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                                                      PRINTER'S NO. 4071

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2615 Session of 2002


        INTRODUCED BY RUBLEY, STEIL, GRUCELA, MELIO, ARMSTRONG, BASTIAN,
           BUNT, CAPPELLI, CIVERA, CORRIGAN, CREIGHTON, DAILEY, DALEY,
           DALLY, DiGIROLAMO, DIVEN, FEESE, FLICK, FREEMAN, GODSHALL,
           HANNA, HARHAI, HENNESSEY, HERMAN, HERSHEY, LEH, MARSICO,
           McCALL, McNAUGHTON, PALLONE, PIPPY, PISTELLA, READSHAW, ROSS,
           SAINATO, SCHRODER, SEMMEL, SHANER, B. SMITH, STEELMAN,
           R. STEVENSON, TANGRETTI, E. Z. TAYLOR, THOMAS, TIGUE, VANCE,
           WALKO, WATSON, M. WRIGHT, YOUNGBLOOD, YUDICHAK AND ZIMMERMAN,
           JUNE 20, 2002

        REFERRED TO COMMITTEE ON EDUCATION, JUNE 20, 2002

                                     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 the powers and
     6     duties of intermediate units, for the education of
     7     exceptional children and for payments relating to the
     8     education of exceptional children; and making editorial
     9     changes.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Section 914-A(7) of the act of March 10, 1949
    13  (P.L.30, No.14), known as the Public School Code of 1949, added
    14  May 4, 1970 (P.L.311, No.102), is amended to read:
    15     Section 914-A.  Powers and Duties of the Intermediate Unit
    16  Board of Directors.--An intermediate unit board of directors
    17  shall have the power and its duty shall be:
    18     * * *

     1     (7)  To provide for and conduct programs of services
     2  authorized by the State Board of Education, including services
     3  performed under contract with component school districts. Except
     4  as otherwise provided by law, all powers and duties of county
     5  boards of school directors in regard to classes and schools for
     6  [exceptional children,] educational broadcasting, audio-visual
     7  libraries, instructional materials centers, area technical
     8  schools and area vocational-technical schools are hereby
     9  transferred to and conferred upon intermediate unit boards of
    10  directors. An intermediate unit may contract with school
    11  districts to provide services on behalf of the intermediate
    12  unit. An intermediate unit shall cooperate with the Department
    13  of Education in the provision of educational services for
    14  exceptional children with disabilities. An intermediate unit may
    15  cooperate with component school districts in the provision of
    16  educational services for exceptional children who are gifted.
    17     * * *
    18     Section 2.  Section 922.1-A(c) of the act, amended May 10,
    19  2000 (P.L.44, No.16), is amended to read:
    20     Section 922.1-A.  Auxiliary Services.--* * *
    21     (c)  Program of Auxiliary Services. Students attending
    22  nonpublic schools shall be furnished a program of auxiliary
    23  services which are provided to public school students in the
    24  school district in which their nonpublic school is located. The
    25  program of auxiliary services shall be provided by the
    26  intermediate unit in which the nonpublic school is located, in
    27  accordance with standards of the Secretary of Education. Special
    28  education services for exceptional children who are gifted shall
    29  be provided by the intermediate unit. Special education services
    30  for exceptional children with disabilities shall be provided by
    20020H2615B4071                  - 2 -

     1  the Department of Education through the intermediate unit.
     2  Before an intermediate unit makes any decision that affects the
     3  opportunities for children attending nonpublic schools to
     4  participate in the auxiliary services provided under this
     5  section, the intermediate unit shall consult with such nonpublic
     6  schools to determine at a minimum: which general categories of
     7  children shall receive services; what services shall be
     8  provided; how and where the services shall be provided; and how
     9  the services shall be evaluated. Such services shall be provided
    10  directly to the nonpublic school students by the intermediate
    11  unit in the schools which the students attend, in mobile
    12  instructional units located on the grounds of such schools or in
    13  any alternative setting mutually agreed upon by the school and
    14  the intermediate unit, to the extent permitted by the
    15  Constitution of the United States and the Constitution of the
    16  Commonwealth of Pennsylvania.
    17     [Such] (c.1)  The auxiliary services shall be provided
    18  directly by the intermediate units [and no auxiliary services
    19  presently provided to public school students by the intermediate
    20  units and/or school districts by means of State or local
    21  revenues, during the school year 1974-1975, shall be
    22  eliminated]. No school districts shall be required, pursuant to
    23  any section of this act, to offer auxiliary services provided by
    24  any other school districts within such intermediate units.
    25     * * *
    26     Section 3.  Section 1309 of the act, amended June 30, 1995
    27  (P.L.220, No.26), is amended to read:
    28     Section 1309.  Cost of Tuition; How Fixed.--(a)  The cost of
    29  tuition in such cases shall be fixed as is now provided by law
    30  for tuition costs in other cases, except in the following
    20020H2615B4071                  - 3 -

     1  circumstances:
     2     (1)  Where, for the accommodation of such children, it shall
     3  be necessary to provide a separate school or to erect additional
     4  school buildings, the charge for tuition for such children may
     5  include a proportionate cost of the operating expenses, rental,
     6  and interest on any investment required to be made in erecting
     7  such new school buildings.
     8     (2)  When a child who is an inmate of an institution is [a
     9  child with exceptionalities] an exceptional child who is gifted,
    10  the district in which the institution is located may charge the
    11  district of residence, and the district of residence shall pay a
    12  special education charge in addition to the applicable tuition
    13  charge. Such special education charge when combined with the
    14  applicable tuition charge shall not exceed the total net cost of
    15  the special education program provided. [In the case of a child
    16  with exceptionalities who is an inmate of an institution and who
    17  is served under section 2509.1(b), the district in which the
    18  institution is located may charge the district of residence an
    19  amount that does not exceed the total cost of the special
    20  education program provided minus the amount received per child
    21  from the Commonwealth under section 2509.1(b).]
    22     (3)  When a child who is an inmate of an institution is an
    23  exceptional child with disabilities, the district in which the
    24  institution is located shall charge the district of residence,
    25  and the district of residence shall pay the applicable tuition
    26  charge. The Commonwealth shall be responsible for the payment of
    27  all special education charges.
    28     (b)  The tuition herein provided for shall be paid annually
    29  by the [Secretary of Education] the Commonwealth, the district
    30  of residence or the institution as the case may be.
    20020H2615B4071                  - 4 -

     1     Section 4.  Section 1327(d) of the act, added December 21,
     2  1988 (P.L.1321, No.169), is amended to read:
     3     Section 1327.  Compulsory School Attendance.--* * *
     4     (d)  Instruction to children of compulsory school age
     5  provided in a home education program, as provided for in section
     6  1327.1 of this act, shall be considered as complying with the
     7  provisions of this section, except that any student who has been
     8  identified pursuant to the provisions of the Education of the
     9  Handicapped Act (Public Law 91-230, 20 U.S.C. § 1401 et seq.) as
    10  needing special education services, excluding those students
    11  identified as gifted and/or talented, shall be in compliance
    12  with the requirements of compulsory attendance by participating
    13  in a home education program, as defined in section 1327.1, when
    14  the program addresses the specific needs of the exceptional
    15  student and is approved by a teacher with a valid certificate
    16  from the Commonwealth to teach special education or a licensed
    17  clinical or certified school psychologist, and written
    18  notification of such approval is submitted with the notarized
    19  affidavit required under section 1327.1(b) to the Department of
    20  Education. The supervisor of a home education program may
    21  request that the [school district or] Department of Education
    22  through the intermediate unit of residence provide services that
    23  address the specific needs of the exceptional student in the
    24  home education program. When the provision of services is agreed
    25  to by both the supervisor and the [school district or
    26  intermediate unit] Department of Education, all services shall
    27  be provided in the public schools or in a private school
    28  licensed to provide such programs and services.
    29     Section 5.  Section 1371 of the act, amended June 30, 1995
    30  (P.L.220, No.26), is reenacted and amended to read:
    20020H2615B4071                  - 5 -

     1     Section 1371.  Definition of Children with Exceptionalities[;
     2  Reports; Examination.--(1)] and Reports.--(a)  The term
     3  "children with exceptionalities" shall mean children of school
     4  age who have a disability or who are gifted and who, by reason
     5  thereof, need specially designed instruction.
     6     [(2)] (b)  It shall be the duty of the district
     7  superintendent, in every school district in accordance with
     8  rules of procedure prescribed by the Secretary of Education, to
     9  secure information and report to the Department of Education and
    10  the intermediate unit serving that school district, on or before
    11  the fifteenth day of October of each year, and thereafter as
    12  cases arise, every child with exceptionalities within said
    13  district.
    14     (c)  A report shall be made to the Department of Education of
    15  all children determined to need special education services or
    16  programs consistent with [chapter 14 of] regulations of the
    17  State Board of Education Regulations[, as well as chapter 342 of
    18  Department Standards] set forth in 22 Pa. Code Ch. 14 (relating
    19  to special education services and programs).
    20     Section 6.  Section 1372 of the act, amended or added January
    21  14, 1970 (1969 P.L.468, No.192), August 24, 1977 (P.L.199,
    22  No.59), July 8, 1989 (P.L.253, No.43) and May 10, 2000 (P.L.44,
    23  No.16), is amended to read:
    24     Section 1372.  Exceptional Children; Education and
    25  Training.--[(1)  Standards for Proper Education and Training of
    26  Exceptional Children.](a)  The State Board of Education shall
    27  adopt and prescribe standards and regulations for the proper
    28  education and training of all exceptional children by the
    29  Department of Education, intermediate units or school districts
    30  [or counties singly or jointly].
    20020H2615B4071                  - 6 -

     1     (b)  There is hereby established within the administrative
     2  structure of the Department of Education an Office of Special
     3  Education which shall be under the supervision and direction of
     4  the Deputy Secretary for Special Education. The Office of
     5  Special Education shall have the following powers and duties:
     6     (1)  To oversee all special education services and programs
     7  provided within this Commonwealth.
     8     (2)  To provide for the school year 2003-2004, and each
     9  school year thereafter, the education for all exceptional
    10  students with disabilities. In carrying out this responsibility,
    11  the office shall cooperate with and utilize intermediate units.
    12  The office may also use approved private schools and private
    13  contractors to provide the necessary education. In all cases,
    14  the office shall strive to provide the best possible educational
    15  experience for the exceptional student with the least disruption
    16  to the current education plan and experience.
    17     (3)  To examine all exceptional students with disabilities to
    18  determine whether or not such students meet the necessary
    19  standards and qualifications of the State Board of Education to
    20  qualify as an exceptional student with a disability. Any
    21  determination under this paragraph is an administrative
    22  determination under 2 Pa.C.S. (relating to administrative law
    23  and procedure) and subject to review by the Commonwealth Court.
    24     (4)  In cooperation with the public and private providers, to
    25  develop individual education plans for each exceptional student
    26  with a disability.
    27     (5)  To pay all costs associated with the education of
    28  exceptional students with disabilities.
    29     (c)  The Department of [Public Instruction] Education shall
    30  have power, and it shall be its duty, to determine the [counties
    20020H2615B4071                  - 7 -

     1  which shall be joined for the purpose of providing] proper
     2  education and training of exceptional children who have any
     3  disabilities. Standards and regulations shall recognize such
     4  factors as [number of exceptional children, types of handicaps,
     5  facility of transportation, adequacy of existing provisions for
     6  exceptional children, and availability of school plant
     7  facilities.]:
     8     (1)  The number of exceptional children with disabilities.
     9     (2)  The types of handicaps.
    10     (3)  The facility of transportation.
    11     (4)  The adequacy of existing provisions for exceptional
    12  children with disabilities.
    13     (5)  The current Federal and State statutory and decisional
    14  law affecting the education of exceptional children with
    15  disabilities.
    16     (6)  The need to place exceptional children in the least
    17  restrictive setting necessary to provide education.
    18     (7)  The necessity to minimize and, if possible, eliminate
    19  any disruption to the educational program for any exceptional
    20  children with disabilities.
    21     (8)  The availability of adequate plant facilities.
    22     [(1.1)  Revision of Standards for Education and Training of
    23  Exceptional Children. During the school year 1989-1990 the
    24  following provisions shall apply to the State Board of
    25  Education:
    26     (i)  Not later than March 1, 1990, the State Board of
    27  Education shall adopt revised Chapter 13 Special Education
    28  regulations and approve revised 22 Pa. Code Ch. 341 department
    29  standards for the education and training of exceptional
    30  children, and such revised regulations and standards shall be
    20020H2615B4071                  - 8 -

     1  effective beginning with the school year and fiscal year 1990-
     2  1991. Such revised regulations and standards shall, at a
     3  minimum, provide measures as may be necessary to assure fiscal
     4  accountability, prudent management, appropriate education
     5  support services and special classes to meet the needs of
     6  pupils, and assurance of continued service to children receiving
     7  special education instruction and services on the effective date
     8  of such revised regulations and standards, including a
     9  requirement that no changes in such instruction or service be
    10  made unless through changes in the child's Individualized
    11  Education Program.
    12     (ii)  Due to the urgent need for an expedited but public
    13  regulatory process, the State Board of Education, in adopting
    14  such revised regulations and approving such revised department
    15  standards, shall follow the procedures set forth in this
    16  subsection.
    17     (A)  The State Board of Education shall conduct such public
    18  hearings and receive such testimony as it deems appropriate,
    19  provided, however, that the State Board of Education conduct at
    20  least three public hearings prior to the final adoption of such
    21  revised regulations and approval of such revised department
    22  standards. Not later than November 10, 1989, at the time the
    23  State Board of Education announces its intention to adopt such
    24  revised regulations and to approve such revised department
    25  standards, it shall announce its intention pursuant to the
    26  provisions of the act of July 31, 1968 (P.L.769, No.240),
    27  referred to as the Commonwealth Documents Law, and shall
    28  transmit copies of such proposed regulations and standards to
    29  the chairmen of the standing Committees on Education of the
    30  Senate and House of Representatives to permit those committees
    20020H2615B4071                  - 9 -

     1  thirty (30) days to review and comment upon such proposed
     2  regulations and standards. At the time the State Board finally
     3  adopts such final form regulations and approves such revised
     4  department standards, it shall transmit copies of such
     5  regulations and standards to the chairmen of the standing
     6  Committees on Education of the Senate and House of
     7  Representatives and the Independent Regulatory Review
     8  Commission. The final form regulations and revised department
     9  standards shall be subject to review in accordance with the
    10  procedures set forth in the act of June 25, 1982 (P.L.633,
    11  No.181), known as the "Regulatory Review Act," for proposed
    12  final regulations. Other than as herein provided, regulations
    13  adopted pursuant to this paragraph shall not be subject to
    14  review under the "Regulatory Review Act."
    15     (B)  The State Board of Education may transmit to the
    16  Governor and the Secretary of Education recommendations, if any,
    17  for changes in statutes.
    18     (iii)  The Department of Education shall require the
    19  submission of appropriate program and fiscal data from the
    20  school districts and intermediate units in order to assist in
    21  the development of regulations and proposed program standards.
    22  Each school district and intermediate unit shall provide such
    23  data at such time and in such form as the department may
    24  require.
    25     (2)  Plans for Education and Training Exceptional Children.
    26  Each]
    27     (d)  (1)  For the school year 2002-2003, each intermediate
    28  unit, cooperatively with other intermediate units and with
    29  school districts shall prepare and submit to the [Superintendent
    30  of Public Instruction, on or before the first day of August, one
    20020H2615B4071                 - 10 -

     1  thousand nine hundred seventy for his] Department of Education
     2  for approval or disapproval, plans for the proper education and
     3  training of all exceptional children in accordance with the
     4  standards and regulations adopted by the State Board of
     5  Education. Plans as provided for in this section shall be
     6  subject to revision from time to time as conditions warrant,
     7  subject to the approval of the [Superintendent of Public
     8  Instruction.] Department of Education.
     9     (2)  For the 2003-2004 school year and each school year
    10  thereafter, the Department of Education shall have the sole
    11  power and duty to provide for the education of exceptional
    12  students with disabilities. The department, in cooperation with
    13  each intermediate unit shall prepare and submit plans for the
    14  proper education and training of all exceptional children with
    15  disabilities in accordance with the standards and regulations of
    16  the State Board of Education. Plans under this paragraph shall
    17  be subject to periodic revisions as conditions warrant.
    18     (3)  For the 2003-2004 school year and each school year
    19  thereafter, each school district shall prepare and submit to the
    20  department plans for the proper education and training of all
    21  exceptional children who are gifted in accordance with the
    22  standards and regulations of the State Board of Education. Plans
    23  under this paragraph shall be subject to periodic revisions as
    24  conditions warrant.
    25     [(3)  Special Classes or Schools Established and Maintained
    26  by School Districts.]
    27     (e)  (1)  Except as herein otherwise provided, it shall be
    28  the duty of the board of school directors of every school
    29  district to provide and maintain, or to jointly provide and
    30  maintain with neighboring districts, special classes or schools
    20020H2615B4071                 - 11 -

     1  in accordance with the approved plan[.] for exceptional children
     2  who are gifted.
     3     (2)  Except as otherwise provided, it shall be the duty of
     4  the Department of Education in cooperation with the various
     5  intermediate units either alone or jointly to provide and
     6  maintain classes or schools for exceptional children who have
     7  disabilities. In providing these classes or schools, the
     8  department may use intermediate units, school districts, in-
     9  house staff or private contractors to provide the education.
    10     (3)  The Secretary of Education shall superintend the
    11  organization of such special classes and such other arrangements
    12  for special education and shall enforce the provisions of this
    13  act relating thereto. If the approved plan indicates that it is
    14  not feasible to form a special class in any district or
    15  intermediate unit or to provide such education for any such
    16  child in the public schools of the district or the intermediate
    17  unit, the [board of school directors of the district] department
    18  shall secure such proper education and training outside the
    19  public schools [of the district] or in special institutions, or
    20  by providing for teaching the child in his home, in accordance
    21  with rules and regulations prescribed by the [Department of]
    22  State Board of Education, on terms and conditions not
    23  inconsistent with the terms of this act or of any other act then
    24  in force applicable to such children. [However, the institution
    25  of special classes and programs at the secondary level for
    26  exceptional children who are gifted and talented students may be
    27  deferred until September 1978 at the discretion of the board of
    28  the school directors of any school district.]
    29     (f)  In addition to the [above] requirements of subsections
    30  (b), (c) and (d) and in accordance with rules and regulations
    20020H2615B4071                 - 12 -

     1  prescribed by the Department of Education, homebound instruction
     2  shall be provided for children confined in detention homes as
     3  provided in section 7, act of June 2, 1933 (P.L.1433, No.311),
     4  as amended, for the period of their confinement, if their
     5  confinement exceeds or is expected to exceed ten days, even
     6  though such children are not exceptional.
     7     [(4)  Classes for Exceptional Children.  The] (g) The
     8  department, in cooperation with the intermediate unit shall have
     9  power, and it shall be its duty, to provide, maintain,
    10  administer, supervise and operate such [additional] classes or
    11  schools as are necessary or to otherwise provide for the proper
    12  education and training for all exceptional children who [are not
    13  enrolled in classes or schools maintained and operated by school
    14  districts or who are not otherwise provided for] have
    15  disabilities.
    16     [(5)  Day-Care Training Centers, Classes and Schools for the
    17  Proper Education and Training of Exceptional Children.] (h)
    18  Where in the judgment of the [Superintendent of Public
    19  Instruction] Secretary of Education, the provisions of this act
    20  relating to the proper education and training of exceptional
    21  children with disabilities have not been complied with or the
    22  needs of exceptional children with disabilities are not being
    23  adequately served, the Department of [Public Instruction]
    24  Education is hereby authorized to provide, including the payment
    25  of rental when necessary, maintain, administer, supervise and
    26  operate classes and schools for the proper education and
    27  training of exceptional children with disabilities. Pupil
    28  eligibility for enrollment in classes for exceptional children
    29  shall be determined according to standards and regulations
    30  promulgated by the State Board of Education. For each child
    20020H2615B4071                 - 13 -

     1  enrolled in any special class or school for exceptional children
     2  [operated by the Department of Public Instruction, the school
     3  district in which the child is resident shall pay to the
     4  Commonwealth, a sum equal to the "tuition charge per elementary
     5  pupil" or the "tuition charge per high school pupil" as
     6  determined for the schools operated by the district or by a
     7  joint board of which the district is a member, based upon the
     8  costs of the preceding school term as provided for in section
     9  two thousand five hundred sixty-one of the act to which this is
    10  an amendment plus a sum equal to ten (10) per centum of such
    11  tuition charges. In the event that any school district has not
    12  established such "tuition charge per elementary pupil" or
    13  "tuition charge per high school pupil," the Superintendent of
    14  Public Instruction shall fix a reasonable charge for such
    15  district for the year in question. In order to facilitate such
    16  payments by the several school districts, the Superintendent of
    17  Public Instruction shall withhold from any moneys due to such
    18  district out of any State appropriation, except from
    19  reimbursement due on account of rentals as provided in section
    20  two thousand five hundred eleven point one of the act to which
    21  this is an amendment, the amounts due by such school districts
    22  to the Commonwealth. All amounts so withheld are hereby
    23  specifically appropriated to the Department of Public
    24  Instruction for the maintenance and administration of centers
    25  and classes for exceptional children] with disabilities the
    26  Department of Education shall be responsible for all costs.
    27     [(6)  Pupils Credited to District of Residence. The average
    28  daily membership of pupils enrolled in classes and schools for
    29  exceptional children, operated by an intermediate unit or by the
    30  Department of Public Instruction, shall be credited to the
    20020H2615B4071                 - 14 -

     1  school district of residence for the purpose of determining the
     2  district's "teaching units" to be used in calculating the
     3  district's reimbursement fractions or weighted average daily
     4  membership to be used in calculating a district's aid ratio and
     5  in determining payments to the district on account of
     6  instruction as provided in section two thousand five hundred two
     7  of the act to which this is an amendment.
     8     (8)  Reporting of Expenditures Relating to Exceptional
     9  Students.] (i)  By December 31, 2000, and each year thereafter,
    10  each school district and each intermediate unit shall compile
    11  information listing the number of students with disabilities for
    12  which expenditures are between twenty-five thousand dollars
    13  ($25,000) and fifty thousand dollars ($50,000), between fifty
    14  thousand dollars ($50,000) and seventy-five thousand dollars
    15  ($75,000) and over seventy-five thousand dollars ($75,000) for
    16  the prior school year. The information shall be submitted to the
    17  department in a form prescribed by the department. By February
    18  1, 2001, and each year thereafter, the department shall submit
    19  to the chairman and minority chairman of the Education and
    20  Appropriations Committees of the Senate and the chairman and
    21  minority chairman of the Education and Appropriations Committees
    22  of the House of Representatives a report listing this
    23  information by school district and intermediate unit.
    24     Section 7.  Section 1373 of the act, amended October 21, 1965
    25  (P.L.601, No.312), is amended to read:
    26     Section 1373.  State Reimbursement; Reports.--(a)  School
    27  districts maintaining special classes in the public schools or
    28  special public schools or providing special education, as
    29  specified in this subdivision of this article, shall receive
    30  reimbursement up to and through the school year 2002-2003, as
    20020H2615B4071                 - 15 -

     1  provided by this act, so long as such classes, such schools, and
     2  such special education are approved by the Department of [Public
     3  Instruction] Education as to location, constitution and size of
     4  classes, conditions of admission and discharge of pupils,
     5  equipment, courses of study, methods of instruction and
     6  qualification of teachers. Beginning with the school year 2003-
     7  2004, and each school year thereafter, the Commonwealth shall
     8  have the duty through the intermediate units to provide for the
     9  education of all exceptional children with disabilities. All
    10  costs shall be paid by the Commonwealth.
    11     (b)  On or before the first day of November of each year, the
    12  secretary of the board of school directors in each district in
    13  which special education for exceptional children is provided
    14  shall make such reports as may be required by the Department of
    15  [Public Instruction] Education, in regard to such special
    16  education being maintained for the current school year for which
    17  approval is desired.
    18     Section 8.  Section 1376 of the act, amended June 7, 1993
    19  (P.L.49, No.16), June 30, 1995 (P.L.220, No.26) and June 22,
    20  2001 (P.L.530, No.35), is amended to read:
    21     Section 1376.  Cost of Tuition and Maintenance of Certain
    22  Exceptional Children in Approved Institutions.--(a)  When any
    23  child between school entry age and twenty-one (21) years of age
    24  and resident in this Commonwealth, who is blind or deaf, or has
    25  cerebral palsy and/or neurological impairment and/or muscular
    26  dystrophy and/or is mentally retarded and/or has a serious
    27  emotional disturbance and/or has autism/pervasive developmental
    28  disorder and is enrolled, with the approval of the Department of
    29  Education, as a pupil in an approved private school approved by
    30  the Department of Education, in accordance with standards and
    20020H2615B4071                 - 16 -

     1  regulations promulgated by the State Board of Education, the
     2  [school district in which such child is resident or, for
     3  students placed by a charter school, the charter school in which
     4  the student was enrolled shall pay the greater of either twenty
     5  per centum (20%) of the actual audited cost of tuition and
     6  maintenance of such child in such school, as determined by the
     7  Department of Education, or its "tuition charge per elementary
     8  pupil" or its "tuition charge per high school pupil," as
     9  calculated pursuant to section 2561, and the] Commonwealth shall
    10  pay, out of funds appropriated to the department for special
    11  education, the [balance due for the costs of such child's
    12  tuition and maintenance, as determined by the department. For
    13  the school years 1989-1990, 1990-1991 and 1991-1992, the school
    14  district payment shall be no greater than forty percent (40%) of
    15  the actual audited costs of tuition and maintenance of such
    16  child in such school. For the 1992-1993 school year and each
    17  school year thereafter, the school district or charter school
    18  payment shall be the greater of forty percent (40%) of the
    19  actual audited costs of tuition and maintenance of such child in
    20  such school, as determined by the Department of Education, or
    21  its "tuition charge per elementary pupil" or its "tuition charge
    22  per high school pupil," as calculated pursuant to section 2561,
    23  and the Commonwealth shall pay, out of funds appropriated to the
    24  department for approved private schools, the balance due for the
    25  costs of such child's tuition and maintenance, as determined by
    26  the department. The department will credit the district of
    27  residence with average daily membership for such child
    28  consistent with the rules of procedure developed in accordance
    29  with section 2501. If the residence of such child in a
    30  particular school district cannot be determined, the
    20020H2615B4071                 - 17 -

     1  Commonwealth shall pay, out of moneys appropriated to the
     2  department for special education, the] whole cost of tuition and
     3  maintenance of such child. The Department of Education shall be
     4  provided with such financial data from approved private schools
     5  as may be necessary to determine the reasonableness of costs for
     6  tuition and room and board concerning Pennsylvania resident
     7  approved reimbursed students. The Department of Education shall
     8  evaluate such data and shall disallow any cost deemed
     9  unreasonable. Any costs deemed unreasonable by the Department of
    10  Education for disallowance shall be considered an adjudication
    11  within the meaning of Title 2 of the Pa.C.S. (relating to
    12  administrative law and procedure) and regulations promulgated
    13  thereunder.
    14     (b)  When any person less than school entry age or more than
    15  twenty-one (21) years of age and resident in this Commonwealth,
    16  who is blind or deaf, or has cerebral palsy and/or has
    17  neurological impairment and/or has muscular dystrophy, or has
    18  autism/pervasive developmental delay, and is enrolled, with the
    19  approval of the Department of Education, as a pupil in an
    20  approved private school approved by the Department of Education,
    21  the Commonwealth shall pay to such school, out of moneys
    22  appropriated to the department for special education, the actual
    23  audited cost of tuition and maintenance of such person, as
    24  determined by the Department of Education, subject to review and
    25  approval in accordance with standards and regulations
    26  promulgated by the State Board of Education, and in addition, in
    27  the case of any child less than school entry age, who is blind,
    28  the cost, as determined by the Department of Education of
    29  instructing the parent of such blind child in caring for such
    30  child.
    20020H2615B4071                 - 18 -

     1     (c)  Each approved private school, prior to the start of the
     2  school year, shall submit to the department such information as
     3  the department may require in order to establish an estimate of
     4  reimbursable costs. Based upon this information, any other data
     5  deemed necessary by the department and in accordance with
     6  department standards, the department shall develop for each
     7  approved private school an estimate of reimbursable costs. Based
     8  upon such estimate, the department shall provide each approved
     9  private school with monthly payments in advance of department
    10  audit. The department may withhold a portion of such payments
    11  not exceeding five percent (5%) of such payment, pending final
    12  audit. In no event shall either the advance payments or final
    13  reimbursement made by the department following audit exceed the
    14  appropriation available for approved private schools.
    15     (c.1)  Any funds remaining from the appropriation line items
    16  "for special education - approved private schools" or for
    17  Pennsylvania Charter Schools for the Deaf and Blind from the
    18  general appropriations acts for fiscal years 1978-1979 and each
    19  fiscal year thereafter shall be transferred by the State
    20  Treasurer into a restricted account (continuing appropriation)
    21  for audit resolution which is hereby established. The Department
    22  of Education shall also deposit into this restricted account any
    23  funds returned to or recovered by the department from approved
    24  private schools or chartered schools for overpayments during
    25  fiscal years 1978-1979 and each fiscal year thereafter. The
    26  funds in the restricted account are hereby appropriated upon
    27  approval of the Governor to the Department of Education for
    28  payments to approved private schools for audit resolutions for
    29  fiscal years 1978-1979 and each fiscal year thereafter. Funds in
    30  this restricted account shall not be subject to the limitations
    20020H2615B4071                 - 19 -

     1  in subsection (c) which prohibit advance payments and final
     2  reimbursement from exceeding the appropriation available for
     3  approved private schools. During the 1995-1996 fiscal year and
     4  during each fiscal year thereafter, the Department of Education
     5  shall review the activity in the restricted account and may
     6  recommend that the Governor authorize the lapsing into the
     7  General Fund of any funds that are estimated not to be needed
     8  for audit resolution.
     9     (d)  No private institution receiving payment in accordance
    10  with this section shall impose any charge on the student and/or
    11  parents who are Pennsylvania approved reimbursable residents for
    12  a program of individualized instruction and maintenance
    13  appropriate to the child's needs; except that charges for
    14  services not part of such program may be made if agreed to by
    15  the parents.
    16     [(e)  (1)  The Education Committees of the Senate and House
    17  of Representatives are directed to jointly examine the issues of
    18  the funding of approved private schools and special education
    19  students' access to approved private schools as part of the full
    20  continuum of special education placements. The committees'
    21  examination should address, at a minimum, the following issues:
    22     (i)  The funding methodology which supports the school
    23  district's responsibility for individualized, appropriate
    24  educational services to special education students through
    25  access to the most comprehensive continuum of educational
    26  options and settings.
    27     (ii)  The role of the approved private school in the mandated
    28  continuum of special education services available to students in
    29  Pennsylvania.
    30     (iii)  The relative roles of the Department of Education and
    20020H2615B4071                 - 20 -

     1  school districts to ensure free appropriate public education
     2  (FAPE) through adequate funding and appropriate distribution of
     3  comprehensive services.
     4     (iv)  The provisions of the Individuals with Disabilities
     5  Education Act (IDEA) (P.L.101-476), the Cordero Court Orders,
     6  this act and 22 Pa. Code Chs. 14 and 342 as they relate to the
     7  provision of programs and services to special education students
     8  should be carefully reviewed as they pertain to approved private
     9  schools, continuum of placement options, funding, FAPE and other
    10  pertinent issues.
    11     (2)  The committees shall report back to the General Assembly
    12  by November 15, 1993, with legislative and/or administrative
    13  recommendations. The committees may hold such meetings and
    14  hearings as they deem appropriate to accomplish the provisions
    15  of this subsection.]
    16     Section 9.  Section 1376.1 of the act, amended June 7, 1993
    17  (P.L.49, No.16), is amended to read:
    18     Section 1376.1.  Actual Cost of Tuition and Maintenance of
    19  Certain Exceptional Children in the Four Chartered Schools for
    20  Education of the Deaf and the Blind.--(a)  The following term,
    21  whenever used or referred to in this section, shall have the
    22  following meaning. "Chartered school" shall mean any of the four
    23  (4) chartered schools for the education of the deaf or the
    24  blind: the Pennsylvania School for the Deaf; the Overbrook
    25  School for the Blind; the Western Pennsylvania School for Blind
    26  Children; and the Western Pennsylvania School for the Deaf.
    27     (b)  When any child of school age resident in this
    28  Commonwealth, who is blind or deaf, is enrolled with the
    29  approval of the Department of Education as a pupil in any of the
    30  four (4) chartered schools in accordance with standards and
    20020H2615B4071                 - 21 -

     1  regulations promulgated by the State Board of Education, the
     2  [school district in which such child is resident shall pay the
     3  greater of either twenty percent (20%) of the actual cost of
     4  tuition and maintenance of such child in such institution, as
     5  determined by the Department of Education; or its "tuition
     6  charge per elementary pupil" or its "tuition charge per high
     7  school pupil," and the Commonwealth shall pay, out of funds
     8  appropriated to the department for special education, the
     9  balance due for the costs of such child's tuition and
    10  maintenance, as determined by the department. For the school
    11  years 1989-90, 1990-91 and 1991-92, the school district payment
    12  shall be no greater than forty percent (40%) of the actual
    13  audited costs of tuition and maintenance of such child in such
    14  school. For the 1992-1993 school year and each school year
    15  thereafter, the school district payment shall be the greater of
    16  forty percent (40%) of the actual audited costs of tuition and
    17  maintenance of such child in such school, as determined by the
    18  Department of Education, or its "tuition charge per elementary
    19  pupil" or its "tuition charge per high school pupil," and the
    20  Commonwealth shall pay out of funds appropriated to the
    21  department for chartered schools the balance due for the costs
    22  of such child's tuition and maintenance, as determined by the
    23  department. The department will credit the district of residence
    24  with average daily membership for such child consistent with the
    25  rules of procedure developed in accordance with section 2501. If
    26  the residence of such child in a particular school district
    27  cannot be determined, the] Commonwealth shall pay, out of moneys
    28  appropriated to the department for special education, the whole
    29  cost of tuition and maintenance of such child. The Department of
    30  Education shall be provided with such financial data from each
    20020H2615B4071                 - 22 -

     1  of the chartered schools as may be necessary to determine the
     2  reasonableness of charges for tuition and room and board of each
     3  of the chartered schools made on Pennsylvania resident approved
     4  students. The Department of Education shall evaluate such data
     5  and shall disallow any charges deemed unreasonable. Any charge
     6  deemed unreasonable by the Department of Education for
     7  disallowance shall be considered an adjudication within the
     8  meaning of Title 2 of the Pa.C.S. (relating to administrative
     9  law and procedure) and regulations promulgated thereunder.
    10     (c)  When any person less than school age resident in this
    11  Commonwealth who is blind or deaf is enrolled, with the approval
    12  of the Department of Education, as a residential pupil in any of
    13  the four (4) chartered schools, the Commonwealth shall pay to
    14  the school, out of moneys appropriated to the department for
    15  special education, the actual cost of tuition and maintenance of
    16  such person, as determined by the Department of Education,
    17  subject to review and approval in accordance with standards and
    18  regulations promulgated by the State Board of Education, and in
    19  addition, in the case of any child less than school age, who is
    20  blind, the cost, as determined by the Department of Education of
    21  instructing the parent of such blind child in caring for such
    22  child.
    23     (d)  None of the chartered schools receiving payment in
    24  accordance with this section shall impose any charge on the
    25  student and/or parents who are approved reimbursable residents
    26  for a program of instruction and maintenance appropriate to the
    27  child's needs; except that charges for programs not part of the
    28  normal school year may be made.
    29     Section 10.  Section 1377 of the act, amended or added May
    30  31, 1979 (P.L.33, No.11), December 17, 1982 (P.L.1378, No.316)
    20020H2615B4071                 - 23 -

     1  and July 8, 1989 (P.L.253, No.43), is amended to read:
     2     Section 1377.  Payment of Cost of Tuition and Maintenance of
     3  Certain Exceptional Children.--(a)  [To facilitate payments by
     4  the several school districts to the schools or institutions in
     5  which deaf or blind, or cerebral palsied and/or brain damaged
     6  and/or muscular dystrophied, or socially and emotionally
     7  disturbed or mentally retarded children are enrolled, of amounts
     8  due by such districts for their proportion of the cost of
     9  tuition and maintenance of such children, the Secretary of
    10  Education shall withhold from any moneys due to such districts
    11  out of any State appropriation for the assistance as
    12  reimbursement of school districts, the amounts due by such
    13  districts to such schools or institutions for the blind or the
    14  deaf, or the cerebral palsied and/or brain damaged and/or
    15  muscular dystrophied or the socially and emotionally disturbed
    16  and/or mentally retarded. Amounts so withheld shall be
    17  specifically appropriated to the Department of Education.] The
    18  Commonwealth shall pay the whole cost of tuition and maintenance
    19  of any child subject to the provisions of sections 1376 and
    20  1376.1.
    21     (b)  Payments of the Commonwealth's [proportion of the] cost
    22  of tuition and maintenance of blind or deaf, or cerebral palsied
    23  and/or brain damaged and/or muscular dystrophied, or socially
    24  and emotionally disturbed and/or mentally retarded pupils
    25  enrolled in schools or institutions for the blind or for the
    26  deaf, or for the cerebral palsied and/or brain damaged and/or
    27  muscular dystrophied, or for the socially and emotionally
    28  disturbed and of the cost of instruction of parents of blind
    29  pupils less than school entry age, as hereinbefore provided,
    30  shall be made quarterly, out of moneys appropriated to the
    20020H2615B4071                 - 24 -

     1  Department of Education for special education. Except for the
     2  provisions of section 1376.1 providing for the actual cost of
     3  tuition and maintenance of certain exceptional children in the
     4  four chartered schools for education of the deaf and of the
     5  blind, in no event shall the total payment for the cost of
     6  tuition and maintenance of any such child exceed the rates per
     7  year allowed under section 1376. The maximum amount payable for
     8  the cost of tuition and maintenance of such children shall be
     9  subject to review at least once every two years for the purpose
    10  of recommending an adjustment thereof.
    11     (c)  For the purpose of enabling the Department of Education
    12  to determine from time to time what amounts are due to schools
    13  for the blind or for the deaf or for the cerebral palsied and/or
    14  brain damaged and/or muscular dystrophied or for the socially
    15  and emotionally disturbed and/or mentally retarded hereunder,
    16  such schools shall forward to the department, at such times and
    17  in such form as the department shall prescribe, sworn statements
    18  setting forth the names, ages, and residences of all pupils
    19  enrolled hereunder, specifying the school districts [liable for
    20  a part of the cost of tuition and maintenance] of any such
    21  pupils, the per capita cost of and maintenance of pupils, and
    22  such other information as the department shall require.
    23     (c.1)  For the purpose of providing adequate administration
    24  of the program and to carry out the preaudit functions
    25  authorized in section 1376(a), one-half of one percent (.50%) of
    26  the total appropriations for approved private schools from all
    27  funds shall be allocated to the Department of Education.
    28     [(d)  When, during the course of the 1982-1983 school year,
    29  programs for exceptional children are caused to be transferred
    30  from schools or institutions for the blind or deaf, or cerebral
    20020H2615B4071                 - 25 -

     1  palsied or brain damaged or muscular dystrophied or mentally
     2  retarded, or socially and emotionally disturbed, as provided for
     3  in sections 1376 and 1376.1, to school districts or intermediate
     4  units, as provided for in sections 2509 and 2509.1, under
     5  unanticipated or emergency circumstances, and when such
     6  transfers necessitate the transfer of funds from the
     7  appropriation to the Department of Education for special
     8  education for approved private schools to the appropriation to
     9  the Department of Education for payments on account of special
    10  education of exceptional children in public schools, the
    11  Secretary of Education shall be empowered so to transfer such
    12  funds, upon approval of the Secretary of the Budget and written
    13  notification to the State Treasurer and the chairmen of the
    14  House and Senate Appropriations and Education Committees.]
    15     Section 11.  Section 1725-A(a) of the act, added June 19,
    16  1997 (P.L.225, No.22), is amended to read:
    17     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
    18  for a charter school shall be provided in the following manner:
    19     (1)  There shall be no tuition charge for a resident or
    20  nonresident student attending a charter school.
    21     (2)  For non-special education students, the charter school
    22  shall receive for each student enrolled no less than the
    23  budgeted total expenditure per average daily membership of the
    24  prior school year, as defined in section 2501(20), minus the
    25  budgeted expenditures of the district of residence for nonpublic
    26  school programs; adult education programs; community/junior
    27  college programs; student transportation services; for special
    28  education programs; facilities acquisition, construction and
    29  improvement services; and other financing uses, including debt
    30  service and fund transfers as provided in the Manual of
    20020H2615B4071                 - 26 -

     1  Accounting and Related Financial Procedures for Pennsylvania
     2  School Systems established by the department. This amount shall
     3  be paid by the district of residence of each student.
     4     (3)  For special education students without disabilities, the
     5  charter school shall receive for each student enrolled the same
     6  funding as for each non-special education student as provided in
     7  clause (2), plus an additional amount determined by dividing the
     8  district of residence's total special education expenditure for
     9  students without disabilities by the product of multiplying the
    10  combined percentage of section 2509.5(k) times the district of
    11  residence's total average daily membership for the prior school
    12  year. This amount shall be paid by the district of residence of
    13  each special education student without disabilities.
    14     (3.1)  For special education students with disabilities who
    15  are required to be educated by the Department of Education and
    16  the department agrees in writing that the charter school may
    17  provide the education, the charter school shall receive for each
    18  student enrolled the same funding as provided to other providers
    19  or contractors by the Commonwealth.
    20     (4)  A charter school may request the intermediate unit in
    21  which the charter school is located to provide services to
    22  assist the charter school to address the specific needs of
    23  exceptional students. The intermediate unit shall assist the
    24  charter school and bill the charter school for the services. The
    25  intermediate unit may not charge the charter school more for any
    26  service than it charges the constituent districts of the
    27  intermediate unit.
    28     (5)  Payments shall be made to the charter school in twelve
    29  (12) equal monthly payments, by the fifth day of each month,
    30  within the operating school year. A student enrolled in a
    20020H2615B4071                 - 27 -

     1  charter school shall be included in the average daily membership
     2  of the student's district of residence for the purpose of
     3  providing basic education funding payments and special education
     4  funding pursuant to Article XXV. If a school district fails to
     5  make a payment to a charter school as prescribed in this clause,
     6  the secretary shall deduct the amount, as documented by the
     7  charter school, from any and all State payments made to the
     8  district after receipt of documentation from the charter school.
     9     * * *
    10     Section 12.  Section 2509 of the act is amended by adding a
    11  subsection to read:
    12     Section 2509.  Payments on Account of Courses for Exceptional
    13  Children.--* * *
    14     (g) (1)  Except as provided in clause (2), the last school
    15  year for payments to school districts under this section for
    16  exceptional children with disabilities shall be for the school
    17  year 2002-2003. Thereafter payments for the education of
    18  exceptional children with disabilities shall be made to
    19  intermediate units by the Commonwealth.
    20     (2)  Payments under this section shall continue to be made to
    21  school districts for the education of exceptional children
    22  without disabilities.
    23     Section 13.  Section 2509.1(g) of the act, amended June 30,
    24  1998 (P.L.220, No.260), is amended to read:
    25     Section 2509.1.  Payments to Intermediate Units.--* * *
    26     (g)  (1)  For the 1991-1992 school year and each school year
    27  thereafter, for each child enrolled in an intermediate unit
    28  class for institutionalized children, the school district in
    29  which the child is resident shall pay to the Commonwealth a sum
    30  equal to the "tuition charge per elementary pupil" or the
    20020H2615B4071                 - 28 -

     1  "tuition charge per high school pupil," as determined for the
     2  schools operated by the district or by a joint board of which
     3  the district is a member, for the same year in which the class
     4  or school is operated, as provided for in section 2561. In the
     5  event that any school district has not established such "tuition
     6  charge per elementary pupil" or "tuition charge per high school
     7  pupil," the Secretary of Education shall fix a reasonable charge
     8  for such district for the year in question.
     9     (2)  In addition, the district shall pay to the Commonwealth
    10  on account of transportation by the intermediate unit of pupils
    11  to and from classes and schools for exceptional children who are
    12  gifted and of eligible young children to and from early
    13  intervention programs, whether or not conducted by the
    14  intermediate unit, an amount to be determined by subtracting
    15  from the cost of transportation per pupil the reimbursement due
    16  the district on account of such transportation. The Commonwealth
    17  shall pay all costs associated with the transportation of
    18  exceptional children with disabilities.
    19     (3)  In order to facilitate such payments by the several
    20  school districts, the Secretary of Education shall withhold from
    21  any moneys due to such districts out of a State appropriation,
    22  except from reimbursements due on account of rentals, the
    23  amounts due by such school districts to the Commonwealth. All
    24  amounts so withheld are hereby specifically appropriated to the
    25  Department of Education for the support of public schools.
    26     Section 14.  Section 2509.4 of the act, added July 8, 1989
    27  (P.L.253, No.43), is amended to read:
    28     [Section 2509.4.  Payments on Account of Special Education
    29  Services.--(a)  For the school year 1989-1990, the following
    30  provisions shall apply to the Commonwealth's payments of funds
    20020H2615B4071                 - 29 -

     1  to school districts and intermediate units for the provisions of
     2  special education services.
     3     (1)  On or before the first day of August, the Commonwealth
     4  shall pay to school districts and intermediate units an amount
     5  which represents fifty percent (50%) of the total State funds
     6  available for such programs operated in the school year 1989-
     7  1990.
     8     (2)  On January 1, 1990, a second payment shall be made to
     9  school districts and intermediate units consisting of one-fourth
    10  (1/4) of the total State funds available for such programs
    11  operated in the school year 1989-1990.
    12     (3)  If, by March 1, 1990, the State Board of Education has
    13  adopted revisions to Chapter 13 Special Education regulations
    14  and/or the 22 Pa. Code Ch. 341 standards, the final payment
    15  shall consist of the remaining State funds available for such
    16  programs operated in the school year 1989-1990. If, on March 1,
    17  1990, the State Board of Education has not adopted revisions to
    18  Chapter 13 Special Education regulations and/or 22 Pa. Code Ch.
    19  341 standards, but the Secretary of the Budget determines that
    20  sufficient progress has been made, a one-time waiver in order to
    21  make an additional payment of no more than one-eighth (1/8) of
    22  the total State funds available for such programs operated in
    23  the school year 1989-1990 may be made.
    24     (b)  From the funds appropriated in the 1989-1990 fiscal year
    25  and notwithstanding the provisions of subsection (a)(1), (2) and
    26  (3), fifty million dollars ($50,000,000) shall be paid on August
    27  1, 1989, to school districts for programs operated in school
    28  year 1988-1989 with the additional payment of forty-nine million
    29  dollars ($49,000,000) of the funds due the school districts for
    30  the programs operated in school year 1988-1989 to be paid on or
    20020H2615B4071                 - 30 -

     1  before December 1, 1989. Any adjustments to these payments may
     2  be made in June 1990 on the basis of actual data.]
     3     Section 15.  Section 2509.5 of the act is amended by adding a
     4  subsection to read:
     5     Section 2509.5.  Special Education Payments to School
     6  Districts.--* * *
     7     (gg) (1)  Except as provided in clause (2), the last school
     8  year for payments to school districts under this section for
     9  exceptional children with disabilities shall be for the school
    10  year 2002-2003. Thereafter payments for the education of
    11  exceptional children with disabilities shall be made to
    12  intermediate units by the Commonwealth.
    13     (2)  Payments under this section shall continue to be made to
    14  school districts for the education of exceptional children
    15  without disabilities.
    16     Section 16.  Section 2509.6 of the act, amended July 9, 1992
    17  (P.L.392, No.85), is amended to read:
    18     [Section 2509.6.  Average Cost Guarantee.--(a)  For the 1991-
    19  1992 school year, the dollars available to school districts for
    20  operating and administering classes for exceptional children
    21  shall be guaranteed at eight thousand five hundred five dollars
    22  ($8,505) per average daily membership for special education
    23  programs and services offered by school districts during the
    24  1990-1991 school year and ten thousand two hundred ninety
    25  dollars ($10,290) per average daily membership for special
    26  education programs and services offered by the intermediate unit
    27  during the 1990-1991 school year.
    28     (b)  The dollars available to school districts for operating
    29  and administering classes for exceptional children shall be the
    30  sum of the following: total average daily membership for
    20020H2615B4071                 - 31 -

     1  students receiving special education multiplied by the tuition
     2  charge pursuant to section 2561, plus the amount calculated
     3  pursuant to sections 2509(f) and 2509.5(b) and three times the
     4  district's payment to the Commonwealth for noninstitutionalized
     5  children's programs pursuant to section 2509.1(f).
     6     (c)  If the actual dollars available to a school district, as
     7  calculated pursuant to subsection (b), are less than the total
     8  guaranteed dollars available to a school district pursuant to
     9  subsection (a), then the Commonwealth shall pay to such school
    10  district funds equal to the amount of the difference between the
    11  total guaranteed dollars available pursuant to subsection (a)
    12  and the actual dollars available pursuant to subsection (b).]
    13     Section 17.  Section 2509.7 of the act, added August 5, 1991
    14  (P.L.219, No.25), is amended to read:
    15     [Section 2509.7.  Minimum Guarantee.--For the 1991-1992
    16  school year, each intermediate unit, in the aggregate, including
    17  the intermediate unit and its member school districts, shall
    18  receive at least a three and five-tenths percent (3.5%) increase
    19  in the aggregate revenue for special education over the
    20  aggregate cash amount available from the Commonwealth for
    21  special education during the 1990-1991 school year. The
    22  intermediate unit shall meet with its constituent school
    23  districts to develop a plan for the expenditure or distribution
    24  of the funds provided by this section for the purpose of the
    25  provision of special education programs and services. These
    26  funds may not be expended or distributed by the intermediate
    27  unit until a majority of the boards of directors of the
    28  constituent school districts have approved such expenditures or
    29  distribution. If the amount received under the provisions of
    30  this section is less than ten thousand dollars ($10,000), such
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     1  amount may be retained by the intermediate unit for the purpose
     2  of providing special education programs or services without the
     3  approval of its constituent school districts. For the purpose of
     4  computing the revenue available for the guarantee in this
     5  section, the Commonwealth shall include funds allocated pursuant
     6  to sections 2509(f) and 2509.5(b), plus an amount equal to three
     7  times the school district payment to the Commonwealth pursuant
     8  to section 2509.1(b) and the funds allocated pursuant to
     9  sections 2509.1(c), (d) and (f) and 2509.6.]
    10     Section 18.  This act shall take effect July 1, 2003.














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