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PRINTER'S NO. 569
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
530
Session of
2015
INTRODUCED BY REESE, CAUSER, DIAMOND, GROVE, KRIEGER, MATZIE,
MILLARD, O'NEILL, SAYLOR, DUNBAR AND MOUL, FEBRUARY 18, 2015
REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 18, 2015
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," in terms and courses of study,
further providing for agreements with institutions of higher
education; in opportunities for educational excellence,
further providing for definitions and for concurrent
enrollment agreements; and extensively revising and adding
charter school provisions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1525 of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, added
July 4, 2004 (P.L.536, No.70), is amended to read:
Section 1525. Agreements with Institutions of Higher
Education.--Notwithstanding any other provision of law to the
contrary, a school district, charter school, regional charter
school, cyber charter school or area vocational-technical school
may enter into an agreement with one or more institutions of
higher education approved to operate in this Commonwealth in
order to allow [resident] students to attend such institutions
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of higher education while the [resident] students are enrolled
in the school district, charter school, regional charter school,
cyber charter school or area vocational-technical school. The
agreement may be structured so that high school students may
receive credits toward completion of courses at the school
district, charter school, regional charter school, cyber charter
school or area vocational-technical school and at institutions
of higher education approved to operate in this Commonwealth.
Section 2. The definitions of "concurrent student" and
"school entity" in section 1602-B of the act, added July 13,
2005 (P.L.226, No.46), are amended to read:
Section 1602-B. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Concurrent student." A student who is enrolled in a school
district, a charter school, a regional charter school, a cyber
charter school, an area vocational-technical school, a nonpublic
school, a private school or a home education program under
section 1327.1 and who takes a concurrent course through a
concurrent enrollment program.
* * *
"School entity." A school district, a charter school, a
regional charter school, a cyber charter school or an area
vocational-technical school.
* * *
Section 3. Section 1613-B of the act is amended by adding a
subsection to read:
Section 1613-B. Concurrent enrollment agreements.
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* * *
(c) Charter schools, regional charter schools and cyber
charter schools.--Charter schools, regional charter schools and
cyber charter schools shall have the power and authority to
enter into a concurrent enrollment agreement with an institution
of higher education, and appropriate credit shall be awarded to
students concurrently enrolled under the agreement.
Section 4. Section 1703-A of the act, amended June 29, 2002
(P.L.524, No.88), is amended to read:
Section 1703-A. Definitions.--As used in this article,
"Administrator" shall include an employe of a charter school
entity, including the chief administrator of a charter school
entity and any other employe, who by virtue of the employe's
position is responsible for taking official action of a
nonministerial nature with regard to contracting or procurement,
administering or monitoring grants or subsidies, managing or
regulating staff, student and school activities or any activity
where the official action has an economic impact of greater than
a de minimis nature on the interests of any person.
"Appeal board" shall mean the State Charter School Appeal
Board established by this article.
"Assessment" shall mean the Pennsylvania System of School
Assessment test, the Keystone Exam or another test established
by the State board to meet the requirements of section 2603-
B(d) (10)(i) and required under the No Child Left Behind Act of
2001 (Public Law 107-110, 115 Stat. 1425) or its successor
Federal statute.
"At-risk student" shall mean a student at risk of educational
failure because of limited English proficiency, poverty,
community factors, truancy, academic difficulties or economic
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disadvantage.
"Charter school" shall mean an independent public school
established and operated under a charter from the local board of
school directors and in which students are enrolled or attend. A
charter school must be organized as a public, nonprofit
corporation. Charters may not be granted to any for-profit
entity.
"Charter school entity" shall mean a charter school, regional
charter school or cyber charter school.
"Charter school foundation" shall mean a nonprofit
organization under section 501(c)(3) of the Internal Revenue
Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), that
provides funding, resources or otherwise serves to support a
charter school entity, either directly or through an affiliated
entity.
"Chief administrator" shall mean an individual appointed by a
board of trustees to oversee and manage the operation of a
charter school entity. The term shall not include a professional
staff member under this article.
["Chief executive officer" shall mean an individual appointed
by the board of trustees to oversee and manage the operation of
the charter school, but who shall not be deemed a professional
staff member under this article.]
"Community college" shall mean a community college
established under Article XIX-A.
"Cyber charter school" shall mean an independent public
school established and operated under a charter from the
Department of Education and in which the school uses technology,
including electronic or digital books, in order to provide a
significant portion of its curriculum and to deliver a
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significant portion of instruction to its students through the
Internet or other electronic means. A cyber charter school must
be organized as a public, nonprofit corporation. A charter may
not be granted to a for-profit entity.
"Department" shall mean the Department of Education of the
Commonwealth.
"Educational management service provider" shall mean a
nonprofit charter management organization, for-profit education
management organization, school design provider, business
manager or any other partner entity with which a board of
trustees of a charter school entity contracts to provide
educational design, business services, comprehensive management
or personnel functions or to implement the charter. The term
shall not include a charter school foundation.
"Immediate family member" shall mean a parent, spouse, child,
brother or sister.
"Local board of school directors" shall mean the board of
directors, School Reform Commission or other governing authority
of a school district in which a proposed or an approved charter
school is located.
"Nonrelated" shall mean an individual who is not an immediate
family member.
"Regional charter school" shall mean an independent public
school established and operated under a charter from more than
one local board of school directors and in which students are
enrolled or attend. A regional charter school must be organized
as a public, nonprofit corporation. Charters may not be granted
to any for-profit entity.
"School district of residence" shall mean the school district
in this Commonwealth in which [the parents or guardians of a
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child reside] a child resides as determined under section 1302
and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of
resident children to attend public schools).
"School entity" shall mean a school district, intermediate
unit, joint school or area vocational-technical school.
"School performance profile" shall mean the Pennsylvania
School Performance Profile developed by the department under
section 1123.
"Secretary" shall mean the Secretary of Education of the
Commonwealth.
"State board" shall mean the State Board of Education of the
Commonwealth.
"State System institution" shall mean a member institution of
the State System of Higher Education established under Article
XX-A.
Section 5. The act is amended by adding a section to read:
Section 1704-A. Charter School Funding Advisory
Commission.--(1) The chairman of the State board shall
immediately convene a Statewide advisory commission, to be known
as the Charter School Funding Advisory Commission, to examine
the financing of charter school entities in the public education
system and related issues. The commission shall examine how
charter school entity finances affect opportunities for
teachers, parents, pupils and community members to establish and
maintain schools that operate independently from the existing
school district structure as a method to accomplish the
requirements of section 1702-A. The department shall provide
administrative support, meeting space and any other assistance
required by the commission to carry out its duties under this
section.
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(2) The commission shall consist of the following members:
(i) Four members of the Senate appointed by the President
pro tempore of the Senate, in consultation with the Majority
Leader of the Senate and the Minority Leader of the Senate, with
two appointees from the majority party and two appointees from
the minority party.
(ii) Four members of the House of Representatives appointed
by the Speaker of the House of Representatives, in consultation
with the Majority Leader of the House of Representatives and the
Minority Leader of the House of Representatives, with two
appointees from the majority party and two appointees from the
minority party.
(iii) The secretary or a designee.
(iv) The chairman of the State board or a designee.
(v) To represent the interests of charter school entities,
the following members, who shall be appointed by the chairman of
the State board, subject to the approval of a majority of the
members of the State board:
(A) One member who shall represent charter schools.
(B) One member who shall represent regional charter schools.
(C) One member who shall represent cyber charter schools.
(D) One member who shall be a teacher in a charter school
entity.
(E) One member who shall be a parent of a child attending a
charter school entity.
(vi) To represent the interests of school districts, the
following members, who shall be appointed by the chairman of the
State board, subject to the approval of a majority of the
members of the State board:
(A) One member who shall be a teacher in a public school
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that is not a charter school entity.
(B) One member who shall represent school administrators.
(C) Two members who shall represent school board members.
(D) One member who shall be a business manager of a school
district.
(3) Members of the commission shall be appointed within
twenty (20) days of the effective date of this section. Any
vacancy on the commission shall be filled by the original
appointing authority. The commission shall select a chairman and
vice chairman from among its membership at an organizational
meeting. The organizational meeting shall take place not later
than forty-five (45) days following the effective date of this
section.
(4) The commission shall hold meetings at the call of the
chairman. The commission may also hold public hearings on the
matters to be considered by the commission at locations
throughout this Commonwealth. All meetings and public hearings
of the commission shall be deemed public meetings for the
purpose of 65 Pa.C.S. Ch. 7 (relating to open meetings). Ten
(10) members of the commission shall constitute a quorum at any
meeting. Each member of the commission may designate another
person to represent that member at meetings of the commission.
(5) Commission members shall receive no compensation for
their services but shall be reimbursed by the department for all
necessary travel and other reasonable expenses incurred in
connection with the performance of their duties as members.
Whenever possible, the commission shall utilize the services and
expertise of existing personnel and staff of State government.
The department may utilize undistributed funds not expended,
encumbered or committed from appropriations for grants and
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subsidies made to the department, not to exceed three hundred
thousand dollars ($300,000), to carry out this section.
(6) The commission shall have the following powers and
duties:
(i) Meet with current charter school entity operators and
school district personnel.
(ii) Review charter school entity financing laws in
operation throughout the United States.
(iii) Explore the actual cost of educating a child in a
cyber charter school.
(iv) Evaluate and make recommendations on the following:
(A) Consideration of establishing an independent State level
board to authorize charter school entities and support charter
school quality and accountability through performance monitoring
and technical assistance.
(B) The process by which charter school entities are funded
under section 1725-A, including addressing potential funding
inequities, to include consideration of disallowing a school
district food services deduction in the case of cyber charter
schools that provide food services to their students, and
consideration of continuing the school district deduction for
cyber charter school tuition costs.
(C) Appropriate funding for charter school entity
facilities.
(D) A process by which the performance matrix established
under section 1731.2-A may compare the academic performance of
each charter school entity with the academic performance of the
school district of residence of each student enrolled in the
charter school entity.
(v) Issue a report pursuant to paragraph (7).
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(7) The commission shall, no later than one year from the
effective date of this section, issue a report of its findings
and recommendations to the Governor, the President pro tempore
of the Senate, the Majority Leader of the Senate, the Minority
Leader of the Senate, the chairman and minority chairman of the
Appropriations Committee of the Senate, the chairman and
minority chairman of the Education Committee of the Senate, the
Speaker of the House of Representatives, the Majority Leader of
the House of Representatives, the Minority Leader of the House
of Representatives, the chairman and minority chairman of the
Appropriations Committee of the House of Representatives and the
chairman and minority chairman of the Education Committee of the
House of Representatives. The recommendations of the commission
shall not take effect unless the recommendations are approved by
an act of the General Assembly enacted after the effective date
of this section.
Section 6. Section 1715-A of the act, amended or added June
19, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is
amended to read:
Section 1715-A. Charter School Entity Requirements.--(a)
Charter [schools] school entities shall be required to comply
with the following provisions:
(1) Except as otherwise provided in this article, a charter
school entity is exempt from statutory requirements established
in this act, from regulations of the State board and the
standards of the secretary not specifically applicable to
charter [schools] school entities. Charter [schools] school
entities are not exempt from statutes applicable to public
schools other than this act.
(2) A charter school entity shall be accountable to the
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parents, the public and the Commonwealth, with the delineation
of that accountability reflected in the charter. Strategies for
meaningful parent and community involvement shall be developed
and implemented by each school.
(3) A charter school entity shall not unlawfully
discriminate in admissions, hiring or operation.
(4) A charter school entity shall be nonsectarian in all
operations.
(5) (i) [A] Subject to subparagraph (ii), a charter school
entity shall not provide any religious instruction, nor shall it
display religious objects and symbols on the premises of the
charter school entity.
(ii) It shall not be a violation of this paragraph for a
charter school entity to utilize a sectarian facility:
(A) if the charter school entity provides for discrete and
separate entrances to buildings utilized for school purposes
only;
(B) if the religious objects and symbols within the portions
of the facility utilized by the school are covered or removed to
the extent reasonably feasible; or
(C) in which the unused portion of the facility or its
common areas contain religious symbols and objects.
(6) A charter school entity shall not advocate unlawful
behavior.
(7) A charter school or regional charter school shall only
be subject to the laws and regulations as provided for in
section 1732-A, or as otherwise provided for in this [article]
act.
(7.1) A cyber charter school shall only be subject to the
laws and regulations as provided for in section 1749-A, or as
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otherwise provided for in this act.
(8) A charter school entity shall participate in [the
Pennsylvania State Assessment System as provided for in 22 Pa.
Code Ch. 5 (relating to curriculum), or subsequent regulations
promulgated to replace 22 Pa. Code Ch. 5,] assessments in the
manner in which the school district in which the charter school
entity is located is scheduled to participate.
(9) A charter school entity shall provide a minimum of one
hundred eighty (180) days of instruction or nine hundred (900)
hours per year of instruction at the elementary level, or nine
hundred ninety (990) hours per year of instruction at the
secondary level. Nothing in this clause shall preclude the use
of computer and satellite linkages for delivering instruction to
students.
(10) Boards of trustees and contractors of charter [schools]
school entities shall be subject to the following statutory
requirements governing construction projects and construction-
related work:
(i) The following provisions of this act:
(A) Sections 751 and 751.1.
(B) Sections 756 and 757 insofar as they are consistent with
the act of December 20, 1967 (P.L.869, No.385), known as the
"Public Works Contractors' Bond Law of 1967."
(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
entitled "An act regulating the letting of certain contracts for
the erection, construction, and alteration of public buildings."
(iii) The act of August 11, 1961 (P.L.987, No.442), known as
the "Pennsylvania Prevailing Wage Act."
(iv) The "Public Works Contractors' Bond Law of 1967."
(v) The act of March 3, 1978 (P.L.6, No.3), known as the
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"Steel Products Procurement Act."
(11) Trustees of a charter school entity shall be public
officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to
ethics standards and financial disclosure) and shall file a
statement of financial interests for the preceding calendar year
with the State Ethics Commission and either the local board of
school directors in the case of a charter school or regional
charter school, or the department in the case of a cyber charter
school, not later than May 1 of each year that members hold the
position and of the year after a member leaves the position. All
members of the board of trustees of a charter school entity
shall take the oath of office as required under section 321
before entering upon the duties of their office.
[(12) A person who serves as an administrator for a charter
school shall not receive compensation from another charter
school or from a company that provides management or other
services to another charter school. The term "administrator"
shall include the chief executive officer of a charter school
and all other employes of a charter school who by virtue of
their positions exercise management or operational oversight
responsibilities. A person who serves as an administrator for a
charter school shall be a public official under 65 Pa.C.S. Ch.
11 (relating to ethics standards and financial disclosure). A
violation of this clause shall constitute a violation of 65
Pa.C.S. § 1103(a) (relating to restricted activities), and the
violator shall be subject to the penalties imposed under the
jurisdiction of the State Ethics Commission.]
(b) An individual who serves as an administrator for a
charter school entity shall be a public employe for the purposes
of 65 Pa.C.S. Ch. 11 and shall file a statement of financial
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interests for the preceding calendar year with the board of
trustees not later than May 1 of each year that the person holds
the position and of the year after the person leaves the
position.
(c) (1) No individual who serves as an administrator for a
charter school entity may receive compensation from another
charter school entity or from an educational management service
provider, unless:
(i) The administrator has submitted a sworn statement to the
board of trustees of the charter school entity and the sworn
statement details the work for the other entity and includes the
projected number of hours, rate of compensation and projected
duration.
(ii) The board of trustees of the charter school entity has
reviewed the sworn statement under subclause (i) and agreed, by
resolution, to grant permission to the administrator.
(2) A copy of the sworn statement under clause (1)(i) and
the resolution by the board of trustees granting the permission
under clause (1)(ii) shall be provided to, and kept on file
with, the charter school entity and the local board of school
directors or, in the case of a cyber charter school, the
department.
(3) No administrator of a charter school entity or immediate
family member of the administrator may serve as a voting member
of the board of trustees of the charter school entity that
employs the administrator.
(4) (i) No administrator of a charter school entity may
participate in the selection, award or administration of a
contract if the person has a conflict of interest as that term
is defined in 65 Pa.C.S. § 1102 (relating to definitions).
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(ii) An administrator who knowingly violates this clause
commits a violation of 65 Pa.C.S. § 1103(a) (relating to
restricted activities) and shall be subject to the penalties
imposed under the jurisdiction of the State Ethics Commission.
(iii) Any contract made in violation of this clause shall be
voidable by the board of trustees of the charter school entity.
(5) An administrator shall be immediately dismissed upon
conviction for an offense graded as a felony, an infamous crime,
an offense pertaining to fraud, theft or mismanagement of public
funds or any crime involving moral turpitude.
Section 7. Section 1716-A(c) of the act, added June 19, 1997
(P.L.225, No.22), is amended and the section is amended by
adding subsections to read:
Section 1716-A. Powers of Board of Trustees.--* * *
(b.1) (1) For a charter school or regional charter school
chartered after the effective date of this subsection, an
individual shall be prohibited from serving as a voting member
of the board of trustees of the charter school or regional
charter school if the individual or an immediate family member
receives compensation from or is employed by or is a member of
the local board of school directors who participated in the
initial review, approval, oversight, evaluation or renewal
process of the charter school or regional charter school
chartered by that board.
(2) An employe of the school district that chartered a
charter school or regional charter school may serve as a member
of the board of trustees of the charter school or regional
charter school without voting privileges.
(b.2) (1) No member of the board of trustees of a charter
school entity may participate in the selection, award or
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administration of any contract if the member has a conflict of
interest as that term is defined in 65 Pa.C.S. § 1102 (relating
to definitions).
(2) Any member of the board of trustees of a charter school
entity who in the discharge of the person's official duties
would be required to vote on a matter that would result in a
conflict of interest shall abstain from voting and follow the
procedures required under 65 Pa.C.S. § 1103(j) (relating to
restricted activities).
(3) A member of the board of trustees of a charter school
entity who knowingly violates this subsection commits a
violation of 65 Pa.C.S. § 1103(a) and shall be subject to the
penalties imposed under the jurisdiction of the State Ethics
Commission.
(4) A contract made in violation of this subsection shall be
voidable by a court of competent jurisdiction, if the suit is
commenced within ninety (90) days of the making of the contract.
(5) No member of the board of trustees of a charter school
entity shall be compensated for duties on the board of trustees.
(b.3) A member of the board of trustees of a charter school
entity shall be automatically disqualified and immediately
removed from the board of trustees upon conviction for an
offense graded as a felony, an infamous crime, an offense
pertaining to fraud, theft or mismanagement of public funds, any
offense pertaining to his official capacity as a member of the
board of trustees or any crime involving moral turpitude.
(c) The board of trustees shall comply with [the act of July
3, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
Pa.C.S. Ch. 7 (relating to open meetings).
(d) (1) (i) The board of trustees of a charter school
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entity shall consist of a minimum of five (5) nonrelated voting
members.
(ii) If a charter school entity has fewer than five (5)
nonrelated voting members serving on its board of trustees on
the effective date of this subsection, the charter school entity
shall, within sixty (60) days, appoint additional members to the
board of trustees to meet the minimum requirements of this
section.
(2) Within one (1) year of the effective date of this
subsection, at least one member of the board of trustees of a
charter school entity shall be a parent of a child currently
attending the charter school entity. The board of trustees
member required by this paragraph shall be eligible to serve
only so long as the child attends the charter school entity.
(e) (1) A majority of the voting members of the board of
trustees shall constitute a quorum. If less than a majority is
present at any meeting, no business may be transacted at the
meeting.
(2) The affirmative vote of a majority of all the voting
members of the board of trustees, duly recorded, shall be
required in order to take official action on the subjects
enumerated under subsection (a).
Section 8. The act is amended by adding a section to read:
Section 1716.1-A. Payment of Indebtedness by Charter School
Entities.--(a) The board of trustees of a charter school entity
shall supply the secretary and, in the case of a charter school
or regional charter school, the local board of school directors
a list of the amount of rental payments which are guarantees for
school building debt or bonds that become due during the fiscal
year together with the amount paid on each item of indebtedness.
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Any charter school entity that elects to issue debt shall hold
in escrow an amount sufficient to pay the annual amount of the
sum of the principal maturing or subject to mandatory redemption
and interest owing by the charter school entity or sinking fund
deposit due by the charter school entity.
(b) (1) In any case where the board of trustees of a
charter school entity fails to pay or to provide for the payment
of:
(i) any indebtedness at date of maturity or date of
mandatory redemption or on any sinking fund deposit date; or
(ii) any interest due on such indebtedness on any interest
payment date or on any sinking fund deposit date in accordance
with the schedule under which the bonds were issued,
the bank or trustee for the bonds shall notify the board of
trustees of its obligation and shall immediately notify the
secretary and, in the case of a charter school or regional
charter school, the local board of school directors.
(2) The secretary shall withhold any payment due the charter
school entity in any amount necessary to fully fund the amount
held in escrow by the charter school entity which shall be equal
to the sum of the principal amount maturing or subject to
mandatory redemption and interest owing by the charter school
entity or sinking fund deposit due by the charter school entity
and shall require payover of the amount withheld to the bank or
trustee acting as the sinking fund depositary for the bond issue
from the escrow account.
Section 9. Sections 1717-A(c), (d), (e) and (f) and 1719-A
of the act, added June 19, 1997 (P.L.225, No.22), are amended to
read:
Section 1717-A. Establishment of Charter School.--* * *
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(c) An application to establish a charter school shall be
submitted to the local board of school directors of the district
where the charter school will be located by [November 15]
October 1 of the school year preceding the school year in which
the charter school will be established except that for a charter
school beginning in the 1997-1998 school year, an application
must be received by July 15, 1997. In the 1997-1998 school year
only, applications shall be limited to recipients of fiscal year
1996-1997 Department of Education charter school planning
grants.
(d) Within forty-five (45) days of receipt of an
application, the local board of school directors in which the
proposed charter school is to be located shall hold at least one
public hearing on the provisions of the charter application,
under [the act of July 3, 1986 (P.L.388, No.84), known as the
"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
At least forty-five (45) days must transpire between the first
public hearing and the final decision of the board on the
charter application except that for a charter school beginning
in the 1997-1998 school year, only thirty (30) days must
transpire between the first public hearing and the final
decision of the board.
(e) (1) Not later than seventy-five (75) days after the
first public hearing on the application, the local board of
school directors shall grant or deny the application. For a
charter school beginning in the 1997-1998 school year, the local
board of school directors shall grant or deny the application no
later than sixty (60) days after the first public hearing.
(2) A charter school application submitted under this
article shall be evaluated by the local board of school
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directors based on criteria, including, but not limited to, the
following:
(i) The demonstrated, sustainable support for the charter
school plan by teachers, parents, other community members and
students, including comments received at the public hearing held
under subsection (d).
(ii) The capability of the charter school applicant, in
terms of support and planning, to provide comprehensive learning
experiences to students pursuant to the adopted charter.
(iii) The extent to which the application considers the
information requested in section 1719-A and conforms to the
legislative intent outlined in section 1702-A.
(iv) The extent to which the charter school may serve as a
model for other public schools.
(3) The local board of school directors, in the case of an
existing school being converted to a charter school, shall
establish the alternative arrangements for current students who
choose not to attend the charter school.
(4) A charter application shall be deemed approved by the
local board of school directors of a school district upon
affirmative vote by a majority of all the directors. Formal
action approving or denying the application shall be taken by
the local board of school directors at a public meeting, with
notice or consideration of the application given by the board,
under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7.
(5) Written notice of the board's action shall be sent to
the applicant, the department and the appeal board. If the
application is denied, the reasons for the denial, including a
description of deficiencies in the application, shall be clearly
stated in the notice sent by the local board of school directors
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to the charter school applicant.
(f) At the option of the charter school applicant, a denied
application may be revised and resubmitted to the local board of
school directors. Following the appointment and confirmation of
the Charter School Appeal Board under section 1721-A, the
decision of the local board of school directors may be appealed
to the appeal board. When an application is revised and
resubmitted to the local board of school directors, the board
may schedule additional public hearings on the revised
application. The board shall consider the revised and
resubmitted application at the first board meeting occurring at
least forty-five (45) days after receipt of the revised
application by the board. For a revised application resubmitted
for the 1997-1998 school year, the board shall consider the
application at the first board meeting occurring at least thirty
(30) days after its receipt. The board shall provide notice of
consideration of the revised application under [the "Sunshine
Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local
school board may be taken until July 1, 1999.
* * *
Section 1719-A. Contents of Application.--[An] (a) The
State board, in consultation with the department, shall create a
standard application form for charter school applicants seeking
to establish a charter school entity and for existing charter
school entities seeking renewal of their charters. The form
shall be published in the Pennsylvania Bulletin and posted on
the State board's publicly accessible Internet website. The form
shall include all of the following information:
(1) The identification of the charter school applicant.
(2) The name of the proposed charter school entity.
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(3) The grade or age levels served by the school.
(4) [The proposed governance structure of the charter
school, including a description and method for the appointment
or election of members of the board of trustees.] An
organization chart clearly presenting the proposed governance
structure of the school, including lines of authority and
reporting between the board of trustees, administrators, staff
and any educational management service provider that will
provide management services to the charter school entity.
(4.1) A clear description of the roles and responsibilities
of the board of trustees, administrators and any other entities,
including a charter school foundation, shown in the organization
chart.
(4.2) A clear description of the method for the appointment
or election of members of the board of trustees.
(4.3) Standards for board of trustees performance, including
compliance with all applicable laws, regulations and terms of
the charter.
(4.4) If the charter school entity intends to contract with
an educational management service provider for services, all of
the following:
(i) Evidence of the educational management service
provider's record in serving student populations, including
demonstrated academic achievement and demonstrated management of
nonacademic school functions, including proficiency with public
school-based accounting, if applicable.
(ii) A draft contract stating all of the following:
(A) The officers, chief administrator and administrators of
the educational management service provider.
(B) The proposed duration of the service contract.
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(C) Roles and responsibilities of the board of trustees, the
school staff and the educational management service provider.
(D) The scope of services, personnel and resources to be
provided by the educational management service provider.
(E) Performance evaluation measures and timelines.
(F) The compensation structure, including clear
identification of all fees to be paid to the educational
management service provider.
(G) Methods of contract oversight and enforcement.
(H) Investment disclosure or the advance of moneys by the
educational management service provider on behalf of the charter
school entity.
(I) Conditions for renewal and termination of the contract.
(iii) Disclosure and explanation of any existing or
potential conflicts of interest between the members of the board
of trustees and the proposed educational management service
provider or any affiliated business entities, including a
charter school foundation qualified as a support organization
under the Internal Revenue Code of 1986 (Public Law 99-514, 26
U.S.C. § 1 et seq.).
(5) The mission and education goals of the charter school
entity, the curriculum to be offered and the methods of
assessing whether students are meeting educational goals.
(6) The admission policy and criteria for evaluating the
admission of students which shall comply with the requirements
of section 1723-A.
(7) Procedures which will be used regarding the suspension
or expulsion of pupils. Said procedures shall comply with
section 1318.
(8) Information on the manner in which community groups will
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be involved in the charter school entity planning process.
(9) The financial plan for the charter school entity and the
provisions which will be made for auditing the school under
[section 437] sections 437 and 1728-A, including the role of any
charter school foundation.
(10) Procedures which shall be established to review
complaints of parents regarding the operation of the charter
school entity.
(11) A description of and address of the physical facility
in which the charter school entity will be located and the
ownership thereof and any lease arrangements.
(12) Information on the proposed school calendar for the
charter school entity, including the length of the school day
and school year consistent with the provisions of section 1502.
(13) The proposed faculty, if already determined, and a
professional development and continuing education plan for the
faculty and professional staff of [a] the charter school entity.
(14) Whether any agreements have been entered into or plans
developed with the local school district regarding participation
of the charter school entity's students in extracurricular
activities within the school district. Notwithstanding any
provision to the contrary, no school district of residence shall
prohibit a student of a charter school entity from participating
in any extracurricular activity of that school district of
residence: Provided, That the student is able to fulfill all of
the requirements of participation in such activity and the
charter school entity does not provide the same extracurricular
activity.
(15) A report of criminal history record, pursuant to
section 111, for all individuals identified in the application
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who shall have direct contact with students[.] and a plan for
satisfying the proper criminal history record clearances
required for all other staff.
(16) An official clearance statement regarding child injury
or abuse from the Department of Public Welfare as required by 23
Pa.C.S. Ch. 63 Subch. [C.2 (relating to background checks for
employment in schools)] C (relating to powers and duties of
department) and section 111 for all individuals identified in
the application who shall have direct contact with students[.]
and a plan for satisfying the proper official clearance
statement regarding child injury or abuse required for all other
staff.
(17) How the charter school entity will provide adequate
liability and other appropriate insurance for the charter school
entity, its employes and the board of trustees of the charter
school entity.
(18) Policies regarding truancy, absences and withdrawal of
students, including the manner in which the charter school
entity will monitor attendance consistent with section 1715-A(a)
(9). The charter school entity's policy shall establish, to the
satisfaction of the local board of school directors or, in the
case of a cyber charter school, to the satisfaction of the
department, that the charter school entity will comply with
sections 1332 and 1333, including the institution of truancy
proceedings when required under section 1333.
(19) How the charter school entity will meet the standards
included in the performance matrix developed by the State Board
of Education under section 1731.2-A.
(20) Indicate whether or not the charter school entity will
seek accreditation by a nationally recognized accreditation
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agency, including the Middle States Association of Colleges and
Schools or another regional institutional accrediting agency
recognized by the United States Department of Education or an
equivalent federally recognized body for charter school
education.
(b) A local board of school directors may not impose
additional terms, develop its own application or require
additional information outside the standard application form
required under subsection (a).
Section 10. Section 1720-A of the act, amended July 9, 2008,
(P.L.846, No.61), is amended to read:
Section 1720-A. Term and Form of Charter.--(a) (1) Upon
approval of a charter application under section 1717-A, a
written charter shall be developed which shall contain the
provisions of the standardized charter application under section
1719-A and which shall be signed by the local board of school
directors of a school district, by the local boards of school
directors of a school district in the case of a regional charter
school or by the chairman of the appeal board pursuant to
section [1717-A(i)(5)] 1717-A(i)(9) and the board of trustees of
the charter school or regional charter school. This written
charter, when duly signed by the local board of school directors
of a school district, [or] by the local boards of school
directors of a school district in the case of a regional charter
school or by the chairman of the appeal board, and the charter
school or regional charter school's board of trustees, shall act
as legal authorization for the establishment of a charter school
or regional charter school. This written charter shall be
legally binding on both the local board of school directors of a
school district and the charter school or regional charter
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school's board of trustees. [Except as otherwise provided in
subsection (b), the charter shall be for a period of no less
than three (3) nor more than five (5) years and may be renewed
for five (5) year periods upon reauthorization by the local
board of school directors of a school district or the appeal
board.] If the charter school or regional charter school
contracts with an educational management service provider, a
contract shall be executed once the charter is approved. A
charter will be granted only for a school organized as a public,
nonprofit corporation.
(2) The following shall apply to all charters granted by a
school district:
(i) An initial charter executed pursuant to section
1720- A(a)(1) shall be for a period of five (5) years.
(ii) Prior to the effective date of the regulations
implementing the performance matrix as required pursuant to
section 1731.2-A, a charter may be renewed for five (5) year
periods upon reauthorization by the local board of school
directors or other governing body of a school district or the
appeal board.
(iii) Upon the effective date of the regulations
implementing the performance matrix as required pursuant to
section 1731.2-A, the following shall apply:
(A) For charter schools and regional charter schools that
have satisfied the academic quality benchmark established by the
State board pursuant to section 1731.2-A, a charter may be
renewed for ten (10) year periods upon reauthorization by the
local board of school directors or other governing body of a
school district or the appeal board.
(B) For charter schools and regional charter schools that
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have not satisfied the academic quality benchmark established by
the State board pursuant to section 1731.2-A, a charter may be
renewed for five (5) year periods upon reauthorization by the
local board of school directors or other governing body of a
school district or the appeal board.
[(b) (1) Notwithstanding subsection (a), a governing board
of a school district of the first class may renew a charter for
a period of one (1) year if the board of school directors
determines that there is insufficient data concerning the
charter school's academic performance to adequately assess that
performance and determines that an additional year of
performance data would yield sufficient data to assist the
governing board in its decision whether to renew the charter for
a period of five (5) years.
(2) A one-year renewal pursuant to paragraph (1) shall not
be considered an adjudication and may not be appealed to the
State Charter School Appeal Board.
(3) A governing board of a school district of the first
class does not have the authority to renew a charter for
successive one (1) year periods.]
(c) (1) A charter school or regional charter school may
request amendments to its approved written charter by filing a
written document describing the requested amendment with the
local board of school directors.
(2) Within twenty (20) days of its receipt of the request
for an amendment, the local board of school directors shall hold
a public hearing on the requested amendment under 65 Pa.C.S. Ch.
7 (relating to open meetings).
(3) Within twenty (20) days after the hearing, the local
board of school directors shall grant or deny the requested
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amendment. Failure by the local board of school directors to
hold a public hearing and to grant or deny the amendment within
the time period specified in this subsection shall be deemed an
approval.
(4) An applicant for an amendment shall have the right to
appeal the denial of a requested amendment to the appeal board
provided for under section 1721-A.
Section 11. Section 1721-A(a) and (e) of the act, added June
19, 1997 (P.L.225, No.22), are amended to read:
Section 1721-A. State Charter School Appeal Board.--(a) The
State Charter School Appeal Board shall consist of the Secretary
of Education and [six (6)] the following members who shall be
appointed by the Governor by and with the consent of a majority
of all the members of the Senate. [Appointments by the Governor
shall not occur prior to January 1, 1999.] The Governor shall
select the chairman of the appeal board to serve at the pleasure
of the Governor. The members shall include:
(1) A parent of a school-aged child enrolled in a charter
school entity.
(2) A school board member.
(3) A certified teacher actively employed in a public
school.
(4) A faculty member or administrative employe of an
institution of higher education.
(5) A member of the business community.
(6) A member of the State Board of Education.
(7) An administrator of a charter school entity.
(8) A member of the board of trustees of a charter school
entity.
The term of office of members of the appeal board, other than
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the secretary, shall be for a period of four (4) years or until
a successor is appointed and qualified, except that, of the
initial appointees, the Governor shall designate two (2) members
to serve terms of two (2) years, two (2) members to serve terms
of three (3) years and two (2) members to serve terms of four
(4) years. A parent member appointed under paragraph (1) shall
serve a term of four (4) years, provided the member's child
remains enrolled in the charter school entity. Any appointment
to fill any vacancy shall be for the period of the unexpired
term or until a successor is appointed and qualified.
* * *
(e) Meetings of the appeal board shall be conducted under
[the act of July 3, 1986 (P.L.388, No.84), known as the
"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
Documents of the appeal board shall be subject to the [act of
June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
Know Law] act of February 14, 2008 (P.L.6, No.3), known as the
"Right-to-Know Law".
Section 12. Section 1722-A(a), (b) and (d) of the act,
amended November 17, 2010 (P.L.996, No.104), are amended and the
section is amended by adding subsections to read:
Section 1722-A. Facilities.--(a) A charter school entity
may be located in an existing public school building, in a part
of an existing public school building, in space provided on a
privately owned site, in a public building or in any other
suitable location.
(b) The charter school entity facility shall be exempt from
public school facility regulations except those pertaining to
the health or safety of [the pupils] students.
(b.1) (1) A charter school entity shall have the right of
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first refusal to purchase or lease, for educational purposes
only, a public school building or a part of a public school
building which is no longer in active use by the property
titleholder, at the price of one of the following:
(i) The last best offer above fair market value received in
the ninety (90) days preceding the charter school entity's
offer.
(ii) Fair market value, if no offer has been received in the
ninety (90) days preceding the charter school entity's offer.
(iii) Below fair market value, upon the mutual agreement of
the school entity and the charter school entity.
(2) A school entity shall accept an offer from a charter
school entity that conforms to the provisions of paragraph (1).
(3) The department shall provide a page on its publicly
accessible Internet website on which school entities are
required to post a notice for each public school building or
part of a public school building that is available for purchase
or lease. A school entity shall submit a notice to the
department on a form to be developed by the department. The
department shall post the notice within five (5) days of
receiving the form.
(4) The following shall apply to the sale or lease of a
public school building or a part of a public school building by
a school entity:
(i) A school entity may not enter a contract to sell or
lease a building or part of a building until at least thirty
(30) days after the posting of a notice as required under
paragraph (3).
(ii) Where two (2) or more charter school entities make
offers on the same building or part of a building that conform
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to the provisions of this subsection, the school entity shall:
(A) Accept the first offer, if the offers are equal in
dollar amount.
(B) Accept the best offer, if the offers differ in dollar
amount.
(d) Notwithstanding any other provision of this act, a
school district [of the first class] may, in its discretion,
permit a charter school or regional charter school to operate
its school at more than one location.
* * *
(f) (1) Alcoholic beverages shall not be available for
consumption, purchase or sale in any charter school entity
facility.
(2) If, in the case of a charter school or regional charter
school, the local board of school directors reasonably believes
that alcoholic beverages have been made available for
consumption, purchase or sale in the charter school or regional
charter school facility, the local board of school directors
shall notify the department.
(3) If alcoholic beverages have been made available for
consumption, purchase or sale in a charter school entity
facility, the secretary shall order the following forfeitures
against the charter school entity:
(i) A fine of one thousand dollars ($1,000) for the first
violation.
(ii) A fine of five thousand dollars ($5,000) for the second
or subsequent violation.
(4) The charter school entity may appeal the order of the
secretary under 2 Pa.C.S. Chs. 5 (relating to practice and
procedure) and 7 (relating to judicial review).
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Section 13. Section 1723-A(a), (b) and (d) of the act,
amended June 26, 1999 (P.L.394, No.36) and July 9, 2008
(P.L.846, No.61), are amended and the section is amended by
adding a subsection to read:
Section 1723-A. [Enrollment] Admission and Enrollment
Requirements.--(a) (1) All resident children in this
Commonwealth who submit a completed enrollment form in
accordance with clause (3) qualify for admission to a charter
school entity within the provisions of subsection (b). [If] In
the case of a charter school or regional charter school, if more
students apply to the charter school or regional charter school
than the number of attendance slots available in the school,
then students must be selected on a random basis from a pool of
[qualified applicants meeting the established eligibility
criteria and submitting an application] eligible applicants who
have submitted an enrollment form in accordance with clauses (3)
and (4) by the deadline established by the charter school or
regional charter school, except that the charter school or
regional charter school may give preference in enrollment to a
child of a parent who has actively participated in the
development of the charter school [and] or regional charter
school, to siblings of students presently enrolled in the
charter school or regional charter school and to siblings of
students selected for enrollment during the lottery process.
First preference shall be given to students who reside in the
district or districts[.] in which the charter school or regional
charter school is physically located .
(2) If a charter school or regional charter school has a
waiting list following its initial selection of eligible
applicants under clause (1), the charter school or regional
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charter school shall select eligible applicants from the waiting
list as spaces become available. All children shall be assigned
to the waiting list on a random basis. When selecting eligible
applicants from the waiting list, a charter school or regional
charter school shall give first preference to students as
provided under clause (1) and to those who reside in the
district or districts in which the charter school or regional
charter school is physically located until the charter school or
regional charter school again reaches its maximum capacity of
students. If a charter school or regional charter school has a
waiting list, once the charter school or regional charter school
has exhausted the waiting list of resident children, it may then
enroll children on the waiting list who reside outside of the
district. Nonresident children shall also be selected on a
random basis. If a charter school or regional charter school and
the school district from which it is authorized have voluntarily
capped enrollment or the district attempts to involuntarily cap
enrollment of resident students and the charter school or
regional charter school has enrolled the maximum number of
resident students, the charter school or regional charter school
may enroll students residing outside of the district.
(3) The State board, in consultation with the department and
representatives of charter school entities, shall develop a
standard enrollment form that shall be used by all eligible
applicants to apply to a charter school entity. The standard
enrollment form shall only request information necessary to
allow the charter school entity to identify the student, grade
level and residency, including:
(i) The student's name, physical address, telephone number,
age, birth date and current grade level.
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(ii) The name, physical address, telephone number and e-mail
address of the student's parent or guardian.
(4) The standard enrollment form shall be made physically
available at each charter school entity, in a form that complies
with Federal and State law and posted on the publicly accessible
Internet website of each charter school entity, if available. A
charter school entity may accept the enrollment form via
electronic means.
(5) When a student applies to a charter school entity, a
charter school entity shall not require or request information
beyond the contents of the standard enrollment form developed by
the State board.
(6) Nothing in this section shall prohibit a charter school
entity from requesting the submission of additional records and
information that public schools are entitled to receive after a
student is accepted for admission to a charter school entity.
(7) As used in this subsection "eligible applicant" shall
mean a student who is seeking to enter a grade level offered by
the charter school entity and meets the requirements of 22 Pa.
Code §§ 11.12 (relating to school age), 11.13 (relating to
compulsory school age), 11.14 (relating to admission to
kindergarten when provided), 11.15 (relating to admission of
beginners), 11.16 (relating to early admission of beginners) and
12.1 (relating to free education and attendance) and student
residency requirements.
(b) (1) A charter school entity shall not discriminate in
its admission policies or practices on the basis of intellectual
ability, [except as provided in paragraph (2), or] athletic
ability, measures of achievement or aptitude, status as a person
with a disability, proficiency in the English language or any
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other basis that would be illegal if used by a school district.
(2) A charter school entity may limit [admission] its
academic focus to a particular grade level, a targeted
population group composed of at-risk students[, or areas of
concentration of the school such as mathematics, science or the
arts. A charter school may establish reasonable criteria to
evaluate prospective students which shall be outlined in the
school's charter.] or a specialized area or accelerated program
of study, such as mathematics, science or the arts.
* * *
(d) (1) Enrollment of students in a charter school [or
cyber charter school] entity , or expansion of a charter school
entity into additional grade levels, shall not be subject to a
cap or otherwise limited by any past or future action of a board
of school directors, a board of control established under
Article XVII-B, a special board of control established under
section 692 or any other governing authority[, unless agreed to
by the charter school or cyber charter school as part of a
written charter pursuant to section 1720-A].
(2) The provisions of this subsection shall apply to a
charter school [or cyber charter school] entity regardless of
whether the charter was approved prior to or is approved
subsequent to the effective date of this subsection.
(e) A school district's obligation to make payments for
students enrolled in a charter school entity shall be governed
by section 1725-A or, in the case of students who are below a
school district's age of enrollment, by the terms of any charter
or service contract between a school district and a charter
school entity. Notwithstanding the above, absent language to the
contrary in a charter or service contract between a school
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district and a charter school entity, a school district shall
not be obligated to fund a four-year-old kindergarten program if
the school district has exercised its discretion not to offer
such a program in its own schools.
Section 14. Section 1725-A of the act, amended or added June
19, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and
June 29, 2002 (P.L.524, No.88), is amended to read:
Section 1725-A. Funding for Charter [Schools] School
Entities.--(a) Funding for a charter school entity shall be
provided in the following manner:
(1) There shall be no tuition charge for a resident or
nonresident student attending a charter school entity.
(2) [For non-special education students, the charter school
shall receive for each student enrolled no less than the
budgeted total expenditure per average daily membership of the
prior school year, as defined in section 2501(20), minus the
budgeted expenditures of the district of residence for nonpublic
school programs; adult education programs; community/junior
college programs; student transportation services; for special
education programs; facilities acquisition, construction and
improvement services; and other financing uses, including debt
service and fund transfers as provided in the Manual of
Accounting and Related Financial Procedures for Pennsylvania
School Systems established by the department. This amount shall
be paid by the district of residence of each student.] For non-
special education students, the charter school entity shall
receive for each student enrolled the following, which shall be
paid by the school district of residence of each student by
deduction and transfer from all State payments due to the school
district of residence as provided for under clause (5):
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(i) Subject to clause (ii), no less than the budgeted total
expenditure per average daily membership of the prior school
year, as defined in section 2501(20), minus the budgeted
expenditures of the district of residence for nonpublic school
programs; adult education programs; community/junior college
programs; student transportation services; for special education
programs; facilities acquisition, construction and improvement
services; and other financing uses, including debt service and
fund transfers as provided in the Manual of Accounting and
Related Financial Procedures for Pennsylvania School Systems
established by the department.
(ii) Beginning in the 2015-2016 school year, the following:
(A) For each student enrolled in a charter school or
regional charter school, no less than the budgeted total
expenditure per average daily membership of the prior school
year, as defined in section 2501(20), minus the budgeted
expenditures of the district of residence for nonpublic school
programs; adult education programs; community/junior college
programs; student transportation services; special education
programs; facilities acquisition, construction and improvement
services; and other financing uses, including debt service and
fund transfers as provided in the Manual of Accounting and
Related Financial Procedures for Pennsylvania School Systems
established by the department.
(B) For each student enrolled in a cyber charter school, no
less than the budgeted total expenditure per average daily
membership of the prior school year, as defined in section
2501(20), minus the following:
(I) the budgeted expenditures of the district of residence
for nonpublic school programs; adult education programs;
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community/junior college programs; student transportation
services; special education programs; facilities acquisition,
construction and improvement services; other financing uses,
including debt service and fund transfers as provided in the
Manual of Accounting and Related Financial Procedures for
Pennsylvania School Systems established by the department; and
food services; and
(II) during the 2015-2016 and 2016-2017 school years only,
the actual total amount the district of residence paid to cyber
charter schools under this section for the prior school year.
(2.1) The amount under clause (2) shall be calculated by
each school district on a form prescribed by the secretary in
accordance with this section. The secretary, upon receipt of a
school district's calculation, shall review the school
district's calculation and may request supporting documentation
from the school district regarding its calculation. If the
secretary finds an error or discrepancy in a school district's
calculation, the secretary shall require the school district to
correct the calculation and require the school district to
notify affected charter school entities.
(3) [For special education students, the charter school
shall receive for each student enrolled the same funding as for
each non-special education student as provided in clause (2),
plus an additional amount determined by dividing the district of
residence's total special education expenditure by the product
of multiplying the combined percentage of section 2509.5(k)
times the district of residence's total average daily membership
for the prior school year. This amount shall be paid by the
district of residence of each student.] For special education
students, the charter school entity shall receive for each
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student enrolled the same funding as for each non-special
education student as provided under clause (2), plus an
additional amount determined by dividing the total special
education expenditure of the school district of residence by the
product of:
(i) the combined percentage of section 2509.5(k) applicable
to the school year; and
(ii) the total average daily membership of the school
district of residence for the prior school year.
(3.1) The following apply:
(i) The amount under clauses (2) and (3) shall be paid by
the school district of residence of each student by deduction
and transfer from all State payments due to the school district
of residence as provided under clause (5).
(ii) If a charter school entity disputes the accuracy of a
school district's calculation under clauses (2) and (3), the
charter school entity shall file a notice of the dispute with
the secretary, who shall hold a hearing to determine the
accuracy of the school district's calculation within thirty (30)
days of the notice.
(iii) The secretary shall determine the accuracy of the
school district's calculation and make any necessary billing
adjustment within thirty (30) days of the hearing.
(iv) The school district shall bear the burden of production
and proof with respect to its calculation under this clause.
(v) The school district shall be liable for the reasonable
legal fees incurred by a charter school entity if the charter
school entity is the substantially prevailing party after a
hearing under this section. The charter school entity shall be
liable for the reasonable legal fees incurred by the school
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district if the school district is the substantially prevailing
party after a hearing under this section.
(vi) All decisions of the secretary under this clause shall
be subject to appellate review by Commonwealth Court.
(4) [A charter school may request the intermediate unit in
which the charter school is located to provide services to
assist the charter school to address the specific needs of
exceptional students. The intermediate unit shall assist the
charter school and bill the charter school for the services. The
intermediate unit may not charge the charter school more for any
service than it charges the constituent districts of the
intermediate unit.] A charter school entity may request the
intermediate unit or school district in which the charter school
entity is located to provide services to assist the charter
school entity to address the specific needs of non-special
education and special education students. The intermediate unit
or school district shall assist the charter school entity and
bill the charter school entity for the services. The
intermediate unit may not charge the charter school entity more
for any service than it charges the constituent districts of the
intermediate unit. Nothing under this clause shall preclude an
intermediate unit or school district from contracting with a
charter school entity to provide the intermediate unit or school
district with services to assist the intermediate unit or school
district to address specific needs of non-special education and
special education students.
(5) [Payments shall be made to the charter school in twelve
(12) equal monthly payments, by the fifth day of each month,
within the operating school year. A student enrolled in a
charter school shall be included in the average daily membership
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of the student's district of residence for the purpose of
providing basic education funding payments and special education
funding pursuant to Article XXV. If a school district fails to
make a payment to a charter school as prescribed in this clause,
the secretary shall deduct the estimated amount, as documented
by the charter school, from any and all State payments made to
the district after receipt of documentation from the charter
school.] Beginning in the 2015-2016 school year, the following
apply:
(i) Payments shall be made to the charter school entity in
twelve (12) equal monthly payments, according to the established
monthly unipay schedule within the operating school year or any
subsequent school year.
(ii) Except as provided for in subclause (v), payments shall
be made directly by the secretary deducting and paying to the
charter school entity the estimated amount, as documented by the
charter school entity, from:
(A) all State payments due to the school district of
residence; or
(B) if no payments are due to the school district of
residence, from all State payments reasonably expected to be due
in the next established monthly unipay schedule, after receipt
of documentation from the charter school entity as to its
enrollment.
(iii) At least thirty (30) days prior to the scheduled
payment date each month, a charter school entity shall provide
to the department and to the school district of residence of
each student enrolled in the charter school entity documentation
of the charter school entity's enrollment, on a form to be
developed by the secretary within sixty (60) days of the
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effective date of this section. The form, which shall be
developed in consultation with representatives of charter school
entities and school districts, shall require the charter school
entity to provide to the department and to the school district
of residence of each student enrolled in the charter school
entity, documentation of each student's current enrollment in
the charter school entity and current residence in the school
district, including the following information:
(A) Student's name.
(B) Student's home address.
(C) Name and telephone number of student's parent or
guardian.
(D) Student's date of birth.
(E) Student's grade level.
(F) Type of school in which student was previously enrolled.
(G) Student's date of enrollment.
(H) Whether each student is being educated under an
individualized education plan under the Individuals with
Disabilities Education Act (Public Law 91-230, 20 U.S.C. § 1400
et seq.).
(I) The tuition amount due on account of each student.
(J) The total amount due from the school district for that
month.
(K) Copies of the actual documents used by the charter
school entity to verify each student's residence in the school
district.
The secretary shall not make payments under this section until
the charter school entity provides the department and the school
district of residence with a completed form and accompanying
documentation as required under this clause. A charter school
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entity may make only one (1) payment request per month under
this clause. After a charter school entity makes a payment
request under this clause, any necessary corrections or
adjustments may be made in the next subsequent monthly payment
request.
(iv) The secretary's obligation to make payments under this
section is mandatory and ministerial, except that payments made
pursuant to this section shall not be given priority over
payments required pursuant to sections 633 and 785 and 53
Pa.C.S. § 8125(b) (relating to security for tax anticipation
notes and sinking fund), or an agreement pursuant to which the
Commonwealth is required to make payment to a holder of debt
issued by or on behalf of a school entity. If payments required
under sections 633 and 785 and 53 Pa.C.S. § 8125(b) preclude the
timely payment of funds to a charter school entity under section
1725-A or will cause the board of school directors of a school
district to fail to pay or provide for payment under this
subsection, nothing shall preclude the secretary from
withholding funds from any and all State payments made to the
school district for the operating school year or for any
subsequent operating school year.
(v) If there are insufficient State payments due to a school
district in the established monthly unipay schedule to cover all
charter school entity deductions and transfers, the school
district shall be responsible for paying the unpaid balance
directly to the charter school entity not more than ten (10)
days following the established monthly unipay schedule.
(vi) A student enrolled in a charter school entity shall be
included in the average daily membership of the student's school
district of residence for the purpose of providing basic
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education funding payments and special education funding under
Article XXV.
(6) [Within thirty (30) days after the secretary makes the
deduction described in clause (5), a school district may notify
the secretary that the deduction made from State payments to the
district under this subsection is inaccurate. The secretary
shall provide the school district with an opportunity to be
heard concerning whether the charter school documented that its
students were enrolled in the charter school, the period of time
during which each student was enrolled, the school district of
residence of each student and whether the amounts deducted from
the school district were accurate.] The following apply:
(i) Within thirty (30) days after the payment is made to the
charter school entity as described under clause (5), a school
district may notify the secretary that the estimated amount, as
documented by the charter school entity, is inaccurate.
(ii) Within thirty (30) days of the notice by the school
district under subclause (i), the secretary shall provide the
school district with a hearing concerning whether the charter
school entity documented that students were enrolled in the
charter school entity, the period of time during which each
student was enrolled in the charter school entity, the school
district of residence of each student enrolled in the charter
school entity and whether the amounts deducted from or paid by
the school district were accurate.
(iii) The burden of proof and production at the hearing
shall be on the school district. A hearing shall not be held
before the secretary deducts and transfers to the charter school
entity the amount estimated by the charter school entity.
(iv) The secretary shall determine the accuracy of the
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amount documented by the charter school entity and make any
necessary payment adjustment within thirty (30) days of the
hearing.
(v) The school district shall be liable for the reasonable
legal fees incurred by a charter school entity if the charter
school entity is the substantially prevailing party after a
hearing under this section. The charter school entity shall be
liable for the reasonable legal fees incurred by the school
district if the school district is the substantially prevailing
party after a hearing under this section.
(vi) All decisions of the secretary under this section shall
be subject to appellate review by Commonwealth Court.
(vii) Supersedeas shall not be granted to the secretary or
any party to the proceeding on an appeal from the decision of
the secretary under this section; and, absent a court order, the
secretary shall not hold any payments in escrow.
[(b) The Commonwealth shall provide temporary financial
assistance to a school district due to the enrollment of
students in a charter school who attended a nonpublic school in
the prior school year in order to offset the additional costs
directly related to the enrollment of those students in a public
charter school. The Commonwealth shall pay the school district
of residence of a student enrolled in a nonpublic school in the
prior school year who is attending a charter school an amount
equal to the school district of residence's basic education
subsidy for the current school year divided by the district's
average daily membership for the prior school year. This payment
shall occur only for the first year of the attendance of the
student in a charter school, starting with school year 1997-
1998. Total payments of temporary financial assistance to school
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districts on behalf of a student enrolling in a charter school
who attended a nonpublic school in the prior school year shall
be limited to funds appropriated for this program in a fiscal
year. If the total of the amount needed for all students
enrolled in a nonpublic school in the prior school year who
enroll in a charter school exceeds the appropriation for the
temporary financial assistance program, the amount paid to a
school district for each qualifying student shall be pro rata
reduced. Receipt of funds under this subsection shall not
preclude a school district from applying for a grant under
subsection (c).
(c) The Commonwealth shall create a grant program to provide
temporary transitional funding to a school district due to the
budgetary impact relating to any student's first-year attendance
at a charter school. The department shall develop criteria which
shall include, but not be limited to, the overall fiscal impact
on the budget of the school district resulting from students of
a school district attending a charter school. The criteria shall
be published in the Pennsylvania Bulletin. This subsection shall
not apply to a public school converted to a charter school under
section 1717-A(b). Grants shall be limited to funds appropriated
for this purpose.]
(d) It shall be lawful for any charter school entity to
receive, hold, manage and use, absolutely or in trust, any
devise, bequest, grant, endowment, gift or donation of any
property, real or personal and/or mixed, which shall be made to
the charter school entity for any of the purposes of this
article.
(e) It shall be unlawful for any trustee of a charter school
entity or any board of trustees of a charter school entity or
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any other person affiliated in any way with a charter school
entity to demand or request, directly or indirectly, any gift,
donation or contribution of any kind from any parent, teacher,
employe or any other person affiliated with the charter school
entity as a condition for employment or enrollment and/or
continued attendance of any pupil. Any donation, gift or
contribution received by a charter school entity shall be given
freely and voluntarily.
(f) A charter school entity may not provide discounts to a
school district or waive payments under this section for any
student, except in the case of a school district identified for
financial recovery status under Article VI-A.
Section 15. Sections 1728-A and 1729-A(a), (b) and (c) of
the act, added June 19, 1997 (P.L.225, No.22), are amended to
read:
Section 1728-A. Annual Reports and Assessments.--(a) (1)
The local board of school directors shall annually assess
whether each charter school or regional charter school is
meeting the goals of its charter and shall conduct a
comprehensive review prior to [granting a five (5) year renewal
of the charter] renewing the charter pursuant to section 1720-
A(a)(2). The local board of school directors shall have ongoing
access to the records and facilities of the charter school or
regional charter school to ensure that the charter school or
regional charter school is in compliance with its charter and
this act and that requirements for testing, civil rights and
student health and safety are being met.
(2) Ongoing access to a charter school's or regional charter
school's records shall mean that the local board of school
directors shall have access to records such as financial
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reports, financial audits, aggregate standardized test scores
without student-identifying information and teacher
certification and personnel records.
(3) Charter schools and regional charter schools shall
comply fully with the requirements of the Family Educational
Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. §
1232g) and associated regulations. No personally identifiable
information from education records shall be provided by the
charter school or regional charter school to the school district
except in compliance with the Family Educational Rights and
Privacy Act of 1974.
(b) In order to facilitate the local board's review and
secretary's report, each charter school or regional charter
school shall submit an annual report no later than August 1 of
each year to the local board of school directors and the
secretary in the form prescribed by the secretary.
[(c) Five (5) years following the effective date of this
article, the secretary shall contract with an independent
professional consultant with expertise in public and private
education. The consultant shall receive input from members of
the educational community and the public on the charter school
program. The consultant shall submit a report to the secretary,
the Governor and the General Assembly and an evaluation of the
charter school program, which shall include a recommendation on
the advisability of the continuation, modification, expansion or
termination of the program and any recommendations for changes
in the structure of the program.]
(d) A charter school entity shall form an independent audit
committee of its board of trustees members which shall review at
the close of each fiscal year a complete certified audit of the
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operations of the charter school entity. The audit shall be
conducted by a qualified independent certified public
accountant. The audit shall be conducted under generally
accepted audit standards of the Governmental Accounting
Standards Board and shall include the following:
(1) An enrollment test to verify the accuracy of student
enrollment and reporting to the State.
(2) Full review of expense reimbursements for board of
trustees members and administrators, including sampling of all
reimbursements.
(3) Review of internal controls, including review of
receipts and disbursements.
(4) Review of annual Federal and State tax filings,
including the Internal Revenue Service Form 990, Return of
Organization Exempt from Income Tax and all related schedules
and appendices for the charter school entity and charter school
foundation, if applicable.
(5) Review of the financial statements of any charter school
foundation.
(6) Review of the selection and acceptance process of all
contracts publicly bid pursuant to section 751.
(7) Review of all board policies and procedures with regard
to internal controls, code of ethics, conflicts of interest,
whistle-blower protections, complaints from parents or the
public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
meetings), finances, budgeting, audits, public bidding and
bonding.
(e) The certified audit under subsection (d) and the annual
budget under subsection (g) are public documents and shall be
made available on the charter school entity's publicly
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accessible Internet website, if available, and, in the case of a
charter school or regional charter school, on the school
district's publicly accessible Internet website.
(f) A charter school entity may be subject to an annual
audit by the Auditor General, in addition to any other audits
required by Federal law or this article.
(g) A charter school entity shall annually provide the
department and, in the case of a charter school or regional
charter school, shall annually provide the school district, with
a copy of the annual budget for the operation of the charter
school entity that identifies the following:
(1) The source of funding for all expenditures.
(2) Where funding is provided by a charter school
foundation, the amount of funds and a description of the use of
the funds.
(3) The salaries of all administrators of the charter school
entity.
(4) All expenditures to an educational management service
provider.
(h) (1) Notwithstanding any other provision of law, a
charter school entity and any affiliated charter school
foundation shall make copies of its annual Federal and State tax
filings available upon request and on the charter school
entity's or foundation's publicly accessible Internet website,
if available, including Internal Revenue Service Form 990,
Return of Organization Exempt from Income Tax and all related
schedules and appendices.
(2) The charter school foundation shall also make copies of
its annual budget available upon request and on the foundation's
or the charter school entity's publicly accessible Internet
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website within thirty (30) days of the close of the foundation's
fiscal year.
(3) The annual budget shall include the salaries of all
employes of the charter school foundation.
Section 1729-A. Causes for Nonrenewal or Termination.--(a)
During the term of the charter or at the end of the term of the
charter, the local board of school directors may choose to
revoke or not to renew the charter based on any of the
following:
(1) One or more material violations of any of the
conditions, standards or procedures contained in the written
charter signed pursuant to section 1720-A.
(2) Failure to meet the requirements for student performance
[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
subsequent regulations promulgated to replace 22 Pa. Code Ch. 5]
on assessments or failure to meet any performance standard set
forth in the written charter signed pursuant to section [1716-A]
1720-A.
(3) Failure to meet generally accepted standards of fiscal
management or audit requirements.
(4) Violation of provisions of this article.
(5) Violation of any provision of law from which the charter
school entity has not been exempted, including Federal laws and
regulations governing children with disabilities.
[(6) The charter school has been convicted of fraud.]
* * *
(b) [A member of the board of trustees who is convicted of a
felony or any crime involving moral turpitude shall be
immediately disqualified from serving on the board of trustees.]
If, after a hearing under this section, a local board of school
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directors or, in the case of a cyber charter school, the
department, proves by a preponderance of the evidence that an
administrator or board member of a charter school entity has
violated this article, the terms and conditions of the charter
or any other law, the local board of school directors or, in the
case of a cyber charter school, the department may require the
charter school entity to replace an administrator or board of
trustees member in order to obtain renewal of the charter. The
local board of school directors or, in the case of a cyber
charter school, the department may refer its findings to the
district attorney with jurisdiction or to the Office of Attorney
General for prosecution if the local board of school directors
or, in the case of a cyber charter school, the department
discovers or receives information about possible violations of
law by any person affiliated with or employed by a charter
school entity.
(c) Any notice of revocation or nonrenewal of a charter
given by the local board of school directors of a school
district shall state the grounds for such action with reasonable
specificity and give reasonable notice to the [governing] board
of trustees of the charter school or regional charter school of
the date on which a public hearing concerning the revocation or
nonrenewal will be held. The local board of school directors
shall conduct such hearing, present evidence in support of the
grounds for revocation or nonrenewal stated in its notice and
give the charter school or regional charter school reasonable
opportunity to offer testimony before taking final action.
Formal action revoking or not renewing a charter shall be taken
by the local board of school directors at a public meeting held
pursuant to [the act of July 3, 1986 (P.L.388, No.84), known as
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the "Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating to open
meetings) after the public has had thirty (30) days to provide
comments to the board. All proceedings of the local board
pursuant to this subsection shall be subject to 2 Pa.C.S. Ch. 5
Subch. B (relating to practice and procedure of local agencies).
Except as provided in subsection (d), the decision of the local
board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B (relating
to judicial review of local agency action).
* * *
Section 16. The act is amended by adding sections to read:
Section 1729.1-A. Evaluation of Educators.--(a) All
applications by a charter school entity for a charter or for the
renewal of a charter shall include a system of evaluation for
educators that includes:
(1) At least four (4) rating categories of educator
performance.
(2) Multiple measures of student performance which shall
include, but may not be limited to, value-added assessment
system data made available by the department under section 221
and student performance on the most recent assessments for which
results have been released by the department and may include
goals specific to the mission of the charter school entity's
charter.
(b) Nothing in this section shall preempt the powers of a
board of trustees under section 1716-A(a) nor affect the intent
of the General Assembly provided in section 1702-A(3) and (4).
(c) For purposes of this section, the term "educator" shall
include all professional employes who are certified as teachers
and noncertified staff members who teach in a charter school
entity.
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Section 1729.2-A. Multiple Charter School Organizations.--
(a) Establishment shall be as follows:
(1) Subject to the requirements of this section and 15
Pa.C.S. Pt. II Subpt. C (relating to nonprofit corporations),
two (2) or more charter schools may consolidate into a multiple
charter school organization if both of the following apply:
(i) The department approves the consolidation as proposed in
the application form submitted to the department pursuant to
subsection (c). If the department does not approve the proposed
consolidation within forty-five (45) days after receipt of the
application, the department will be deemed to have approved the
consolidation.
(ii) Each school district that granted the initial charter
of any charter school included in the proposed consolidation
approves, by a majority vote of the local board of school
directors, a resolution approving the consolidation as proposed
in the application submitted to the local board of school
directors pursuant to subsection (c). If a local board of school
directors does not adopt a resolution under this clause
approving or rejecting the proposed consolidation within forty-
five (45) days after receipt of the application, the school
district will be deemed to have approved the consolidation.
(2) The multiple charter school organization shall be:
(i) granted legal authority to operate two (2) or more
individual charter schools under the oversight of a single board
of trustees and a chief administrator who shall oversee and
manage the operation of the individual charter schools under its
organization; and
(ii) subject to all of the requirements of this article
unless otherwise provided for under this section.
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(3) Nothing under this section shall be construed to affect
or change the terms or conditions of any individual charter
previously granted that is consolidated under this section.
(b) A charter school that, within either of the most recent
two (2) school years, has failed to meet any of the following
shall not be eligible to consolidate with another charter
school:
(1) Requirements for student performance set forth in 22 Pa.
Code Ch. 4 (relating to academic standards and assessment).
(2) Accepted standards of fiscal management or audit
requirements.
(3) Performance standards set forth by the performance
matrix established under section 1731.2-A or, prior to the
effective date of the regulations implementing the performance
matrix, a School Performance Profile score of at least 80.0;
Provided, that a charter school that has failed to meet any of
these requirements may consolidate if the consolidation includes
a charter school demonstrating that it has satisfied such
requirements for the most recent two (2) school years.
(c) The State board, in consultation with the department,
shall develop and issue a standard application form that
multiple charter school organization applicants must submit to
the department and to the local board of school directors of
each school district that granted the initial charter of any
charter school included in the proposed consolidation. The
application form shall contain the following information:
(1) The name of the multiple charter school organization.
(2) The names of the charter schools seeking consolidation
under this section.
(3) A copy of the approved charter of each charter school
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seeking to consolidate under this section.
(4) An organizational chart clearly presenting the proposed
governance structure of the multiple charter school
organization, including lines of authority and reporting between
the board of trustees, chief administrator, administrators,
staff and any educational management service provider that will
play a role in providing management services to the charter
schools under its jurisdiction.
(5) A clear description of the roles and responsibilities
for the board of trustees, chief administrator, administrators
and any other entities, including a charter school foundation,
shown in the organizational chart.
(6) A clear description of the method for the appointment or
election of members of the board of trustees.
(7) Standards for board of trustees performance, including
compliance with all applicable laws, regulations and terms of
the charter.
(8) Enrollment procedures for each individual charter school
included in its charter.
(9) Any other information as deemed necessary by the State
board.
(d) A multiple charter school organization may:
(1) Participate in the assessment system in the same manner
in which a school district participates, with its individual
charter schools participating in the assessment system in the
same manner as individual schools within school districts. All
data gathered for purposes of evaluation shall be gathered in
the same manner in which data is gathered in the case of school
districts and individual schools within school districts.
Nothing in this paragraph shall alter the manner in which
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charter school performance on assessments is measured as
required under the No Child Left Behind Act of 2001 (Public Law
107-110, 115 Stat. 1425), or its successor Federal statute.
(2) Add existing charter schools to its organization by
obtaining the approval of the department and of the school
district that granted the initial charter of each charter school
proposed to be added under subsection (a)(1).
(3) Allow students enrolled in an individual charter school
to matriculate to another individual charter school under its
oversight so as to complete a course of instruction in an
educational institution from kindergarten through grade twelve
or otherwise in the best interests of the student.
(e) A multiple charter school organization shall be regarded
as the holder of the charter of each individual charter school
under its oversight and each previously or subsequently awarded
charter shall be subject to nonrenewal or revocation by the
local board of school directors that granted the initial charter
in accordance with this act. The nonrenewal or revocation of the
charter of an individual charter school under the oversight of a
multiple charter school organization shall not affect the status
of a charter awarded for any other individual charter school
under the oversight of the multiple charter school organization.
(f) Appeals shall be as follows:
(1) The appeal board shall have the exclusive review of an
appeal by an applicant for consolidation, with respect to the
rejection of a proposed consolidation by either the department
or a school district.
(2) In considering an appeal under this section, the appeal
board shall:
(i) Review the decision made by either the department or the
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school district on the record as certified by the entity that
made the decision being appealed, provided that the appeal board
may allow the department, a school district or the applicant for
consolidation to supplement the record if the supplemental
information was previously unavailable.
(ii) Meet to officially review the certified record no later
than thirty (30) days after the date of filing the appeal.
(iii) Issue a written decision affirming or denying the
appeal no later than sixty (60) days following its review of the
certified record.
(iv) Make its decision based on whether the proposed
consolidation satisfies the requirements of subsections (b) and
(c).
(3) The secretary shall recuse himself from all appeals of
decisions by the department and shall not participate in a
hearing, deliberation or vote on any appeal of a decision made
by the department.
(4) All decisions of the appeal board shall be subject to
appellate review by the Commonwealth Court. In the event of an
appeal of a decision by the appeal board to the Commonwealth
Court, the decision of the appeal board shall be stayed only
upon order of the appeal board, the Commonwealth Court or the
Pennsylvania Supreme Court.
(g) For purposes of this section, the term "charter school"
shall include a regional charter school.
Section 1731.1-A. Fund Balance Limits.--Fund balance limits
shall be as follows:
(1) For the 2015-2016 school year and each school year
thereafter, a charter school entity shall not accumulate an
unassigned fund balance greater than the charter school entity
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unassigned fund balance limit, which will be determined as
follows:
Charter School Entity
Total Budgeted Expenditures
Maximum Unassigned Fund
Balance as Percentage of
Total Budgeted Expenditures
Less than or equal to $11,999,999 12%
Between $12,000,000 and $12,999,999 11.5%
Between $13,000,000 and $13,999,999 11%
Between $14,000,000 and $14,999,999 10.5%
Between $15,000,000 and $15,999,999 10%
Between $16,000,000 and $16,999,999 9.5%
Between $17,000,000 and $17,999,999 9%
Between $18,000,000 and $18,999,999 8.5%
Greater Than or Equal to $19,000,000 8%
(2) For the 2015-2016 school year and each school year
thereafter, any unassigned fund balance in place on June 30,
2016, and on June 30 of each year thereafter in excess of the
charter school entity unassigned fund balance limit shall be
refunded on a pro rata basis within ninety (90) days to all
school districts that paid tuition to the charter school entity
in the prior school year, based upon the number of students for
whom each school district paid tuition to the charter school
entity multiplied by the school district's per student payment
under section 1725-A.
(3) By September 30, 2016, and by September 30 of each year
thereafter, each charter school entity shall provide the
department and all school districts that paid tuition to the
charter school entity in the prior school year with information
certifying compliance with this section. The information shall
be provided in a form and manner prescribed by the department
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and shall include information on the charter school entity's
estimated ending unassigned fund balance expressed as a dollar
amount and as a percentage of the charter school entity's total
budgeted expenditures for that school year.
(4) Unassigned funds of the charter school entity in excess
of the unassigned fund balance limit may not be used to pay
bonuses to any administrator, board of trustees member, employe,
staff member or contractor and may not be transferred to a
charter school foundation. If a charter school entity uses funds
in excess of the unassigned fund balance limit to pay bonuses to
any administrator, board of trustees member, employe, staff
member or contractor or transfers such funds to a charter school
foundation, the value of the bonus payment or fund transfer
shall be deducted by the department from the payment due the
charter school entity under section 1725-A and shall be refunded
on a pro rata basis to all school districts that paid tuition to
the charter school entity in the prior school year, based upon
the number of students for whom each school district paid
tuition to the charter school entity multiplied by the school
district's per student payment under section 1725-A.
(5) As used in this section, "unassigned fund balance" shall
mean that portion of the fund balance of a charter school entity
that provides funding or resources or otherwise serves to
support the charter school entity that is:
(i) available for expenditure or not legally or otherwise
segregated for a specific or tentative future use; and
(ii) held in the General Fund accounts of the charter school
entity.
Section 1731.2-A. Performance Matrix.--The following shall
apply:
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(1) Within eighteen (18) months of the effective date of
this section, the State board shall develop a standard
performance matrix to evaluate charter school entity performance
and shall promulgate regulations pursuant to the act of June 25,
1982 (P.L.633, No.181), known as the "Regulatory Review Act," to
implement this section.
(2) The performance matrix may assess performance by
utilizing objective criteria, including, but not limited to:
student performance on assessments; annual growth as measured by
the Pennsylvania Value-Added Assessment System; attendance;
attrition rates; graduation rates; other standardized test
scores; school safety; parent satisfaction; accreditation by a
nationally recognized accreditation agency, including the Middle
States Association of Colleges and Schools or another regional
institutional accrediting agency recognized by the United States
Department of Education or an equivalent federally recognized
body for charter school education; and other measures of school
quality, including measures for assessing teacher effectiveness.
(3) In developing the performance matrix, the State board
shall determine an academic quality benchmark the satisfaction
of which shall qualify a charter school entity for a ten (10)
year renewal term pursuant to section 1720-A(a)(2) or 1745-A(f)
(3). The academic quality benchmark shall be included in the
regulations required under clause (1).
(4) In developing the performance matrix, the State board
may:
(i) Contract for consulting services with an entity that has
experience in developing performance matrices if the services
are procured through a competitive bidding process.
(ii) To the extent possible, utilize an existing database
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developed by the department, including the School Performance
Profile.
(5) Neither the department nor any local board of school
directors or other school district governing authority may
develop a separate performance matrix for the evaluation of a
charter school entity.
(6) (i) A local board of school directors or other school
district governing authority shall utilize the standard
performance matrix as a primary factor in evaluating new and
renewal charter school and regional charter school applicants
and in annual monitoring and evaluation of charter schools and
regional charter schools.
(ii) The department shall utilize the standard performance
matrix as a primary factor in evaluating new and renewal cyber
charter school applicants, in evaluating consolidation
applications under section 1729.2-A and in annual monitoring and
evaluation of cyber charter schools.
(7) (i) In developing the performance matrix and
promulgating the regulations required under clause (1), the
State board shall convene and consult with a Statewide advisory
committee which shall consist of representatives of the
department and a minimum of seven (7) representatives from
charter schools, regional charter schools, cyber charter schools
and school district personnel. Members of the committee shall be
selected to be representative of the urban, rural and suburban
areas of this Commonwealth.
(ii) The Statewide advisory committee required to be
convened under subparagraph (i) shall be convened not later than
thirty (30) days after the effective date of this section and
shall meet regularly to fulfill requirements of this paragraph.
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(8) The department shall distribute the performance matrix
to all school districts and shall publish the matrix on the
department's publicly accessible Internet website.
Section 17. Section 1732-A of the act, amended or added June
19, 1997 (P.L.225, No.22), and June 29, 2002 (P.L.524, No.88),
is amended to read:
Section 1732-A. Provisions Applicable to Charter Schools and
Regional Charter Schools.--(a) Charter schools and regional
charter schools shall be subject to the following:
(1) Sections 108, 110, 111, 321, 325, 326, 327, 431, 436,
443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753,
[755,] 771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a),
1205.1, 1205.2, 1205.3, 1205.4, 1205.5, 1301, 1302, 1303, 1310,
1317, 1317.1, 1317.2, 1317.3, 1318, 1327, 1330, 1332, 1333,
1303-A, 1513, 1517, 1518, 1521, 1523, 1531, 1547, 2014-A,
Article XIII-A and Article XIV.
(2) Act of July 19, 1957 (P.L.1017, No.451), known as the
"State Adverse Interest Act."
(3) Act of July 17, 1961 (P.L.776, No.341), known as the
"Pennsylvania Fair Educational Opportunities Act."
(4) Act of July 19, 1965 (P.L.215, No.116), entitled "An act
providing for the use of eye protective devices by persons
engaged in hazardous activities or exposed to known dangers in
schools, colleges and universities."
(5) Section 4 of the act of January 25, 1966 (1965 P.L.1546,
No.541), entitled "An act providing scholarships and providing
funds to secure Federal funds for qualified students of the
Commonwealth of Pennsylvania who need financial assistance to
attend postsecondary institutions of higher learning, making an
appropriation, and providing for the administration of this
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act."
(6) Act of July 12, 1972 (P.L.765, No.181), entitled "An act
relating to drugs and alcohol and their abuse, providing for
projects and programs and grants to educational agencies, other
public or private agencies, institutions or organizations."
(7) Act of December 15, 1986 (P.L.1595, No.175), known as
the "Antihazing Law."
(8) 65 Pa.C.S. Ch. 7 (relating to open meetings).
(9) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
financial disclosure).
(b) Charter schools and regional charter schools shall be
subject to the following provisions of 22 Pa. Code:
[Section 5.216 (relating to ESOL).
Section 5.4 (relating to general policies).]
(1) Chapter 4 (relating to academic standards and
assessments).
(2) Chapter 11 (relating to pupil attendance).
(3) Chapter 12 (relating to students).
(4) Section 32.3 (relating to assurances).
(5) Section 121.3 (relating to discrimination prohibited).
(6) Section 235.4 (relating to practices).
(7) Section 235.8 (relating to civil rights).
(8) Chapter 711 (relating to charter school services and
programs for children with disabilities).
(c) (1) The secretary may promulgate additional regulations
relating to charter schools and regional charter schools.
(2) The secretary shall have the authority and the
responsibility to ensure that charter schools and regional
charter schools comply with Federal laws and regulations
governing children with disabilities. The secretary shall
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promulgate regulations to implement this provision.
Section 18. The act is amended by adding a section to read:
Section 1733-A. Effect on Existing Charter School
Entities.--(a) Within one (1) year of the effective date of
this section, a charter school entity established under section
1717-A, 1718-A or 1745-A prior to the effective date of this
section shall amend its current charter through the amendment
process under section 1720-A(c) or 1745-A(f)(5) as needed to
reflect the requirements of this article. Any renewal that takes
effect after June 30, 2015, shall be for the term specified
under section 1720-A(a)(2) or 1745-A(f)(3).
(b) A charter school entity approved after the effective
date of this section shall be in full compliance with this
article.
(c) Within sixty (60) days of the effective date of this
section, each charter school entity shall demonstrate, to the
satisfaction of the local board of school directors or, in the
case of a cyber charter school, to the satisfaction of the
department, that the charter school entity is in compliance with
sections 1332 and 1333, including the institution of truancy
proceedings when required under section 1333.
Section 19. Sections 1741-A(c) and 1742-A of the act, added
June 29, 2002 (P.L.524, No.88), are amended to read:
Section 1741-A. Powers and duties of department.
* * *
(c) Documents.--Documents of the appeal board shall be
subject to the act of [June 21, 1957 (P.L.390, No.212), referred
to as the Right-to-Know Law.] act of February 14, 2008 (P.L.6,
No.3), known as the "Right-to-Know Law."
Section 1742-A. Assessment and evaluation.
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(a) The department shall:
(1) Annually assess whether each cyber charter school is
meeting the goals of its charter and is in compliance with
the provisions of the charter and conduct a comprehensive
review prior to granting a [five-year] renewal of the charter
for the period specified in section 1745-A(f)(3).
(2) Annually review each cyber charter school's
performance on [the Pennsylvania System of School Assessment
test, standardized tests and other performance indicators to
ensure compliance with 22 Pa. Code Ch. 4 (relating to
academic standards and assessment) or subsequent regulations
promulgated to replace 22 Pa. Code Ch. 4] assessments.
(3) Have ongoing access to all records, instructional
materials and student and staff records of each cyber charter
school and to every cyber charter school facility to ensure
the cyber charter school is in compliance with its charter
and this subdivision.
(b) School districts, intermediate units, community colleges
and State system institutions shall provide a cyber charter
school with reasonable access to its facilities for the
administration of standardized testing as follows:
(1) A cyber charter school shall provide an intermediate
unit, school district, community college or State system
institution with at least 60 days' notice of the need for
facilities to be used for the administration of standardized
tests.
(2) Within 30 days of the cyber charter school's
request, the intermediate unit, school district, community
college or State system institution shall notify the cyber
charter school of the location of the facilities that will be
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provided, which shall be a quiet, separate location in which
cyber charter school students will not be commingled with
students of the intermediate unit, school district, community
college or State system institution.
(3) An intermediate unit, school district of residence,
community college or State system institution shall not be
required to make facilities available to a cyber charter
school on dates and times that may cause undue interference
with the educational programs of the intermediate unit,
school district, community college or State System
institution.
(4) Any facilities rental fee charged to the cyber
charter school and the payment thereof shall be in compliance
with the facility rental policy of the intermediate unit,
school district, community college or State system
institution that applies generally to all organizations and
community groups.
Section 20. Section 1743-A(e) of the act, added June 29,
2002 (P.L.524, No.88), is amended to read:
Section 1743-A. Cyber charter school requirements and
prohibitions.
* * *
(e) Students.--For each student enrolled, a cyber charter
school shall:
(1) provide all instructional materials, which may
include electronic or digital books in place of textbooks;
(2) provide all equipment, including, but not limited
to, a computer, computer monitor and printer; provided, that
a parent or guardian of more than one child who is enrolled
in the same cyber charter school may elect not to receive a
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separate computer, computer monitor and printer for each
enrolled child; and
(3) provide or reimburse for all technology and services
necessary for the on-line delivery of the curriculum and
instruction.
The Commonwealth shall not be liable for any reimbursement owed
to students, parents or guardians by a cyber charter school
under paragraph (3).
* * *
Section 21. Sections 1744-A, 1745-A and 1749-A(a) and (c) of
the act, added June 29, 2002 (P.L.524, No.88), are amended to
read:
Section 1744-A. School district and intermediate unit
responsibilities.
An intermediate unit or a school district in which a student
enrolled in a cyber charter school resides shall do all of the
following:
(1) Provide the cyber charter school within ten days of
receipt of the notice of the admission of the student under
section 1748-A(a) with all records relating to the student,
including transcripts, test scores and a copy of any
individualized education program for that student.
[(2) Provide the cyber charter school with reasonable
access to its facilities for the administration of
standardized tests required under this subdivision.]
(3) Upon request, provide assistance to the cyber
charter school in the delivery of services to a student with
disabilities. The school district or intermediate unit shall
not charge the cyber charter school more for a service than
it charges a school district.
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(4) Make payments to the cyber charter school under
section 1725-A.
Section 1745-A. Establishment of cyber charter school.
(a) Establishment.--A cyber charter school may be
established by an individual; one or more teachers who will
teach at the proposed cyber charter school; parents or guardians
of students who will enroll in the cyber charter school; a
nonsectarian college, university or museum located in this
Commonwealth; a nonsectarian corporation not-for-profit as
defined in 15 Pa.C.S. § 5103 (relating to definitions); a
corporation, association or partnership; or any combination of
the foregoing. Section 1327.1 shall not apply to a cyber charter
school established under this subdivision.
(b) Sectarian entities.--No cyber charter school shall be
established or funded by and no charter shall be granted to a
sectarian school, institution or other entity.
(b.1) Local board of school directors or intermediate
unit.--
(1) A cyber charter school may be established by a local
board of school directors or an intermediate unit if the
procedures and requirements of this article are satisfied.
(2) Nothing in this article shall be construed to
preclude a school district or an intermediate unit from
offering instruction via the Internet or other electronic
means, except that the instruction shall not be recognized as
a cyber charter school under this article unless the school
district or intermediate unit establishes a cyber charter
school pursuant to subsections (a) and (b.1)(1).
(c) Attendance.--Attendance at a cyber charter school shall
satisfy requirements for compulsory attendance, subject to
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penalties for violation of compulsory attendance requirements
under section 1333.
(d) Application.--An application to establish a cyber
charter school shall be submitted to the department by October 1
of the school year preceding the school year in which the cyber
charter school proposes to commence operation.
(e) Grant or denial.--Within 120 days of receipt of an
application, the department shall grant or deny the application.
The department shall review the application and shall hold at
least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
open meetings). At least 30 days prior to the hearing, the
department shall publish in the Pennsylvania Bulletin and on the
department's [World Wide Web site] publicly accessible Internet
website notice of the hearing and the purpose of the
application.
(f) Evaluation criteria.--
(1) A cyber charter school application submitted under
this subdivision shall be evaluated by the department based
on the following criteria:
(i) The demonstrated, sustainable support for the
cyber charter school plan by teachers, parents or
guardians and students.
(ii) The capability of the cyber charter school
applicant, in terms of support and planning, to provide
comprehensive learning experiences to students under the
charter.
(iii) The extent to which the programs outlined in
the application will enable students to meet the academic
standards under 22 Pa. Code Ch. 4 (relating to academic
standards and assessment) or subsequent regulations
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promulgated to replace 22 Pa. Code Ch. 4.
(iv) The extent to which the application meets the
requirements of section 1747-A.
(v) The extent to which the cyber charter school may
serve as a model for other public schools.
(2) Written notice of the action of the department shall
be sent by certified mail to the applicant and published on
the department's [World Wide Web site] publicly accessible
Internet website. If the application is denied, the reasons
for denial, including a description of deficiencies in the
application, shall be clearly stated in the notice.
(3) Upon approval of a cyber charter school application,
a written charter shall be developed which shall contain the
provisions of the charter application and be signed by the
secretary and each member of the board of trustees of the
cyber charter school. The charter, when duly signed, shall
act as legal authorization of the establishment of a cyber
charter school. The charter shall be legally binding on the
department, the cyber charter school and its board of
trustees. The charter [shall be for a period of no less than
three years nor more than five years and may be renewed for a
period of five years by the department.] term shall be as
follows:
(i) An initial charter granted pursuant to this
section shall be for a period of five years.
(ii) Prior to the effective date of the regulations
implementing the performance matrix as required pursuant
to section 1731.2-A, a charter may be renewed for five-
year periods upon reauthorization by the department.
(iii) Upon the effective date of the regulations
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implementing the performance matrix as required pursuant
to section 1731.2-A, the following shall apply:
(A) For cyber charter schools that have
satisfied the academic quality benchmark established
by the State board pursuant to section 1731.2-A, a
charter may be renewed for ten-year periods upon
reauthorization by the department.
(B) For cyber charter schools that have not
satisfied the academic quality benchmark established
by the State board pursuant to section 1731.2-A, a
charter may be renewed for five-year periods upon
reauthorization by the department.
(4) The decision of the department to deny an
application may be appealed to the appeal board.
(5) (i) A cyber charter school may request amendments
to its approved written charter by filing with the
department a written document describing the requested
amendment.
(ii) Within twenty (20) days of its receipt of the
request for an amendment, the department shall hold a
public hearing on the requested amendment under 65
Pa.C.S. Ch. 7 (relating to open meetings).
(iii) Within twenty (20) days after the hearing, the
department shall grant or deny the requested amendment.
Failure by the department to hold a public hearing and to
grant or deny the amendment within the time period
specified shall be deemed an approval.
(iv) An applicant for an amendment shall have the
right to appeal the denial of a requested amendment to
the appeal board provided for under section 1721-A.
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(g) Denied application.--A cyber charter school applicant
may revise and resubmit a denied application to the department.
The department shall grant or deny the revised application
within 60 days after its receipt.
(h) Appeal.--If the department fails to hold the required
public hearing or to approve or disapprove the charter, the
applicant may file its application as an appeal to the appeal
board. The appeal board shall review the application and make a
decision to approve or disapprove the charter based on the
criteria in subsection (f).
Section 1749-A. Applicability of other provisions of this act
and of other acts and regulations.
(a) General requirements.--Cyber charter schools shall be
subject to the following:
(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741,
752, 753, [755,] 771, 776, 777, 808, 809, 810, 1109, 1111,
1112(a), 1205.1, 1205.2, 1205.3, 1205.5, 1301, 1302, 1303,
1310, 1317, 1317.2, 1318, 1327, 1330, 1332, 1333, 1303-A,
1513, 1517, 1518, 1521, 1523, 1525, 1531, 1547, 1602-B, 1613-
B, 1702-A, 1703-A, 1704-A, 1714-A, 1715-A, 1716-A, 1716.1-A,
1719-A, 1721-A, 1722-A, [1723-A(a) and (b)] 1723- A(a), (b)
and (d), 1724-A, 1725-A, 1727-A, 1728-A(d), (e), (f), (g) and
(h), 1729-A, 1729.1-A, 1730-A, 1731-A(a)(1) and (b), 1731.1-
A, 1731.2-A, 1733-A and 2014-A and Articles [XII-A,] XIII-A
and XIV.
(1.1) Act of July 19, 1957 (P.L.1017, No.451), known as
the State Adverse Interest Act.
(2) The act of July 17, 1961 (P.L.776, No.341), known as
the Pennsylvania Fair Educational Opportunities Act.
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(3) The act of July 19, 1965 (P.L.215, No.116), entitled
"An act providing for the use of eye protective devices by
persons engaged in hazardous activities or exposed to known
dangers in schools, colleges and universities."
(4) Section 4 of the act of January 25, 1966 (1965
P.L.1546, No.541), entitled "An act providing scholarships
and providing funds to secure Federal funds for qualified
students of the Commonwealth of Pennsylvania who need
financial assistance to attend postsecondary institutions of
higher learning, making an appropriation, and providing for
the administration of this act."
(5) The act of July 12, 1972 (P.L.765, No.181) entitled
"An act relating to drugs and alcohol and their abuse,
providing for projects and programs and grants to educational
agencies, other public or private agencies, institutions or
organizations."
(6) The act of December 15, 1986 (P.L.1595, No.175),
known as the Antihazing Law.
(7) 65 Pa.C.S. Ch. 7 (relating to open meetings).
(8) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
financial disclosure).
* * *
(c) Existing charter schools.--
(1) The charter of a charter school approved under
section 1717-A or 1718-A which provides instruction through
the Internet or other electronic means shall remain in effect
for the duration of the charter and shall be subject to the
provisions of Subdivision (b).
(2) In addition to subsections (a) and (b), the
following provisions of this subdivision shall apply to a
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charter school approved under section 1717-A or 1718-A which
provides instruction through the Internet or other electronic
means:
(i) Section 1743-A(c), (d), (e), (f), (g), (h) and
(i).
(ii) Section 1744-A.
(iii) Section 1748-A.
Section 22. The addition of section 1725-A(a)(2)(ii)(B)(II)
shall expire at the end of the 2016-2017 school year.
Section 23. This act shall take effect as follows:
(1) The amendment or addition of the following
provisions of the act shall take effect immediately:
(i) Section 1704-A.
(ii) Section 1725-A(a)(1), (2), (2.1), (3) and (4),
(b), (c), (d), (e) and (f).
(iii) Sections 1731.1-A.
(iv) Section 1731.2-A.
(v) Section 1732-A.
(vi) Section 1749-A.
(2) The amendment of section 1725-A(a)(5) and (6) of the
act shall take effect in 90 days.
(3) This section shall take effect immediately.
(4) The remainder of this act shall take effect in 60
days.
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