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        PRIOR PRINTER'S NOS. 512, 1089, 1223          PRINTER'S NO. 1236

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 485 Session of 2001


                     Report of the Committee of Conference

        To the Members of the Senate and House of Representatives:

           We, the undersigned, Committee of Conference on the part of
        the Senate and House of Representatives for the purpose of
        considering Senate Bill No. 485, 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 teachers' and
        employees' retirement plans,"



        respectfully submit the following bill as our report:

                                           DAVID J. BRIGHTBILL

                                           JAMES J. RHOADES

                                           ALLYSON Y. SCHWARTZ

                                  (Committee on the part of the Senate.)

                                           SAMUEL H. SMITH

                                           JESS M. STAIRS

                                           PHYLLIS MUNDY

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


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    20010S0485B1236                  - 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 for definitions and
     6     for classification of school districts; providing for public
     7     schools that provide Internet instruction and for national
     8     assessment tests; further providing for school directors'
     9     business relations with school district, for management
    10     information reports, for distressed first class school
    11     districts, for instructional equipment, for duty to employ
    12     qualified professionals, for continuing professional
    13     development, for proof of residency, for cost of tuition, for
    14     maintenance of certain exceptional children in approved
    15     institutions, for agricultural education, for funding for
    16     charter schools, for financial program and reimbursement on
    17     payments and for additions to or removals from the education
    18     empowerment list; providing for the use of certain
    19     undistributed funds and for the dissolution of certain
    20     community colleges; further providing for teachers' and
    21     employees' retirement plans, for payments on account of
    22     pupils enrolled in vocational curriculums, for vocational
    23     education equipment grants, for community college support and
    24     for small district assistance; providing for basic education
    25     funding for the 2001-2002 school year; further providing for
    26     payments to intermediate units and temporary assistance to
    27     school districts losing revenue from reassessments; and
    28     providing for approved reimbursable annual rental for leases
    29     of buildings and facilities for charter school use.

    30     The General Assembly of the Commonwealth of Pennsylvania
    31  hereby enacts as follows:
    32     Section 1.  Section 102(6) of the act of March 10, 1949
    33  (P.L.30, No.14), known as the Public School Code of 1949, added
    34  May 10, 2000 (P.L.44, No.16), is amended to read:
    35     Section 102.  Definitions.--When used in this act the
    36  following words and phrases shall have the following meanings:
    37     * * *
    38     (6)  "Pennsylvania System of School Assessment test" or "PSSA
    39  test" shall mean a test developed and implemented by the
    40  Department of Education to determine only academic achievement
    41  relating to objective academic standards in the areas of
    42  reading, writing, mathematics and science.
    43     Section 2.  The act is amended by adding a section to read:
    20010S0485B1236                  - 3 -

     1     Section 113.  Study of Public Schools that Provide Internet
     2  Instruction.--(a)  The Department of Education shall conduct a
     3  study of public schools that provide instruction primarily
     4  through the Internet. The study shall include:
     5     (1)  a review of academic accountability methods and systems;
     6     (2)  a summary of governance structures, approval processes
     7  and oversight mechanisms of each public school that provides
     8  instruction primarily through the Internet;
     9     (3)  an analysis and verification of the actual and
    10  reasonable instructional cost per student for each public school
    11  that provides instruction primarily through the Internet; and
    12     (4)  recommendations regarding funding alternatives.
    13     (b)  The Department of Education shall prepare a report that
    14  includes its findings and recommendations from the study and
    15  shall provide the report to the chairman and the minority
    16  chairman of the Education Committee of the Senate and the
    17  chairman and minority chairman of the Education Committee of the
    18  House of Representatives by October 30, 2001.
    19     (c)  In the event that the report required under subsection
    20  (b) is not provided by October 30, 2001, no school district
    21  shall pay to any public school that provides instruction
    22  primarily through the Internet an amount to exceed two thousand
    23  dollars ($2,000) per resident student enrolled.
    24     Section 3.  Section 202 of the act, amended December 9, 1980
    25  (P.L.1123, No.199) and December 19, 1980 (P.L.1314, No.237), is
    26  amended to read:
    27     Section 202.  Classification.--The several school districts
    28  of the Commonwealth are hereby divided into five classes, as
    29  follows:
    30     Each school district having a population of [one million five
    20010S0485B1236                  - 4 -

     1  hundred thousand (1,500,000)] one million (1,000,000), or more,
     2  shall be a school district of the first class;
     3     Each school district having a population of [three hundred
     4  fifty thousand (350,000)] two hundred fifty thousand (250,000),
     5  or more, but of less than [one million five hundred thousand
     6  (1,500,000)] one million (1,000,000), shall be a school district
     7  of the first class A;
     8     Each school district having a population of thirty thousand
     9  (30,000), or more, but of less than [three hundred fifty
    10  thousand (350,000)] two hundred fifty thousand (250,000), shall
    11  be a school district of the second class;
    12     Each school district having a population of five thousand
    13  (5,000), or more, but of less than thirty thousand (30,000),
    14  shall be a school district of the third class.
    15     Each school district having a population of less than five
    16  thousand (5,000) shall be a school district of the fourth class.
    17     Section 4.  The act is amended by adding a section to read:
    18     Section 219.  National Assessment Tests.--A school district
    19  selected to participate in a national assessment of public
    20  school students' education progress authorized by the Federal
    21  Department of Education shall administer the assessment.
    22     Section 5.  Section 324 of the act, amended January 18, 1968
    23  (1967 P.L.963, No.429), is amended to read:
    24     Section 324.  Not to be Employed by or do Business with
    25  District; Exceptions.--(a)  No school director shall, during the
    26  term for which he was elected or appointed, as a private person
    27  engaged in any business transaction with the school district in
    28  which he is elected or appointed, be employed in any capacity by
    29  the school district in which he is elected or appointed, or
    30  receive from such school district any pay for services rendered
    20010S0485B1236                  - 5 -

     1  to the district except as provided in this act: Provided, That
     2  one who has served as a school director for two consecutive
     3  terms, of six years each, may be elected to the position of
     4  attorney or solicitor for the board of which he was a member by
     5  the unanimous vote of all the other members of the board, and,
     6  after resigning his office as school director, shall be entitled
     7  to receive such pay for his services as solicitor as the board
     8  of school directors may determine: Provided, however, That a
     9  school director may be appointed to the position of secretary to
    10  the board of a school district of the second class, of which he
    11  was a member during the term for which he was elected or
    12  appointed upon the unanimous consent of all the other members of
    13  the board after resigning his office as school director, and he
    14  shall be entitled to receive such pay for his services as
    15  secretary as the board of school directors shall determine: And
    16  provided further, That one who has served as a school director
    17  may, after resigning from office as a school director, be
    18  elected to the position of teacher by the board of which he was
    19  a member by a vote of at least two-thirds of all other members
    20  of the board and shall be entitled to receive such pay for his
    21  services as a teacher as the board of school directors may
    22  lawfully determine.
    23     (b)  No school board shall draw, cause to be drawn or accept
    24  a specification for any item to be purchased by the school
    25  district that would limit the purchase of the item to the firm,
    26  corporation, partnership or other business entity of which a
    27  school director is an officer, agent or employe and exclude all
    28  other persons who could submit quotations or bid on an
    29  equivalent item.
    30     (c)  It shall not be a violation of this section for a school
    20010S0485B1236                  - 6 -

     1  district to contract for the purchase of goods or services from
     2  a business with which a school director is associated, to the
     3  extent permitted by and in compliance with 65 Pa.C.S. Ch. 11
     4  (relating to ethics standards and financial disclosure).
     5     Section 6.  Section 613 of the act is amended by adding a
     6  subsection to read:
     7     Section 613.  Management Information Reports.--* * *
     8     (f)  Beginning with the 2001-2002 school year and each school
     9  year thereafter, the mandatory reporting requirements of this
    10  section shall apply, as prescribed by the department, to area
    11  vocational-technical schools, intermediate units and charter
    12  schools to the extent that funding is available. Area
    13  vocational-technical schools, intermediate units and charter
    14  schools shall apply for funding in a form and manner prescribed
    15  by the department.
    16     Section 7.  Section 696(k)(1) of the act is repealed.
    17     Section 8.  Section 923-A heading, (c) and (d) of the act,
    18  amended or added July 12, 1972 (P.L.863, No.195), August 1, 1975
    19  (P.L.183, No.90) and August 24, 1977 (P.L.199, No.59), are
    20  amended to read:
    21     Section 923-A.  Loan of Textbooks, Instructional Materials
    22  and Instructional Equipment, Nonpublic School Children.--* * *
    23     (c)  Loan of Textbooks [and], Instructional Materials and
    24  Instructional Equipment. The Secretary of Education directly, or
    25  through the intermediate units, shall have the power and duty to
    26  purchase textbooks [and], instructional materials and
    27  instructional equipment and, upon individual request, to loan
    28  them to all children residing in the Commonwealth who are
    29  enrolled in grades kindergarten through twelve of a nonpublic
    30  school. Such textbooks [and], instructional materials and
    20010S0485B1236                  - 7 -

     1  instructional equipment shall be loaned free to such children
     2  subject to such rules and regulations as may be prescribed by
     3  the Secretary of Education, due regard being had to the
     4  feasibility of making loans of particular instructional
     5  materials and instructional equipment on an individual basis.
     6     (d)  Purchase of Textbooks [and], Instructional Materials and
     7  Instructional Equipment. The secretary shall not be required to
     8  purchase or otherwise acquire textbooks, pursuant to this
     9  section, the total cost of which, in any school year, shall
    10  exceed an amount equal to twelve dollars ($12) for the school
    11  year 1973-1974, fifteen dollars ($15) for the school year
    12  beginning July 1, 1974 and twenty dollars ($20) for each school
    13  year thereafter or instructional materials and instructional
    14  equipment, the total cost of which, in any school year, shall
    15  exceed an amount equal to ten dollars ($10), multiplied by the
    16  number of children residing in the Commonwealth who on the first
    17  day of October of the school year immediately preceding are
    18  enrolled in grades kindergarten through twelve of a nonpublic
    19  school.
    20     Section 9.  Section 1106 of the act, amended June 24, 1981
    21  (P.L.109, No.36), is amended to read:
    22     Section 1106.  Duty to Employ.--The board of school directors
    23  in every school district shall employ the necessary qualified
    24  professional employes, substitutes and temporary professional
    25  employes to keep the public schools open in their respective
    26  districts in compliance with the provisions of this act. Except
    27  for school districts of the first class and first class A which
    28  may require residency requirements for other than professional
    29  employes, substitutes and temporary professional employes, no
    30  other school district shall require an employe to reside within
    20010S0485B1236                  - 8 -

     1  the school district as a condition for appointment or continued
     2  employment.
     3     Section 10.  Section 1113(b.1) of the act, amended August 5,
     4  1991 (P.L.219, No.25), is amended to read:
     5     Section 1113.  Transferred Programs and Classes.--* * *
     6     (b.1)  Professional employes who are classified as teachers
     7  and who are not transferred with the classes to which they are
     8  assigned or who have received a formal notice of suspension
     9  shall form a pool of employes within the school entity. No new
    10  professional employe who is classified as a teacher shall be
    11  employed by a school entity assuming program responsibility for
    12  transferred students while there is:
    13     (1)  a properly certificated professional employe who is
    14  classified as a teacher suspended in the receiving entity; or
    15     (2)  if no person is qualified under clause (1), a properly
    16  certificated member of the school entity pool who is willing to
    17  accept employment with the school entity assuming program
    18  responsibility for transferred students. Members of the pool
    19  shall have the right to refuse employment offers from such
    20  school entity and remain in the pool. [Refusal to accept work
    21  under this subsection shall not be grounds for denial of
    22  unemployment compensation under sections 401 and 402 of the act
    23  of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known
    24  as the "Unemployment Compensation Law."] For purposes of
    25  sections 401 and 402 of the act of December 5, 1936 (2nd
    26  Sp.Sess., 1937 P.L.2897, No.1), known as the "Unemployment
    27  Compensation Law," an employer policy is hereby established
    28  under which members of the pool are not required to accept
    29  employment offers from the school entity assuming program
    30  responsibility for transferred students.
    20010S0485B1236                  - 9 -

     1     * * *
     2     Section 11.  Sections 1205.1(c) and (e) and 1205.2(k) of the
     3  act, amended or added November 23, 1999 (P.L.529, No.48) and May
     4  10, 2000 (P.L.44, No.16), are amended to read:
     5     Section 1205.1.  Continuing Professional Development.--* * *
     6     (c)  The professional education plan of each school entity
     7  shall be designed to meet the educational needs of that school
     8  entity and its professional employes. A school entity shall
     9  annually review its plan to determine whether or not it
    10  continues to reflect the needs of the school entity and its
    11  strategic plan and the needs of its professional employes,
    12  students and the community. The plan shall be amended as
    13  necessary to ensure that the plan meets the requirements of this
    14  subsection. The plan shall specify the continuing professional
    15  educational courses, programs, activities and other learning
    16  experiences approved to meet continuing professional development
    17  requirements under section 1205.2(c)[.], including efforts
    18  designed to improve teacher knowledge in subject areas covering
    19  the academic standards listed in 22 Pa. Code Ch. 4 (relating to
    20  academic standards and assessment).
    21     * * *
    22     (e)  The requirements of this section and section 1205.2 do
    23  not apply to a professional educator not employed by a school
    24  entity who serves as an evaluator of a home education program
    25  authorized under section 1327.1(e)(2) or who provides private
    26  tutoring services as part of a home education program under
    27  section 1327.1.
    28     Section 1205.2.  Program of Continuing Professional
    29  Education.--* * *
    30     (k)  A professional educator who is not employed by a school
    20010S0485B1236                 - 10 -

     1  entity as a professional or temporary professional employe may
     2  apply to the department for inactive certification. Inactive
     3  certification shall:
     4     (1)  Suspend the requirements of this section until inactive
     5  certification is removed by the department. Upon the removal of
     6  inactive certification, a professional educator shall have the
     7  same number of hours of continuing professional education and
     8  the same amount of time in which to complete those hours as
     9  existed for the professional educator at the time inactive
    10  certification was granted.
    11     (2)  Be removed by the department upon the application of the
    12  professional educator and evidence of the completion of thirty
    13  (30) hours of continuing professional education within the
    14  immediate preceding twelve (12) months. The department shall
    15  establish guidelines to approve courses that will authorize the
    16  removal of inactive certification.
    17     (3)  Disqualify an individual from being employed by a school
    18  entity as a professional or temporary employe. An individual
    19  with inactive certification may be employed as a [temporary]
    20  substitute teacher, principal, superintendent or assistant
    21  superintendent, in accordance with the endorsement on the
    22  individual's certificate or letter of eligibility, for no more
    23  than ninety (90) days during a school year.
    24     * * *
    25     Section 12.  Section 1302 of the act, amended June 25, 1997
    26  (P.L.297, No.30), is amended to read:
    27     Section 1302.  Residence and Right to Free School
    28  Privileges.--A child shall be considered a resident of the
    29  school district in which his parents or the guardian of his
    30  person resides. Federal installations are considered a part of
    20010S0485B1236                 - 11 -

     1  the school district or districts in which they are situate and
     2  the children residing on such installations shall be counted as
     3  resident pupils of the school district. When a resident of any
     4  school district keeps in his home a child of school age, not his
     5  own, supporting the child gratis as if it were his own, such
     6  child shall be entitled to all free school privileges accorded
     7  to resident school children of the district, including the right
     8  to attend the public high school maintained in such district or
     9  in other districts in the same manner as though such child were
    10  in fact a resident school child of the district, and shall be
    11  subject to all the requirements placed upon resident school
    12  children of the district. Before such child may be accepted as a
    13  pupil, such resident shall file with the secretary of the board:
    14     (1)  appropriate legal documentation to show dependency or
    15  guardianship; or
    16     (2)  a sworn statement that he is a resident of the district,
    17  that he is supporting the child gratis, that he will assume all
    18  personal obligations for the child relative to school
    19  requirements, and that he intends to so keep and support the
    20  child continuously and not merely through the school term. The
    21  school board, pursuant to guidelines issued by the Department of
    22  Education, may require other reasonable information to be
    23  submitted by the resident to substantiate the sworn statement.
    24     Section 13.  Section 1329 of the act, amended December 28,
    25  1959 (P.L.2021, No.742), is amended to read:
    26     Section 1329.  Excuses from Attending School.--(a)  The board
    27  of school directors of any school district may, upon
    28  certification by any licensed practitioner of the healing arts
    29  or upon any other satisfactory evidence being furnished to it,
    30  showing that any child or children are prevented from attending
    20010S0485B1236                 - 12 -

     1  school, or from application to study, on account of any mental,
     2  physical, or other urgent reasons, excuse such child or children
     3  from attending school as required by the provisions of this act,
     4  but the term "urgent reasons" shall be strictly construed and
     5  shall not permit of irregular attendance. In every such case,
     6  such action by the board of school directors shall not be final
     7  until the approval of the Department of Public Instruction has
     8  been obtained. Every principal or teacher in any public,
     9  private, or other school may, for reasons enumerated above,
    10  excuse any child for non-attendance during temporary periods.
    11     (b)  Pursuant to the requirements of 22 Pa. Code § 11.41
    12  (relating to school district polices and rules), the board of
    13  school directors shall formally adopt, as part of its written
    14  rules governing pupil absences and excusals, a policy permitting
    15  a student to be excused for participation in a project sponsored
    16  by an organization that is eligible to apply for a grant under
    17  section 5(3) of the act of July 8, 1986 (P.L.437, No.92), known
    18  as the "Pennsylvania Agricultural Fair Act."
    19     Section 14.  Section 1376(a) of the act, amended June 7, 1993
    20  (P.L.49, No.16), is amended to read:
    21     Section 1376.  Cost of Tuition and Maintenance of Certain
    22  Exceptional Children in Approved Institutions.--(a)  When any
    23  child between school entry age and twenty-one (21) years of age
    24  and resident in this Commonwealth, who is blind or deaf, or has
    25  cerebral palsy and/or neurological impairment and/or muscular
    26  dystrophy and/or is mentally retarded and/or has a serious
    27  emotional disturbance and/or has autism/pervasive developmental
    28  disorder and is enrolled, with the approval of the Department of
    29  Education, as a pupil in an approved private school approved by
    30  the Department of Education, in accordance with standards and
    20010S0485B1236                 - 13 -

     1  regulations promulgated by the State Board of Education, the
     2  school district in which such child is resident or for students
     3  placed by a charter school, the charter school in which the
     4  student was enrolled shall pay the greater of either twenty per
     5  centum (20%) of the actual audited cost of tuition and
     6  maintenance of such child in such school, as determined by the
     7  Department of Education, or its "tuition charge per elementary
     8  pupil" or its "tuition charge per high school pupil," as
     9  calculated pursuant to section 2561 and the Commonwealth shall
    10  pay, out of funds appropriated to the department for special
    11  education, the balance due for the costs of such child's tuition
    12  and maintenance, as determined by the department. For the school
    13  years 1989-1990, 1990-1991 and 1991-1992, the school district
    14  payment shall be no greater than forty percent (40%) of the
    15  actual audited costs of tuition and maintenance of such child in
    16  such school. For the 1992-1993 school year and each school year
    17  thereafter, the school district or charter school payment shall
    18  be the greater of forty percent (40%) of the actual audited
    19  costs of tuition and maintenance of such child in such school,
    20  as determined by the Department of Education, or its "tuition
    21  charge per elementary pupil" or its "tuition charge per high
    22  school pupil," as calculated pursuant to section 2561, and the
    23  Commonwealth shall pay, out of funds appropriated to the
    24  department for approved private schools, the balance due for the
    25  costs of such child's tuition and maintenance, as determined by
    26  the department. The department will credit the district of
    27  residence with average daily membership for such child
    28  consistent with the rules of procedure developed in accordance
    29  with section 2501. If the residence of such child in a
    30  particular school district cannot be determined, the
    20010S0485B1236                 - 14 -

     1  Commonwealth shall pay, out of moneys appropriated to the
     2  department for special education, the whole cost of tuition and
     3  maintenance of such child. The Department of Education shall be
     4  provided with such financial data from approved private schools
     5  as may be necessary to determine the reasonableness of costs for
     6  tuition and room and board concerning Pennsylvania resident
     7  approved reimbursed students. The Department of Education shall
     8  evaluate such data and shall disallow any cost deemed
     9  unreasonable. Any costs deemed unreasonable by the Department of
    10  Education for disallowance shall be considered an adjudication
    11  within the meaning of Title 2 of the Pa.C.S. (relating to
    12  administrative law and procedure) and regulations promulgated
    13  thereunder.
    14     * * *
    15     Section 15.  Section 1311-A of the act, added November 22,
    16  2000 (P.L.672, No.91), is amended to read:
    17     Section 1311-A.  Standing.--(a)  If a student in a school
    18  district of the first class is a victim of an act of violence
    19  involving a weapon on school property and the student who
    20  possessed the weapon was not expelled under section 1317.2, the
    21  parent or guardian of the victim shall have standing to
    22  institute a legal proceeding to obtain expulsion of the student.
    23     (b)  The Office of General Counsel shall have standing to
    24  bring an action on behalf of a victim or the parent or guardian
    25  of a victim of an act of violence in a school in a school
    26  district of the first class to modify, clarify or eliminate a
    27  consent decree that is related to discipline in the district if,
    28  in consultation with the advocate, the Office of General Counsel
    29  believes that the action is in the best interests of the
    30  students of the school district.
    20010S0485B1236                 - 15 -

     1     (c)  The Secretary of [the Budget] Education in consultation
     2  with the General Counsel may designate a portion of the funds
     3  provided for the safe schools advocate for contracts for legal
     4  services to assist low-income parents or guardians of victims to
     5  obtain legal services for proceedings under subsection (a). The
     6  Secretary of [the Budget] Education in consultation with the
     7  General Counsel may designate a portion of the funds provided
     8  for the advocate to challenge a consent decree under subsection
     9  (b) or to bring an action under sections 1310-A(c)(5) and 1312-
    10  A(a). The designation of attorneys to receive funds under this
    11  subsection shall be within the discretion of the Office of
    12  General Counsel after consultation with the safe schools
    13  advocate. Designated funds which are not expended under this
    14  subsection shall lapse to the General Fund.
    15     (d)  Legal proceedings under this section shall be conducted
    16  by an attorney designated by the Office of General Counsel in
    17  consultation with the safe schools advocate. The attorney must
    18  be a member of the bar in good standing.
    19     (e)  The appropriation for the Office of School Victim
    20  Advocate in section 202 of the act of May 24, 2000 (P.L.1086,
    21  No.21A), known as the "General Appropriation Act of 2000," shall
    22  be used to implement this section and sections 1310-A and 1312-
    23  A.
    24     (f)  As used in this section, "low-income parent or guardian"
    25  shall mean a parent whose family income is no greater than two
    26  hundred fifty per centum (250%) of the Federal poverty level.
    27     Section 16.  Section 1613 of the act, amended December 15,
    28  1986 (P.L.1602, No.178), is amended to read:
    29     Section 1613.  High School Certificates.--(a)  The board of
    30  school directors, joint board of joint school committee
    20010S0485B1236                 - 16 -

     1  operating any high school shall issue a certificate to each
     2  pupil satisfactorily completing the prescribed course of
     3  instruction in the high school.
     4     (b)  For those pupils graduating at the close of the school
     5  year 1989-1990, and each school year thereafter, the following
     6  minimum courses in grades nine through twelve are established as
     7  a requirement for high school graduation in schools operated by
     8  a bona fide church or other religious body:
     9     (1)  Four years of English.
    10     (2)  Three years of mathematics.
    11     (3)  Three years of science.
    12     (4)  Three years of social studies.
    13     (5)  Two years of arts and humanities.
    14     (c)  A child enrolled in a day or boarding school accredited
    15  by an accrediting association which is approved by the State
    16  Board of Education shall be deemed to have met the requirements
    17  of subsection (b).
    18     (d)  The Department of Education, in a form and manner that
    19  it shall prescribe, may issue a Commonwealth secondary school
    20  diploma to an individual confined in a State-operated juvenile
    21  or adult correctional facility located within this Commonwealth
    22  if the individual has completed the required secondary school
    23  curriculum specified by the department. If a Commonwealth
    24  secondary school diploma is not issued, the department may award
    25  academic credit for completed coursework.
    26     Section 17.  Section 1725-A(c) of the act, added June 19,
    27  1997 (P.L.225, No.22), is amended to read:
    28     Section 1725-A.  Funding for Charter Schools.--* * *
    29     (c)  The Commonwealth shall create a grant program to provide
    30  temporary transitional funding to a school district due to the
    20010S0485B1236                 - 17 -

     1  budgetary impact relating to any [student attending] student's
     2  first-year attendance at a charter school. [A school district
     3  that approves one or more charter schools may apply for a grant
     4  under this subsection.] The department shall develop criteria
     5  which shall include, but not be limited to, the overall fiscal
     6  impact on the budget of the school district resulting from
     7  students of a school district attending a charter school. The
     8  criteria shall be published in the Pennsylvania Bulletin.
     9  [Payments under this subsection shall be made for the first year
    10  of operation of the charter school. The authority to make grants
    11  under this subsection shall expire on June 30, 1999.] This
    12  subsection shall not apply to a public school converted to a
    13  charter school under section 1717-A(b). Grants shall be limited
    14  to funds appropriated for this purpose.
    15     * * *
    16     Section 18.  Section 1704-B(a)(2) of the act, added May 10,
    17  2000 (P.L.44, No.16), is amended to read:
    18     Section 1704-B.  Board of School Directors.--(a)  The board
    19  of school directors shall implement the school district
    20  improvement plan. Notwithstanding any other provision of law to
    21  the contrary, the board of school directors of a school district
    22  on the education empowerment list may do any of the following
    23  consistent with the school district improvement plan:
    24     * * *
    25     (2)  Designate any school of the district as an independent
    26  school operating under an agreement with the board of school
    27  directors, granting operational control to the governing body of
    28  the independent school. The governing body of the independent
    29  school, including its membership and selection process, shall be
    30  established by the board of school directors. The governing body
    20010S0485B1236                 - 18 -

     1  shall include representatives of parents and teachers. A school
     2  designated as independent under this paragraph shall have the
     3  authority to decide all matters related to the operation of the
     4  school, including the exercise of powers provided under this
     5  article. The agreement between the board of school directors and
     6  the independent school shall do the following, consistent with
     7  the school district improvement plan:
     8     (i)  Describe the governance structure of the independent
     9  school, including the method for the selection of members to the
    10  governing body.
    11     (ii)  Prescribe the educational goals and mission of the
    12  independent school and the curriculum to be offered.
    13     (iii)  Describe the academic, fiscal and other goals and
    14  objectives for which the independent school will be held
    15  accountable and the evaluation criteria and procedures that will
    16  be employed to determine whether the school is meeting its goals
    17  and objectives.
    18     (iv)  Grant the independent school allocation of and control
    19  over its funding and budget. [An independent school shall be
    20  considered a charter school for purposes of funding pursuant to
    21  section 1725-A.] The independent school's funding shall be
    22  determined by the agreement.
    23     (v)  Grant the independent school control of the educational
    24  program and curriculum.
    25     (vi)  Prescribe the authority of the independent school to
    26  establish working conditions, select and assign professional and
    27  nonprofessional employes, establish nonteaching duties, extend
    28  the length of the school year and schedule of the school day,
    29  including holding class after regular hours.
    30     (vii)  Define the terms under which the agreement may be
    20010S0485B1236                 - 19 -

     1  terminated, extended or renewed.
     2     * * *
     3     Section 19.  Section 1705-B(h) of the act, amended November
     4  22, 2000 (P.L.672, No.91), is amended to read:
     5     Section 1705-B.  Education Empowerment Districts.--* * *
     6     (h)  (1)  A board of control established under section 692
     7  shall be abolished upon certification of the school district as
     8  an education empowerment district. The school district shall be
     9  operated by a board of control established under subsection (a).
    10  The secretary may appoint the same individuals serving on the
    11  board of control under section 692 to the board of control under
    12  subsection (b).
    13     (2)  Sections 691 and 692 shall not apply to a school
    14  district certified as an education empowerment district.
    15     (3)  For a school district with a history of low test
    16  performance that is certified as distressed for a minimum period
    17  of two (2) years under sections 691 and 692, the department
    18  shall waive the inclusion of the school district on the
    19  education empowerment list under section 1703-B(a) and
    20  immediately certify the school district as an education
    21  empowerment district.
    22     (4)  The department may utilize up to $2,000,000 of
    23  undistributed funds not expended, encumbered or committed from
    24  appropriations for grants and subsidies made to the department
    25  to assist school districts certified as an education empowerment
    26  district under paragraph (3). There is hereby established a
    27  restricted account from which payments under this paragraph
    28  shall be paid. Funds shall be transferred by the Secretary of
    29  the Budget to the restricted account to the extent necessary to
    30  make payments under this paragraph. Funds in the restricted
    20010S0485B1236                 - 20 -

     1  account are hereby appropriated to carry out the purposes of
     2  this paragraph. This paragraph shall apply to fiscal years 2000-
     3  2001 and 2001-2002 and shall expire June 30, 2002.
     4     Section 20.  Section 1714-B of the act is amended by adding
     5  subsections to read:
     6     Section 1714-B.  Mandate Waiver Program.--* * *
     7     (l)  Beginning with the 2001-2002 school year, intermediate
     8  unit boards of directors and area vocational-technical boards
     9  shall be eligible to apply for mandate waivers under this
    10  section except for those in subsections (g) and (m).
    11     (m)  The following provisions shall not be subject to waiver
    12  for intermediate unit boards of directors and area vocational-
    13  technical schools pursuant to this section: Article IX-A and
    14  Article XVIII.
    15     Section 21.  Section 1855 of the act, added May 10, 2000
    16  (P.L.44, No.16), is amended to read:
    17     Section 1855.  Vocational Education Equipment Grants.--For
    18  the 2000-2001 fiscal year and the 2001-2002 fiscal year, the
    19  Department of Education shall establish a grant program to
    20  assist area vocational-technical schools [and], school districts
    21  offering approved vocational-technical programs and the Thaddeus
    22  Stevens State College of Technology in purchasing equipment that
    23  meets industry standards for the purpose of providing training
    24  to students. Grants shall be limited to the purchase of
    25  equipment in the following program areas: automotive technology,
    26  auto body, diesel technology, precision machine technology,
    27  heating ventilation and air conditioning, printing, dental
    28  assisting, electronics, building trades and other program areas
    29  approved by the Secretary of Education. Grants shall be awarded
    30  by the Department of Education on a matching basis, two State
    20010S0485B1236                 - 21 -

     1  dollars ($2) for every local dollar ($1), and shall be limited
     2  to funds appropriated for that purpose.
     3     Section 22.  Section 1913-A heading and (b)(1) and (1.4) of
     4  the act, amended or added July 1, 1985 (P.L.103, No.31), June 7,
     5  1993 (P.L.49, No.16) and May 10, 2000 (P.L.44, No.16), are
     6  amended to read:
     7     Section 1913-A.  Financial Program; Reimbursement [or] of
     8  Payments.--* * *
     9     (b)  (1)  [For the 1993-1994 fiscal year and for each fiscal
    10  year thereafter, the] The Commonwealth shall pay to a community
    11  college on behalf of the sponsor on account of its operating
    12  costs during the fiscal year from funds appropriated for that
    13  purpose an amount equal to:
    14     (i)  for the 1993-1994 fiscal year through the 2000-2001
    15  fiscal year the lesser of such college's variable State share
    16  ceiling as determined in clause (1.3) or such college's
    17  equivalent full-time student reimbursement as determined in
    18  clause (1.4)[.]; and
    19     (ii)  for the 2001-2002 fiscal year and each fiscal year
    20  thereafter, the college's equivalent full-time student
    21  reimbursement as determined in clause (1.4).
    22     * * *
    23     (1.4)  The equivalent full-time student reimbursement of a
    24  community college shall be the sum of credit course, noncredit
    25  course and stipend reimbursements. These reimbursements shall be
    26  calculated using a reimbursement factor of one thousand and
    27  forty dollars ($1,040) for the 1993-1994 fiscal year, of one
    28  thousand eighty dollars ($1,080) for the 1994-1995 fiscal year
    29  and of one thousand one hundred eighty dollars ($1,180) for the
    30  1995-1996 fiscal year and one thousand and two hundred and ten
    20010S0485B1236                 - 22 -

     1  dollars ($1,210) for the 1996-1997 fiscal year and one thousand
     2  two hundred sixty dollars ($1,260) for the 1997-1998 fiscal year
     3  and the 1998-1999 fiscal year and one thousand three hundred
     4  dollars ($1,300) for the 1999-2000 fiscal year and one thousand
     5  four hundred dollars ($1,400) for the 2000-2001 fiscal year and
     6  one thousand five hundred dollars ($1,500) for the 2001-2002
     7  fiscal year and for each year thereafter and shall be determined
     8  as follows:
     9     (i)  Credit course reimbursement shall be calculated by
    10  multiplying the reimbursement factor by the number of equivalent
    11  full-time students enrolled in credit courses as determined by
    12  an audit to be made in a manner prescribed by the State Board of
    13  Education.
    14     (ii)  Noncredit course reimbursement shall be calculated as
    15  follows:
    16     (A)  eighty percent (80%) of the reimbursement factor
    17  multiplied by the number of equivalent full-time students
    18  enrolled in eligible noncredit courses for the 1993-1994 fiscal
    19  year, as determined by the audit referred to in paragraph (i);
    20     (B)  seventy percent (70%) of the reimbursement factor
    21  multiplied by the number of equivalent full-time students
    22  enrolled in eligible noncredit courses for the 1994-1995 fiscal
    23  year and for each year thereafter, as determined by the audit
    24  referred to in paragraph (i); or
    25     (C)  one hundred percent (100%) of the reimbursement factor
    26  multiplied by the number of equivalent full-time students
    27  enrolled in eligible noncredit public safety courses that
    28  provide training for volunteer firefighters and emergency
    29  medical services for the 1995-1996 fiscal year and for each year
    30  thereafter, as determined by the audit referred to in paragraph
    20010S0485B1236                 - 23 -

     1  (i).
     2     (iii)  Stipend reimbursement on account of a community
     3  college's operating costs for all equivalent full-time students
     4  enrolled in the following categories of two-year or less than
     5  two-year occupational or technical programs, shall be the sum of
     6  the following:
     7     (A)  One thousand one hundred dollars ($1,100) per full-time
     8  equivalent student enrolled in advanced technology programs. For
     9  the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
    10  reimbursement rate shall be calculated at one thousand one
    11  hundred seventy-five dollars ($1,175) per full-time equivalent
    12  student enrolled in advanced technology programs. For the fiscal
    13  year 1998-1999 and each year thereafter, the reimbursement rate
    14  shall be calculated at one thousand four hundred sixty dollars
    15  ($1,460) per full-time equivalent student enrolled in advanced
    16  technology programs. Advanced technology programs are programs
    17  using new or advanced technologies which hold promise for
    18  creating new job opportunities, including such fields as
    19  robotics, biotechnology, specialized materials and engineering
    20  and engineering-related programs.
    21     (B)  One thousand dollars ($1,000) per full-time equivalent
    22  student enrolled in programs designated as Statewide programs.
    23  For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
    24  reimbursement rate shall be calculated at one thousand seventy-
    25  five dollars ($1,075) per full-time equivalent student enrolled
    26  in programs designated as Statewide programs. For the fiscal
    27  year 1998-1999 and each year thereafter, the reimbursement rate
    28  shall be calculated at one thousand three hundred sixty dollars
    29  ($1,360) per full-time equivalent student enrolled in programs
    30  designated as Statewide programs. A Statewide program is a
    20010S0485B1236                 - 24 -

     1  program which meets one or more of the following criteria:
     2     (I)  Program enrollment from out-of-sponsor area is twenty
     3  per cent or more of the enrollment for the program.
     4     (II)  A consortial arrangement exists with another community
     5  college to cooperatively operate a program or share regions in
     6  order to avoid unnecessary program duplication.
     7     (C)  Five hundred dollars ($500) per full-time equivalent
     8  student enrolled in other occupational or technical programs.
     9  For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
    10  reimbursement rate shall be calculated at five hundred seventy-
    11  five dollars ($575) per full-time equivalent student enrolled in
    12  other occupational or technical programs. For the fiscal year
    13  1998-1999 and each year thereafter, the reimbursement rate shall
    14  be calculated at eight hundred sixty dollars ($860) per full-
    15  time equivalent student enrolled in other occupational or
    16  technical programs.
    17     * * *
    18     Section 23.  The act is amended by adding sections to read:
    19     Section 1914-A.  A Dissolution of Certain Community
    20  Colleges.--(a)  Notwithstanding the provisions of section 1910-
    21  A, any community college that was approved as a community
    22  college by the State Board of Education after January 1, 1990,
    23  may be dissolved after a determination by the Secretary of
    24  Education that the majority of the education and training
    25  programs operated by the college are non-academic in nature and
    26  upon notice of said determination to the community college.
    27     (b)  Upon the Secretary of Education's notice as described in
    28  subsection (a), a dissolved community college shall cease to be
    29  a public instrumentality. If the dissolved community college
    30  desires to continue to offer degree programs, provide
    20010S0485B1236                 - 25 -

     1  specialized job training or provide professional development
     2  training, those programs must be transferred to a corporate
     3  successor organized as a nonprofit corporation under 15 Pa.C.S.
     4  (relating to corporations and unincorporated associations).
     5     (c)  The corporate successor of a dissolved community college
     6  shall continue to have the authority to grant associate degrees
     7  and certificates in those programs in which the dissolved
     8  community college had the authority to grant degrees during the
     9  last complete school year of operation as a community college.
    10  If a corporate successor desires to offer additional associate
    11  degree programs, it must apply to the Department of Education to
    12  obtain approval in accordance with applicable regulations. If a
    13  corporate successor desires to offer additional certificates, it
    14  shall apply for licensure to the State Board of Private Licensed
    15  Schools. A corporate successor of a dissolved community college
    16  is not authorized to award baccalaureate degrees.
    17     (d)  All indebtedness of any community college dissolved
    18  under this section shall be transferred to and become the
    19  responsibility of its corporate successor. Nothing in this
    20  section shall be construed so as to waive the obligations or
    21  debts of any dissolved community college to any entity other
    22  than the Commonwealth. Any indebtedness of a dissolved community
    23  college to the Commonwealth or to the department, determined
    24  pursuant to audits of the dissolved community college conducted
    25  under section 1913-A(k), shall be deferred for one fiscal year
    26  subsequent to dissolution. Thereafter the amount and terms of
    27  repayment of the indebtedness to the Commonwealth shall be
    28  determined by the Secretary of the Budget.
    29     (e)  Any Work Force Development Challenge grant awarded to a
    30  dissolved community college prior to dissolution shall be
    20010S0485B1236                 - 26 -

     1  transferred to and become an asset of its corporate successor.
     2     (f)  The Commonwealth shall retain the right to have access
     3  to and the authority to review financial records of any
     4  community college dissolved under this section, including
     5  records created up through dissolution until such time as all
     6  information required to be reviewed under section 1913-A(k) has
     7  been reviewed and any indebtedness owed to the Commonwealth has
     8  been repaid. Any audits prepared as a result of the review
     9  conducted under this section must be completed and issued to the
    10  corporate successor of a dissolved community college within one
    11  year of dissolution.
    12     Section 1915-A.  Work Force Development Courses.--No later
    13  than January 1, 2002, the Department of Education shall, in
    14  consultation with the community colleges and the State Workforce
    15  Investment Board, establish criteria to identify noncredit
    16  courses which emphasize work force development and for which
    17  additional reimbursement may be required above the current
    18  noncredit reimbursement factor. The department shall also
    19  provide an estimate of the number of equivalent full-time
    20  students enrolled in noncredit courses which emphasize work
    21  force development had these criteria been in effect in the 2000-
    22  2001 fiscal year. This information shall be furnished to the
    23  chairman and minority chairman of the Appropriations and
    24  Education Committees of the Senate and the chairman and minority
    25  chairman of the Appropriations and Education Committees of the
    26  House of Representatives.
    27     Section 24.  Section 2013-A of the act, added November 12,
    28  1982 (P.L.660, No.188), is amended to read:
    29     Section 2013-A.  Teachers' and Employes' Retirement Plans.--
    30  Pursuant to the provisions of 24 Pa.C.S. § 8301 (relating to
    20010S0485B1236                 - 27 -

     1  mandatory and optional membership), all professional and other
     2  employes of the system and its institutions shall be accorded
     3  the right to elect participation in the Pennsylvania Public
     4  School Employees' Retirement System or the State Employees'
     5  Retirement System. Alternatively, eligible employes shall have
     6  the right to elect participation in the Teachers' Insurance and
     7  Annuity Association of America--College Retirement Equities Fund
     8  (TIAA-CREF) retirement plan[.], or in an alternative retirement
     9  plan or plans offered by any insurance company authorized to
    10  issue annuity contracts in this Commonwealth, or mutual fund
    11  company with investment options meeting the requirements of a
    12  qualified plan under the Internal Revenue Code of 1986 (Public
    13  Law 99-514, 26 U.S.C. § 1 et seq.). The alternative retirement
    14  plans shall be selected by the system pursuant to the request-
    15  for-proposal process.
    16     Section 25.  Section 2501(14.1) of the act, amended June 7,
    17  1993 (P.L.49, No.16), is amended to read:
    18     Section 2501.  Definitions.--For the purposes of this article
    19  the following terms shall have the following meanings:
    20     * * *
    21     (14.1)  "Market Value/Income Aid Ratio." For purposes of
    22  reimbursement to a school district under subsections (d), (e),
    23  and (f) of section 2502, section 2502.8, section 2502.22,
    24  section 2502.25, section 2502.26 and section 2592, or to an
    25  intermediate unit or area vocational-technical school, shall be
    26  the Commonwealth's method of determining the combined market
    27  value and income wealth for each pupil, and shall be computed,
    28  for the school year for which reimbursement is being paid, as
    29  follows:
    30     (a)  (i)  Divide the market value per weighted average daily
    20010S0485B1236                 - 28 -

     1  membership of the district, intermediate unit or area
     2  vocational-technical school by the market value per weighted
     3  average daily membership of the State;
     4     (ii)  Determine the product of (a)(i) multiplied by .5;
     5     (iii)  Subtract the resultant product in (a)(ii) from 1.000
     6  to determine the market value portion of the aid ratio.
     7     (iv)  For purposes of the calculation described in (a)(i)
     8  through (a)(iii), the market value of a district shall be the
     9  real property valuation of the district for the calendar year
    10  that concluded during the school year immediately preceding the
    11  school year for which reimbursement is being paid. The market
    12  value of an intermediate unit or area vocational-technical
    13  school shall be the sum of the real property valuations of each
    14  of its component districts for the calendar year that concluded
    15  during the school year immediately preceding the school year for
    16  which reimbursement is being paid. The weighted average daily
    17  membership of a district shall be the weighted average daily
    18  membership for the school year immediately preceding the school
    19  year for which reimbursement is being paid. The weighted average
    20  daily membership of an intermediate unit or area vocational-
    21  technical school shall be the sum of the weighted average daily
    22  memberships of each of its component districts for the school
    23  year immediately preceding the school year for which
    24  reimbursement is being paid.
    25     (b)  (i)  Divide the income per weighted average daily
    26  membership of the district, the intermediate unit or area
    27  vocational-technical school by the average personal income per
    28  weighted average daily membership of the State;
    29     (ii)  Determine the product of (b)(i) multiplied by .5;
    30     (iii)  Subtract the resultant product in (b)(ii) from 1.000
    20010S0485B1236                 - 29 -

     1  to determine the income aid ratio.
     2     (iv)  For purposes of the calculation described in (b)(i)
     3  through (b)(iii), the income of a district shall be the personal
     4  income valuation of the district. The income of an intermediate
     5  unit or area vocational-technical school shall be the sum of the
     6  personal income valuations of each of its component districts.
     7  The weighted average daily membership of the district shall be
     8  the weighted average daily membership for the school year
     9  immediately preceding the school year for which reimbursement is
    10  being paid. The weighted average daily membership of an
    11  intermediate unit or area vocational-technical school shall be
    12  the sum of the weighted average daily memberships of each of its
    13  component districts for the school year immediately preceding
    14  the school year for which reimbursement is being paid.
    15     (c)  Add sixty percent (60%) of the market value aid ratio to
    16  forty percent (40%) of the income aid ratio to determine the
    17  market value/income aid ratio.
    18     (d)  For payments beginning in the 1989-1990 school year and
    19  each school year thereafter, the Department of Education shall
    20  utilize an adjusted personal income valuation for the 1987 tax
    21  year and each tax year thereafter respectively in computing the
    22  market value/income aid ratio for such districts. The adjusted
    23  personal income valuation shall be calculated by dividing the
    24  total out-of-State tax credits claimed by the residents of a
    25  school district by the State personal income tax rate and
    26  subtracting that amount from the total personal income valuation
    27  for the individual school district. The State total personal
    28  income valuation shall remain that as certified by the
    29  Department of Revenue and shall not be adjusted to reflect out-
    30  of-State tax credits.
    20010S0485B1236                 - 30 -

     1     (e)  For the purpose of determining payments for the 1999-
     2  2000 school year and each school year thereafter, the department
     3  shall utilize the following calculation for any school district
     4  where the personal income as determined by the Department of
     5  Revenue under Article III, section 303(a)(3), (4), (7) or (8) of
     6  the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
     7  Code of 1971," increases by at least one thousand percent
     8  (1,000%) over such income reported for the prior tax year: the
     9  total personal income used to determine the personal income aid
    10  ratio and market value/personal income aid ratio shall be
    11  calculated using an amount for personal income as determined by
    12  the Department of Revenue under Article III, section 303(a)(3),
    13  (4), (7) or (8) of the "Tax Reform Code of 1971," that is ten
    14  percent (10%) higher than such income reported for the prior tax
    15  year.
    16     * * *
    17     Section 26.  Sections 2502.8 and 2502.13 of the act, amended
    18  or added July 10, 1986 (P.L.1270, No.117), June 26, 1999
    19  (P.L.394, No.36) and May 10, 2000 (P.L.44, No.16), are amended
    20  to read:
    21     Section 2502.8.  Payments on Account of Pupils Enrolled in
    22  Vocational Curriculums.--(a)  For the purpose of reimbursement
    23  in accordance with this section, vocational curriculums are
    24  agriculture education, distributive education, health
    25  occupations education, home economics education (gainful),
    26  business education, technical education, trade and industrial
    27  education, or any other occupational oriented program approved
    28  by the Secretary of Education.
    29     (b)  For the 1981-1982 school year through the 1984-1985
    30  school year, each school district so entitled shall be paid, in
    20010S0485B1236                 - 31 -

     1  addition to any other subsidy to which it is entitled, an amount
     2  on account of resident pupils enrolled in vocational
     3  curriculums[--and], for the 1985-1986 school year [and each
     4  school year thereafter] through the 1999-2000 school year, each
     5  school district and area vocational-technical school shall be
     6  paid an amount on account of students enrolled in vocational
     7  curriculums[--] for the 2000-2001 school year and each school
     8  year thereafter, each school district, area vocational-technical
     9  school and charter school shall be paid an amount on account of
    10  students enrolled in vocational curriculums, determined as
    11  follows:
    12     (1)  Determine the increase in the weighted average daily
    13  membership by multiplying the number of students in average
    14  daily membership in vocational curriculums in area vocational-
    15  technical schools by twenty-one hundredths (.21) and the number
    16  of students in average daily membership in school district and
    17  charter school vocational curriculums by seventeen hundredths
    18  (.17).
    19     (2)  Multiply the lesser of the district's actual instruction
    20  expense per weighted average daily membership or the base earned
    21  for reimbursement by the market value/income aid ratio or by
    22  three hundred seventy-five thousandths (.375), whichever is
    23  greater.
    24     (3)  Multiply the increase in weighted average daily
    25  membership determined in clause (1) by the result of clause (2).
    26     (4)  For the 1985-1986 [school year and each school year
    27  thereafter] through 1999-2000 school years, the Commonwealth
    28  shall pay the amount required by this section to the school
    29  district or area vocational-technical school which provides the
    30  program upon which reimbursement is based.
    20010S0485B1236                 - 32 -

     1     (5)  For the 2000-2001 school year and each school year
     2  thereafter, the Commonwealth shall pay the amount required under
     3  this section to the school district, area vocational-technical
     4  school or charter school which provides the programs upon which
     5  reimbursement is based.
     6     (c)  For the school year 1998-1999 [and each school year
     7  thereafter], any additional funding provided by the Commonwealth
     8  over the amount provided for the school year 1997-1998 will be
     9  distributed to area vocational-technical schools and to school
    10  districts with eight (8) or more vocational programs based on
    11  subsection (b).
    12     (d)  For the school year 1999-2000 [and each school year
    13  thereafter], any additional funding provided by the Commonwealth
    14  over the amount provided for the school year 1998-1999 will be
    15  distributed to area vocational-technical schools, to school
    16  districts with eight (8) or more vocational programs and to
    17  school districts offering a vocational agricultural education
    18  program, based on subsection (b).
    19     (e)  For the school year 2000-2001 and each school year
    20  thereafter, any additional funding provided by the Commonwealth
    21  over the amount provided for the school year 1998-1999 will be
    22  distributed to area vocational-technical schools, to school
    23  districts and charter schools with eight (8) or more vocational
    24  programs and to school districts and charter schools offering a
    25  vocational-agricultural education program based on subsection
    26  (b).
    27     Section 2502.13.  Small District Assistance.--For the 1984-
    28  1985 and 1985-1986 school years, the Commonwealth shall pay to
    29  each school district which has an average daily membership of
    30  one thousand five hundred (1,500) or less and has a market
    20010S0485B1236                 - 33 -

     1  value/income aid ratio of five thousand ten-thousandths (0.5000)
     2  or greater, an amount equal to fifty dollars ($50) multiplied by
     3  that district's average daily membership. For the 1985-1986
     4  school year, no school district shall receive less on account of
     5  this section than it did for the 1984-1985 school year. For the
     6  school year 1986-1987, the Commonwealth shall pay to each school
     7  district which has an average daily membership of one thousand
     8  five hundred (1,500) or less and has a market value/income aid
     9  ratio of five thousand ten-thousandths (0.5000) or greater, or
    10  received payments under this section for the 1985-1986 school
    11  year, an amount equal to seventy-five dollars ($75) multiplied
    12  by that district's average daily membership. For the school year
    13  1987-1988, the Commonwealth shall pay to each school district
    14  which has an average daily membership of one thousand five
    15  hundred (1,500) or less and a market value/income aid ratio of
    16  five thousand ten-thousandths (0.5000) or greater, or received
    17  payments under this section for the 1986-1987 school year, an
    18  amount equal to eighty-five dollars ($85) multiplied by that
    19  district's average daily membership. For the school year 1988-
    20  1989, the Commonwealth shall pay to each school district which
    21  has an average daily membership of one thousand five hundred
    22  (1,500) or less and a market value/income aid ratio of five
    23  thousand ten thousandths (0.5000) or greater, or received
    24  payments under this section for the 1987-1988 or 1988-1989
    25  school year, an amount equal to one hundred five dollars ($105).
    26  For the school year 1989-1990, the Commonwealth shall pay to
    27  each school district which has an average daily membership of
    28  one thousand five hundred (1,500) or less and a market
    29  value/income aid ratio of five thousand ten-thousandths (0.5000)
    30  or greater, or received payments under this section for the
    20010S0485B1236                 - 34 -

     1  1987-1988 school year, an amount equal to one hundred fifteen
     2  dollars ($115) multiplied by the district's average daily
     3  membership as provided for in section 212 of the act of July 1,
     4  1990 (P.L.1591, No.7A), known as the "General Appropriation Act
     5  of 1990." For the school year 1990-1991, the Commonwealth shall
     6  pay to each school district which has an average daily
     7  membership of one thousand five hundred (1,500) or less and a
     8  market value/income aid ratio of five thousand ten-thousandths
     9  (0.5000) or greater, or received payments under this section for
    10  the prior school year, an amount equal to one hundred seventy
    11  dollars ($170) multiplied by that district's average daily
    12  membership. For the school year 1990-1991, each school district
    13  with a population per square mile of less than ninety (90),
    14  which otherwise meets the average daily membership and market
    15  value/income aid ratio requirements of this section, or received
    16  payments under this section for the prior school year, shall
    17  instead receive an amount equal to one hundred ninety dollars
    18  ($190) multiplied by that district's average daily membership.
    19  For the 1987-1988 school year through the 1990-1991 school year,
    20  no school district shall receive less on account of this section
    21  than it did for the prior school year. For the school year 1994-
    22  1995, the Commonwealth shall pay to each school district which
    23  has an average daily membership of one thousand five hundred
    24  (1,500) or less and a market value/income aid ratio of five
    25  thousand ten-thousandths (0.5000) or greater, an amount equal to
    26  ninety five dollars ($95) multiplied by that district's average
    27  daily membership. For each of the school years 1997-1998 through
    28  1999-2000, the Commonwealth shall pay to each school district
    29  which has an average daily membership of one thousand five
    30  hundred (1,500) or less and a market value/income aid ratio of
    20010S0485B1236                 - 35 -

     1  five thousand ten-thousandths (0.5000) or greater an amount
     2  equal to seventy-five dollars ($75) multiplied by that
     3  district's average daily membership. For the school year 2000-
     4  2001, the Commonwealth shall pay to each school district which
     5  has an average daily membership of one thousand five hundred
     6  (1,500) or less an amount equal to seventy-five dollars ($75)
     7  multiplied by that district's average daily membership.
     8     Section 27.  Section 2502.30 of the act, amended June 26,
     9  1999 (P.L.394, No.36), is reenacted and amended to read:
    10     Section 2502.30.  Temporary Special Aid to School Districts
    11  Suffering Loss of Tax Revenue Due to Reduction in Assessed
    12  Valuation of Taxable Property.--(a)  Temporary special aid shall
    13  be paid in fiscal years 1994-1995, 1995-1996, 1996-1997, 1997-
    14  1998, 1998-1999 [and], 1999-2000 and 2001-2002 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 year 2001-2002 to
    20010S0485B1236                 - 36 -

     1  the extent funds are available as determined by the Secretary of
     2  the Budget qualifying school districts shall receive twenty-five
     3  per centum (25%) of the funds received in fiscal year 1994-1995.
     4  This section shall expire October 1, [2000] 2002.
     5     (b)  Payments made pursuant to subsection (a) shall be paid
     6  from a restricted receipt account, which is hereby established,
     7  for such payments. Funds shall be transferred by the Secretary
     8  of the Budget to the restricted account only to the extent
     9  necessary to make the payments authorized by this section. The
    10  money in the restricted account is hereby appropriated from the
    11  account for purposes of this section.
    12     Section 28.  The act is amended by adding a section to read:
    13     Section 2502.39.  Basic Education Funding for 2000-2001
    14  School Year.--For the 2000-2001 school year, the Commonwealth
    15  shall pay to each school district a basic education funding
    16  allocation which shall consist of the following:
    17     (1)  An amount equal to the basic education funding
    18  allocation for the 1999-2000 school year pursuant to sections
    19  2502.13, 2502.37 and 2502.38.
    20     (2)  A base supplement calculated as follows:
    21     (i)  If the school district's 2001-2002 market value/income
    22  aid ratio is equal to or greater than .7000:
    23     (A)  Multiply the school district's 2001-2002 market
    24  value/income aid ratio by its 2000-2001 average daily
    25  membership.
    26     (B)  Multiply the product from (A) by $25,000,000.
    27     (C)  Divide the product from (B) by the sum of the products
    28  of the 2001-2002 market value/income aid ratio multiplied by the
    29  2000-2001 average daily membership for all qualifying school
    30  districts.
    20010S0485B1236                 - 37 -

     1     (ii)  If the school district's 2001-2002 market value/income
     2  aid ratio is equal to or greater than .4000 and less than .7000:
     3     (A)  Multiply the school district's 2001-2002 market
     4  value/income aid ratio by its 2000-2001 average daily
     5  membership.
     6     (B)  Multiply the product from (A) by $77,000,000.
     7     (C)  Divide the product from (B) by the sum of the products
     8  of 2001-2002 market value/income aid ratio multiplied by the
     9  2000-2001 average daily membership for all qualifying school
    10  districts.
    11     (iii)  If the school district's 2001-2002 market value/income
    12  aid ratio is less than .4000:
    13     (A)  Multiply the school district's 2001-2002 market
    14  value/income aid ratio by its 2000-2001 average daily
    15  membership.
    16     (B)  Multiply the product from (A) by $12,000,000.
    17     (C)  Divide the product from (B) by the sum of the products
    18  of 2001-2002 market value/income aid ratio multiplied by the
    19  2000-2001 average daily membership for all qualifying school
    20  districts.
    21     (3)  An increasing aid ratio supplement to qualifying school
    22  districts as follows:
    23     (i)  To qualify for the increasing aid ratio supplement, a
    24  school district's 2001-2002 market value/income aid ratio must
    25  have increased by .0100 or more over the 1994-1995 market
    26  value/income aid ratio and the school district's 2001-2002
    27  market value/income aid ratio must be greater than or equal to
    28  the median.
    29     (ii)  The increasing aid ratio supplement shall be calculated
    30  for qualifying school districts as follows: multiply the school
    20010S0485B1236                 - 38 -

     1  district's increase in market value/income aid ratio between
     2  1994-1995 and 2001-2002 by its 2000-2001 average daily
     3  membership and multiply this product by thirty-five million
     4  dollars ($35,000,000) and divide the resultant product by the
     5  sum of the products of the increase in aid ratio multiplied by
     6  the 2000-2001 average daily membership for all qualifying school
     7  districts.
     8     (4)  A growth supplement is calculated for qualifying school
     9  districts as follows:
    10     (i)  Each school district with an increase in average daily
    11  membership between the 1999-2000 and 2000-2001 school years of
    12  less than three percent (3%) shall receive an amount equal to
    13  five hundred dollars ($500) multiplied by the actual numerical
    14  increase in average daily membership between the 1999-2000 and
    15  2000-2001 school years.
    16     (ii)  Each school district with an increase in average daily
    17  membership between the 1999-2000 and 2000-2001 school years
    18  equal to or greater than three percent (3%) shall receive an
    19  amount equal to one thousand dollars ($1,000) multiplied by the
    20  actual numerical increase in average daily membership between
    21  the 1999-2000 and 2000-2001 school years.
    22     (5)  Each school district will receive additional funding, as
    23  necessary, so that the sum of the amounts under section 2502.13
    24  and under clauses (2), (3), (4) and this clause will equal at
    25  least two percent (2%) of the amount in clause (1).
    26     (6)  Each school district will receive additional funding, as
    27  necessary, so that the sum of the amounts under section 2502.13
    28  and under clauses (1), (2), (3), (4), (5) and this clause
    29  divided by the 2000-2001 average daily membership will equal at
    30  least one hundred one percent (101%) of the amount in clause (1)
    20010S0485B1236                 - 39 -

     1  divided by its 1999-2000 average daily membership.
     2     Section 29.  Section 2509.1 of the act is amended by adding a
     3  subsection to read:
     4     Section 2509.1.  Payments to Intermediate Units.--* * *
     5     (b.9)  Up to nine million five hundred thousand dollars
     6  ($9,500,000) may be utilized for programs administered and
     7  operated by intermediate units during the 2001-2002 school year
     8  for institutionalized children as provided in subsection (b.1).
     9     * * *
    10     Section 30.  Section 2561 is amended by adding a clause to
    11  read:
    12     Section 2561.  Tuition Charges for Pupils of Other
    13  Districts.--A school district or vocational school district
    14  receiving elementary or high school pupils or vocational or
    15  other extension education pupils who are residents of another
    16  school district or another vocational school district shall
    17  compute the tuition charges as follows:
    18     * * *
    19     (8)  Charter School Tuition Charge.  When a charter school
    20  established pursuant to Article XVII-A enrolls any eligible
    21  student in an approved private school pursuant to section 1376,
    22  its "tuition charge per elementary pupil" or its "tuition charge
    23  per secondary pupil" shall be calculated in accordance with
    24  clauses (1) through (3).
    25     Section 31.  The act is amended by adding a section to read:
    26     Section 2574.3.  Approved Reimbursable Annual Rental for
    27  Leases of Buildings or Portions of Buildings for Charter School
    28  Use.--(a)  For leases of buildings or portions of buildings for
    29  charter school use which have been approved by the Secretary of
    30  Education on or after July 1, 2001, the Department of Education
    20010S0485B1236                 - 40 -

     1  shall calculate an approved reimbursable annual rental charge.
     2  Approved reimbursable annual rental for such approved leases of
     3  buildings or portions of buildings for charter school use shall
     4  be the lesser of (i) the annual rental payable under the
     5  provisions of the approved lease agreement, or (ii) the product
     6  of the enrollment, as determined by the Department of Education,
     7  times one hundred sixty dollars ($160) for elementary schools,
     8  two hundred twenty dollars ($220) for secondary schools, or two
     9  hundred seventy dollars ($270) for area vocational-technical
    10  schools. The Commonwealth shall pay, annually, for the school
    11  year 2001-2002 and each school year thereafter, to each charter
    12  school which leases with the approval of the Department of
    13  Education buildings or portions of buildings for charter school
    14  use under these provisions an amount determined by multiplying
    15  the aid ratio of the charter school by the approved reimbursable
    16  annual rental.
    17     (b)  Nothing in this section shall require a charter school
    18  that has been converted from an existing public school under
    19  Article XVII-A to make rental payments to a school district.
    20     Section 32.  This act shall take effect as follows:
    21         (1)  The addition or amendment of sections 613(f), 923-A,
    22     1311-A, 1376, 1725-A, 1855, 1913-A, 1915-A, 2013-A, 2502.8,
    23     2502.13, 2502.30, 2502.39, 2509.1(b.9), 2561(8) and 2574.3 of
    24     the act shall take effect July 1, 2001.
    25         (2)  The remainder of this act shall take effect June 30,
    26     2001, or immediately, whichever is sooner.



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