under section 1721-A.

2Section 10. Section 1721-A(a) and (e) of the act, added June
319, 1997 (P.L.225, No.22), are amended to read:

4Section 1721-A. State Charter School Appeal Board.--(a) The
5State Charter School Appeal Board shall consist of the Secretary
6of Education and [six (6)] the following members who shall be
7appointed by the Governor by and with the consent of a majority
8of all the members of the Senate. [Appointments by the Governor
9shall not occur prior to January 1, 1999.] The Governor shall
10select the chairman of the appeal board to serve at the pleasure
11of the Governor. The members shall include:

12(1) A parent of a school-aged child enrolled in a charter 
13school entity.

14(2) A school board member.

15(3) A certified teacher actively employed in a public
16school.

17(4) A faculty member or administrative employe of an
18institution of higher education.

19(5) A member of the business community.

20(6) A member of the State Board of Education.

21(7) An administrator of a charter school entity.

22(8) A member of the board of trustees of a charter school
23entity.

24The term of office of members of the appeal board, other than
25the secretary, shall be for a period of four (4) years or until
26a successor is appointed and qualified, except that, of the
27initial appointees, the Governor shall designate two (2) members
28to serve terms of two (2) years, two (2) members to serve terms
29of three (3) years and two (2) members to serve terms of four
30(4) years. A parent member appointed under paragraph (1) shall
 

1serve a term of four (4) years, provided the member's child 
2remains enrolled in the charter school entity. Any appointment
3to fill any vacancy shall be for the period of the unexpired
4term or until a successor is appointed and qualified.

5* * *

6(e) Meetings of the appeal board shall be conducted under 
7[the act of July 3, 1986 (P.L.388, No.84), known as the 
8"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings). 
9Documents of the appeal board shall be subject to the [act of 
10June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
11Know Law] act of February 14, 2008 (P.L.6, No.3), known as the 
12"Right-to-Know Law".

13Section 11. Section 1722-A(a), (b) and (d) of the act,
14amended November 17, 2010 (P.L.996, No.104), are amended and the
15section is amended by adding a subsection to read:

16Section 1722-A. Facilities.--(a) A charter school entity
17may be located in an existing public school building, in a part
18of an existing public school building, in space provided on a
19privately owned site, in a public building or in any other
20suitable location.

21(b) The charter school entity facility shall be exempt from
22public school facility regulations except those pertaining to
23the health or safety of [the pupils] students.

24(d) Notwithstanding any other provision of this act, a
25school district [of the first class] may, in its discretion,
26permit a charter school or regional charter school to operate
27its school at more than one location.

28* * *

29(f) (1) Alcoholic beverages shall not be available for
30consumption, purchase or sale in any charter school entity

1facility.

2(2) If, in the case of a charter school or regional charter
3school, the local board of school directors reasonably believes
4that alcoholic beverages have been made available for
5consumption, purchase or sale in the charter school or regional
6charter school facility, the local board of school directors
7shall notify the department.

8(3) If alcoholic beverages have been made available for
9consumption, purchase or sale in a charter school entity
10facility, the secretary shall order the following forfeitures
11against the charter school entity:

12(i) A fine of one thousand dollars ($1,000) for the first
13violation.

14(ii) A fine of five thousand dollars ($5,000) for the second
15or subsequent violation.

16(4) The charter school entity may appeal the order of the
17secretary under 2 Pa.C.S. Chs. 5 (relating to practice and
18procedure) and 7 (relating to judicial review).

19Section 12. Section 1723-A(a) and (d) of the act, amended or
20added June 26, 1999 (P.L.394, No.36) and July 9, 2008 (P.L.846,
21No.61), are amended to read:

22Section 1723-A. Enrollment.--(a) All resident children in
23this Commonwealth qualify for admission to a charter school
24entity within the provisions of subsection (b). If more students
25apply to the charter school entity than the number of attendance
26slots available in the school, then students must be selected on
27a random basis from a pool of qualified applicants meeting the
28established eligibility criteria and submitting an application
29by the deadline established by the charter school entity, except
30that the charter school entity may give preference in enrollment

1to a child of a parent who has actively participated in the
2development of the charter school [and] entity, to siblings of
3students presently enrolled in the charter school entity and to 
4siblings of students selected for enrollment during the lottery 
5process. First preference shall be given to students who reside
6in the district or districts in which the charter school entity 
7is physically located.

8* * *

9(d) (1) Enrollment of students in a charter school, 
10regional charter school or cyber charter school shall not be
11subject to a cap or otherwise limited by any past or future
12action of a board of school directors, a board of control
13established under Article XVII-B, a special board of control
14established under section 692 or any other governing authority[,
15unless agreed to by the charter school or cyber charter school
16as part of a written charter pursuant to section 1720-A].

17(2) The provisions of this subsection shall apply to a
18charter school, regional charter school or cyber charter school
19regardless of whether the charter was approved prior to or is
20approved subsequent to the effective date of this subsection.

21Section 13. Section 1725-A of the act, amended or added June
2219, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and
23June 29, 2002 (P.L.524, No.88), is amended to read:

24Section 1725-A. Funding for Charter [Schools] School 
25Entities.--(a) Funding for a charter school entity shall be
26provided in the following manner:

27(1) There shall be no tuition charge for a resident or
28nonresident student attending a charter school entity.

29(2) [For non-special education students, the charter school
30shall receive for each student enrolled no less than the

1budgeted total expenditure per average daily membership of the
2prior school year, as defined in section 2501(20), minus the
3budgeted expenditures of the district of residence for nonpublic
4school programs; adult education programs; community/junior
5college programs; student transportation services; for special
6education programs; facilities acquisition, construction and
7improvement services; and other financing uses, including debt
8service and fund transfers as provided in the Manual of
9Accounting and Related Financial Procedures for Pennsylvania
10School Systems established by the department. This amount shall
11be paid by the district of residence of each student.] For non-
12special education students, the charter school entity shall 
13receive for each student enrolled the following, which shall be 
14paid by the school district of residence of each student by 
15deduction and transfer from all State payments due to the school 
16district of residence as provided for under clause (5):

17(i) Subject to clause (ii), no less than the budgeted total
18expenditure per average daily membership of the prior school
19year, as defined in section 2501(20), minus the budgeted
20expenditures of the district of residence for nonpublic school
21programs; adult education programs; community/junior college
22programs; student transportation services; for special education
23programs; facilities acquisition, construction and improvement
24services; and other financing uses, including debt service and
25fund transfers as provided in the Manual of Accounting and
26Related Financial Procedures for Pennsylvania School Systems
27established by the department.

28(ii) Beginning in the 2013-2014 school year and through and
29including the 2014-2015 school year, the following:

30(A) For each student enrolled in a charter school or

1regional charter school, no less than the budgeted total
2expenditure per average daily membership of the prior school
3year, as defined in section 2501(20), minus the budgeted
4expenditures of the district of residence for nonpublic school
5programs; adult education programs; community/junior college
6programs; student transportation services; special education
7programs; facilities acquisition, construction and improvement
8services; and other financing uses, including debt service and
9fund transfers as provided in the Manual of Accounting and
10Related Financial Procedures for Pennsylvania School Systems
11established by the department.

12(B) For each student enrolled in a cyber charter school, no
13less than the budgeted total expenditure per average daily
14membership of the prior school year, as defined in section
152501(20), minus the budgeted expenditures of the district of
16residence for nonpublic school programs; adult education
17programs; community/junior college programs; student
18transportation services; special education programs; facilities
19acquisition, construction and improvement services; other
20financing uses, including debt service and fund transfers as
21provided in the Manual of Accounting and Related Financial
22Procedures for Pennsylvania School Systems established by the
23department; food services; and the full employer's share of
24retirement contributions paid to the Public School Employees'
25Retirement System.

26(2.1) The amount under clause (2) shall be calculated by
27each school district on a form prescribed by the secretary in
28accordance with this section. The secretary, upon receipt of a
29school district's calculation, shall review the school
30district's calculation and may request supporting documentation

1from the school district regarding its calculation. If the
2secretary finds an error or discrepancy in a school district's
3calculation, the secretary shall require the school district to
4correct the calculation and require the school district to
5notify affected charter school entities.

6(3) [For special education students, the charter school
7shall receive for each student enrolled the same funding as for
8each non-special education student as provided in clause (2),
9plus an additional amount determined by dividing the district of
10residence's total special education expenditure by the product
11of multiplying the combined percentage of section 2509.5(k)
12times the district of residence's total average daily membership
13for the prior school year. This amount shall be paid by the
14district of residence of each student.] For special education 
15students, the charter school entity shall receive for each 
16student enrolled the same funding as for each non-special 
17education student as provided under clause (2), plus an 
18additional amount determined by dividing the total special 
19education expenditure of the school district of residence by the 
20product of:

21(i) the combined percentage of section 2509.5(k) applicable
22to the school year; and

23(ii) the total average daily membership of the school
24district of residence for the prior school year.

25(3.1) The following apply:

26(i) The amount under clauses (2) and (3) shall be paid by
27the school district of residence of each student by deduction
28and transfer from all State payments due to the school district
29of residence as provided under clause (5).

30(ii) If a charter school entity disputes the accuracy of a

1school district's calculation under clauses (2) and (3), the
2charter school entity shall file a notice of the dispute with
3the secretary, who shall hold a hearing to determine the
4accuracy of the school district's calculation within thirty (30)
5days of the notice.

6(iii) The secretary shall determine the accuracy of the
7school district's calculation and make any necessary billing
8adjustment within thirty (30) days of the hearing.

9(iv) The school district shall bear the burden of production
10and proof with respect to its calculation under this clause.

11(v) The school district shall be liable for the reasonable
12legal fees incurred by a charter school entity if the charter
13school entity is the substantially prevailing party after a
14hearing under this section. The charter school entity shall be
15liable for the reasonable legal fees incurred by the school
16district if the school district is the substantially prevailing
17party after a hearing under this section.

18(vi) All decisions of the secretary under this clause shall
19be subject to appellate review by Commonwealth Court.

20(4) [A charter school may request the intermediate unit in
21which the charter school is located to provide services to
22assist the charter school to address the specific needs of
23exceptional students. The intermediate unit shall assist the
24charter school and bill the charter school for the services. The
25intermediate unit may not charge the charter school more for any
26service than it charges the constituent districts of the
27intermediate unit.] A charter school entity may request the 
28intermediate unit or school district in which the charter school 
29entity is located to provide services to assist the charter 
30school entity to address the specific needs of non-special
 

1education and special education students. The intermediate unit 
2or school district shall assist the charter school entity and 
3bill the charter school entity for the services. The 
4intermediate unit may not charge the charter school entity more 
5for any service than it charges the constituent districts of the 
6intermediate unit. Nothing under this clause shall preclude an 
7intermediate unit or school district from contracting with a 
8charter school entity to provide the intermediate unit or school 
9district with services to assist the intermediate unit or school 
10district to address specific needs of non-special education and 
11special education students.

12(5) [Payments shall be made to the charter school in twelve
13(12) equal monthly payments, by the fifth day of each month,
14within the operating school year. A student enrolled in a
15charter school shall be included in the average daily membership
16of the student's district of residence for the purpose of
17providing basic education funding payments and special education
18funding pursuant to Article XXV. If a school district fails to
19make a payment to a charter school as prescribed in this clause,
20the secretary shall deduct the estimated amount, as documented
21by the charter school, from any and all State payments made to
22the district after receipt of documentation from the charter
23school.] Beginning in the 2013-2014 school year, the following 
24apply:

25(i) Payments shall be made to the charter school entity in
26twelve (12) equal monthly payments, according to the established
27monthly unipay schedule within the operating school year or any
28subsequent school year.

29(ii) Except as provided for in subclause (v), payments shall
30be made directly by the secretary deducting and paying to the

1charter school entity the estimated amount, as documented by the
2charter school entity, from:

3(A) all State payments due to the school district of
4residence; or

5(B) if no payments are due to the school district of
6residence, from all State payments reasonably expected to be due
7in the next established monthly unipay schedule, after receipt
8of documentation from the charter school entity as to its
9enrollment.

10(iii) At least thirty (30) days prior to the scheduled
11payment date each month, a charter school entity shall provide
12to the department and to the school district of residence of
13each student enrolled in the charter school entity documentation
14of the charter school entity's enrollment, on a form to be
15developed by the secretary within sixty (60) days of the
16effective date of this section. The form, which shall be
17developed in consultation with representatives of charter school
18entities and school districts, shall require the charter school
19entity to provide to the department and to the school district
20of residence of each student enrolled in the charter school
21entity, documentation of each student's current enrollment in
22the charter school entity and current residence in the school
23district, including the following information:

24(A) Student's name.

25(B) Student's home address.

26(C) Name and telephone number of student's parent or
27guardian.

28(D) Student's date of birth.

29(E) Student's grade level.

30(F) Type of school in which student was previously enrolled.

1(G) Student's date of enrollment.

2(H) Whether each student is being educated under an
3individualized education plan under the Individuals with
4Disabilities Education Act (Public Law 91-230, 20 U.S.C. § 1400
5et seq.).

6(I) The tuition amount due on account of each student.

7(J) The total amount due from the school district for that
8month.

9(K) Copies of the actual documents used by the charter
10school entity to verify each student's residence in the school
11district.

12The secretary shall not make payments under this section until
13the charter school entity provides the department and the school
14district or residence with a completed form and accompanying
15documentation as required under this clause. A charter school
16entity may make only one (1) payment request per month under
17this clause. After a charter school entity makes a payment
18request under this clause, any necessary corrections or
19adjustments may be made in the next subsequent monthly payment
20request.

21(iv) The secretary's obligation to make payments under this
22section is mandatory and ministerial, except that payments made
23pursuant to this section shall not be given priority over
24payments required pursuant to sections 633 and 785 and 53
25Pa.C.S. § 8125(b) (relating to security for tax anticipation
26notes and sinking fund), or an agreement pursuant to which the
27Commonwealth is required to make payment to a holder of debt
28issued by or on behalf of a school entity. If payments required
29under sections 633 and 785 and 53 Pa.C.S. § 8125(b) preclude the
30timely payment of funds to a charter school entity under section

11725-A or will cause the board of school directors of a school
2district to fail to pay or provide for payment under this
3subsection, nothing shall preclude the secretary from
4withholding funds from any and all State payments made to the
5school district for the operating school year or for any
6subsequent operating school year.

7(v) If there are insufficient State payments due to a school
8district in the established monthly unipay schedule to cover all
9charter school entity deductions and transfers, the school
10district shall be responsible for paying the unpaid balance
11directly to the charter school entity not more than ten (10)
12days following the established monthly unipay schedule.

13(vi) A student enrolled in a charter school entity shall be
14included in the average daily membership of the student's school
15district of residence for the purpose of providing basic
16education funding payments and special education funding under
17Article XXV.

18(6) [Within thirty (30) days after the secretary makes the
19deduction described in clause (5), a school district may notify
20the secretary that the deduction made from State payments to the
21district under this subsection is inaccurate. The secretary
22shall provide the school district with an opportunity to be
23heard concerning whether the charter school documented that its
24students were enrolled in the charter school, the period of time
25during which each student was enrolled, the school district of
26residence of each student and whether the amounts deducted from
27the school district were accurate.] The following apply:

28(i) Within thirty (30) days after the payment is made to the
29charter school entity as described under clause (5), a school
30district may notify the secretary that the estimated amount, as

1documented by the charter school entity, is inaccurate.

2(ii) Within thirty (30) days of the notice by the school
3district under subclause (i), the secretary shall provide the
4school district with a hearing concerning whether the charter
5school entity documented that students were enrolled in the
6charter school entity, the period of time during which each
7student was enrolled in the charter school entity, the school
8district of residence of each student enrolled in the charter
9school entity and whether the amounts deducted from or paid by
10the school district were accurate.

11(iii) The burden of proof and production at the hearing
12shall be on the school district. A hearing shall not be held
13before the secretary deducts and transfers to the charter school
14entity the amount estimated by the charter school entity.

15(iv) The secretary shall determine the accuracy of the
16amount documented by the charter school entity and make any
17necessary payment adjustment within thirty (30) days of the
18hearing.

19(v) The school district shall be liable for the reasonable
20legal fees incurred by a charter school entity if the charter
21school entity is the substantially prevailing party after a
22hearing under this section. The charter school entity shall be
23liable for the reasonable legal fees incurred by the school
24district if the school district is the substantially prevailing
25party after a hearing under this section.

26(vi) All decisions of the secretary under this section shall
27be subject to appellate review by Commonwealth Court.

28(vii) Supersedeas shall not be granted to the secretary or
29any party to the proceeding on an appeal from the decision of
30the secretary under this section; and, absent a court order, the

1secretary shall not hold any payments in escrow.

2[(b) The Commonwealth shall provide temporary financial
3assistance to a school district due to the enrollment of
4students in a charter school who attended a nonpublic school in
5the prior school year in order to offset the additional costs
6directly related to the enrollment of those students in a public
7charter school. The Commonwealth shall pay the school district
8of residence of a student enrolled in a nonpublic school in the
9prior school year who is attending a charter school an amount
10equal to the school district of residence's basic education
11subsidy for the current school year divided by the district's
12average daily membership for the prior school year. This payment
13shall occur only for the first year of the attendance of the
14student in a charter school, starting with school year 1997-
151998. Total payments of temporary financial assistance to school
16districts on behalf of a student enrolling in a charter school
17who attended a nonpublic school in the prior school year shall
18be limited to funds appropriated for this program in a fiscal
19year. If the total of the amount needed for all students
20enrolled in a nonpublic school in the prior school year who
21enroll in a charter school exceeds the appropriation for the
22temporary financial assistance program, the amount paid to a
23school district for each qualifying student shall be pro rata
24reduced. Receipt of funds under this subsection shall not
25preclude a school district from applying for a grant under
26subsection (c).

27(c) The Commonwealth shall create a grant program to provide
28temporary transitional funding to a school district due to the
29budgetary impact relating to any student's first-year attendance
30at a charter school. The department shall develop criteria which

1shall include, but not be limited to, the overall fiscal impact
2on the budget of the school district resulting from students of
3a school district attending a charter school. The criteria shall
4be published in the Pennsylvania Bulletin. This subsection shall
5not apply to a public school converted to a charter school under
6section 1717-A(b). Grants shall be limited to funds appropriated
7for this purpose.]

8(d) It shall be lawful for any charter school entity to
9receive, hold, manage and use, absolutely or in trust, any
10devise, bequest, grant, endowment, gift or donation of any
11property, real or personal and/or mixed, which shall be made to
12the charter school entity for any of the purposes of this
13article.

14(e) It shall be unlawful for any trustee of a charter school
15entity or any board of trustees of a charter school entity or
16any other person affiliated in any way with a charter school
17entity to demand or request, directly or indirectly, any gift,
18donation or contribution of any kind from any parent, teacher,
19employe or any other person affiliated with the charter school
20entity as a condition for employment or enrollment and/or
21continued attendance of any pupil. Any donation, gift or
22contribution received by a charter school entity shall be given
23freely and voluntarily.

24(f) A charter school entity may not provide discounts to a
25school district or waive payments under this section for any
26student.

27Section 14. Section 1728-A of the act, added June 19, 1997,
28(P.L.225, No.22), is amended to read:

29Section 1728-A. Annual Reports and Assessments.--(a) (1)
30The local board of school directors shall annually assess

1whether each charter school or regional charter school is
2meeting the goals of its charter and shall conduct a
3comprehensive review prior to [granting a five (5) year renewal
4of the charter] renewing the charter pursuant to section 1720-
5A(a)(2). The local board of school directors shall have ongoing
6access to the records and facilities of the charter school or 
7regional charter school to ensure that the charter school or 
8regional charter school is in compliance with its charter and
9this act and that requirements for testing, civil rights and
10student health and safety are being met.

11(2) Ongoing access to a charter school's or regional charter
12school's records shall mean that the local board of school
13directors shall have access to records such as financial
14reports, financial audits, aggregate standardized test scores
15without student-identifying information and teacher
16certification and personnel records.

17(3) Charter schools and regional charter schools shall
18comply fully with the requirements of the Family Educational
19Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. §
201232g) and associated regulations. No personally identifiable
21information from education records shall be provided by the
22charter school or regional charter school to the school district
23except in compliance with the Family Educational Rights and
24Privacy Act of 1974.

25(b) In order to facilitate the local board's review and
26secretary's report, each charter school or regional charter 
27school shall submit an annual report no later than August 1 of
28each year to the local board of school directors and the
29secretary in the form prescribed by the secretary.

30[(c) Five (5) years following the effective date of this

1article, the secretary shall contract with an independent
2professional consultant with expertise in public and private
3education. The consultant shall receive input from members of
4the educational community and the public on the charter school
5program. The consultant shall submit a report to the secretary,
6the Governor and the General Assembly and an evaluation of the
7charter school program, which shall include a recommendation on
8the advisability of the continuation, modification, expansion or
9termination of the program and any recommendations for changes
10in the structure of the program.]

11(d) A charter school entity shall form an independent audit
12committee of its board of trustees members which shall review at
13the close of each fiscal year a complete certified audit of the
14operations of the charter school entity. The audit shall be
15conducted by a qualified independent certified public
16accountant. The audit shall be conducted under generally
17accepted audit standards of the Governmental Accounting
18Standards Board and shall include the following:

19(1) An enrollment test to verify the accuracy of student
20enrollment and reporting to the State.

21(2) Full review of expense reimbursements for board of
22trustees members and administrators, including sampling of all
23reimbursements.

24(3) Review of internal controls, including review of
25receipts and disbursements.

26(4) Review of annual Federal and State tax filings,
27including the Internal Revenue Service Form 990, Return of
28Organization Exempt from Income Tax and all related schedules
29and appendices for the charter school entity and charter school
30foundation, if applicable.

1(5) Review of the financial statements of any charter school
2foundation.

3(6) Review of the selection and acceptance process of all
4contracts publicly bid pursuant to section 751.

5(7) Review of all board policies and procedures with regard
6to internal controls, code of ethics, conflicts of interest,
7whistle-blower protections, complaints from parents or the
8public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
9meetings), finances, budgeting, audits, public bidding and
10bonding.

11(e) The certified audit under subsection (d) and the annual
12budget under subsection (g) are public documents and shall be
13made available on the charter school entity's publicly
14accessible Internet website, if available, and, in the case of a
15charter school or regional charter school, on the school
16district's publicly accessible Internet website.

17(f) A charter school entity may be subject to an annual
18audit by the Auditor General, in addition to any other audits
19required by Federal law or this article.

20(g) A charter school entity shall annually provide the
21department and, in the case of a charter school or regional
22charter school, shall annually provide the school district, with
23a copy of the annual budget for the operation of the charter
24school entity that identifies the following:

25(1) The source of funding for all expenditures.

26(2) Where funding is provided by a charter school
27foundation, the amount of funds and a description of the use of
28the funds.

29(3) The salaries of all administrators of the charter school
30entity.

1(4) All expenditures to an educational management service
2provider.

3(h) (1) Notwithstanding any other provision of law, a
4charter school entity and any affiliated charter school
5foundation shall make copies of its annual Federal and State tax
6filings available upon request and on the charter school
7entity's or foundation's publicly accessible Internet website,
8if available, including Internal Revenue Service Form 990,
9Return of Organization Exempt from Income Tax and all related
10schedules and appendices.

11(2) The charter school foundation shall also make copies of
12its annual budget available upon request and on the foundation's
13or the charter school entity's publicly accessible Internet
14website within thirty (30) days of the close of the foundation's
15fiscal year.

16(3) The annual budget shall include the salaries of all
17employes of the charter school foundation.

18Section 15. Section 1729-A(a), (b) and (c) of the act, added
19June 19, 1997 (P.L.225, No.22), are amended to read:

20Section 1729-A. Causes for Nonrenewal or Termination.--(a)
21During the term of the charter or at the end of the term of the
22charter, the local board of school directors may choose to
23revoke or not to renew the charter based on any of the
24following:

25(1) One or more material violations of any of the
26conditions, standards or procedures contained in the written
27charter signed pursuant to section 1720-A.

28(2) Failure to meet the requirements for student performance
29[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
30subsequent regulations promulgated to replace 22 Pa. Code Ch. 5]
 

1on assessments or failure to meet any performance standard set
2forth in the written charter signed pursuant to section [1716-A]
31720-A.

4(3) Failure to meet generally accepted standards of fiscal
5management or audit requirements.

6(4) Violation of provisions of this article.

7(5) Violation of any provision of law from which the charter
8school entity has not been exempted, including Federal laws and
9regulations governing children with disabilities.

10[(6) The charter school has been convicted of fraud.]

11* * *

12(b) [A member of the board of trustees who is convicted of a
13felony or any crime involving moral turpitude shall be
14immediately disqualified from serving on the board of trustees.]
15If, after a hearing under this section, a local board of school 
16directors or, in the case of a cyber charter school, the 
17department, proves by a preponderance of the evidence that an 
18administrator or board member of a charter school entity has 
19violated this article, the terms and conditions of the charter 
20or any other law, the local board of school directors or, in the 
21case of a cyber charter school, the department may require the 
22charter school entity to replace an administrator or board of 
23trustees member in order to obtain renewal of the charter. The 
24local board of school directors or, in the case of a cyber 
25charter school, the department may refer its findings to the 
26district attorney with jurisdiction or to the Office of Attorney 
27General for prosecution if the local board of school directors 
28or, in the case of a cyber charter school, the department 
29discovers or receives information about possible violations of 
30law by any person affiliated with or employed by a charter
 

1school entity.

2(c) Any notice of revocation or nonrenewal of a charter
3given by the local board of school directors of a school
4district shall state the grounds for such action with reasonable
5specificity and give reasonable notice to the [governing] board
6of trustees of the charter school or regional charter school of
7the date on which a public hearing concerning the revocation or
8nonrenewal will be held. The local board of school directors
9shall conduct such hearing, present evidence in support of the
10grounds for revocation or nonrenewal stated in its notice and
11give the charter school or regional charter school reasonable
12opportunity to offer testimony before taking final action.
13Formal action revoking or not renewing a charter shall be taken
14by the local board of school directors at a public meeting held
15pursuant to [the act of July 3, 1986 (P.L.388, No.84), known as
16the "Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating to open 
17meetings) after the public has had thirty (30) days to provide
18comments to the board. All proceedings of the local board
19pursuant to this subsection shall be subject to 2 Pa.C.S. Ch. 5
20Subch. B (relating to practice and procedure of local agencies).
21Except as provided in subsection (d), the decision of the local
22board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B (relating
23to judicial review of local agency action).

24* * *

25Section 16. The act is amended by adding sections to read:

26Section 1729.1-A. Evaluation of Educators.--(a) All
27applications by a charter school entity for a charter or for the
28renewal of a charter shall include a system of evaluation for
29educators that includes both of the following:

30(1) At least four (4) rating categories of educator

1performance.

2(2) Multiple measures of student performance which shall
3include, but may not be limited to, value-added assessment
4system data made available by the department under section 221
5and student performance on the most recent assessments for which
6results have been released by the department and may include
7goals specific to the mission of the charter school entity's
8charter.

9(b) Nothing in this section shall preempt the powers of a
10board of trustees under section 1716-A(a) nor affect the intent
11of the General Assembly provided in section 1702-A(3) and (4).

12Section 1729.2-A. Multiple Charter School Organizations.--
13(a) Establishment shall be as follows:

14(1) Subject to the requirements of this section and 15
15Pa.C.S. Pt. II Subpt. C (relating to nonprofit corporations),
16two (2) or more charter schools may consolidate into a multiple
17charter school organization if both of the following apply:

18(i) The department approves the consolidation as proposed in
19the application form submitted to the department pursuant to
20subsection (c).

21(ii) Each school district that granted the initial charter
22of any charter school included in the proposed consolidation
23approves, by a majority vote of the local board of school
24directors, a resolution approving the consolidation as proposed
25in the application submitted to the local board of school
26directors pursuant to subsection (c). If a local board of school
27directors does not adopt a resolution under this clause
28approving or rejecting the proposed consolidation within forty-
29five (45) days after receipt of the application, the school
30district will be deemed to have approved the consolidation.

1(2) The multiple charter school organization shall be:

2(i) granted legal authority to operate two (2) or more
3individual charter schools under the oversight of a single board
4of trustees and a chief administrator who shall oversee and
5manage the operation of the individual charter schools under its
6organization; and

7(ii) subject to all of the requirements of this article
8unless otherwise provided for under this section.

9(3) Nothing under this section shall be construed to affect
10or change the terms or conditions of any individual charter
11previously granted that is consolidated under this section.

12(b) (1) A charter school that, within either of the most
13recent two (2) school years, has failed to meet the requirements
14for student performance set forth in 22 Pa. Code Ch. 4 (relating
15to academic standards and assessment), accepted standards of
16fiscal management or audit requirements or performance standards
17set forth by the matrix established under section 1731.2-A shall
18not be eligible to consolidate with another charter school
19unless the consolidation includes a charter school demonstrating
20that it has satisfied such requirements for the most recent two
21(2) school years.

22(2) This section shall not apply until the effective date of
23the regulations implementing the performance matrix required
24under section 1731.2-A.

25(c) The department shall develop and issue a standard
26application form that multiple charter school organization
27applicants must submit to the department and to the local board
28of school directors of each school district that granted the
29initial charter of any charter school included in the proposed
30consolidation. The application form shall contain the following

1information:

2(1) The name of the multiple charter school organization.

3(2) The names of the charter schools seeking consolidation
4under this section.

5(3) A copy of the approved charter of each charter school
6seeking to consolidate under this section.

7(4) An organizational chart clearly presenting the proposed
8governance structure of the multiple charter school
9organization, including lines of authority and reporting between
10the board of trustees, chief administrator, administrators,
11staff and any educational management service provider that will
12play a role in providing management services to the charter
13schools under its jurisdiction.

14(5) A clear description of the roles and responsibilities
15for the board of trustees, chief administrator, administrators
16and any other entities, including a charter school foundation,
17shown in the organizational chart.

18(6) A clear description of the method for the appointment or
19election of members of the board of trustees.

20(7) Standards for board of trustees performance, including
21compliance with all applicable laws, regulations and terms of
22the charter.

23(8) Enrollment procedures for each individual charter school
24included in its charter.

25(9) Any other information as deemed necessary by the
26department.

27(d) A multiple charter school organization may:

28(1) Participate in the assessment system in the same manner
29in which a school district participates, with its individual
30charter schools participating in the assessment system in the

1same manner as individual schools within school districts. All
2data gathered for purposes of evaluation shall be gathered in
3the same manner in which data is gathered in the case of school
4districts and individual schools within school districts.
5Nothing in this paragraph shall alter the manner in which
6charter school performance on assessments is measured as
7required under the No Child Left Behind Act of 2001 (Public Law
8107-110, 115 Stat. 1425), or its successor Federal statute.

9(2) Add existing charter schools to its organization by
10obtaining the approval of the department and of the school
11district that granted the initial charter of each charter school
12proposed to be added under subsection (a)(1).

13(3) Allow students enrolled in an individual charter school
14to matriculate to another individual charter school under its
15oversight so as to complete a course of instruction in an
16educational institution from kindergarten through grade twelve
17or otherwise in the best interests of the student.

18(e) A multiple charter school organization shall be regarded
19as the holder of the charter of each individual charter school
20under its oversight and each previously or subsequently awarded
21charter shall be subject to nonrenewal or revocation by the
22local board of school directors that granted the initial charter
23in accordance with this act. The nonrenewal or revocation of the
24charter of an individual charter school under the oversight of a
25multiple charter school organization shall not affect the status
26of a charter awarded for any other individual charter school
27under the oversight of the multiple charter school organization.

28(f)  For purposes of this section, the term "charter school"
29shall include a regional charter school.

30Section 1731.1-A. Fund Balance Limits.--Fund balance limits

1shall be as follows:

2(1) For the 2013-2014 school year and each school year
3thereafter, a charter school entity shall not accumulate an
4unassigned fund balance greater than the charter school entity
5unassigned fund balance limit, which will be determined as
6follows:

7 

8Charter School Entity

9Total Budgeted Expenditures

Maximum Unassigned Fund
Balance as Percentage of
Total Budgeted Expenditures

10Less than or equal to $11,999,999

12%

11Between $12,000,000 and $12,999,999

11.5%

12Between $13,000,000 and $13,999,999

11%

13Between $14,000,000 and $14,999,999

10.5%

14Between $15,000,000 and $15,999,999

10%

15Between $16,000,000 and $16,999,999

9.5%

16Between $17,000,000 and $17,999,999

9%

17Between $18,000,000 and $18,999,999

8.5%

18Greater Than or Equal to $19,000,000

8%

19(2) Any unassigned fund balance in place on June 30, 2013,
20that exceeds the charter school entity unassigned fund balance
21limit shall be refunded on a pro rata basis within ninety (90)
22days to all school districts that paid tuition to the charter
23school entity on behalf of students enrolled in the 2011-2012
24and 2012-2013 school years. The funds in excess of the
25unassigned fund balance limit may not be used to pay bonuses to
26any administrator, board of trustees member, employe, staff
27member or contractor and may not be transferred to a charter
28school foundation. If a charter school entity uses funds in
29excess of the unassigned fund balance limit to pay bonuses to
30any administrator, board of trustees member, employee, staff

1member or contractor or transfers such funds to a charter school
2foundation, the charter school entity shall pay the department a
3penalty equal to one percent (1%) of its unassigned fund
4balance.

5(3) For the 2013-2014 school year and each school year
6thereafter, any unassigned fund balance in place on June 30,
72014, and on June 30 of each year thereafter in excess of the
8charter school entity unassigned fund balance limit shall be
9refunded on a pro rata basis within forty-five (45) days to all
10school districts that paid tuition to the charter school entity
11in the prior school year.

12(4) By September 30, 2013, and August 15 of each year
13thereafter, each charter school entity shall provide the
14department and all school districts that paid tuition to the
15charter school entity in the prior school year with information
16certifying compliance with this section. The information shall
17be provided in a form and manner prescribed by the department
18and shall include information on the charter school entity's
19estimated ending unassigned fund balance expressed as a dollar
20amount and as a percentage of the charter school entity's total
21budgeted expenditures for that school year.

22(5) As used in this section, "unassigned fund balance" shall
23mean that portion of the fund balance of a charter school entity
24or of a charter school foundation that provides funding or
25resources or otherwise serves to support the charter school
26entity, directly or through an affiliated entity, that is:

27(i) available for expenditure or not legally or otherwise
28segregated for a specific or tentative future use; and

29(ii) held in the General Fund accounts of the charter school
30entity or the charter school foundation.

1Section 1731.2-A. Performance Matrix.--The following shall
2apply:

3(1) Within eighteen (18) months of the effective date of
4this section, the State Board of Education shall develop a
5standard performance matrix to evaluate charter school entity
6performance and shall promulgate regulations pursuant to the act
7of June 25, 1982 (P.L.633, No.181), known as the "Regulatory
8Review Act," to implement this section.

9(2) The performance matrix may assess performance by
10utilizing objective criteria, including, but not limited to:
11student performance on assessments; annual growth as measured by
12the Pennsylvania Value-Added Assessment System; attendance;
13attrition rates; graduation rates; other standardized test
14scores; school safety; parent satisfaction; accreditation by a
15nationally recognized accreditation agency, including the Middle
16States Association of Colleges and Schools or another regional
17institutional accrediting agency recognized by the United States
18Department of Education or an equivalent federally recognized
19body for charter school education; and other measures of school
20quality, including measures for assessing teacher effectiveness.

21(2.1)  In developing the performance matrix, the State Board
22of Education shall determine an academic quality benchmark the
23satisfaction of which shall qualify a charter school entity for
24a ten (10) year renewal term pursuant to section 1720-A(a)(2) or
251745-A(f)(3). The academic quality benchmark shall be included
26in the regulations required under clause (1).

27(3) In developing the performance matrix, the State Board of
28Education may contract for consulting services with an entity
29that has experience in developing performance matrices if the
30services are procured through a competitive bidding process.

1(4) Neither the department nor any local board of school
2directors or other school district governing authority may
3develop a separate performance matrix for the evaluation of a
4charter school entity.

5(5) (i) A local board of school directors or other school
6district governing authority shall utilize the standard
7performance matrix as a primary factor in evaluating new and
8renewal charter school and regional charter school applicants
9and in annual monitoring and evaluation of charter schools and
10regional charter schools.

11(ii) The department shall utilize the standard performance
12matrix as a primary factor in evaluating new and renewal cyber
13charter school applicants, in evaluating consolidation
14applications under section 1729.2-A and in annual monitoring and
15evaluation of cyber charter schools.

16(6) (i) In developing the performance matrix and
17promulgating the regulations required under clause (1), the
18State Board of Education shall convene and consult with a
19Statewide advisory committee which shall consist of
20representatives of the department and a minimum of seven (7)
21representatives from charter schools, regional charter schools,
22cyber charter schools, school district personnel and
23institutions of higher education with experience in the
24oversight of charter schools. Members of the committee shall be
25selected to be representative of the urban, rural and suburban
26areas of this Commonwealth.

27(ii) The Statewide advisory committee required to be
28convened under subparagraph (i) shall be convened not later than
29thirty (30) days after the effective date of this section and
30shall meet regularly to fulfill requirements of this paragraph.

1(7) The department shall distribute the performance matrix
2to all school districts and shall publish the matrix on the
3department's publicly accessible Internet website.

4Section 17. Section 1732-A of the act, amended June 29, 2002
5(P.L.524, No.88), is amended to read:

6Section 1732-A. Provisions Applicable to Charter Schools and 
7Regional Charter Schools.--(a) Charter schools and regional 
8charter schools shall be subject to the following:

9(1) Sections 108, 110, 111, 321, 325, 326, 327, 431, 436,
10443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753,
11[755,] 771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a),
121205.1, 1205.2, 1205.3, 1205.4, 1205.5, 1301, 1302, 1303, 1310,
131317, 1317.1, 1317.2, 1317.3, 1318, 1327, 1330, 1332, 1333,
141303-A, 1513, 1517, 1518, 1521, 1523, 1531, 1547, 2014-A,
15Article XIII-A and Article XIV.

16(2) Act of July 19, 1957 (P.L.1017, No.451), known as the
17"State Adverse Interest Act."

18(3) Act of July 17, 1961 (P.L.776, No.341), known as the
19"Pennsylvania Fair Educational Opportunities Act."

20(4) Act of July 19, 1965 (P.L.215, No.116), entitled "An act
21providing for the use of eye protective devices by persons
22engaged in hazardous activities or exposed to known dangers in
23schools, colleges and universities."

24(5) Section 4 of the act of January 25, 1966 (1965 P.L.1546,
25No.541), entitled "An act providing scholarships and providing
26funds to secure Federal funds for qualified students of the
27Commonwealth of Pennsylvania who need financial assistance to
28attend postsecondary institutions of higher learning, making an
29appropriation, and providing for the administration of this
30act."

1(6) Act of July 12, 1972 (P.L.765, No.181), entitled "An act
2relating to drugs and alcohol and their abuse, providing for
3projects and programs and grants to educational agencies, other
4public or private agencies, institutions or organizations."

5(7) Act of December 15, 1986 (P.L.1595, No.175), known as
6the "Antihazing Law."

7(8) 65 Pa.C.S. Ch. 7 (relating to open meetings).

8(9) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
9financial disclosure).

10(b) Charter schools and regional charter schools shall be
11subject to the following provisions of 22 Pa. Code:

12[Section 5.216 (relating to ESOL).

13Section 5.4 (relating to general policies).]

14(1) Chapter 4 (relating to academic standards and
15assessments).

16(2) Chapter 11 (relating to pupil attendance).

17(3) Chapter 12 (relating to students).

18(4) Section 32.3 (relating to assurances).

19(5) Section 121.3 (relating to discrimination prohibited).

20(6) Section 235.4 (relating to practices).

21(7) Section 235.8 (relating to civil rights).

22(8) Chapter 711 (relating to charter school services and
23programs for children with disabilities).

24(c) (1) The secretary may promulgate additional regulations
25relating to charter schools and regional charter schools.

26(2) The secretary shall have the authority and the
27responsibility to ensure that charter schools and regional 
28charter schools comply with Federal laws and regulations
29governing children with disabilities. The secretary shall
30promulgate regulations to implement this provision.

1Section 18. The act is amended by adding a section to read:

2Section 1733-A. Effect on Existing Charter School
3Entities.--(a) Within one (1) year of the effective date of
4this section, a charter school entity established under section
51717-A, 1718-A or 1745-A prior to the effective date of this
6section shall amend the current charter through the amendment
7process under section 1720-A(c) or 1745-A(f)(5) as needed to
8reflect the requirements of this article. Any renewal that takes
9effect after June 30, 2013, shall be for the term specified
10under section 1720-A(a)(2) or 1745-A(f)(3).

11(b) A charter school entity approved after the effective
12date of this section shall be in full compliance with this
13article.

14(c) Within sixty (60) days of the effective date of this
15section, each charter school entity shall demonstrate, to the
16satisfaction of the local board of school directors or, in the
17case of a cyber charter school, to the satisfaction of the
18department, that the charter school entity is in compliance with
19sections 1332 and 1333, including the institution of truancy
20proceedings when required under section 1333.

21Section 19. Sections 1741-A(c), 1742-A and 1745-A of the
22act, added June 29, 2002 (P.L.524, No.88), are amended to read:

23Section 1741-A. Powers and duties of department.

24* * *

25(c) Documents.--Documents of the appeal board shall be
26subject to the act of [June 21, 1957 (P.L.390, No.212), referred
27to as the Right-to-Know Law.] act of February 14, 2008 (P.L.6, 
28No.3), known as the "Right-to-Know Law."

29Section 1742-A. Assessment and evaluation.

30The department shall:

1(1) Annually assess whether each cyber charter school is
2meeting the goals of its charter and is in compliance with
3the provisions of the charter and conduct a comprehensive
4review prior to granting a [five-year] renewal of the charter
5for the period specified in section 1745-A(f)(3).

6(2) Annually review each cyber charter school's
7performance on the Pennsylvania System of School Assessment
8test, standardized tests and other performance indicators to
9ensure compliance with 22 Pa. Code Ch. 4 (relating to
10academic standards and assessment) or subsequent regulations
11promulgated to replace 22 Pa. Code Ch. 4.

12(3) Have ongoing access to all records, instructional
13materials and student and staff records of each cyber charter
14school and to every cyber charter school facility to ensure
15the cyber charter school is in compliance with its charter
16and this subdivision.

17Section 1745-A. Establishment of cyber charter school.

18(a) Establishment.--A cyber charter school may be
19established by an individual; one or more teachers who will
20teach at the proposed cyber charter school; parents or guardians
21of students who will enroll in the cyber charter school; a
22nonsectarian college, university or museum located in this
23Commonwealth; a nonsectarian corporation not-for-profit as
24defined in 15 Pa.C.S. § 5103 (relating to definitions); a
25corporation, association or partnership; or any combination of
26the foregoing. Section 1327.1 shall not apply to a cyber charter
27school established under this subdivision.

28(b) Sectarian entities.--No cyber charter school shall be
29established or funded by and no charter shall be granted to a
30sectarian school, institution or other entity.

1(b.1) Local board of school directors or intermediate
2unit.--

3(1) A cyber charter school may be established by a local
4board of school directors or an intermediate unit if the
5procedures and requirements of this article are satisfied.

6(2) Nothing in this article shall be construed to
7preclude a school district or an intermediate unit from
8offering instruction via the Internet or other electronic
9means, except that the instruction shall not be recognized as
10a cyber charter school under this article unless the school
11district or intermediate unit establishes a cyber charter
12school pursuant to subsections (a) and (b.1)(1).

13(c) Attendance.--Attendance at a cyber charter school shall
14satisfy requirements for compulsory attendance, subject to 
15penalties for violation of compulsory attendance requirements 
16under section 1333.

17(d) Application.--An application to establish a cyber
18charter school shall be submitted to the department by October 1
19of the school year preceding the school year in which the cyber
20charter school proposes to commence operation.

21(e) Grant or denial.--Within 120 days of receipt of an 
22application, the department shall grant or deny the application. 
23The department shall review the application and shall hold at 
24least one public hearing under 65 Pa.C.S. Ch. 7 (relating to 
25open meetings). At least 30 days prior to the hearing, the 
26department shall publish in the Pennsylvania Bulletin and on the 
27department's [World Wide Web site] publicly accessible Internet 
28website notice of the hearing and the purpose of the 
29application.

30(f) Evaluation criteria.--

1(1) A cyber charter school application submitted under
2this subdivision shall be evaluated by the department based
3on the following criteria:

4(i) The demonstrated, sustainable support for the
5cyber charter school plan by teachers, parents or
6guardians and students.

7(ii) The capability of the cyber charter school
8applicant, in terms of support and planning, to provide
9comprehensive learning experiences to students under the
10charter.

11(iii) The extent to which the programs outlined in
12the application will enable students to meet the academic
13standards under 22 Pa. Code Ch. 4 (relating to academic
14standards and assessment) or subsequent regulations
15promulgated to replace 22 Pa. Code Ch. 4.

16(iv) The extent to which the application meets the
17requirements of section 1747-A.

18(v) The extent to which the cyber charter school may
19serve as a model for other public schools.

20(2) Written notice of the action of the department shall
21be sent by certified mail to the applicant and published on
22the department's [World Wide Web site] publicly accessible 
23Internet website. If the application is denied, the reasons
24for denial, including a description of deficiencies in the
25application, shall be clearly stated in the notice.

26(3) Upon approval of a cyber charter school application,
27a written charter shall be developed which shall contain the
28provisions of the charter application and be signed by the
29secretary and each member of the board of trustees of the
30cyber charter school. The charter, when duly signed, shall

1act as legal authorization of the establishment of a cyber
2charter school. The charter shall be legally binding on the
3department, the cyber charter school and its board of
4trustees. The charter [shall be for a period of no less than
5three years nor more than five years and may be renewed for a
6period of five years by the department.] term shall be as 
7follows:

8(i)  An initial charter granted pursuant to this
9section shall be for a period of five years.

10(ii)  Prior to the effective date of the regulations
11implementing the performance matrix as required pursuant
12to section 1731.2-A, a charter may be renewed for five
13year periods upon reauthorization by the department.

14(iii)  Upon the effective date of the regulations
15implementing the performance matrix as required pursuant
16to section 1731.2-A, the following shall apply:

17(A)  For cyber charter schools that have
18satisfied the academic quality benchmark established
19by the State Board of Education pursuant to section
201731.2-A, a charter may be renewed for ten year
21periods upon reauthorization by the department.

22(B)  For cyber charter schools that have not
23satisfied the academic quality benchmark established
24by the State Board of Education pursuant to section
251731.2-A, a charter may be renewed for five year
26periods upon reauthorization by the department.

27(4) The decision of the department to deny an
28application may be appealed to the appeal board.

29(5) (i) A cyber charter school may request amendments
30to its approved written charter by filing with the

1department a written document describing the requested
2amendment.

3(ii) Within 20 days of its receipt of the request
4for an amendment, the department shall hold a public
5hearing on the requested amendment under 65 Pa.C.S. Ch. 7
6(relating to open meetings).

7(iii) Within 20 days after the hearing, the
8department shall grant or deny the requested amendment.
9Failure by the department to hold a public hearing and to
10grant or deny the amendment within the time period
11specified shall be deemed an approval.

12(iv) An applicant for an amendment shall have the
13right to appeal the denial of a requested amendment to
14the appeal board provided for under section 1721-A.

15(g) Denied application.--A cyber charter school applicant
16may revise and resubmit a denied application to the department.
17The department shall grant or deny the revised application
18within 60 days after its receipt.

19(h) Appeal.--If the department fails to hold the required
20public hearing or to approve or disapprove the charter, the
21applicant may file its application as an appeal to the appeal
22board. The appeal board shall review the application and make a
23decision to approve or disapprove the charter based on the
24criteria in subsection (f).

25Section 20. Section 1749-A(a) and (c) of the act, added June
2629, 2002 (P.L.524, No.88), are amended to read:

27Section 1749-A. Applicability of other provisions of this act
28and of other acts and regulations.

29(a) General requirements.--Cyber charter schools shall be
30subject to the following:

1(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
2436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 
3752, 753, [755,] 771, 776, 777, 808, 809, 810, 1109, 1111,
41112(a), 1205.1, 1205.2, 1205.3, 1205.5, 1301, 1302, 1303,
51310, 1317, 1317.2, 1318, 1327, 1330, 1332, 1333, 1303-A,
61513, 1517, 1518, 1521, 1523, 1525, 1531, 1547, 1602-B, 1613-
7B, 1702-A, 1703-A, 1704-A, 1714-A, 1715-A, 1716-A, 1716.1-A,
81719-A, 1721-A, 1722-A, [1723-A(a) and (b)] 1723-A(a), (b) 
9and (d), 1724-A, 1725-A, 1727-A, 1728-A(d), (e), (f), (g) and 
10(h), 1729-A, 1729.1-A, 1730-A, 1731-A(a)(1) and (b), 1731.1-
11A, 1731.2-A, 1733-A and 2014-A and Articles [XII-A,] XIII-A
12and XIV.

13(1.1) Act of July 19, 1957 (P.L.1017, No.451), known as
14the State Adverse Interest Act.

15(2) The act of July 17, 1961 (P.L.776, No.341), known as
16the Pennsylvania Fair Educational Opportunities Act.

17(3) The act of July 19, 1965 (P.L.215, No.116), entitled
18"An act providing for the use of eye protective devices by
19persons engaged in hazardous activities or exposed to known
20dangers in schools, colleges and universities."

21(4) Section 4 of the act of January 25, 1966 (1965
22P.L.1546, No.541), entitled "An act providing scholarships
23and providing funds to secure Federal funds for qualified
24students of the Commonwealth of Pennsylvania who need
25financial assistance to attend postsecondary institutions of
26higher learning, making an appropriation, and providing for
27the administration of this act."

28(5) The act of July 12, 1972 (P.L.765, No.181) entitled
29"An act relating to drugs and alcohol and their abuse,
30providing for projects and programs and grants to educational

1agencies, other public or private agencies, institutions or
2organizations."

3(6) The act of December 15, 1986 (P.L.1595, No.175),
4known as the Antihazing Law.

5(7) 65 Pa.C.S. Ch. 7 (relating to open meetings).

6(8) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
7financial disclosure).

8* * *

9(c) Existing charter schools.--

10(1) The charter of a charter school approved under
11section 1717-A or 1718-A which provides instruction through
12the Internet or other electronic means shall remain in effect
13for the duration of the charter and shall be subject to the
14provisions of Subdivision (b).

15(2) In addition to subsections (a) and (b), the
16following provisions of this subdivision shall apply to a
17charter school approved under section 1717-A or 1718-A which
18provides instruction through the Internet or other electronic
19means:

20(i) Section 1743-A(c), (d), (e), (f), (g), (h) and
21(i).

22(ii) Section 1744-A.

23(iii) Section 1748-A.

24Section 21. The addition of section 1725(a)(2)(ii) shall
25expire at the end of the 2014-2015 school year.

26Section 22. This act shall take effect as follows:

27(1) The amendment or addition of the following
28provisions of the act shall take effect immediately:

29(i) Section 1704-A.

30(ii) Section 1725-A(a)(1), (2), (2.1), (3) and (4),

1(b), (c), (d), (e) and (f).

2(iii) Sections 1731.1-A.

3(iv) Section 1731.2-A.

4(v) Section 1732-A.

5(vi) Section 1749-A.

6(2) The amendment of section 1725-A(a)(5) and (6) of the
7act shall take effect in 90 days.

8(3) This section shall take effect immediately.

9(4) The remainder of this act shall take effect in 60
10days.