S1115B2337A12901     AJM:EAZ  06/30/12     #90        A12901

AMENDMENTS TO SENATE BILL NO. 1115

Sponsor: REPRESENTATIVE KILLION

Printer's No. 2337

Amend Bill, page 1, line 7, by inserting after "Education;"

in duties and powers of boards of school directors, further

providing for elementary schools; 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; extensively revising charter school provisions; 

Amend Bill, page 2, line 17, by striking out "with the

consent of" and inserting

 in consultation with

Amend Bill, page 6, by inserting between lines 10 and 11

(l)  The General Assembly shall, through the annual

appropriations process, determine the level of State funding for

special education and the amount of any change in funding. The

special education formula developed under this section shall

determine only the distribution of any increase in special

education funding among the school districts of this

Commonwealth above the amount of special education funding in

the base year and shall not be used for any other purpose.

(m)  Notwithstanding any provision of law to the contrary,

for the 2012-2013 school year and each school year thereafter,

any State funding for special education in an amount that does

not exceed the amount of State funding for special education in

the base year shall be allocated in the same manner as the State

funding was allocated in the base year.

Amend Bill, page 6, line 11, by striking out "(l)" and

inserting

 (n)

Amend Bill, page 6, by inserting between lines 17 and 18

Section 1.1.  Section 501 of the act is amended to read:

Section 501.  Elementary Schools.--(a)  The board of school

directors in every school district shall establish, equip,

furnish, and maintain a sufficient number of elementary public

schools, in compliance with the provisions of this act, to

educate every person, residing in such district, between the

ages of six and twenty-one years, who may attend.

(b)  A local board of school directors may satisfy the

requirement set forth in subsection (a) by any of the following:

(1)  Operating a school building.

(2)  Contracting with any individual or entity authorized to

establish a charter school entity under section 1717-A(a).

(3)  Paying tuition for students residing in the school

district to attend school in another school district.

Section 1.2.  Section 1525 of the act, 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 an 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

of higher education while the [resident] students are enrolled

in the school district, charter school, regional charter school,

cyber charter school or an 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 an area vocational-technical school and at

institutions of higher education approved to operate in this

Commonwealth.

Section 1.3.  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 1.4.  Section 1613-B of the act is amended by adding

a subsection to read:

Section 1613-B.  Concurrent enrollment agreements.

* * *

(c)  Charter school entities.--A charter school, regional

charter school, cyber charter school or an area vocational-

technical school 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 1.5.  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,

"Account" shall mean the State Charter School Entities

Assessment Account.

"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

disadvantage.

"Board" shall mean the State Charter School Entities Board

established by this article.

"Charter school" shall mean an independent public school

established and operated under a charter from [the local board

of school directors] a grantor 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, as defined under section 501(c)(3) of the Internal

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

that provides funding, 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.]

"Committee" shall mean the Charter School Entities Funding

Advisory Committee.

"Cyber charter school" shall mean an independent public

school established and operated under a charter from the

[Department of Education] board and in which the school uses

technology in order to provide a significant portion of its

curriculum and to deliver a significant portion of instruction

to its students through the Internet or other electronic means.

A cyber charter school must be organized as a public, nonprofit

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

entity.

"Department" shall mean the Department of Education of the

Commonwealth.

"Educational management service provider" shall mean a for-

profit education management organization, nonprofit charter

management organization, school design provider, business

manager or any other partner entity with which a 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.

"Grantor" shall mean one of the following:

(1)  a local board of school directors; or

(2)  the board in accordance with section 1721-A(h)(2),

(2.1), (3), (3.1) and (4).

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

brother or sister.

"Local board of school directors" shall mean the board of

directors of a school district in which a proposed or an

approved charter school is located. The term shall include a

special board of control or a school reform commission.

"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 or the board 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.

"Right-to-Know Law" shall mean the act of February 14, 2008

(P.L.6, No.3), known as the "Right-to-Know Law."

"School district of residence" shall mean the school district

in this Commonwealth in which [the parents or guardians of a

child reside] a child resides as determined under section 1302.

"School entity" shall mean a school district, intermediate

unit, joint school or area vocational-technical school.

"School Reform Commission" shall mean the School Reform

Commission established under section 696.

"Secretary" shall mean the Secretary of Education of the

Commonwealth.

"Special board of control" shall mean a special board of

control established under section 692.

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

Commonwealth.

Section 1.6.  The act is amended by adding sections to read:

Section 1705-A.  State Charter School Entities Assessment

Account.--(a)  The State Charter School Entities Assessment

Account is established as a restricted account within the

General Fund. Money in the account is hereby appropriated on a

continuing basis to the board upon approval of the Governor to

carry out its duties as set forth under this article.

(b)  Board funding shall be as follows:

(1)  The board shall annually seek Federal and nonprofit

grants to support its operations and deposit the funding into

the account.

(2)  The following apply:

(i)  Until the board establishes a fee structure under

paragraph (3), the board shall be funded by an assessment fee,

based upon the State and local revenues as reported on a charter

school entity's most recent available annual financial report as

published on the department's publicly accessible Internet

website.

(ii)  Existing cyber charter schools shall pay an amount not

more than three-tenths of one per centum to the board.

(iii)  Existing charter schools and regional charter schools

shall pay not more than fifteen-hundredths of one per centum to

the board.

(iv)  Fees collected under this section shall be deposited in

the account.

(3)  The board shall develop a fee structure in accordance

with the act of June 25, 1982 (P.L.633, No.181), known as the

"Regulatory Review Act," for all charter school entities, which

may include a sliding fee schedule, fee reduction incentives for

performance, cost efficiencies and rebates.

Section 1706-A.  Charter School Entities Funding Advisory

Committee.--(a)  The following shall apply:

(1)  The Governor shall convene a Statewide advisory

committee, to be known as the Charter School Entities Funding

Advisory Committee, to examine the financing of charter school

entities in the public education system. The committee 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 Office of the Budget and the

department shall provide administrative support, meeting space

and any other assistance required by the committee to carry out

its duties under this section.

(2)  The committee shall consist of the following members:

(i)  One member of the Senate appointed by the President pro

tempore of the Senate.

(ii)  One member of the Senate appointed by the Majority

Leader of the Senate.

(iii)  One member of the Senate appointed by the Minority

Leader of the Senate.

(iv)  One member of the House of Representatives appointed by

the Speaker of the House of Representatives.

(v)  One member of the House of Representatives appointed by

the Majority Leader of the House of Representative.

(vi)  One member of the minority party of the House of

Representatives appointed by the Minority Leader of the House of

Representatives.

(vii)  The secretary or a designee.

(viii)  The chairman of the State board or a designee.

(ix)  The following members who shall be appointed by the

Governor:

(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 represent teachers, who may be a

public school teacher, a charter school teacher, a regional

charter school teacher, a cyber charter school teacher or a

nonpublic school teacher.

(E)  One member who shall represent school administrators.

(F)  One member who shall represent school board members.

(G)  One member who shall represent a business manager of a

school district.

(H)  One member who shall represent a parent of a child

attending a charter school entity.

(I)  One member who shall represent an institution of higher

education with experience in operating a charter school entity.

(3)  Members of the committee shall be appointed within

twenty (20) days of the effective date of this section. Any

vacancy on the committee shall be filled by the original

appointing officer or agency. The committee shall select a

chairman and vice chairman from among its membership at an

organizational meeting. The organizational meeting must take

place no later than thirty (30) days following the effective

date of this section.

(4)  The committee shall hold meetings at the call of the

chairman. The committee may hold public hearings on the matters

to be considered by the committee at locations throughout this

Commonwealth. All meetings and public hearings of the committee

shall be deemed public meetings for the purpose of 65 Pa.C.S.

Ch. 7 (relating to open meetings). Nine members of the committee

shall constitute a quorum at any meeting. Each member of the

committee may designate another person to represent that member

at meetings of the committee.

(5)  Committee members shall receive no compensation for

their services but shall be reimbursed for all necessary travel

and other reasonable expenses incurred in connection with the

performance of their duties as members. Whenever possible, the

committee 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 subsidies made to

the department, not to exceed $300,000, to carry out this

section.

(6)  The committee shall have the following powers and

duties:

(i)  Meet with current charter school entity operators within

this Commonwealth, including cyber charter schools with blended

programs.

(ii)  Review charter school entity financing laws in

operation throughout the United States.

(iii)  Evaluate and make recommendations on the following:

(A)  Powers and duties extended to charter school entities as

they relate to financing.

(B)  Funding formulas for charter school entities, including

reimbursement procedures and funding under Title I of the

Elementary and Secondary Education Act of 1965 (Public Law

89-10, 20 U.S.C. Ch. 63 et seq.).

(C)  The process by which charter schools entities are funded

under section 1725-A.

(D)  Student residency as it relates to funding.

(E)  Special education and other special program funding.

(F)  Charter school entity transportation.

(G)  Charter school entity eligibility to receive grants and

funding.

(H)  Appropriate assessment fees on charter school entities.

(I)  Consideration of recognizing charter school entities for

additional designations as a local education agency.

(iv)  The committee shall, no later than November 30, 2012,

issue a report of its findings and recommendations to the

Governor, the President pro tempore of the Senate, the Minority

Leader of the Senate, the chairman and minority chairman of the

Education Committee of the Senate, the Speaker of the House of

Representatives, the Minority Leader of the House of

Representatives and the chairman and minority chairman of the

Education Committee of the House of Representatives.

(b)  (Reserved).

Section 1.7.  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 Requirements.--(a)  Charter

schools shall be required to comply with the following

provisions:

(1)  Except as otherwise provided in this article, a charter

school 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.

Charter schools are not exempt from statutes applicable to

public schools other than this act.

(2)  A charter school shall be accountable to the 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 shall not unlawfully discriminate in

admissions, hiring or operation.

(4)  A charter school shall be nonsectarian in all

operations.

(5)  (i)  A charter school shall not provide any religious

instruction, nor shall it display religious objects and symbols

on the premises of the charter school. The charter school entity

shall provide for discrete and separate entrances to buildings

utilized for school purposes only.

(ii)  It shall not be a violation of this section for a

charter school entity to utilize a sectarian facility:

(A)  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

(B)  in which the unused portion of the facility or its

common areas contain religious symbols and objects.

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

(7)  A 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.

(8)  (i)  A charter school 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

is located is scheduled to participate.

(ii)  A charter school entity shall be treated in the same

manner as a school district for the purposes of measuring the

charter entity's adequate yearly progress under the No Child

Left Behind Act of 2001 or any successor statute.

(9)  A charter school 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

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

"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 the grantor 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

interests for the preceding calendar year with the board of

trustees not later than May 1 of each year that the individual

holds the position and of the year after the individual 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

charter school entity board of trustees 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 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

shall be kept on file with the charter school entity and the

grantor.

(3)  No administrator of a charter school entity or immediate

family member may serve as a voting member of the board of

trustees of that individual's charter school entity.

(4)  (i)  No administrator of a charter school entity may

participate in the selection, award or administration of a

contract if the individual has a conflict of interest as that

term is defined in 65 Pa.C.S. § 1102 (relating to definitions).

(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.

(d)  The board of trustees of a charter school entity shall

supply the grantor of the charter school entity and the

secretary 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. 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.

(e)  Fund balance limit shall be as follows:

(1)  For the 2013-2014 school year and each school year

thereafter, a charter school entity shall not accumulate an

unassigned fund balance greater than the charter school entity

fund balance limit, which will be determined as follows:

(2)  Any unassigned fund balance in place on June 30, 2013,

that exceeds the charter school entity fund balance limit shall

be refunded on a pro rata basis within 90 days to all school

districts that paid tuition to the charter school entity on

behalf of students enrolled in the 2011-2012 and 2012-2013

school years. The funds may not be used to pay bonuses to any

administrator, board of trustee member, employe, staff or

contractor and may not be transferred to a charter school

foundation.

(3)  For the 2013-2014 school year and each school year

thereafter, any unassigned fund balance in excess of the charter

school entity fund balance limit 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.

(4)  By August 15, 2013, and August 15 of each year

thereafter, each charter school entity shall provide its grantor

and the board with information certifying compliance with this

section. The information shall be provided in a form and manner

prescribed by the board 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.

Section 1.8.  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 entity 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 entity if the individual or an

immediate family member receives compensation from or is

employed by or is a member of the grantor who participated in

the initial review, approval, oversight, evaluation or renewal

process of the charter school entity.

(2)  An employe of the grantor that chartered the charter

school entity may serve as a member of the board of trustees

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

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 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 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.

(b.3)  A member of the board of trustees of a charter school

entity shall be automatically disqualified and immediately

removed from the board 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 board member or any crime

involving moral turpitude.

(c)  The board of trustees and all meetings of 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

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 on the effective

date of this subsection, the charter school entity shall, within

sixty (60) days, appoint additional members to its board to meet

the minimum requirements of this section.

(2)  Within one (1) year of the effective date of this

subsection, at least one (1) 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 member 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 action on the subjects enumerated

under subsection (a).

(f)  (1)  In any case where the board of trustees of a

charter school fails to pay or to provide for 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

charter school trustees of its obligation and shall immediately

notify the grantor of the charter school and the secretary.

(2)  The secretary shall withhold any appropriation due the

charter school in any amount necessary to fully fund the amount

held in escrow by the charter school which shall be equal to the

sum of the principal amount maturing or subject to mandatory

redemption and interest owing by the charter school or sinking

fund deposit due by such charter school 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.

(3)  Payments made pursuant to this article 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 board is required to make payment to a holder of

debt issued by or on behalf of a school entity.

Section 1.9.  Sections 1717-A, 1718-A 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.--(a)  A

charter school may be established by an individual; one or more

teachers who will teach at the proposed charter school; parents

or guardians of students who will attend the charter school; any

nonsectarian college, university or museum located in this

Commonwealth; any nonsectarian corporation not-for-profit, as

defined in 15 Pa.C.S. (relating to corporations and

unincorporated associations); any corporation, association or

partnership; or any combination thereof. [A charter school may

be established by creating a new school or by converting an

existing public school or a portion of an existing public

school.] A charter school must be organized as a public,

nonprofit corporation. A charter may not be granted to a for-

profit entity. No charter school shall be established or funded

by and no charter shall be granted to any sectarian school,

institution or other entity. No funds allocated or disbursed

under this article shall be used to directly support instruction

pursuant to section 1327.1.

(b)  (1)  The conversion of an existing public school or

portion of an existing public school to a charter school may be

initiated by any individual or entity authorized to establish a

charter school under subsection (a).

(2)  In order to convert an existing public school to a

charter school, the applicants must show that:

(i)  More than fifty per centum of the teaching staff in the

public school have signed a petition in support of the public

school becoming a charter school; and

(ii)  More than fifty per centum of the parents or guardians

of pupils attending that public school have signed a petition in

support of the school becoming a charter school.

(3)  In no event shall the board of school directors serve as

the board of trustees of an existing school which is converted

to a charter school pursuant to this subsection.

(4)  (Reserved).

(5)  (Reserved).

(6)  This article shall apply to an existing public school

building or a portion of an existing public school building

converted to a charter school.

(7)  In the case of an existing school being converted to a

charter school, the local board of school directors, the special

board of control or the School Reform Commission shall establish

the alternative arrangements for current students who choose not

to attend the charter school.

(8)  In the case of an existing school being converted to a

charter school, preference for enrollment shall be given to

students residing within the former attendance boundary of that

school.

(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] grantor 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.

(c.1)  Grantors shall be as follows:

(1)  The following entities shall be grantors of charter

schools and regional charter schools:

(i)  The board in accordance with section 1721-A(h)(2.1),

(3), (3.1) and (4).

(ii)  A local board of school directors.

(2)  The board shall be the grantor of cyber charter schools

and regional charter schools.

(c.2)  Grantor powers and duties shall be as follows:

(1)  The board shall have the following powers and duties:

(i)  Receive, review and act on applications for the creation

of a charter school entity in accordance with section

1721-A(h)(2), (2.1), (3), (3.1) and (4), obtain input from

interested persons or entities and hold hearings regarding

applications.

(ii)  Execute a charter with an approved charter school

entity applicant.

(iii)  Monitor and evaluate the operation of each charter

school entity granted by the board on an annual basis in order

to determine whether the charter school entity is in compliance

with the terms of its charter and all applicable laws and

regulations, and identify and implement corrective action to

remedy issues of noncompliance.

(iv)  Renew, revoke or deny renewal of a charter school

entity's charter under section 1729-A.

(2)  The local board of school directors shall have the

following powers and duties:

(i)  Receive, review and act on applications for the creation

of a charter school or regional charter school, obtain input

from interested persons or entities and hold hearings regarding

applications.

(ii)  Execute a charter with an approved charter school or

regional charter school applicant.

(iii)  Monitor and evaluate the operation of each charter

school or regional charter school granted by the local board of

school directors on an annual basis in order to determine

whether the charter school or regional charter school is in

compliance with the terms of its charter and all applicable laws

and regulations, and identify and implement corrective action to

remedy issues of noncompliance.

(iv)  Renew, revoke or deny renewal of a charter school or

regional charter school's charter under section 1729-A.

(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] grantor 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]

grantor 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] grantor shall grant or deny the application.

For a charter school beginning in the 1997-1998 school year, the

local board of school directors shall grant or deny the

application no later than sixty (60) days after the first public

hearing.

(2)  A charter school application submitted under this

article shall be evaluated by the [local board of school

directors] grantor 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] grantor 

upon affirmative vote by a majority of all the [directors]

members. Formal action approving or denying the application

shall be taken by the [local board of school directors] grantor 

at a public meeting, with notice or consideration of the

application given by the [board] grantor, under [the "Sunshine

Act."] 65 Pa.C.S. Ch. 7.

(5)  Written notice of the [board's] grantor'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] grantor to the charter school applicant.

(f)  (1)  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.] grantor that initially denied

the application.

(2)  At the option of the charter school applicant, a denied

application by a local board of school directors may be appealed

directly to the board.

(3)  When an application is revised and resubmitted to the

local board of school directors, or the board under this

section, either may schedule additional public hearings on the

revised application. The board or local board of school

directors 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." No appeal from a decision

of a local school board may be taken until July 1, 1999.] 65

Pa.C.S. Ch. 7.

(g)  Notwithstanding the provisions of subsection (e)(5),

failure by the local board of directors to hold a public hearing

and to grant or deny the application for a charter school within

the time periods specified in subsections (d), (e) and (f) shall

permit the applicant for a charter to file its application as an

appeal to the [appeal] board. In such case, the [appeal] board

shall review the application and make a decision to grant or

deny a charter based on the criteria established in subsection

(e)(2). The board shall review the application de novo. The

board shall not be bound by, but may consider, the factual or

legal conclusions of the local board of school directors.

(h)  In the case of a review by the [appeal] board of an

application that is revoked or is not renewed, the [appeal]

board shall make its decision based on the criteria established

in subsection (e)(2). [A decision by the appeal board under this

subsection or subsection (g) to grant, to renew or not to revoke

a charter shall serve as a requirement for the local board of

directors of a school district or school districts, as

appropriate, to sign the written charter of the charter school

as provided for in section 1720-A. Should the local board of

directors fail to grant the application and sign the charter

within ten (10) days of notice of reversal of the decision of

the local board of directors, the charter shall be deemed to be

approved and shall be signed by the chairman of the appeal

board.]

(i)  (1)  The [appeal] board shall have the exclusive review

of an appeal by a charter school applicant, or by the board of

trustees of an existing charter school, of a decision made by a

local board of directors not to grant a charter as provided in

this section.

(2)  In order for a charter school applicant to be eligible

to appeal the denial of a charter by the local board of

directors, the applicant must obtain the signatures of at least

two per centum of the residents of the school district or of one

thousand (1,000) residents, whichever is less, who are over

eighteen (18) years of age. For a regional charter school, the

applicant must obtain the signatures of at least two per centum

of the residents of each school district granting the charter or

of one thousand (1,000) residents from each of the school

districts granting the charter, whichever is less, who are over

eighteen (18) years of age. The signatures shall be obtained

within sixty (60) days of the denial of the application by the

local board of directors in accordance with clause (3).

(3)  Each person signing a petition to appeal denial of a

charter under clause (2) shall declare that he or she is a

resident of the school district which denied the charter

application and shall include his or her printed name;

signature; address, including city, borough or township, with

street and number, if any; and the date of signing. All pages

shall be bound together. Additional pages of the petition shall

be numbered consecutively. There shall be appended to the

petition a statement that the local board of directors rejected

the petition for a charter school, the names of all applicants

for the charter, the date of denial by the board and the

proposed location of the charter school. No resident may sign

more than one petition relating to the charter school

application within the sixty (60) days following denial of the

application. The department shall develop a form to be used to

petition for an appeal.

(4)  Each petition shall have appended thereto the affidavit

of some person, not necessarily a signer, setting forth all of

the following:

(i)  That the affiant is a resident of the school district

referred to in the petition.

(ii)  The affiant's residence, giving city, borough or

township, with street and number, if any.

(iii)  That the signers signed with full knowledge of the

purpose of the petition.

(iv)  That the signers' respective residences are correctly

stated in the petition.

(v)  That the signers all reside in the school district.

(vi)  That each signer signed on the date set forth opposite

the signer's name.

(vii)  That to the best of the affiant's knowledge and

belief, the signers are residents of the school district.

(5)  If the required number of signatures are obtained within

sixty (60) days of the denial of the application, the applicant

may present the petition to the court of common pleas of the

county in which the charter school would be situated. The court

shall hold a hearing only on the sufficiency of the petition.

The applicant and local board of school directors shall be given

seven (7) days' notice of the hearing. The court shall issue a

decree establishing the sufficiency or insufficiency of the

petition. If the petition is sufficient, the decree shall be

transmitted to the State Charter School Appeal Board for review

in accordance with this section. Notification of the decree

shall be given to the applicant and the local board of

directors.

[(6)  In any appeal, the decision made by the local board of

directors shall be reviewed by the appeal board on the record as

certified by the local board of directors. The appeal board

shall give due consideration to the findings of the local board

of directors and specifically articulate its reasons for

agreeing or disagreeing with those findings in its written

decision. The appeal board shall have the discretion to allow

the local board of directors and the charter school applicant to

supplement the record if the supplemental information was

previously unavailable.]

(7)  Not later than thirty (30) days after the date of notice

of the acceptance of the appeal, the [appeal] board shall meet

to officially review the certified record.

(8)  Not later than sixty (60) days following the review

conducted pursuant to clause (6), the [appeal] board shall issue

a written decision affirming or denying the appeal. If the

[appeal] board has affirmed the decision of the local board of

directors, notice shall be provided to both parties.

(9)  [A] If the decision of the [appeal] board is to reverse

the decision of the local board of directors [shall serve as a

requirement for the local board of directors of a school

district or school districts, as appropriate, to grant the

application and sign the written charter of the charter school

as provided for in section 1720-A. Should the local board of

directors fail to grant the application and sign the charter

within ten (10) days of notice of the reversal of the decision

of the local board of directors, the charter shall be deemed to

be approved and shall be signed by the chairman of the appeal

board.], the board shall grant the application and sign the

written charter of the charter school as the grantor as provided

for in section 1720-A.

(10)  If the board is reviewing an appeal of a revocation or

nonrenewal decision, the board shall review the record and shall

have the discretion to supplement the record if the supplemental

information was previously unavailable. The board may consider

the charter school entity's plan, annual reports, student

performance and employe and community support for the charter

school entity in addition to the record. The board shall review

the appeal de novo. The board shall not be bound by, but may

consider, the factual or legal conclusions of the local board of

school directors.

(11)  If the board determines that the charter should not be

revoked or should be renewed, the board shall issue an order

reversing the decision of the local board of school directors

and shall initiate charter transfer proceedings under section

1733-A(c)(5).

(12)  Except as provided in clause (13), the charter shall

remain in effect until final disposition by the board.

(13)  In cases where the health or safety of the school's

students, staff or both is at serious risk, the grantor may take

immediate action to revoke a charter.

(14)  When a charter is revoked, not renewed, forfeited,

surrendered or otherwise ceases to operate, the charter school

entity shall be dissolved. After the disposition of any

liabilities and obligations of the charter school entity, any

remaining assets of the charter school entity, both real and

personal, shall be distributed on a proportional basis to the

school entities with students enrolled in the charter school

entity for the last full or partial school year of the charter

school entity. In no event shall such school entities or the

Commonwealth be liable for any outstanding liabilities or

obligations of the charter school entity.

(15)  When a charter is revoked or is not renewed, a student

who attended the charter school entity shall apply to another

public school in the student's school district of residence.

Normal application deadlines will be disregarded under these

circumstances. All student records maintained by the charter

school entity shall be forwarded to the student's district of

residence.

[(10)] (16)  All decisions of the [appeal] board shall be

subject to appellate review by the Commonwealth Court.

Section 1718-A.  Regional Charter School.--(a)  [A regional

charter school may be established by an individual, one or more

teachers who will teach at the proposed charter school; parents

or guardians of students who will attend the charter school; any

nonsectarian college, university or museum located in this

Commonwealth; any nonsectarian corporation not-for-profit, as

defined in 15 Pa.C.S. (relating to corporations and

unincorporated associations); any corporation, association or

partnership; or any combination thereof. A regional charter

school may be established by creating a new school or by

converting an existing public school or a portion of an existing

public school. Conversion of an existing public school to a

regional charter school shall be accomplished in accordance with

section 1714-A(b). No regional charter school shall be

established or funded by and no charter shall be granted to any

sectarian school, institution or other entity.

(b)  The boards of school directors of one or more school

districts may act jointly to receive and consider an application

for a regional charter school, except that any action to approve

an application for a charter or to sign a written charter of an

applicant shall require an affirmative vote of a majority of all

the directors of each of the school districts involved. The

applicant shall apply for a charter to the board of directors of

any school district in which the charter school will be located.

(c)  The provisions of this article as they pertain to

charter schools and the powers and duties of the local board of

school directors of a school district and the appeal board shall

apply to regional charter schools, except as provided in

subsections (a) and (b) or as otherwise clearly stated in this

article.] The following apply:

(1)  A regional charter school may be established by any

individual or entity allowed under section 1717-A(a).

(2)  A regional charter school may be established by creating

a new school under subsection (b) or by converting an existing

public school building or a portion of an existing public school

building. Conversion of an existing public school building or a

portion of an existing public school building to a regional

charter school shall be accomplished in accordance with section

1717-A(b).

(3)  No regional charter school may be established or funded

by, and no charter shall be granted to, any sectarian school,

institution or other entity.

(4)  A regional charter school must be organized as a public,

nonprofit corporation. A charter may not be granted to any for-

profit entity.

(b)  The following apply to applications:

(1)  The local boards of school directors of one or more

school districts may act jointly to receive and consider an

application for a regional charter school, except that any

action to approve an application for a charter or to sign a

written charter of an applicant shall require an affirmative

vote of a majority of all the directors of each of the school

districts involved. The applicant shall apply for a charter to

the local board of school directors of any school district in

which the regional charter school will be located.

(2)  If students from five or more school districts will be

enrolled in a regional charter school, the board may receive and

consider an application for a regional charter school. Any

action to approve an application for a charter or to sign a

written charter of an applicant under this section shall require

an affirmative vote of a majority of all board members.

(c)  The provisions of this article relating to charter

schools and the powers and duties of grantors shall apply to

regional charter schools, except as provided under this article.

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

board shall create a standard application for charter school

applicants to establish a charter school. The form shall include

all of the following information:

(1)  The identification of the charter school entity

applicant.

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

(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.

(4.1)  A clear description of the roles and responsibilities

for the board of trustees, administrators and any other

entities, including a charter school foundation, shown in the

organization chart.

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

election of members of the board of trustees.

(4.3)  Standards for board performance, including compliance

with all applicable laws, regulations and terms of the charter.

(4.4)  If the charter school intends to contract with an

educational management service provider for services, all of the

following:

(i)  Evidence of the education 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 education management service provider.

(B)  The proposed duration of the service contract.

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

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

be involved in the charter school planning process.

(9)  The financial plan for the charter school and the

provisions which will be made for auditing the school under

[section] 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.

(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.

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

developed with the local school district regarding participation

of the charter school students in extracurricular activities

within the school district. Notwithstanding any provision to the

contrary, no school district of residence shall prohibit a

student of a charter school from participating in any

extracurricular activity of that school district of residence:

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

requirements of participation in such activity and the charter

school does not provide the same extracurricular activity.

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

section 111, for all individuals identified in the application 

who shall have direct contact with students and a plan for