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        PRIOR PRINTER'S NOS. 259, 1242, 1364          PRINTER'S NO. 1414

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 252 Session of 1989


                     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. 252, 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 GROUP INSURANCE
        CONTRACTS; further providing for property tax assessment in
        certain school districts; FURTHER PROVIDING FOR SUBMISSION OF
        BUDGETS BY INTERMEDIATE UNITS; PROVIDING FOR THE USE OF CERTAIN
        RETURNED FUNDS; AND PROVIDING FOR BUSINESS ADMINISTRATORS,"


        respectfully submit the following bill as our report:

                                                           RALPH W. HESS

                                                        F. JOSEPH LOEPER

                                                        ROBERT J. MELLOW

                                  (Committee on the part of the Senate.)

                                                        RONALD R. COWELL

                                                             MAX PIEVSKY

                                                    SAMUEL E. HAYES, JR.

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



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    19890S0252B1414                  - 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 filling
     6     vacancies on certain boards of school directors, for group
     7     insurance contracts and for property tax assessments in
     8     certain school districts; providing for business
     9     administrators; further providing for the duties of the State
    10     Board of Education; further providing for an economic
    11     supplement; further defining "personal income valuation" and
    12     "market value/income aid ratio" to expand tax credits for
    13     income earned out-of-State; further providing for subsidies;
    14     providing for equipment grants; and making editorial changes.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Sections 315, 316 and 317 of the act of March 10,
    18  1949 (P.L.30, No.14), known as the Public School Code of 1949,
    19  amended November 28, 1973 (P.L.361, No.127), are amended to
    20  read:
    21     Section 315.  Filling of Vacancies.--In case any vacancy
    22  shall occur in any board of school directors by reason of death,
    23  resignation, removal from the district, or otherwise, such
    24  vacancy shall, in a school district of the first class [or of
    25  the first class A], be filled for the unexpired term by the
    26  court of common pleas of the county in which such school
    27  district is situated from the qualified electors of the
    28  district; and in a school district of the second, third, or
    29  fourth classes, the remaining members of the board of school
    30  directors shall, by a majority vote thereof, fill such vacancy
    31  from the qualified electors of the district within thirty (30)
    32  days thereafter. In a district of the second, third, or fourth
    33  class, the person selected to fill such vacancy shall be a
    34  qualified elector of the district and shall hold his office, if
    35  the term thereof so long continues, until the first Monday of

    19890S0252B1414                  - 3 -

     1  December after the first municipal election occurring more than
     2  sixty (60) days after [his appointment] the vacancy shall have
     3  occurred. At such election an eligible person shall be elected
     4  for the remainder of the unexpired term. If, by reason of a tie
     5  vote or otherwise, such vacancy shall not have been filled by
     6  the board of school directors within thirty (30) days after such
     7  vacancy shall have occurred from the qualified electors of the
     8  district, the court of common pleas of the proper county, upon
     9  the petition of ten or more resident taxpayers, shall fill such
    10  vacancy by the appointment of a suitable person from the
    11  qualified electors of the district if the term of the vacant
    12  office so long continues, until the first Monday of December
    13  after the first municipal election occurring more than sixty
    14  (60) days after [his appointment] the vacancy shall have
    15  occurred. At such election an eligible person shall be elected
    16  for the remainder of the unexpired term. When any member of a
    17  board of school directors heretofore or hereafter enlists or is
    18  inducted into the military or naval forces of the United States
    19  in time of war, a temporary vacancy shall be declared, which
    20  shall be filled by the remaining members of the board or the
    21  court, as the case may be from the qualified electors of the
    22  district, until the return of such member of the board from the
    23  military or naval service, or until the expiration of the term
    24  for which he shall have been elected, whichever shall be the
    25  shorter period.
    26     Section 316.  Vacancies in Majority of Members.--In case
    27  vacancies occur whereby the offices of a majority of the members
    28  of any board of school directors, other than the board of school
    29  directors of a school district of the first class or of the
    30  first class A becomes vacant, such vacancies shall be filled by
    19890S0252B1414                  - 4 -

     1  the court of common pleas of the county in which such school
     2  district is situated from the qualified electors of the
     3  district. The persons selected to fill such vacancies shall hold
     4  their offices, if the terms thereof continue so long, until the
     5  first Monday in December after the first municipal election
     6  occurring more than sixty (60) days after [their appointment]
     7  the vacancy shall have occurred, at which election eligible
     8  persons shall be elected for the remainder of the respective
     9  unexpired term.
    10     Section 317.  Vacancies in All Members.--If at any time
    11  vacancies exist or occur in the membership of all the members of
    12  any board of school directors in any school district, other than
    13  a school district of the first class or of the first class A,
    14  the court of common pleas of the county in which such district,
    15  or the largest part in area thereof, is located, shall, after
    16  ten (10) days from the time such vacancies exist or occur,
    17  appoint a board of properly qualified persons from the qualified
    18  electors of the district who shall serve, if the terms thereof
    19  continue so long, until the first Monday in December after the
    20  first municipal election occurring more than sixty (60) days
    21  after [their appointment] the vacancy shall have occurred; at
    22  which election a board of school directors for such district
    23  shall be elected for the remainder of the respective unexpired
    24  term. Whenever a vacancy of the entire membership of a board of
    25  school directors in any school district of the fourth class
    26  occurs, the executive director of the intermediate unit may
    27  enter and take full charge of and, at the expense of the
    28  district, maintain the schools thereof in accordance with the
    29  provisions of the school laws of the Commonwealth, under the
    30  direction of the Secretary of Education, and may continue in
    19890S0252B1414                  - 5 -

     1  charge thereof until a board of school directors has been
     2  appointed from the qualified electors of the district and has
     3  qualified.
     4     Section 2.  Section 513(b.1) of the act, added October 20,
     5  1988 (P.L.827, No.110), is amended to read:
     6     Section 513.  Group Insurance Contracts.--* * *
     7     (b.1)  (1)  School districts, intermediate units and area
     8  vocational-technical schools shall give employes and their
     9  dependents, upon the employe's retirement, the option of
    10  continuing coverage in the group health plan to which they
    11  belonged as employes.
    12     (2)  Notwithstanding the provisions of Title XXII of the
    13  Public Health Service Act (58 Stat. 682, 42 U.S.C. § 300 bb-1 et
    14  seq.) and amendments thereto, annuitants of the Public School
    15  Employees' Retirement System may continue to purchase that
    16  coverage after retirement, as defined in paragraph (4), until
    17  sixty-five years of age or until they are covered by another
    18  plan. An annuitant who is eligible to be covered as an employe
    19  or dependent by any other employer-provided health plan shall
    20  not be eligible for coverage in the school unit's health plan:
    21  Provided, however, That such annuitant shall be eligible for
    22  reinstatement in the school unit's health plan whenever such
    23  alternate coverage ceases.
    24     (3)  Purchase of the coverage provided for in this subsection
    25  shall equal the cost of the program for active employes and
    26  dependents plus an additional two per centum.
    27     (4)  For purposes of this section, an annuitant shall mean a
    28  member of the Public School Employees' Retirement System who has
    29  taken superannuation retirement, has retired with thirty (30) or
    30  more years of credited service, or has taken disability
    19890S0252B1414                  - 6 -

     1  retirement.
     2     (5)  Qualifying annuitants who retired from the school entity
     3  prior to July 1, 1989, or subsequent to that date shall be
     4  eligible for continuing coverage under the school unit's group
     5  health plan. No qualifying annuitant, however, may purchase such
     6  coverage until July 1, 1989. Annuitants shall be required to
     7  comply with the following conditions in order to purchase
     8  continuing coverage as provided in this section:
     9     (i)  Annuitants who retired prior to July 1, 1989, shall,
    10  within sixty (60) days of the effective date of this act, be
    11  notified by the Public School Employees' Retirement System of
    12  their entitlement to purchase continuing medical coverage as
    13  provided herein. Within forty-five (45) days from the date of
    14  such notice, annuitants who elect to purchase continuing
    15  coverage shall provide written notification to the school unit
    16  from which they retired of their decision to enroll in its
    17  health plan.
    18     (ii)  Annuitants who retire after July 1, 1989, shall, within
    19  sixty (60) days of their retirement, be notified by the school
    20  unit to which they belonged at the time of retirement of their
    21  entitlement to purchase continuing medical coverage as provided
    22  herein. Within forty-five (45) days from the date of such
    23  notice, annuitants who elect to purchase continuing coverage
    24  shall provide written notification to the school unit of their
    25  decision to enroll in the health plan to which they belonged at
    26  the time of retirement.
    27     (iii)  The school unit shall be responsible for providing
    28  annuitants with written notification of deadlines for payment of
    29  premiums. Failure to pay prescribed premiums and fees, as
    30  provided in this section, in not less than sixty (60) days from
    19890S0252B1414                  - 7 -

     1  the date of notice, shall automatically terminate eligibility of
     2  an annuitant to participate in the health care plan: Provided,
     3  however, That nothing in this subsection shall prohibit the
     4  reinstatement of persons into the health plan in accordance with
     5  procedures established by the school unit, consistent with
     6  policies of the provider of the health plan.
     7     (6)  School districts, intermediate units and area
     8  vocational-technical schools shall report annually to the
     9  Department of Education the increased costs resulting
    10  exclusively from the inclusion of qualified annuitants and their
    11  dependents in the entity's group health plan, for the purpose of
    12  evaluating the feasibility of future Commonwealth funding.
    13     * * *
    14     Section 3.  Section 677.1 of the act, amended July 22, 1970
    15  (P.L.555, No.191), is amended to read:
    16     Section 677.1.  Additions and Revisions to Duplicates.--
    17  Whenever in second, third and fourth class school districts
    18  there is any construction of a building or buildings not
    19  otherwise exempt as a dwelling[, after September first of any
    20  year] and such building is not included in the tax duplicate of
    21  the school district, the authority responsible for assessments
    22  in the city, borough, township or county shall, upon the request
    23  of the board of school directors, direct the assessor in the
    24  district to inspect and [reassess] assess, subject to the right
    25  of appeal and adjustment provided by the act of Assembly under
    26  which assessments are made, all taxable property in the district
    27  to which major improvements have been made [after September
    28  first,] and to give notice of such [reassessments] change in the
    29  assessed valuation within ten days to the authority responsible
    30  for assessments, the school district and the property owner.
    19890S0252B1414                  - 8 -

     1  Such property shall then be added to the duplicate, and shall be
     2  taxable for school purposes at the [reassessed] assessed
     3  valuation for that proportionate part of the fiscal year of the
     4  school district remaining after the property was improved. Any
     5  improvement made during the month shall be computed as having
     6  been made on the first of the next succeeding month. A certified
     7  copy of the additions or revisions to the duplicate shall be
     8  furnished monthly by the board of school directors to the tax
     9  collector for the district, and within ten days thereafter the
    10  tax collector shall notify the owner of the property of the
    11  taxes due the school district.
    12     Section 4.  The act is amended by adding a section to read:
    13     Section 1089.  Business Administrator.--(a)  A governing
    14  board of a school entity may employ or continue to employ a
    15  person serving in the function of business administrator of the
    16  school entity who shall perform such duties as the governing
    17  board may determine, including, but not limited to, the business
    18  responsibilities specified in section 433 of this act.
    19     (b)  The governing board may enter into a written employment
    20  agreement with a person hired after the effective date of this
    21  section to serve as a business administrator or into an amended
    22  or renewed agreement with a person serving in that function as
    23  of such effective date. The agreement may define the period of
    24  employment, salary, benefits, other related matters of
    25  employment and provisions of renewal and termination of the
    26  agreement.
    27     (c)  Unless otherwise specified in an employment agreement,
    28  the governing board shall, after due notice, giving the reasons
    29  therefor, and after hearing if demanded, have the right at any
    30  time to remove a business administrator for incompetency,
    19890S0252B1414                  - 9 -

     1  intemperance, neglect of duty, violation of any of the school
     2  laws of this Commonwealth or other improper conduct.
     3     (d)  A person serving as business administrator shall not be
     4  a member of the governing board of the school entity.
     5     (e)  A person serving as business administrator may serve as
     6  secretary or treasurer of the governing board.
     7     (f)  For purposes of this section, the term "school entity"
     8  shall mean a school district, intermediate unit or an area
     9  vocational-technical school. The term "governing board" shall
    10  mean the board of directors or joint board of such entity.
    11     Section 5.  Section 1472 of the act is amended by adding a
    12  subsection to read:
    13     Section 1372.  Exceptional Children; Education and
    14  Training.--* * *
    15     (1.1)  During the school year 1989-1990 the following
    16  provisions shall apply to the State Board of Education.
    17     (i)  Not later than March 1, 1990, the State Board of
    18  Education shall adopt revised Chapter 13 Special Education
    19  regulations and approve revised 22 Pa. Code, Ch. 341 department
    20  standards for the education and training of exceptional
    21  children, and such revised regulations and standards shall be
    22  effective beginning with the school year and fiscal year 1990-
    23  1991. Such revised regulations and standards shall, at a minimum
    24  provide measures as may be necessary to assure fiscal
    25  accountability, prudent management, appropriate education
    26  support services and special classes to meet the needs of
    27  pupils, and assurance of continued service to children receiving
    28  special education instruction and services on the effective date
    29  of such revised regulations and standards, including a
    30  requirement that no changes in such instruction or service be
    19890S0252B1414                 - 10 -

     1  made unless through changes in the child's Individualized
     2  Education Program.
     3     (ii)  Due to the urgent need for an expedited but public
     4  regulatory process, the State Board of Education, in adopting
     5  such revised regulations and approving such revised department
     6  standards shall follow the procedures set forth in this
     7  subsection.
     8     (A)  The State Board of Education shall conduct such public
     9  hearings and receive such testimony as it deems appropriate,
    10  provided, however, that the State Board of Education conduct at
    11  least three public hearings prior to the final adoption of such
    12  revised regulations and approval of such revised department
    13  standards. Not later than November 10, 1989, at the time the
    14  State Board of Education announces its intention to adopt such
    15  revised regulations and to approve such revised department
    16  standards, it shall announce its intention pursuant to the
    17  provisions of the act of July 31, 1968 (P.L.769, No.240),
    18  referred to as the Commonwealth Documents Law, and shall
    19  transmit copies of such proposed regulations and standards to
    20  the Chairmen of the standing Committees on Education of the
    21  Senate and House of Representatives to permit those Committees
    22  thirty (30) days to review and comment upon such proposed
    23  regulations and standards. At the time the State Board finally
    24  adopts such final form regulations and approves such revised
    25  department standards, it shall transmit copies of such
    26  regulations and standards to the Chairmen of the standing
    27  Committees' on Education of the Senate and House of
    28  Representatives and the Independent Regulatory Review
    29  Commission. The final form regulations and revised department
    30  standards shall be subject to review in accordance with the
    19890S0252B1414                 - 11 -

     1  procedures set forth in the act of June 25, 1982 (P.L.633,
     2  No.181), known as the "Regulatory Review Act," for proposed
     3  final regulations. Other than as herein provided regulations
     4  adopted pursuant to this paragraph shall not be subject to
     5  review under the act of June 25, 1982 (P.L.633, No.181), known
     6  as the "Regulatory Review Act."
     7     (B)  The State Board of Education may transmit to the
     8  Governor and the Secretary of Education, recommendations, if
     9  any, for changes in statutes.
    10     (iii)  The Department of Education shall require the
    11  submission of appropriate program and fiscal data from the
    12  school districts and intermediate units in order to assist in
    13  the development of regulations, and proposed program standards.
    14  Each school district and intermediate unit shall provide such
    15  data at such time and in such form as the department may
    16  require.
    17     Section 6.  Section 1376 of the act, amended December 20,
    18  1983 (P.L.267, No.73), is amended to read:
    19     Section 1376.  Cost of Tuition and Maintenance of Certain
    20  Exceptional Children in Approved Institutions.--(a)  When any
    21  child between [the ages of six (6)] school entry age and twenty-
    22  one (21) years of age and resident in this Commonwealth, who is
    23  blind or deaf, or afflicted with cerebral palsy and/or brain
    24  damage and/or muscular dystrophy and/or mentally retarded and/or
    25  socially and emotionally disturbed, is enrolled, with the
    26  approval of the Department of Education, as a pupil in an
    27  approved private school for the blind or deaf, or cerebral
    28  palsied and/or brain damaged and/or muscular dystrophied and/or
    29  mentally retarded, and/or socially and emotionally disturbed,
    30  approved by the Department of Education, in accordance with
    19890S0252B1414                 - 12 -

     1  standards and regulations promulgated by the [Council of Basic]
     2  State Board of Education, the school district in which such
     3  child is resident shall pay the greater of either twenty per
     4  centum (20%) of the actual audited cost of tuition and
     5  maintenance of such child in such school, as determined by the
     6  Department of Education; or its "tuition charge per elementary
     7  pupil" or its "tuition charge per high school pupil," and the
     8  Commonwealth shall pay, out of funds appropriated to the
     9  department for special education, [eighty per centum (80%) of
    10  the cost of their] the balance due for the costs of such child's
    11  tuition and maintenance, as determined by the [Department.]
    12  department. For the school years 1989-1990, 1990-1991 and 1991-
    13  1992, the school district payment shall be no greater than forty
    14  percent (40%) of the actual audited costs of tuition and
    15  maintenance of such child in such school. The department will
    16  credit the district of residence with average daily membership
    17  for such child consistent with the rules of procedure developed
    18  in accordance with section 2501. If the residence of such child
    19  in a particular school district cannot be determined, the
    20  Commonwealth shall pay, out of moneys appropriated to the
    21  department for special education, the whole cost of tuition and
    22  maintenance of such child. The Department of Education shall be
    23  provided with such financial data from approved private schools
    24  as may be necessary to determine the reasonableness of costs for
    25  tuition and room and board concerning Pennsylvania resident
    26  approved reimbursed students. The Department of Education shall
    27  evaluate such data and shall disallow any cost deemed
    28  unreasonable. Any costs deemed unreasonable by the Department of
    29  Education for disallowance shall be considered an adjudication
    30  within the meaning of Title 2 of the Pa.C.S. (relating to
    19890S0252B1414                 - 13 -

     1  administrative law and procedure) and regulations promulgated
     2  thereunder.
     3     (b)  When any person less than [six (6)] school entry age or
     4  more than twenty-one (21) years of age and resident in this
     5  Commonwealth, who is blind or deaf, or afflicted with cerebral
     6  palsy and/or brain damage and/or muscular dystrophy, is
     7  enrolled, with the approval of the Department of Education, as a
     8  pupil in an approved private school for the blind or deaf, or
     9  cerebral palsied and/or brain damaged and/or muscular
    10  dystrophied, approved by the Department of Education, the
    11  Commonwealth shall pay to such school, out of moneys
    12  appropriated to the department for special education, the actual
    13  audited cost of tuition and maintenance of such person, as
    14  determined by the Department of Education, subject to review and
    15  approval in accordance with standards and regulations
    16  promulgated by the [Council of Basic] State Board of Education,
    17  and in addition, in the case of any child less than [six (6)
    18  years of age] school entry age, who is blind, the cost, as
    19  determined by the Department of Education of instructing the
    20  parent of such blind child in caring for such child.
    21     (c)  Each approved private school, prior to the start of the
    22  school year, shall submit to the department such information as
    23  the department may require in order to establish an estimate of
    24  reimbursable costs. Based upon this information, any other data
    25  deemed necessary by the department and in accordance with
    26  department standards, the department shall develop for each
    27  approved private school an estimate of reimbursable costs. Based
    28  upon such estimate, the department shall provide each approved
    29  private school with quarterly payments in advance of department
    30  audit. The department may withhold a portion of such payments
    19890S0252B1414                 - 14 -

     1  not exceeding five percent (5%) of such payment, pending final
     2  audit. In no event shall either the advance payments or final
     3  reimbursement made by the department following audit exceed the
     4  appropriation available for approved private schools.
     5     (d)  No private institution receiving payment in accordance
     6  with this section shall impose any charge on the student and/or
     7  parents who are Pennsylvania approved reimbursable residents for
     8  a program of individualized instruction and maintenance
     9  appropriate to the child's needs; except that charges for
    10  services not part of such program may be made if agreed to by
    11  the parents.
    12     Section 7.  Section 1376.1 of the act, added May 31, 1979
    13  (P.L.33, No.11), is amended to read:
    14     Section 1376.1.  Actual Cost of Tuition and Maintenance of
    15  Certain Exceptional Children in the Four Chartered Schools for
    16  Education of the Deaf and the Blind.--(a)  The following term,
    17  whenever used or referred to in this section, shall have the
    18  following meaning. "Chartered school" shall mean any of the four
    19  (4) chartered schools for the education of the deaf or the
    20  blind: the Pennsylvania School for the Deaf; the Overbrook
    21  School for the Blind; the Western Pennsylvania School for Blind
    22  Children; and the Western Pennsylvania School for the Deaf.
    23     (b)  When any child of school age resident in this
    24  Commonwealth, who is blind or deaf, is enrolled with the
    25  approval of the Department of Education as a pupil in any of the
    26  four (4) chartered schools in accordance with standards and
    27  regulations promulgated by the [Council of Basic] State Board of
    28  Education, the school district in which such child is resident
    29  shall pay the greater of either twenty percent (20%) of the
    30  actual cost of tuition and maintenance of such child in such
    19890S0252B1414                 - 15 -

     1  institution, as determined by the Department of Education; or
     2  its "tuition charge per elementary pupil" or its "tuition charge
     3  per high school pupil," and the Commonwealth shall pay, out of
     4  funds appropriated to the department for special education,
     5  [eighty percent (80%) of the actual cost of their] the balance
     6  due for the costs of such child's tuition and maintenance, as
     7  determined by the department. For the school years 1989-90,
     8  1990-91 and 1991-92 the school district payment shall be no
     9  greater than forty percent (40%) of the actual audited costs of
    10  tuition and maintenance of such child in such school. The
    11  department will credit the district of residence with average
    12  daily membership for such child consistent with the rules of
    13  procedure developed in accordance with section 2501. If the
    14  residence of such child in a particular school district cannot
    15  be determined, the Commonwealth shall pay, out of moneys
    16  appropriated to the department for special education, the whole
    17  cost of tuition and maintenance of such child. The Department of
    18  Education shall be provided with such financial data from each
    19  of the chartered schools as may be necessary to determine the
    20  reasonableness of charges for tuition and room and board of each
    21  of the chartered schools made on Pennsylvania resident approved
    22  students. The Department of Education shall evaluate such data
    23  and shall disallow any charges deemed unreasonable. Any charge
    24  deemed unreasonable by the Department of Education for
    25  disallowance shall be considered an adjudication within the
    26  meaning of Title 2 of the Pa.C.S. (relating to administrative
    27  law and procedure) and regulations promulgated thereunder.
    28     (c)  When any person less than school age resident in this
    29  Commonwealth who is blind or deaf is enrolled, with the approval
    30  of the Department of Education, as a residential pupil in any of
    19890S0252B1414                 - 16 -

     1  the four (4) chartered schools, the Commonwealth shall pay to
     2  the school, out of moneys appropriated to the department for
     3  special education, the actual cost of tuition and maintenance of
     4  such person, as determined by the Department of Education,
     5  subject to review and approval in accordance with standards and
     6  regulations promulgated by the [Council of Basic] State Board of
     7  Education, and in addition, in the case of any child less than
     8  school age, who is blind, the cost, as determined by the
     9  Department of Education of instructing the parent of such blind
    10  child in caring for such child.
    11     (d)  None of the chartered schools receiving payment in
    12  accordance with this section shall impose any charge on the
    13  student and/or parents who are approved reimbursable residents
    14  for a program of instruction and maintenance appropriate to the
    15  child's needs; except that charges for programs not part of the
    16  normal school year may be made.
    17     Section 8.  Section 1377(a) and (b) of the act, amended May
    18  31, 1979 (P.L.33, No.11), are amended to read:
    19     Section 1377.  Payment of Cost of Tuition and Maintenance of
    20  Certain Exceptional Children.--(a)  To facilitate payments by
    21  the several school districts to the schools or institutions in
    22  which deaf or blind, or cerebral palsied and/or brain damaged
    23  and/or muscular dystrophied, or socially and emotionally
    24  disturbed or mentally retarded children are enrolled, of amounts
    25  due by such districts for their proportion of the cost of
    26  tuition and maintenance of such children, the Secretary of
    27  Education shall withhold from any moneys due to such districts
    28  out of any State appropriation for the assistance as
    29  reimbursement of school districts, the amounts due by such
    30  districts to such schools or institutions for the blind or the
    19890S0252B1414                 - 17 -

     1  deaf, or the cerebral palsied and/or brain damaged and/or
     2  muscular dystrophied or the socially and emotionally disturbed
     3  and/or mentally retarded. Amounts so withheld shall be [paid to
     4  such schools or institutions by warrant of the Auditor General
     5  upon the State Treasurer, after requisition of the Secretary of
     6  Education, for which purpose all amounts so withheld are hereby]
     7  specifically appropriated to the Department of Education.
     8     (b)  Payments of the Commonwealth's proportion of the cost of
     9  tuition and maintenance of blind or deaf, or cerebral palsied
    10  and/or brain damaged and/or muscular dystrophied, or socially
    11  and emotionally disturbed and/or mentally retarded pupils
    12  enrolled in schools or institutions for the blind or for the
    13  deaf, or for the cerebral palsied and/or brain damaged and/or
    14  muscular dystrophied, or for the socially and emotionally
    15  disturbed and of the cost of instruction of parents of blind
    16  pupils less than [six (6) years of] school entry age, as
    17  hereinbefore provided, shall be made quarterly, out of moneys
    18  appropriated to the Department of Education for special
    19  education[, by warrant of the Auditor General upon the State
    20  Treasurer, after requisition by the Secretary of Education].
    21  Except for the provisions of section 1376.1 providing for the
    22  actual cost of tuition and maintenance of certain exceptional
    23  children in the four chartered schools for education of the deaf
    24  and of the blind, in no event shall the total payment for the
    25  cost of tuition and maintenance of any such child exceed the
    26  rates per year allowed under section 1376. The maximum amount
    27  payable for the cost of tuition and maintenance of such children
    28  shall be subject to review at least once every two years for the
    29  purpose of recommending an adjustment thereof.
    30     * * *
    19890S0252B1414                 - 18 -

     1     Section 9.  Section 2501(9), (9.1), (14.1) and (19) of the
     2  act, amended or added August 24, 1977 (P.L.199, No.59), June 30,
     3  1980 (P.L.279, No.80) and October 20, 1988 (P.L.827, No.110),
     4  are amended and the section is amended by adding clauses to
     5  read:
     6     Section 2501.  Definitions.--For the purposes of this article
     7  the following terms shall have the following meanings:
     8     * * *
     9     (9)  "Real Property Valuation." A school district's [or],
    10  vocational school district's or municipality's real property
    11  valuation, to be used for purposes of computing the basic
    12  account standard reimbursement fraction, the subsidiary account
    13  reimbursement fraction, and the aid ratio shall be the valuation
    14  placed upon its taxable real property by the State Tax
    15  Equalization Board.
    16     (9.1)  "Personal Income Valuation." A school district's
    17  personal income valuation for purposes of reimbursement to a
    18  school district under subsections (d), (e), and (f) of section
    19  2502, and section 2592 shall be the valuation of the total
    20  taxable income for the tax year preceding the immediate prior
    21  year, determined under Article III of the act of March 4, 1971
    22  (P.L.6, No.2), known as the "Tax Reform Code of 1971," for each
    23  school district each year by the Secretary of Revenue and
    24  certified to the Secretary of Education. For the 1988-1989
    25  school year and each school year thereafter, the Secretary of
    26  Revenue, shall additionally certify, for those districts in
    27  which residents claim credit against the State personal income
    28  tax for income earned outside this Commonwealth under section
    29  314 of the "Tax Reform Code of 1971," the total number of
    30  persons claiming such out-of-State tax credits and the total
    19890S0252B1414                 - 19 -

     1  dollar amount of such tax credits claimed in the individual
     2  district.
     3     * * *
     4     (9.4)  "Municipal Equalized Millage." A city of the first
     5  through third class tax effort to be used for reimbursement
     6  under subsections (d) and (e) of section 2502 and section
     7  2502.11 shall be the amount of municipal taxes collected and
     8  reported to the Department of Community Affairs divided by the
     9  real property valuation of the municipality for the most recent
    10  year for which both municipality tax and real property valuation
    11  are available.
    12     (9.5)  "Municipal Median Equalized Millage."  For the school
    13  year 1988-1989 and each school year thereafter, the Secretary of
    14  Education shall annually calculate the equalized millage for
    15  which an equal number of cities of the first through third class
    16  are above and below for that year.
    17     * * *
    18     (14.1)  "Market Value/Income Aid Ratio." For purposes of
    19  reimbursement to a school district under subsections (d), (e),
    20  and (f) of section 2502, and section 2592, shall be the
    21  Commonwealth's method of determining the combined market value
    22  and income wealth for each pupil, and shall be computed as
    23  follows:
    24     (a)  (i)  Divide the market value per weighted average daily
    25  membership of the district by the market value per weighted
    26  average daily membership of the State;
    27     (ii)  Determine the product of (a)(i) multiplied by the
    28  district's share of total costs which is .5;
    29     (iii)  Subtract the resultant product in (a)(ii) from 1.000
    30  to determine the market value portion of the aid ratio.
    19890S0252B1414                 - 20 -

     1     (b)  (i)  Divide the income per weighted average daily
     2  membership of the district by the average personal income per
     3  weighted average daily membership of the State;
     4     (ii)  Determine the product of (b)(i) multiplied by the
     5  district's share of total costs which is .5;
     6     (iii)  Subtract the resultant product in (b)(ii) from 1.0000
     7  to determine the income aid ratio.
     8     (c)  Add sixty percent (60%) of the market value aid ratio to
     9  forty percent (40%) of the income aid ratio to determine the
    10  market value/income aid ratio.
    11     (d)  For payments beginning in the 1989-1990 school year and
    12  each school year thereafter, the Department of Education shall
    13  utilize an adjusted personal income valuation for the 1987 tax
    14  year and each tax year thereafter respectively in computing the
    15  market value/income aid ratio for such districts. The adjusted
    16  personal income valuation shall be calculated by dividing the
    17  total out-of-State tax credits claimed by the residents of a
    18  school district by the State personal income tax rate and
    19  subtracting that amount from the total personal income valuation
    20  for the individual school district. The State total personal
    21  income valuation shall remain that as certified by the
    22  Department of Revenue and shall not be adjusted to reflect out-
    23  of-State tax credits.
    24     * * *
    25     (19)  "Factor for Educational Expense." For the school years
    26  1982-1983 and 1983-1984, the factor for educational expense used
    27  to compute school district entitlements to payments on account
    28  of instruction, as provided for in subsection (d) of section
    29  2502, shall be one thousand six hundred fifty-six dollars
    30  ($1,656) unless later changed by statute. For the school year
    19890S0252B1414                 - 21 -

     1  1983-1984, the Factor for Educational Expense shall be one
     2  thousand seven hundred twenty-five dollars ($1,725), unless
     3  later changed by statute, for those school districts
     4  participating, during the 1984-1985 school year, in a Statewide
     5  program for testing and remediation which is designed to
     6  identify and provide remediation services to individual students
     7  pursuant to section 1511.1. For the 1984-1985 school year,
     8  notwithstanding any other provisions of this act to the
     9  contrary, the Factor for Educational Expense used to compute all
    10  school districts' entitlements to payments on account of
    11  instruction, as provided for in subsection (d) of section 2502,
    12  shall be one thousand eight hundred seventy-five dollars
    13  ($1,875). For the 1985-1986 school year, the Factor for
    14  Educational Expense used to compute all school districts'
    15  entitlements to payments on account of instruction, as provided
    16  for in subsection (d) of section 2502, shall be one thousand
    17  nine hundred seventy dollars ($1,970). For the 1986-1987 school
    18  year, the Factor for Educational Expense used to compute all
    19  school districts' entitlements to payments on account of
    20  instruction, as provided for in subsection (d) of section 2502,
    21  shall be two thousand one hundred twenty-five dollars ($2,125).
    22  For the school year 1987-1988 [and each school year thereafter],
    23  the Factor for Educational Expense used to compute all school
    24  districts' entitlements to payments on account of instruction,
    25  as provided for in subsection (d) of section 2502, shall be two
    26  thousand two hundred thirty dollars ($2,230). For the school
    27  year 1988-1989 and each school year thereafter, the Factor for
    28  Educational Expense used to compute all school districts'
    29  entitlements to payments on account of instruction, as provided
    30  for in subsection (d) of section 2502, shall be two thousand
    19890S0252B1414                 - 22 -

     1  three hundred thirty dollars ($2,330).
     2     Section 10.  Section 2502.5(b) and (e) of the act, amended
     3  October 20, 1988 (P.L.827, No.110), are amended to read:
     4     Section 2502.5.  Limitation of Certain Payments.--* * *
     5     (b)  Notwithstanding any other provisions of law, for the
     6  school year 1982-1983 and 1983-1984, no school district shall be
     7  paid under subsections (d) and (e) of section 2502 and section
     8  2502.11 or, for the school year 1984-1985, no school district
     9  shall be paid under subsections (d) and (e) of section 2502,
    10  subsection (e) of this section, section 2502.11 and section
    11  2502.13 or, for the school year 1985-1986, no school district
    12  shall be paid under subsections (d) and (e) of section 2502,
    13  subsection (e) of this section, section 2502.11, section
    14  2502.13, section 2502.14 and section 2502.15 or, for the school
    15  year 1986-1987, no school district shall be paid under
    16  subsections (d) and (e) of section 2502, subsection (e) of this
    17  section, section 2502.11, section 2502.13 and section 2502.15
    18  or, for the school year 1987-1988 [and each school year
    19  thereafter], no school district shall be paid under subsections
    20  (d) and (e) of section 2502, subsection (e) of this section,
    21  sections 2502.11 and 2502.13 or, for the school year 1988-1989
    22  and each school year thereafter, no school district shall be
    23  paid under subsections (d) and (e) of section 2502, sections
    24  2502.11 and 2502.13 an amount in excess of one hundred percent
    25  (100%) of the total reimbursable instructional expenditures of
    26  the school district. For the 1982-1983 school year, all school
    27  districts qualifying for payments under subsections (d) and (e)
    28  of section 2502 and section 2502.11 shall be limited to an
    29  increase payment on account of those sections which shall not
    30  exceed nine percent (9%) over the sums received on account of
    19890S0252B1414                 - 23 -

     1  section 2502.9 for the 1981-1982 school year, nor shall any
     2  school district receive an increase of less than two percent
     3  (2%) of the 1982-1983 school year payments on account of the
     4  1981-1982 school year. For the 1984-1985 school year, each
     5  school district qualifying for payments under subsections (d)
     6  and (e) of section 2502 and section 2502.11 shall be limited to
     7  an increase payment on account of those sections which shall not
     8  exceed eight and forty-five one hundredths percent (8.45%) over
     9  the sums received on account of such sections for the school
    10  year 1983-1984, nor shall any school district receive an
    11  increase of less than two percent (2%) of such payments for the
    12  school year 1983-1984: Provided, however, That such payments for
    13  the school year 1983-1984 shall be computed using a Factor for
    14  Educational Expense of one thousand six hundred fifty-six
    15  dollars ($1,656) and a maximum payment increase of seven and
    16  forty-five one hundredths percent (7.45%) and a minimum payment
    17  increase of two percent (2%) and the eighty percent (80%)
    18  guarantee provided for in section 2502.5(e). For the 1985-1986
    19  school year, each school district qualifying for payments under
    20  subsections (d) and (e) of section 2502, subsection (e) of this
    21  section and section 2502.11 shall be limited to an increase
    22  payment on account of those sections which shall not exceed
    23  seven percent (7%) over the sums received on account of such
    24  sections for the school year 1984-1985, nor shall any school
    25  district receive an increase less than two percent (2%) of such
    26  payments for the school year 1984-1985. For the 1986-1987 school
    27  year, each school district qualifying for payments under
    28  subsections (d) and (e) of section 2502, subsection (e) of this
    29  section and section 2502.11 shall be limited to an increase
    30  payment on account of those sections which shall not exceed
    19890S0252B1414                 - 24 -

     1  eight percent (8%) over the sums received on account of such
     2  sections and section 2502.14 for the school year 1985-1986, nor
     3  shall any school district receive an increase less than two
     4  percent (2%) of such payment for the school year 1985-1986. For
     5  the 1987-1988 school year [and each school year thereafter],
     6  each school district qualifying for payments under subsections
     7  (d) and (e) of section 2502, subsection (e) of this section and
     8  section 2502.11 shall be limited to an increase payment on
     9  account of those sections which shall not exceed eight percent
    10  (8%) over the sums received on account of such sections and
    11  section 2502.15 for the school year 1986-1987, nor shall any
    12  school district receive an increase less than two percent (2%)
    13  of such payments for the school year 1986-1987. For the 1988-
    14  1989 school year and each school year thereafter, no school
    15  district qualifying for payments under subsections (d) and (e)
    16  of section 2502, subsection (e) of this section, and section
    17  2502.11 shall receive an increase less than two percent (2%) of
    18  such payments for the prior school year.
    19     (e)  For the school years 1983-1984 and 1984-1985, no school
    20  district shall be paid under subsections (d) and (e) of section
    21  2502, subsection (e) of this section, and under section 2502.11
    22  less than eighty percent (80%) of the total amount to which it
    23  is entitled under said sections, notwithstanding any limitations
    24  on increases in such payments enacted by the General Assembly to
    25  the contrary. For the school year 1985-1986, no school district
    26  shall be paid under subsections (d) and (e) of section 2502 and
    27  under section 2502.11 less than eighty-five percent (85%) of the
    28  total amount to which it is entitled under said sections,
    29  notwithstanding any limitations on increases in such payments
    30  enacted by the General Assembly to the contrary. For the school
    19890S0252B1414                 - 25 -

     1  year 1986-1987, no school district shall be paid under
     2  subsections (d) and (e) of section 2502 and under section
     3  2502.11 less than ninety percent (90%) of the total amount to
     4  which it is entitled under said sections, notwithstanding any
     5  limitations on increases in such payments enacted by the General
     6  Assembly to the contrary. For the school year 1987-1988 [and
     7  each school year thereafter], no school district shall be paid
     8  under subsections (d) and (e) of section 2502 and under section
     9  2502.11 less than ninety-five percent (95%) of the total amount
    10  to which it is entitled under said sections, notwithstanding any
    11  limitations on increases in such payments enacted by the General
    12  Assembly to the contrary. For the school year 1983-1984,
    13  payments under this subsection shall be computed using a Factor
    14  for Educational Expense of one thousand six hundred fifty-six
    15  dollars ($1,656) and a maximum payment increase of seven and
    16  forty-five one hundredths percent (7.45%) and a minimum payment
    17  increase of two percent (2%). For the school year 1984-1985 and
    18  each school year thereafter, payments under this subsection
    19  shall be computed using the Factor for Educational Expense as
    20  defined in section 2501(19) and minimum and maximum increase
    21  limits provided for in subsection (b) of this section. No school
    22  district shall, as a result of this subsection, be paid an
    23  amount in excess of one hundred percent (100%) of the total
    24  reimbursable instructional expenditures of the school district.
    25     Section 11.  Section 2502.11(c) of the act, amended June 29,
    26  1984 (P.L.438, No.93), is amended and the section is amended by
    27  adding a subsection to read:
    28     Section 2502.11.  Economic Supplement.--* * *
    29     (c)  For the school year 1982-1983 [and each school year
    30  thereafter] through the school year 1987-1988, any district
    19890S0252B1414                 - 26 -

     1  which levies and collects local taxes for school purposes equal
     2  to or above the median equalized millage, as defined in section
     3  2501(9.3), in the year for which reimbursement is determined
     4  shall qualify for and receive a payment based upon local tax
     5  effort and population per square mile in accordance with the
     6  following table, except for qualifying districts which include a
     7  central city of a Standard Metropolitan Statistical Area and
     8  have a district population of less than four thousand (4,000)
     9  persons per square mile, which districts shall receive three
    10  percent (3%) of their instructional expenditures:
    11         Population Per Square Mile       Payment as Percent of
    12         of the Qualifying District      Instructional Expenditure
    13             5,950 and over                          5
    14             4,000 - 5,949                           3
    15             less than 4,000                         1
    16  Notwithstanding the provisions of this subsection, districts
    17  having a general population of five thousand nine hundred fifty
    18  (5,950) or more persons per square mile and at least thirty-five
    19  thousand (35,000) WADMs shall be paid nineteen percent (19%) of
    20  their instructional expenditures.
    21     (d)  For the school year 1988-1989 and each school year
    22  thereafter, any district which levies and collects local taxes
    23  for school purposes equal to or above the median equalized
    24  millage, as defined in section 2501(9.3), in the year for which
    25  reimbursement is determined or any school district the majority
    26  of whose population is drawn from a city of the first through
    27  third class which levies and collects local taxes for municipal
    28  purposes equal to or above the municipal median equalized
    29  millage, as defined in section 2501(9.5) for the most recent
    30  municipal fiscal year for which data is available shall qualify
    19890S0252B1414                 - 27 -

     1  for and receive a payment based upon local tax effort and
     2  population per square mile in accordance with the following
     3  table, except for qualifying districts which include a central
     4  city of a Standard Metropolitan Statistical Area and have a
     5  district population of less than four thousand (4,000) persons
     6  per square mile, which districts shall receive three percent
     7  (3%) of their instructional expenditures:
     8         Population Per Square Mile       Payment as Percent of
     9         of the Qualifying District      Instructional Expenditure
    10             5,950 and over                          5
    11             4,000 - 5,949                           3
    12             less than 4,000                         1
    13  Qualifying districts having a general population of five
    14  thousand nine hundred fifty (5,950) or more persons per square
    15  mile and at least thirty-five thousand (35,000) WADMs shall be
    16  paid nineteen percent (19%) of their instructional expenditures.
    17     Section 12.  Section 2502.13 of the act, amended October 20,
    18  1988 (P.L.827, No.110), is amended to read:
    19     Section 2502.13.  Small District Assistance.--For the 1984-
    20  1985 and 1985-1986 school years, the Commonwealth shall pay to
    21  each school district which has an average daily membership of
    22  one thousand five hundred (1,500) or less and has a market
    23  value/income aid ratio of five thousand ten-thousandths (0.5000)
    24  or greater, an amount equal to fifty dollars ($50) multiplied by
    25  that district's average daily membership. For the 1985-1986
    26  school year, no school district shall receive less on account of
    27  this section than it did for the 1984-1985 school year. For the
    28  school year 1986-1987, the Commonwealth shall pay to each school
    29  district which has an average daily membership of one thousand
    30  five hundred (1,500) or less and has a market value/income aid
    19890S0252B1414                 - 28 -

     1  ratio of five thousand ten-thousandths (0.5000) or greater, or
     2  received payments under this section for the 1985-1986 school
     3  year, an amount equal to seventy-five dollars ($75) multiplied
     4  by that district's average daily membership. For the school year
     5  1987-1988 [and each school year thereafter], the Commonwealth
     6  shall 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 1986-1987 school year, an amount equal to eighty-five
    11  dollars ($85) multiplied by that district's average daily
    12  membership. For the school year 1988-1989, and each school year
    13  thereafter, 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 1987-1988 school year, an
    18  amount equal to one hundred five dollars ($105) multiplied by
    19  that district's average daily membership. For the 1987-1988
    20  school year and each school year thereafter, no school district
    21  shall receive less on account of this section than it did for
    22  the [1986-1987] prior school year.
    23     Section 13.  Section 2509.1 of the act, amended January 14,
    24  1970 (1969 P.L.468, No.192), is amended to read:
    25     Section 2509.1.  Payment on Account of Transportation,
    26  Classes and Schools for Exceptional and Institutionalized
    27  Children.--Annually, before the first day of July, every
    28  intermediate unit shall submit, for prior review and approval by
    29  the Department of [Public Instruction] Education, an estimate of
    30  the cost of operating and administering classes or schools for
    19890S0252B1414                 - 29 -

     1  exceptional and institutionalized children, including the cost
     2  of such fiscal controls as auditing and necessary treasurer's
     3  and secretary's bonds to be operated by the intermediate unit
     4  during the ensuing school year, and for transportation of pupils
     5  to and from classes and schools for exceptional children,
     6  whether or not conducted by the intermediate unit. On or before
     7  the first day of August, the Commonwealth shall pay to the
     8  intermediate unit a sum equal to one-half of the approved
     9  estimated annual cost of operation and administration of classes
    10  and schools for exceptional and institutionalized children and
    11  transportation for exceptional children and, on or before the
    12  first day of January, shall pay an equal sum, or a lesser sum as
    13  may be shown to be necessary by an adjusted budget based upon
    14  expenditures during the first half of the school term. At the
    15  end of each school year all unexpended funds shall be credited
    16  to Commonwealth. Payments due for the succeeding school year on
    17  account of the operation of such classes or upon direction of
    18  the [Superintendent of Public Instruction] Secretary of
    19  Education shall be returned to the Commonwealth. All such funds
    20  returned are hereby specifically appropriated to the Department
    21  of [Public Instruction] Education for support of schools and
    22  classes, and transportation for exceptional children. For each
    23  child enrolled in any special class or school for exceptional
    24  children operated by an intermediate unit, the school district
    25  in which the child is resident shall pay to the Commonwealth a
    26  sum equal to the "tuition charge per elementary pupil" or the
    27  "tuition charge per high school pupil," as determined for the
    28  schools operated by the district or by a joint board of which
    29  the district is a member, [based upon the costs of the preceding
    30  school term] for the same year in which the special class or
    19890S0252B1414                 - 30 -

     1  school is operated, as provided for in section two thousand five
     2  hundred sixty-one of the act to which this is an amendment. In
     3  the event that any school district has not established such
     4  "tuition charge per elementary pupil" or "tuition charge per
     5  high school pupil," the [Superintendent of Public Instruction]
     6  Secretary of Education shall fix a reasonable charge for such
     7  district for the year in question. In addition, the district
     8  shall pay on account of transportation by the intermediate unit
     9  of pupils to and from classes and schools for exceptional
    10  children, whether or not conducted by the intermediate unit, an
    11  amount to be determined by subtracting from the cost of
    12  transportation per pupil the reimbursement due the district on
    13  account of such transportation in order to facilitate such
    14  payments by the several school districts. The [Superintendent of
    15  Public Instruction] Secretary of Education shall withhold from
    16  any moneys due to such district out of any state appropriation,
    17  except from reimbursements due on account of rentals as provided
    18  in section two thousand five hundred eleven point one of the act
    19  to which this is an amendment, the amounts due by such school
    20  districts to the Commonwealth. All amounts so withheld are
    21  hereby specifically appropriated to the Department of [Public
    22  Instruction] Education for the support of public schools. The
    23  cost of operating and administering classes and schools for
    24  institutionalized children, including the cost of necessary
    25  fiscal controls, shall be paid by the Commonwealth.
    26     Section 14.  The act is amended by adding a section to read:
    27     Section 2509.4.  Payments on Account of Special Education
    28  Services.--(a)  For the school year 1989-1990, the following
    29  provisions shall apply to the Commonwealth's payments of funds
    30  to school districts and intermediate units for the provisions of
    19890S0252B1414                 - 31 -

     1  special education services.
     2     (1)  On or before the first day of August, the Commonwealth
     3  shall pay to school districts and intermediate units an amount
     4  which represents fifty per centum (50%) of the total State funds
     5  available for such programs operated in the school year 1989-
     6  1990.
     7     (2)  On January 1, 1990, a second payment shall be made to
     8  school districts and intermediate units consisting of one-fourth
     9  (1/4) of the total State funds available for such programs
    10  operated in the school year 1989-1990.
    11     (3)  If, by March 1, 1990, the State Board of Education has
    12  adopted revisions to Chapter 13 Special Education regulations
    13  and/or the 22 Pa. Code, Ch. 341 standards, the final payment
    14  shall consist of the remaining State funds available for such
    15  programs operated in the school year 1989-1990. If, on March 1,
    16  1990, the State Board of Education has not adopted revisions to
    17  Chapter 13 Special Education regulations and/or 22 Pa. Code, Ch.
    18  341 standards, but the Secretary of the Budget determines that
    19  sufficient progress has been made, a one-time waiver in order to
    20  make an additional payment of no more than one-eighth (1/8) of
    21  the total State funds available for such programs operated in
    22  the school year 1989-1990 may be made.
    23     (b)  From the funds appropriated in the 1989-1990 fiscal year
    24  and notwithstanding the provisions of subsection (a)(1), (2) and
    25  (3), fifty million dollars ($50,000,000) shall be paid on August
    26  1, 1989, to school districts for programs operated in school
    27  year 1988-1989 with the additional payment of forty-nine million
    28  dollars ($49,000,000) of the funds due the school districts for
    29  the programs operated in school year 1988-1989 to be paid on or
    30  before December 1, 1989. Any adjustments to these payments may
    19890S0252B1414                 - 32 -

     1  be made in June 1990 on the basis of actual data.
     2     Section 15.  The act is amended by adding an article to read:
     3                          ARTICLE XXVII-D
     4                          EQUIPMENT GRANTS
     5     Section 2701-D.  Definitions.--When used in this article the
     6  following words and phrases shall have the following meanings:
     7     "Community colleges" shall mean institutions now, or
     8  hereafter, created pursuant to the act of August 24, 1963
     9  (P.L.1132, No.484), known as the "Community College Act of 1963"
    10  or Article XIX-A of this act.
    11     "Department" shall mean the Department of Education of the
    12  Commonwealth.
    13     "Educational equipment" shall mean tangible property used by
    14  institutions of higher education in support of instruction. The
    15  term shall not include equipment used in support of sectarian
    16  and denominational instruction or for any other sectarian and
    17  denominational purpose or activity.
    18     "Eligible institution" shall mean an independent institution
    19  of higher education which is approved by the department for
    20  equipment grants pursuant to the provisions of this act. The
    21  term does not include an institution which is determined by the
    22  department to be a community college, a theological seminary or
    23  school of theology or a sectarian and denominational
    24  institution, nor does it include a State-owned or State-related
    25  institution.
    26     "Equipment grant" shall mean an amount determined by dividing
    27  the funds appropriated pursuant to this act, less reasonable
    28  administrative expenses, by the total of all certified full-time
    29  equivalent students from all eligible institutions applying for
    30  grants.
    19890S0252B1414                 - 33 -

     1     "Full-time equivalent students" shall mean the enrollment in
     2  programs at eligible institutions expressed in terms of full-
     3  time students as determined by the Department of Education.
     4     "Independent institution of higher education" shall mean an
     5  institution of higher education which is operated not-for-
     6  profit, located in and incorporated or chartered by the
     7  Commonwealth, entitled to confer degrees as set forth in section
     8  211 of the act of May 5, 1933 (P.L.289, No.105), known as the
     9  "Nonprofit Corporation Law," and entitled to apply to itself the
    10  designation "college" or "university" as provided for by
    11  standards and qualifications prescribed by the State Board of
    12  Education pursuant to the act of May 7, 1937 (P.L.585, No.150),
    13  entitled, as amended, "An act prohibiting the use of the
    14  designation of 'college' by any institution not conforming to
    15  the standards of a college prescribed by the State Board of
    16  Education; and providing for injunctions, and penalties."
    17     "Pennsylvania based" shall mean educational equipment
    18  manufactured or assembled within this Commonwealth, or sold,
    19  leased or otherwise provided to an eligible institution by a
    20  vendor which has a place of business in this Commonwealth.
    21     "State-owned institution" shall mean a member institution of
    22  the State System of Higher Education.
    23     "State-related institutions" shall mean The Pennsylvania
    24  State University, the University of Pittsburgh, Temple
    25  University and Lincoln University and their branch campuses.
    26     Section 2702-D.  Certification of Recipients.--From the
    27  information it receives from colleges and universities the
    28  department shall certify the number of full-time equivalent
    29  students attending each eligible institution during the most
    30  recent year for which data is available.
    19890S0252B1414                 - 34 -

     1     Section 2703-D.  Institutional Equipment Grants.--For the
     2  academic year beginning on or about September 1, 1989, the
     3  department shall allot a one-time equipment grant on behalf of
     4  each full-time equivalent student attending the eligible
     5  institution as certified pursuant to section 2702-D. The
     6  allotment shall be made to each eligible institution from the
     7  funds appropriated to the department pursuant to this article.
     8  Following an initial allocation and allotment, if any funds
     9  appropriated have not been and cannot be allocated to one or
    10  more institutions otherwise eligible for funds, the department
    11  shall reallocate these funds to the remaining eligible
    12  institutions so that all funds appropriated under this article
    13  have been allotted.
    14     Section 2704-D.  Use of Moneys.--The moneys appropriated
    15  shall be used only for, or in connection with, expenses incurred
    16  by the eligible institution to purchase, lease or otherwise
    17  acquire educational equipment which is Pennsylvania based. If
    18  the eligible institution purchases, leases or otherwise acquires
    19  educational equipment which is not Pennsylvania based, it must
    20  file with the department a statement of justification as to why
    21  Pennsylvania-based educational equipment was not obtained.
    22     Section 2705-D.  Forfeiture.--Any eligible institution which
    23  refuses to submit such information for audit as required by this
    24  article or knowingly submits misrepresentations or false
    25  statements with the intention of fraudulently obtaining moneys
    26  from the department shall be denied status as an eligible
    27  institution under the provisions of this article.
    28     Section 2706-D.  Expiration.--This article shall expire on
    29  June 30, 1990.
    30     Section 16.  Notwithstanding any other provisions of the act
    19890S0252B1414                 - 35 -

     1  of March 10, 1949 (P.L.30, No.14), known as the Public School
     2  Code of 1949, the board of school directors of each school
     3  district is authorized to and may reopen its 1989-1990 budget
     4  during the months of July and August 1989 to make any revisions
     5  in the budget and tax levies heretofore adopted to reflect
     6  anticipated increases in subsidies payable to the school
     7  district during its 1989-1990 fiscal year under provisions of
     8  this act.
     9     Section 17.  With the exception of the amendments to sections
    10  315, 316, 317 and 677.1, this act shall be retroactive to July
    11  1, 1989.
    12     Section 18.  This act shall take effect as follows:
    13         (1)  The amendments to sections 315, 316, 317 and 677.1
    14     shall take effect in 60 days.
    15         (2)  The remainder of this act shall take effect
    16     immediately.










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