PRIOR PRINTER'S NOS. 230, 467, 1755,          PRINTER'S NO. 2442
        2301, 2322

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 221 Session of 1991


                     Report of the Committee of Conference

        To the Members of the House of Representatives and Senate:

           We, the undersigned, Committee of Conference on the part of
        the House of Representatives and Senate for the purpose of
        considering House Bill No. 221, entitled:
        "An act providing for the establishment of a summer foreign
        language academy program for secondary school students
        throughout this Commonwealth; and providing for powers and
        duties of the Department of Education,"




        respectfully submit the following bill as our report:

                                           H. WILLIAM DeWEESE

                                           DWIGHT EVANS

                                           SAMUEL E. HAYES, JR.

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

                                           F. JOSEPH LOEPER

                                           JAMES J. RHOADES

                                           J. WILLIAM LINCOLN

                                  (Committee on the part of the Senate.)


                    ***This page intentionally left blank***





















    19910H0221B2442                  - 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 annual budgets
     6     of school districts, transferred programs and classes,
     7     funding programs for exceptional children and payments to
     8     intermediate units; providing for foreign language academies;
     9     further providing for definitions, for payments to school
    10     districts, for small district assistance and for payments on
    11     account of instruction, tuition, adult program travel,
    12     certain vocational education expenses and transportation;
    13     providing for equipment grants; making a repeal; and making
    14     editorial changes.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Section 687 of the act of March 10, 1949 (P.L.30,
    18  No.14), known as the Public School Code of 1949, is amended by
    19  adding subsections to read:
    20     Section 687.  Annual Budget; Additional or Increased
    21  Appropriations; Transfer of Funds.--* * *
    22     (g)  (1)  Notwithstanding any other provisions of this act,
    23  the board of school directors of each school district is
    24  required to, and shall, reopen its 1991-1992 budget during the
    25  month of August 1991 for the purposes of adjusting their budgets
    26  to reflect the following increased allocations for fiscal year
    27  1991-1992 provided by the General Assembly through the act of
    28        , 1991 (P.L.  , No.  ), known as the "General
    29  Appropriation Act of 1991": subsidy payments on account of
    30  instruction; small district assistance payment; payments on
    31  account of transportation of nonpublic school pupils; State
    32  reimbursement for health services; and local savings accruing as
    33  a result of decreases in employer retirement contribution rates.
    34     (2)  In those districts which levy taxes and where the
    35  additional State revenues provided by the General Assembly and

    19910H0221B2442                  - 3 -

     1  the local savings as a result of a decrease in employer
     2  retirement contribution rates exceed the State revenue figures
     3  and local revenues utilized by the school district at the time
     4  of adoption of its original fiscal year 1991-1992 budget, the
     5  district shall use these additional State funds to abate local
     6  property tax or nuisance taxes, or both, which were levied at
     7  the time of original budget adoption within sixty (60) days of
     8  the reopening of the district's budget.
     9     (3)  Those districts which levy taxes and in which the
    10  additional State revenues generated as a result of passage of
    11  the "General Appropriation Act of 1991," when compared to State
    12  revenue figures utilized in their originally adopted budget,
    13  exceed the budgeted figures by an amount insufficient to cost-
    14  effectively prepare and mail adjusted tax notices shall apply to
    15  the Department of Education for a waiver of this tax rebate
    16  provision.
    17     (4)  Under no circumstances shall any of these additional
    18  State revenues be used to increase a district's existing fund
    19  balance or for deposit into any district reserve accounts but
    20  shall be specifically utilized to meet fiscal year 1991-1992
    21  program needs and to reduce local tax levies.
    22     (5)  At such time as school districts mail out adjusted tax
    23  notices resulting from budget reopening actions, such notice
    24  shall include the following statement:
    25         "These decreased school district tax assessments result
    26         from additional revenues allocated to the district as  a
    27         result of passage of the 'General Appropriation Act of
    28         1991' by the Pennsylvania General Assembly."
    29     (6)  The Department of Education shall establish the
    30  administrative procedures necessary to audit school district
    19910H0221B2442                  - 4 -

     1  compliance with the provisions of this section and shall report
     2  its findings to the Education Committee of the Senate and the
     3  Education Committee of the House of Representatives.
     4     (h)  Beginning with the adjusted final fiscal year 1991-1992
     5  budget, and each fiscal year thereafter, on or before September
     6  15, each school district shall furnish to the Education
     7  Committee of the Senate and the Education Committee of the House
     8  of Representatives a copy of the school district's final adopted
     9  annual budget to include the amount of district revenues being
    10  held in excess of its total budgeted expenditures. Such
    11  documentation shall include an explanation of the district's
    12  need to maintain the revenues in this fund balance.
    13     Section 2.  Section 1113 of the act, added February 4, 1982
    14  (P.L.1, No.1), is amended to read:
    15     Section 1113.  Transferred Programs and Classes.--(a)  When a
    16  program or class is transferred as a unit from one or more
    17  school entities to another school entity or entities,
    18  professional employes who were assigned to the class or program
    19  immediately prior to the transfer and are classified as teachers
    20  as defined in section 1141(1) and are suspended as a result of
    21  the transfer and who are properly certificated shall be offered
    22  employment in the program or class by the receiving entity or
    23  entities when services of a professional employe are needed to
    24  sustain the program or class transferred, as long as there is no
    25  suspended professional employe in the receiving entity who is
    26  properly certificated to fill the position in the transferred
    27  class or program.
    28     (b)  Transferred professional employes shall be credited by
    29  the receiving entity only for their sick leave accumulated in
    30  the sending entity and also for their years of service in the
    19910H0221B2442                  - 5 -

     1  sending entity, the latter for purposes of sabbatical leave
     2  eligibility and placement in the salary schedule: Provided,
     3  however, That such employes shall not utilize the sabbatical
     4  leave until they have taught in the receiving entity for a
     5  period of three (3) years. Such employes shall transfer their
     6  accrued seniority in the area of certification required for the
     7  transferred program or class only.
     8     (b.1)  Professional employes who are classified as teachers
     9  and who are not transferred with the classes to which they are
    10  assigned or who have received a formal notice of suspension
    11  shall form a pool of employes within the school entity. No new
    12  professional employe who is classified as a teacher shall be
    13  employed by a school entity assuming program responsibility for
    14  transferred students while there is:
    15     (1)  a properly certificated professional employe who is
    16  classified as a teacher suspended in the receiving entity; or
    17     (2)  if no person is qualified under (1), a properly
    18  certificated member of the school entity pool who is willing to
    19  accept employment with the school entity assuming program
    20  responsibility for transferred students. Members of the pool
    21  shall have the right to refuse employment offers from such
    22  school entity and remain in the pool. Refusal to accept work
    23  under this subsection shall not be grounds for denial of
    24  unemployment compensation under sections 401 and 402 of the act
    25  of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known
    26  as the "Unemployment Compensation Law."
    27     (c)  Nothing contained in this section shall be construed to
    28  supersede or preempt any provision of a collective bargaining
    29  agreement in effect on February 4, 1982, and negotiated by a
    30  school entity and an exclusive representative of the employes in
    19910H0221B2442                  - 6 -

     1  accordance with the act of July 23, 1970 (P.L.563, No.195),
     2  known as the "Public Employe Relations Act."
     3     (d)  (1)  As used in this section, the term "school entity"
     4  or "school entities" shall mean an intermediate unit and its
     5  participating school districts or an area vocational-technical
     6  school and its sending school districts.
     7     (2)  As used in this section, the term "unit" shall mean a
     8  program or class whose membership falls within the minimum and
     9  maximum class size as defined in Department of Education
    10  standards.
    11     Section 3.  Section 1373.1 of the act is repealed.
    12     Section 4.  Section 1376(c) of the act, amended July 8, 1989
    13  (P.L.253, No.43), is amended to read:
    14     Section 1376.  Cost of Tuition and Maintenance of Certain
    15  Exceptional Children in Approved Institutions.--* * *
    16     (c)  Each approved private school, prior to the start of the
    17  school year, shall submit to the department such information as
    18  the department may require in order to establish an estimate of
    19  reimbursable costs. Based upon this information, any other data
    20  deemed necessary by the department and in accordance with
    21  department standards, the department shall develop for each
    22  approved private school an estimate of reimbursable costs. Based
    23  upon such estimate, the department shall provide each approved
    24  private school with [quarterly] monthly payments in advance of
    25  department audit. The department may withhold a portion of such
    26  payments not exceeding five percent (5%) of such payment,
    27  pending final audit. In no event shall either the advance
    28  payments or final reimbursement made by the department following
    29  audit exceed the appropriation available for approved private
    30  schools.
    19910H0221B2442                  - 7 -

     1     * * *
     2     Section 5.  The act is amended by adding a section to read:
     3     Section 1522.  Foreign Language Academies.--(a)  The
     4  Department of Education shall establish a summer foreign
     5  language academy grant program utilizing Federal education funds
     6  and matching grants for students in this Commonwealth. To the
     7  greatest extent possible, the department shall establish
     8  guidelines for the programs which involve the universities and
     9  colleges, local school districts and intermediate units. Those
    10  students who are to participate in the program shall be selected
    11  by the local school districts.
    12     (b)  At least one summer foreign language academy shall be in
    13  operation by the summer of 1993.
    14     (c)  The Department of Education shall prepare an annual
    15  report of the summer foreign language academies program which
    16  shall be submitted to the Governor, the Education Committee of
    17  the Senate and the Education Committee of the House of
    18  Representatives.
    19     Section 6.  Section 2501(9.2), (18) and (19) of the act,
    20  amended December 20, 1983 (P.L.267, No.73), July 1, 1985
    21  (P.L.103, No.31) and July 8, 1989 (P.L.253, No.43), are amended
    22  to read:
    23     Section 2501.  Definitions.--For the purposes of this article
    24  the following terms shall have the following meanings:
    25     * * *
    26     (9.2)  "Equalized Millage." [A] For the year prior to the
    27  year for which reimbursement is being computed, a school
    28  district's tax effort to be used for reimbursement under
    29  subsections (d) and (e) of section 2502 and section 2502.11,
    30  shall be the amount of local school taxes collected [during the
    19910H0221B2442                  - 8 -

     1  year for which reimbursement is being computed, divided by the
     2  most recent real property valuation of the school district]
     3  divided by the real property valuation of the school district
     4  for the year prior to the year for which reimbursement is being
     5  computed.
     6     * * *
     7     (18)  "Equalized Subsidy for Basic Education." For the school
     8  year 1982-1983 and each school year thereafter, each school
     9  district shall be paid by the Commonwealth an equalized subsidy
    10  for basic education, which shall consist of any or all of the
    11  following, as applicable:
    12     (i)  Payments on account of instruction, as provided for in
    13  subsections (d) and (e) of section 2502.
    14     (ii)  An economic supplement, as provided for in section
    15  2502.11.
    16     (iii)  Assistance to small districts as provided for in
    17  section 2502.13.
    18     (iv)  A low expenditure, low wealth supplement as provided
    19  for in section 2502.17.
    20     (v)  A low expenditure poverty supplement as provided for in
    21  section 2502.18.
    22     (19)  "Factor for Educational Expense." For the school years
    23  1982-1983 and 1983-1984, the factor for educational expense used
    24  to compute school district entitlements to payments on account
    25  of instruction, as provided for in subsection (d) of section
    26  2502, shall be one thousand six hundred fifty-six dollars
    27  ($1,656) unless later changed by statute. For the school year
    28  1983-1984, the Factor for Educational Expense shall be one
    29  thousand seven hundred twenty-five dollars ($1,725), unless
    30  later changed by statute, for those school districts
    19910H0221B2442                  - 9 -

     1  participating, during the 1984-1985 school year, in a Statewide
     2  program for testing and remediation which is designed to
     3  identify and provide remediation services to individual students
     4  pursuant to section 1511.1. For the 1984-1985 school year,
     5  notwithstanding any other provisions of this act to the
     6  contrary, the Factor for Educational Expense used to compute all
     7  school districts' entitlements to payments on account of
     8  instruction, as provided for in subsection (d) of section 2502,
     9  shall be one thousand eight hundred seventy-five dollars
    10  ($1,875). For the 1985-1986 school year, the Factor for
    11  Educational Expense used to compute all school districts'
    12  entitlements to payments on account of instruction, as provided
    13  for in subsection (d) of section 2502, shall be one thousand
    14  nine hundred seventy dollars ($1,970). For the 1986-1987 school
    15  year, the Factor for Educational Expense used to compute all
    16  school districts' entitlements to payments on account of
    17  instruction, as provided for in subsection (d) of section 2502,
    18  shall be two thousand one hundred twenty-five dollars ($2,125).
    19  For the school year 1987-1988, the Factor for Educational
    20  Expense used to compute all school districts' entitlements to
    21  payments on account of instruction, as provided for in
    22  subsection (d) of section 2502, shall be two thousand two
    23  hundred thirty dollars ($2,230). For the school year 1988-1989
    24  [and each school year thereafter], the Factor for Educational
    25  Expense used to compute all school districts' entitlements to
    26  payments on account of instruction, as provided for in
    27  subsection (d) of section 2502, shall be two thousand three
    28  hundred thirty dollars ($2,330). For the school year 1989-1990,
    29  the Factor for Educational Expense used to compute all school
    30  districts' entitlements to payments on account of instruction,
    19910H0221B2442                 - 10 -

     1  as provided for in subsection (d) of section 2502, shall be two
     2  thousand three hundred eighty dollars ($2380), as provided for
     3  in section 212 of the act of July 1, 1990 (P.L.   , No.7A),
     4  known as the "General Appropriation Act of 1990." For the school
     5  year 1990-1991, the Factor for Educational Expense used to
     6  compute all school districts' entitlements to payments on
     7  account of instruction, as provided for in subsection (d) of
     8  section 2502, shall be two thousand five hundred fifty dollars
     9  ($2,550). For the school year 1991-1992 and each school year
    10  thereafter, the Factor for Educational Expense used to compute
    11  all school districts' entitlements to payments on account of
    12  instruction, as provided for in subsection (d) of section 2502,
    13  shall be two thousand six hundred fifty-five dollars ($2,655).
    14     Section 7.  Section 2502(h) of the act, added December 17,
    15  1982 (P.L.1378, No.316), is amended to read:
    16     Section 2502.  Payments on Account of Instruction.--* * *
    17     (h)  Students enrolled in a private residential
    18  rehabilitative institution as defined in section 914.1-A or a
    19  day treatment program of such an institution or a day treatment
    20  program approved by the Department of Public Welfare as provided
    21  for in section 1310(b) or a State-owned school other than a
    22  post-secondary school shall be considered in the weighted
    23  average daily membership of the school district of residence for
    24  the purpose of making payments under this section.
    25     Section 8.  Section 2502.11(b) and (d) of the act, amended or
    26  added October 20, 1988 (P.L.827, No.110) and July 8, 1989
    27  (P.L.253, No.43), are amended to read:
    28     Section 2502.11.  Economic Supplement.--* * *
    29     (b)  For the school years 1982-1983 through 1986-1987, each
    30  qualifying school district shall be paid on account of children
    19910H0221B2442                 - 11 -

     1  in low-income families an amount in accordance with the
     2  following table:
     3         Percentage of Low-Income Pupils            Grant Per
     4           In Average Daily Membership           Low-Income Pupil
     5                     10 - 19.9                       $100
     6                     20 - 39.9                       $300
     7                     40 or over                      $500
     8     For the school year 1987-1988, each qualifying school
     9  district shall be paid on account of children in low-income
    10  families an amount in accordance with the following table:
    11         Percentage of Low-Income Pupils            Grant Per
    12           In Average Daily Membership           Low-Income Pupil
    13                      8 - 14.9                       $128
    14                     15 - 29.9                       $357
    15                     30 or over                      $587
    16     For the school [year 1988-1989 and each school year
    17  thereafter] years 1988-1989 and 1989-1990, each qualifying
    18  school district shall be paid on account of children in low-
    19  income families an amount in accordance with the following
    20  table:
    21     Percentage of Low-Income Pupils        Grant Per
    22       In Average Daily Membership       Low-Income Pupil
    23             8 - 14.9            6% of the factor for educational
    24                                 expense used to make payments on
    25                                 account of instruction, as
    26                                 provided for in section 2501(19).
    27             15 - 29.9           16% of the factor for educational
    28                                 expense used to make payments on
    29                                 account of instruction, as
    30                                 provided for in section 2501(19).
    19910H0221B2442                 - 12 -

     1             30 or over          27% of the factor for educational
     2                                 expense used to make payments on
     3                                 account of instruction, as
     4                                 provided for in section 2501(19).
     5     For the school year 1990-1991 and each school year
     6  thereafter, each qualifying school district shall be paid on
     7  account of children in low-income families an amount in
     8  accordance with the following table:
     9     Percentage of Low-Income Pupils        Grant Per
    10       In Average Daily Membership       Low-Income Pupil
    11             8 - 14.9            6% of the factor for educational
    12                                 expense used to make payments on
    13                                 account of instruction, as
    14                                 provided for in section 2501(19).
    15             15 - 19.9           16% of the factor for educational
    16                                 expense used to make payments on
    17                                 account of instruction, as
    18                                 provided for in section 2501(19).
    19             20 - 29.9           23% of the factor for educational
    20                                 expense used to make payments on
    21                                 account of instruction, as
    22                                 provided for in section 2501(19).
    23             30 or over          27% of the factor for educational
    24                                 expense used to make payments on
    25                                 account of instruction, as
    26                                 provided for in section 2501(19).
    27  For the 1982-1983 school year and each school year thereafter,
    28  low-income pupils are defined for purposes of this section as
    29  children aged five (5) to seventeen (17) years, inclusive, in
    30  families receiving a grant in excess of two thousand dollars
    19910H0221B2442                 - 13 -

     1  ($2,000) from the Commonwealth on account of dependent children
     2  under Title IV of the Federal Social Security Act.
     3     * * *
     4     (d)  For the school year 1988-1989 and each school year
     5  thereafter, any district which levies and collects local taxes
     6  for school purposes equal to or above the median equalized
     7  millage, as defined in section 2501(9.3), in the year for which
     8  reimbursement is determined or any school district the majority
     9  of whose population is drawn from a city of the first through
    10  third class which levies and collects local taxes for municipal
    11  purposes equal to or above the municipal median equalized
    12  millage, as defined in section 2501(9.5), for the most recent
    13  municipal fiscal year for which data is available shall qualify
    14  for and receive a payment based upon local tax effort and
    15  population per square mile in accordance with the following
    16  table, except for qualifying districts which include a central
    17  city of a Standard Metropolitan Statistical Area and have a
    18  district population of less than four thousand (4,000) persons
    19  per square mile, which districts shall receive three percent
    20  (3%) of their instructional expenditures:
    21         Population Per Square Mile       Payment as Percent of
    22         of the Qualifying District      Instructional Expenditure
    23             5,950 and over                          5
    24             4,000 - 5,949                           3
    25             less than 4,000                         1
    26  Qualifying districts having a general population of five
    27  thousand nine hundred fifty (5,950) or more persons per square
    28  mile and at least thirty-five thousand (35,000) WADM's shall be
    29  paid nineteen percent (19%) of their instructional expenditures.
    30  A central city of a Standard Metropolitan Statistical Area which
    19910H0221B2442                 - 14 -

     1  has an equalized millage as defined in clause (9.2) of section
     2  2501 to be greater than the median equalized millage by 10.29
     3  and has an estimated 1990-1991 Weighted Average Daily Membership
     4  (WADM) provided by the Department of Education in June 1991 that
     5  is less than the actual 1989-1990 Weighted Average Daily
     6  Membership by two hundred (200) shall receive an additional two
     7  percent (2%) of their 1990-1991 Actual Instructional
     8  Expenditure.
     9     Section 9.  Section 2502.13 of the act, amended July 8, 1989
    10  (P.L.253, No.43), is amended to read:
    11     Section 2502.13.  Small District Assistance.--For the 1984-
    12  1985 and 1985-1986 school years, the Commonwealth shall pay to
    13  each school district which has an average daily membership of
    14  one thousand five hundred (1,500) or less and has a market
    15  value/income aid ratio of five thousand ten-thousandths (0.5000)
    16  or greater, an amount equal to fifty dollars ($50) multiplied by
    17  that district's average daily membership. For the 1985-1986
    18  school year, no school district shall receive less on account of
    19  this section than it did for the 1984-1985 school year. For the
    20  school year 1986-1987, the Commonwealth shall pay to each school
    21  district which has an average daily membership of one thousand
    22  five hundred (1,500) or less and has a market value/income aid
    23  ratio of five thousand ten-thousandths (0.5000) or greater, or
    24  received payments under this section for the 1985-1986 school
    25  year, an amount equal to seventy-five dollars ($75) multiplied
    26  by that district's average daily membership. For the school year
    27  1987-1988, the Commonwealth shall pay to each school district
    28  which has an average daily membership of one thousand five
    29  hundred (1,500) or less and a market value/income aid ratio of
    30  five thousand ten-thousandths (0.5000) or greater, or received
    19910H0221B2442                 - 15 -

     1  payments under this section for the 1986-1987 school year, an
     2  amount equal to eighty-five dollars ($85) multiplied by that
     3  district's average daily membership. For the school year 1988-
     4  1989 and each school year thereafter, the Commonwealth shall pay
     5  to each school district which has an average daily membership of
     6  one thousand five hundred (1,500) or less and a market
     7  value/income aid ratio of five thousand ten thousandths (0.5000)
     8  or greater, or received payments under this section for the
     9  1987-1988 or 1988-1989 school year, an amount equal to one
    10  hundred five dollars ($105). For the school year 1989-1990, the
    11  Commonwealth shall pay to each school district which has an
    12  average daily membership of one thousand five hundred (1,500) or
    13  less and a market value/income aid ratio of five thousand ten-
    14  thousandths (0.5000) or greater, or received payments under this
    15  section for the 1987-1988 school year, an amount equal to one
    16  hundred fifteen dollars ($115) multiplied by the district's
    17  average daily membership as provided for in section 212 of the
    18  act of July 1, 1990 (P.L.   , No.7A) known as the "General
    19  Appropriation Act of 1990." For the school year 1990-1991 and
    20  each school year thereafter, the Commonwealth shall pay to each
    21  school district which has an average daily membership of one
    22  thousand five hundred (1,500) or less and a market value/income
    23  aid ratio of five thousand ten thousandths (0.5000) or greater,
    24  or received payments under this section for the prior school
    25  year, an amount equal to one hundred seventy dollars ($170)
    26  multiplied by that district's average daily membership. Each
    27  school district with a population per square mile of less than
    28  ninety (90), which otherwise meets the average daily membership
    29  and market value/income aid ratio requirements of this section,
    30  or received payments under this section for the prior school
    19910H0221B2442                 - 16 -

     1  year, shall instead receive an amount equal to one hundred
     2  ninety dollars ($190) multiplied by that district's average
     3  daily membership. For the 1987-1988 school year and each school
     4  year thereafter, no school district shall receive less on
     5  account of this section than it did for the prior school year.
     6     Section 10.  The act is amended by adding sections to read:
     7     Section 2502.17.  Low Expenditure, Low Wealth Supplement.--
     8  For the 1990-1991 school year and each school year thereafter,
     9  the Commonwealth shall pay to each school district which has a
    10  market value/income aid ratio of six thousand ten-thousandths
    11  (0.6000), or greater, and has an actual instruction expenditure
    12  per weighted average daily membership for the school year prior
    13  to the reimbursable year, which is less than the Statewide
    14  median actual instruction expenditure per weighted average daily
    15  membership for that year, an amount equal to one and three-
    16  tenths percent (1.3%) of the school district's actual
    17  instruction expenditure for the reimbursable year: Provided,
    18  That no school district shall receive a dollar amount, which,
    19  when combined with its actual instruction expenditure for the
    20  year prior to the reimbursable year, would result in the
    21  district's actual instruction expenditure per weighted average
    22  daily membership exceeding the Statewide median actual
    23  instruction expenditure per weighted average daily membership
    24  for the year prior to reimbursement.
    25     Section 2502.18.  Low Expenditure Poverty Supplement.--For
    26  the 1990-1991 school year and each school year thereafter, the
    27  Commonwealth shall pay to each school district, which has an
    28  actual instruction expenditure per weighted average daily
    29  membership for the school year prior to the reimbursable year,
    30  which is less than three thousand four hundred forty-five
    19910H0221B2442                 - 17 -

     1  dollars ($3445), and has ten percent (10%) or more of its pupils
     2  in average daily membership as children in low-income families,
     3  an amount equal to one-half percent (.5%) of their actual
     4  instruction expenditure.
     5     Section 11.  Section 2503 of the act is amended by adding a
     6  subsection to read:
     7     Section 2503.  Payments on Account of Tuition.--* * *
     8     (d)  Each school district, regardless of classification,
     9  whose resident pupils attend a State-owned school, other than a
    10  post-secondary school, shall pay the greater of either twenty
    11  percent (20%) of the cost per pupil as determined by the
    12  Department of Education or its "tuition charge per elementary
    13  pupil" or its "tuition charge per high school pupil," as the
    14  case may be. The Secretary of Education shall withhold from any
    15  moneys due to such districts out of any State appropriation for
    16  assistance as reimbursement of school districts, the amounts due
    17  by such districts to such State-owned schools. Amounts so
    18  withheld shall be specifically appropriated to the Department of
    19  Education.
    20     Section 12.  Section 2505.1 of the act is amended by adding a
    21  subsection to read:
    22     Section 2505.1.  State Reimbursement for Health Services.--*
    23  * *
    24     (b.1)  Every school district which renders health services to
    25  children shall be reimbursed by the Commonwealth on account of
    26  health services which conform to standards approved by the
    27  Secretary of Health. Reimbursement shall be paid by the
    28  Secretary of Health. For the school year 1990-1991, the amount
    29  of this reimbursement for this subsection shall be the sum of
    30  five dollars and ninety cents ($5.90) multiplied by the average
    19910H0221B2442                 - 18 -

     1  daily membership of each school district. For the school year
     2  1991-1992 and each school year thereafter, the amount of this
     3  reimbursement for this subsection shall be the sum of nine
     4  dollars and seventy cents ($9.70) multiplied by the average
     5  daily membership of each school district.
     6     * * *
     7     Section 13.  Section 2506.1 of the act, added December 17,
     8  1982 (P.L.1378, No.316), is amended to read:
     9     Section 2506.1.  Payments on Account of Approved Adult
    10  Program Travel.--(a)  Every school district and area vocational-
    11  technical school shall be paid by the Commonwealth for every
    12  school year, on account of approved adult vocational program
    13  traveling expenses in the discharge of teaching and supervisory
    14  responsibilities of teachers, coordinators, supervisors and
    15  directors in vocational education, eighty per centum (80%) of
    16  the sum expended by the school district or area vocational-
    17  technical school for such approved travel.
    18     (b)  For the 1991-1992 school year and each school year
    19  thereafter, the Commonwealth shall pay the amount required by
    20  this section to the school district or area vocational-technical
    21  school which provides the program upon which such reimbursement
    22  is based.
    23     Section 14.  Section 2507 of the act, amended July 10, 1986
    24  (P.L.1270, No.117), is amended to read:
    25     Section 2507.  Payments on Account of Approved Vocational
    26  Extension Classes and Pre-employment Training.--Every school
    27  district and every vocational school district and area
    28  vocational-technical school, regardless of classification, shall
    29  be paid by the Commonwealth for every school year, on account of
    30  approved vocational extension classes and pre-employment
    19910H0221B2442                 - 19 -

     1  training, eighty per cent (80%) of the sum which was expended by
     2  the district or area vocational-technical school for the
     3  compensation of vocational extension and pre-employment training
     4  teachers and supervisors. For the purpose of computing
     5  reimbursement, the maximum compensation shall be four dollars
     6  ($4.00) per hour for the 1985-1986 through the 1989-1990 school
     7  years, and eight dollars and sixty cents ($8.60) per hour for
     8  the 1990-1991 school year and each school year thereafter and
     9  the amount expended for supervisory salaries shall not exceed
    10  twenty per cent (20%) of the sum expended for teachers'
    11  salaries: Provided, That in special cases when travel time or
    12  unusual preparation of instructional materials or other factors
    13  result in an inadequate compensation, the Department of
    14  Education may approve additional reimbursable employment time
    15  for such additional services upon the submission of adequate
    16  substantiative evidence from the responsible superintendent of
    17  schools. For the 1985-1986 school year and each school year
    18  thereafter, the Commonwealth shall pay the amount required by
    19  this section to the school district or area vocational-technical
    20  school which provided the approved vocational extension classes
    21  and pre-employment training for which reimbursement is made.
    22     Section 15.  Section 2509 of the act, amended December 29,
    23  1972 (P.L.1732, No.373), is amended to read:
    24     Section 2509.  Payments on Account of Courses for Exceptional
    25  Children.--[Annually, before] (a)  Before the first day of July,
    26  of every year up to and including 1990, every school district or
    27  joint board of school directors planning to conduct classes or
    28  schools for [the] exceptional children shall submit, for prior
    29  review and approval to establish the amount on which
    30  reimbursement will be paid by the Department of Education, an
    19910H0221B2442                 - 20 -

     1  estimate of the cost of classes or schools for exceptional
     2  children to be operated by the district or joint board during
     3  the ensuing school year, and for transportation of pupils to and
     4  from classes and schools for exceptional children conducted by
     5  the district or joint board of school directors. [Every school
     6  district, regardless of classification, shall be paid by the
     7  Commonwealth for the school term 1953-1954, the sum of twenty
     8  dollars ($20) per pupil in average daily membership in a course
     9  or courses for mentally handicapped children, and the sum of
    10  thirty dollars ($30) per pupil in average daily membership in a
    11  course or courses for physically handicapped children, approved
    12  by the Secretary of Education. Beginning with] From the school
    13  term of 1954-1955 [and for every school term thereafter] up to
    14  and including the school term of 1990-1991, every school
    15  district, regardless of classification, shall be paid by the
    16  Commonwealth an amount to be determined by multiplying the
    17  average daily membership in a course or courses for exceptional
    18  children, (1) at the elementary level, by an amount determined
    19  by subtracting the "instruction cost per elementary pupil," as
    20  defined in section 2561 of this act, from the "instruction cost
    21  per special class pupil," as hereinafter defined, for the
    22  preceding school term, or from the instruction cost per special
    23  class elementary pupil as approved for reimbursement by the
    24  Department of Education in the budget for classes or schools for
    25  exceptional children for the school year in which the class is
    26  operated, whichever is the lesser, (2) at the secondary level,
    27  by an amount determined by subtracting the "instruction cost per
    28  high school pupil," as defined in section 2561 of this act, from
    29  the "instruction cost per special class pupil," as hereinafter
    30  defined, for the preceding school term, or from the instruction
    19910H0221B2442                 - 21 -

     1  cost per special classes secondary pupil as approved for
     2  reimbursement by the Department of Education in the budget for
     3  classes or school for exceptional children for the school year
     4  in which the class is operated, whichever is the lesser.
     5     (b)  To find the "instruction cost per special class pupil,"
     6  add (1) salaries of directors and supervisors of special
     7  education, public school psychologists, principals of special
     8  schools and assistants, teachers of approved special classes for
     9  exceptional children, clerks and assistants employed in the
    10  district's program for special education, (2) the district's
    11  contribution to the retirement fund on behalf of directors and
    12  supervisors of special education, public school psychologists,
    13  principals of special schools and assistants, teachers of
    14  approved special classes for exceptional children, clerks and
    15  assistants employed in the district's program for special
    16  education, (3) the cost of textbooks and supplies of the second
    17  class used in the district's special education classes or
    18  schools, (4) the cost of telephonic system equipment which
    19  enables handicapped children to remain in their homes and still
    20  participate in classroom activities. Divide the sum of (1), (2),
    21  (3), and (4) on that part thereof which is approved by the
    22  Department of Education for reimbursement by the total number of
    23  pupils, including those pupils who have available for use
    24  telephonic system equipment whereby they may remain at home and
    25  still participate in classroom activities, in average daily
    26  membership in the district's approved special classes for
    27  exceptional children. The quotient so obtained shall be the
    28  "instruction cost per special class pupil."
    29     (c)  The average daily membership of speech correction
    30  classes for every school term up to and including the 1990-1991
    19910H0221B2442                 - 22 -

     1  school term shall be calculated by multiplying (1) the average
     2  number of pupils in speech correction classes per week by (2)
     3  the number of periods per week that speech correction is
     4  provided for the individual pupil by (3) the number of minutes
     5  per period in speech correction class. Divide the product of
     6  (1), (2) and (3) by the total number of minutes spent in all
     7  classes weekly by the average pupil. The quotient thus obtained
     8  will be the "average daily membership for pupils in speech
     9  correction classes."
    10     (d)  [For] From the school term of 1972-1973 [and for the
    11  school term of each school year thereafter] up to and including
    12  the school term of 1988-1989, such payments shall consist of an
    13  amount payable in two equal installments during the year of
    14  operation, with adjustments to be made during the next
    15  succeeding school year. The amount to be paid in equal
    16  installments on or about the first day of August and on or about
    17  the first day of January of the operating year shall be the sum
    18  of the products determined by multiplying the anticipated
    19  equivalent full-time average daily membership in courses for
    20  exceptional children as reported on the approved budget for the
    21  operating year (1) at the elementary level times an amount
    22  determined by subtracting the estimated instruction cost per
    23  elementary pupil, as defined in section 2561 of this act, for
    24  the preceding school term from the budgeted instruction cost per
    25  special class elementary pupil as approved by the Department of
    26  Education for the operating year and (2) at the secondary level
    27  times an amount determined by subtracting the estimated
    28  instruction cost per high school pupil, as defined in section
    29  2561 of this act, for the preceding school term from the
    30  budgeted instruction cost per special class secondary pupil as
    19910H0221B2442                 - 23 -

     1  approved by the Department of Education for the operating year.
     2     (e)  [The] For every operating year up to and including the
     3  1987-1988 school year, the adjustment to be made during the
     4  school year immediately succeeding the operating year shall be
     5  determined by subtracting the payments made during the preceding
     6  year from the actual amount of reimbursement which would have
     7  been payable for said year if calculated as during the year
     8  1954-1955 through 1971-1972. When determined, the adjusted
     9  amount, if positive, shall be paid promptly to the district and,
    10  if negative, shall be withheld from any moneys due to such
    11  district out of any State appropriation.
    12     (f)  During the 1991-1992 school year, the Commonwealth shall
    13  pay to each school district the estimated amount due on account
    14  of approved special education programs operated by each school
    15  district during the 1990-1991 school term. Such payments shall
    16  consist of an amount payable in six (6) installments as follows:
    17  in July of 1991, fifteen percent (15%) of the estimated amount
    18  due; in September of 1991, fifteen percent (15%) of the
    19  estimated amount due; in November of 1991, fifteen percent (15%)
    20  of the estimated amount due; in January of 1992, fifteen percent
    21  (15%) of the estimated amount due; in March of 1992, fifteen
    22  percent (15%) of the estimated amount due; and in June of 1992,
    23  the remainder due, determined by adding the payments made during
    24  July, September, November, January and March and subtracting the
    25  result from the actual reimbursable amount earned for the 1990-
    26  1991 school term.
    27     Section 16.  Section 2509.1 of the act, amended July 8, 1989
    28  (P.L.253, No.43), is amended to read:
    29     Section 2509.1.  [Payment on Account of Transportation,
    30  Classes and Schools for Exceptional and Institutionalized
    19910H0221B2442                 - 24 -

     1  Children.--] Payments to Intermediate Units.--(a)  Annually,
     2  before the first day of July, every intermediate unit shall
     3  submit, for prior review and approval by the Department of
     4  Education, an estimate of the cost [of operating and
     5  administering classes or schools for exceptional and
     6  institutionalized children, including the cost of such fiscal
     7  controls as auditing and necessary treasurer's and secretary's
     8  bonds to be operated by the intermediate unit during the ensuing
     9  school year, and] for transportation of pupils to and from
    10  classes and schools for exceptional children, and of eligible
    11  young children to and from early intervention programs, whether
    12  or not such classes, schools or programs are conducted by the
    13  intermediate unit. On or before the first day of [August]
    14  September, the Commonwealth shall pay to the intermediate unit a
    15  sum equal to one-half of the approved [estimated] annual cost of
    16  [operation and administration of classes and schools for
    17  exceptional and institutionalized children and] such
    18  transportation [for exceptional children] in the prior year and,
    19  on or before the first day of [January] February, shall pay [an
    20  equal sum, or a lesser sum as may be shown to be necessary by an
    21  adjusted budget based upon expenditures during the first half of
    22  the school term. At the end of each school year all unexpended
    23  funds shall be credited to Commonwealth. Payments due for the
    24  succeeding school year on account of the operation of such
    25  classes or upon direction of the Secretary of Education shall be
    26  returned to the Commonwealth. All such funds returned are hereby
    27  specifically appropriated to the Department of Education for
    28  support of schools and classes, and transportation for
    29  exceptional children. For] a sum equal to one-quarter of the
    30  approved estimated annual cost of such transportation for the
    19910H0221B2442                 - 25 -

     1  current school year, and on or before June 30, the Commonwealth
     2  shall pay the remaining quarter adjusted to reflect actual
     3  approved cost.
     4     (b)  On or before the first day of July 1991, every
     5  intermediate unit shall submit, for prior review and approval by
     6  the Department of Education, an estimate of the cost of
     7  operating and administering classes or schools for
     8  institutionalized children operated by the intermediate unit
     9  during the 1990-1991 school year. During the 1991-1992 school
    10  year, the Commonwealth shall pay each intermediate unit the
    11  approved amount.
    12     (c)  For the 1991-1992 school year, five percent (5%) of the
    13  State special education appropriation shall be paid to the
    14  intermediate units on account of special education services. Of
    15  this five percent (5%), thirty-five percent (35%) shall be
    16  distributed equally among all twenty-nine (29) intermediate
    17  units. The remaining sixty-five percent (65%) shall be
    18  distributed to each intermediate unit in proportion to the
    19  number of average daily membership of the component school
    20  districts of each intermediate unit as compared to the Statewide
    21  total average daily membership.
    22     (d)  For the 1991-1992 school year, each intermediate unit
    23  which is coterminous to a school district of the first class or
    24  first class A shall be paid fifty percent (50%) of the amount
    25  received by the intermediate unit for the cost of operating and
    26  administering classes or schools for exceptional children, as
    27  approved by the Department of Education for the 1990-1991 school
    28  year. For the 1991-1992 school year, each intermediate unit not
    29  coterminous with a school district which operates all the
    30  special education programs for handicapped children for its
    19910H0221B2442                 - 26 -

     1  constituent school districts shall be paid ten percent (10%) of
     2  the amount received by the intermediate unit for the cost of
     3  operating and administering classes or schools for handicapped
     4  children, as approved by the Department of Education for the
     5  1990-1991 school year.
     6     (e)  For the 1991-1992 school year and for each school year
     7  thereafter, payments to intermediate units under this section
     8  shall consist of an amount payable in three (3) installments
     9  during the school year as follows: in August, fifty percent
    10  (50%) of the payments under subsections (b) and (c) or (d); in
    11  November, forty-five percent (45%) of the payments under
    12  subsections (b), (c) or (d); and on June 1, the balance of the
    13  payments due.
    14     (f)  For each school year up to and including 1990-1991, for
    15  each child enrolled in any special class or school for
    16  exceptional children operated by an intermediate unit, the
    17  school district in which the child is resident shall pay to the
    18  Commonwealth a sum equal to the "tuition charge per elementary
    19  pupil" or the "tuition charge per high school pupil," as
    20  determined for the schools operated by the district or by a
    21  joint board of which the district is a member, for the same year
    22  in which the special class or school is operated, as provided
    23  for in section two thousand five hundred sixty-one of the act to
    24  which this is an amendment. In the event that any school
    25  district has not established such "tuition charge per elementary
    26  pupil" or "tuition charge per high school pupil," the Secretary
    27  of Education shall fix a reasonable charge for such district for
    28  the year in question. Except that for the 1990-1991 school year,
    29  the school district payment to the Commonwealth under this
    30  subsection, for each child enrolled in other than intermediate
    19910H0221B2442                 - 27 -

     1  unit classes or schools for institutionalized children, shall be
     2  limited to twenty-five percent (25%) of the applicable tuition
     3  charges in the case of all intermediate units. In addition, the
     4  district shall pay on account of transportation by the
     5  intermediate unit of pupils to and from classes and schools for
     6  exceptional children, whether or not conducted by the
     7  intermediate unit, an amount to be determined by subtracting
     8  from the cost of transportation per pupil the reimbursement due
     9  the district on account of such transportation [in]. In order to
    10  facilitate such payments by the several school districts[. The],
    11  the Secretary of Education shall withhold from any moneys due to
    12  such district out of any state appropriation, except from
    13  reimbursements due on account of rentals as provided in section
    14  two thousand five hundred eleven point one of the act to which
    15  this is an amendment, the amounts due by such school districts
    16  to the Commonwealth. All amounts so withheld are hereby
    17  specifically appropriated to the Department of Education for the
    18  support of public schools. [The cost of operating and
    19  administering classes and schools for institutionalized
    20  children, including the cost of necessary fiscal controls, shall
    21  be paid by the Commonwealth.]
    22     Section 17.  Section 2509.3 of the act, amended July 1, 1985
    23  (P.L.103, No.31), is amended to read:
    24     Section 2509.3.  Payments on Account of Transportation of
    25  Nonpublic School Pupils.--Each school district, regardless of
    26  classification, shall be paid by the Commonwealth the sum of
    27  thirty-five dollars ($35) for each nonpublic school pupil
    28  transported in the school year 1978-1979 through the school year
    29  1983-1984 [and], for the school year 1984-1985 [and each school
    30  year thereafter,] through the school year 1990-1991 each school
    19910H0221B2442                 - 28 -

     1  district shall be paid the sum of seventy dollars ($70) for each
     2  nonpublic school pupil transported, and for the school year
     3  1991-1992, each school district shall be paid the sum of one
     4  hundred twenty-four dollars ($124) for each nonpublic school
     5  pupil transported and for the school year 1992-1993 and each
     6  school year thereafter, each school district shall be paid the
     7  sum of one hundred fifty-nine dollars ($159) for each nonpublic
     8  school pupil transported.
     9     Section 18.  The act is amended by adding sections to read:
    10     Section 2509.5.  Special Education Payments to School
    11  Districts.--(a)  This section applies to Commonwealth payments
    12  to school districts for the support of programs and services for
    13  exceptional children during the school year 1991-1992.
    14     (b)  During the 1991-1992 school year, school districts shall
    15  be paid:
    16     (1)  an amount to be determined by multiplying five hundred
    17  twenty-five dollars ($525) by seventeen percent (17%) of the
    18  average daily membership of resident pupils; and
    19     (2)  an amount to be determined by multiplying seven thousand
    20  dollars ($7,000) by one percent (1%) of the average daily
    21  membership of resident pupils.
    22     (c)  Payments to school districts pursuant to this section
    23  and any additional payments pursuant to sections 2509.6 and
    24  2509.7 shall consist of an amount payable in six (6)
    25  installments as follows: in July, fifteen percent (15%) of the
    26  estimated amount due; in September, fifteen percent (15%) of the
    27  estimated amount due; in November, fifteen percent (15%) of the
    28  estimated amount due; in January, fifteen percent (15%) of the
    29  estimated amount due; in March, fifteen percent (15%) of the
    30  estimated amount due; and in June, the balance due, determined
    19910H0221B2442                 - 29 -

     1  by subtracting the payments made during July, September,
     2  November, January and March from the special education payment
     3  earned by the school district.
     4     Section 2509.6.  Average Cost Guarantee.--(a)  For the 1991-
     5  1992 school year, the dollars available to school districts for
     6  operating and administering classes for exceptional children
     7  shall be guaranteed at eight thousand five hundred five dollars
     8  ($8,505) per average daily membership for special education
     9  programs and services offered by school districts during the
    10  1990-1991 school year and ten thousand two hundred ninety
    11  dollars ($10,290) per average daily membership for special
    12  education programs and services offered by the intermediate unit
    13  during the 1990-1991 school year.
    14     (b)  The dollars available to school districts for operating
    15  and administering classes for exceptional children shall be the
    16  sum of the following: total average daily membership for
    17  students receiving special education multiplied by the tuition
    18  charge pursuant to section 2561, plus the amount calculated
    19  pursuant to sections 2509(f) and 2509.5(b) and three times the
    20  district's payment to the Commonwealth for noninstitutionalized
    21  children's programs pursuant to section 2509.1(f). The sum thus
    22  obtained shall be divided by the average daily membership for
    23  students reported in intermediate unit and school district
    24  special education programs during 1990-1991. The quotient
    25  obtained is the amount available per special education average
    26  daily membership.
    27     (c)  For each average daily membership in special education
    28  in 1990-1991, each school district shall receive from the
    29  Commonwealth the funds equal to the greater of subsection (a) or
    30  (b).
    19910H0221B2442                 - 30 -

     1     Section 2509.7.  Minimum Guarantee.--For the 1991-1992 school
     2  year, each intermediate unit, in the aggregate, including the
     3  intermediate unit and its member school districts, shall receive
     4  at least a three and five-tenths percent (3.5%) increase in the
     5  aggregate revenue for special education over the aggregate cash
     6  amount available from the Commonwealth for special education
     7  during the 1990-1991 school year. The intermediate unit shall
     8  meet with its constituent school districts to develop a plan for
     9  the expenditure or distribution of the funds provided by this
    10  section for the purpose of the provision of special education
    11  programs and services. These funds may not be expended or
    12  distributed by the intermediate unit until a majority of the
    13  boards of directors of the constituent school districts have
    14  approved such expenditures or distribution. If the amount
    15  received under the provisions of this section is less than ten
    16  thousand dollars ($10,000), such amount may be retained by the
    17  intermediate unit for the purpose of providing special education
    18  programs or services without the approval of its constituent
    19  school districts. For the purpose of computing the revenue
    20  available for the guarantee in this section, the Commonwealth
    21  shall include funds allocated pursuant to sections 2509(f) and
    22  2509.5(b), plus an amount equal to three times the school
    23  district payment to the Commonwealth pursuant to section
    24  2509.1(b) and the funds allocated pursuant to section 2509.1(c),
    25  (d) and (f) and 2509.6.
    26     Section 2509.8.  Extraordinary Special Education Program
    27  Expenses.--The Department of Education shall, for the 1991-1992
    28  school year, set aside one percent (1%) of the State special
    29  education appropriation for extraordinary expenses to be
    30  incurred in providing a special education program or service to
    19910H0221B2442                 - 31 -

     1  an exceptional student as approved by the Secretary of
     2  Education. The Secretary of Education shall establish guidelines
     3  for the application, approval, distribution and expenditure of
     4  these funds and shall report annually to the General Assembly on
     5  such expenditures.
     6     Section 19.  Section 2517(c) of the act, amended July 1, 1985
     7  (P.L.103, No.31), is amended to read:
     8     Section 2517.  Payments.--* * *
     9     (c)  For the 1981-1982 school year [and every school year
    10  thereafter] through the 1990-1991 school year, the amount
    11  apportioned and allotted to each school district shall be
    12  divided into six payments and the Secretary of Education shall
    13  draw his requisition six times upon the State Treasurer in favor
    14  of each district for the amount to which it is entitled. The
    15  first five payments shall be estimates based on but not to
    16  exceed fifteen percent (15%) each of the total net amount
    17  apportioned and allocated to the school district for the payment
    18  year. The final payment shall be the balance of the
    19  apportionment due for the applicable school year. Payment
    20  thereof shall be made to all school districts on the fourth
    21  Thursday of August, October, December, February and April and
    22  the first day of June. For the 1991-1992 school year and every
    23  school year thereafter, the amount apportioned and allotted to
    24  each school district shall be divided into six payments and the
    25  Secretary of Education shall draw his requisition six times upon
    26  the State Treasurer in favor of each district for the amount to
    27  which it is entitled. The first five payments shall be estimates
    28  based on but not to exceed fifteen percent (15%) each of the
    29  total net amount apportioned and allocated to the school
    30  district for the payment year. The final payment shall be the
    19910H0221B2442                 - 32 -

     1  balance of the apportionment due for the applicable school year.
     2  Payment thereof shall be made to all school districts on the
     3  last Thursday of August, October, December, February and April
     4  and the first day of June.
     5     * * *
     6     Section 20.  Section 2543 of the act, amended October 21,
     7  1965 (P.L.601, No.312), is amended to read:
     8     Section 2543.  Sworn Statement of Amount Expended for
     9  Reimbursable Transportation; Payment; Withholding.--[On or
    10  before the first day of July of each year, each school district
    11  entitled to reimbursement on account of pupil transportation
    12  shall present to the Superintendent of Public Instruction in
    13  such form as he may prescribe and on blanks to be furnished by
    14  him, a sworn statement of the amount expended during the
    15  previous school year for reimbursable transportation of pupils
    16  to and from school, and any amount expended during the previous
    17  school year for board and lodging in lieu of reimbursable
    18  transportation. On the basis of such statement, the
    19  Superintendent of Public Instruction shall, by requisition upon
    20  the State Treasurer, pay, during the month of September, to such
    21  school district, such reimbursement for the previous school year
    22  as is provided for in this act. The Department of Public
    23  Instruction] Annually, each school district entitled to
    24  reimbursement on account of pupil transportation shall provide
    25  in a format prescribed by the Secretary of Education, data
    26  pertaining to pupil transportation for the prior and current
    27  school year. Districts will receive a payment in August equal to
    28  ten percent (10%) of the transportation subsidy paid to that
    29  school district in the prior year. An additional twenty percent
    30  (20%) payment will be provided in the month following receipt of
    19910H0221B2442                 - 33 -

     1  the prior year's data. A twenty-five percent (25%) payment will
     2  be forwarded in December to all school districts that have
     3  provided current year data. A payment in March will be
     4  calculated by totaling all current year transportation payments
     5  and subtracting that total from an amount equal to eighty
     6  percent (80%) of the projected total transportation
     7  reimbursement for the current year. The final payment will occur
     8  in June and be calculated by subtracting the total of the first
     9  four payments, and any other transportation subsidy adjustments
    10  necessary, from the actual current year's total transportation
    11  reimbursement. The Department of Education may, for cause
    12  specified by it, withhold such reimbursement, in any given case,
    13  permanently, or until the school district has complied with the
    14  law or regulations of the State Board of Education.
    15     Section 21.  The act is amended by adding an article to read:
    16                           ARTICLE XXVI-F
    17                          EQUIPMENT GRANTS
    18     Section 2601-F.  Definitions.--When used in this article, the
    19  following words and phrases shall have the following meanings:
    20     "Community colleges" shall mean institutions now or hereafter
    21  created pursuant to the act of August 24, 1963 (P.L.1132,
    22  No.484), known as the "Community College Act of 1963," or
    23  Article XIX-A of this act.
    24     "Department" shall mean the Department of Education of the
    25  Commonwealth.
    26     "Educational equipment" shall mean tangible property used by
    27  institutions of higher education in support of instruction. The
    28  term shall not include equipment used in support of sectarian
    29  and denominational instruction or for any other sectarian and
    30  denominational purpose or activity.
    19910H0221B2442                 - 34 -

     1     "Eligible institution" shall mean an independent institution
     2  of higher education which is approved by the department for
     3  equipment grants pursuant to the provisions of this article. The
     4  term does not include an institution which is determined by the
     5  Department of Education to be a community college, a theological
     6  seminary or school of theology or a sectarian and denominational
     7  institution, nor does it include a State-owned or State-related
     8  institution.
     9     "Equipment grant" shall mean an amount determined by dividing
    10  the funds appropriated pursuant to this article, less reasonable
    11  administrative expenses, by the total of all certified full-time
    12  equivalent students from all eligible institutions applying for
    13  grants.
    14     "Full-time equivalent students" shall mean the enrollment in
    15  programs at eligible institutions expressed in terms of full-
    16  time students as determined by the Department of Education.
    17     "Independent institution of higher education" shall mean an
    18  institution of higher education which is operated not-for-
    19  profit, located in and incorporated or chartered by the
    20  Commonwealth, entitled to confer degrees as set forth in section
    21  211 of the act of May 5, 1933 (P.L.289, No.105), known as the
    22  "Nonprofit Corporation Law," and entitled to apply to itself the
    23  designation "college" or "university" as provided for by
    24  standards and qualifications prescribed by the State Board of
    25  Education pursuant to the act of May 7, 1937 (P.L.585, No.150),
    26  entitled, as amended, "An act prohibiting the use of the
    27  designation of 'college' by any institution not conforming to
    28  the standards of a college prescribed by the State Board of
    29  Education; and providing for injunctions, and penalties."
    30     "Pennsylvania based" shall mean educational equipment
    19910H0221B2442                 - 35 -

     1  manufactured or assembled within this Commonwealth, or sold,
     2  leased or otherwise provided to an eligible institution by a
     3  vendor which has a place of business in this Commonwealth.
     4     "State-owned institution" shall mean a member institution of
     5  the State System of Higher Education.
     6     "State-related institutions" shall mean The Pennsylvania
     7  State University, the University of Pittsburgh, Temple
     8  University and Lincoln University and their branch campuses.
     9     Section 2602-F.  Certification of Recipients.--From the
    10  information it receives from colleges and universities the
    11  department shall certify the number of full-time equivalent
    12  students attending each eligible institution during the most
    13  recent year for which data is available.
    14     Section 2603-F.  Institutional Equipment Grants.--For the
    15  academic year beginning on or about September 1, 1991, the
    16  department shall allot a one-time equipment grant on behalf of
    17  each full-time equivalent student attending the eligible
    18  institution as certified pursuant to section 2602-F. The
    19  allotment shall be made to each eligible institution from the
    20  funds appropriated to the department pursuant to this article.
    21  Following an initial allocation and allotment, if any funds
    22  appropriated have not been and cannot be allocated to one or
    23  more institutions otherwise eligible for funds, the department
    24  shall reallocate these funds to the remaining eligible
    25  institutions so that all funds appropriated under this article
    26  have been allotted.
    27     Section 2604-F.  Use of Moneys.--The moneys appropriated
    28  shall be used only for, or in connection with, expenses incurred
    29  by the eligible institution to purchase, lease or otherwise
    30  acquire educational equipment which is Pennsylvania based. If
    19910H0221B2442                 - 36 -

     1  the eligible institution purchases, leases or otherwise acquires
     2  educational equipment which is not Pennsylvania based, it must
     3  file with the department a statement of justification as to why
     4  Pennsylvania-based educational equipment was not obtained.
     5     Section 2605-F.  Forfeiture.--Any eligible institution which
     6  refuses to submit such information for audit as required by this
     7  article or knowingly submits misrepresentations or false
     8  statements with the intention of fraudulently obtaining moneys
     9  from the department shall be denied status as an eligible
    10  institution under the provisions of this article.
    11     Section 2606-F.  Expiration.--This article shall expire on
    12  June 30, 1992.
    13     Section 22.  The amendment, addition or repeal of sections
    14  687, 1113, 1373.1, 1376(c), 2501(9.2), (18) and (19), 2502(h),
    15  2502.11(b) and (d), 2502.13, 2502.17, 2502.18, 2503, 2505.1,
    16  2506.1, 2507, 2509, 2509.1, 2509.3, 2509.5, 2509.6, 2509.7,
    17  2509.8, 2517(c), 2543 and Article XXVI-F shall be retroactive to
    18  July 1, 1991.
    19     Section 23.  This act shall take effect immediately.








    A22L24JLW/19910H0221B2442       - 37 -