PRIOR PRINTER'S NO. 1788                      PRINTER'S NO. 1923

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1612 Session of 1993


        INTRODUCED BY COWELL AND EVANS, MAY 5, 1993

        AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 26, 1993

                                     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 tuition and
     6     maintenance of certain exceptional children, for financial     <--
     7     program reimbursement, for aid to districts faced with
     8     bankruptcy of businesses, for payments for courses for
     9     exceptional children, for payments to intermediate units, for
    10     special education payments and for extraordinary special
    11     education program expenses; AND providing for excess payment   <--
    12     recovery.; and further providing for transportation payments.  <--

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Section 1376 of the act of March 10, 1949
    16  (P.L.30, No.14), known as the Public School Code of 1949,
    17  amended July 8, 1989 (P.L.253, No.43) and August 5, 1991
    18  (P.L.219, No.25), 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 school entry age and twenty-one (21) years of age
    22  and resident in this Commonwealth, who is blind or deaf, or

     1  [afflicted with] has cerebral palsy and/or [brain damage]
     2  neurological impairment and/or muscular dystrophy and/or is
     3  mentally retarded and/or [socially and emotionally disturbed,]
     4  has a serious emotional disturbance and/or has autism/pervasive
     5  developmental disorder and is enrolled, with the approval of the
     6  Department of Education, as a pupil in an approved private
     7  school [for the blind or deaf, or cerebral palsied and/or brain
     8  damaged and/or muscular dystrophied and/or mentally retarded,
     9  and/or socially and emotionally disturbed,] approved by the
    10  Department of Education, in accordance with standards and
    11  regulations promulgated by the State Board of Education, the
    12  school district in which such child is resident shall pay the
    13  greater of either twenty per centum (20%) of the actual audited
    14  cost of tuition and maintenance of such child in such school, as
    15  determined by the Department of Education, or its "tuition
    16  charge per elementary pupil" or its "tuition charge per high
    17  school pupil," and the Commonwealth shall pay, out of funds
    18  appropriated to the department for special education, the
    19  balance due for the costs of such child's tuition and
    20  maintenance, as determined by the department. For the school
    21  years 1989-1990, 1990-1991 and 1991-1992, the school district
    22  payment shall be no greater than forty percent (40%) of the
    23  actual audited costs of tuition and maintenance of such child in
    24  such school. For the 1993-1994 school year and each school year
    25  thereafter, the school district payment shall be the greater of
    26  forty percent (40%) of the actual audited costs of tuition and
    27  maintenance of such child in such school, as determined by the
    28  department, or its "tuition charge per elementary pupil" or its
    29  "tuition charge per high school pupil"; and the Commonwealth
    30  shall pay, out of funds appropriated to the department for
    19930H1612B1923                  - 2 -

     1  approved private schools, the balance due for the costs of such
     2  child's tuition and maintenance, as determined by the
     3  department. The department will credit the district of residence
     4  with average daily membership for such child consistent with the
     5  rules of procedure developed in accordance with section 2501. If
     6  the residence of such child in a particular school district
     7  cannot be determined, the Commonwealth shall pay, out of moneys
     8  appropriated to the department for special education, the whole
     9  cost of tuition and maintenance of such child. The Department of
    10  Education shall be provided with such financial data from
    11  approved private schools as may be necessary to determine the
    12  reasonableness of costs for tuition and room and board
    13  concerning Pennsylvania resident approved reimbursed students.
    14  The Department of Education shall evaluate such data and shall
    15  disallow any cost deemed unreasonable. Any costs deemed
    16  unreasonable by the Department of Education for disallowance
    17  shall be considered an adjudication within the meaning of Title
    18  2 of the Pa.C.S. (relating to administrative law and procedure)
    19  and regulations promulgated thereunder.
    20     (b)  When any person less than school entry age or more than
    21  twenty-one (21) years of age and resident in this Commonwealth,
    22  who is blind or deaf, or [afflicted with] has cerebral palsy
    23  and/or [brain damage] has neurological impairment and/or has
    24  muscular dystrophy, or has autism/pervasive developmental delay,
    25  and is enrolled, with the approval of the Department of
    26  Education, as a pupil in an approved private school [for the
    27  blind or deaf, or cerebral palsied and/or brain damaged and/or
    28  muscular dystrophied,] approved by the Department of Education,
    29  the Commonwealth shall pay to such school, out of moneys
    30  appropriated to the department for special education, the actual
    19930H1612B1923                  - 3 -

     1  audited cost of tuition and maintenance of such person, as
     2  determined by the Department of Education, subject to review and
     3  approval in accordance with standards and regulations
     4  promulgated by the State Board of Education, and in addition, in
     5  the case of any child less than school entry age, who is blind,
     6  the cost, as determined by the Department of Education of
     7  instructing the parent of such blind child in caring for such
     8  child.
     9     (c)  Each approved private school, prior to the start of the
    10  school year, shall submit to the department such information as
    11  the department may require in order to establish an estimate of
    12  reimbursable costs. Based upon this information, any other data
    13  deemed necessary by the department and in accordance with
    14  department standards, the department shall develop for each
    15  approved private school an estimate of reimbursable costs. Based
    16  upon such estimate, the department shall provide each approved
    17  private school with monthly payments in advance of department
    18  audit. The department may withhold a portion of such payments
    19  not exceeding five percent (5%) of such payment, pending final
    20  audit. In no event shall either the advance payments or final
    21  reimbursement made by the department following audit exceed the
    22  appropriation available for approved private schools.
    23     (d)  No private institution receiving payment in accordance
    24  with this section shall impose any charge on the student and/or
    25  parents who are Pennsylvania approved reimbursable residents for
    26  a program of individualized instruction and maintenance
    27  appropriate to the child's needs; except that charges for
    28  services not part of such program may be made if agreed to by
    29  the parents.
    30     (E)  (1)  THE EDUCATION COMMITTEES OF THE SENATE AND HOUSE OF  <--
    19930H1612B1923                  - 4 -

     1  REPRESENTATIVES ARE DIRECTED TO JOINTLY EXAMINE THE ISSUES OF
     2  THE FUNDING OF APPROVED PRIVATE SCHOOLS AND SPECIAL EDUCATION
     3  STUDENTS' ACCESS TO APPROVED PRIVATE SCHOOLS AS PART OF THE FULL
     4  CONTINUUM OF SPECIAL EDUCATION PLACEMENTS. THE COMMITTEES'
     5  EXAMINATION SHOULD ADDRESS, AT A MINIMUM, THE FOLLOWING ISSUES:
     6     (I)  THE FUNDING METHODOLOGY WHICH SUPPORTS THE SCHOOL
     7  DISTRICT'S RESPONSIBILITY FOR INDIVIDUALIZED, APPROPRIATE
     8  EDUCATIONAL SERVICES TO SPECIAL EDUCATION STUDENTS THROUGH
     9  ACCESS TO THE MOST COMPREHENSIVE CONTINUUM OF EDUCATIONAL
    10  OPTIONS AND SETTINGS.
    11     (II)  THE ROLE OF THE APPROVED PRIVATE SCHOOL IN THE MANDATED
    12  CONTINUUM OF SPECIAL EDUCATION SERVICES AVAILABLE TO STUDENTS IN
    13  PENNSYLVANIA.
    14     (III)  THE RELATIVE ROLES OF THE DEPARTMENT OF EDUCATION AND
    15  SCHOOL DISTRICTS TO ENSURE FREE APPROPRIATE PUBLIC EDUCATION
    16  (FAPE) THROUGH ADEQUATE FUNDING AND APPROPRIATE DISTRIBUTION OF
    17  COMPREHENSIVE SERVICES.
    18     (IV)  THE PROVISIONS OF THE INDIVIDUALS WITH DISABILITIES
    19  EDUCATION ACT (IDEA) (P.L.101-476); THE CORDERO SETTLEMENT
    20  IMPLEMENTATION PLAN; THIS ACT; AND 22 PA. CODE CHS. 14 AND 342
    21  AS THEY RELATE TO THE PROVISION OF PROGRAMS AND SERVICES TO
    22  SPECIAL EDUCATION STUDENTS SHOULD BE CAREFULLY REVIEWED AS THEY
    23  PERTAIN TO APPROVED PRIVATE SCHOOLS, CONTINUUM OF PLACEMENT
    24  OPTIONS, FUNDING, FAPE AND OTHER PERTINENT ISSUES.
    25     (2)  THE COMMITTEES SHALL REPORT BACK TO THE GENERAL ASSEMBLY
    26  BY NOVEMBER 15, 1993, WITH LEGISLATIVE AND/OR ADMINISTRATIVE
    27  RECOMMENDATIONS. THE COMMITTEES MAY HOLD SUCH MEETINGS AND
    28  HEARINGS AS THEY DEEM APPROPRIATE TO ACCOMPLISH THE PROVISIONS
    29  OF THIS SUBSECTION.
    30     Section 2.  Section 1376.1 of the act, amended July 8, 1989
    19930H1612B1923                  - 5 -

     1  (P.L.253, No.43), is amended to read:
     2     Section 1376.1.  Actual Cost of Tuition and Maintenance of
     3  Certain Exceptional Children in the Four Chartered Schools for
     4  Education of the Deaf and the Blind.--(a)  The following term,
     5  whenever used or referred to in this section, shall have the
     6  following meaning. "Chartered school" shall mean any of the four
     7  (4) chartered schools for the education of the deaf or the
     8  blind: the Pennsylvania School for the Deaf; the Overbrook
     9  School for the Blind; the Western Pennsylvania School for Blind
    10  Children; and the Western Pennsylvania School for the Deaf.
    11     (b)  When any child of school age resident in this
    12  Commonwealth, who is blind or deaf, is enrolled with the
    13  approval of the Department of Education as a pupil in any of the
    14  four (4) chartered schools in accordance with standards and
    15  regulations promulgated by the State Board of Education, the
    16  school district in which such child is resident shall pay the
    17  greater of either twenty percent (20%) of the actual cost of
    18  tuition and maintenance of such child in such institution, as
    19  determined by the Department of Education; or its "tuition
    20  charge per elementary pupil" or its "tuition charge per high
    21  school pupil," and the Commonwealth shall pay, out of funds
    22  appropriated to the department for special education, the
    23  balance due for the costs of such child's tuition and
    24  maintenance, as determined by the department. For the school
    25  years 1989-90, 1990-91 and 1991-92, the school district payment
    26  shall be no greater than forty percent (40%) of the actual
    27  audited costs of tuition and maintenance of such child in such
    28  school. For the 1993-1994 school year and each school year
    29  thereafter, the school district payment shall be the greater of
    30  forty percent (40%) of the actual audited costs of tuition and
    19930H1612B1923                  - 6 -

     1  maintenance of such child in such school, as determined by the
     2  department, or its "tuition charge per elementary pupil" or its
     3  "tuition charge per high school pupil"; and the Commonwealth
     4  shall pay, out of funds appropriated to the department for
     5  chartered schools, the balance due for the costs of such child's
     6  tuition and maintenance, as determined by the department. The
     7  department will credit the district of residence with average
     8  daily membership for such child consistent with the rules of
     9  procedure developed in accordance with section 2501. If the
    10  residence of such child in a particular school district cannot
    11  be determined, the Commonwealth shall pay, out of moneys
    12  appropriated to the department for special education, the whole
    13  cost of tuition and maintenance of such child. The Department of
    14  Education shall be provided with such financial data from each
    15  of the chartered schools as may be necessary to determine the
    16  reasonableness of charges for tuition and room and board of each
    17  of the chartered schools made on Pennsylvania resident approved
    18  students. The Department of Education shall evaluate such data
    19  and shall disallow any charges deemed unreasonable. Any charge
    20  deemed unreasonable by the Department of Education for
    21  disallowance shall be considered an adjudication within the
    22  meaning of Title 2 of the Pa.C.S. (relating to administrative
    23  law and procedure) and regulations promulgated thereunder.
    24     (c)  When any person less than school age resident in this
    25  Commonwealth who is blind or deaf is enrolled, with the approval
    26  of the Department of Education, as a residential pupil in any of
    27  the four (4) chartered schools, the Commonwealth shall pay to
    28  the school, out of moneys appropriated to the department for
    29  special education, the actual cost of tuition and maintenance of
    30  such person, as determined by the Department of Education,
    19930H1612B1923                  - 7 -

     1  subject to review and approval in accordance with standards and
     2  regulations promulgated by the State Board of Education, and in
     3  addition, in the case of any child less than school age, who is
     4  blind, the cost, as determined by the Department of Education of
     5  instructing the parent of such blind child in caring for such
     6  child.
     7     (d)  None of the chartered schools receiving payment in
     8  accordance with this section shall impose any charge on the
     9  student and/or parents who are approved reimbursable residents
    10  for a program of instruction and maintenance appropriate to the
    11  child's needs; except that charges for programs not part of the
    12  normal school year may be made.
    13     Section 3.  Section 1913-A of the act is amended by adding a   <--
    14  subsection to read:
    15     Section 1913-A.  Financial Program; Reimbursement or
    16  Payments.--* * *
    17     (j)  For the fiscal year 1992-1993, if insufficient funds are
    18  appropriated to make Commonwealth payments pursuant to this
    19  section, such payment shall be made on a pro rata basis.
    20     Section 4 3.  Section 2502.16(d) of the act, added July 10,    <--
    21  1987 (P.L.286, No.50), is amended to read:
    22     Section 2502.16.  Temporary Special Aid to School Districts
    23  Suffering Loss of Tax Revenue Due to Bankruptcy of Businesses in
    24  the School District.--* * *
    25     [(d)  Any subsequent payments made on account of such ceased
    26  or suspended real estate taxes by such businesses or by
    27  bankruptcy officials on behalf of such businesses, during the
    28  course of such bankruptcy proceedings or following their
    29  completion, shall be paid to the Department of Education by the
    30  school district to the extent of the temporary special aid
    19930H1612B1923                  - 8 -

     1  provided to such school district in accordance with the
     2  provisions of this section. Any interest or penalties received
     3  by such school district shall be retained by the school
     4  district.]
     5     * * *
     6     Section 5 4.  Section 2509(a) of the act, amended August 5,    <--
     7  1991 (P.L.219, No.25), is amended to read:
     8     Section 2509.  Payments on Account of Courses for Exceptional
     9  Children.--(a) Before the first day of July of every year [up to
    10  and including 1990], every school district or joint board of
    11  school directors planning to conduct classes or schools for
    12  exceptional children shall submit, for prior review and approval
    13  [to establish the amount on which reimbursement will be paid] by
    14  the Department of Education, an estimate of the cost of classes
    15  or schools for exceptional children to be operated by the
    16  district or joint board during the ensuing school year, [and]
    17  the revenue and local expeditures TUITION EXPENDITURE OBLIGATION  <--
    18  to support the estimated cost and an estimate of the cost for
    19  transportation of pupils to and from classes and schools for
    20  exceptional children conducted by the district or joint board of
    21  school directors. FOR THE PURPOSES OF THIS ARTICLE, "TUITION      <--
    22  EXPENDITURE OBLIGATION" SHALL MEAN THAT SCHOOL DISTRICTS AND
    23  SCHOOL DISTRICTS WHICH ARE COTERMINOUS WITH AN INTERMEDIATE UNIT
    24  SHALL FIRST UTILIZE LOCAL DISTRICT FUNDS TO SUPPORT SPECIAL
    25  EDUCATION PROGRAM EXPENDITURES. THIS EXPENDITURE OBLIGATION
    26  SHALL BE AN AMOUNT EQUAL TO THE DISTRICT'S "TUITION CHARGE FOR
    27  ELEMENTARY PUPIL" OR "TUITION CHARGE PER HIGH SCHOOL PUPIL," AS
    28  DEFINED IN SECTION 2561 OF THIS ACT, MULTIPLIED BY THE AVERAGE
    29  DAILY MEMBERSHIP OF DISTRICT STUDENTS IN SPECIAL EDUCATION
    30  PROGRAMS. From the school term of 1954-1955 up to and including
    19930H1612B1923                  - 9 -

     1  the school term of 1990-1991, every school district, regardless
     2  of classification, shall be paid by the Commonwealth an amount
     3  to be determined by multiplying the average daily membership in
     4  a course or courses for exceptional children, (1) at the
     5  elementary level, by an amount determined by subtracting the
     6  "instruction cost per elementary pupil," as defined in section
     7  2561 of this act, from the "instruction cost per special class
     8  pupil," as hereinafter defined, for the preceding school term,
     9  or from the instruction cost per special class elementary pupil
    10  as approved for reimbursement by the Department of Education in
    11  the budget for classes or schools for exceptional children for
    12  the school year in which the class is operated, whichever is the
    13  lesser, (2) at the secondary level, by an amount determined by
    14  subtracting the "instruction cost per high school pupil," as
    15  defined in section 2561 of this act, from the "instruction cost
    16  per special class pupil," as hereinafter defined, for the
    17  preceding school term, or from the instruction cost per special
    18  classes secondary pupil as approved for reimbursement by the
    19  Department of Education in the budget for classes or school for
    20  exceptional children for the school year in which the class is
    21  operated, whichever is the lesser.
    22     * * *
    23     Section 6 5.  Section 2509.1(b.1), (d) 2509.1(D) and (g) of    <--
    24  the act, amended or added August 5, 1991 (P.L.219, No.25) and
    25  July 9, 1992 (P.L.392, No.85), are amended AND THE SECTION IS     <--
    26  AMENDED BY ADDING SUBSECTIONS to read:
    27     Section 2509.1.  Payments to Intermediate Units.--* * *
    28     (b.1)  On or before the last day of June, every intermediate   <--
    29  unit shall submit, for prior review and approval by the
    30  Department of Education, an estimate of the cost of operating
    19930H1612B1923                 - 10 -

     1  and administering classes or schools for institutionalized
     2  children operated by the intermediate unit during the current
     3  school year. The Commonwealth shall pay each intermediate unit
     4  the approved amount during the following school year.
     5  Notwithstanding the foregoing provision of this subsection, for
     6  the 1992-1993 school year, intermediate units shall submit their
     7  annual reports for the 1991-1992 school year on or before
     8  September 1, 1993. The Commonwealth shall pay each intermediate
     9  unit reporting on or before September 1, 1993, the approved
    10  amount.
    11     (B.2)  ANNUALLY, ON OR BEFORE THE LAST DAY OF JUNE, EVERY      <--
    12  INTERMEDIATE UNIT SHALL SUBMIT FOR PRIOR REVIEW AND APPROVAL BY
    13  THE DEPARTMENT OF EDUCATION, AN ESTIMATE OF THE COST OF
    14  OPERATING AND ADMINISTERING CLASSES OR SCHOOLS FOR
    15  INSTITUTIONALIZED CHILDREN TO BE OPERATED BY THE INTERMEDIATE
    16  UNIT DURING THE ENSUING SCHOOL YEAR. THE COMMONWEALTH SHALL PAY
    17  EACH INTERMEDIATE UNIT THE APPROVED AMOUNT DURING THE YEAR IN
    18  WHICH THE CLASSES OR SCHOOLS ARE OPERATED.
    19     * * *
    20     (d)  For the 1991-1992 school year, each intermediate unit
    21  which is coterminous to a school district of the first class or
    22  first class A shall be paid fifty percent (50%) of the amount
    23  received by the intermediate unit for the cost of operating and
    24  administering classes or schools for exceptional children, as
    25  approved by the Department of Education for the 1990-1991 school
    26  year. For the 1991-1992 school year, each intermediate unit not
    27  coterminous with a school district which operates all the
    28  special education programs for handicapped children for its
    29  constituent school districts shall be paid ten percent (10%) of
    30  the amount received by the intermediate unit for the cost of
    19930H1612B1923                 - 11 -

     1  operating and administering classes or schools for handicapped
     2  children, as approved by the Department of Education for the
     3  1990-1991 school year. During the 1993-1994 school year, each
     4  intermediate unit which is coterminous to a school district of
     5  the first class or first class A shall be paid twenty-five
     6  percent (25%) of the amount received by the intermediate unit
     7  for the cost of operating and administering classes or schools
     8  for exceptional children as approved by the department for the
     9  1990-1991 school year. The actual percentage of this payment
    10  shall be adjusted to ensure that each intermediate unit which is
    11  coterminous to a school district of the first class or first
    12  class A does not have fewer special education resources,
    13  including tuition expenditure obligations, in the aggregate than
    14  it had available in the preceding school year.
    15     * * *
    16     (E.1)  FOR THE 1993-1994 SCHOOL YEAR AND EACH YEAR             <--
    17  THEREAFTER, PAYMENTS TO INTERMEDIATE UNITS UNDER THIS SECTION
    18  SHALL CONSIST OF AN AMOUNT IN THREE INSTALLMENTS DURING THE
    19  SCHOOL YEAR AS FOLLOWS: IN AUGUST, FIFTY PERCENT (50%) OF THE
    20  PAYMENTS UNDER SUBSECTIONS (B.2) AND (C) OR (D); IN NOVEMBER,
    21  FORTY-FIVE PERCENT (45%) OF THE PAYMENTS UNDER SUBSECTIONS (B.2)
    22  AND (C) OR (D); AND ON JUNE 1, THE BALANCE OF THE PAYMENTS DUE
    23  UPON RECONCILIATION OF ACTUAL COSTS. THE DEPARTMENT OF EDUCATION
    24  SHALL ENCUMBER THE BALANCE OF FUNDS APPROPRIATED FOR THE SCHOOL
    25  YEAR FOR CLASSES OR SCHOOLS FOR INSTITUTIONALIZED CHILDREN FOR
    26  THE PURPOSE OF MAKING THE PAYMENTS DUE UPON RECONCILIATION OF
    27  ACTUAL COSTS.
    28     * * *
    29     (g)  (1)  For the 1991-1992 school year and each school year
    30  thereafter, for each child enrolled in an intermediate unit
    19930H1612B1923                 - 12 -

     1  class for institutionalized children, the school district in
     2  which the child is resident shall pay to the Commonwealth a sum
     3  equal to the "tuition charge per elementary pupil" or the
     4  "tuition charge per high school pupil," as determined for the
     5  schools operated by the district or by a joint board of which
     6  the district is a member, for the same year in which the class
     7  or school is operated, as provided for in section 2561. In the
     8  event that any school district has not established such "tuition
     9  charge per elementary pupil" or "tuition charge per high school
    10  pupil," the Secretary of Education shall fix a reasonable charge
    11  for such district for the year in question.
    12     (2)  In addition, the district shall pay on account of
    13  transportation by the intermediate unit of pupils to and from
    14  classes and schools for exceptional children, whether or not
    15  conducted by the intermediate unit, an amount to be determined
    16  by subtracting from the cost of transportation per pupil the
    17  reimbursement due the district on account of such
    18  transportation. In order to facilitate such payments by the
    19  several school districts, the Secretary of Education shall
    20  withhold from any money due to such district out of any State
    21  appropriation, except from reimbursements due on account of
    22  rentals, the amounts due by such school districts to the
    23  Commonwealth. All amounts so withheld are hereby specifically
    24  appropriated to the Department of Education for the support of
    25  public schools.
    26     Section 7 6.  Section 2509.5 of the act is amended by adding   <--
    27  subsections to read:
    28     Section 2509.5.  Special Education Payments to School
    29  Districts.--* * *
    30     (b.1)  During the 1993-1994 school year and each school year
    19930H1612B1923                 - 13 -

     1  thereafter, each school district shall be paid:
     2     (1)  an amount to be determined by multiplying one thousand
     3  dollars ($1,000) by fifteen percent (15%) of the average daily
     4  membership of resident pupils; and
     5     (2)  an amount to be determined by multiplying eleven
     6  thousand three hundred ninety dollars ($11,390) by one percent
     7  (1%) of the average daily membership of resident pupils.
     8     * * *
     9     (d)  The Secretary of Education shall develop a definition of
    10  severely classified exceptional students by September 20, 1993.
    11  This definition may include the primary exceptionality, level of
    12  intervention, type of support and related services requirements
    13  elements currently collected through the PennData system. This
    14  definition shall not include students who are institutionalized,
    15  in approved private school placements, in detention home
    16  programs, in mentally gifted programs or in early intervention
    17  programs operated under the provisions of the act of December
    18  19, 1990 (P.L.1372, No.212), known as the "Early Intervention
    19  Services System Act." This definition shall be submitted to the
    20  majority chairman and the minority chairman of the Education
    21  Committee of the Senate and the majority chairman and the
    22  minority chairman of the Education Committee of the House of
    23  Representatives for review and comment no later than September
    24  20, 1993. No sooner than fifteen (15) days and not later than
    25  thirty (30) days after submission of the proposed definition to
    26  the committees, the Secretary of Education shall approve a
    27  definition of severely classified exceptional students.
    28     (e)  The Secretary of Education shall modify the PennData
    29  system to collect for each school district an average daily
    30  membership count of those exceptional students classified as
    19930H1612B1923                 - 14 -

     1  severe. The Secretary of Education shall use the approved
     2  definition of severely classified exceptional in the development
     3  of the PennData report "Representation of Students with Severe
     4  Disabilities in Special Education." The Secretary of Education
     5  shall provide the 1993-1994 PennData report "Representation of
     6  Students with Severe Disabilities in Special Education"
     7  detailing the average daily membership by category of
     8  exceptionality for each school district for the 1993-1994
     9  academic year to the majority chairman and the minority chairman
    10  of the Education Committee of the Senate and the majority
    11  chairman and the minority chairman of the Education Committee of
    12  the House of Representatives by February 1, 1994, and shall
    13  annually thereafter provide the PennData report "Representation
    14  of Students with Severe Disabilities in Special Education"
    15  detailing the average daily membership by category of
    16  exceptionality for each school district for the current school
    17  year to the committees by the first day of February of each
    18  year.
    19     (f)  During the 1993-1994 school year only, school districts
    20  with a severe incidence rate, as reported in the PennData report
    21  "Representation of Students with Severe Disabilities in Special
    22  Education" for the school year prior to fiscal year 1993-1994
    23  which is in excess of one percent (1%) of the district average
    24  daily membership shall qualify for incidence directed funding.
    25  Incidence directed funding shall be those payments to qualified
    26  districts as determined by multiplying the number of severely
    27  classified students in excess of one percent (1%) of the
    28  district average daily membership by a dollar amount to be
    29  determined by dividing ten million dollars ($10,000,000) by the
    30  sum of the number of severely classified students in districts
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     1  qualified to receive incidence directed funding.
     2     Section 8 7.  Section 2509.8 of the act, amended July 9, 1992  <--
     3  (P.L.392, No.85), is amended to read:
     4     Section 2509.8.  Extraordinary Special Education Program
     5  Expenses.--The Department of Education shall, for the 1991-1992
     6  school year [and each school year thereafter], set aside one
     7  percent (1%) of the State special education appropriation for
     8  extraordinary expenses to be incurred in providing a special
     9  education program or service to an exceptional student as
    10  approved by the Secretary of Education. The department shall,
    11  for the 1993-1994 school year and each school year thereafter,
    12  set aside two percent (2%) of the State special education
    13  appropriation for extraordinary expenses to be incurred by
    14  districts in providing special education programs or services to
    15  exceptional students. Any unencumbered funds in this account
    16  shall be carried forward to supplement subsequent years
    17  extraordinary special education program expense PROGRAMS AND      <--
    18  SERVICES. The Secretary of Education shall establish guidelines
    19  for the application, approval, distribution and expenditure of
    20  these funds and shall report annually to the General Assembly on
    21  such expenditures no later than the last day of March.
    22     Section 9 8.  The act is amended by adding a section to read:  <--
    23     Section 2509.10.  Excess Payment Recovery.--The Secretary of
    24  Education shall develop a system to annually determine the
    25  aggregate special education resources, including tuition
    26  expenditure obligations, available to school districts and
    27  school districts which are coterminous with an intermediate unit
    28  and the annual special education expenditures for those school
    29  districts. The Secretary of Education shall, by November 1,
    30  1993, develop proposed legislation to establish procedures
    19930H1612B1923                 - 16 -

     1  through which school district aggregate resources for special
     2  education which are in excess of special education expenditures
     3  are to be recovered. This proposed legislation shall be
     4  submitted to the majority chairman and the minority chairman of
     5  the Education Committee of the Senate and the majority chairman
     6  and the minority chairman of the Education Committee of the
     7  House of Representatives for review and consideration no later
     8  than November 1, 1993.
     9     Section 10.  Section 2541 of the act is amended by adding a    <--
    10  subsection to read:
    11     Section 2541.  Payments on Account of Pupil Transportation.--
    12  * * *
    13     (e)  For the 1991-1992 school year payable in fiscal year
    14  1992-1993, if insufficient funds are appropriated to make
    15  Commonwealth payments pursuant to this section, such payments
    16  shall be made on a pro rata basis.
    17     Section 11 9.  This act shall take effect immediately.         <--









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