See other bills
under the
same topic
        PRIOR PRINTER'S NOS. 701, 2218                PRINTER'S NO. 2564

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 628 Session of 2005


                     Report of the Committee of Conference

        To the Members of the House of Representatives and Senate:

           We, the undersigned, Committee of Conference on the part of
        the House of Representatives and Senate for the purpose of
        considering House Bill No. 628, entitled:
        "An act amending the act of March 10, 1949 (P.L.30, No.14),
        entitled 'An act relating to the public school system, including
        certain provisions applicable as well to private and parochial
        schools; amending, revising, consolidating and changing the laws
        relating thereto,' further providing for annual budget;
        prescribing a penalty; and making an editorial change,"



        respectfully submit the following bill as our report:

                                           JESS M. STAIRS

                                           MICHAEL DIVEN

                                           MICHAEL F. GERBER

                (Committee on the part of the House of Representatives.)

                                           JAMES J. RHOADES

                                           DAVID J. BRIGHTBILL

                                           RAPHAEL J. MUSTO

                                  (Committee on the part of the Senate.)


                    ***This page intentionally left blank***





















    20050H0628B2564                  - 2 -     

                                     AN ACT
     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing, in school
     6     finances, for annual budget, and in teacher certification,
     7     for program of continuing professional development; providing
     8     for, in teacher certification, evaluation of applicants;
     9     further providing, in pupils and attendance, for fixing the
    10     cost of certain tuition, for cost of tuition and maintenance
    11     of certain exceptional children in approved institutions and
    12     in chartered schools for the education of the deaf and the
    13     blind; further providing for educational assistance program
    14     and educational support services, for definitions, for
    15     notification and for the program; further providing, in Head
    16     Start supplemental assistance, for definitions, for the
    17     program and for priority in funding; providing for
    18     opportunities for educational excellence through concurrent
    19     enrollment; further providing, in education empowerment, for
    20     education empowerment districts and for mandate waiver
    21     program, and, in community colleges, for definitions, for
    22     financial program and for payment reimbursement; providing,
    23     in community colleges, for establishment of the Community
    24     College Capital Fund and for annual reports; further
    25     providing, in the State System of Higher Education, for
    26     annual audits and, in educational improvement tax credit, for
    27     qualification and application and for limitations on amount
    28     of tax credits; further providing, in school district
    29     reimbursement, for definitions, for small district assistance
    30     and for temporary special aid; providing for basic education
    31     funding for 2004-2005 school year; further providing for
    32     payments on account of limited English proficiency programs,
    33     for payments to intermediate units and for special education
    34     payments; providing, in school district reimbursement, for
    35     effect of failure to file certain reports; further providing,
    36     in school district reimbursement, for approved reimbursable
    37     rental for leases and sinking fund and for Pennsylvania
    38     Accountability Grants; and making an inconsistent repeal
    39     relating to the Workforce Development Act.

    40     The General Assembly of the Commonwealth of Pennsylvania
    41  hereby enacts as follows:
    42     Section 1.  Section 687(a) and (j) of the act of March 10,
    43  1949 (P.L.30, No.14), known as the Public School Code of 1949,
    44  amended July 4, 2004 (P.L.536, No.70), are amended to read:
    45     Section 687.  Annual Budget; Additional or Increased
    46  Appropriations; Transfer of Funds.--(a)  (1)  The board of
    47  school directors of each school district of the second, third,
    48  or fourth class shall, annually, at least thirty (30) days prior

    20050H0628B2564                  - 3 -     

     1  to the adoption of the annual budget, prepare a proposed budget
     2  of the amount of funds that will be required by the school
     3  district in its several departments for the following fiscal
     4  year. Such proposed budget shall be prepared on a uniform form,
     5  prepared and furnished by the Department of [Public Instruction,
     6  and shall be apportioned to the several classes of expenditures
     7  of the district as the board of school directors thereof may
     8  determine.] Education. The uniform form shall require
     9  identification of specific function, subfunction and major
    10  object of expenditure. On the date of adoption of the proposed
    11  budget required under this section, the president of the board
    12  of school directors shall certify to the Department of Education
    13  that the proposed budget has been prepared, presented and will
    14  be made available for public inspection using the uniform form
    15  prepared and furnished by the Department of Education. The
    16  certification shall be in a form and manner as required by the
    17  Department of Education. Final action shall not be taken on any
    18  proposed budget that has not been prepared, presented and made
    19  available for public inspection using the uniform form prepared
    20  and furnished by the Department of Education. Final action shall
    21  not be taken on any proposed budget[,] in which the estimated
    22  expenditures exceed two thousand dollars ($2000)[,] until after
    23  ten (10) days' public notice. Nothing in this act shall be
    24  construed to prevent any school district[,] whose total
    25  estimated expenditures do not exceed two thousand dollars
    26  ($2000)[,] from holding a public hearing.
    27     (2)  (i)  The proposed budget, on the uniform form required
    28  by the Department of Education, shall be printed[,] or otherwise
    29  made available for public inspection to all persons [who may
    30  interest themselves,] and shall be made available for
    20050H0628B2564                  - 4 -     

     1  duplication to any person, on request, at least twenty (20) days
     2  prior to the date set for the adoption of the budget.
     3     (ii)  Fees for duplication under this paragraph by
     4  photocopying, printing from electronic media or microfilm,
     5  copying onto electronic media, transmission by facsimile or
     6  other electronic means and other means of duplication must be
     7  reasonable and based on prevailing fees for comparable
     8  duplication services provided by local business entities.
     9     * * *
    10     (j)  Notwithstanding any other provisions of this act, the
    11  board of school directors of each school district may reopen its
    12  2003-2004 budget [or], its 2004-2005 budget or its 2005-2006
    13  budget to reflect any State allocations for fiscal year 2003-
    14  2004 [or], fiscal year 2004-2005 or fiscal year 2005-2006
    15  provided by the General Assembly through this act.
    16     Section 2.  Section 1205.2(a), (h) and (o) of the act, added
    17  November 23, 1999 (P.L.529, No.48), are amended and the section
    18  is amended by adding subsections to read:
    19     Section 1205.2.  Program of Continuing Professional
    20  Education.--(a)  A continuing professional education program is
    21  hereby established for professional educators, the satisfactory
    22  completion of which is required to maintain active
    23  certification. [The] Except as provided in subsection (j.1), the
    24  continuing professional education program shall require the
    25  satisfactory completion of continuing professional education
    26  every five (5) years, which shall include:
    27     (1)  six (6) credits of collegiate study;
    28     (2)  six (6) credits of continuing professional education
    29  courses;
    30     (3)  one hundred eighty (180) hours of continuing
    20050H0628B2564                  - 5 -     

     1  professional education programs, activities or learning
     2  experiences; or
     3     (4)  any combination of collegiate studies, continuing
     4  professional education courses, or other programs, activities or
     5  learning experiences equivalent to one hundred eighty (180)
     6  hours.
     7     * * *
     8     (h)  The department shall provide the following information
     9  to professional educators and school entities:
    10     (1)  Notice of the number of credits or hours needed for a
    11  professional educator to comply with this section, as of the
    12  date on which such notice is given. Such notice shall be
    13  provided no later twelve (12) months prior to the end of a
    14  professional educator's five-year compliance period. For
    15  professional educators who have not completed sufficient credits
    16  or hours to comply with this section, such notice shall be
    17  provided in writing and mailed to the most recent address on
    18  record with the department. For professional educators who have
    19  completed sufficient credits or hours to comply with this
    20  section, such notice shall be provided by electronic means,
    21  which shall include a notation on the electronic system
    22  maintained by the department pursuant to subsection (g)
    23  affirming that the professional educator has completed
    24  sufficient credits or hours to comply with this section.
    25     (2)  Reasonable access to reports and records relating to a
    26  professional educator's continuing professional education.
    27     (3)  Notice of inactive certification requested by a
    28  professional educator.
    29     (4)  Notice of inactive certification due to failure of the
    30  professional educator to meet the requirements of this section,
    20050H0628B2564                  - 6 -     

     1  whether or not the individual is employed by a school entity.
     2     (5)  Notice of reinstatement.
     3     (h.1)  Whenever a professional educator moves from the
     4  address named in the application for State certification or from
     5  the professional educator's current address, such professional
     6  educator shall notify the department and provide the department
     7  with the most current address. Notification shall be made in a
     8  form and manner determined by the department.
     9     * * *
    10     (j.1)  (1)  The continuing professional education program
    11  shall require satisfactory completion of continuing professional
    12  education by April 30, 2006, for a professional educator who:
    13     (i)  was certified prior to May 1, 2001;
    14     (ii)  was not provided written notice as required under
    15  subsection (h)(1); and
    16     (iii)  has not satisfactorily completed continuing
    17  professional education as required under subsection (a).
    18     (2)  After a professional educator to whom this subsection
    19  applies completes the credits or hours needed to satisfy the
    20  requirements of the initial compliance period, any record of
    21  additional credits or hours shall be credited toward the
    22  subsequent compliance period: Provided, That credits or hours
    23  credited to a professional educator as a result of the
    24  satisfactory completion of an individual course of collegiate
    25  studies, an individual continuing professional education course,
    26  or an individual program, activity or learning experience shall
    27  not be divided between the initial compliance period and the
    28  subsequent compliance period but shall be credited toward only
    29  one compliance period.
    30     (3)  Nothing in this subsection shall be construed to delay
    20050H0628B2564                  - 7 -     

     1  or extend the initial or subsequent compliance periods for a
     2  professional educator to whom this subsection applies.
     3     (4)  This subsection shall expire May 1, 2006.
     4     (j.2)  (1)  Notwithstanding the provisions of subsection
     5  (h)(1), the department shall provide a professional educator to
     6  whom subsection (j.1) applies with written notice of the number
     7  of credits or hours needed for the professional educator to
     8  comply with this section as of the date on which such notice is
     9  given. Such notice shall be provided immediately and shall be
    10  mailed to the most recent address on record with the department.
    11     (2)  This subsection shall expire May 1, 2006.
    12     * * *
    13     (o)  Definitions.--As used in this section, the following
    14  words and phrases shall have the meanings given to them in this
    15  subsection:
    16     "Approved provider" is an institution of higher education,
    17  school entity, individual, corporation, partnership, limited
    18  liability company or association approved by the department to
    19  provide continuing professional education credits or hours under
    20  this section. Provided, a school entity may approve a provider
    21  of continuing professional education credits or hours in
    22  accordance with department guidelines.
    23     "Area of a professional educator's assignment or
    24  certification" shall mean any component of the education
    25  profession as it relates to the current job title or description
    26  of the professional educator or to any area of certification
    27  listed on the professional employe's Pennsylvania certification
    28  or to the type of certificate or endorsement held by the
    29  professional educator.
    30     "Collegiate studies" shall mean a formal program or course of
    20050H0628B2564                  - 8 -     

     1  study at an institution of higher education leading to the award
     2  of academic credit.
     3     "Compliance period" shall mean the period of time in which a
     4  professional educator must satisfactorily complete continuing
     5  professional education as required under subsection (a) and
     6  which concludes every five years beginning:
     7     (1)  July 1, 2000, for those professional educators who were
     8  issued a State certificate prior to July 1, 2000; or
     9     (2)  on the date on which the professional educator is issued
    10  a State certificate for those professional educators who were
    11  certified after July 1, 2000.
    12     "Continuing professional education courses" shall mean
    13  courses for credit, other than collegiate studies, conducted by
    14  providers approved by the department.
    15     "Professional educator" shall mean an individual who holds a
    16  Pennsylvania teacher, educational specialist or administrative
    17  certification or letter of eligibility.
    18     "School entity" shall mean a school district, an intermediate
    19  unit, a joint school district, an area vocational-technical
    20  school, a charter school, the Scotland School for Veterans'
    21  Children and the Scranton School for the Deaf or any of these
    22  acting jointly.
    23     Section 3.  The act is amended by adding a section to read:
    24     Section 1216.  Evaluation of Applications for
    25  Certification.--(a)  All applications for certification shall be
    26  evaluated in their entirety. The Department of Education shall
    27  notify the applicant if the application is incomplete and
    28  include a listing of all materials or information needed to
    29  complete the application. The applicant's pending application
    30  shall remain open for one year following the date of such
    20050H0628B2564                  - 9 -     

     1  notification. No letter of denial of certification shall be
     2  issued unless all deficiencies in the application are stated in
     3  the letter of denial.
     4     (b)  The grade point average used by the department in
     5  evaluating the grade point average requirements for
     6  certification pursuant to 22 Pa.Code § 354.24 (relating to
     7  academic performance) shall be as follows:
     8     (1)  For applicants whose initial preparation culminated in a
     9  bachelor's degree or higher prior to October 7, 2000, the grade
    10  point average in effect on the date of application for
    11  certification.
    12     (2)  For applicants whose initial preparation culminates in a
    13  bachelor's degree or higher on or after October 7, 2000, the
    14  grade point average in effect on the date of graduation.
    15     Section 4.  Section 1309(b) of the act, amended June 30, 1995
    16  (P.L.220, No.26), is amended to read:
    17     Section 1309.  Cost of Tuition; How Fixed.--* * *
    18     (b)  [The] For students who the Secretary of Education has
    19  determined are legal residents of Pennsylvania without fixed
    20  districts of residence, the tuition herein provided for shall be
    21  paid annually by the Secretary of Education[,]. For all other
    22  students, the tuition herein provided shall be paid by the
    23  district of residence or the institution as the case may be[.],
    24  within thirty (30) days of its receipt of an invoice from the
    25  district in which the institution is located.
    26     Section 5.  Sections 1376(c.2) and 1376.1(f) of the act,
    27  amended July 4, 2004 (P.L.536, No.70), are amended and the
    28  sections are amended by adding subsections to read:
    29     Section 1376.  Cost of Tuition and Maintenance of Certain
    30  Exceptional Children in Approved Institutions.--* * *
    20050H0628B2564                 - 10 -     

     1     (c.2)  [Beginning with payments made in the 2004-2005 school
     2  year and each school year thereafter, the Department of
     3  Education shall establish procedures and audit standards to
     4  govern the scope of reportable costs, the format of the audit
     5  and the standards and methods used by the Commonwealth to audit
     6  attendance. Each approved private school shall submit a cost
     7  report of its expenditures for the prior fiscal year to the
     8  Department of Education no later than August 1, 2004, and no
     9  later than August 1 of each year thereafter. Audit reports of
    10  expenditures for the prior fiscal year prepared by an
    11  independent certified public accountant shall be prepared in
    12  accordance with the established procedures and audit standards
    13  and submitted by the approved private school to the Department
    14  of Education by November 1, 2005, and no later than November 1
    15  of each year thereafter. For payments in the 2004-2005 school
    16  year, the Department of Education shall issue guidelines for
    17  budget and audit standards no later than October 15, 2004. For
    18  payments in the 2005-2006 school year and each school year
    19  thereafter, the Department of Education shall annually issue
    20  guidelines for budget and audit standards at least three (3)
    21  months prior to the date that the approved private schools must
    22  submit their budget information pursuant to subsection (c.4).
    23  These guidelines shall include provisions for audit methodology
    24  and a definition of allowable administrative expenditures.
    25  Allowable administrative expenditures shall not exceed ten
    26  percent (10%) of each approved private school's budget. Each
    27  audit shall identify expenditures and include all spending on
    28  students for whom payment is made pursuant to subsection (a) or
    29  (b) and shall identify the source and amount of all revenue used
    30  to educate students for whom payment is made pursuant to
    20050H0628B2564                 - 11 -     

     1  subsection (a) or (b). Work papers pertaining to the audit of an
     2  approved private school by an independent certified public
     3  accountant shall be made available to the Department of
     4  Education upon request. Audits of cost reports submitted for
     5  school years prior to the 2004-2005 school year shall be
     6  completed in a manner consistent with prior audit practices. An
     7  approved private school may submit an audit for the 2003-2004
     8  school year prepared by an independent certified public
     9  accountant provided the following have occurred:
    10     (1)  The Department of Education has failed to process and
    11  settle the cost reports within twelve (12) months from
    12  submission by the approved private school.
    13     (2)  The Department of Education has failed to settle any
    14  appeals or postsettlement resolution within fifteen (15) months
    15  from submission by the approved private school.
    16     (3)  The approved private school has responded to reasonable
    17  requests for information and documents by the Department of
    18  Education.
    19  Upon receipt of the independent audit for the 2003-2004 school
    20  year, the Department of Education shall have three (3) months to
    21  review the audit and settle any outstanding payments due to or
    22  from the approved private school.]
    23     (4)  Beginning with the 2004-2005 school year and each school
    24  year thereafter, each approved private school shall maintain an
    25  accounting and bookkeeping system and be subject to audit as
    26  provided in standards promulgated by the Department of
    27  Education. Such standards shall require that each approved
    28  private school submit an audit to the Department of Education by
    29  November 1 of each year. Such audit shall be conducted in
    30  accordance with generally accepted accounting standards by an
    20050H0628B2564                 - 12 -     

     1  independent certified public accountant. Such standards shall
     2  include a definition of administrative costs, which costs shall
     3  not exceed ten percent (10%) of each approved private school's
     4  total costs.
     5     (5)  (i)  Where the amount of an approved private school's
     6  reportable costs in the 2004-2005 fiscal year is less than the
     7  amount of revenues received by the approved private school for
     8  the 2004-2005 fiscal year from the Commonwealth for the
     9  provision of educational services to children who have been
    10  approved by the Department of Education, the difference may be
    11  retained by the approved private school for use in the 2005-2006
    12  fiscal year.
    13     (ii)  Beginning in the 2005-2006 fiscal year, where the
    14  amount of reportable costs in a fiscal year is less than the
    15  amount of revenues received in that fiscal year by the approved
    16  private school from the Commonwealth for the provision of
    17  educational services to children who have been approved by the
    18  Department of Education, the approved private school shall remit
    19  the difference to the Commonwealth. Any such funds shall be
    20  deposited in the Audit Resolution Fund for the resolution of
    21  previous audits.
    22     (6)  Audits of cost reports submitted for school years prior
    23  to the 2004-2005 school year shall be completed in a manner
    24  consistent with prior audit practices. An approved private
    25  school may submit an audit for the 2003-2004 school year
    26  prepared by an independent certified public accountant provided
    27  the following have occurred:
    28     (i)  The Department of Education has failed to process and
    29  settle the cost reports within twelve (12) months from
    30  submission by the approved private school.
    20050H0628B2564                 - 13 -     

     1     (ii)  The Department of Education has failed to settle any
     2  appeals or postsettlement resolution within fifteen (15) months
     3  from submission by the approved private school.
     4     (iii)  The approved private school has responded to
     5  reasonable requests for information and documents by the
     6  Department of Education.
     7  Upon receipt of the independent audit for the 2003-2004 school
     8  year, the Department of Education shall have three (3) months to
     9  review the audit and settle any outstanding payments due to or
    10  from the approved private school.
    11     * * *
    12     (c.8)  Within sixty (60) days of the effective date of this
    13  subsection, the Department of Education shall promulgate interim
    14  standards necessary to implement subsection (c.2) which shall be
    15  published in the Pennsylvania Bulletin. The interim standards
    16  shall not be subject to review pursuant to the act of June 25,
    17  1982 (P.L.633, No.181), known as the "Regulatory Review Act,"
    18  and shall not be subject to sections 201 through 205 of the act
    19  of July 31, 1968 (P.L.769, No.240), referred to as the
    20  Commonwealth Documents Law. The interim standards shall apply to
    21  audits conducted after July 1, 2005. Within one year of
    22  publication of the interim standards in the Pennsylvania
    23  Bulletin, the Department of Education shall deposit proposed
    24  standards. The interim standards shall remain in effect until
    25  the effective date of the final standards.
    26     * * *
    27     Section 1376.1.  Actual Cost of Tuition and Maintenance of
    28  Certain Exceptional Children in the Four Chartered Schools for
    29  Education of the Deaf and the Blind.--* * *
    30     (f)  [Beginning with payments made in the 2004-2005 school
    20050H0628B2564                 - 14 -     

     1  year and each school year thereafter, the department shall
     2  establish procedures and audit standards to govern the scope of
     3  reportable costs, the format of the audit and the standards and
     4  methods used by the Commonwealth to audit attendance. Each
     5  chartered school shall submit a cost report of its expenditures
     6  for the prior fiscal year to the department no later than August
     7  1, 2004, and each August 1 thereafter. Audit reports of
     8  expenditures for the prior fiscal year prepared by an
     9  independent certified public accountant shall be prepared in
    10  accordance with established procedures and audit standards and
    11  submitted by the chartered school to the department by November
    12  1, 2005, and no later than November 1 of each year thereafter.
    13  For payments in the 2004-2005 school year, the department shall
    14  issue guidelines for budget and audit standards no later than
    15  October 15, 2004. For payments in the 2005-2006 school year and
    16  each school year thereafter, the department shall annually issue
    17  guidelines for budget and audit standards at least three (3)
    18  months prior to the date that the chartered schools must submit
    19  their budget information pursuant to subsection (f.2). The
    20  guidelines shall include provisions for audit methodology and a
    21  definition of allowable administrative expenditures. Allowable
    22  administrative expenditures shall not exceed ten percent (10%)
    23  of each chartered school's budget. Each audit shall identify
    24  expenditures, shall include all spending on students for whom
    25  payment is made pursuant to subsection (b) or (c) and shall
    26  identify the source and amount of all revenue used to educate
    27  students for whom payment is made pursuant to subsection (b) or
    28  (c). Work papers pertaining to the audit of a chartered school
    29  by an independent certified public accountant shall be made
    30  available to the department upon request. Audits of cost reports
    20050H0628B2564                 - 15 -     

     1  submitted for school years prior to the 2004-2005 school year
     2  shall be completed in a manner consistent with prior audit
     3  practices. A chartered school may submit an audit for the 2003-
     4  2004 school year prepared by an independent certified public
     5  accountant provided the following have occurred:
     6     (1)  The department has failed to process and settle the cost
     7  reports within twelve (12) months from submission by the
     8  chartered school.
     9     (2)  The department has failed to settle any appeals or
    10  postsettlement resolution within fifteen (15) months from
    11  submission by the chartered school.
    12     (3)  The chartered school has responded to reasonable
    13  requests for information and documents by the department.
    14  Upon receipt of the independent audit for the 2003-2004 school
    15  year, the department shall have three (3) months to review the
    16  audit and settle any outstanding payments due to or from the
    17  chartered school.]
    18     (4)  Beginning with the 2004-2005 school year and each school
    19  year thereafter, each chartered school shall maintain an
    20  accounting and bookkeeping system and be subject to audit as
    21  provided in standards promulgated by the Department of
    22  Education. Such standards shall require that each chartered
    23  school submit an audit to the department by November 1 of each
    24  year. Such audit shall be conducted in accordance with generally
    25  accepted accounting standards by an independent certified public
    26  accountant. Such standards shall include a definition of
    27  administrative costs, which costs shall not exceed ten percent
    28  (10%) of each approved chartered school's total costs.
    29     (5)  (i)  Where the amount of a chartered school's reportable
    30  costs in the 2004-2005 fiscal year is less than the amount of
    20050H0628B2564                 - 16 -     

     1  revenues received by the chartered school for the 2004-2005
     2  fiscal year from the Commonwealth for the provision of
     3  educational services to children who have been approved by the
     4  Department of Education, the difference may be retained by the
     5  chartered school for use in the 2005-2006 fiscal year.
     6     (ii)  Beginning in the 2005-2006 fiscal year, where the
     7  amount of reportable costs in a fiscal year is less than the
     8  amount of revenues received in that fiscal year by the chartered
     9  school from the Commonwealth for the provision of educational
    10  services to children who have been approved by the Department of
    11  Education, the chartered school shall remit the difference to
    12  the Commonwealth. Any such funds shall be deposited in the Audit
    13  Resolution Fund for the resolution of previous audits.
    14     (6)  Audits of cost reports submitted for school years prior
    15  to the 2004-2005 school year shall be completed in a manner
    16  consistent with prior audit practices. A chartered school may
    17  submit an audit for the 2003-2004 school year prepared by an
    18  independent certified public accountant provided the following
    19  have occurred:
    20     (i)  The Department of Education has failed to process and
    21  settle the cost reports within twelve (12) months from
    22  submission by the chartered school.
    23     (ii)  The Department of Education has failed to settle any
    24  appeals or postsettlement resolution within fifteen (15) months
    25  from submission by the chartered school.
    26     (iii)  The chartered school has responded to reasonable
    27  requests for information and documents by the Department of
    28  Education.
    29  Upon receipt of the independent audit for the 2003-2004 school
    30  year, the Department of Education shall have three (3) months to
    20050H0628B2564                 - 17 -     

     1  review the audit and settle any outstanding payments due to or
     2  from the chartered school.
     3     * * *
     4     (f.5)  Within sixty (60) days of the effective date of this
     5  subsection, the Department of Education shall promulgate interim
     6  standards necessary to implement subsection (f) which shall be
     7  published in the Pennsylvania Bulletin. The interim standards
     8  shall not be subject to review pursuant to the act of June 25,
     9  1982 (P.L.633, No.181), known as the "Regulatory Review Act,"
    10  and shall not be subject to sections 201 through 205 of the act
    11  of July 31, 1968 (P.L.769, No.240), referred to as the
    12  Commonwealth Documents Law. The interim standards shall apply to
    13  audits conducted after July 1, 2005. Within one year of
    14  publication of the interim standards in the Pennsylvania
    15  Bulletin, the Department of Education shall deposit proposed
    16  standards. The interim standards shall remain in effect until
    17  the effective date of the final standards.
    18     * * *
    19     Section 6.  The definition of "eligible student" in section
    20  1501-C of the act, amended December 23, 2003 (P.L.304, No.48),
    21  is amended and the section is amended by adding definitions to
    22  read:
    23  Section 1501-C.  Definitions.
    24     The following words and phrases when used in this article
    25  shall have the meanings given to them in this section unless the
    26  context clearly indicates otherwise:
    27     "2005 mathematics proficiency target."  Forty-five percent of
    28  students in a school entity scoring at a level equal to or above
    29  proficient on the PSSA test in mathematics administered to
    30  students in a school with an eleventh grade in the 2003-2004
    20050H0628B2564                 - 18 -     

     1  school year.
     2     "2005 reading proficiency target."  Fifty-four percent of
     3  students in a school entity scoring at a level equal to or above
     4  proficient on the PSSA test in reading administered to students
     5  in a school with an eleventh grade in the 2003-2004 school year.
     6     * * *
     7     "Eligible student."  A resident of this Commonwealth who is
     8  enrolled full time in kindergarten through [ninth] twelfth grade
     9  in a school entity and is deemed eligible pursuant to section
    10  1502-C(b) or section 1512-C(b).
    11     * * *
    12     Section 7.  Section 1506-C of the act, amended December 23,
    13  2003 (P.L.304, No.48), is amended to read:
    14  Section 1506-C.  Notification of program.
    15     A school entity in this Commonwealth shall notify parents of
    16  the availability of education support services and tutoring
    17  under the educational assistance program at such time as the
    18  parents receive the results of any eligibility test[.] or
    19  whenever the school entity recommends tutoring under the
    20  educational assistance program.
    21     Section 8.  Section 1512-C(b), (e), (g) and (h.1) of the act,
    22  amended or added December 23, 2003 (P.L.304, No.48) and July 4,
    23  2004 (P.L.536, No.70), are amended to read:
    24  Section 1512-C.  Educational Assistance Program.
    25     * * *
    26     (b)  Eligibility.--A student shall be eligible for tutoring
    27  services under this section where such student is enrolled full
    28  time in an eligible school entity and:
    29         (1)  scored below proficient on a Pennsylvania System of
    30     School Assessment test in a subject area required under the
    20050H0628B2564                 - 19 -     

     1     No Child Left Behind Act of 2001 [in the immediate preceding
     2     school year]; or
     3         (2)  is enrolled in kindergarten through third grade and
     4     scored below the score approved by the department under
     5     section 1502-C(b) on any other eligibility test[.]; or
     6         (3)  has been recommended for tutoring by the school
     7     entity.
     8     * * *
     9     (e)  Tutoring services.--Tutoring services provided under
    10  this section shall include intensive instruction in those
    11  subject areas assessed through a Pennsylvania System of School
    12  Assessment test and required under the No Child Left Behind Act
    13  of 2001. Such tutoring services may:
    14         (1)  Notwithstanding the provisions of section 1502, be
    15     provided outside of the normal school day and hours of the
    16     school entity, including mornings, evenings, weekends and
    17     during the summer months.
    18         (2)  Take place on an individual or small group basis,
    19     provided that tutoring services may be provided to no more
    20     than ten students in a given class at a given time during the
    21     school term and no more than 15 students during the summer
    22     months.
    23         (3)  Be provided during the normal school day and hours
    24     of the school entity, provided that the tutoring is in
    25     addition to and does not interfere with an eligible student's
    26     regularly scheduled classroom instruction times and does not
    27     supplant services required in a student's individualized
    28     education program.
    29     * * *
    30     (g)  Educational assistance funding.--
    20050H0628B2564                 - 20 -     

     1         (1)  During the 2003-2004 [and], 2004-2005 and 2005-2006
     2     school years, the department shall provide each eligible
     3     school entity with educational assistance funding calculated
     4     by:
     5             (i)  Dividing the number of Pennsylvania System of
     6         School Assessment tests administered in the eligible
     7         school entity on which students scored below proficient
     8         in reading or mathematics by the total number of
     9         Pennsylvania System of School Assessment tests
    10         administered in the eligible school entity in reading and
    11         mathematics during the 2002-2003 school year.
    12             (ii)  Multiplying the quotient from subparagraph (i)
    13         by the average daily membership of the eligible school
    14         entity during the 2002-2003 school year.
    15             (iii)  Multiplying the product from subparagraph (ii)
    16         by the dollar value of funds appropriated to the
    17         Department of Education for the Educational Assistance
    18         Program in the 2004-2005 fiscal year.
    19             (iv)  Dividing the product from subparagraph (iii) by
    20         the sum of the products of subparagraph (ii) for all
    21         eligible school entities that qualify for grant funds
    22         under this [subsection] paragraph.
    23         (1.1)  During the 2005-2006 school year, the department
    24     shall provide each school entity with at least one school
    25     that has failed to achieve its 2005 mathematics proficiency
    26     target or its 2005 reading proficiency target with
    27     educational assistance funding for the support of tutoring
    28     services to eligible students enrolled in seventh through
    29     twelfth grade. Such funding shall be calculated as follows:
    30             (i)  Dividing the number of Pennsylvania System of
    20050H0628B2564                 - 21 -     

     1         School Assessment tests administered in the eligible
     2         school entity to eleventh grade students on which such
     3         students scored below the 2005 reading or mathematics
     4         proficiency target by the total number of Pennsylvania
     5         System of School Assessment tests administered in the
     6         eligible school entity to eleventh grade students in
     7         reading and mathematics during the 2003-2004 school year.
     8             (ii)  Multiplying the quotient from subparagraph (i)
     9         by the average daily membership of the eligible school
    10         entity during the 2004-2005 school year.
    11             (iii)  Multiplying the product from subparagraph (ii)
    12         by the difference between the dollar value of funds
    13         appropriated to the department for the educational
    14         assistance program in the 2004-2005 fiscal year and the
    15         dollar value of funds appropriated to the department for
    16         the educational assistance program in the 2005-2006
    17         fiscal year.
    18             (iv)  Dividing the product from subparagraph (iii) by
    19         the sum of the products of subparagraph (ii) for all
    20         eligible school entities that qualify for grant funds
    21         under this paragraph.
    22         (2)  The amount of educational assistance funding
    23     provided under this article shall be limited to funds
    24     appropriated for this purpose.
    25     * * *
    26     (h.1)  Redistribution of funds.--For the 2004-2005 school
    27  year and each school year thereafter, an eligible school entity
    28  that chooses not to receive educational assistance funding under
    29  subsection (g) shall forfeit the right to such funds. Such funds
    30  shall then be distributed on a pro rata basis among all other
    20050H0628B2564                 - 22 -     

     1  eligible school entities choosing to receive educational
     2  assistance funding under subsection (g).
     3     * * *
     4     Section 9.  Section 1501-D of the act is amended by adding a
     5  definition to read:
     6  Section 1501-D.  Definitions.
     7     The following words and phrases when used in this article
     8  shall have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     * * *
    11     "School entity."  A school district, joint school district,
    12  independent school or an intermediate unit.
    13     Section 10.  Sections 1502-D(b) and (d) and 1503-D of the
    14  act, added December 23, 2003 (P.L.304, No.48), are amended to
    15  read:
    16  Section 1502-D.  Head Start Supplemental Assistance Program.
    17     * * *
    18     (b)  Administration.--The department shall administer the
    19  program, consistent with Federal Head Start guidelines. [During
    20  the 2004-2005 fiscal year, the] The department shall provide
    21  supplemental financial assistance to existing providers of
    22  Federal Head Start services.
    23     * * *
    24     (d)  Criteria for funding.--To implement the program, the
    25  department shall request proposals from existing Head Start
    26  providers and may award grants or enter into service contracts
    27  with existing Head Start providers that meet all of the
    28  following criteria:
    29         (1)  Demonstrate the need for additional Head Start
    30     services in the provider's service area, whether the need is
    20050H0628B2564                 - 23 -     

     1     determined by the percentage of eligible children who are not
     2     served in the provider's service area or by the demand for
     3     extended day services.
     4         (2)  Demonstrate the ability to expand staff, space or
     5     services [either] to serve additional children or to provide
     6     extended day services:
     7             (i)  within the Head Start program; [or]
     8             (ii)  in cooperation with licensed child-care centers
     9         or registered family or group day-care homes;
    10     [to serve additional children or to provide extended day
    11     services.] or
    12             (iii)  in cooperation with school entities.
    13         (3)  Demonstrate the ability to comply with Federal and
    14     State requirements for child-care service providers if the
    15     Head Start provider intends to provide extended day services.
    16         (4)  Demonstrate the ability to enter into a
    17     collaborative agreement with a [child-care service provider
    18     if the Head Start provider intends to enter into a
    19     collaborative agreement with a licensed child-care center or
    20     a registered family or group day-care home to offer extended
    21     day services.] school entity, a licensed child-care center or
    22     a group day-care home, or a registered family day-care home,
    23     if the head start provider intends to enter into a
    24     collaborative agreement.
    25  Section 1503-D.  Priority in funding.
    26     [The] (a)  General rule.--A Head Start provider that received
    27  a grant in the prior fiscal year shall be eligible to receive a
    28  grant in an amount equal to the grant received in the
    29  immediately preceding fiscal year, less any start-up costs. If
    30  by March 1 the Head Start provider did not enroll at least 90%
    20050H0628B2564                 - 24 -     

     1  of the number of children it was approved to serve for that
     2  year, then the grant shall be reduced proportionally based on
     3  the number of children enrolled as of March 1.
     4     (b)  Priority for remaining funding.--For the remaining
     5  funds, the department shall give priority in funding to Head
     6  Start providers applying for grants to serve additional eligible
     7  children.
     8     Section 11.  The act of March 10, 1949 (P.L.30, No.14), known
     9  as the Public School Code of 1949, is amended by adding an
    10  article to read:
    11                           ARTICLE XVI-B
    12                   OPPORTUNITIES FOR EDUCATIONAL
    13                             EXCELLENCE
    14                    (a)  Preliminary Provisions.
    15  Section 1601-B.  Scope of article.
    16     This article deals with concurrent enrollment.
    17  Section 1602-B.  Definitions.
    18     The following words and phrases when used in this article
    19  shall have the meanings given to them in this section unless the
    20  context clearly indicates otherwise:
    21     "Allowable tuition."  The portion of tuition charged to a
    22  school entity that is eligible for grant funding under this
    23  article, which funding does not exceed:
    24         (1)  for any two-year postsecondary institution or
    25     eligible private licensed school, the advertised tuition rate
    26     charged by the institution for enrolled postsecondary
    27     students;
    28         (2)  for any four-year public or private postsecondary
    29     institution or eligible private licensed school, the tuition
    30     rate charged by the State System of Higher Education for
    20050H0628B2564                 - 25 -     

     1     enrolled postsecondary students;
     2         (3)  for any postsecondary institution that offered
     3     postsecondary credit to students of the school entity prior
     4     to the effective date of this section, the tuition rate
     5     charged to those students; or
     6         (4)  for any early college high school program, middle
     7     college high school program or gateway to college program,
     8     the tuition charged for the program to a student's school
     9     district of residence.
    10     "Concurrent course."  A postsecondary course that meets the
    11  requirements under section 1605-B and that is included in a
    12  concurrent enrollment agreement. The term includes an early
    13  college high school program, a gateway to college program or a
    14  middle college high school program.
    15     "Concurrent enrollment agreement."  The written agreement
    16  between a school entity and each eligible postsecondary
    17  institution establishing and detailing a concurrent enrollment
    18  program.
    19     "Concurrent enrollment committee."  A committee comprised of
    20  representatives from a school entity and eligible postsecondary
    21  institutions with which it offers a concurrent enrollment
    22  program.
    23     "Concurrent enrollment program."  A program administered and
    24  developed by a school entity and an eligible postsecondary
    25  institution that allows students to concurrently enroll in
    26  postsecondary courses and to receive both secondary and
    27  postsecondary credit for that coursework. The term includes an
    28  early college high school program, a gateway to college program
    29  or a middle college high school program.
    30     "Concurrent student."  A student who is enrolled in a school
    20050H0628B2564                 - 26 -     

     1  district, a charter school, an area vocational-technical school,
     2  a nonpublic school, a private school or a home education program
     3  under section 1327.1 and who takes a concurrent course through a
     4  concurrent enrollment program.
     5     "Department."  The Department of Education of the
     6  Commonwealth.
     7     "Early college high school program."  A concurrent enrollment
     8  program established under section 1611-B(a) that consists of a
     9  structured sequence of secondary and postsecondary coursework
    10  offered over a five-year to six-year period, the successful
    11  completion of which yields both a high school diploma and
    12  postsecondary credits equivalent to an associate of arts degree
    13  or credits sufficient to enter a bachelor of arts program as a
    14  junior.
    15     "Eligible postsecondary institution."  A nonprofit two-year
    16  or four-year public or private college or university or an
    17  eligible private licensed school approved to operate in this
    18  Commonwealth. The term does not include a foreign corporation.
    19     "Eligible private licensed school."  A private licensed
    20  school as defined in the act of December 15, 1986 (P.L.1585,
    21  No.174), known as the Private Licensed Schools Act, that is
    22  authorized to confer the degree of Associate in Specialized
    23  Technology or Associate in Specialized Business.
    24     "Gateway to college program."  A concurrent enrollment
    25  program established under section 1611-B(a) that offers eligible
    26  participants the opportunity to enroll in postsecondary
    27  coursework that is aligned to State academic standards, the
    28  successful completion of which yields both a high school diploma
    29  and the accumulation of postsecondary credits.
    30     "Household."  An individual living alone or with the
    20050H0628B2564                 - 27 -     

     1  following: spouse, parent and their unemancipated minor
     2  children; other unemancipated minor children who are related by
     3  blood or marriage; or other adults or unemancipated minor
     4  children living in the household who are dependent upon the
     5  individual.
     6     "Household income."  All money or property received of
     7  whatever nature and from whatever source derived. The term does
     8  not include the following:
     9         (1)  Periodic payments for sickness and disability other
    10     than regular wages received during a period of sickness or
    11     disability.
    12         (2)  Disability, retirement or other payments arising
    13     under workers compensation acts, occupational disease acts
    14     and similar legislation by any government.
    15         (3)  Payments commonly recognized as old-age or
    16     retirement benefits paid to persons retired from service
    17     after reaching a specific age or after a stated period of
    18     employment.
    19         (4)  Payments commonly known as public assistance or
    20     unemployment compensation from a governmental agency.
    21         (5)  Payments to reimburse actual expenses.
    22         (6)  Payments made by employers or labor unions for
    23     programs covering hospitalization, sickness, disability or
    24     death, supplemental unemployment benefits, strike benefits,
    25     Social Security and retirement.
    26         (7)  Compensation received by members of the United
    27     States Armed Forces serving in a combat zone.
    28     "Low-income concurrent student."  A concurrent student who is
    29  a member of a household with an annual household income less
    30  than or equal to 150% of the Federal income poverty guidelines
    20050H0628B2564                 - 28 -     

     1  published by the Department of Health and Human Services.
     2     "Middle college high school program."  A concurrent
     3  enrollment program established under section 1611-B(a) that
     4  offers secondary and postsecondary coursework on the campus of
     5  an eligible postsecondary institution, the successful completion
     6  of which yields both a high school diploma and the accumulation
     7  of postsecondary credits.
     8     "School entity."  A school district or an area vocational-
     9  technical school.
    10     "Total approved cost."  The sum of the costs for allowable
    11  tuition, books and fees for any concurrent course and the cost
    12  of transportation to and from an eligible postsecondary
    13  institution where such transportation is provided by a school
    14  entity, as set forth in a concurrent enrollment agreement as
    15  required under section 1613-B(b).
    16  Section 1603-B.  Responsibilities of department and State Board
    17                     of Education.
    18     (a)  Rules and regulations.--The State Board of Education
    19  shall promulgate any regulations necessary to carry out the
    20  provisions of this article, pursuant to the act of June 25, 1982
    21  (P.L.633, No.181), known as the Regulatory Review Act.
    22     (b)  Promotional materials.--The department shall publish
    23  promotional materials on its publicly accessible website that
    24  may be used by school entities to inform parents and students
    25  enrolled in the school entities about the requirements, features
    26  and opportunities of concurrent enrollment programs established
    27  under this article. To the extent that the department provides
    28  school entities with printed promotional materials for
    29  dissemination, the department shall make such materials
    30  available, upon request, to any charter school, nonpublic
    20050H0628B2564                 - 29 -     

     1  school, private school or home education program.
     2     (c)  Grants.--
     3         (1)  The department shall provide a grant to any school
     4     entity that has applied for grant funds under section 1611-
     5     B(c) and has approved a concurrent enrollment program as set
     6     forth in this article. The grant amount to each school entity
     7     shall be calculated for each concurrent course as follows:
     8             (i)  Determine the total approved cost for all
     9         concurrent students who are residents of the school
    10         district or enrolled in the area vocational-technical
    11         school.
    12             (ii)  Multiply the amount from subparagraph (i) by
    13         the sum of 0.425 and the market value/income aid ratio of
    14         the school entity, provided, that where a concurrent
    15         student is enrolled in an area vocational-technical
    16         school, the market value/income aid ratio shall be the
    17         average of the market value/income aid ratios of the
    18         concurrent students' school districts of residence.
    19         (2)  The total amount of grants provided for concurrent
    20     courses classified as early college high school, middle
    21     college high school or gateway to college programs shall not
    22     exceed 4% of the total amount of funds appropriated for
    23     concurrent enrollment programs under this article.
    24         (3)  The total amount of grants provided on behalf of
    25     concurrent students who are enrolled in charter schools,
    26     nonpublic schools, private schools or home education programs
    27     shall not exceed 4% of the total amount of funds appropriated
    28     for concurrent enrollment programs under this article.
    29         (4)  The grant amount shall not exceed 100% of the total
    30     approved cost of a concurrent course. Where funds
    20050H0628B2564                 - 30 -     

     1     appropriated for this program are insufficient to fund the
     2     full amount of all grants calculated under this subsection,
     3     each grant amount shall be reduced on a pro rata basis.
     4     (d)  Supplemental grants.--
     5         (1)  The department shall provide a supplemental grant
     6     amount to any school entity that has applied for grant funds
     7     under section 1611-B(c) and has at least one low-income
     8     concurrent student enrolled in a concurrent course. The
     9     supplemental grant amount shall equal the cost of tuition,
    10     books and fees for which a low-income concurrent student is
    11     responsible in order to enroll in a concurrent course.
    12         (2)  The sum of all supplemental grants provided under
    13     this subsection shall not exceed 8% of the total amount of
    14     funds appropriated for concurrent enrollment programs under
    15     this article. Where funds available for supplemental grants
    16     are insufficient to fund the full amount of all supplemental
    17     grants under this subsection, supplemental grant amounts
    18     shall be reduced on a pro rata basis.
    19     (e)  Technical assistance.--Upon request of a board of school
    20  directors of a school entity, the department shall provide
    21  technical assistance in the development of concurrent enrollment
    22  agreements and concurrent enrollment programs.
    23     (f)  Annual report.--The department shall produce an annual
    24  report on concurrent enrollment programs using the reporting
    25  information submitted by school entities under section 1611-
    26  B(b). The annual report shall be provided to the chairman and
    27  minority chairman of the Appropriations Committee of the Senate,
    28  the chairman and minority chairman of the Appropriations
    29  Committee of the House of Representatives, the chairman and
    30  minority chairman of the Education Committee of the Senate and
    20050H0628B2564                 - 31 -     

     1  the chairman and minority chairman of the Education Committee of
     2  the House of Representatives. The report shall be published on
     3  the department's publicly accessible website.
     4  Section 1604-B.  Faculty.
     5     (a)  General rule.--A member of an eligible postsecondary
     6  institution's faculty who teaches a concurrent course under this
     7  article shall not be an employee of a school entity, an
     8  independent contractor of a school entity or an employee of an
     9  independent contractor of a school entity for purposes of
    10  sections 111 and 2518 unless the faculty member teaches a course
    11  in a school entity's building.
    12     (b)  Adjunct faculty members.--Nothing in this article shall
    13  be construed to prohibit an eligible postsecondary institution
    14  from contracting with a professional employee of a school entity
    15  for purposes of a concurrent enrollment program if the
    16  professional employee meets all qualifications for an adjunct
    17  faculty member at the eligible postsecondary institution.
    18     (c)  Reductions prohibited.--A school entity may not reduce
    19  the school entity's complement of professional or
    20  paraprofessional employees due to student participation in a
    21  program established under this article.
    22     (d)  Construction.--Nothing contained in this article shall
    23  be construed to supersede or preempt any provision of a
    24  collective bargaining agreement between a school entity and an
    25  employee organization.
    26  Section 1605-B.  Qualifying courses.
    27     A concurrent course offered by an eligible postsecondary
    28  institution as part of a concurrent enrollment program
    29  established under this article shall meet the following
    30  requirements:
    20050H0628B2564                 - 32 -     

     1         (1)  The concurrent course shall be set forth in the
     2     concurrent enrollment agreement and shall either fulfill a
     3     graduation requirement or be identified as advanced
     4     coursework in a core academic subject as defined by the No
     5     Child Left Behind Act of 2001.
     6         (2)  The concurrent course shall be a course for which
     7     the eligible postsecondary institution awards credit.
     8         (3)  The concurrent course may be conducted during the
     9     school entity's regular school hours, notwithstanding any
    10     other provision of this act.
    11  Section 1606-B.  Construction of article.
    12     Programs established under this article shall not be
    13  construed as extracurricular activities.
    14                    (b)  Concurrent Enrollment.
    15  Section 1611-B.  Responsibilities of school entities.
    16     (a)  Concurrent enrollment program.--A school entity seeking
    17  a grant under section 1603-B(c) shall do all of the following:
    18         (1)  Enter into a concurrent enrollment agreement with an
    19     eligible postsecondary institution or institutions, as
    20     required under section 1613-B.
    21         (2)  Form a concurrent enrollment committee as required
    22     under section 1612-B.
    23     (b)  Annual reporting information.--A school entity that
    24  receives a grant under section 1603-B(c) shall submit an annual
    25  report to the department. The report shall include:
    26         (1)  The eligible postsecondary institution or
    27     institutions with which the school entity has established a
    28     concurrent enrollment program.
    29         (2)  The number of concurrent students participating in a
    30     concurrent enrollment program.
    20050H0628B2564                 - 33 -     

     1         (3)  The number of concurrent students participating in a
     2     concurrent enrollment program who are enrolled in early
     3     college high school, middle college high school or gateway to
     4     college programs.
     5         (4)  The approved courses offered through a concurrent
     6     enrollment program.
     7         (5)  The total approved cost for each concurrent course.
     8         (6)  The total amount of grant funds received pursuant to
     9     section 1603-B(c).
    10     (c)  Application for grant funds.--A school entity seeking
    11  grant funds under section 1603-B(c) shall submit an application
    12  to the department no later than September 15, 2005, and August
    13  15 of each year thereafter. The application shall include:
    14         (1)  The total approved cost of each concurrent course
    15     included in the concurrent enrollment agreement.
    16         (2)  The number of concurrent students to be enrolled in
    17     each concurrent course pursuant to the concurrent enrollment
    18     agreement.
    19         (3)  The cost of tuition, books and fees for which a
    20     student will be responsible in order to enroll in each
    21     concurrent course included in the concurrent enrollment
    22     agreement.
    23         (4)  The number of low-income concurrent students to be
    24     enrolled in each concurrent course pursuant to the concurrent
    25     enrollment agreement.
    26         (5)  The number of concurrent students to be enrolled in
    27     early college high school, middle college high school or
    28     gateway to college programs pursuant to the concurrent
    29     enrollment agreement.
    30         (6)  The eligible postsecondary institutions at which
    20050H0628B2564                 - 34 -     

     1     concurrent courses will be offered pursuant to the concurrent
     2     enrollment agreement.
     3     (d)  Use of grant funds.--A school entity shall use the
     4  grants provided under section 1603-B(c) and (d) to pay the
     5  portion of total approved costs for which it is provided grants.
     6     (e)  Limitation.--A school entity shall not be responsible
     7  for the payment of any portion of the total approved costs for
     8  any concurrent student enrolled in a charter school, nonpublic
     9  school, private school or home education program in excess of
    10  the grants provided under section 1603-B(c) and (d).
    11     (f)  Construction.--Nothing in this article shall be
    12  construed to preclude a school entity that does not receive a
    13  grant under section 1603-B(c) from continuing or entering into
    14  an agreement with an institution of higher education under the
    15  provisions of section 1525.
    16  Section 1612-B.  Concurrent enrollment committees.
    17     (a)  Composition.--
    18         (1)  (i)  Subject to the provisions of subparagraph (ii),
    19         in order to be eligible for grant funds under section
    20         1603-B(c), a school entity shall form a concurrent
    21         enrollment committee, which shall include no fewer than
    22         six members.
    23             (ii)  The number of committee members appointed under
    24         paragraph (3) or (4) shall not exceed the number of
    25         committee members appointed under paragraph (2).
    26         (2)  At least four members shall be appointed by the
    27     board of school directors of the school entity. At a minimum,
    28     the members shall include:
    29             (i)  A parent of a high school student enrolled in
    30         the school entity.
    20050H0628B2564                 - 35 -     

     1             (ii)  A teacher employed by the school entity and
     2         selected by the teachers of the school entity.
     3             (iii)  An administrator employed by the school entity
     4         and selected by the superintendent of the school entity.
     5             (iv)  A member of the board of school directors of
     6         the school entity, who shall be the chairman.
     7         (3)  At least two members shall be appointed by each
     8     eligible postsecondary institution participating in the
     9     concurrent enrollment program, of which at least one shall be
    10     a faculty member representing a department with
    11     administrative authority over one or more approved concurrent
    12     courses.
    13         (4)  Where more than three eligible postsecondary
    14     institutions participate in the concurrent enrollment
    15     program, one member shall be appointed by each eligible
    16     postsecondary institution.
    17     (b)  Duties.--The concurrent enrollment committee shall do
    18  all of the following:
    19         (1)  Develop a proposed concurrent enrollment agreement,
    20     which may include separate, individual agreements with each
    21     eligible postsecondary institution with members appointed to
    22     the concurrent enrollment committee.
    23         (2)  Present the proposed concurrent enrollment agreement
    24     to the board of school directors of the school entity for
    25     approval.
    26         (3)  Meet no less than quarterly to review the concurrent
    27     enrollment program.
    28         (4)  Recommend any changes to the concurrent enrollment
    29     program to the board of school directors of the school
    30     entity.
    20050H0628B2564                 - 36 -     

     1         (5)  Develop criteria to permit students who are not
     2     qualified under section 1614-B(a) to enroll in the concurrent
     3     enrollment program.
     4  Section 1613-B.  Concurrent enrollment agreements.
     5     (a)  Deadline.--In order to be eligible for funding under
     6  section 1603-B(c), a concurrent enrollment committee shall
     7  develop a concurrent enrollment agreement and present it to the
     8  board of school directors of the school entity and to each
     9  eligible postsecondary institution with members appointed to the
    10  concurrent enrollment committee for approval prior to the
    11  submission of a grant application pursuant to section 1611-B(c).
    12     (b)  Required provisions.--The concurrent enrollment
    13  agreement shall at a minimum include all of the following
    14  provisions:
    15         (1)  A ratification or modification of all existing
    16     concurrent enrollment agreements to meet the requirements of
    17     this article.
    18         (2)  An explanation of the criteria used to determine
    19     student qualification for concurrent enrollment, which shall
    20     include all of the following:
    21             (i)  Postsecondary placement test scores.
    22             (ii)  The results of nationally available achievement
    23         tests or other standardized tests included in the
    24         participating school entity's local assessment system.
    25             (iii)  Satisfactory progress toward fulfilling
    26         applicable secondary school graduation requirements, as
    27         determined by the school entity.
    28             (iv)  Demonstrated readiness for college-level
    29         coursework, as determined by the eligible postsecondary
    30         institution.
    20050H0628B2564                 - 37 -     

     1             (v)  Status as a high school junior or senior.
     2         (3)  A description and an explanation of the criteria
     3     used to determine concurrent courses offered by the eligible
     4     postsecondary institution, which shall include all of the
     5     following:
     6             (i)  The course must be nonremedial.
     7             (ii)  The course must be offered in a core academic
     8         subject as defined by the No Child Left Behind Act of
     9         2001.
    10             (iii)  The course, as offered to concurrent students,
    11         must be identical to that offered when concurrent
    12         students are not enrolled, including the use of an
    13         identical curriculum, assessments and instructional
    14         materials.
    15             (iv)  The course must enforce prerequisite coursework
    16         requirements identical to those enforced for the course
    17         when concurrent students are not enrolled.
    18         (4)  A description of minimum performance criteria, in
    19     courses offered by the school entity and in concurrent
    20     courses, required for students to remain in the concurrent
    21     enrollment program.
    22         (5)  An explanation of student transportation
    23     responsibilities, if applicable.
    24         (6)  A list of all concurrent courses offered under a
    25     concurrent enrollment agreement.
    26         (7)  The total approved cost of each concurrent course.
    27         (8)  Any additional provisions deemed appropriate by the
    28     school entity and eligible postsecondary institution.
    29  Section 1614-B.  Enrollment in concurrent courses.
    30     (a)  Requirements for enrollment.--
    20050H0628B2564                 - 38 -     

     1         (1)  A student enrolled in a school entity in this
     2     Commonwealth who meets the student qualifications set forth
     3     in the concurrent enrollment agreement may enroll in
     4     concurrent courses that are part of the concurrent enrollment
     5     agreement.
     6         (2)  A student enrolled in a charter school, a nonpublic
     7     school, a private school or a home education program in this
     8     Commonwealth shall be permitted to enroll in concurrent
     9     courses that are part of the concurrent enrollment agreement
    10     approved by the student's school district of residence,
    11     provided that:
    12             (i)  The student meets the qualifications set forth
    13         in the concurrent enrollment agreement.
    14             (ii)  The charter school, nonpublic school, private
    15         school or home education program awards secondary credit
    16         for a successfully completed concurrent course.
    17  The student shall notify the school district of residence of the
    18  intent to enroll in the program. The student shall be included
    19  in the number of students reported to the department under
    20  section 1611-B(b) and (c).
    21     (b)  Optional enrollment.--A student enrolled in a school
    22  district, charter school, area vocational-technical school,
    23  nonpublic school, private school or home education program who
    24  does not qualify under subsection (a) may enroll in concurrent
    25  courses that are part of a concurrent enrollment program
    26  approved by the student's school district of residence or the
    27  area vocational-technical school in which the student is
    28  enrolled by meeting alternate criteria established by the
    29  concurrent enrollment committee, provided, that the charter
    30  school, nonpublic school, private school or home education
    20050H0628B2564                 - 39 -     

     1  program awards secondary credit for a successfully completed
     2  concurrent course. The student shall be included in the number
     3  of students reported to the department under section 1611-B(b)
     4  and (c).
     5  Section 1615-B.  Credit for concurrent courses.
     6     (a)  Award.--A school district, charter school, area
     7  vocational-technical school, nonpublic school, private school or
     8  home education program shall award secondary credit for a
     9  successfully completed concurrent course, with success being
    10  determined by the eligible postsecondary institution and set
    11  forth in the concurrent enrollment agreement under section 1613-
    12  B(b)(4).
    13     (b)  Transcript.--A concurrent student's official secondary
    14  school transcript shall reflect that credits for a concurrent
    15  course were earned through an eligible postsecondary
    16  institution.
    17     (c)  Transfer.--
    18         (1)  In the event that a concurrent student who has
    19     earned credits for a concurrent course transfers to a school
    20     entity, the school entity that receives the concurrent
    21     student shall recognize the credits as applying toward its
    22     graduation requirements.
    23         (2)  In the event that a concurrent student who has
    24     earned credits for a concurrent course transfers to a charter
    25     school, a nonpublic school, a private school or a home
    26     education program, the charter school, nonpublic school,
    27     private school or home education program that receives the
    28     concurrent student may recognize the credits as applying
    29     toward its graduation requirements.
    30     (d)  Postsecondary award.--
    20050H0628B2564                 - 40 -     

     1         (1)  If, after graduation from a secondary school, the
     2     concurrent student enrolls in the postsecondary institution
     3     at which the concurrent student took a concurrent course,
     4     that institution shall award postsecondary credit for any
     5     concurrent courses successfully completed by the concurrent
     6     student at the institution.
     7         (2)  If the concurrent student enrolls in a postsecondary
     8     institution other than the one at which the concurrent
     9     student earned the credits, that institution may grant credit
    10     for courses successfully completed by the concurrent student.
    11         (3)  Community colleges, member institutions of the State
    12     System of Higher Education and State-related institutions may
    13     not refuse to recognize and award credit for a concurrent
    14     course based upon the fact that the credit was earned through
    15     a concurrent enrollment program.
    16     (e)  Credit limit.--A concurrent student's concurrent course
    17  enrollment may not exceed 24 postsecondary credits in any school
    18  year.
    19     Section 12.  Section 1705-B(h)(4) of the act, reenacted and
    20  amended July 4, 2004 (P.L.536, No.70), is amended to read:
    21     Section 1705-B.  Education Empowerment Districts.--* * *
    22     (h)     * * *
    23     (4)  The department may utilize up to [$2,000,000] $2,875,000
    24  of undistributed funds not expended, encumbered or committed
    25  from appropriations for grants and subsidies made to the
    26  department to assist school districts certified as an education
    27  empowerment district under paragraph (3). There is hereby
    28  established a restricted account from which payments under this
    29  paragraph shall be paid. Funds shall be transferred by the
    30  Secretary of the Budget to the restricted account to the extent
    20050H0628B2564                 - 41 -     

     1  necessary to make payments under this paragraph. Funds in the
     2  restricted account are hereby appropriated to carry out the
     3  purposes of this paragraph. The subsidy payment from this
     4  account shall be utilized to supplement the operational budget
     5  of the eligible school districts. This paragraph shall apply to
     6  fiscal years 2000-2001, 2001-2002, 2002-2003, 2003-2004 [and],
     7  2004-2005 and 2005-2006 and shall expire June 30, [2005] 2006.
     8     Section 13.  Section 1714-B of the act is amended by adding a
     9  subsection to read:
    10     Section 1714-B.  Mandate Waiver Program.--* * *
    11     (n)  Notwithstanding the provisions of subsection (g), the
    12  department may approve an application submitted by a board of
    13  school directors for a waiver of section 1361 to allow the
    14  provision of transportation to a public kindergarten, elementary
    15  school or secondary school or a nonpublic kindergarten,
    16  elementary school or secondary school operated not for profit
    17  located more than ten miles by the nearest public highway:
    18  Provided, That the provision of transportation is more cost
    19  effective for the district or the Commonwealth or addresses
    20  student safety concerns. Transportation provided under this
    21  subsection shall be considered an allowable district expense for
    22  purposes of calculating transportation reimbursement.
    23     Section 14.  Section 1901-A(4) of the act, added July 1, 1985
    24  (P.L.103, No.31), is amended and the section is amended by
    25  adding clauses to read:
    26     Section 1901-A.  Definitions.--The following words and
    27  phrases, as used in this article, shall, unless a different
    28  meaning is plainly required by the context, have the following
    29  meaning:
    30     * * *
    20050H0628B2564                 - 42 -     

     1     (4)  "Community college" shall mean a public college or
     2  technical institute which is established and operated in
     3  accordance with the provisions of this act by a local sponsor
     4  which provides a two-year, postsecondary, college-parallel,
     5  terminal-general, terminal-technical, out-of-school youth or
     6  adult education program or any combination of these. The
     7  community college may also provide area vocational-technical
     8  education services and credit, nonremedial college courses to
     9  secondary senior high school students.
    10     * * *
    11     (11)  "Independent certified public accountant" shall mean a
    12  member of the American Institute of Certified Public Accountants
    13  who has a minimum of five years' verifiable experience in
    14  performing audits of government funds for nonprofit
    15  organizations with a comparable or larger annual budget.
    16     (12)  "High priority and high instructional cost occupation
    17  program" shall mean a for-credit, two-year or less than two-year
    18  occupational or technical program approved by the Department of
    19  Education to qualify for an economic development stipend in
    20  order to prepare students to enter high priority occupations
    21  pursuant to section 1913-A(b)(1.8)(ii).
    22     (13)  "High Priority Occupation Program" shall mean a for-
    23  credit, two-year or less than two-year occupational or technical
    24  program approved by the Department of Education to qualify for
    25  an economic development stipend in order to prepare students to
    26  enter high priority occupations pursuant to section 1913-
    27  A(b)(1.8)(iii).
    28     (14)  "Noncredit workforce development courses" shall mean
    29  noncredit courses approved by the Department of Education to
    30  qualify for an economic development stipend pursuant to section
    20050H0628B2564                 - 43 -     

     1  1913-A(b)(1.8)(iii) and having the specific purpose of providing
     2  opportunities for students and incumbent workers to develop or
     3  upgrade skills necessary in high priority occupations. Noncredit
     4  workforce development courses may be offered by a community
     5  college at an off-campus site, at any of its facilities or
     6  through any form of distance education.
     7     (15)  "Workforce development courses" shall mean those
     8  noncredit courses having the specific purpose of providing
     9  opportunities for students and incumbent workers to develop or
    10  upgrade skills necessary or useful in gainful employment, for
    11  promotion or other similar opportunities in existing employment
    12  or for learning new job skills and that have, as their subject
    13  matter, instruction in any of the following general areas:
    14     (1)  Computers and information processing and technology,
    15  including the study of both hardware and software applications.
    16     (2)  Management, supervision and basic employability skills,
    17  including, but not limited to, working in teams, management and
    18  supervisory skills, effective interpersonal relations, problem
    19  solving, self-management strategies, project management and the
    20  application of Federal and State laws to the workplace.
    21     (3)  Health professional and allied health job skills.
    22     (4)  Technical, manufacturing and service industries,
    23  including, but not limited to, jobs in such fields as powdered
    24  metals, machine tool and diemaking, electronics, safety,
    25  plastics technology, hydraulics, construction,
    26  warehouse/materials management, automotive repair and
    27  management, heating, ventilation and air conditioning,
    28  refrigeration and tourism.
    29     (5)  Other similar areas.
    30     Section 15.  Section 1913-A(b)(1), (c) and (k) of the act,
    20050H0628B2564                 - 44 -     

     1  amended or added July 1, 1985 (P.L.103, No.31), June 7, 1993
     2  (P.L.49, No.16) and June 22, 2001 (P.L.530, No.35), are amended,
     3  subsection (b) is amended by adding clauses and the section is
     4  amended by adding subsections to read:
     5     Section 1913-A.  Financial Program; Reimbursement of
     6  Payments.--* * *
     7     (b)  (1)  The Commonwealth shall pay to a community college
     8  on behalf of the sponsor on account of its operating costs
     9  during the fiscal year from funds appropriated for that purpose
    10  an amount equal to:
    11     (i)  for the 1993-1994 fiscal year through the 2000-2001
    12  fiscal year, the lesser of such college's variable State share
    13  ceiling as determined in clause (1.3) or such college's
    14  equivalent full-time student reimbursement as determined in
    15  clause (1.4); [and]
    16     (ii)  for the 2001-2002 fiscal year [and each fiscal year
    17  thereafter] through the 2004-2005 fiscal year, the college's
    18  equivalent full-time student reimbursement as determined in
    19  clause (1.4)[.];
    20     (iii)  for the 2005-2006 fiscal year, the college's payment
    21  as determined in clause (1.5); and
    22     (iv)  for the 2006-2007 fiscal year and each fiscal year
    23  thereafter, the college's payment as determined in clause (1.6).
    24     * * *
    25     (1.5)  For the 2005-2006 fiscal year, the payment for a
    26  community college shall consist of the following:
    27     (i)  Each community college shall receive reimbursement for
    28  operating costs equal to the reimbursement for the 2004-2005
    29  fiscal year as determined under clause (1.4)(i) and (ii). This
    30  amount shall be determined based upon the mid-year rebudget
    20050H0628B2564                 - 45 -     

     1  submitted by a community college in February 2005.
     2     (ii)  Each community college shall receive an economic
     3  development stipend as calculated under clause (1.7).
     4     (iii)  Each community college shall receive a base supplement
     5  determined by:
     6     (A)  subtracting the total amount of funds determined under
     7  subclauses (i) and (ii) from the State appropriation for payment
     8  of approved operating expenses of community colleges for the
     9  2005-2006 fiscal year;
    10     (B)  dividing the payment under subclauses (i) and (ii) by
    11  the sum of the amounts determined for all community colleges
    12  under subclauses (i) and (ii); and
    13     (C)  multiplying the quotient from subparagraph (B) by an
    14  amount equal to seventy-five percent (75%) of the amount
    15  determined under paragraph (A).
    16     (iv)  Each community college with a 2003-2004 equivalent
    17  full-time enrollment in credit, noncredit and workforce
    18  development courses greater than its 2002-2003 equivalent full-
    19  time enrollment in credit, noncredit and workforce development
    20  courses shall receive a growth supplement amount determined by:
    21     (A)  subtracting its 2002-2003 equivalent full-time
    22  enrollment in credit, noncredit and workforce development
    23  courses from its 2003-2004 equivalent full-time enrollment in
    24  credit, noncredit and workforce development courses;
    25     (B)  dividing the difference from paragraph (A) by the sum of
    26  the differences from paragraph (A) for all community colleges;
    27  and
    28     (C)  multiplying the quotient from paragraph (B) by an amount
    29  equal to twenty-five percent (25%) of the amount determined
    30  under subclause (iii)(A).
    20050H0628B2564                 - 46 -     

     1  Calculations under this subclause shall be based upon the final
     2  claim forms submitted by a community college for the 2002-2003
     3  and 2003-2004 fiscal years.
     4     (1.6)  For the 2006-2007 fiscal year and each fiscal year
     5  thereafter, the payment for a community college shall consist of
     6  the following:
     7     (i)  Each community college shall receive an amount equal to
     8  the reimbursement for operating costs, base supplement and
     9  growth supplement amounts it received in the immediately
    10  preceding fiscal year.
    11     (ii)  Each community college shall receive an economic
    12  development stipend as calculated under clause (1.7). The amount
    13  available for economic development stipends shall increase each
    14  year by the percent increase in the State appropriation for
    15  payment of approved operating expenses of community colleges.
    16     (iii)  Each community college shall receive a base supplement
    17  determined by:
    18     (A)  subtracting the total amount of funds determined under
    19  subclauses (i) and (ii) from the State appropriation for payment
    20  of approved operating expenses of community colleges;
    21     (B)  dividing the payment under subclause (i) by the sum of
    22  the amounts determined for all community colleges under
    23  subclause (i); and
    24     (C)  multiplying the quotient from paragraph (B) by an amount
    25  equal to seventy-five percent (75%) of the amount determined
    26  under paragraph (A).
    27     (iv)  Each community college with an equivalent full-time
    28  enrollment in credit, noncredit and workforce development
    29  courses for the year prior to the immediately preceding year
    30  greater than its equivalent full-time enrollment in credit,
    20050H0628B2564                 - 47 -     

     1  noncredit and workforce development courses for the second year
     2  prior to the immediately preceding year shall receive a growth
     3  supplement amount determined by:
     4     (A)  subtracting its equivalent full-time enrollment in
     5  credit, noncredit and workforce development courses for the
     6  second year prior to the immediately preceding year from its
     7  equivalent full-time enrollment in credit, noncredit and
     8  workforce development courses for the year prior to the
     9  immediately preceding year;
    10     (B)  dividing the difference from paragraph (A) by the sum of
    11  the differences from paragraph (A) for all community colleges;
    12  and
    13     (C)  multiplying the amount from paragraph (B) by an amount
    14  equal to twenty-five percent (25%) of the amount determined
    15  under subclause (iii)(A).
    16  Secondary senior high school students enrolled in credit-
    17  bearing, nonremedial college courses shall be included in the
    18  calculation under paragraph (A). Calculations under this
    19  subclause shall be based upon the audited financial statements
    20  submitted by a community college pursuant to subsection (k.1).
    21     (1.7)  The payment for a community college shall include an
    22  economic development stipend which shall consist of the
    23  following:
    24     (i)  For the 2005-2006 fiscal year, each community college
    25  shall receive an amount equal to the reimbursement for the 2004-
    26  2005 fiscal year as determined under clause (1.4)(iii) and under
    27  section 1501 of the act of December 18, 2001 (P.L.949, No.114),
    28  known as the "Workforce Development Act." This amount shall be
    29  determined based upon the mid-year rebudget submitted by a
    30  community college in February 2005.
    20050H0628B2564                 - 48 -     

     1     (ii)  For the 2006-2007 fiscal year and each fiscal year
     2  thereafter, each community college shall receive, subject to the
     3  provisions of subclause (iii), an amount determined by:
     4     (A)  Adding the following:
     5     (I)  the number of full-time equivalent students enrolled in
     6  high priority and high instructional cost occupation programs at
     7  the community college multiplied by 1.50;
     8     (II)  the number of full-time equivalent students enrolled in
     9  high priority occupation programs at the community college
    10  multiplied by 1.25; and
    11     (III)  the number of full-time equivalent students enrolled
    12  in noncredit workforce development courses at the community
    13  college.
    14     (B)  Dividing the total from paragraph (A) by the sum of the
    15  totals from paragraph (A) for all community colleges.
    16     (C)  Multiplying the amount from paragraph (B) by the amount
    17  allocated for the economic development stipend pursuant to
    18  clause (1.6)(ii).
    19  The number of full-time equivalent students shall be determined
    20  based upon the final mid-year rebudget submitted by a community
    21  college for the prior fiscal year. Such rebudget shall be
    22  submitted, as required by the Department of Education, no later
    23  than May 31, 2006, and May 31 of each year thereafter.
    24     (iii)  For the 2006-2007 and 2007-2008 fiscal years, the
    25  following shall apply:
    26     (A)  Full-time equivalent students enrolled in stipend
    27  advanced technology programs shall be counted as full-time
    28  equivalent students enrolled in high priority and high
    29  instructional cost occupation programs for the purpose of the
    30  calculation in subclause (ii).
    20050H0628B2564                 - 49 -     

     1     (B)  Full-time equivalent students enrolled in stipend
     2  Statewide programs shall be counted as full-time equivalent
     3  students enrolled in high priority occupation programs for the
     4  purpose of the calculation in subclause (ii).
     5     (C)  Full-time equivalent students enrolled in other stipend
     6  occupational programs and workforce development courses shall be
     7  counted as full-time equivalent students enrolled in noncredit
     8  workforce development courses for the purpose of the calculation
     9  in subclause (ii).
    10     (D)  For reimbursement for any semester that begins on or
    11  after January 1, 2006, this subclause shall only apply for
    12  students who were enrolled in such programs during the fall 2005
    13  semester.
    14     (1.8)  (i)  The Department of Education shall annually
    15  approve high priority and high instructional cost occupation
    16  programs, high priority occupation programs and noncredit
    17  workforce development courses.
    18     (ii)  In order to qualify as a high priority and high
    19  instructional cost occupation program, the program must:
    20     (A)  Provide training:
    21     (I)  in a high priority occupation as defined by the Center
    22  for Workforce Information and Analysis within the Department of
    23  Labor and Industry; or
    24     (II)  in an occupation designed to meet regional workforce
    25  needs as documented through collaboration with one or more
    26  employers.
    27     (B)  Bear an instructional cost to the community college, per
    28  full-time-equivalent student, of at least one hundred thirty
    29  percent (130%) of the average cost per full-time-equivalent
    30  student enrolled in the community college's credit courses.
    20050H0628B2564                 - 50 -     

     1  Instructional costs shall be defined by the Department of
     2  Education and may include personnel, equipment, curricula and
     3  other costs necessary for the program.
     4     (iii)  In order to qualify as a high priority occupation
     5  program or a noncredit workforce development course, the high
     6  priority occupation program or noncredit workforce development
     7  course must:
     8     (A)  provide training in a high priority occupation as
     9  defined by the Center for Workforce Information and Analysis
    10  within the Department of Labor and Industry; or
    11     (B)  provide training in an occupation designed to meet
    12  regional workforce needs as documented through collaboration
    13  with one or more employers.
    14     (iv)  In order to qualify under subclause (ii)(A)(II) or
    15  (iii)(B), the community college shall submit an application to
    16  the Department of Education. The application shall contain:
    17     (A)  Evidence of collaboration with one or more employers.
    18     (B)  Information as to the nature of the proposed program.
    19     (C)  Evidence as to how the program will increase workforce
    20  opportunities for participants.
    21     (v)  The Department of Education shall:
    22     (A)  Determine the form and manner by which applications are
    23  to be submitted under subclause (iv).
    24     (B)  Approve or reject applications received pursuant to
    25  subclause (iv) within twenty (20) days of receipt of a completed
    26  application; otherwise such applications will be deemed
    27  approved.
    28     (C)  Annually publish guidelines listing criteria and
    29  establishing the approval process for programs and courses under
    30  this clause.
    20050H0628B2564                 - 51 -     

     1     * * *
     2     (c)  (1)  Capital expenses shall mean only such expenses as
     3  are incurred with the approval of the Department of Education
     4  for amortization of the purchase of lands; purchase,
     5  construction or improvement of buildings for administrative and
     6  instructional purposes, including libraries; the lease of lands
     7  or buildings, or for rentals to an authority for the same
     8  purpose; and, prior to July 1, 2005, for the purchase, lease or
     9  rental of capital equipment and furniture used for instructional
    10  or administrative purposes. Capital expenses shall include
    11  library books and complementary audio-visual equipment purchased
    12  during the first five years after establishment. On or after
    13  July 1, 2005, capital expenses may include such expenses as are
    14  incurred with the approval of the Department of Education for
    15  the purchase, lease or rental of capital equipment and furniture
    16  used for instructional or administrative purposes. For the
    17  purpose of calculating the Commonwealth's share of operating,
    18  and capital costs incurred prior to the actual admission of
    19  students to a community college, all such costs shall be
    20  interpreted as capital costs. No costs and expenses incurred in
    21  the establishment, construction, operation or maintenance of
    22  dormitories, or the equipment or furnishings for such purposes,
    23  shall be included in capital expenses or operating costs for
    24  purposes of Commonwealth reimbursement.
    25     (2)  The provisions of this subsection shall not prevent the
    26  Commonwealth from reimbursing a community college for capital
    27  expenses incurred prior to the effective date of this act. Such
    28  reimbursement must have approval of the Secretary of Education.
    29     (3)  Notwithstanding any other provision of this act, a
    30  community college may use a portion of its payment of approved
    20050H0628B2564                 - 52 -     

     1  operating expenses for capital expenses not otherwise reimbursed
     2  by the Department of Education.
     3     (c.1)  Notwithstanding any provision of law to the contrary,
     4  two or more community colleges may jointly enter into a
     5  financing arrangement through the State Public School Building
     6  Authority for the purchase, lease or construction of capital
     7  projects deemed necessary by the community colleges. The terms
     8  and conditions of the financing arrangement shall be consistent
     9  with the terms and conditions set forth in the act of July 5,
    10  1947 (P.L.1217, No.498), known as the "State Public School
    11  Building Authority Act."
    12     * * *
    13     (k)  For fiscal years up to and including the 2004-2005
    14  fiscal year, audits of community colleges shall be conducted as
    15  follows:
    16     (1)  Unless otherwise prescribed by the State Board of
    17  Education, the Commonwealth's fiscal audits of community
    18  colleges under this section shall be conducted in accordance
    19  with "Government Auditing Standards," latest revision,
    20  promulgated by the United States General Accounting Office.
    21  Written audit reports will be produced and will be sent to the
    22  community college by the Commissioner of Postsecondary/Higher
    23  Education. Any cost disallowed under findings contained in the
    24  audit report shall be considered an adjudication within the
    25  meaning of 2 Pa.C.S. (relating to administrative law and
    26  procedure) and regulations promulgated thereunder.
    27     (2)  The Secretary of Education is hereby specifically
    28  authorized and shall be required to resolve audit findings
    29  involving disallowed costs that are contested by community
    30  colleges except for audit findings that involve mathematical
    20050H0628B2564                 - 53 -     

     1  errors, violation of regulations or alleged illegal activities.
     2  The proposed resolution of the Secretary of Education shall not
     3  be subject to the provisions of 2 Pa.C.S. The Secretary of
     4  Education's notice to resolve audit findings shall be sent to
     5  the community college in writing. The Secretary of Education may
     6  resolve the audit findings by reducing the disallowed costs
     7  related thereto in whole or in part.
     8     (3)  The Secretary of Education's notice to resolve an audit
     9  finding by reducing or eliminating the disallowed costs must be
    10  made contingent upon the community college developing and
    11  implementing a corrective action plan to address the audit
    12  finding. The community college must submit a corrective action
    13  plan to the Secretary of Education within 60 days after receipt
    14  of the Secretary of Education's written notice to resolve the
    15  audit finding. The Secretary of Education shall approve, reject
    16  or alter the plan submitted by the community college within
    17  thirty (30) days of submission. After the community college
    18  receives written notice of approval or agrees in writing to the
    19  Secretary of Education's alterations of the corrective action
    20  plan, said plan shall be implemented and shall be binding on the
    21  community college. Implementation of the approved or agreed upon
    22  corrective action plan will be verified by an audit conducted by
    23  the department no later than the end of the fiscal year
    24  following the fiscal year during which the plan is implemented.
    25  If no agreed upon corrective action plan is in place within one
    26  year after the date of the Secretary of Education's written
    27  notice to resolve audit findings or if the agreed upon
    28  corrective action has not been implemented within one year after
    29  the date of the Secretary of Education's written notice to
    30  resolve the audit findings, then the Secretary of Education is
    20050H0628B2564                 - 54 -     

     1  authorized to adjust payments to the community college to
     2  collect any amounts due based upon the findings contained in the
     3  audit report that was issued to the college by the commissioner.
     4     (4)  The department shall deduct any amounts due the
     5  Commonwealth as a result of audit findings that are resolved
     6  under this subsection from any future payment due to the
     7  community college from the Commonwealth. The Secretary of
     8  Education is authorized to approve a payment schedule in cases
     9  where immediate repayment of the full amount due the
    10  Commonwealth would jeopardize the ability of the community
    11  college to continue operations.
    12     (5)  Resolution authority provided to the Secretary of
    13  Education in this subsection shall be limited to disallowed cost
    14  findings relating to policy and/or administrative practices. The
    15  resolution authority shall not be used for audit findings in
    16  which the audited community college data and documentation is in
    17  error, where a violation of applicable law or regulation is
    18  found or where criminal violations are suspected by the
    19  Commonwealth auditors and brought to the Secretary of
    20  Education's attention in writing. Notwithstanding the
    21  limitations of this subsection, until June 30, 1995, the
    22  Secretary of Education is authorized to resolve audit findings
    23  involving disallowed costs for fiscal years prior to and
    24  including 1992-1993 when such disallowed costs result from
    25  violation of regulations.
    26     (6)  The department, through the Secretary of Education, is
    27  authorized to issue guidelines for the operation of the
    28  community college educational and financial programs. The
    29  department shall amend these guidelines on an annual basis to
    30  reflect the department's position on issues that require
    20050H0628B2564                 - 55 -     

     1  resolution under this subsection.
     2     (7)  The provisions of subsection (d) are repealed insofar as
     3  they are inconsistent with the provisions of this subsection.
     4     (k.1)  (1)  By January 1, 2007, and January 1 of each year
     5  thereafter, a community college shall submit to the department
     6  an audited financial statement for the immediately preceding
     7  fiscal year. The audited financial statement shall be consistent
     8  with the generally accepted accounting principles prescribed by
     9  the National Association of College and University Business
    10  Officers or its successor, by the American Institute of
    11  Certified Public Accounts or its successor or by any other
    12  recognized authoritative body and consistent with the financial
    13  reporting policies and standards promulgated by Federal
    14  Government and State government which apply to community
    15  colleges: Provided, that an audited financial statement shall
    16  not be acceptable if the audit is conducted by an employe or
    17  member of the board of trustees of the community college or by
    18  an organization or firm associated with any employe or member of
    19  the board of trustees of the community college. The Department
    20  of Education may withhold funds appropriated to community
    21  colleges as necessary to ensure that audit reports are submitted
    22  in the prescribed fashion.
    23     (2)  The audited financial statement required under clause
    24  (1) shall include:
    25     (i)  results of the tests of the community college's
    26  accounting records and other procedures that are considered
    27  necessary to enable the independent certified public accountant
    28  to express an opinion as to whether the community college's
    29  financial statements are fairly presented, in all material
    30  respects, consistent with the accounting principles set forth in
    20050H0628B2564                 - 56 -     

     1  clause (1);
     2     (ii)  a schedule of operating expenses that presents all
     3  operating expenses pertaining to the community college's
     4  educational program; and
     5     (iii)  a verification of equivalent full-time students
     6  enrolled in the community college in each of the following
     7  categories: credit, noncredit and each economic development
     8  stipend category, during the fiscal year for which the audited
     9  financial statement is presented.
    10     (3)  The department shall review the audited financial
    11  statement of a community college to determine whether the State
    12  funds allocated to the community college have been expended in
    13  accordance with the accounting principles set forth in clause
    14  (1). The department shall have ninety (90) days from the receipt
    15  of an audited financial statement to review the audited
    16  financial statement and notify the community college of any
    17  material failure to meet the requirements of this subsection.
    18     (4)  A community college that receives notice from the
    19  department under clause (3) shall have ninety (90) days from the
    20  receipt of such notice to submit a corrective action plan to the
    21  department.
    22     (5)  The department shall approve, reject or alter the
    23  corrective action plan within thirty (30) days of submission.
    24  After the community college receives written notice of approval
    25  of the corrective action plan or agrees in writing to the
    26  department's alterations of the corrective action plan, the plan
    27  shall be implemented and binding on the community college.
    28  Implementation of the approved or agreed upon corrective action
    29  plan shall be verified by an audit conducted by the department
    30  no later than the end of the fiscal year following the fiscal
    20050H0628B2564                 - 57 -     

     1  year during which the plan is implemented. If no agreed upon
     2  corrective action plan is in place within one year after the
     3  date of the department's written notice under clause (4) or if
     4  the agreed upon corrective action plan has not been implemented
     5  within one year after the date of the department's written
     6  notice under clause (4), then the department shall adjust
     7  payments to the community college to collect any amounts due
     8  based upon the findings contained in the audit report.
     9     (6)  The State Board of Education shall promulgate final-
    10  omitted regulations, pursuant to the act of June 25, 1982
    11  (P.L.633, No.181), known as the "Regulatory Review Act," as
    12  necessary to implement this subsection.
    13     * * *
    14     Section 16.  The act is amended by adding sections to read:
    15     Section 1917-A.  Community College Capital Fund.--(a)  The
    16  Community College Capital Fund is hereby established as a
    17  separate fund in the State Treasury for the purpose of making
    18  payments to community colleges for capital expenses approved
    19  under section 1913-A(b)(4). The moneys of the fund are hereby
    20  appropriated to the Department of Education to carry out the
    21  provisions of this section.
    22     (b)  The Community College Capital Fund shall consist of all
    23  funds appropriated and allocated during the 2005-2006 fiscal
    24  year and each fiscal year thereafter for capital expenses
    25  approved for payment by the Department of Education under
    26  section 1913-A(b)(4).
    27     (c)  At the end of each fiscal year, any unencumbered funds
    28  shall not lapse to the General Fund and shall be available for
    29  payment of any capital expenses approved under section 1913-
    30  A(b)(4) in any subsequent fiscal year.
    20050H0628B2564                 - 58 -     

     1     (d)  Payments for capital expenses approved under section
     2  1913-A(b)(4) shall be limited to the total amount of funds
     3  included in the Community College Capital Fund.
     4     Section 1918-A.  Annual Report.--(a)  No later than January
     5  1, 2006, the Department of Education shall, in consultation with
     6  the community colleges, complete development of a format for
     7  collecting uniform data relative to the operations of community
     8  colleges. The data shall be used in making an annual report to
     9  the Governor and the chairmen and minority chairmen of the
    10  Appropriations and Education Committees of the Senate and the
    11  chairmen and minority chairmen of the Appropriations and
    12  Education Committees of the House of Representatives. The report
    13  and the data shall be made available to the Governor and the
    14  committees via electronic transmission. The report shall cover
    15  the immediately preceding academic year and shall include, but
    16  not be limited to:
    17     (1)  Demographic and program data including information on
    18  full-time and part-time faculty and student enrollments, in
    19  total and within curricular areas; dual enrollment
    20  participation; credit hours taught by faculty; distance learning
    21  courses offered; articulation agreements with higher education
    22  institutions; numbers and courses with fewer than twenty (20)
    23  students; numbers and courses with more than fifty (50)
    24  students.
    25     (2)  Student progress and achievement measures including;
    26  retention rates; first time, full-time graduation rates after
    27  two, three and four years; passing rates on certification and
    28  licensure examinations; number of students employed within one
    29  year of program completion; placement into additional education
    30  or employment in the student's field of study.
    20050H0628B2564                 - 59 -     

     1     (3)  Economic and workforce development measures including:
     2  employer satisfaction; customized job training offerings;
     3  employment status; and numbers of businesses and organizations
     4  served.
     5     (b)  Where available, data shall be disaggregated by
     6  categories including gender, race and age.
     7     (c)  The Department of Education, in consultation with the
     8  community colleges, shall annually review the uniform data
     9  collection format and make any revisions deemed necessary.
    10     (d)  Reports required under this section shall be submitted
    11  prior to September 1, 2006, and September 1 of each year
    12  thereafter.
    13     Section 17.  Section 2015-A of the act, added November 12,
    14  1982 (P.L.660, No.188), is amended to read:
    15     Section 2015-A.  Annual Audit.--(a)  The activities of the
    16  system under this article shall be subject to the audit of the
    17  Department of the Auditor General, but the system shall not be
    18  required to pay a fee for any such audit. It shall make an
    19  annual report to the State board and to the General Assembly
    20  showing its condition at the end of the Commonwealth's fiscal
    21  year.
    22     (b)  The system shall report its financial statements in
    23  accordance with generally accepted accounting principles as
    24  prescribed by the National Association of College and University
    25  Business Officers, the American Institute of Certified Public
    26  Accountants or any other recognized authoritative body, as well
    27  as applicable policy and standards promulgated by the
    28  Commonwealth and the Federal Government.
    29     Section 18.  Sections 2003-B(c) and (d) and 2006-B(a)(1) of
    30  the act, amended December 23, 2003 (P.L.304, No.48), are amended
    20050H0628B2564                 - 60 -     

     1  to read:
     2  Section 2003-B.  Qualification and application.
     3     * * *
     4     (c)  Scholarship organizations and pre-kindergarten
     5  scholarship organizations.--A scholarship organization or pre-
     6  kindergarten scholarship organization must certify to the
     7  department that the organization is eligible to participate in
     8  the program established under this article[.] and must agree to
     9  annually report the following information to the department by
    10  December 1, 2005, and September 1 of each year thereafter:
    11         (1)  (i)  The number of scholarships awarded during the
    12         immediately preceding school year to eligible pre-
    13         kindergarten students.
    14             (ii)  The total and average amounts of the
    15         scholarships awarded during the immediately preceding
    16         school year to eligible pre-kindergarten students.
    17             (iii)  The number of scholarships awarded during the
    18         immediately preceding school year to eligible students in
    19         grades K through 8.
    20             (iv)  The total and average amounts of the
    21         scholarships awarded during the immediately preceding
    22         school year to eligible students in grades K through 8.
    23             (v)  The number of scholarships awarded during the
    24         immediately preceding school year to eligible students in
    25         grades 9 through 12.
    26             (vi)  The total and average amounts of the
    27         scholarships awarded during the immediately preceding
    28         school year to eligible students in grades 9 through 12.
    29             (vii)  Where the scholarship organization or pre-
    30         kindergarten scholarship organization collects
    20050H0628B2564                 - 61 -     

     1         information on a county-by-county basis, the total number
     2         and the total amount of scholarships awarded during the
     3         immediately preceding school year to residents of each
     4         county in which the scholarship organization or pre-
     5         kindergarten scholarship organization awarded
     6         scholarships.
     7         (2)  The information required under paragraph (1) shall
     8     be submitted on a form provided by the department. No later
     9     than September 1, 2005, and May 1 of each year thereafter,
    10     the department shall annually distribute such sample forms,
    11     together with the forms on which the reports are required to
    12     be made, to each listed scholarship organization and pre-
    13     kindergarten scholarship organization.
    14         (3)  The department may not require any other information
    15     to be provided by scholarship organizations or pre-
    16     kindergarten scholarship organizations, except as expressly
    17     authorized in this article.
    18     (d)  Educational improvement organization.--
    19         (1)  An application submitted by an educational
    20     improvement organization must describe its proposed
    21     innovative educational program or programs in a form
    22     prescribed by the department. The department shall consult
    23     with the Department of Education as necessary. The department
    24     shall review and approve or disapprove the application. In
    25     order to be eligible to participate in the program
    26     established under this article, an educational improvement
    27     organization must agree to annually report the following
    28     information to the department by December 1, 2005, and
    29     September 1 of each year thereafter:
    30             (i)  The name of the innovative educational program
    20050H0628B2564                 - 62 -     

     1         or programs and the total amount of the grant or grants
     2         made to those programs during the immediately preceding
     3         school year.
     4             (ii)  A description of how each grant was utilized
     5         during the immediately preceding school year and a
     6         description of any demonstrated or expected innovative
     7         educational improvements.
     8             (iii)  The names of the public schools and school
     9         districts where innovative educational programs that
    10         received grants during the immediately preceding school
    11         year were implemented.
    12             (iv)  Where the educational improvement organization
    13         collects information on a county-by-county basis, the
    14         total number and the total amount of grants made during
    15         the immediately preceding school year for programs at
    16         public schools in each county in which the educational
    17         improvement organization made grants.
    18         (2)  The information required under paragraph (1) shall
    19     be submitted on a form provided by the department. No later
    20     than September 1, 2005, and May 1 of each year thereafter,
    21     the department shall annually distribute such sample forms,
    22     together with the forms on which the reports are required to
    23     be made, to each listed educational improvement organization.
    24         (3)  The department may not require any other information
    25     to be provided by educational improvement organizations,
    26     except as expressly authorized in this article.
    27     * * *
    28  Section 2006-B.  Limitations.
    29     (a)  Amount.--
    30         (1)  The total aggregate amount of all tax credits
    20050H0628B2564                 - 63 -     

     1     approved shall not exceed [$40,000,000] $44,000,000 in a
     2     fiscal year. No less than [$26,666,666] $29,333,333 of the
     3     total aggregate amount shall be used to provide tax credits
     4     for contributions from business firms to scholarship
     5     organizations. No less than [$13,333,333] $14,666,666 of the
     6     total aggregate amount shall be used to provide tax credits
     7     for contributions from business firms to educational
     8     improvement organizations.
     9         * * *
    10     Section 19.  Section 2501(9.4) of the act, added July 8, 1989
    11  (P.L.253, No.43), is amended and the section is amended by
    12  adding a clause to read:
    13     Section 2501.  Definitions.--For the purposes of this article
    14  the following terms shall have the following meanings:
    15     * * *
    16     (9.4)  "Municipal Equalized Millage." A city of the first
    17  through third class tax effort to be used for reimbursement
    18  under subsections (d) and (e) of section 2502 and section
    19  2502.11 shall be the amount of municipal taxes collected and
    20  reported to the Department of Community [Affairs] and Economic
    21  Development divided by the real property valuation of the
    22  municipality for the most recent year for which both
    23  municipality tax and real property valuation are available.
    24     * * *
    25     (24)  "Current Expenditure per Average Daily Membership."  An
    26  amount equal to a school district's current expenditures for a
    27  school year to include General Fund expenditures in the
    28  functional classifications of instruction, support services and
    29  operation of non-instructional services, as designated in the
    30  Manual of Accounting and Related Financial Procedures for
    20050H0628B2564                 - 64 -     

     1  Pennsylvania School Systems, divided by the average daily
     2  membership of the school district for the same school year.
     3     Section 20.  Section 2502.13 of the act, amended July 4, 2004
     4  (P.L.536, No.70), is amended to read:
     5     Section 2502.13.  Small District Assistance.--(a)  For the
     6  1984-1985 and 1985-1986 school years, the Commonwealth shall pay
     7  to each school district which has an average daily membership of
     8  one thousand five hundred (1,500) or less and has a market
     9  value/income aid ratio of five thousand ten-thousandths (0.5000)
    10  or greater, an amount equal to fifty dollars ($50) multiplied by
    11  that district's average daily membership. For the 1985-1986
    12  school year, no school district shall receive less on account of
    13  this section than it did for the 1984-1985 school year.
    14     (b)  For the school year 1986-1987, the Commonwealth shall
    15  pay to each school district which has an average daily
    16  membership of one thousand five hundred (1,500) or less and has
    17  a market value/income aid ratio of five thousand ten-thousandths
    18  (0.5000) or greater, or received payments under this section for
    19  the 1985-1986 school year, an amount equal to seventy-five
    20  dollars ($75) multiplied by that district's average daily
    21  membership.
    22     (c)  For the school year 1987-1988, the Commonwealth shall
    23  pay to each school district which has an average daily
    24  membership of one thousand five hundred (1,500) or less and a
    25  market value/income aid ratio of five thousand ten-thousandths
    26  (0.5000) or greater, or received payments under this section for
    27  the 1986-1987 school year, an amount equal to eighty-five
    28  dollars ($85) multiplied by that district's average daily
    29  membership.
    30     (d)  For the school year 1988-1989, the Commonwealth shall
    20050H0628B2564                 - 65 -     

     1  pay to each school district which has an average daily
     2  membership of one thousand five hundred (1,500) or less and a
     3  market value/income aid ratio of five thousand ten-thousandths
     4  (0.5000) or greater, or received payments under this section for
     5  the 1987-1988 or 1988-1989 school year, an amount equal to one
     6  hundred five dollars ($105).
     7     (e)  For the school year 1989-1990, the Commonwealth shall
     8  pay to each school district which has an average daily
     9  membership of one thousand five hundred (1,500) or less and a
    10  market value/income aid ratio of five thousand ten-thousandths
    11  (0.5000) or greater, or received payments under this section for
    12  the 1987-1988 school year, an amount equal to one hundred
    13  fifteen dollars ($115) multiplied by the district's average
    14  daily membership as provided for in section 212 of the act of
    15  July 1, 1990 (P.L.1591, No.7A), known as the "General
    16  Appropriation Act of 1990." For the school year 1990-1991, the
    17  Commonwealth shall pay to each school district which has an
    18  average daily membership of one thousand five hundred (1,500) or
    19  less and a market value/income aid ratio of five thousand ten-
    20  thousandths (0.5000) or greater, or received payments under this
    21  section for the prior school year, an amount equal to one
    22  hundred seventy dollars ($170) multiplied by that district's
    23  average daily membership.
    24     (f)  For the school year 1990-1991, each school district with
    25  a population per square mile of less than ninety (90), which
    26  otherwise meets the average daily membership and market
    27  value/income aid ratio requirements of this section, or received
    28  payments under this section for the prior school year, shall
    29  instead receive an amount equal to one hundred ninety dollars
    30  ($190) multiplied by that district's average daily membership.
    20050H0628B2564                 - 66 -     

     1     (g)  For the 1987-1988 school year through the 1990-1991
     2  school year, no school district shall receive less on account of
     3  this section than it did for the prior school year. For the
     4  school year 1994-1995, the Commonwealth shall pay to each school
     5  district which has an average daily membership of one thousand
     6  five hundred (1,500) or less and a market value/income aid ratio
     7  of five thousand ten-thousandths (0.5000) or greater, an amount
     8  equal to ninety five dollars ($95) multiplied by that district's
     9  average daily membership.
    10     (h)  For each of the school years 1997-1998 through 1999-
    11  2000, the Commonwealth shall pay to each school district which
    12  has an average daily membership of one thousand five hundred
    13  (1,500) or less and a market value/income aid ratio of five
    14  thousand ten-thousandths (0.5000) or greater an amount equal to
    15  seventy-five dollars ($75) multiplied by that district's average
    16  daily membership.
    17     (i)  For the school years 2000-2001, 2001-2002 and 2002-2003,
    18  the Commonwealth shall pay to each school district which has an
    19  average daily membership of one thousand five hundred (1,500) or
    20  less an amount equal to seventy-five dollars ($75) multiplied by
    21  that district's average daily membership.
    22     (j)  For the school year 2003-2004, the Commonwealth shall
    23  pay to each school district which has an average daily
    24  membership of one thousand five hundred (1,500) or less an
    25  amount equal to seventy-five dollars ($75) multiplied by that
    26  district's average daily membership. For the school year 2003-
    27  2004, the Commonwealth shall pay an additional amount to each
    28  school district which has an average daily membership of one
    29  thousand five hundred (1,500) or less and a market value/income
    30  aid ratio of five thousand ten-thousandths (0.5000) or greater
    20050H0628B2564                 - 67 -     

     1  an amount equal to fifty dollars ($50) multiplied by that
     2  district's average daily membership.
     3     (k)  For the school year 2004-2005, the Commonwealth shall
     4  pay to each school district which has an average daily
     5  membership of one thousand five hundred (1,500) or less and a
     6  market value/income aid ratio of five thousand ten thousandths
     7  (0.5000) or greater an amount equal to forty-five dollars ($45)
     8  multiplied by that district's average daily membership.
     9     Section 21.  Section 2502.30 of the act, reenacted and
    10  amended July 4, 2004 (P.L.536, No.70), is reenacted to read:
    11     Section 2502.30.  Temporary Special Aid to School
    12  Districts.--(a)  Temporary special aid shall be paid in fiscal
    13  years 1994-1995, 1995-1996, 1996-1997, 1997-1998, 1998-1999,
    14  1999-2000, 2001-2002, 2002-2003 and 2003-2004 to school
    15  districts experiencing a severe reduction in local revenue due
    16  to a decline in the assessed value of taxable properties. The
    17  allocation to these districts shall be determined by multiplying
    18  the reduction in assessed value between 1985-1986 and 1992-1993
    19  by the 1992-1993 real estate millage rate. This aid shall be
    20  paid from undistributed funds not expended, encumbered or
    21  committed from appropriations for grants and subsidies made to
    22  the Department of Education. No other funds shall be used for
    23  assistance under this section. These funds shall be sufficient
    24  to provide temporary relief to seven school districts in fiscal
    25  year 1995-1996 at seventy-five per centum (75%) of the funds
    26  received in fiscal year 1994-1995, in fiscal year 1996-1997 at
    27  fifty per centum (50%) of the funds received in fiscal year
    28  1994-1995, in fiscal year 1997-1998, 1998-1999 and in fiscal
    29  year 1999-2000 at twenty-five per centum (25%) of the funds
    30  received in fiscal year 1994-1995. For fiscal years 2001-2002,
    20050H0628B2564                 - 68 -     

     1  2002-2003 and 2003-2004 to the extent funds are available as
     2  determined by the Secretary of the Budget, qualifying school
     3  districts shall receive twenty-five per centum (25%) of the
     4  funds received in fiscal year 1994-1995.
     5     (a.1)  (1)  Temporary special aid shall be paid in fiscal
     6  year 2004-2005 out of the appropriation for basic education
     7  funding to school districts to certain school districts that
     8  have experienced severe increases in average daily membership
     9  and in market value/income aid ratio. To qualify for temporary
    10  special aid under this subsection, the school district's 2004-
    11  2005 market value/income aid ratio must be greater than five
    12  thousand two hundred ten thousandths (0.5200), the increase from
    13  the school district's 1991-1992 average daily membership to its
    14  2003-2004 average daily membership must be equal to or greater
    15  than eighteen per centum (18%) and the increase from the school
    16  district's 1991-1992 market value/income aid ratio to its 2003-
    17  2004 market value/income aid ratio must be equal to or greater
    18  than fifteen per centum (15%).
    19     (2)  The allocation to a qualifying school district under
    20  this subsection shall be determined by:
    21     (i)  Subtracting the school district's 1991-1992 average
    22  daily membership from its 2003-2004 average daily membership.
    23     (ii)  Multiplying the difference from subparagraph (i) by
    24  eight million five hundred thousand dollars ($8,500,000).
    25     (iii)  Dividing the product from subparagraph (ii) by the sum
    26  of the differences from subparagraph (i).
    27     (a.2)  (1)  Temporary special aid shall be paid in fiscal
    28  year 2004-2005 out of the appropriation for basic education
    29  funding to school districts to certain school districts that
    30  have extremely high local tax effort. To qualify for temporary
    20050H0628B2564                 - 69 -     

     1  special aid under this subsection, the school district's 2002
     2  equalized millage rate must be equal to or greater than thirty-
     3  three (33) equalized mills and its 2004-2005 market value/income
     4  aid ratio must be equal to or greater than six thousand four
     5  hundred ten thousandths (0.6400).
     6     (2)  The allocation to a qualifying school district under
     7  this subsection shall be determined by:
     8     (i)  Multiplying the school district's 2003-2004 average
     9  daily membership by seven hundred fifty thousand dollars
    10  ($750,000).
    11     (ii)  Dividing the product from subparagraph (i) by the 2003-
    12  2004 average daily membership for all qualifying school
    13  districts.
    14     (b)  Payments made pursuant to subsection (a) shall be paid
    15  from a restricted receipt account, which is hereby established,
    16  for such payments. Funds shall be transferred by the Secretary
    17  of the Budget to the restricted account only to the extent
    18  necessary to make the payments authorized by this section. The
    19  money in the restricted account is hereby appropriated from the
    20  account for purposes of this section.
    21     (c)  This section shall expire June 30, 2005.
    22     Section 22.  The act is amended by adding a section to read:
    23     Section 2502.44.  Basic Education Funding for 2004-2005
    24  School Year.--For the 2004-2005 school year, the Commonwealth
    25  shall pay to each school district a basic education funding
    26  allocation which shall consist of the following:
    27     (1)  An amount equal to the basic education funding
    28  allocation for the 2003-2004 school year pursuant to sections
    29  2502.13, 2502.30(a.1) and (a.2), 2502.43 and 2504.4.
    30     (2)  Where the school district received a grant under section
    20050H0628B2564                 - 70 -     

     1  1709-B during the 2004-2005 school year, but is not eligible to
     2  receive such a grant during the 2005-2006 school year, an amount
     3  equal to the grant amount it received during the 2004-2005
     4  school year multiplied by fifty percent (50%).
     5     (3)  An amount equal to any payment made pursuant to section
     6  2502.10 during the 2004-2005 school year.
     7     (4)  A base supplement calculated as follows:
     8     (i)  If the school district's 2005-2006 market value/income
     9  aid ratio is equal to or greater than seven thousand ten-
    10  thousandths (.7000):
    11     (A)  Multiply the school district's 2005-2006 market
    12  value/income aid ratio by its 2004-2005 average daily
    13  membership.
    14     (B)  Multiply the product from clause (A) by twelve million
    15  five hundred thousand dollars ($12,500,000).
    16     (C)  Divide the product from clause (B) by the sum of the
    17  products of the 2005-2006 market value/income aid ratio
    18  multiplied by the 2004-2005 average daily membership for all
    19  qualifying school districts.
    20     (ii)  If the school district's 2005-2006 market value/income
    21  aid ratio is equal to or greater than five thousand ten-
    22  thousandths (.5000) and less than seven thousand ten-thousandths
    23  (.7000):
    24     (A)  Multiply the school district's 2005-2006 market
    25  value/income aid ratio by its 2004-2005 average daily
    26  membership.
    27     (B)  Multiply the product from clause (A) by forty million
    28  dollars ($40,000,000).
    29     (C)  Divide the product from clause (B) by the sum of the
    30  products of the 2005-2006 market value/income aid ratio
    20050H0628B2564                 - 71 -     

     1  multiplied by the 2004-2005 average daily membership for all
     2  qualifying school districts.
     3     (iii)  If the school district's 2005-2006 market value/income
     4  aid ratio is less than five thousand ten-thousandths (.5000):
     5     (A)  Multiply the school district's 2005-2006 market
     6  value/income aid ratio by its 2004-2005 average daily
     7  membership.
     8     (B)  Multiply the product from clause (A) by five million
     9  five hundred thousand dollars ($5,500,000).
    10     (C)  Divide the product from clause (B) by the sum of the
    11  products of the 2005-2006 market value/income aid ratio
    12  multiplied by the 2004-2005 average daily membership for all
    13  qualifying school districts.
    14     (5)  A temporary special assistance supplement for qualifying
    15  school districts as follows:
    16     (i)  To qualify for the temporary special assistance
    17  supplement, the school district's 2003-2004 current expenditure
    18  per average daily membership must be less than ninety-seven and
    19  eight tenths percent (97.8%) of the 2003-2004 median current
    20  expenditure per average daily membership.
    21     (ii)  The temporary special assistance supplement shall be
    22  calculated for qualifying school districts as follows:
    23     (A)  Multiply the school district's 2004-2005 average daily
    24  membership by its 2005-2006 market value/income aid ratio.
    25     (B)  Multiply the product from clause (A) by the lesser of:
    26     (1)  thirty-five dollars ($35); or
    27     (2)  the difference between the value of ninety-seven and
    28  eight tenths (97.8%) percent of the 2003-2004 median current
    29  expenditure per average daily membership and the school
    30  district's 2003-2004 current expenditure per average daily
    20050H0628B2564                 - 72 -     

     1  membership.
     2     (iii)  If a qualifying school district's 2003 equalized
     3  millage is equal to or greater than twenty and seven tenths
     4  (20.7) equalized mills and less than twenty-four and two tenths
     5  (24.2) equalized mills, it shall receive an additional payment
     6  calculated as follows:
     7     (A)  Multiply the school district's 2004-2005 average daily
     8  membership by the school district's 2005-2006 market
     9  value/income aid ratio.
    10     (B)  Multiply the product from clause (A) by forty-five
    11  dollars ($45).
    12     (iv)  If a qualifying school district's 2003 equalized
    13  millage is equal to or greater than twenty-four and two tenths
    14  (24.2) equalized mills, it shall receive an additional payment
    15  calculated as follows:
    16     (A)  Multiply the school district's 2004-2005 average daily
    17  membership by the school district's 2005-2006 market
    18  value/income aid ratio.
    19     (B)  Multiply the product from clause (A) by fifty-five
    20  dollars ($55).
    21     (v)  A school district that qualifies for the temporary
    22  special assistance supplement under this paragraph shall receive
    23  an amount equal to the sum of the amounts under subparagraphs
    24  (ii), (iii) and (iv).
    25     (6)  A poverty supplement calculated for qualifying school
    26  districts as follows:
    27     (i)  To qualify for the poverty supplement, a school
    28  district's 2005-2006 market value/income aid ratio must be equal
    29  to or greater than six thousand five hundred ten-thousandths
    30  (.6500) and its personal income valuation, when divided by its
    20050H0628B2564                 - 73 -     

     1  2004-2005 average daily membership, must be equal to or less
     2  than one hundred five thousand dollars ($105,000).
     3     (ii)  The poverty supplement shall be calculated for
     4  qualifying school districts as follows:
     5     (A)  Multiply the school district's 2004-2005 average daily
     6  membership by seventeen million dollars ($17,000,000).
     7     (B)  Divide the product from clause (A) by the sum of the
     8  2004-2005 average daily membership for all qualifying school
     9  districts.
    10     (7)  A tax effort supplement calculated for qualifying school
    11  districts as follows:
    12     (i)  To qualify for the tax effort supplement, a school
    13  district's 2003 equalized millage must be equal to or greater
    14  than twenty and eight tenths (20.8) equalized mills.
    15     (ii)  The tax effort supplement shall be calculated for
    16  qualifying school districts as follows:
    17     (A)  Multiply the school district's 2004-2005 average daily
    18  membership by nine million dollars ($9,000,000).
    19     (B)  Divide the product from clause (A) by the sum of the
    20  2004-2005 average daily membership for all qualifying school
    21  districts.
    22     (8)  A growth supplement calculated for qualifying school
    23  districts as follows:
    24     (i)  To qualify for the growth supplement, a school
    25  district's 2004-2005 average daily membership must be greater
    26  than its 2003-2004 average daily membership.
    27     (ii)  The growth supplement shall be calculated for
    28  qualifying school districts as follows:
    29     (A)  Subtract the school district's 2003-2004 average daily
    30  membership from its 2004-2005 average daily membership and
    20050H0628B2564                 - 74 -     

     1  multiply the difference by its 2005-2006 market value/income aid
     2  ratio.
     3     (B)  Multiply the difference from clause (A) by nine million
     4  five hundred thousand dollars ($9,500,000).
     5     (C)  Divide the product from clause (B) by the sum of the
     6  differences from clause (A) for all qualifying school districts.
     7     (9)  Each school district shall receive additional funding as
     8  necessary so that the sum of the amounts under section 2502.13
     9  and paragraphs (4), (5), (6), (7) and (8) and this paragraph
    10  shall equal at least two percent (2%) of the amount in paragraph
    11  (1).
    12     Section 23.  Section 2504.4 of the act is amended by adding a
    13  subsection to read:
    14     Section 2504.4.  Payments on Account of Limited English
    15  Proficiency Programs.--* * *
    16     (a.1)  To qualify for limited English proficiency payments
    17  under this section for the 2004-2005 school year, a school
    18  district's 2005-2006 market value/income aid ratio must be
    19  greater than or equal to three thousand ten thousandths (0.3000)
    20  and the number of enrolled students identified as limited
    21  English proficient in the 2003-2004 school year must be no less
    22  than two percent (2%) of the school district's 2003-2004 average
    23  daily membership. The allocation to a qualified school district
    24  under this section shall be paid in fiscal year 2005-2006 out of
    25  the appropriation for basic education funding to school
    26  districts and determined by:
    27     (1)  multiplying the number of enrolled students identified
    28  as limited English proficient in the 2003-2004 school year in a
    29  qualified school district by three million dollars ($3,000,000);
    30  and
    20050H0628B2564                 - 75 -     

     1     (2)  dividing the product from paragraph (1) by the total
     2  number of enrolled students identified as limited English
     3  proficient in all qualified school districts.
     4     * * *
     5     Section 24.  Sections 2509.1 and 2509.5 of the act are
     6  amended by adding subsections to read:
     7     Section 2509.1.  Payments to Intermediate Units.--* * *
     8     (b.13)  Up to ten million two hundred fifty thousand dollars
     9  ($10,250,000) may be utilized for programs administered and
    10  operated by intermediate units during the 2005-2006 school year
    11  for institutionalized children as established in subsection
    12  (b.1).
    13     * * *
    14     Section 2509.5.  Special Education Payments to School
    15  Districts.--* * *
    16     (pp)  During the 2005-2006 school year, each school district
    17  shall be paid the amount it received during the 2004-2005 school
    18  year under subsections (nn) and (oo).
    19     (qq)  (1)  During the 2005-2006 school year, twenty-one
    20  million one hundred forty-one thousand four hundred forty-three
    21  dollars ($21,141,443) of the funds appropriated to the
    22  Department of Education for special education shall be used to
    23  provide supplemental funding for special education to school
    24  districts under this subsection.
    25     (2)  Each school district shall receive a funding supplement
    26  calculated as follows:
    27     (i)  multiply each school district's 2005-2006 market
    28  value/income aid ratio by sixteen percent (16%) of its 2004-2005
    29  average daily membership;
    30     (ii)  multiply the product from subclause (i) by twenty
    20050H0628B2564                 - 76 -     

     1  million dollars ($20,000,000); and
     2     (iii)  divide the resultant product from subclause (ii) by
     3  the sum of the products of the 2005-2006 market value/income aid
     4  ratio multiplied by sixteen percent (16%) of the 2004-2005
     5  average daily membership for all school districts.
     6     (3)  Each school district for which the supplement under
     7  clause (2) provides an amount less than two percent (2%) of the
     8  sum of the amounts provided under subsections (nn) and (oo)
     9  shall receive additional funding as necessary so that the sum of
    10  the amounts provided under clause (2) and this clause equals two
    11  percent (2%) of the sum of the amounts provided under
    12  subsections (nn) and (oo).
    13     Section 25.  The act is amended by adding a section to read:
    14     Section 2552.1.  Effect of Failure to File Reports.--(a)  The
    15  Department of Education shall order the forfeiture of three
    16  hundred dollars ($300) per day by a school district, charter
    17  school, area vocational-technical school or intermediate unit
    18  that does not submit its annual financial report and annual
    19  budget to the Department of Education within thirty (30) days of
    20  the submittal date established by the Department of Education.
    21  The forfeiture shall continue until a report and annual budget
    22  that meet established criteria are submitted. The Department of
    23  Education shall deduct the amount of the forfeiture from any and
    24  all State payments made to the school district, charter school,
    25  area vocational-technical school or intermediate unit.
    26     (b)  The Department of Education shall order the forfeiture
    27  of three hundred dollars ($300) per day by a school district,
    28  charter school, area vocational-technical school or intermediate
    29  unit that does not submit its pupil membership/child accounting
    30  reports within thirty (30) days of the submittal date
    20050H0628B2564                 - 77 -     

     1  established by the Department of Education. The forfeiture shall
     2  continue until a report that meets established criteria is
     3  submitted. The Department of Education shall deduct the amount
     4  of the forfeiture from any and all State payments made to the
     5  school district, charter school, area vocational-technical
     6  school or intermediate unit.
     7     (c)  The Secretary of Education may waive the forfeiture
     8  requirements under subsection (a) or (b) if the Secretary of
     9  Education is satisfied that extenuating circumstances exist.
    10     (d)  In addition to the forfeiture provided under subsections
    11  (a) and (b) and notwithstanding any other provision of law to
    12  the contrary, the Department of Education may initiate the
    13  following professional disciplinary actions against a chief
    14  school administrator in accordance with the provisions and
    15  procedures set forth in the act of December 12, 1973 (P.L.397,
    16  No.141), known as the "Professional Educator Discipline Act,"
    17  for failure to submit the annual financial report and annual
    18  budget or pupil membership/child accounting reports within sixty
    19  (60) days of the submittal date established by the Department of
    20  Education:
    21     (1)  Action to suspend for a period of one year the letter of
    22  eligibility of a superintendent for the first violation of this
    23  subsection.
    24     (2)  Action to suspend for a period of one year or revoke the
    25  letter of eligibility of a superintendent for the second or
    26  subsequent violation of this subsection.
    27     (3)  Action to suspend for a period of one year the relevant
    28  administrative certificate held by a chief school administrator
    29  of a school entity, as the term "school entity" is defined by
    30  the "Professional Educator Discipline Act" for the first
    20050H0628B2564                 - 78 -     

     1  violation of this subsection.
     2     (4)  Action to suspend for a period of one year or revoke the
     3  relevant administrative certificate held by a chief school
     4  administrator of a school entity, as the term "school entity" is
     5  defined by the "Professional Educator Discipline Act" for the
     6  second or subsequent violation of this subsection.
     7     (5)  In the event that the chief school administrator is not
     8  certified/certificated, action to prohibit the individual from
     9  being employed in a similar position, including the temporary
    10  rescission of any letters of eligibility or waivers to hold such
    11  position, for a period of one year for the first violation of
    12  this subsection.
    13     (6)  In the event that the chief school administrator is not
    14  certified/certificated, action to prohibit the individual from
    15  being employed in a similar position, including rescission of
    16  any letters of eligibility or waivers to hold such position, or
    17  temporary rescission of any letters of eligibility or waivers to
    18  hold such position for a period of one year, for the second or
    19  subsequent violation of this subsection.
    20     Section 26.  Section 2574(e) of the act, amended July 10,
    21  1987 (P.L.286, No.50), is amended, subsections (b) and (c) are
    22  amended by adding paragraphs and the section is amended by
    23  adding subsections to read:
    24     Section 2574.  Approved Reimbursable Rental for Leases
    25  Hereafter Approved and Approved Reimbursable Sinking Fund
    26  Charges on Indebtedness.--* * *
    27     (b)  For new school buildings the approved building
    28  construction cost shall be the lesser of
    29     * * *
    30     (4)  For school buildings for which the general construction
    20050H0628B2564                 - 79 -     

     1  contract is awarded subsequent to January 1, 2005, and for
     2  approved school building projects for which the general
     3  construction contract was awarded but for which a lease or
     4  general obligation bond resolution was not approved by the
     5  Department of Education prior to January 1, 2005, the product of
     6  the rated pupil capacity as determined by the Department of
     7  Education at the time the project is approved and (i) four
     8  thousand seven hundred dollars ($4,700) in the case of
     9  elementary schools, (ii) six thousand two hundred dollars
    10  ($6,200) in the case of secondary schools, (iii) an amount in
    11  the case of combined elementary-secondary schools obtained by
    12  multiplying the rated elementary pupil capacity by four thousand
    13  seven hundred dollars ($4,700) and the rated secondary pupil
    14  capacity by six thousand two hundred dollars ($6,200) and
    15  dividing the sum by the total rated pupil capacity.
    16     (b.1)  For school buildings constructed and based on an
    17  approved school facility design received from the Department of
    18  Education's school facility design clearinghouse, for which the
    19  general construction contract is awarded subsequent to January
    20  1, 2005, and for approved school building projects for which the
    21  general construction contract was awarded but for which a lease
    22  or general obligation bond resolution was not approved by the
    23  Department of Education prior to January 1, 2005, the approved
    24  building construction cost shall additionally include the
    25  product of the rated pupil capacity as determined by the
    26  Department of Education at the time the project is approved and
    27  (i) four hundred seventy dollars ($470) in the case of
    28  elementary schools, (ii) six hundred twenty dollars ($620) in
    29  the case of secondary schools, (iii) an amount in the case of
    30  combined elementary-secondary schools obtained by multiplying
    20050H0628B2564                 - 80 -     

     1  the rated elementary pupil capacity by four hundred seventy
     2  dollars ($470) and the rated secondary pupil capacity by six
     3  hundred twenty dollars ($620) and dividing the sum by the total
     4  rated pupil capacity.
     5     (c)  For additions or alterations to existing buildings
     6  approved building construction cost shall be the lesser of
     7     * * *
     8     (4)  For school buildings for which the general construction
     9  contract is awarded subsequent to January 1, 2005, and for
    10  approved school building projects for which the general
    11  construction contract was awarded but for which a lease or
    12  general obligation bond resolution was not approved by the
    13  Department of Education prior to January 1, 2005, the difference
    14  obtained by subtracting the appraisal value of the existing
    15  building from the product of the rated pupil capacity of the
    16  altered or expanded building as determined by the Department of
    17  Education at the time the project is approved and (i) four
    18  thousand seven hundred dollars ($4,700) in the case of
    19  elementary schools, (ii) six thousand two hundred dollars
    20  ($6,200) in the case of secondary schools, (iii) an amount in
    21  the case of combined elementary-secondary schools obtained by
    22  multiplying the rated elementary pupil capacity by four thousand
    23  seven hundred dollars ($4,700) and the rated secondary pupil
    24  capacity by six thousand two hundred dollars ($6,200) and
    25  dividing the sum by the total rated pupil capacity of the
    26  altered or expanded building.
    27     * * *
    28     (c.3)  For school buildings for which the general
    29  construction contract is awarded on or after January 1, 2005,
    30  and for approved school building projects for which the general
    20050H0628B2564                 - 81 -     

     1  construction contract was awarded but for which a lease or
     2  general obligation bond resolution was not approved by the
     3  Department of Education prior to January 1, 2005, and where the
     4  general construction contract alters or adds to an existing
     5  school building, the approved building construction cost shall
     6  additionally include the difference obtained by subtracting the
     7  appraisal value of the existing building from the product of the
     8  rated pupil capacity of the altered or expanded building as
     9  determined by the Department of Education at the time the
    10  project is approved and (i) four hundred seventy dollars ($470)
    11  in the case of elementary schools, (ii) six hundred twenty
    12  dollars ($620) in the case of secondary schools, (iii) an amount
    13  in the case of combined elementary-secondary schools obtained by
    14  multiplying the rated elementary pupil capacity by four hundred
    15  seventy dollars ($470) and the rated secondary pupil capacity by
    16  six hundred twenty dollars ($620) and dividing the sum by the
    17  total rated pupil capacity.
    18     (c.4)  For school buildings for which the general
    19  construction contract is awarded on or after January 1, 2005,
    20  and for approved school building projects for which the general
    21  construction contract was awarded but for which a lease or
    22  general obligation bond resolution was not approved by the
    23  Department of Education prior to January 1, 2005, and where the
    24  school building receives a silver, gold or platinum
    25  certification from the United States Green Building Council's
    26  Leadership in Energy and Environmental Design Green Building
    27  Rating System on or after January 1, 2005, the Department of
    28  Education shall adjust the approved building construction cost
    29  to additionally include the product of the rated pupil capacity
    30  as determined by the Department of Education at the time the
    20050H0628B2564                 - 82 -     

     1  project is approved and (i) four hundred seventy dollars ($470)
     2  in the case of elementary schools, (ii) six hundred twenty
     3  dollars ($620) in the case of secondary schools, (iii) an amount
     4  in the case of combined elementary-secondary schools obtained by
     5  multiplying the rated elementary pupil capacity by four hundred
     6  seventy dollars ($470) and the rated secondary pupil capacity by
     7  six hundred twenty dollars ($620) and dividing the sum by the
     8  total rated pupil capacity. The Department of Education in
     9  consultation with the Governor's Green Government Council shall
    10  issue guidelines to carry out this section.
    11     (c.5)  Reimbursement for an approved school construction
    12  project shall not exceed total project costs.
    13     * * *
    14     (e)  For area vocational-technical school and technical
    15  institute projects leased subsequent to July 1, 1964, by or for
    16  lease to a board of school directors authorized to operate such
    17  a school, the Department of Education shall calculate an
    18  approved reimbursable rental charge.
    19     For area vocational-technical school and technical institute
    20  projects constructed or purchased subsequent to July 1, 1964, by
    21  a board of school directors authorized to operate such a school,
    22  the Department of Education may calculate an approved
    23  reimbursable sinking fund charge.
    24     Approved reimbursable rental or sinking fund charge shall
    25  consist of that part of the annual rental or sinking fund
    26  attributable to:
    27     (1)  Cost of acquiring land and preparing it for use to the
    28  extent that such costs are deemed reasonable by the Department
    29  of Education and the interest on such cost of acquisition, cost
    30  of preparation and the cost of sewage treatment and the interest
    20050H0628B2564                 - 83 -     

     1  on such cost.
     2     (2)  Machinery, apparatus, furniture and equipment and all
     3  other necessary expenses and interest charges, but excluding
     4  architects' fees in excess of six percent of the construction
     5  cost.
     6     The approved building construction cost and the interest on
     7  such construction cost shall not exceed the product of the rated
     8  full-time pupil capacity, as determined by the Department of
     9  Education at the time the project is approved and two thousand
    10  two hundred dollars ($2,200).
    11     The provisions of the foregoing paragraph shall apply to all
    12  school building projects for which the general construction
    13  contract is awarded prior to July 1, 1966, and for approved
    14  school building projects for which a lease was approved by the
    15  Department of Education prior to July 1, 1966. For school
    16  buildings for which the general construction contract is awarded
    17  subsequent to July 1, 1966, and for approved school building
    18  projects for which the general construction contract was awarded
    19  but for which a lease was not approved by the Department of
    20  Education prior to July 1, 1966, the approved building
    21  construction cost and the interest on such construction cost
    22  shall not exceed the product of the rated full-time pupil
    23  capacity, as determined by the Department of Education at the
    24  time the project is approved, and three thousand seven hundred
    25  dollars ($3700).
    26     For school buildings for which the general construction
    27  contract is awarded subsequent to July 1, 1984, and for approved
    28  school building projects for which the general construction
    29  contract was awarded but for which a lease or general obligation
    30  bond resolution was not approved by the Department of Education
    20050H0628B2564                 - 84 -     

     1  prior to July 1, 1984, the approved building construction cost
     2  and the interest on such construction cost shall not exceed the
     3  product of the rated full-time pupil capacity, as determined by
     4  the Department of Education at the time the project is approved,
     5  and six thousand three hundred dollars ($6,300).
     6     For school buildings for which the general construction
     7  contract is awarded subsequent to January 1, 2005, and for
     8  approved school building projects for which the general
     9  construction contract was awarded but for which a lease or
    10  general obligation bond resolution was not approved by the
    11  Department of Education prior to January 1, 2005, the approved
    12  building construction cost shall not exceed the product of the
    13  rated full-time pupil capacity, as determined by the Department
    14  of Education at the time the project is approved, and seven
    15  thousand six hundred dollars ($7,600).
    16     The Department of Education shall not approve the expenditure
    17  of any funds borrowed or obtained by the sale of bonds by any
    18  authority, nonprofit corporation, profit corporation, company or
    19  individual for construction of area vocational-technical schools
    20  or technical institutes for bleachers, athletic field, lighting
    21  equipment or apparatus used to promote and conduct
    22  interscholastic athletics.
    23     * * *
    24     Section 27.  Section 2599.2(b) of the act, added December 23,
    25  2003 (P.L.304, No.48), is amended and the section is amended by
    26  adding a subsection to read:
    27     Section 2599.2.  Pennsylvania Accountability Grants.--* * *
    28     (b)  The grant shall be used by a school district to attain
    29  or maintain academic performance targets. Funds obtained under
    30  this section may be used for any of the following:
    20050H0628B2564                 - 85 -     

     1     (1)  Establishing, maintaining or expanding a quality pre-
     2  kindergarten program aligned with the current academic standards
     3  contained in 22 Pa. Code Ch. 4 (relating to academic standards
     4  and assessment).
     5     (2)  Establishing, maintaining or expanding a quality full-
     6  day kindergarten program aligned with the current academic
     7  standards contained in 22 Pa. Code Ch. 4. Such programs shall be
     8  kept open for five hours each day for the full school term as
     9  provided in section 1501. The board of school directors of a
    10  school district may offer a full-day kindergarten program to
    11  children who are between four and six years old.
    12     (3)  Establishing, maintaining or expanding a class size
    13  reduction program. Such class size reduction program shall
    14  appoint and assign a minimum of one teacher for every 17
    15  students or two teachers for every 35 students enrolled in a
    16  kindergarten, first, second or third grade classroom. All
    17  teachers appointed and assigned to teach kindergarten, first,
    18  second or third grade shall be certified in accordance with 22
    19  Pa. Code Ch. 49 (relating to certification of professional
    20  personnel) or its successors. The department shall establish
    21  guidelines to assure that no school district satisfies the
    22  requirements of this paragraph by making a reduction in, and
    23  subsequent increase to, current teacher complement. For purposes
    24  of this paragraph, the phrase "one teacher for every 17 students
    25  or two teachers for every 35 students enrolled in a
    26  kindergarten, first, second or third grade classroom" shall
    27  refer to the number of teachers conducting a class at any one
    28  time in a classroom containing the applicable number of
    29  students.
    30     (4)  Establishing, expanding or maintaining programs that
    20050H0628B2564                 - 86 -     

     1  promote the availability, coordination, integration and
     2  utilization of social and health services, associated resources
     3  and ancillary resources to meet the needs of children and
     4  families in addressing issues that may serve to limit student
     5  academic achievement.
     6     (5)  Notwithstanding the provisions of Article XV-C,
     7  providing tutoring assistance[.] during the normal school day
     8  and hours of the school district, provided that the tutoring is
     9  in addition to and does not interfere with a student's regularly
    10  scheduled classroom instruction times and does not supplant
    11  services required in a student's individualized education
    12  program.
    13     (6)  Improving the academic performance of subgroups
    14  identified under section 1111(b) of the No Child Left Behind Act
    15  of 2001.
    16     (7)  Establishing, expanding or maintaining programs to
    17  assist in the building of strong science and applied-knowledge
    18  skills.
    19     (8)  Providing additional programs for continuing
    20  professional education that may include any of the following:
    21  training in mathematics, science and literacy-specific
    22  curriculum and instructional strategies; training in school-wide
    23  improvement planning; analysis of student achievement data,
    24  including student work and the implications for classroom
    25  practice; observing and studying exemplary school and classroom
    26  practices; implementing school-wide programs and classroom
    27  management strategies designed to improve student conduct; using
    28  technology to boost student achievement; conducting transition
    29  planning and curriculum alignment across schools and grade
    30  levels; or implementing secondary strategies to increase student
    20050H0628B2564                 - 87 -     

     1  engagement and personalize learning.
     2     (9)  Establishing, expanding or maintaining math and literacy
     3  coaching programs within schools to improve math and reading
     4  instruction.
     5     (10)  Providing financial incentives to highly qualified,
     6  tenured teachers to work in the most academically challenged
     7  schools in a school district or providing financial incentives
     8  to aid in the recruitment of certificated teachers in
     9  mathematics, science, language arts or English as a second
    10  language to work in the most academically challenged schools in
    11  a school district.
    12     (11)  Providing such other programs or activities that the
    13  board of school directors of a school district determines are
    14  essential to achieving or maintaining academic performance
    15  targets through the year 2014.
    16     (b.1)  No subcontract between a school district and a
    17  nonprofit organization entered into for the provision of a
    18  program or services pursuant to this section may abrogate
    19  provisions of a collective bargaining agreement between the
    20  nonprofit organization and its employes.
    21     * * *
    22     Section 28.  Chapter 15 of the act of December 18, 2001
    23  (P.L.949, No.114), known as the Workforce Development Act, is
    24  repealed to the extent of any inconsistency with the amendment
    25  or addition of sections 1901-A(4), 1913-A(b)(1), (c) and (k),
    26  1917-A and 1918-A of the act.
    27     Section 29.  The provisions of this act are severable. If any
    28  provision of this act or its application to any person or
    29  circumstance is held invalid, the invalidity shall not affect
    30  other provisions or applications of this act which can be given
    20050H0628B2564                 - 88 -     

     1  effect without the invalid provision or application.
     2     Section 30.  This act shall be retroactive as follows:
     3         (1)  The amendment of section 1205.2(a), (h), (j.1),
     4     (j.2) and (o) of the act shall be retroactive to April 15,
     5     2005.
     6         (2)  The addition of section 1714-B(n) of the act shall
     7     be retroactive to May 1, 2005.
     8         (3)  The reenactment of section 2502.30 of the act shall
     9     be retroactive to July 1, 2004.
    10     Section 31.  This act shall take effect as follows:
    11         (1)  The addition or amendment of sections 687(a) and
    12     1216 of the act shall take effect in 60 days.
    13         (2)  The remainder of this act shall take effect
    14     immediately.











    B9L24DMS/20050H0628B2564        - 89 -