1Amend Bill, page 1, lines 1 through 10, by striking out all
2of said lines and inserting

3Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
4act relating to the public school system, including certain
5provisions applicable as well to private and parochial
6schools; amending, revising, consolidating and changing the
7laws relating thereto," in terms and courses of study,
8further providing for agreements with institutions of higher
9education; in opportunities for educational excellence,
10further providing for definitions and for concurrent
11enrollment agreements; and extensively revising charter
12school provisions.

13Amend Bill, page 1, lines 16 through 21; pages 2 through 88,
14lines 1 through 30; page 89, lines 1 through 26, by striking out
15all of said lines on said pages and inserting

16Section 1. Section 1525 of the act of March 10, 1949
17(P.L.30, No.14), known as the Public School Code of 1949, added
18July 4, 2004 (P.L.536, No.70), is amended to read:

19Section 1525. Agreements with Institutions of Higher
20Education.--Notwithstanding any other provision of law to the
21contrary, a school district, charter school, regional charter 
22school, cyber charter school or area vocational-technical school
23may enter into an agreement with one or more institutions of
24higher education approved to operate in this Commonwealth in
25order to allow [resident] students to attend such institutions
26of higher education while the [resident] students are enrolled
27in the school district, charter school, regional charter school, 
28cyber charter school or area vocational-technical school. The
29agreement may be structured so that high school students may
30receive credits toward completion of courses at the school
31district, charter school, regional charter school, cyber charter 
32school or area vocational-technical school and at institutions
33of higher education approved to operate in this Commonwealth.

34Section 2. The definitions of "concurrent student" and
35"school entity" in section 1602-B of the act, added July 13,

12005 (P.L.226, No.46), are amended to read:

2Section 1602-B. Definitions.

3The following words and phrases when used in this article
4shall have the meanings given to them in this section unless the
5context clearly indicates otherwise:

6* * *

7"Concurrent student." A student who is enrolled in a school
8district, a charter school, a regional charter school, a cyber 
9charter school, an area vocational-technical school, a nonpublic
10school, a private school or a home education program under
11section 1327.1 and who takes a concurrent course through a
12concurrent enrollment program.

13* * *

14"School entity." A school district, a charter school, a 
15regional charter school, a cyber charter school or an area
16vocational-technical school.

17* * *

18Section 3. Section 1613-B of the act is amended by adding a
19subsection to read:

20Section 1613-B. Concurrent enrollment agreements.

21* * *

22(c) Charter schools, regional charter schools and cyber
23charter schools.--Charter schools, regional charter schools and
24cyber charter schools shall have the power and authority to
25enter into a concurrent enrollment agreement with an institution
26of higher education and appropriate credit shall be awarded to
27students concurrently enrolled under the agreement.

28Section 4. Section 1703-A of the act, amended June 29, 2002
29(P.L.524, No.88), is amended to read:

30Section 1703-A. Definitions.--As used in this article,

31"Administrator" shall include an employe of a charter school
32entity, including the chief administrator of a charter school
33entity and any other employe, who by virtue of the employe's
34position is responsible for taking official action of a
35nonministerial nature with regard to contracting or procurement,
36administering or monitoring grants or subsidies, managing or
37regulating staff, student and school activities or any activity
38where the official action has an economic impact of greater than
39a de minimis nature on the interests of any person.

40"Appeal board" shall mean the State Charter School Appeal
41Board established by this article.

42"Assessment" shall mean the Pennsylvania System of School
43Assessment test, the Keystone Exam or another test established
44by the State board to meet the requirements of section 2603-
45B(d)(10)(i) and required under the No Child Left Behind Act of
462001 (Public Law 107-110, 115 Stat. 1425) or its successor
47Federal statute.

48"Associated nonprofit foundation" shall mean an entity
49organized as a Pennsylvania nonprofit corporation pursuant to 15
50Pa.C.S. § 5306 (relating to articles of incorporation),
51operating exclusively for the support and benefit of a

1Pennsylvania charter school entity organized under this
2article. The term shall include an associated nonprofit
3corporation.

4"At-risk student" shall mean a student at risk of educational
5failure because of limited English proficiency, poverty,
6community factors, truancy, academic difficulties or economic
7disadvantage.

8"Charter school" shall mean an independent public school
9established and operated under a charter from the local board of
10school directors and in which students are enrolled or attend. A
11charter school must be organized as a public, nonprofit
12corporation. Charters may not be granted to any for-profit
13entity.

14"Charter school entity" shall mean a charter school, regional
15charter school or cyber charter school.

16"Charter school foundation" shall mean a nonprofit
17organization, as defined under section 501(c)(3) of the Internal
18Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
19that provides funding, resources or otherwise serves to support
20a charter school entity, either directly or through an
21affiliated entity.

22"Chief administrator" shall mean an individual appointed by a
23board of trustees to oversee and manage the operation of a
24charter school entity. The term shall not include a professional
25staff member under this article.

26["Chief executive officer" shall mean an individual appointed
27by the board of trustees to oversee and manage the operation of
28the charter school, but who shall not be deemed a professional
29staff member under this article.]

30"Cyber charter school" shall mean an independent public
31school established and operated under a charter from the
32Department of Education and in which the school uses technology, 
33including electronic or digital books, in order to provide a
34significant portion of its curriculum and to deliver a
35significant portion of instruction to its students through the
36Internet or other electronic means. A cyber charter school must
37be organized as a public, nonprofit corporation. A charter may
38not be granted to a for-profit entity.

39"Department" shall mean the Department of Education of the
40Commonwealth.

41"Educational management service provider" shall mean a for-
42profit education management organization, nonprofit charter
43management organization, school design provider, business
44manager or any other partner entity with which a board of
45trustees of a charter school entity contracts to provide
46educational design, business services, comprehensive management
47or personnel functions or to implement the charter. The term
48shall not include a charter school foundation.

49"Immediate family member" shall mean a parent, spouse, child,
50brother or sister.

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

1directors [of], a school reform commission or other governing 
2authority of a school district or a financial recovery school 
3district in which a proposed or an approved charter school is
4located.

5"Nonrelated" shall mean an individual who is not an immediate
6family member.

7"Regional charter school" shall mean an independent public
8school established and operated under a charter from more than
9one local board of school directors and in which students are
10enrolled or attend. A regional charter school must be organized
11as a public, nonprofit corporation. Charters may not be granted
12to any for-profit entity.

13"School district of residence" shall mean the school district
14in this Commonwealth in which [the parents or guardians of a
15child reside] a child resides as determined under section 1302 
16and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of 
17resident children to attend public schools).

18"School entity" shall mean a school district, intermediate
19unit, joint school or area vocational-technical school.

20"Secretary" shall mean the Secretary of Education of the
21Commonwealth.

22"State board" shall mean the State Board of Education of the
23Commonwealth.

24Section 5. Section 1715-A of the act, amended or added June
2519, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is
26amended to read:

27Section 1715-A. Charter School Entity Requirements.--(a)
28Charter [schools] school entities shall be required to comply
29with the following provisions:

30(1) Except as otherwise provided in this article, a charter
31school entity is exempt from statutory requirements established
32in this act, from regulations of the State board and the
33standards of the secretary not specifically applicable to
34charter [schools] school entities. Charter [schools] school 
35entities are not exempt from statutes applicable to public
36schools other than this act.

37(2) A charter school entity shall be accountable to the
38parents, the public and the Commonwealth, with the delineation
39of that accountability reflected in the charter. Strategies for
40meaningful parent and community involvement shall be developed
41and implemented by each school.

42(3) A charter school entity shall not unlawfully
43discriminate in admissions, hiring or operation.

44(4) A charter school entity shall be nonsectarian in all
45operations.

46(5) (i) [A] Subject to subparagraph (ii), a charter school
47entity shall not provide any religious instruction, nor shall it
48display religious objects and symbols on the premises of the
49charter school[.] entity.

50(ii) It shall not be a violation of this paragraph for a
51charter school entity to utilize a sectarian facility:

1(A) if the charter school entity provides for discrete and
2separate entrances to buildings utilized for school purposes
3only;

4(B) if the religious objects and symbols within the portions
5of the facility utilized by the school are covered or removed to
6the extent reasonably feasible; or

7(C) in which the unused portion of the facility or its
8common areas contain religious symbols and objects.

9(6) A charter school entity shall not advocate unlawful
10behavior.

11(7) A charter school or regional charter school shall only
12be subject to the laws and regulations as provided for in
13section 1732-A, or as otherwise provided for in this [article]
14act.

15(7.1) A cyber charter school shall only be subject to the
16laws and regulations as provided for in section 1749-A or as
17otherwise provided for in this act.

18(8) A charter school entity shall participate in [the
19Pennsylvania State Assessment System as provided for in 22 Pa.
20Code Ch. 5 (relating to curriculum), or subsequent regulations
21promulgated to replace 22 Pa. Code Ch. 5,] assessments in the
22manner in which the school district in which the charter school
23entity is located is scheduled to participate.

24(9) A charter school entity shall provide a minimum of one
25hundred eighty (180) days of instruction or nine hundred (900)
26hours per year of instruction at the elementary level, or nine
27hundred ninety (990) hours per year of instruction at the
28secondary level. Nothing in this clause shall preclude the use
29of computer and satellite linkages for delivering instruction to
30students.

31(10) Boards of trustees and contractors of charter [schools] 
32school entities shall be subject to the following statutory
33requirements governing construction projects and construction-
34related work:

35(i) The following provisions of this act:

36(A) Sections 751 and 751.1.

37(B) Sections 756 and 757 insofar as they are consistent with
38the act of December 20, 1967 (P.L.869, No.385), known as the
39"Public Works Contractors' Bond Law of 1967."

40(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
41entitled "An act regulating the letting of certain contracts for
42the erection, construction, and alteration of public buildings."

43(iii) The act of August 11, 1961 (P.L.987, No.442), known as
44the "Pennsylvania Prevailing Wage Act."

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

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

48(11) Trustees of a charter school entity shall be public
49officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to 
50ethics standards and financial disclosure) and shall file a 
51statement of financial interests for the preceding calendar year
 

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

9[(12) A person who serves as an administrator for a charter
10school shall not receive compensation from another charter
11school or from a company that provides management or other
12services to another charter school. The term "administrator"
13shall include the chief executive officer of a charter school
14and all other employes of a charter school who by virtue of
15their positions exercise management or operational oversight
16responsibilities. A person who serves as an administrator for a
17charter school shall be a public official under 65 Pa.C.S. Ch.
1811 (relating to ethics standards and financial disclosure). A
19violation of this clause shall constitute a violation of 65
20Pa.C.S. § 1103(a) (relating to restricted activities), and the
21violator shall be subject to the penalties imposed under the
22jurisdiction of the State Ethics Commission.]

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

30(c) (1) No individual who serves as an administrator for a
31charter school entity may receive compensation from another
32charter school entity or from an educational management service
33provider, unless:

34(i) The administrator has submitted a sworn statement to the
35board of trustees of the charter school entity and the sworn
36statement details the work for the other entity and includes the
37projected number of hours, rate of compensation and projected
38duration.

39(ii) The board of trustees of the charter school entity has
40reviewed the sworn statement under subclause (i) and agreed, by
41resolution, to grant permission to the administrator.

42(2) A copy of the sworn statement under clause (1)(i) and
43the resolution by the board of trustees of the charter school
44entity granting the permission under clause (1)(ii) shall be
45provided to and kept on file with the charter school entity and
46the board of local school directors or, in the case of a cyber
47charter school, the department.

48(3) No administrator of a charter school entity or immediate
49family member may serve as a voting member of the board of
50trustees of the charter school entity that employs the
51administrator.

1(4) (i) No administrator of a charter school entity may
2participate in the selection, award or administration of a
3contract if the person has a conflict of interest as that term
4is defined in 65 Pa.C.S. § 1102 (relating to definitions).

5(ii) An administrator who knowingly violates this clause
6commits a violation of 65 Pa.C.S. § 1103(a) (relating to
7restricted activities) and shall be subject to the penalties
8imposed under the jurisdiction of the State Ethics Commission.

9(iii) Any contract made in violation of this clause shall be
10voidable by the board of trustees of the charter school entity.

11(5) An administrator shall be immediately dismissed upon
12conviction for an offense graded as a felony, an infamous crime,
13an offense pertaining to fraud, theft or mismanagement of public
14funds or any crime involving moral turpitude.

15Section 6. Section 1716-A(c) of the act, added June 19, 1997
16(P.L.225, No.22), is amended and the section is amended by
17adding subsections to read:

18Section 1716-A. Powers of Board of Trustees.--* * *

19(b.1) (1) For a charter school or regional charter school
20chartered after the effective date of this subsection, an
21individual shall be prohibited from serving as a voting member
22of the board of trustees of the charter school or regional
23charter school if the individual or an immediate family member
24receives compensation from or is employed by or is a member of
25the local board of school directors who participated in the
26initial review, approval, oversight, evaluation or renewal
27process of the charter school or regional charter school
28chartered by that board.

29(2) An employe of the school district that chartered the
30charter school or the regional charter school may serve as a
31member of the board of trustees of the charter school or
32regional charter school without voting privileges.

33(b.2) (1) No member of the board of trustees of a charter
34school entity may participate in the selection, award or
35administration of any contract if the member has a conflict of
36interest as that term is defined in 65 Pa.C.S. § 1102 (relating
37to definitions).

38(2) Any member of the board of trustees of a charter school
39entity who in the discharge of the person's official duties
40would be required to vote on a matter that would result in a
41conflict of interest shall abstain from voting and follow the
42procedures required under 65 Pa.C.S. § 1103(j) (relating to
43restricted activities).

44(3) A member of the board of trustees of a charter school
45entity who knowingly violates this subsection commits a
46violation of 65 Pa.C.S. § 1103(a) and shall be subject to the
47penalties imposed under the jurisdiction of the State Ethics
48Commission.

49(4) A contract made in violation of this subsection shall be
50voidable by a court of competent jurisdiction, if the suit is
51commenced within ninety (90) days of the making of the contract.

1(5) No member of the board of trustees of a charter school
2entity shall be compensated for duties on the board of trustees.

3(b.3) A member of the board of trustees of a charter school
4entity shall be automatically disqualified and immediately
5removed from the board upon conviction for an offense graded as
6a felony, an infamous crime, an offense pertaining to fraud,
7theft or mismanagement of public funds, any offense pertaining
8to his official capacity as a board member or any crime
9involving moral turpitude.

10(c) The board of trustees shall comply with [the act of July
113, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
12Pa.C.S. Ch. 7 (relating to open meetings).

13(d) (1) (i) The board of trustees of a charter school
14entity shall consist of a minimum of five (5) nonrelated voting
15members.

16(ii) If a charter school entity has fewer than five (5)
17nonrelated voting members serving on its board on the effective
18date of this subsection, the charter school entity shall, within
19sixty (60) days, appoint additional members to the board to meet
20the minimum requirements of this section.

21(2) Within one (1) year of the effective date of this
22subsection, at least one (1) member of the board of trustees of
23a charter school entity shall be a parent of a child currently
24attending the charter school entity. The board member shall be
25eligible to serve only so long as the child attends the charter
26school entity.

27(e) (1) A majority of the voting members of the board of
28trustees shall constitute a quorum. If less than a majority is
29present at any meeting, no business may be transacted at the
30meeting.

31(2) The affirmative vote of a majority of all the voting
32members of the board of trustees, duly recorded, shall be
33required in order to take action on the subjects enumerated
34under subsection (a).

35Section 7. The act is amended by adding sections to read:

36Section 1716.1-A. (Reserved).

37Section 1716.2-A.  Fund Balance Limits.--Fund balance limits 
38shall be as follows:

39(1)  For the 2013-2014 school year and each school year 
40thereafter, a charter school entity shall not accumulate an 
41unassigned fund balance greater than the charter school entity 
42unassigned fund balance limit, which will be determined as 
43follows:

44  45  46Charter School Entity 47Total Budgeted Expenditures	Maximum Unassigned Fund Balance as Percentage of Total Budgeted Expenditures
48Less than or equal to $11,999,999	12%
49Between $12,000,000 and $12,999,999	11.5%
50Between $13,000,000 and $13,999,999	11%
51Between $14,000,000 and $14,999,999	10.5%
2014/90MSP/SB1085A08429 -8-
1Between $15,000,000 and $15,999,999	10%
2Between $16,000,000 and $16,999,999	9.5%
3Between $17,000,000 and $17,999,999	9%
4Between $18,000,000 and $18,999,999	8.5%
5Greater Than or Equal to $19,000,000	8%

6(2)  Any unassigned fund balance in place on June 30, 2015, 
7that exceeds the charter school entity unassigned fund balance 
8limit shall be refunded on a pro rata basis within ninety (90) 
9days to all school districts that paid tuition to the charter 
10school entity on behalf of students enrolled in the 2013-2014 
11and 2014-2015 school years.

12(3)  For the 2015-2016 school year and each school year 
13thereafter, any unassigned fund balance in place on June 30 of 
14that school year in excess of the charter school entity 
15unassigned fund balance limit shall be refunded on a pro rata 
16basis within ninety (90) days to all school districts that paid 
17tuition to the charter school entity in the prior school year.

18(4)  By September 30, 2015, and August 15 of each year 
19thereafter, each charter school entity shall provide the 
20department and all school districts that paid tuition to the 
21charter school entity in the prior school year with information 
22certifying compliance with this section. The information shall 
23be provided in a form and manner prescribed by the department 
24and shall include information on the charter school entity's 
25estimated ending unassigned fund balance expressed as a dollar 
26amount and as a percentage of the charter school entity's total 
27budgeted expenditures for that school year.

28(5) Unassigned funds of the charter school entity in excess
29of the unassigned fund balance limit may not be used to pay
30bonuses to any administrator, board of trustees member, employe,
31staff member or contractor and may not be transferred to a
32charter school foundation. If a charter school entity uses funds
33in excess of the unassigned fund balance limit to pay bonuses to
34any administrator, board of trustees member, employe, staff
35member or contractor or transfers such funds to a charter school
36foundation, the value of the bonus payment or fund transfer
37shall be refunded by the charter school entity on a pro rata
38basis to all school districts that paid tuition to the charter
39school entity on behalf of students enrolled in the charter
40school entity in the immediately preceding school year.

41(6) As used in this section, "unassigned fund balance" shall 
42mean that portion of the fund balance of a charter school entity 
43that provides funding or resources or otherwise serves to 
44support the charter school entity that is:

45(i)  available for expenditure or not legally or otherwise 
46segregated for a specific or tentative future use; and

47(ii)  held in the general fund accounts of the charter school
48entity.

49Section 7.1. Sections 1717-A(c), (d), (e), (f) and (i) and
501719-A of the act, added June 19, 1997 (P.L.225, No.22), are
51amended to read:

1Section 1717-A. Establishment of Charter School.--* * *

2(c) An application to establish a charter school shall be
3submitted to the local board of school directors of the district
4where the charter school will be located by [November 15]
5October 1 of the school year preceding the school year in which
6the charter school will be established except that for a charter
7school beginning in the 1997-1998 school year, an application
8must be received by July 15, 1997. In the 1997-1998 school year
9only, applications shall be limited to recipients of fiscal year
101996-1997 Department of Education charter school planning
11grants.

12(d) Within forty-five (45) days of receipt of an
13application, the local board of school directors in which the
14proposed charter school is to be located shall hold at least one
15public hearing on the provisions of the charter application,
16under [the act of July 3, 1986 (P.L.388, No.84), known as the
17"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
18At least forty-five (45) days must transpire between the first
19public hearing and the final decision of the board on the
20charter application except that for a charter school beginning
21in the 1997-1998 school year, only thirty (30) days must
22transpire between the first public hearing and the final
23decision of the board.

24(e) (1) Not later than seventy-five (75) days after the
25first public hearing on the application, the local board of
26school directors shall grant or deny the application. For a
27charter school beginning in the 1997-1998 school year, the local
28board of school directors shall grant or deny the application no
29later than sixty (60) days after the first public hearing.

30(2) A charter school application submitted under this
31article shall be evaluated by the local board of school
32directors based on criteria, including, but not limited to, the
33following:

34(i) The demonstrated, sustainable support for the charter
35school plan by teachers, parents, other community members and
36students, including comments received at the public hearing held
37under subsection (d).

38(ii) The capability of the charter school applicant, in
39terms of support and planning, to provide comprehensive learning
40experiences to students pursuant to the adopted charter.

41(iii) The extent to which the application considers the
42information requested in section 1719-A and conforms to the
43legislative intent outlined in section 1702-A.

44(iv) The extent to which the charter school may serve as a
45model for other public schools.

46(3) The local board of school directors, in the case of an
47existing school being converted to a charter school, shall
48establish the alternative arrangements for current students who
49choose not to attend the charter school.

50(4) A charter application shall be deemed approved by the
51local board of school directors of a school district upon

1affirmative vote by a majority of all the directors. Formal
2action approving or denying the application shall be taken by
3the local board of school directors at a public meeting, with
4notice or consideration of the application given by the board,
5under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

6(5) Written notice of the board's action shall be sent to
7the applicant, the department and the appeal board. If the
8application is denied, the reasons for the denial, including a
9description of deficiencies in the application, shall be clearly
10stated in the notice sent by the local board of school directors
11to the charter school applicant.

12(f) At the option of the charter school applicant, a denied
13application may be revised and resubmitted to the local board of
14school directors. Following the appointment and confirmation of
15the Charter School Appeal Board under section 1721-A, the
16decision of the local board of school directors may be appealed
17to the appeal board. When an application is revised and
18resubmitted to the local board of school directors, the board
19may schedule additional public hearings on the revised
20application. The board shall consider the revised and
21resubmitted application at the first board meeting occurring at
22least forty-five (45) days after receipt of the revised
23application by the board. For a revised application resubmitted
24for the 1997-1998 school year, the board shall consider the
25application at the first board meeting occurring at least thirty
26(30) days after its receipt. The board shall provide notice of
27consideration of the revised application under [the "Sunshine
28Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local
29school board may be taken until July 1, 1999.

30* * *

31(i) (1) The appeal board shall have the exclusive review of
32an appeal by a charter school applicant, or by the board of
33trustees of an existing charter school, of a decision made by a
34local board of directors not to grant a charter as provided in
35this section.

36[(2) In order for a charter school applicant to be eligible
37to appeal the denial of a charter by the local board of
38directors, the applicant must obtain the signatures of at least
39two per centum of the residents of the school district or of one
40thousand (1,000) residents, whichever is less, who are over
41eighteen (18) years of age. For a regional charter school, the
42applicant must obtain the signatures of at least two per centum
43of the residents of each school district granting the charter or
44of one thousand (1,000) residents from each of the school
45districts granting the charter, whichever is less, who are over
46eighteen (18) years of age. The signatures shall be obtained
47within sixty (60) days of the denial of the application by the
48local board of directors in accordance with clause (3).

49(3) Each person signing a petition to appeal denial of a
50charter under clause (2) shall declare that he or she is a
51resident of the school district which denied the charter

1application and shall include his or her printed name;
2signature; address, including city, borough or township, with
3street and number, if any; and the date of signing. All pages
4shall be bound together. Additional pages of the petition shall
5be numbered consecutively. There shall be appended to the
6petition a statement that the local board of directors rejected
7the petition for a charter school, the names of all applicants
8for the charter, the date of denial by the board and the
9proposed location of the charter school. No resident may sign
10more than one petition relating to the charter school
11application within the sixty (60) days following denial of the
12application. The department shall develop a form to be used to
13petition for an appeal.

14(4) Each petition shall have appended thereto the affidavit
15of some person, not necessarily a signer, setting forth all of
16the following:

17(i) That the affiant is a resident of the school district
18referred to in the petition.

19(ii) The affiant's residence, giving city, borough or
20township, with street and number, if any.

21(iii) That the signers signed with full knowledge of the
22purpose of the petition.

23(iv) That the signers' respective residences are correctly
24stated in the petition.

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

26(vi) That each signer signed on the date set forth opposite
27the signer's name.

28(vii) That to the best of the affiant's knowledge and
29belief, the signers are residents of the school district.

30(5) If the required number of signatures are obtained within
31sixty (60) days of the denial of the application, the applicant
32may present the petition to the court of common pleas of the
33county in which the charter school would be situated. The court
34shall hold a hearing only on the sufficiency of the petition.
35The applicant and local board of school directors shall be given
36seven (7) days' notice of the hearing. The court shall issue a
37decree establishing the sufficiency or insufficiency of the
38petition. If the petition is sufficient, the decree shall be
39transmitted to the State Charter School Appeal Board for review
40in accordance with this section. Notification of the decree
41shall be given to the applicant and the local board of
42directors.]

43(6) In any appeal, the decision made by the local board of
44directors shall be reviewed by the appeal board on the record as
45certified by the local board of directors. The appeal board
46shall give due consideration to the findings of the local board
47of directors and specifically articulate its reasons for
48agreeing or disagreeing with those findings in its written
49decision. The appeal board shall have the discretion to allow
50the local board of directors and the charter school applicant to
51supplement the record if the supplemental information was

1previously unavailable.

2(7) Not later than thirty (30) days after the date of notice
3of the acceptance of the appeal, the appeal board shall meet to
4officially review the certified record.

5(8) Not later than sixty (60) days following the review
6conducted pursuant to clause (6), the appeal board shall issue a
7written decision affirming or denying the appeal. If the appeal
8board has affirmed the decision of the local board of directors,
9notice shall be provided to both parties.

10(9) A decision of the appeal board to reverse the decision
11of the local board of directors shall serve as a requirement for
12the local board of directors of a school district or school
13districts, as appropriate, to grant the application and sign the
14written charter of the charter school as provided for in section
151720-A. Should the local board of directors fail to grant the
16application and sign the charter within ten (10) days of notice
17of the reversal of the decision of the local board of directors,
18the charter shall be deemed to be approved and shall be signed
19by the chairman of the appeal board.

20(10) All decisions of the appeal board shall be subject to
21appellate review by the Commonwealth Court.

22(j) Notwithstanding the provisions of section 696(i) or any
23other provision of law to the contrary, a school reform
24commission considering an application to establish a charter
25school in a school district of the first class shall comply with
26subsection (e)(5).

27(k) Notwithstanding the provisions of section 696(i) or any
28other provision of law to the contrary, a charter school
29applicant may appeal a decision of a school reform commission to
30deny an application to establish a charter school in a school
31district of the first class to the appeal board. Subsections
32(g), (h) and (i) shall apply to an appeal under this subsection.

33Section 1719-A. Contents of Application.--[An] (a) The 
34department shall create a standard application form for charter 
35school applicants seeking to establish a charter school entity 
36and for existing charter school entities seeking renewal of 
37their charters. The form shall be published in the Pennsylvania 
38Bulletin and posted on the department's publicly accessible 
39Internet website. The form shall include all of the following
40information:

41(1) The identification of the charter school applicant.

42(2) The name of the proposed charter school entity.

43(3) The grade or age levels served by the school.

44(4) [The proposed governance structure of the charter
45school, including a description and method for the appointment
46or election of members of the board of trustees.] An 
47organizational chart clearly presenting the proposed governance 
48structure of the school, including lines of authority and 
49reporting between the board of trustees, administrators, staff 
50and any educational management service provider that will 
51provide management services to the charter school entity.

1(4.1) A clear description of the roles and responsibilities
2for the board of trustees, administrators and any other
3entities, including a charter school foundation, shown in the
4organizational chart.

5(4.2) A clear description of and method for the appointment
6or election of members of the board of trustees.

7(4.3) Standards for board of trustees performance, including
8compliance with all applicable laws, regulations and terms of
9the charter.

10(4.4) If the charter school entity intends to contract with
11an educational management service provider for services, all of
12the following:

13(i) Evidence of the educational management service
14provider's record in serving student populations, including
15demonstrated academic achievement and demonstrated management of
16nonacademic school functions, including proficiency with public
17school-based accounting, if applicable.

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

19(A) The officers, chief administrator and administrators of
20the educational management service provider.

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

22(C) Roles and responsibilities of the board of trustees, the
23school staff and the educational management service provider.

24(D) The scope of services, personnel and resources to be
25provided by the educational management service provider.

26(E) Performance evaluation measures and timelines.

27(F) The compensation structure, including clear
28identification of all fees to be paid to the educational
29management service provider.

30(G) Methods of contract oversight and enforcement.

31(H) Investment disclosure or the advance of moneys by the
32educational management service provider on behalf of the charter
33school entity.

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

35(iii) Disclosure and explanation of any existing or
36potential conflicts of interest between the members of the board
37of trustees and the proposed educational management service
38provider or any affiliated business entities, including a
39charter school foundation qualified as a support organization
40under the Internal Revenue Code of 1986 (Public Law 99-514, 26
41U.S.C. § 1 et seq.).

42(5) The mission and education goals of the charter school
43entity, the curriculum to be offered and the methods of
44assessing whether students are meeting educational goals.

45(6) The admission and enrollment policy [and criteria for
46evaluating the admission of students] which shall comply with
47the requirements of section 1723-A.

48(7) Procedures which will be used regarding the suspension
49or expulsion of pupils. Said procedures shall comply with
50section 1318.

51(8) Information on the manner in which community groups will

1be involved in the charter school entity planning process.

2(9) The financial plan for the charter school entity and the
3provisions which will be made for auditing the school under
4[section] sections 437 and 1728-A, including the role of any 
5charter school foundation.

6(10) Procedures which shall be established to review
7complaints of parents regarding the operation of the charter
8school entity.

9(11) A description of and address of the physical facility
10in which the charter school entity will be located and the
11ownership thereof and any lease arrangements.

12(12) Information on the proposed school calendar for the
13charter school entity, including the length of the school day
14and school year consistent with the provisions of section 1502.

15(13) The proposed faculty, if already determined, and a
16professional development and continuing education plan for the
17faculty and professional staff of [a] the charter school entity.

18(14) Whether any agreements have been entered into or plans
19developed with the local school district regarding participation
20of the charter school entity's students in extracurricular
21activities within the school district. Notwithstanding any
22provision to the contrary, no school district of residence shall
23prohibit a student of a charter school entity from participating
24in any extracurricular activity of that school district of
25residence: Provided, That the student is able to fulfill all of
26the requirements of participation in such activity and the
27charter school entity does not provide the same extracurricular
28activity.

29(15) A report of criminal history record, pursuant to
30section 111, for all individuals identified in the application
31who shall have direct contact with students and a plan for 
32satisfying the proper criminal history record clearances 
33required for all other staff.

34(16) An official clearance statement regarding child injury
35or abuse from the Department of Public Welfare as required by 23
36Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for
37employment in schools) for all individuals identified in the 
38application who shall have direct contact with students and a 
39plan for satisfying the proper official clearance statement 
40regarding child injury or abuse required for all other staff.

41(17) How the charter school entity will provide adequate
42liability and other appropriate insurance for the charter school
43entity, its employes and the board of trustees of the charter
44school entity.

45(18) Policies regarding truancy, absences and withdrawal of
46students, including the manner in which the charter school
47entity will monitor attendance consistent with section 1715-A(a)
48(9). The charter school entity's policy shall establish, to the
49satisfaction of the local board of school directors or, in the
50case of cyber charter school, to the satisfaction of the
51department, that the charter school entity will comply with

1sections 1332 and 1333, including the institution of truancy
2proceedings when required under section 1333.

3(19) How the charter school entity will meet the standards
4included in the performance matrix developed by the department
5under section 1731.1-A.

6(20) Indicate whether or not the charter school entity will
7seek accreditation by a nationally recognized accreditation
8agency, including the Middle States Association of Colleges and
9Schools or another regional institutional accrediting agency
10recognized by the United States Department of Education or an
11equivalent federally recognized body for charter school
12education.

13(b) A local board of school directors may not impose
14additional terms, develop its own application or require
15additional information outside the standard application form
16required under subsection (a).

17Section 8. Section 1720-A of the act, amended July 9, 2008
18(P.L.846, No.61), is amended to read:

19Section 1720-A. Term and Form of Charter.--(a) (1) Upon
20approval of a charter application under section 1717-A, a
21written charter shall be developed which shall contain the
22provisions of the standardized charter application under section 
231719-A and which shall be signed by the local board of school
24directors of a school district, by the local boards of school
25directors of a school district in the case of a regional charter
26school or by the chairman of the appeal board pursuant to
27section [1717-A(i)(5)] 1717-A(i)(9) and the board of trustees of
28the charter school or regional charter school. This written
29charter, when duly signed by the local board of school directors
30of a school district, [or] by the local boards of school
31directors of a school district in the case of a regional charter
32school or by the chairman of the appeal board, and the charter
33school's or regional charter school's board of trustees, shall
34act as legal authorization for the establishment of a charter
35school or regional charter school. This written charter shall be
36legally binding on both the local board of school directors of a
37school district and the charter school's or regional charter 
38school's board of trustees. [Except as otherwise provided in
39subsection (b), the charter shall be for a period of no less
40than three (3) nor more than five (5) years and may be renewed
41for five (5) year periods upon reauthorization by the local
42board of school directors of a school district or the appeal
43board.] If the charter school or regional charter school 
44contracts with an educational management service provider, a 
45contract shall be executed once the charter is approved. A
46charter will be granted only for a school organized as a public,
47nonprofit corporation.

48(2)  The following shall apply to all charters granted by a
49school district:

50(i)  An initial charter executed pursuant to section
511720-A(a)(1) shall be for a period of five (5) years.

1(ii)  Prior to the effective date of the regulations
2implementing the performance matrix as required pursuant to
3section 1731.1-A, a charter may be renewed for five (5) year
4periods upon reauthorization by the local board of school
5directors or other governing body of a school district or the
6appeal board.

7(iii)  Upon the effective date of the regulations
8implementing the performance matrix as required pursuant to
9section 1731.1-A, the following shall apply:

10(A)  For charter schools and regional charter schools that
11have satisfied the academic quality benchmark established by the
12State Board of Education pursuant to section 1731.1-A, a charter
13may be renewed for ten (10) year periods upon reauthorization by
14the local board of school directors or other governing body of a
15school district or the appeal board.

16(B)  For charter schools and regional charter schools that
17have not satisfied the academic quality benchmark established by
18the State Board of Education pursuant to section 1731.1-A, a
19charter may be renewed for five (5) year periods upon
20reauthorization by the local board of school directors or other
21governing body of a school district or the appeal board.

22(b) (1) Notwithstanding subsection (a), a governing board
23of a school district of the first class may renew a charter for
24a period of one (1) year if the board of school directors
25determines that there is insufficient data concerning the
26charter school's academic performance to adequately assess that
27performance and determines that an additional year of
28performance data would yield sufficient data to assist the
29governing board in its decision whether to renew the charter for
30a period of five (5) years.

31(2) A one-year renewal pursuant to paragraph (1) shall not
32be considered an adjudication and may not be appealed to the
33State Charter School Appeal Board.

34(3) A governing board of a school district of the first
35class does not have the authority to renew a charter for
36successive one (1) year periods.

37(c) (1) A charter school or regional charter school may
38request amendments to its approved written charter by filing a
39written document describing the requested amendment with the
40local board of school directors.

41(2) Within thirty-five (35) days of its receipt of the
42request for an amendment, the local board of school directors
43shall hold a public hearing on the requested amendment under 65
44Pa.C.S. Ch. 7 (relating to open meetings).

45(3) Within thirty-five (35) days after the hearing, the
46local board of school directors shall grant or deny the
47requested amendment. Failure by the local board of school
48directors to hold a public hearing and to grant or deny the
49amendments within the time period specified in this subsection
50shall be deemed an approval.

51(4) An applicant for an amendment to a local board of school

1directors shall have the right to appeal the denial of a
2requested amendment to the appeal board provided for under
3section 1721-A.

4Section 9. Section 1721-A(a) and (e) of the act, added June
519, 1997 (P.L.225, No.22), are amended to read:

6Section 1721-A. State Charter School Appeal Board.--(a) The
7State Charter School Appeal Board shall consist of the Secretary
8of Education and [six (6)] the following members who shall be
9appointed by the Governor by and with the consent of a majority
10of all the members of the Senate. [Appointments by the Governor
11shall not occur prior to January 1, 1999.] The Governor shall
12select the chairman of the appeal board to serve at the pleasure
13of the Governor. The members shall include:

14(1) A parent of a school-aged child enrolled in a charter 
15school entity.

16(2) A school board member.

17(3) A certified teacher actively employed in a public
18school.

19(4) A faculty member or administrative employe of an
20institution of higher education.

21(5) A member of the business community.

22(6) A member of the State Board of Education.

23(7) An administrator of a charter school entity.

24(8) A member of the board of trustees of a charter school
25entity.

26The term of office of members of the appeal board, other than
27the secretary, shall be for a period of four (4) years or until
28a successor is appointed and qualified, except that, of the
29initial appointees, the Governor shall designate two (2) members
30to serve terms of two (2) years, two (2) members to serve terms
31of three (3) years and two (2) members to serve terms of four
32(4) years. A parent member appointed under paragraph (1) shall 
33serve a term of four (4) years, provided the member's child 
34remains enrolled in the charter school entity. Any appointment
35to fill any vacancy shall be for the period of the unexpired
36term or until a successor is appointed and qualified.

37* * *

38(e) Meetings of the appeal board shall be conducted under 
39[the act of July 3, 1986 (P.L.388, No.84), known as the 
40"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings). 
41Documents of the appeal board shall be subject to the act of 
42[June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
43Know Law.] February 14, 2008 (P.L.6, No.3), known as the "Right-
44to-Know Law."

45Section 10. Section 1722-A(a), (b) and (d) of the act,
46amended November 17, 2010 (P.L.996, No.104), are amended and the
47section is amended by adding subsections to read:

48Section 1722-A. Facilities.--(a) A charter school entity
49may be located in an existing public school building, in a part
50of an existing public school building, in space provided on a
51privately owned site, in a public building or in any other

1suitable location.

2(b) The charter school entity facility shall be exempt from
3public school facility regulations except those pertaining to
4the health or safety of [the pupils] students.

5(b.1) (1) A charter school entity shall have the right of
6first refusal to purchase or lease, for educational purposes
7only, a public school building or a part of a public school
8building which is no longer in active use by the property
9titleholder, at the price of one of the following:

10(i) The last best offer above fair market value received in
11the ninety (90) days preceding the charter school entity's
12offer.

13(ii) Fair market value, if no offer has been received in the
14ninety (90) days preceding the charter school entity's offer.

15(iii) Below fair market value, upon the mutual agreement of
16the school entity and the charter school entity.

17(2) Subject to paragraph (4), a school entity shall accept
18an offer from a charter school entity that conforms to the
19provisions of paragraph (1).

20(3) The department shall provide a page on its publicly
21accessible Internet website on which school entities are
22required to post a notice for each public school building or
23part of a public school building that is available for purchase
24or lease. A school entity shall submit a notice to the
25department on a form to be developed by the department. The
26department shall post the notice within five (5) days of
27receiving the form.

28(4) The following shall apply to the sale or lease of a
29public school building or a part of a public school building by
30a school entity:

31(i) A school entity may not enter a contract to sell or
32lease a building or part of a building until at least thirty
33(30) days after the posting of a notice as required under
34paragraph (3).

35(ii) Where two (2) or more charter school entities make
36offers on the same building or part of a building that conform
37to the provisions of this subsection, the school entity shall:

38(A) Accept the first offer where all the offers are equal.

39(B) Accept the best offer where the offers differ.

40(d) Notwithstanding any other provision of this act, a
41school district [of the first class] may, in its discretion,
42permit a charter school or regional charter school to operate
43its school at more than one location.

44* * *

45(f) (1) Alcoholic beverages shall not be available for
46consumption, purchase or sale in any charter school entity
47facility.

48(2) If, in the case of a charter school or regional charter 
49school, the local board of school directors reasonably believes
50that alcoholic beverages have been made available for
51consumption, purchase or sale in the charter school or regional

1charter school facility, the local board of school directors
2shall notify the department.

3(3) If alcoholic beverages have been made available for
4consumption, purchase or sale in a charter school entity
5facility, the secretary shall order the following forfeitures
6against the charter school entity:

7(i) A fine of $1,000 for the first violation.

8(ii) A fine of $5,000 for the second or subsequent
9violation.

10(4) The charter school entity may appeal the order of the
11secretary under 2 Pa.C.S. Chs. 5 (relating to practice and
12procedure) and 7 (relating to judicial review).

13Section 11. Section 1723-A(a) and (b) of the act, amended
14June 26, 1999 (P.L.394, No.36) are amended to read:

15Section 1723-A. [Enrollment] Admission and Enrollment 
16Requirements.--(a) (1) All resident children in this
17Commonwealth who submit a completed enrollment form in 
18accordance with clause (3) qualify for admission to a charter
19school entity within the provisions of subsection (b). [If] In 
20the case of a charter school, if more students apply to the
21charter school than the number of attendance slots available in
22the school, then students must be selected on a random basis
23from a pool of [qualified applicants meeting the established
24eligibility criteria and submitting an application] eligible 
25applicants who have submitted an enrollment form in accordance 
26with clauses (3) and (4) by the deadline established by the
27charter school, except that the charter school may give
28preference in enrollment to a child of a parent who has actively
29participated in the development of the charter school [and], to
30siblings of students presently enrolled in the charter school
31and to siblings of students selected for enrollment during the 
32lottery process. First preference shall be given to students who
33reside in the district or districts[.] in which the charter 
34school is physically located.

35(2) If a charter school has a waiting list following its
36initial selection of eligible applicants under clause (1), the
37charter school shall select eligible applicants from the waiting
38list as spaces become available. All children shall be assigned
39to the waiting list on a random basis. When selecting eligible
40applicants from the waiting list, a charter school shall give
41first preference to students as provided under clause (1) and to
42those who reside in the district or districts in which the
43charter school is physically located until the charter school
44again reaches its maximum capacity of students. If a charter
45school has a waiting list, once the charter school has exhausted
46the waiting list of resident children, it may then enroll
47children on the waiting list who reside outside of the district.
48Nonresident children shall also be selected on a random basis.

49(3) The department, in consultation with representatives of
50charter school entities, shall develop a standard enrollment
51form that shall be used by all eligible applicants to apply to a

1charter school entity. The standard enrollment form shall only
2request information necessary to allow the charter school entity
3to identify the student, grade level and residency, including:

4(i) The student's name, physical address, telephone number,
5age, birth date and current grade level.

6(ii) The name, physical address, telephone number and e-mail
7address of the student's parent or guardian.

8(4) The standard enrollment form shall be made physically
9available at each charter school entity, in a form that complies
10with Federal and State law and posted on the publicly accessible
11Internet website of each charter school entity, if available. A
12charter school entity may accept the enrollment form via
13electronic means.

14(5) When a student applies to a charter school entity, a
15charter school entity shall not require or request information
16beyond the contents of the standard enrollment form developed by
17the department.

18(6) Nothing in this section shall prohibit a charter school
19entity from requesting the submission of additional records and
20information that public schools are entitled to receive after a 
21student is accepted for admission to a charter school entity.

22(7) As used in this subsection "eligible applicant" shall
23mean a student who is seeking to enter a grade level offered by
24the charter school and meets the requirements of 22 Pa. Code §§
2511.12 (relating to school age), 11.13 (relating to compulsory
26school age), 11.14 (relating to admission to kindergarten when
27provided), 11.15 (relating to admission of beginners), 11.16
28(relating to early admission of beginners) and 12.1 (relating to
29free education and attendance) and student residency
30requirements.

31(b) (1) A charter school entity shall not discriminate in
32its admission policies or practices on the basis of intellectual
33ability, [except as provided in paragraph (2), or] athletic
34ability, measures of achievement or aptitude, status as a person
35with a disability, proficiency in the English language or any
36other basis that would be illegal if used by a school district.

37(2) A charter school entity may limit [admission] its 
38academic focus to a particular grade level[,] or a targeted
39population group composed of at-risk students[, or areas of
40concentration of the school such as mathematics, science or the
41arts. A charter school may establish reasonable criteria to
42evaluate prospective students which shall be outlined in the
43school's charter.] or a specialized area or accelerated program 
44of study, such as mathematics, science or the arts.

45* * *

46Section 12. Section 1724-A(d) of the act, added June 19,
471997 (P.L.225, No.22), are reenacted to read:

48Section 1724-A. School Staff.--* * *

49(d) Every employe of a charter school shall be provided [the
50same] similar health care benefits as the employe would be
51provided if he or she were an employe of the local district. The

1local board of school directors may require the charter school
2to provide [the same] similar terms and conditions with regard
3to health insurance as the collective bargaining agreement of
4the school district to include employe contributions to the
5district's health benefits plan. The charter school shall make
6any required employer's contribution to the district's health
7plan to an insurer, a local board of school directors or a
8contractual representative of school employes, whichever is
9appropriate to provide the required coverage.

10* * *

11Section 13. Section 1725-A(a)(2) of the act, amended June
1229, 2002 (P.L.524, No.88), is amended to read:

13Section 1725-A. Funding for Charter Schools.--(a) Funding
14for a charter school shall be provided in the following manner:

15* * *

16(2) For non-special education students, the charter school
17shall receive for each student enrolled no less than the
18budgeted total expenditure per average daily membership of the
19prior school year, as defined in section 2501(20), minus the
20budgeted expenditures of the district of residence for nonpublic
21school programs; adult education programs; community/junior
22college programs; student transportation services; for special
23education programs; facilities acquisition, construction and
24improvement services; programs and services to the extent they 
25are funded from the proceeds of competitive grants from private 
26or public resources or from contributions or donations from 
27private sources; and other financing uses, including debt
28service and fund transfers as provided in the Manual of
29Accounting and Related Financial Procedures for Pennsylvania
30School Systems established by the department. This amount shall
31be paid by the district of residence of each student.

32* * *

33Section 14. Section 1728-A(a) of the act, added June 19,
341997 (P.L.225, No.22), is amended to read:

35Section 1728-A. Annual Reports and Assessments.--(a) (1)
36The local board of school directors shall annually assess
37whether each charter school or regional charter school is
38meeting the goals of its charter and shall conduct a
39comprehensive review prior to granting a [five (5) year] renewal
40of the charter pursuant to section 1720-A(a)(2). The local board
41of school directors shall have ongoing access to the records and
42facilities of the charter school or regional charter school to
43ensure that the charter school or regional charter school is in
44compliance with its charter and this act and that requirements
45for testing, civil rights and student health and safety are
46being met.

47(2) Ongoing access to a charter school's or regional charter
48school's records shall mean that the local board of school
49directors shall have access to records such as financial
50reports, financial audits, aggregate standardized test scores
51without student-identifying information and teacher

1certification and personnel records.

2(3) Charter schools and regional charter schools shall
3comply fully with the requirements of the Family Educational
4Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. §
51232g) and associated regulations. No personally identifiable
6information from education records shall be provided by the
7charter school or regional charter school to the school district
8except in compliance with the Family Educational Rights and
9Privacy Act of 1974.

10(b) In order to facilitate the local board's review and
11secretary's report, each charter school or regional charter
12school shall submit an annual report no later than August 1 of
13each year to the local board of school directors and the
14secretary in the form prescribed by the secretary.

15[(c) Five (5) years following the effective date of this
16article, the secretary shall contract with an independent
17professional consultant with expertise in public and private
18education. The consultant shall receive input from members of
19the educational community and the public on the charter school
20program. The consultant shall submit a report to the secretary,
21the Governor and the General Assembly and an evaluation of the
22charter school program, which shall include a recommendation on
23the advisability of the continuation, modification, expansion or
24termination of the program and any recommendations for changes
25in the structure of the program.]

26(d) A charter school entity shall form an independent audit
27committee of its board members which shall review at the close
28of each fiscal year a complete certified audit of the operations
29of the charter school entity. The audit shall be conducted by a
30qualified independent certified public accountant. The audit
31shall be conducted under generally accepted audit standards of
32the Governmental Accounting Standards Board and shall include
33the following:

34(1) An enrollment test to verify the accuracy of student
35enrollment and reporting to the State.

36(2) Full review of expense reimbursements for board members
37and administrators, including sampling of all reimbursements.

38(3) Review of internal controls, including review of
39receipts and disbursements.

40(4) Review of annual Federal and State tax filings,
41including the Internal Revenue Service Form 990, Return of
42Organization Exempt from Income Tax and all related schedules
43and appendices for the charter school entity and charter school
44foundation, if applicable.

45(5) Review of the financial statements of any charter school
46foundation.

47(6) Review of the selection and acceptance process of all
48contracts publicly bid pursuant to section 751.

49(7) Review of all board policies and procedures with regard
50to internal controls, code of ethics, conflicts of interest,
51whistle-blower protections, complaints from parents or the

1public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
2meetings), compliance with the "Right-to-Know Law," finances,
3budgeting, audits, public bidding and bonding.

4(e) The certified audit under subsection (d) and the annual
5budget under subsection (g) are public documents and shall be
6made available on the charter school entity's publicly
7accessible Internet website, if available, and in the case of a
8charter school or regional charter school, on the school
9district's publicly accessible Internet website.

10(f) A charter school entity may be subject to an annual
11audit by the Auditor General, in addition to any other audits
12required by Federal law or this article.

13(g) A charter school entity shall annually provide the
14department and, in the case of a charter school or regional
15charter school, shall annually provide the school district, with
16a copy of the annual budget for the operation of the charter
17school entity that identifies the following:

18(1) The source of funding for all expenditures as part of
19its reporting under subsection (a).

20(2) Where funding is provided by a charter school
21foundation, the amount of funds and a description of the use of
22the funds.

23(3) The salaries of all administrators of the charter school
24entity.

25(4) All expenditures to an educational management service
26provider.

27(h) (1) Notwithstanding any other provision of law, a
28charter school entity and any affiliated charter school
29foundation shall make copies of its annual Federal and State tax
30filings available upon request and on the foundation's or
31charter school entity's publicly accessible Internet website, if
32applicable, including Internal Revenue Service Form 990, Return
33of Organization Exempt from Income Tax and all related schedules
34and appendices.

35(2) The charter school foundation shall also make copies of
36its annual budget available upon request and on the foundation's
37or the charter school entity's publicly accessible Internet
38website within thirty (30) days of the close of the foundation's
39fiscal year.

40(3) The annual budget shall include the salaries of all
41employes of the charter school foundation.

42Section 15. The act is amended by adding a section to read:

43Section 1728.2-A. Charter Authorizer Accountability.--(a)
44Each local board of school directors shall be required to submit
45to the department an annual report summarizing:

46(1) The strategic vision for chartering and progress toward
47achieving that vision.

48(2) The academic and financial performance of all operating
49public charter schools and regional charter schools overseen by
50the local board of school directors according to the performance
51expectations for public charter schools set forth in this act.

1(3) The status of the local board of school directors'
2charter school and regional charter school portfolio,
3identifying all public charter schools in each of the following
4categories: (i) approved, but not open; (ii) open and operating;
5and (iii) closed, including the year closed and the reason for
6closure.

7(4) The authorizing functions provided by the local board of
8school directors to the public charter schools and regional
9charter schools under its purview, including the authorizer's
10operating costs and expenses detailed in annual audited
11financial statements that conform to generally accepted
12accounting principles.

13(b) The department shall be responsible for the following:

14(1) Oversight of the performance of each established local
15board of school directors.

16(2) Formal evaluation of the overall State charter school
17program and outcomes every five years.

18(3) For each local board of school directors an annual
19review, based on objective data, to determine how well it is
20exercising its duties and maintaining a portfolio of high-
21performing charter schools.

22(4) In reviewing or evaluating the performance of each local
23board of school directors, the department shall apply nationally
24recognized principles and standards of quality charter school
25authorizing including, but not limited to, those of the National
26Association of Charter School Authorizers.

27(c) The department shall publish the annual reviews on its
28publicly accessible Internet website and submit a summary report
29regarding performance to the Governor and the General Assembly.

30(d) (1) By November 30, 2014, the department shall develop
31a plan for sanctioning local boards of school directors that
32maintain portfolios with persistently low-performing charter
33schools and regional charter schools and fail to provide
34adequate oversight or intervention that may include a corrective
35action plan and other sanctions deemed necessary by the
36department.

37(2) The department must issue its plan for sanctioning local
38boards of school directors to the President pro tempore of the
39Senate, the Majority Leader and Minority Leader of the Senate,
40the Education Committee of the Senate, the Speaker of the House
41of Representatives, the Majority Leader and Minority Leader of
42the House of Representatives and the Education Committee of the
43House of Representatives.

44(3) The plan for sanctioning local boards of school
45directors developed by the department shall not go into effect
46unless the plan for sanctioning local boards of school directors
47is approved by an act of the General Assembly.

48Section 16. Section 1729-A(a), (b) and (c) of the act, added
49June 19, 1997 (P.L.225, No.22), are amended to read:

50Section 1729-A. Causes for Nonrenewal or Termination.--(a)
51During the term of the charter or at the end of the term of the

1charter, the local board of school directors may choose to
2revoke or not to renew the charter based on any of the
3following:

4(1) One or more material violations of any of the
5conditions, standards or procedures contained in the written
6charter signed pursuant to section 1720-A.

7(2) Failure to meet the requirements for student performance
8[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
9subsequent regulations promulgated to replace 22 Pa. Code Ch. 5]
10on assessments or failure to meet any performance standard set
11forth in the written charter signed pursuant to section [1716-A] 
121720-A.

13(3) Failure to meet generally accepted standards of fiscal
14management or audit requirements.

15(4) Violation of provisions of this article.

16(5) Violation of any provision of law from which the charter
17school entity has not been exempted, including Federal laws and
18regulations governing children with disabilities.

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

20* * *

21(b) [A member of the board of trustees who is convicted of a
22felony or any crime involving moral turpitude shall be
23immediately disqualified from serving on the board of trustees.]
24If, after a hearing under this section, a local board of school 
25directors or, in the case of a cyber charter school, the 
26department proves by a preponderance of the evidence that an 
27administrator or board member of a charter school entity has 
28violated this article, the terms and conditions of the charter 
29or any other law, the local board of school directors or, in the 
30case of a cyber charter school, the department may require the 
31charter school entity to replace the administrator or board of 
32trustees member in order to obtain renewal of the charter. The 
33local board of school directors or, in the case of a cyber 
34charter school, the department may refer its findings to the 
35district attorney with jurisdiction or to the Office of Attorney 
36General for prosecution if the local board of school directors 
37or, in the case of a cyber charter school, the department 
38discovers or receives information about possible violations of 
39law by any person affiliated with or employed by a charter 
40school entity.

41(c) Any notice of revocation or nonrenewal of a charter
42given by the local board of school directors of a school
43district shall state the grounds for such action with reasonable
44specificity and give reasonable notice to the [governing] board
45of trustees of the charter school or regional charter school of
46the date on which a public hearing concerning the revocation or
47nonrenewal will be held. The local board of school directors
48shall conduct such hearing, present evidence in support of the
49grounds for revocation or nonrenewal stated in its notice and
50give the charter school or regional charter school reasonable
51opportunity to offer testimony before taking final action.

1Formal action revoking or not renewing a charter shall be taken
2by the local board of school directors held at a public meeting
3pursuant to [the act of July 3, 1986 (P.L.388, No.84), known as
4the "Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating to open 
5meetings) after the public has had thirty (30) days to provide
6comments to the board. All proceedings of the local board
7pursuant to this subsection shall be subject to 2 Pa.C.S. Ch. 5
8Subch. B (relating to practice and procedure of local agencies).
9Except as provided in subsection (d), the decision of the local
10board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B (relating
11to judicial review of local agency action).

12* * *

13Section 17. The act is amended by adding sections to read:

14Section 1729.1-A. Evaluation of Educators.--(a) All
15applications by a charter school entity for a charter or for the
16renewal of a charter shall include a system of evaluation for
17educators that includes:

18(1) at least four (4) rating categories of educator
19performance; and

20(2) multiple measures of student performance which shall
21include, but may not be limited to, value-added assessment
22system data made available by the department under section 221
23and student performance on the most recent assessments for which
24results have been released by the department and may include
25goals specific to the mission of the charter school entity's
26charter.

27(b) Nothing in this section shall preempt the powers of a
28board of trustees under section 1716-A(a) nor affect the intent
29of the General Assembly provided in section 1702-A(3) and (4).

30(c) For purposes of this section, the term "educator" shall
31include all professional employes who are certified as teachers
32and noncertified staff members who teach in a charter school
33entity.

34Section 1729.2-A. Multiple Charter School Organizations.--
35(a) A multiple charter school organization approved by the
36secretary under this section shall be:

37(1) granted legal authority to operate two (2) or more
38individual charter schools established under the requirements of
39section 1717-A, under the management of a single board of
40trustees and a chief administrator, subject to the oversight of
41the authorizing school district for each charter school included
42in the multiple charter school organization;

43(2) subject to all of the requirements of this article,
44unless otherwise provided for under this section; and

45(3) the holder of the charter of each individual charter
46school within the organization.

47(b) Subject to the requirements of this section and 15
48Pa.C.S. Pt. II Subpt. C (relating to nonprofit corporations),
49two (2) or more charter schools may consolidate into a multiple
50charter school organization pursuant to the following:

51(1) Each charter school seeking to consolidate pursuant to

1this section shall submit an application for consolidation to
2the department and to the authorizing school district for each
3charter school included in the proposed consolidation. The
4application must be submitted to the department and to all
5authorizing school districts on the same day.

6(2) A school district that receives an application for
7consolidation under paragraph (1) may object to the proposed
8consolidation by filing a statement of its objections to the
9application with the department and each charter school included
10in the proposed consolidation within thirty (30) days of the
11submission date. If an authorizing school district does not file
12a statement of its objections within thirty (30) days of the
13submission date, the authorizing school district shall be deemed
14to assent to the application.

15(3) Within thirty (30) days of its receipt of a school
16district's statement of its objections under paragraph (2), the
17department shall conduct a hearing to consider the application
18and the school district's objections. The hearing required under
19this paragraph shall be conducted by an impartial hearing
20officer appointed by the Governor's Office of General
21Counsel. In conducting the hearing, the hearing officer may
22request that the authorizing school districts and the charter
23schools included in the proposed consolidation provide any
24supplemental information the hearing officer deems necessary in
25considering the application and the school district's
26objections.

27(4) Within sixty (60) days of the hearing conducted pursuant
28to paragraph (3), the hearing officer shall submit to the
29secretary a report stating the hearing officer's recommendations
30concerning the application.

31(5) (i) Subject to subparagraph (ii), within sixty (60)
32days following receipt of the report, the secretary shall issue
33a decision and serve the decision on all charter schools
34included in the proposed consolidation and the authorizing
35school district for each charter school included in the proposed
36consolidation. In issuing a decision, the secretary shall
37consider only whether the proposed consolidation is in
38compliance with subsection (c).

39(ii) If no authorizing school district for any charter
40included in the proposed consolidation files a statement of its
41objections with the department within thirty (30) days of the
42submission date, the secretary shall issue the decision required
43under subparagraph (i) within sixty (60) days of the submission
44date. In issuing a decision under this subparagraph, the
45secretary may request that the authorizing school districts and
46the charter schools included in the proposed consolidation
47provide any supplemental information the secretary deems
48necessary in considering the application.

49(6) A decision of the secretary under this section may be
50appealed to the Commonwealth Court under 2 Pa.C.S. (relating to
51administrative law and procedure).

1(7) A proposed consolidation under this section shall not
2require court approval under 20 Pa.C.S. Ch. 77 (relating to
3trusts).

4(c) A charter school that, within either of the two (2)
5school years immediately preceding the submission date, has
6failed to meet the requirements for student performance
7specified in 22 Pa. Code Ch. 4 (relating to academic standards
8and assessment), accepted standards of fiscal management or
9audit requirements or performance standards of the matrix
10established under section 1731.1-A shall not be eligible to
11consolidate with another charter school, unless the
12consolidation includes a charter school demonstrating that it
13has satisfied the requirements for the most recent two (2)
14school years.

15(d)  A multiple charter school organization may:

16(1) Participate in the assessment system in the same manner
17in which a school district participates, with its individual
18charter schools within the organization participating in the
19assessment system in the same manner as individual schools
20within school districts. All data gathered for purposes of
21evaluation shall be gathered in the same manner in which data is
22gathered in the case of school districts and individual schools
23within school districts. Nothing in this paragraph shall be
24construed to alter the manner in which charter school
25performance on assessments is measured as required under the No
26Child Left Behind Act of 2001 (Public Law 107-110, 115 Stat.
271425), or its successor Federal statute.

28(2) Allow a student enrolled in a charter school within the
29organization to matriculate to another charter school within the
30organization so as to complete a course of instruction in an
31educational institution from kindergarten through grade twelve
32or otherwise in the best interests of the student.

33(3) Add existing charter schools to the organization
34pursuant to the procedure specified in subsection (b). Only a
35charter school already established under section 1717-A may be
36added to a multiple charter school organization.

37(e) The charter of each individual charter school within a
38multiple charter school organization shall be subject to
39nonrenewal or revocation by the authorizing school district for
40the individual charter school pursuant to section 1729-A. The
41nonrenewal or revocation of the charter of an individual charter
42school within a multiple charter school organization shall not
43affect the status of the charter of any other individual charter
44school within the organization.

45(f) The department shall develop and place on its publicly
46accessible Internet website a standard application form that
47charter schools shall use in applying for consolidation under
48this section. The application form shall contain the following
49information:

50(1) The name of the multiple charter school organization.

51(2) The names of the charter schools included in the

1proposed consolidation.

2(3) A copy of the approved charter of each charter school
3included in the proposed consolidation.

4(4) An organizational chart clearly presenting the proposed
5governance structure of the multiple charter school
6organization, including lines of authority and reporting between
7the board of trustees, chief administrator, administrators,
8staff and any educational management service provider that will
9play a role in providing management services to the charter
10schools within the proposed organization.

11(5) A clear description of the roles and responsibilities
12for the board of trustees, chief administrator, administrators
13and any other entities, including a charter school foundation,
14shown in the organizational chart.

15(6) A clear description of the method for the appointment or
16election of members of the board of trustees of the proposed
17organization.

18(7) Standards for board of trustees performance which shall,
19at a minimum, include compliance with all applicable laws,
20regulations and terms of the charter of each charter school
21included in the proposed organization.

22(8) Enrollment procedures for each charter school included
23in the proposed organization.

24(9) Any other information as deemed necessary by the
25department.

26(g) Subject to subsection (a), nothing in this section shall
27be construed to affect or change the terms or conditions of the
28charters of any individual charter schools that are consolidated
29under this section, including, but not limited to, any
30obligation of a school district to provide transportation for
31students enrolled in an individual charter school within a
32multiple charter school organization.

33(h) As used in this section, the following words and phrases
34shall have the meanings given to them in this subsection unless
35the context clearly indicates otherwise:

36"Authorizing school district."  The school district that
37granted the initial charter of a charter school.

38"Charter school."  A charter school or regional charter
39school.

40"Decision."  The secretary's written approval or rejection of
41an application for consolidation.

42"Multiple charter school organization" or "organization."  A
43multiple charter school organization established under this
44section.

45"Submission date."  The date on which a consolidation
46application is submitted to the department and the authorizing
47school district for each charter school included in a proposed
48consolidation.

49Section 1731.1-A Performance Matrix.--(a) Within one (1)
50year of the effective date of this section, the State Board of
51Education shall develop a standard performance matrix to

1evaluate charter school entity performance. Within one (1) year
2of the effective date of this section, the State Board of
3Education shall also propose regulations pursuant to the act of
4June 25, 1982 (P.L.633, No.181), known as the "Regulatory Review
5Act," to implement this section.

6(b) The performance matrix shall assess performance by
7utilizing objective criteria, including, but not limited to:
8student performance on assessments; annual growth as measured by
9the Pennsylvania Value-Added Assessment System; attendance;
10attrition rates; graduation rates; other standardized test
11scores; school safety; parent satisfaction; accreditation by a
12nationally recognized accreditation agency, including the Middle
13States Association of Colleges and Schools or another regional
14institutional accrediting agency recognized by the United States
15Department of Education or an equivalent federally recognized
16body for charter school education; and other measures of school
17quality, including measures for assessing teacher effectiveness.

18(c) In developing the performance matrix, the State Board of
19Education shall determine an academic quality benchmark the
20satisfaction of which shall qualify a charter school entity for
21a ten (10) year renewal term pursuant to sections 1720-A(a)(2)
22and 1745-A(f)(3). The academic quality benchmark shall be
23included in the regulations required under subsection (a).

24(d) In developing the performance matrix, the State Board of
25Education may contract for consulting services with an entity
26that has experience in developing performance matrices if the
27services are procured through a competitive bidding process.

28(e) Neither the department nor the local board of school
29directors may develop a separate performance matrix for the
30evaluation of a charter school entity.

31(f) A local board of school directors shall utilize the
32standard performance matrix as a primary factor in evaluating
33new and renewal charter school and regional charter school
34applicants and in annual monitoring and evaluation of charter
35schools and regional charter schools.

36(g) The department shall utilize the standard performance
37matrix as a primary factor in evaluating new and renewal cyber
38charter school applicants, in evaluating consolidation
39applications under section 1729.2-A and in annual monitoring and
40evaluation of cyber charter schools.

41(h) In developing the performance matrix and promulgating 
42the regulations required under subsection (a), the State Board 
43of Education shall convene and consult with a Statewide advisory 
44committee which shall consist of representatives of the 
45department and a minimum of seven (7) representatives from 
46charter schools, regional charter schools, cyber charter 
47schools, school district personnel and institutions of higher 
48education with experience in the oversight of charter schools. 
49Members of the committee shall be selected to be representative 
50of the urban, rural and suburban areas of this Commonwealth.

51(i) The Statewide advisory committee required to be convened

1under subsection (h) shall be convened not later than thirty
2(30) days after the effective date of this section and shall
3meet regularly to fulfill requirements of this paragraph.

4(j) The department shall distribute the performance matrix
5to all school districts and shall publish the matrix on the
6department's publicly accessible Internet website.

7Section 18. Section 1732-A of the act, amended June 29, 2002
8(P.L.524, No.88), is amended to read:

9Section 1732-A. Provisions Applicable to Charter Schools and 
10Regional Charter Schools.--(a) Charter schools and regional 
11charter schools shall be subject to the following:

12Sections 108, 110, 111, 321, 325, 326, 327, 431, 436, 443,
13510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753,
14[755,] 771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a),
151205.1, 1205.2, 1205.3, 1205.4, 1205.5, 1301, 1302, 1303, 1310,
161317, 1317.1, 1317.2, 1317.3, 1318, 1327, 1330, 1332, 1333,
171303-A, 1513, 1517, 1518, 1521, 1523, 1531, 1547, 2014-A,
18Article XIII-A and Article XIV.

19Act of July 19, 1957 (P.L.1017, No.451), known as the "State
20Adverse Interest Act."

21Act of July 17, 1961 (P.L.776, No.341), known as the
22"Pennsylvania Fair Educational Opportunities Act."

23Act of July 19, 1965 (P.L.215, No.116), entitled "An act
24providing for the use of eye protective devices by persons
25engaged in hazardous activities or exposed to known dangers in
26schools, colleges and universities."

27Section 4 of the act of January 25, 1966 (1965 P.L.1546,
28No.541), entitled "An act providing scholarships and providing
29funds to secure Federal funds for qualified students of the
30Commonwealth of Pennsylvania who need financial assistance to
31attend postsecondary institutions of higher learning, making an
32appropriation, and providing for the administration of this
33act."

34Act of July 12, 1972 (P.L.765, No.181), entitled "An act
35relating to drugs and alcohol and their abuse, providing for
36projects and programs and grants to educational agencies, other
37public or private agencies, institutions or organizations."

38Act of December 15, 1986 (P.L.1595, No.175), known as the
39"Antihazing Law."

4065 Pa.C.S. Ch. 7 (relating to open meetings).

4165 Pa.C.S. Ch. 11 (relating to ethics standards and financial
42disclosure).

43(b) Charter schools and regional charter schools shall be
44subject to the following provisions of 22 Pa. Code:

45[Section 5.216 (relating to ESOL).

46Section 5.4 (relating to general policies).]

47Chapter 4 (relating to academic standards and assessments).

48Chapter 11 (relating to pupil attendance).

49Chapter 12 (relating to students).

50Section 32.3 (relating to assurances).

51Section 121.3 (relating to discrimination prohibited).

1Section 235.4 (relating to practices).

2Section 235.8 (relating to civil rights).

3Chapter 711 (relating to charter school services and programs
4for children with disabilities).

5(c) (1) The secretary may promulgate additional regulations
6relating to charter schools and regional charter schools.

7(2) The secretary shall have the authority and the
8responsibility to ensure that charter schools and regional 
9charter schools comply with Federal laws and regulations
10governing children with disabilities. The secretary shall
11promulgate regulations to implement this provision.

12Section 19. The act is amended by adding a section to read:

13Section 1733-A. Effect on Existing Charter School
14Entities.--(a) Within one (1) year of the effective date of
15this section, a charter school entity established under section
161717-A, 1718-A or 1745-A prior to the effective date of this
17section shall amend the current charter through the amendment
18process under sections 1720-A(c) and 1745-A(f)(5) as needed to
19reflect the requirements of this article. Any renewal that takes
20effect after July 15, 2013, shall be for the term specified
21under sections 1720-A(a) and 1745-A(f)(3).

22(b) A charter school entity approved after the effective
23date of this section shall be in full compliance with this
24article.

25(c) Within sixty (60) days of the effective date of this
26section, each charter school entity shall demonstrate to the
27satisfaction of the local board of school directors or, in the
28case of a cyber charter school, to the satisfaction of the
29department that the charter school entity is in compliance with
30sections 1332 and 1333, including the institution of truancy
31proceedings when required under section 1333.

32Section 20. Sections 1741-A(c), 1742-A and 1743-A(e) of the 
33act, added June 29, 2002 (P.L.524, No.88), are amended to read:

34Section 1741-A. Powers and duties of department.

35* * *

36(c) Documents.--Documents of the appeal board shall be
37subject to [the act of June 21, 1957 (P.L.390, No.212), referred
38to as the Right-to-Know Law.] the act of February 14, 2008 
39(P.L.6, No.3), known as the Right-to-Know Law.

40Section 1742-A. Assessment and evaluation.

41The department shall:

42(1) Annually assess whether each cyber charter school is
43meeting the goals of its charter and is in compliance with
44the provisions of the charter and conduct a comprehensive
45review prior to granting a [five-year] renewal of the charter
46for the period specified in section 1745-A(f)(3).

47(2) Annually review each cyber charter school's
48performance on the Pennsylvania System of School Assessment
49test, standardized tests and other performance indicators to
50ensure compliance with 22 Pa. Code Ch. 4 (relating to
51academic standards and assessment) or subsequent regulations

1promulgated to replace 22 Pa. Code Ch. 4.

2(3) Have ongoing access to all records, instructional
3materials and student and staff records of each cyber charter
4school and to every cyber charter school facility to ensure
5the cyber charter school is in compliance with its charter
6and this subdivision.

7Section 1743-A. Cyber charter school requirements and
8prohibitions.

9* * *

10(e) Students.--For each student enrolled, a cyber charter
11school shall:

12(1) provide all instructional materials, which may 
13include electronic or digital books in place of textbooks;

14(2) provide all equipment, including, but not limited
15to, a computer, computer monitor and printer; and

16(3) provide or reimburse for all technology and services
17necessary for the on-line delivery of the curriculum and
18instruction.

19The Commonwealth shall not be liable for any reimbursement owed
20to students, parents or guardians by a cyber charter school
21under paragraph (3).

22* * *

23Section 21. Section 1745-A(c), (e) and (f) of the act, added
24June 29, 2002 (P.L.524, No.88), are amended and the section is
25amended by adding a subsection to read:

26Section 1745-A. Establishment of cyber charter school.

27* * *

28(b.1) Local board of school directors or intermediate
29unit.--

30(1) A cyber charter school may be established by a local
31board of school directors or an intermediate unit if the
32procedures and requirements of this article are satisfied.

33(2) Nothing in this article shall be construed to
34preclude a school district or an intermediate unit from
35offering instruction via the Internet or other electronic
36means, except that the instruction shall not be recognized as
37a cyber charter school under this article unless the school
38district or intermediate unit establishes a cyber charter
39school pursuant to subsections (a) and (b.1)(1).

40(c) Attendance.--Attendance at a cyber charter school shall
41satisfy requirements for compulsory attendance, subject to 
42penalties for violations of compulsory attendance requirements 
43under section 1333.

44* * *

45(e)  Grant or denial.--Within 120 days of receipt of an
46application, the department shall grant or deny the application.
47The department shall review the application and shall hold at
48least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
49open meetings). At least 30 days prior to the hearing, the
50department shall publish in the Pennsylvania Bulletin and on the
51department's [World Wide Web site] publicly accessible Internet
 

1website notice of the hearing and the purpose of the
2application.

3(f) Evaluation criteria.--

4(1) A cyber charter school application submitted under
5this subdivision shall be evaluated by the department based
6on the following criteria:

7(i) The demonstrated, sustainable support for the
8cyber charter school plan by teachers, parents [or],
9guardians and students.

10(ii) The capability of the cyber charter school
11applicant, in terms of support and planning, to provide
12comprehensive learning experiences to students under the
13charter.

14(iii) The extent to which the programs outlined in
15the application will enable students to meet the academic
16standards under 22 Pa. Code Ch. 4 (relating to academic
17standards and assessment) or subsequent regulations
18promulgated to replace 22 Pa. Code Ch. 4.

19(iv) The extent to which the application meets the
20requirements of section 1747-A.

21(v) The extent to which the cyber charter school may
22serve as a model for other public schools.

23(2) Written notice of the action of the department shall
24be sent by certified mail to the applicant and published on
25the department's [World Wide Web site] publicly accessible 
26Internet website. If the application is denied, the reasons
27for denial, including a description of deficiencies in the
28application, shall be clearly stated in the notice.

29(3) Upon approval of a cyber charter school application,
30a written charter shall be developed which shall contain the
31provisions of the charter application and be signed by the
32secretary and each member of the board of trustees of the
33cyber charter school. The charter, when duly signed, shall
34act as legal authorization of the establishment of a cyber
35charter school. The charter shall be legally binding on the
36department, the cyber charter school and its board of
37trustees. The charter [shall be for a period of no less than
38three years nor more than five years and may be renewed for a
39period of five years by the department.] term shall be as 
40follows:

41(i)  An initial charter granted pursuant to this
42section shall be for a period of five years.

43(ii)  Prior to the effective date of the regulations
44implementing the performance matrix as required pursuant
45to section 1731.1-A, a charter may be renewed for five-
46year periods upon reauthorization by the department.

47(iii)  Upon the effective date of the regulations
48implementing the performance matrix as required pursuant
49to section 1731.1-A, the following shall apply:

50(A)  For cyber charter schools that have
51satisfied the academic quality benchmark established

1by the State Board of Education pursuant to section
21731.1-A, a charter may be renewed for ten-year
3periods upon reauthorization by the department.

4(B)  For cyber charter schools that have not
5satisfied the academic quality benchmark established
6by the State Board of Education pursuant to section
71731.1-A, a charter may be renewed for five-year
8periods upon reauthorization by the department.

9(4) The decision of the department to deny an
10application may be appealed to the appeal board.

11(5) (i) A cyber charter school may request amendments
12to its approved written charter by filing with the department
13a written document describing the requested amendment.

14(ii) Within 20 days of its receipt of the request
15for an amendment, the department shall hold a public
16hearing on the requested amendment under 65 Pa.C.S. Ch. 7
17(relating to open meetings).

18(iii) Within 20 days after the hearing, the
19department shall grant or deny the requested amendment.
20Failure by the department to hold a public hearing and to
21grant or deny the amendments within the time period
22specified shall be deemed an approval.

23(iv) An applicant for an amendment shall have the
24right to appeal the denial of a requested amendment to
25the appeal board provided for under section 1721-A.

26* * *

27Section 22. Section 1749-A(a) of the act, added June 29,
282002 (P.L.524, No.88), is amended to read:

29Section 1749-A. Applicability of other provisions of this act
30and of other acts and regulations.

31(a) General requirements.--Cyber charter schools shall be
32subject to the following:

33(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
34436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 
35752, 753, [755,] 771, 776, 777, 808, 809, 810, 1109, 1111,
361112(a), 1205.1, 1205.2, 1205.3, 1205.5, 1301, 1302, 1303,
371310, 1317, 1317.2, 1318, 1327, 1330, 1332, 1333, 1303-A,
381513, 1517, 1518, 1521, 1523, 1525, 1531, 1547, 1602-B, 1613-
39B, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A, 1716.2-A, 1719-A,
401721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A, 1727-A,
411728-A(d), (e), (f), (g) and (h), 1729-A, 1729.1-A, 1730-A,
421731-A(a)(1) and (b), 1731.1-A, 1733-A and 2014-A and
43Articles [XII-A,] XIII-A and XIV.

44(1.1) The act of July 19, 1957 (P.L.1017, No.451), known
45as the State Adverse Interest Act.

46(2) The act of July 17, 1961 (P.L.776, No.341), known as
47the Pennsylvania Fair Educational Opportunities Act.

48(3) The act of July 19, 1965 (P.L.215, No.116), entitled
49"An act providing for the use of eye protective devices by
50persons engaged in hazardous activities or exposed to known
51dangers in schools, colleges and universities."

1(4) Section 4 of the act of January 25, 1966 (1965
2P.L.1546, No.541), entitled "An act providing scholarships
3and providing funds to secure Federal funds for qualified
4students of the Commonwealth of Pennsylvania who need
5financial assistance to attend postsecondary institutions of
6higher learning, making an appropriation, and providing for
7the administration of this act."

8(5) The act of July 12, 1972 (P.L.765, No.181) entitled
9"An act relating to drugs and alcohol and their abuse,
10providing for projects and programs and grants to educational
11agencies, other public or private agencies, institutions or
12organizations."

13(6) The act of December 15, 1986 (P.L.1595, No.175),
14known as the Antihazing Law.

15(7) 65 Pa.C.S. Ch. 7 (relating to open meetings).

16(8) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
17financial disclosure).

18* * *

19Section 23. This act shall take effect as follows:

20(1) The following provisions shall take effect
21immediately:

22(i) The addition of section 1733-A of the act.

23(ii) This section.

24(2) The addition of section 1729.2-A of the act shall
25take effect upon the effective date of regulations
26implementing the performance matrix required under section
271731.1-A of the act.

28(3) The remainder of this act shall take effect in 60
29days.