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                                                      PRINTER'S NO. 1397

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1132 Session of 1999


        INTRODUCED BY SALVATORE, LOEPER, HELFRICK, JUBELIRER, HART AND
           WHITE, OCTOBER 14, 1999

        REFERRED TO EDUCATION, OCTOBER 14, 1999

                                     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," adding provisions relating to
     6     educational empowerment; providing for an academic recovery
     7     list and academic reform school districts and for their
     8     operation, for educational recovery grants, local educational
     9     opportunity grants and for Mandate Waiver Program; further
    10     providing for payments on account of pupil transportation;
    11     and making appropriations.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  The act of March 10, 1949 (P.L.30, No.14), known
    15  as the Public School Code of 1949, is amended by adding an
    16  article to read:
    17                          ARTICLE XVII-B.
    18                    EDUCATIONAL EMPOWERMENT ACT.
    19     Section 1701-B.  Short Title.--This article shall be known
    20  and may be cited as the "Educational Empowerment Act."
    21     Section 1702-B.  Definitions.--For purposes of this article,
    22  the following terms shall have the following meanings:

     1     "Academic recovery list."  A list prepared annually by the
     2  Department of Education containing school districts that fall
     3  below certain academic assessments as provided in section 1703-
     4  B.
     5     "Basic education funding."  A school district's portion of
     6  the annual appropriation made by the Commonwealth to the
     7  Department of Education for payment of basic education funding
     8  to school districts in accordance with this act.
     9     "Basic education funding per average daily membership (ADM)."
    10  A school district's basic education funding per average daily
    11  membership of the prior fiscal year. This amount shall be based
    12  on the allocation used in determining the final payment of the
    13  fiscal year with no changes to be made due to revisions or
    14  audits.
    15     "Court of common pleas."  The court of common pleas of the
    16  county in which a majority of the population of the school
    17  district resides.
    18     "Department."  The Department of Education of the
    19  Commonwealth.
    20     "Educational recovery grant."  A grant made on behalf of an
    21  eligible school-age student enrolled in a school district which
    22  is certified as an academic reform district under section 1705-
    23  B(a) to attend a public or nonpublic school.
    24     "Guidelines."  Procedures, forms and other requirements
    25  developed by the department to implement the provisions of this
    26  article, which shall not be subject to review, regulation or
    27  approval by the State Board of Education.
    28     "History of low test performance."  An average of fifty per
    29  centum or more of students scoring in the bottom measured group
    30  of twenty-five per centum or below basic level of performance on
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     1  the Pennsylvania State assessment tests under 22 Pa. Code Ch. 4
     2  (relating to academic standards and assessments) in both math
     3  and reading in the preceding two school years.
     4     "Per pupil funding."  At least ninety per centum of the total
     5  expenditure per average daily membership (ADM) as defined in
     6  section 2501(20).
     7     "Reconstitute."  To remove all or a significant percentage of
     8  the administration, faculty and staff of a school and to create
     9  a new school with new leadership and personnel as an alternative
    10  to closure of the school.
    11     "School."  A public or nonpublic elementary or secondary
    12  school located in this Commonwealth where a Commonwealth
    13  resident may legally fulfill compulsory school requirements and
    14  which meets the applicable requirements of Title VI of the Civil
    15  Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). The term
    16  includes a full-time or part-time kindergarten program operated
    17  by a school. The term does not include an approved private
    18  school under section 1376 or a charter school under Article
    19  XVII-A.
    20     "School district improvement plan."  A plan to improve the
    21  level of student performance and the management and operation of
    22  a school district transmitted to the department by the board of
    23  school directors under section 1703-B(g) or by the Board of
    24  Control under section 1706-B(c).
    25     "Secretary."  The Secretary of Education of the Commonwealth.
    26     Section 1703-B.  Academic Recovery List.--(a) (1)  The
    27  department shall place a school district that has a history of
    28  low test performance on an academic recovery list. The
    29  department shall immediately notify the school district of its
    30  placement on the academic recovery list.
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     1     (2)  Upon adoption of a resolution, the board of school
     2  directors may petition the department for placement on the
     3  academic recovery list if the school district has a combined
     4  average of fifty per centum or more of students scoring in the
     5  bottom measured group of twenty-five per centum or below basic
     6  level of performance on the Pennsylvania State assessment tests
     7  under 22 Pa. Code Ch. 4 (relating to academic standards and
     8  assessments) in math and reading in the preceding two (2) school
     9  years.
    10     (b)  The department shall provide a school district on the
    11  academic recovery list with a list of every school in that
    12  district with a history of low test performance. These schools
    13  shall be listed based upon the percentage of students with a
    14  history of low test performance.
    15     (c)  (1)  No later than fourteen (14) days after notification
    16  pursuant to subsection (a), the department shall establish an
    17  academic advisory team for each school district placed on the
    18  academic recovery list. The academic advisory team shall work in
    19  the school district with the school district recovery team to
    20  assist in the development of the school district improvement
    21  plan.
    22     (2)  The academic advisory team shall consist of no less than
    23  three (3) nor more than six (6) members and shall be composed of
    24  experts selected by the department, who possess knowledge and
    25  experience in such areas as school or business administration,
    26  staff development, early childhood education, curriculum
    27  development, budget development or fiscal management, labor
    28  relations or special education. These experts may include
    29  certificated teachers and administrators, school board members,
    30  school business officials, and academic experts or consultants.
    19990S1132B1397                  - 4 -

     1  The academic advisory team shall not be composed entirely of
     2  department staff.
     3     (d)  (1)  No later than thirty (30) days following the
     4  placement of a school district on the academic recovery list,
     5  the school district shall establish a school district recovery
     6  team to work with the academic advisory team established under
     7  subsection (c) to develop a school district improvement plan.
     8     (2)  The school district recovery team shall consist of
     9  eleven (11) members, as follows:
    10     (i)  One (1) member of the board of school directors who may
    11  be the president or a designated member of the board.
    12     (ii)  The superintendent of the school district.
    13     (iii)  The school business manager or the individual
    14  responsible for the fiscal management of the school district.
    15     (iv)  A principal from a district school selected by all
    16  principals in the district.
    17     (v)  A teacher from a district school selected by all
    18  teachers in the district.
    19     (vi)  Two (2) parents of students from district schools, at
    20  least one of whom has a child in a district school identified
    21  under subsection (b).
    22     (vii)  A local representative of business.
    23     (viii)  A local community leader.
    24     (ix)  Two (2) members of the general public, which may
    25  include local law enforcement, social service providers or
    26  health care providers serving the school district.
    27     (3)  The board of school directors shall establish procedures
    28  for selecting the parents, the business and community leaders
    29  and members of the general public. The procedures shall ensure
    30  public awareness of these openings and input from local parent
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     1  organizations, local business organizations and community and
     2  civic organizations.
     3     (4)  The school district recovery team shall elect a
     4  chairperson from among its membership at its first meeting. No
     5  school director or employe of the school district shall be
     6  eligible for election as chairperson.
     7     (e)  The school district improvement plan developed pursuant
     8  to subsection (c) shall give priority consideration to
     9  improvement of schools identified pursuant to subsection (b) and
    10  shall set forth specific methods and goals for improving the
    11  educational performance of each district school and the school
    12  district, that include all of the following:
    13     (1)  Revisions to the curriculum, instructional practices and
    14  programming that will enable students to attain the academic
    15  standards under 22 Pa. Code Ch. 4 (relating to academic
    16  standards and assessment).
    17     (2)  A timetable that includes periodic assessments and
    18  evaluations of the performance of each district school and the
    19  school district.
    20     (3)  The manner in which school district personnel and
    21  resources will be utilized.
    22     (4)  Developmental activities and programs that will assist
    23  teachers and administrators in enabling students to attain
    24  academic standards.
    25     (5)  Policies and procedures to assure a safe and secure
    26  school environment.
    27     (6)  Other nonacademic and noninstructional programs and
    28  services to be utilized.
    29     (7)  Coordination with programs and services outside of the
    30  school to support the implementation of the school district
    19990S1132B1397                  - 6 -

     1  improvement plan.
     2     (8)  Specific procedures to inform parents or guardians and
     3  the community of the performance of each district school, and to
     4  increase their participation.
     5     (9)  Performance standards that will be included in the
     6  contracts of principals and superintendents.
     7     (10)  The use of existing appropriations and revenues,
     8  including school improvement grants as provided in section 1710-
     9  B, to implement the school district improvement plan.
    10     (f)  The school district recovery team shall hold at least
    11  one public hearing prior to submitting its school district
    12  improvement plan to the school board. Additionally, the plan
    13  shall be made available for public inspection in the school
    14  district offices for at least ten (10) days prior to its
    15  submission to the board of school directors.
    16     (g)  The board of school directors shall transmit the final
    17  school district improvement plan to the department with its
    18  recommendations within one hundred twenty (120) days of the
    19  establishment of the school district recovery team under
    20  subsection (d).
    21     (h)  The department shall return the school district
    22  improvement plan to the board of school directors with its
    23  approval or any request for modifications no later than thirty
    24  (30) days following its submission. Any further modifications
    25  made by the school district recovery team shall be transmitted
    26  to the department by the board of school directors.
    27     (i)  Amendments to an existing school district improvement
    28  plan may be transmitted to the department, in a manner
    29  prescribed by the department, whenever the school district
    30  recovery team working with the board of school directors
    19990S1132B1397                  - 7 -

     1  determines that the amendments will improve the performance of
     2  the school district.
     3     Section 1704-B.  Board of School Directors.--(a)
     4  Notwithstanding any other provision of law to the contrary, the
     5  board of school directors of a school district on the academic
     6  recovery list may do any of the following consistent with the
     7  school district improvement plan:
     8     (1)  Establish any school as a charter school under section
     9  1707-B.
    10     (2)  Designate any school of the district as an independent
    11  school operating under a school-based management agreement with
    12  the board of school directors granting operational control to
    13  the governing body of the independent school. The governing body
    14  of the independent school, including its membership and
    15  selection process, shall be established by the board of school
    16  directors. The governing body shall include representatives of
    17  parents and teachers. A school designated as independent under
    18  this paragraph shall have the authority to decide all matters
    19  related to the operation of the school, including the exercise
    20  of powers provided under this article. The school-based
    21  management agreement shall do the following, consistent with the
    22  school district improvement plan:
    23     (i)  Describe the governance structure of the independent
    24  school, including the method for the selection of members to the
    25  governing body.
    26     (ii)  Prescribe the educational goals and mission of the
    27  independent school and the curriculum to be offered.
    28     (iii)  Describe the academic, fiscal and other goals and
    29  objectives for which the independent school will be held
    30  accountable and the evaluation criteria and procedures that will
    19990S1132B1397                  - 8 -

     1  be employed to determine whether the school is meeting its goals
     2  and objectives.
     3     (iv)  Grant the independent school allocation of and control
     4  over its total per pupil funding and budget.
     5     (v)  Grant the independent school control of the educational
     6  program and curriculum.
     7     (vi)  Prescribe the authority of the independent school to
     8  establish working conditions, select and assign professional and
     9  nonprofessional employes, establish nonteaching duties, extend
    10  the length of the school year and schedule of the school day,
    11  including holding class after regular hours.
    12     (vii)  Define the terms under which the school-based
    13  management agreement may be terminated, extended or renewed.
    14     (3)  Employ professional staff in accordance with section
    15  1724-A as it pertains to certification.
    16     (4)  Enter into contracts with an individual or a for-profit
    17  or nonprofit organization, which shall be authorized to operate
    18  a school and employ its own staff to provide educational or
    19  other services.
    20     (5)  Reconstitute a school.
    21     (6)  Notwithstanding section 1125.1, reassign, suspend or
    22  dismiss a professional employe.
    23     (7)  Supervise and direct principals, teachers and
    24  administrators.
    25     (8)  Rescind without penalty the contract of the
    26  superintendent and other administrative personnel entered into
    27  after the effective date of this article.
    28     (b)  The board of school directors of a school district on
    29  the academic recovery list shall submit an annual report to the
    30  department that includes a list of all contracts entered into by
    19990S1132B1397                  - 9 -

     1  the board and any other information relating to the
     2  implementation of this section as required by department
     3  guidelines.
     4     (c)  No school established or operated under this section may
     5  engage in any sectarian activities or provide any religious
     6  instruction, or display religious objects and symbols on the
     7  premises of the school.
     8     Section 1705-B.  Academic Reform Districts.--(a)  Except as
     9  provided in subsection (h), a school district on the academic
    10  recovery list that does not meet the goals for improving
    11  educational performance set forth in the school district
    12  improvement plan and maintains a history of low test performance
    13  at the end of the second school year following the date of its
    14  placement on the list shall be certified by the department as an
    15  academic reform district and a Board of Control shall be
    16  established. The department may allow the school district to
    17  remain on the academic recovery list for an additional school
    18  year prior to certifying the school district as an academic
    19  reform district if the department determines that the additional
    20  year will enable the school district to improve test performance
    21  and meet other goals set forth in the school district
    22  improvement plan.
    23     (b)  The Board of Control shall be comprised of three members
    24  as follows:
    25     (1)  the secretary, who shall serve as chairman, or a
    26  designee; and
    27     (2)  two members who are residents of a county in which the
    28  school district is located and who shall be appointed by the
    29  secretary within fourteen (14) days of the school district's
    30  certification as an academic reform district.
    19990S1132B1397                 - 10 -

     1     (c)  No person who is an officer, board member or employe of
     2  the school district shall be appointed to the Board of Control.
     3     (d)  Members of the Board of Control who are not employes of
     4  the Commonwealth or a political subdivision shall receive
     5  compensation under section 692.2.
     6     (e)  Vacancies on the Board of Control shall be filled in the
     7  same manner as the original appointment.
     8     (f)  Members of the Board of Control shall serve at the
     9  pleasure of the secretary.
    10     (g)  Actions of the Board of Control shall be by a majority
    11  vote. A majority of the members appointed shall constitute a
    12  quorum.
    13     (h)  (1)  A board of control established under section 692
    14  shall be abolished upon certification of the school district as
    15  an academic reform district. The school district shall be
    16  operated by a Board of Control established under subsection (a).
    17  The secretary may appoint the same individuals serving on the
    18  board of control under section 692 to the Board of Control under
    19  subsection (b).
    20     (2)  Sections 691 and 692 of this act shall not apply to a
    21  school district certified as an academic reform district.
    22     (3)  For a school district with a history of low test
    23  performance that is certified as distressed for a minimum period
    24  of two (2) years under sections 691 and 692 on the effective
    25  date of this article, the department shall waive the inclusion
    26  of the school district on the academic recovery list under
    27  section 1703-B(a), and immediately certify the school district
    28  as an academic reform district.
    29     Section 1706-B.  Powers and Duties of Board of Control.--(a)
    30  Except for the power to levy taxes, the Board of Control may
    19990S1132B1397                 - 11 -

     1  exercise all other powers and duties conferred by law on the
     2  board of school directors. In addition to the powers set forth
     3  in section 1704-B(a), the Board of Control shall have the power
     4  to close a district school.
     5     (b)  The department shall provide a Board of Control, in a
     6  school district certified as an academic reform district, with a
     7  list of every school in that district with a history of low test
     8  performance. These schools shall be listed based upon the
     9  percentage of students with a history of low test performance.
    10     (c)  The Board of Control shall review the school district
    11  improvement plan in conjunction with the school district's
    12  academic advisory team and the school district recovery team.
    13  Based on that review, the Board of Control shall develop a
    14  revised school district improvement plan that meets the
    15  requirements of section 1703-B(e). The revised plan shall be
    16  submitted to the department for approval within one hundred
    17  twenty (120) days of the appointment of the Board of Control.
    18  Amendments shall be submitted as provided in section 1703-B(i).
    19     (d)  Following the submission of the revised school district
    20  improvement plan by the Board of Control or upon restoration of
    21  control to the board of school directors pursuant to section
    22  1711-B(a), the school district's academic advisory team and the
    23  school district recovery team shall be dissolved.
    24     Section 1707-B.  Charter Schools.--(a)  The board of school
    25  directors of a school district on the academic recovery list as
    26  set forth in section 1704-B(a)(1) or a Board of Control
    27  established under this article may approve a charter school
    28  pursuant to Article XVII-A.
    29     (b)  Charter schools approved pursuant to this section shall
    30  not be subject to sections 1717-A(b), (c), (d), (e), (f) and (g)
    19990S1132B1397                 - 12 -

     1  and 1722-A(c).
     2     (c)  The board of school directors or a Board of Control may
     3  suspend or revoke a charter under section 1729-A.
     4     Section 1708-B.  Educational Recovery Grants.--(a)  The
     5  department shall establish a program of educational recovery
     6  grants. The Board of Control in an academic reform district
     7  shall make educational recovery grants available to any student
     8  enrolled in a school identified under section 1706-B(b). The
     9  Board of Control may make educational recovery grants available
    10  to students attending other district schools. In a school
    11  district certified as an academic reform district, educational
    12  recovery grants shall be available to students enrolled in a
    13  district school during the prior school year. Educational
    14  recovery grants shall also be available to students in
    15  kindergarten or who become eligible to enroll in kindergarten.
    16     (b)  Except as otherwise expressly provided, nothing in this
    17  article shall be construed to empower the Commonwealth or its
    18  agencies or officers or political subdivisions to impose any
    19  additional requirements on a nonpublic school or to require any
    20  nonpublic school to accept eligible grant recipients, unless
    21  otherwise required by law.
    22     (c)  The department shall adopt guidelines to administer the
    23  educational recovery grant program which shall include the
    24  following information and procedures:
    25     (1)  Application forms and an approval process, including
    26  proof of enrollment.
    27     (2)  Standards for verification of the accuracy of
    28  information.
    29     (3)  Confirmation of student attendance and dates to report
    30  student attendance.
    19990S1132B1397                 - 13 -

     1     (4)  Pro rata refunds of grants from parents of students who
     2  withdraw during the school year.
     3     (5)  Repayment of refunded grants to the school district.
     4     (6)  Dates for application and notification of grants.
     5     (d)  The department shall publish the guidelines in the
     6  Pennsylvania Bulletin and mail a copy to each school district
     7  certified as an academic reform district, to contiguous school
     8  districts, and to nonpublic schools located within the
     9  boundaries of all of these districts.
    10     (e)  (1)  Except as provided in subsection (b) and clause
    11  (2), a student eligible under subsection (a) shall be permitted
    12  to utilize an educational recovery grant to attend a public or
    13  nonpublic school selected by the student's parent or guardian
    14  beginning the first school year following the certification of a
    15  school district as an academic reform district.
    16     (2)  A student eligible under subsection (a) may attend a
    17  public school pursuant to this subsection, unless any of the
    18  following occur:
    19     (i)  A determination has been made that no attendance slots
    20  are available in accordance with clause (3) and notification has
    21  been provided to the department and the student in accordance
    22  with department guidelines.
    23     (ii)  The student's attendance would place the requested
    24  school district or the district of residence in violation of a
    25  valid and binding desegregation order.
    26     (iii)  A determination has been made that the public school
    27  requested does not offer appropriate programs or is not
    28  structured or equipped with the necessary facilities to meet the
    29  special needs of the student or does not have a particular
    30  program requested.
    19990S1132B1397                 - 14 -

     1     (iv)  The student was expelled or is in the process of being
     2  expelled pursuant to sections 1317.2 and 1318.
     3     (v)  The student does not meet the established criteria for a
     4  selected magnet school or school with a specialized academic
     5  mission. This type of eligibility criteria shall not be utilized
     6  to determine admission to other public schools.
     7     (3)  For purposes of this section, each school district, area
     8  vocational-technical school and intermediate unit shall in its
     9  sole discretion annually determine by resolution the number of
    10  attendance slots at each age or grade level that will be
    11  available for students utilizing an educational recovery grant
    12  at each of its public schools. The resolution making the
    13  determination shall be submitted to the department no later than
    14  August 1 of each year. The department shall not abrogate or
    15  modify a determination regarding the number of available
    16  attendance slots for students utilizing educational recovery
    17  grants.
    18     (4)  For purposes of filling the available attendance slots
    19  established pursuant to clause (3), preference shall be given to
    20  students in the following order:
    21     (i)  a student who attended a school in the district
    22  utilizing an educational recovery grant during the preceding
    23  school year; and
    24     (ii)  any other student utilizing an educational recovery
    25  grant, who shall be selected through a publicly conducted
    26  lottery.
    27     (f)  (1)  Educational recovery grants shall consist of the
    28  amount of the basic education funding per average daily
    29  membership of the student's district of residence in the prior
    30  fiscal year. A student utilizing a grant to attend a public
    19990S1132B1397                 - 15 -

     1  school outside the student's district of residence or a
     2  nonpublic school shall be included in the average daily
     3  membership of the district of residence.
     4     (2)  Educational recovery grants shall not exceed the amount
     5  of tuition charged by the school. If the amount of the grant is
     6  insufficient to meet the tuition charge of a public school,
     7  payment by the parent or guardian of one/third of the balance of
     8  the tuition charge shall constitute payment in full of the
     9  school's tuition charge. If the amount of the grant exceeds the
    10  tuition charge of a nonpublic school, the Commonwealth shall pay
    11  any amount remaining after the tuition is paid to the school
    12  district of residence.
    13     (3)  For a student who is defined as a "child with
    14  exceptionalities" under section 1371 and who utilizes an
    15  educational recovery grant to attend a public school, the amount
    16  of the grant shall be calculated in accordance with clauses (1)
    17  and (2). The school district of residence shall pay to the
    18  receiving school district any additional costs of services
    19  provided for that student that exceed the tuition charge. The
    20  additional costs for these services shall not exceed the
    21  budgeted amount that would have been paid by the district of
    22  residence had the student remained in the district. Costs that
    23  exceed the budgeted amount shall be paid by the receiving school
    24  district. The district of residence shall provide documentation
    25  of any prior year costs and the budgeted costs of providing the
    26  services had the student remained in that district. The grant
    27  and payment for additional costs under this clause shall not
    28  exceed the actual costs of services provided to the student by
    29  the receiving school district.
    30     (4)  The Commonwealth shall pay to the school district, area
    19990S1132B1397                 - 16 -

     1  vocational-technical school or intermediate unit attended by a
     2  student utilizing an educational recovery grant the amount
     3  calculated in accordance with clauses (1) and (2). The
     4  Commonwealth shall make periodic payments to the parent or
     5  guardian of a student utilizing a grant to attend a nonpublic
     6  school for the amount of tuition that does not exceed the per
     7  pupil basic education funding. The amount paid to a school
     8  district, area vocational-technical school, intermediate unit,
     9  or parent or guardian shall be paid from the current year basic
    10  education funding allocation of the school district of
    11  residence.
    12     (5)  If a student receiving a grant under this section is no
    13  longer enrolled in a public or nonpublic school at any time
    14  during the school year, the school shall notify the school
    15  district of residence and the department within ten (10) days of
    16  withdrawal. Following receipt of notice that the student is no
    17  longer enrolled in a public school, the department shall
    18  withhold the amount paid to the school district under clause (4)
    19  from future funds owed to the receiving school district.
    20  Following receipt of notice that the student is no longer
    21  enrolled in a nonpublic school, the parent or guardian shall
    22  submit the full amount of a pro rata refund payment to the
    23  department within thirty (30) days of receipt of notification
    24  that payment is due, unless the student is timely enrolled in
    25  another nonpublic school.
    26     (6)  If the parent or guardian fails to submit the refund
    27  under clause (5), the department may impose interest calculated
    28  from the due date at the rate determined by the Department of
    29  Revenue for interest on overdue taxes or refund of taxes under
    30  sections 806 and 806.1 of the act of April 9, 1929 (P.L.343,
    19990S1132B1397                 - 17 -

     1  No.176), known as "The Fiscal Code." If the parent or guardian
     2  fails to submit the full refund within one hundred eighty (180)
     3  days of a written demand, the department may also impose an
     4  administrative penalty not to exceed the full amount of the
     5  grant and disqualify the parent or guardian from eligibility for
     6  a grant under this section for up to five (5) years.
     7     (g)  For purposes of academic continuity, any student
     8  utilizing a grant on the date the certification of a school
     9  district as an academic reform district is removed, and who
    10  remains a resident of the district, shall be able to continue
    11  attending a public or nonpublic school utilizing an educational
    12  recovery grant until that student graduates from high school. At
    13  any time, the student's parent or guardian may remove the
    14  student from the public or nonpublic school and place the
    15  student in the school district of residence.
    16     (h)  (1)  A student who is eligible for an educational
    17  recovery grant under this section and who attends a school
    18  within the academic reform district shall be provided
    19  transportation to that school on the same terms and conditions
    20  as transportation is provided to students attending schools
    21  within the district.
    22     (2)  A student utilizing a grant under this section to attend
    23  a nonpublic school shall be provided transportation pursuant to
    24  section 1361.
    25     (3)  A school district providing transportation to a student
    26  utilizing a grant to attend a school outside the district shall
    27  be eligible for payments under section 2509.3 for each student
    28  transported.
    29     (i)  (1)  A parent or guardian who fraudulently submits an
    30  application under this section or who knowingly falsifies
    19990S1132B1397                 - 18 -

     1  information on an application shall be subject to an
     2  administrative penalty imposed by the department of up to five
     3  thousand dollars ($5,000) and shall be disqualified from
     4  participation in the program for five (5) years.
     5     (2)  A parent or guardian who is convicted of or who pleads
     6  guilty or nolo contendere to fraudulently submitting or
     7  falsifying information on an application shall be guilty of a
     8  misdemeanor of the third degree and shall be subject to a fine
     9  of up to five thousand dollars ($5,000) or imprisonment for up
    10  to one year, or both.
    11     (3)  A school that wilfully fails to provide timely notice to
    12  the department under section 1708-B(f)(5) shall be subject to a
    13  penalty imposed by the department of up to one thousand dollars
    14  ($1,000) per offense.
    15     (j)  A grant to a parent or guardian under this section or
    16  section 1718-B shall not be considered to be taxable income for
    17  purposes of Article III of the act of March 4, 1971 (P.L.6,
    18  No.2), known as the "Tax Reform Code of 1971," nor shall grants
    19  constitute financial assistance or appropriations to the
    20  educational institution attended by a student.
    21     (k)  No school may charge a higher tuition than the student
    22  would have been charged without receiving a grant.
    23     (l)  A student who utilizes a grant under subsection (a) and
    24  the parent or guardian of that student shall comply with the
    25  following requirements:
    26     (1)  The student shall maintain regular attendance throughout
    27  the school year, unless excused for illness or other good cause,
    28  and shall comply with the school's code of conduct.
    29     (2)  The parent or guardian of the student shall comply with
    30  the school's parental academic involvement requirements, unless
    19990S1132B1397                 - 19 -

     1  excused by the school for illness or other good cause.
     2     (3)  The student shall be tested and the results reported to
     3  the department in accordance with the following:
     4     (i)  A student attending a public school shall be tested
     5  pursuant to 22 Pa. Code § 4.51 (relating to State assessment
     6  system).
     7     (ii)  A student who attends a nonpublic school shall be
     8  tested pursuant to 22 Pa. Code § 4.51 or pursuant to department
     9  guidelines using a test selected by the nonpublic school from a
    10  list developed by the department of five nationally normed
    11  standardized tests.
    12     Section 1709-B.  School Directors to Remain in Office;
    13  Powers.--(a)  Members of the board of school directors of a
    14  school district under the direction of a Board of Control shall
    15  not resign their offices for the remainder of their terms,
    16  except with the consent of the Board of Control. During the
    17  operation of the district by the Board of Control, the members
    18  of the school board shall continue in office for the remainder
    19  of their terms unless a member is: removed for neglect of duty
    20  under section 318 by the court of common pleas; elected or
    21  appointed to another position not compatible with the position
    22  of school director; or appointed to any position for which the
    23  appointee is prohibited from holding elective office. The school
    24  directors shall continue to have the power to levy taxes and
    25  shall perform such other duties as may be delegated to them by
    26  the Board of Control. The appointment of a Board of Control
    27  shall not interfere with the election, reelection or appointment
    28  of school directors.
    29     (b)  A school district of the first class that is operating
    30  under a Board of Control pursuant to section 1705-B(a) and a
    19990S1132B1397                 - 20 -

     1  city of the first class shall comply with provisions regarding
     2  taxation and financial matters, including sections 507, 691 and
     3  696(h)(1), (2), (3) and (4).
     4     Section 1710-B.  School Improvement Grants.--(a)  The
     5  department shall establish a program of school improvement
     6  grants for school districts on the academic recovery list or
     7  certified as academic reform districts to assist in the
     8  implementation of their school district improvement plans.
     9     (b)  Grants shall be limited to the amount appropriated for
    10  that purpose.
    11     (c)  Grants shall be provided to the school district for use
    12  as directed by the school district recovery team or the Board of
    13  Control in implementing the school district improvement plan
    14  developed pursuant to sections 1703-B and 1706-B as follows:
    15     (1)  To purchase instructional materials, including
    16  textbooks, technology and related educational materials and
    17  supplies.
    18     (2)  To reduce class size in kindergarten through grade
    19  three.
    20     (3)  To establish after-school, summer and weekend programs.
    21     (4)  To establish or expand full-day kindergarten programs.
    22     (5)  To fund curriculum development.
    23     (6)  To fund enhanced staff professional development.
    24     (7)  To fund any other program contained in the school
    25  improvement plan.
    26     (d)  The amount of the grant shall be up to seventy-five
    27  dollars ($75) per pupil enrolled in each of the individual
    28  schools identified pursuant to sections 1703-B(b) and 1706-B(b).
    29  The school district or the Board of Control shall give these
    30  schools priority in allocating the grant funding received under
    19990S1132B1397                 - 21 -

     1  this section.
     2     (e)  The department shall set forth the specific allowable
     3  uses for grant funds and place conditions, as necessary, on the
     4  use of grant funds. The department shall establish
     5  accountability procedures and auditing guidelines to ensure that
     6  grant funds are utilized in accordance with the allowable uses
     7  and conditions.
     8     (f)  A school district receiving a grant under this section
     9  shall be required to maintain separate accounts in that school
    10  district's budget to facilitate monitoring the use of these
    11  grant funds.
    12     (g)  The department shall reduce the amount of a State
    13  subsidy payment to a school district by the amount of any grant
    14  funds provided under this section if the school district does
    15  not use the grant funds in accordance with the allowable uses
    16  and conditions set forth by the department.
    17     Section 1711-B.  Restoration of Control.--(a)  When a school
    18  district on the academic recovery list, or certified as an
    19  academic reform district, no longer has a history of low test
    20  performance and has reached the goals set forth in the school
    21  district improvement plan, the department shall remove the
    22  school district from the academic recovery list or remove the
    23  certification as an academic reform district. When the
    24  department removes a school district from the academic recovery
    25  list or from certification as an academic reform district, the
    26  board of school directors shall exercise the powers and duties
    27  imposed or conferred by law.
    28     (b)  The provisions of section 1704-B shall continue
    29  following removal from the academic recovery list or removal of
    30  the certification as an academic reform district unless
    19990S1132B1397                 - 22 -

     1  suspended or revoked, in whole or in part, by the board of
     2  school directors.
     3     Section 1712-B.  Performance Evaluation.--(a)  On February 1
     4  of the third year following implementation of the educational
     5  recovery grant program under section 1708-B, an independent
     6  evaluation of the educational recovery grant program shall be
     7  conducted. The evaluation report shall be provided to the
     8  Governor and the General Assembly by December 1 of the same
     9  calendar year.
    10     (b)  The department shall solicit requests for proposals for
    11  the evaluation of the educational recovery grant program. The
    12  proposals shall be available for public inspection at least
    13  thirty (30) days prior to the awarding of the contract for the
    14  evaluation. The evaluation procedure shall include a public
    15  comment and review process on the educational recovery grant
    16  program.
    17     (c)  The evaluation shall consider:
    18     (1)  the academic programs and levels of academic performance
    19  of students in public schools and students utilizing educational
    20  recovery grants to attend public and nonpublic schools.
    21     (2)  the educational and fiscal feasibility and effectiveness
    22  of the educational recovery grant program; and
    23     (3)  parental satisfaction with the educational recovery
    24  grant program and parental compliance with the provisions of
    25  section 1708-B(l)(2).
    26     (d)  The department shall provide technical and other
    27  assistance to facilitate completion of the report.
    28     (e)  The evaluation shall not include any listing of programs
    29  or contain any assessments or measurements which address or
    30  measure the attitudes, values or personal beliefs of the
    19990S1132B1397                 - 23 -

     1  students attending a school under the educational recovery grant
     2  program.
     3     (f)  A nonpublic school shall only be required to provide
     4  information for the independent evaluation to the extent that
     5  the information required under subsection (c) is readily
     6  available and does not require significant additional data
     7  collection by the school.
     8     Section 1713-B.  Annual Report to the Governor and General
     9  Assembly.--(a)  On or before October 1 of every year, the
    10  department shall provide a report to the Governor and the
    11  General Assembly regarding the implementation of this article
    12  for the immediately preceding school year.
    13     (b)  The annual report shall contain the following
    14  information:
    15     (1)  The names of school districts on the academic recovery
    16  list, or certified as academic reform districts, and the date of
    17  placement on the list or certification.
    18     (2)  A progress report consistent with the school district
    19  improvement plans.
    20     (3)  The names of any school districts removed from the prior
    21  year's academic recovery list, or which are no longer certified
    22  as academic reform districts.
    23     (4)  Any recommended changes to this article.
    24     (c)  The report shall be filed with the Governor's Office,
    25  the Secretary of the Senate, the Chief Clerk of the House of
    26  Representatives, the chairman and minority chairman of the
    27  Education Committee of the Senate and the chairman and minority
    28  chairman of the Education Committee of the House of
    29  Representatives.
    30     Section 1714-B.  Collective Bargaining.--Nothing contained in
    19990S1132B1397                 - 24 -

     1  this article shall supersede or preempt any provisions of a
     2  collective bargaining agreement between a school district and an
     3  employe organization in effect on the effective date of this
     4  article.
     5     Section 1715-B.  Severability.--(a)  Except as provided in
     6  subsection (b), the provisions of this article are severable. If
     7  any provision of this article or its application to any person
     8  or circumstance is finally determined to be invalid, the
     9  invalidity shall not affect other provisions or applications of
    10  this article which can be given effect without the invalid
    11  provision or application.
    12     (b)  (1)  If the provisions of section 1708-B(e)(3), which
    13  enable a school district to determine the number of available
    14  attendance slots for students utilizing an educational recovery
    15  grant at each public school, are finally determined to be
    16  facially invalid by an appellate court of competent
    17  jurisdiction, all of section 1708-B shall be invalid.
    18     (2)  If the statutory authority for educational recovery
    19  grants to parents or guardians of students attending nonpublic
    20  schools is finally determined by an appellate court of competent
    21  jurisdiction to be unconstitutional, then educational recovery
    22  grants for students attending public schools shall be invalid.
    23  If the statutory authority for educational recovery grants for
    24  students attending public schools is finally determined by an
    25  appellate court of competent jurisdiction to be
    26  unconstitutional, then educational recovery grants to parents or
    27  guardians of students attending nonpublic schools shall be
    28  invalid.
    29     Section 1716-B.  Original Jurisdiction.--The Pennsylvania
    30  Commonwealth Court shall have original jurisdiction to hear any
    19990S1132B1397                 - 25 -

     1  challenge to or to render a declaratory judgment concerning the
     2  constitutionality of this article and issues related thereto.
     3  The Commonwealth Court is authorized to take such action as it
     4  deems appropriate, consistent with its retaining jurisdiction
     5  over such a matter. This shall include finding facts or
     6  expediting a final judgment in connection with such a challenge
     7  or request for declaratory relief.
     8     Section 1717-B.  Desegregation Orders.--Neither the board of
     9  school directors nor a Board of Control in a school district
    10  operating under a desegregation plan approved by the
    11  Pennsylvania Human Relations Commission or a desegregation order
    12  by a Federal or State court shall establish an independent
    13  school, a charter school or contract with an individual, a for-
    14  profit or nonprofit organization to operate a school if such
    15  action would place the school district in noncompliance with its
    16  desegregation order.
    17     Section 1718-B.  Local Educational Opportunity Grants by
    18  School Districts.--(a)  The General Assembly finds as follows:
    19     (1)  It is the policy of this Commonwealth to enable school
    20  districts to enhance the primary right and obligation of parents
    21  to choose the education and training of their school-age
    22  children.
    23     (2)  The General Assembly intends the program of educational
    24  choice provided in this article to be but one element of its
    25  overall program of providing funds to assure the availability of
    26  educational opportunities for students enrolled in the schools
    27  of this Commonwealth. A comparatively far greater proportion of
    28  public funds are and, upon implementation of an educational
    29  choice program, will continue to be devoted to the benefit of
    30  students enrolled in the public schools of this Commonwealth.
    19990S1132B1397                 - 26 -

     1     (3)  An educated populace is essential to the political and
     2  economic health of this Commonwealth and its citizens.
     3     (4)  Providing educational opportunities that serve the needs
     4  of this Commonwealth is a governmental duty.
     5     (5)  Innovative approaches and a variety of programming
     6  options serve to enhance educational opportunities.
     7     (6)  The legitimate interest of this Commonwealth and its
     8  school districts in facilitating an effective system of
     9  educational opportunities for children of this Commonwealth is
    10  enhanced by encouraging competitive and diverse alternatives for
    11  parents and students that enable them to choose from both public
    12  and nonpublic educational programs.
    13     (7)  Providing parents with nonpublic educational
    14  alternatives can decrease the burdens on school districts and
    15  increase the range of educational opportunities available to
    16  families residing in participating school districts, thereby
    17  benefiting this Commonwealth and its citizens.
    18     (8)  School-age children residing in participating school
    19  districts, their parents and the Commonwealth will benefit from
    20  a program of tuition assistance that fosters the ability of a
    21  parent to choose the educational setting most appropriate to
    22  each child's needs.
    23     (9)  The enhancement of educational opportunities in this
    24  Commonwealth will develop a more capable and better-educated
    25  work force, thereby improving the ability of our citizens to
    26  compete for employment opportunities in a global economy.
    27     (b)  The board of school directors of a school district may
    28  establish a program of local educational opportunity grants from
    29  the funds of the district for school-age children who reside in
    30  that district to attend a public or nonpublic school on a
    19990S1132B1397                 - 27 -

     1  tuition paying basis.
     2     (c)  The program shall be implemented in accordance with the
     3  following:
     4     (1)  Except in school districts of the first class, the board
     5  of school directors shall adopt a resolution establishing the
     6  program at a regularly scheduled meeting of the board.
     7     (2)  In a school district of the first class, the board of
     8  school directors or the mayor may establish a program pursuant
     9  to this section from funds allocated for that purpose.
    10     (3)  The local educational opportunity grant shall be paid to
    11  the parent or guardian of the eligible student in an amount
    12  determined by the board of school directors. The local
    13  educational opportunity grant shall not exceed the actual
    14  tuition paid to the public or nonpublic school attended by the
    15  student.
    16     (4)  The board of school directors shall prepare guidelines
    17  that include an application form and approval process, methods
    18  for verification of the accuracy of application information and
    19  confirmation of attendance by grant recipients, and dates for
    20  submission of grant applications and notification of grant
    21  awards.
    22     (5)  The local educational opportunity grant shall be paid to
    23  the parent or guardian of the eligible student upon receipt of
    24  written confirmation of enrollment from the school attended by
    25  the student.
    26     Section 1719-B.  Mandate Waiver Program.--(a)  Except as
    27  otherwise provided in this section, the board of school
    28  directors may adopt a resolution to waive any provision of this
    29  act, the regulations of the State Board of Education or the
    30  standards of the secretary if the waiver will enable the school
    19990S1132B1397                 - 28 -

     1  district to improve its instructional program or operate in a
     2  more effective, efficient or economical manner.
     3     (b)  The application for a waiver shall be in a manner and in
     4  a form developed by the department and shall:
     5     (1)  Specify the need for the waiver.
     6     (2)  Provide supporting data and information to explain the
     7  benefits to be obtained by the waiver and, when applicable, to
     8  explain the instructional program that will operate under the
     9  waiver.
    10     (3)  Include an evaluation procedure to determine the
    11  effectiveness of an innovative program or programs; the
    12  effectiveness of a revised instructional program, which shall
    13  include measures of student performance; and the effectiveness
    14  of changes in the operations of the school district.
    15     (c)  The request for a waiver shall be adopted by a
    16  resolution of the board of directors at a regularly scheduled
    17  meeting of the board. Prior to the board of directors
    18  implementing the policies or procedures contained in the waiver,
    19  approval by the department shall be required.
    20     (d)  The department shall have sixty (60) days from receipt
    21  of the application to approve, disapprove or request
    22  modifications to the application. If the department fails to act
    23  within that time period, the waiver shall be deemed to be
    24  approved.
    25     (e)  If the department disapproves the application for
    26  waiver, the basis for the department's disapproval shall be
    27  transmitted to the board of school directors. The board of
    28  school directors may submit a revised application for a waiver.
    29     (f)  Three years from the implementation of the waiver, the
    30  board of school directors shall submit to the department the
    19990S1132B1397                 - 29 -

     1  evaluation set forth in subsection (b)(3). When the evaluation
     2  of a waiver indicates an improvement in student performance,
     3  instructional program or school operations, the waiver shall be
     4  renewed by the department and shall remain in effect, unless
     5  rescinded by the board of school directors.
     6     (g)  The following provisions of this act shall not be
     7  subject to waiver pursuant to this section: sections 108, 110,
     8  111, 321, 322, 323, 324, 325, 326, 327, 431, 436, 437, 440.1,
     9  443, 502, 510, 518, 527, 701.1, 708, 736, 737, 738, 739, 740,
    10  741, 752, 753, 755, 771, 776, 777, 808, 809, 810, 1303(a), 1310,
    11  1317, 1317.1, 1317.2, 1318, 1327, 1327.1, 1330, 1332, 1361,
    12  1362, 1366, 1501, 1502, 1513, 1517, 1518, 1521, 1523, 1546 and
    13  1547 of this act; provisions prohibiting discrimination;
    14  Articles VI, XI, XI-A, XII, XIII-A, XIV, XVII-A  and XVII-B of
    15  this act;
    16     (h)  The following provisions of 22 Pa. Code (relating to
    17  education) shall not be subject to waiver pursuant to this
    18  section:
    19     Ch. 4 (relating to academic standards and assessments).
    20     Ch. 11 (relating to pupil attendance).
    21     Ch. 12 (relating to students).
    22     Ch. 14 (relating to special education services and programs).
    23     § 32.3 (relating to assurances).
    24     § 121.3 (relating to discrimination prohibited).
    25     § 235.4 (relating to practices).
    26     § 235.8 (relating to civil rights).
    27     (i)  The board of directors may not waive any Federal law or
    28  State law applicable to a public school that is not within the
    29  provisions of this act.
    30     (j)  The department shall issue an annual report to the
    19990S1132B1397                 - 30 -

     1  chairman and minority chairman of the Education Committee of the
     2  Senate and the chairman and minority chairman of the Education
     3  Committee of the House of Representatives listing all waiver
     4  requests and department approvals or disapprovals under this
     5  section.
     6     (k)  Nothing in this section shall be construed to supersede
     7  or preempt any provisions of a collective bargaining agreement
     8  in effect on the effective date of this section.
     9     Section 1720-B.  Applicability.--Nothing in this article
    10  shall be construed to supersede or abrogate the following:
    11     (1)  The provisions of sections 507, 691 and 696 of this act
    12  pertaining to a city of the first class that is coterminous with
    13  a school district of the first class or a school district of the
    14  first class A.
    15     (2)  Sections 751, 751.1, 755, 756 and 757 to the extent that
    16  these sections are not inconsistent with the "Public Works
    17  Contractors' Bond Law of 1967."
    18     (3)  Section 1 of the act of May 1, 1913 (P.L.155, No.104),
    19  entitled "An act regulating the letting of certain contracts for
    20  the erection, construction, and alteration of public buildings,"
    21  the act of August 15, 1961 (P.L.987, No.442), known as the
    22  "Pennsylvania Prevailing Wage Act" and the act of March 3, 1978
    23  (P.L.6, No.3), known as the "Steel Products Procurement Act."
    24     (4)  Nonpublic transportation as provided in section 1361.
    25     (5)  A requirement of Federal law.
    26     Section 2.  All acts and parts of acts are repealed insofar
    27  as they are inconsistent with this act.
    28     Section 3.  This act shall take effect immediately.


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