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                                                       PRINTER'S NO. 499

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 40 Session of 2003


        INTRODUCED BY RUBLEY, GRUCELA, MELIO, STEIL, BASTIAN, CAPPELLI,
           CLYMER, CORRIGAN, COSTA, CREIGHTON, CRUZ, DALEY, FEESE,
           FLICK, FREEMAN, GODSHALL, HARHAI, HENNESSEY, HERMAN, HERSHEY,
           HORSEY, LEH, MARSICO, McNAUGHTON, PIPPY, ROSS, SAYLOR,
           B. SMITH, SOLOBAY, R. STEVENSON, TANGRETTI, E. Z. TAYLOR,
           THOMAS, TIGUE, VANCE, WALKO, WATSON, WILT, WRIGHT, YOUNGBLOOD
           AND YUDICHAK, FEBRUARY 25, 2003

        REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 25, 2003

                                     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     * * *
    19     (7)  To provide for and conduct programs of services

     1  authorized by the State Board of Education, including services
     2  performed under contract with component school districts. Except
     3  as otherwise provided by law, all powers and duties of county
     4  boards of school directors in regard to classes and schools for
     5  [exceptional children,] educational broadcasting, audio-visual
     6  libraries, instructional materials centers, area technical
     7  schools and area vocational-technical schools are hereby
     8  transferred to and conferred upon intermediate unit boards of
     9  directors. An intermediate unit may contract with school
    10  districts to provide services on behalf of the intermediate
    11  unit. An intermediate unit shall cooperate with the Department
    12  of Education in the provision of educational services for
    13  exceptional children with disabilities. An intermediate unit
    14  shall cooperate with component school districts which are
    15  primarily responsible in the provision of educational services
    16  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 in nonpublic schools
    29  who are gifted shall be provided by the intermediate unit.
    30  Special education services for exceptional children with
    20030H0040B0499                  - 2 -     

     1  disabilities shall be provided by the Department of Education
     2  through the intermediate unit. Before an intermediate unit makes
     3  any decision that affects the opportunities for children
     4  attending nonpublic schools to participate in the auxiliary
     5  services provided under this section, the intermediate unit
     6  shall consult with such nonpublic schools to determine at a
     7  minimum: which general categories of children shall receive
     8  services; what services shall be provided; how and where the
     9  services shall be provided; and how the services shall be
    10  evaluated. Such services shall be provided directly to the
    11  nonpublic school students by the intermediate unit in the
    12  schools which the students attend, in mobile instructional units
    13  located on the grounds of such schools or in any alternative
    14  setting mutually agreed upon by the school and the intermediate
    15  unit, to the extent permitted by the Constitution of the United
    16  States and the Constitution of the 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
    20030H0040B0499                  - 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.
    20030H0040B0499                  - 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:
    20030H0040B0499                  - 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].
    20030H0040B0499                  - 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 in accord with the
    29  following schedule:
    30     (i)  For the school year 2003-2004, twenty (20) per centum of
    20030H0040B0499                  - 7 -     

     1  the additional cost from the 2002-2003 school year.
     2     (ii)  For the school year 2004-2005, forty (40) per centum of
     3  the additional cost from the 2003-2004 school year.
     4     (iii)  For the school year 2005-2006, sixty (60) per centum
     5  of the additional cost from the 2004-2005 school year.
     6     (iv)  For the school year 2006-2007, eighty (80) per centum
     7  of the additional cost from the 2005-2006 school year.
     8     (v)  For the school year 2007-2008 and each school year
     9  thereafter, the entire cost for the education of exceptional
    10  children with disabilities.
    11     (c)  The Department of [Public Instruction] Education shall
    12  have power, and it shall be its duty, to determine the [counties
    13  which shall be joined for the purpose of providing] proper
    14  education and training of exceptional children who have any
    15  disabilities. Standards and regulations shall recognize such
    16  factors as [number of exceptional children, types of handicaps,
    17  facility of transportation, adequacy of existing provisions for
    18  exceptional children, and availability of school plant
    19  facilities.]:
    20     (1)  The number of exceptional children with disabilities.
    21     (2)  The types of handicaps.
    22     (3)  The facility of transportation.
    23     (4)  The adequacy of existing provisions for exceptional
    24  children with disabilities.
    25     (5)  The current Federal and State statutory and decisional
    26  law affecting the education of exceptional children with
    27  disabilities.
    28     (6)  The need to place exceptional children in the least
    29  restrictive setting necessary to provide education.
    30     (7)  The necessity to minimize and, if possible, eliminate
    20030H0040B0499                  - 8 -     

     1  any disruption to the educational program for any exceptional
     2  children with disabilities.
     3     (8)  The availability of adequate plant facilities.
     4     [(1.1)  Revision of Standards for Education and Training of
     5  Exceptional Children. During the school year 1989-1990 the
     6  following provisions shall apply to the State Board of
     7  Education:
     8     (i)  Not later than March 1, 1990, the State Board of
     9  Education shall adopt revised Chapter 13 Special Education
    10  regulations and approve revised 22 Pa. Code Ch. 341 department
    11  standards for the education and training of exceptional
    12  children, and such revised regulations and standards shall be
    13  effective beginning with the school year and fiscal year 1990-
    14  1991. Such revised regulations and standards shall, at a
    15  minimum, provide measures as may be necessary to assure fiscal
    16  accountability, prudent management, appropriate education
    17  support services and special classes to meet the needs of
    18  pupils, and assurance of continued service to children receiving
    19  special education instruction and services on the effective date
    20  of such revised regulations and standards, including a
    21  requirement that no changes in such instruction or service be
    22  made unless through changes in the child's Individualized
    23  Education Program.
    24     (ii)  Due to the urgent need for an expedited but public
    25  regulatory process, the State Board of Education, in adopting
    26  such revised regulations and approving such revised department
    27  standards, shall follow the procedures set forth in this
    28  subsection.
    29     (A)  The State Board of Education shall conduct such public
    30  hearings and receive such testimony as it deems appropriate,
    20030H0040B0499                  - 9 -     

     1  provided, however, that the State Board of Education conduct at
     2  least three public hearings prior to the final adoption of such
     3  revised regulations and approval of such revised department
     4  standards. Not later than November 10, 1989, at the time the
     5  State Board of Education announces its intention to adopt such
     6  revised regulations and to approve such revised department
     7  standards, it shall announce its intention pursuant to the
     8  provisions of the act of July 31, 1968 (P.L.769, No.240),
     9  referred to as the Commonwealth Documents Law, and shall
    10  transmit copies of such proposed regulations and standards to
    11  the chairmen of the standing Committees on Education of the
    12  Senate and House of Representatives to permit those committees
    13  thirty (30) days to review and comment upon such proposed
    14  regulations and standards. At the time the State Board finally
    15  adopts such final form regulations and approves such revised
    16  department standards, it shall transmit copies of such
    17  regulations and standards to the chairmen of the standing
    18  Committees on Education of the Senate and House of
    19  Representatives and the Independent Regulatory Review
    20  Commission. The final form regulations and revised department
    21  standards shall be subject to review in accordance with the
    22  procedures set forth in the act of June 25, 1982 (P.L.633,
    23  No.181), known as the "Regulatory Review Act," for proposed
    24  final regulations. Other than as herein provided, regulations
    25  adopted pursuant to this paragraph shall not be subject to
    26  review under the "Regulatory Review Act."
    27     (B)  The State Board of Education may transmit to the
    28  Governor and the Secretary of Education recommendations, if any,
    29  for changes in statutes.
    30     (iii)  The Department of Education shall require the
    20030H0040B0499                 - 10 -     

     1  submission of appropriate program and fiscal data from the
     2  school districts and intermediate units in order to assist in
     3  the development of regulations and proposed program standards.
     4  Each school district and intermediate unit shall provide such
     5  data at such time and in such form as the department may
     6  require.
     7     (2)  Plans for Education and Training Exceptional Children.
     8  Each]
     9     (d)  (1)  For the school year 2002-2003, each intermediate
    10  unit, cooperatively with other intermediate units and with
    11  school districts shall prepare and submit to the [Superintendent
    12  of Public Instruction, on or before the first day of August, one
    13  thousand nine hundred seventy for his] Department of Education
    14  for approval or disapproval, plans for the proper education and
    15  training of all exceptional children in accordance with the
    16  standards and regulations adopted by the State Board of
    17  Education. Plans as provided for in this section shall be
    18  subject to revision from time to time as conditions warrant,
    19  subject to the approval of the [Superintendent of Public
    20  Instruction.] Department of Education.
    21     (2)  For the 2003-2004 school year and each school year
    22  thereafter, the Department of Education shall have the sole
    23  power and duty to provide for the education of exceptional
    24  students with disabilities. The department, in cooperation with
    25  each intermediate unit shall prepare and submit plans for the
    26  proper education and training of all exceptional children with
    27  disabilities in accordance with the standards and regulations of
    28  the State Board of Education. Plans under this paragraph shall
    29  be subject to periodic revisions as conditions warrant.
    30     (3)  For the 2003-2004 school year and each school year
    20030H0040B0499                 - 11 -     

     1  thereafter, each school district shall prepare and submit to the
     2  department plans for the proper education and training of all
     3  exceptional children who are gifted in accordance with the
     4  standards and regulations of the State Board of Education. Plans
     5  under this paragraph shall be subject to periodic revisions as
     6  conditions warrant.
     7     [(3)  Special Classes or Schools Established and Maintained
     8  by School Districts.]
     9     (e)  (1)  Except as herein otherwise provided, it shall be
    10  the duty of the board of school directors of every school
    11  district to provide and maintain, or to jointly provide and
    12  maintain with neighboring districts, special classes or schools
    13  in accordance with the approved plan[.] for exceptional children
    14  who are gifted.
    15     (2)  Except as otherwise provided, it shall be the duty of
    16  the Department of Education in cooperation with the various
    17  intermediate units either alone or jointly to provide and
    18  maintain classes or schools for exceptional children who have
    19  disabilities. In providing these classes or schools, the
    20  department may use intermediate units, school districts, in-
    21  house staff or private contractors to provide the education.
    22     (3)  The Secretary of Education shall superintend the
    23  organization of such special classes and such other arrangements
    24  for special education and shall enforce the provisions of this
    25  act relating thereto. If the approved plan indicates that it is
    26  not feasible to form a special class in any district or
    27  intermediate unit or to provide such education for any such
    28  child in the public schools of the district or the intermediate
    29  unit, the [board of school directors of the district] department
    30  shall secure such proper education and training outside the
    20030H0040B0499                 - 12 -     

     1  public schools [of the district] or in special institutions, or
     2  by providing for teaching the child in his home, in accordance
     3  with rules and regulations prescribed by the [Department of]
     4  State Board of Education, on terms and conditions not
     5  inconsistent with the terms of this act or of any other act then
     6  in force applicable to such children. [However, the institution
     7  of special classes and programs at the secondary level for
     8  exceptional children who are gifted and talented students may be
     9  deferred until September 1978 at the discretion of the board of
    10  the school directors of any school district.]
    11     (f)  In addition to the [above] requirements of subsections
    12  (b), (c) and (d) and in accordance with rules and regulations
    13  prescribed by the Department of Education, homebound instruction
    14  shall be provided for children confined in detention homes as
    15  provided in section 7, act of June 2, 1933 (P.L.1433, No.311),
    16  as amended, for the period of their confinement, if their
    17  confinement exceeds or is expected to exceed ten days, even
    18  though such children are not exceptional.
    19     [(4)  Classes for Exceptional Children.  The] (g) The
    20  department, in cooperation with the intermediate unit shall have
    21  power, and it shall be its duty, to provide, maintain,
    22  administer, supervise and operate such [additional] classes or
    23  schools as are necessary or to otherwise provide for the proper
    24  education and training for all exceptional children who [are not
    25  enrolled in classes or schools maintained and operated by school
    26  districts or who are not otherwise provided for] have
    27  disabilities.
    28     [(5)  Day-Care Training Centers, Classes and Schools for the
    29  Proper Education and Training of Exceptional Children.] (h)
    30  Where in the judgment of the [Superintendent of Public
    20030H0040B0499                 - 13 -     

     1  Instruction] Secretary of Education, the provisions of this act
     2  relating to the proper education and training of exceptional
     3  children with disabilities have not been complied with or the
     4  needs of exceptional children with disabilities are not being
     5  adequately served, the Department of [Public Instruction]
     6  Education is hereby authorized to provide, including the payment
     7  of rental when necessary, maintain, administer, supervise and
     8  operate classes and schools for the proper education and
     9  training of exceptional children with disabilities. Pupil
    10  eligibility for enrollment in classes for exceptional children
    11  shall be determined according to standards and regulations
    12  promulgated by the State Board of Education. For each child
    13  enrolled in any special class or school for exceptional children
    14  [operated by the Department of Public Instruction, the school
    15  district in which the child is resident shall pay to the
    16  Commonwealth, a sum equal to the "tuition charge per elementary
    17  pupil" or the "tuition charge per high school pupil" as
    18  determined for the schools operated by the district or by a
    19  joint board of which the district is a member, based upon the
    20  costs of the preceding school term as provided for in section
    21  two thousand five hundred sixty-one of the act to which this is
    22  an amendment plus a sum equal to ten (10) per centum of such
    23  tuition charges. In the event that any school district has not
    24  established such "tuition charge per elementary pupil" or
    25  "tuition charge per high school pupil," the Superintendent of
    26  Public Instruction shall fix a reasonable charge for such
    27  district for the year in question. In order to facilitate such
    28  payments by the several school districts, the Superintendent of
    29  Public Instruction shall withhold from any moneys due to such
    30  district out of any State appropriation, except from
    20030H0040B0499                 - 14 -     

     1  reimbursement due on account of rentals as provided in section
     2  two thousand five hundred eleven point one of the act to which
     3  this is an amendment, the amounts due by such school districts
     4  to the Commonwealth. All amounts so withheld are hereby
     5  specifically appropriated to the Department of Public
     6  Instruction for the maintenance and administration of centers
     7  and classes for exceptional children] with disabilities the
     8  Department of Education shall be responsible for all costs as
     9  provided in section 1372(b)(5).
    10     [(6)  Pupils Credited to District of Residence. The average
    11  daily membership of pupils enrolled in classes and schools for
    12  exceptional children, operated by an intermediate unit or by the
    13  Department of Public Instruction, shall be credited to the
    14  school district of residence for the purpose of determining the
    15  district's "teaching units" to be used in calculating the
    16  district's reimbursement fractions or weighted average daily
    17  membership to be used in calculating a district's aid ratio and
    18  in determining payments to the district on account of
    19  instruction as provided in section two thousand five hundred two
    20  of the act to which this is an amendment.
    21     (8)  Reporting of Expenditures Relating to Exceptional
    22  Students.] (i)  By December 31, 2000, and each year thereafter,
    23  each school district and each intermediate unit shall compile
    24  information listing the number of students with disabilities for
    25  which expenditures are between twenty-five thousand dollars
    26  ($25,000) and fifty thousand dollars ($50,000), between fifty
    27  thousand dollars ($50,000) and seventy-five thousand dollars
    28  ($75,000) and over seventy-five thousand dollars ($75,000) for
    29  the prior school year. The information shall be submitted to the
    30  department in a form prescribed by the department. By February
    20030H0040B0499                 - 15 -     

     1  1, 2001, and each year thereafter, the department shall submit
     2  to the chairman and minority chairman of the Education and
     3  Appropriations Committees of the Senate and the chairman and
     4  minority chairman of the Education and Appropriations Committees
     5  of the House of Representatives a report listing this
     6  information by school district and intermediate unit.
     7     Section 7.  Section 1373 of the act, amended October 21, 1965
     8  (P.L.601, No.312), is amended to read:
     9     Section 1373.  State Reimbursement; Reports.--(a)  School
    10  districts maintaining special classes in the public schools or
    11  special public schools or providing special education, as
    12  specified in this subdivision of this article, shall receive
    13  reimbursement up to and through the school year 2002-2003, as
    14  provided by this act, so long as such classes, such schools, and
    15  such special education are approved by the Department of [Public
    16  Instruction] Education as to location, constitution and size of
    17  classes, conditions of admission and discharge of pupils,
    18  equipment, courses of study, methods of instruction and
    19  qualification of teachers. Beginning with the school year 2003-
    20  2004, and each school year thereafter, the Commonwealth shall
    21  have the duty through the intermediate units to provide for the
    22  education of all exceptional children with disabilities. All
    23  costs shall be paid by the Commonwealth as provided in section
    24  1372(b)(5).
    25     (b)  On or before the first day of November of each year, the
    26  secretary of the board of school directors in each district in
    27  which special education for exceptional children is provided
    28  shall make such reports as may be required by the Department of
    29  [Public Instruction] Education, in regard to such special
    30  education being maintained for the current school year for which
    20030H0040B0499                 - 16 -     

     1  approval is desired.
     2     Section 8.  Section 1376 of the act, amended June 7, 1993
     3  (P.L.49, No.16), June 30, 1995 (P.L.220, No.26) and June 22,
     4  2001 (P.L.530, No.35), is amended to read:
     5     Section 1376.  Cost of Tuition and Maintenance of Certain
     6  Exceptional Children in Approved Institutions.--(a)  When any
     7  child between school entry age and twenty-one (21) years of age
     8  and resident in this Commonwealth, who is blind or deaf, or has
     9  cerebral palsy and/or neurological impairment and/or muscular
    10  dystrophy and/or is mentally retarded and/or has a serious
    11  emotional disturbance and/or has autism/pervasive developmental
    12  disorder and is enrolled, with the approval of the Department of
    13  Education, as a pupil in an approved private school approved by
    14  the Department of Education, in accordance with standards and
    15  regulations promulgated by the State Board of Education, the
    16  [school district in which such child is resident or, for
    17  students placed by a charter school, the charter school in which
    18  the student was enrolled shall pay the greater of either twenty
    19  per centum (20%) of the actual audited cost of tuition and
    20  maintenance of such child in such school, as determined by the
    21  Department of Education, or its "tuition charge per elementary
    22  pupil" or its "tuition charge per high school pupil," as
    23  calculated pursuant to section 2561, and the] Commonwealth shall
    24  pay, out of funds appropriated to the department for special
    25  education, the [balance due for the costs of such child's
    26  tuition and maintenance, as determined by the department. For
    27  the school years 1989-1990, 1990-1991 and 1991-1992, the school
    28  district payment shall be no greater than forty percent (40%) of
    29  the actual audited costs of tuition and maintenance of such
    30  child in such school. For the 1992-1993 school year and each
    20030H0040B0499                 - 17 -     

     1  school year thereafter, the school district or charter school
     2  payment shall be the greater of forty percent (40%) of the
     3  actual audited costs of tuition and maintenance of such child in
     4  such school, as determined by the Department of Education, or
     5  its "tuition charge per elementary pupil" or its "tuition charge
     6  per high school pupil," as calculated pursuant to section 2561,
     7  and the Commonwealth shall pay, out of funds appropriated to the
     8  department for approved private schools, the balance due for the
     9  costs of such child's tuition and maintenance, as determined by
    10  the department. The department will credit the district of
    11  residence with average daily membership for such child
    12  consistent with the rules of procedure developed in accordance
    13  with section 2501. If the residence of such child in a
    14  particular school district cannot be determined, the
    15  Commonwealth shall pay, out of moneys appropriated to the
    16  department for special education, the] whole cost of tuition and
    17  maintenance of such child. The Department of Education shall be
    18  provided with such financial data from approved private schools
    19  as may be necessary to determine the reasonableness of costs for
    20  tuition and room and board concerning Pennsylvania resident
    21  approved reimbursed students. The Department of Education shall
    22  evaluate such data and shall disallow any cost deemed
    23  unreasonable. Any costs deemed unreasonable by the Department of
    24  Education for disallowance shall be considered an adjudication
    25  within the meaning of Title 2 of the Pa.C.S. (relating to
    26  administrative law and procedure) and regulations promulgated
    27  thereunder.
    28     (b)  When any person less than school entry age or more than
    29  twenty-one (21) years of age and resident in this Commonwealth,
    30  who is blind or deaf, or has cerebral palsy and/or has
    20030H0040B0499                 - 18 -     

     1  neurological impairment and/or has muscular dystrophy, or has
     2  autism/pervasive developmental delay, and is enrolled, with the
     3  approval of the Department of Education, as a pupil in an
     4  approved private school approved by the Department of Education,
     5  the Commonwealth shall pay to such school, out of moneys
     6  appropriated to the department for special education, the actual
     7  audited cost of tuition and maintenance of such person, as
     8  determined by the Department of Education, subject to review and
     9  approval in accordance with standards and regulations
    10  promulgated by the State Board of Education, and in addition, in
    11  the case of any child less than school entry age, who is blind,
    12  the cost, as determined by the Department of Education of
    13  instructing the parent of such blind child in caring for such
    14  child.
    15     (c)  Each approved private school, prior to the start of the
    16  school year, shall submit to the department such information as
    17  the department may require in order to establish an estimate of
    18  reimbursable costs. Based upon this information, any other data
    19  deemed necessary by the department and in accordance with
    20  department standards, the department shall develop for each
    21  approved private school an estimate of reimbursable costs. Based
    22  upon such estimate, the department shall provide each approved
    23  private school with monthly payments in advance of department
    24  audit. The department may withhold a portion of such payments
    25  not exceeding five percent (5%) of such payment, pending final
    26  audit. In no event shall either the advance payments or final
    27  reimbursement made by the department following audit exceed the
    28  appropriation available for approved private schools.
    29     (c.1)  Any funds remaining from the appropriation line items
    30  "for special education - approved private schools" or for
    20030H0040B0499                 - 19 -     

     1  Pennsylvania Charter Schools for the Deaf and Blind from the
     2  general appropriations acts for fiscal years 1978-1979 and each
     3  fiscal year thereafter shall be transferred by the State
     4  Treasurer into a restricted account (continuing appropriation)
     5  for audit resolution which is hereby established. The Department
     6  of Education shall also deposit into this restricted account any
     7  funds returned to or recovered by the department from approved
     8  private schools or chartered schools for overpayments during
     9  fiscal years 1978-1979 and each fiscal year thereafter. The
    10  funds in the restricted account are hereby appropriated upon
    11  approval of the Governor to the Department of Education for
    12  payments to approved private schools for audit resolutions for
    13  fiscal years 1978-1979 and each fiscal year thereafter. Funds in
    14  this restricted account shall not be subject to the limitations
    15  in subsection (c) which prohibit advance payments and final
    16  reimbursement from exceeding the appropriation available for
    17  approved private schools. During the 1995-1996 fiscal year and
    18  during each fiscal year thereafter, the Department of Education
    19  shall review the activity in the restricted account and may
    20  recommend that the Governor authorize the lapsing into the
    21  General Fund of any funds that are estimated not to be needed
    22  for audit resolution.
    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
    20030H0040B0499                 - 20 -     

     1  of 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 Court Orders,
    20  this act and 22 Pa. Code Chs. 14 and 342 as they relate to the
    21  provision of programs and services to special education students
    22  should be carefully reviewed as they pertain to approved private
    23  schools, continuum of placement options, funding, FAPE and other
    24  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 9.  Section 1376.1 of the act, amended June 7, 1993
    20030H0040B0499                 - 21 -     

     1  (P.L.49, No.16), 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 1992-1993 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
    20030H0040B0499                 - 22 -     

     1  maintenance of such child in such school, as determined by the
     2  Department of Education, or its "tuition charge per elementary
     3  pupil" or its "tuition charge per high school pupil," and the
     4  Commonwealth shall pay out of funds appropriated to the
     5  department for chartered schools the balance due for the costs
     6  of such child's tuition and maintenance, as determined by the
     7  department. The department will credit the district of residence
     8  with average daily membership for such child consistent with the
     9  rules of procedure developed in accordance with section 2501. If
    10  the residence of such child in a particular school district
    11  cannot 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,
    20030H0040B0499                 - 23 -     

     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 10.  Section 1377 of the act, amended or added May
    14  31, 1979 (P.L.33, No.11), December 17, 1982 (P.L.1378, No.316)
    15  and July 8, 1989 (P.L.253, No.43), is amended to read:
    16     Section 1377.  Payment of Cost of Tuition and Maintenance of
    17  Certain Exceptional Children.--(a)  [To facilitate payments by
    18  the several school districts to the schools or institutions in
    19  which deaf or blind, or cerebral palsied and/or brain damaged
    20  and/or muscular dystrophied, or socially and emotionally
    21  disturbed or mentally retarded children are enrolled, of amounts
    22  due by such districts for their proportion of the cost of
    23  tuition and maintenance of such children, the Secretary of
    24  Education shall withhold from any moneys due to such districts
    25  out of any State appropriation for the assistance as
    26  reimbursement of school districts, the amounts due by such
    27  districts to such schools or institutions for the blind or the
    28  deaf, or the cerebral palsied and/or brain damaged and/or
    29  muscular dystrophied or the socially and emotionally disturbed
    30  and/or mentally retarded. Amounts so withheld shall be
    20030H0040B0499                 - 24 -     

     1  specifically appropriated to the Department of Education.] The
     2  Commonwealth shall pay the whole cost of tuition and maintenance
     3  of any child subject to the provisions of sections 1376 and
     4  1376.1.
     5     (b)  Payments of the Commonwealth's [proportion of the] cost
     6  of tuition and maintenance of blind or deaf, or cerebral palsied
     7  and/or brain damaged and/or muscular dystrophied, or socially
     8  and emotionally disturbed and/or mentally retarded pupils
     9  enrolled in schools or institutions for the blind or for the
    10  deaf, or for the cerebral palsied and/or brain damaged and/or
    11  muscular dystrophied, or for the socially and emotionally
    12  disturbed and of the cost of instruction of parents of blind
    13  pupils less than school entry age, as hereinbefore provided,
    14  shall be made quarterly, out of moneys appropriated to the
    15  Department of Education for special education. Except for the
    16  provisions of section 1376.1 providing for the actual cost of
    17  tuition and maintenance of certain exceptional children in the
    18  four chartered schools for education of the deaf and of the
    19  blind, in no event shall the total payment for the cost of
    20  tuition and maintenance of any such child exceed the rates per
    21  year allowed under section 1376. The maximum amount payable for
    22  the cost of tuition and maintenance of such children shall be
    23  subject to review at least once every two years for the purpose
    24  of recommending an adjustment thereof.
    25     (c)  For the purpose of enabling the Department of Education
    26  to determine from time to time what amounts are due to schools
    27  for the blind or for the deaf or for the cerebral palsied and/or
    28  brain damaged and/or muscular dystrophied or for the socially
    29  and emotionally disturbed and/or mentally retarded hereunder,
    30  such schools shall forward to the department, at such times and
    20030H0040B0499                 - 25 -     

     1  in such form as the department shall prescribe, sworn statements
     2  setting forth the names, ages, and residences of all pupils
     3  enrolled hereunder, specifying the school districts [liable for
     4  a part of the cost of tuition and maintenance] of any such
     5  pupils, the per capita cost of and maintenance of pupils, and
     6  such other information as the department shall require.
     7     (c.1)  For the purpose of providing adequate administration
     8  of the program and to carry out the preaudit functions
     9  authorized in section 1376(a), one-half of one percent (.50%) of
    10  the total appropriations for approved private schools from all
    11  funds shall be allocated to the Department of Education.
    12     [(d)  When, during the course of the 1982-1983 school year,
    13  programs for exceptional children are caused to be transferred
    14  from schools or institutions for the blind or deaf, or cerebral
    15  palsied or brain damaged or muscular dystrophied or mentally
    16  retarded, or socially and emotionally disturbed, as provided for
    17  in sections 1376 and 1376.1, to school districts or intermediate
    18  units, as provided for in sections 2509 and 2509.1, under
    19  unanticipated or emergency circumstances, and when such
    20  transfers necessitate the transfer of funds from the
    21  appropriation to the Department of Education for special
    22  education for approved private schools to the appropriation to
    23  the Department of Education for payments on account of special
    24  education of exceptional children in public schools, the
    25  Secretary of Education shall be empowered so to transfer such
    26  funds, upon approval of the Secretary of the Budget and written
    27  notification to the State Treasurer and the chairmen of the
    28  House and Senate Appropriations and Education Committees.]
    29     Section 11.  Section 1725-A(a) of the act, amended June 29,
    30  2002 (P.L.524, No.88), is amended to read:
    20030H0040B0499                 - 26 -     

     1     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
     2  for a charter school shall be provided in the following manner:
     3     (1)  There shall be no tuition charge for a resident or
     4  nonresident student attending a charter school.
     5     (2)  For non-special education students, the charter school
     6  shall receive for each student enrolled no less than the
     7  budgeted total expenditure per average daily membership of the
     8  prior school year, as defined in section 2501(20), minus the
     9  budgeted expenditures of the district of residence for nonpublic
    10  school programs; adult education programs; community/junior
    11  college programs; student transportation services; for special
    12  education programs; facilities acquisition, construction and
    13  improvement services; and other financing uses, including debt
    14  service and fund transfers as provided in the Manual of
    15  Accounting and Related Financial Procedures for Pennsylvania
    16  School Systems established by the department. This amount shall
    17  be paid by the district of residence of each student.
    18     (3)  For special education students without disabilities, the
    19  charter school shall receive for each student enrolled the same
    20  funding as for each non-special education student as provided in
    21  clause (2), plus an additional amount determined by dividing the
    22  district of residence's total special education expenditure for
    23  students without disabilities by the product of multiplying the
    24  combined percentage of section 2509.5(k) times the district of
    25  residence's total average daily membership for the prior school
    26  year. This amount shall be paid by the district of residence of
    27  each special education student without disabilities.
    28     (3.1)  For special education students with disabilities who
    29  are required to be educated by the Department of Education and
    30  the department agrees in writing that the charter school may
    20030H0040B0499                 - 27 -     

     1  provide the education, the charter school shall receive for each
     2  student enrolled the same funding as provided to other providers
     3  or contractors by the Commonwealth under section 1372(b)(5).
     4     (4)  A charter school may request the intermediate unit in
     5  which the charter school is located to provide services to
     6  assist the charter school to address the specific needs of
     7  exceptional students. The intermediate unit shall assist the
     8  charter school and bill the charter school for the services. The
     9  intermediate unit may not charge the charter school more for any
    10  service than it charges the constituent districts of the
    11  intermediate unit.
    12     (5)  Payments shall be made to the charter school in twelve
    13  (12) equal monthly payments, by the fifth day of each month,
    14  within the operating school year. A student enrolled in a
    15  charter school shall be included in the average daily membership
    16  of the student's district of residence for the purpose of
    17  providing basic education funding payments and special education
    18  funding pursuant to Article XXV. If a school district fails to
    19  make a payment to a charter school as prescribed in this clause,
    20  the secretary shall deduct the amount, as documented by the
    21  charter school, from any and all State payments made to the
    22  district after receipt of documentation from the charter school.
    23     (6)  Within thirty (30) days after the secretary makes the
    24  deduction described in clause (5), a school district may notify
    25  the secretary that the deduction made from State payments to the
    26  district under this subsection is inaccurate. The secretary
    27  shall provide the school district with an opportunity to be
    28  heard concerning whether the charter school documented that its
    29  students were enrolled in the charter school, the period of time
    30  during which each student was enrolled, the school district of
    20030H0040B0499                 - 28 -     

     1  residence of each student and whether the amounts deducted from
     2  the school district were accurate.
     3     * * *
     4     Section 12.  Section 2509 of the act is amended by adding a
     5  subsection to read:
     6     Section 2509.  Payments on Account of Courses for Exceptional
     7  Children.--* * *
     8     (g) (1)  Except as provided in clause (2), the last school
     9  year for payments to school districts under this section for
    10  exceptional children with disabilities shall be for the school
    11  year 2002-2003. Thereafter payments for the education of
    12  exceptional children with disabilities shall be made to
    13  intermediate units by the Commonwealth as provided in section
    14  1372(b)(5).
    15     (2)  Payments under this section shall continue to be made to
    16  school districts for the education of exceptional children
    17  without disabilities.
    18     Section 13.  Section 2509.1(g) of the act, amended June 30,
    19  1995 (P.L.220, No.26), is amended to read:
    20     Section 2509.1.  Payments to Intermediate Units.--* * *
    21     (g)  (1)  For the 1991-1992 school year and each school year
    22  thereafter, for each child enrolled in an intermediate unit
    23  class for institutionalized children, the school district in
    24  which the child is resident shall pay to the Commonwealth a sum
    25  equal to the "tuition charge per elementary pupil" or the
    26  "tuition charge per high school pupil," as determined for the
    27  schools operated by the district or by a joint board of which
    28  the district is a member, for the same year in which the class
    29  or school is operated, as provided for in section 2561. In the
    30  event that any school district has not established such "tuition
    20030H0040B0499                 - 29 -     

     1  charge per elementary pupil" or "tuition charge per high school
     2  pupil," the Secretary of Education shall fix a reasonable charge
     3  for such district for the year in question.
     4     (2)  In addition, the district shall pay to the Commonwealth
     5  on account of transportation by the intermediate unit of pupils
     6  to and from classes and schools for exceptional children who are
     7  gifted and of eligible young children to and from early
     8  intervention programs, whether or not conducted by the
     9  intermediate unit, an amount to be determined by subtracting
    10  from the cost of transportation per pupil the reimbursement due
    11  the district on account of such transportation. The Commonwealth
    12  shall pay all costs associated with the transportation of
    13  exceptional children with disabilities.
    14     (3)  In order to facilitate such payments by the several
    15  school districts, the Secretary of Education shall withhold from
    16  any moneys due to such districts out of a State appropriation,
    17  except from reimbursements due on account of rentals, the
    18  amounts due by such school districts to the Commonwealth. All
    19  amounts so withheld are hereby specifically appropriated to the
    20  Department of Education for the support of public schools.
    21     Section 14.  Section 2509.4 of the act, added July 8, 1989
    22  (P.L.253, No.43), is amended to read:
    23     [Section 2509.4.  Payments on Account of Special Education
    24  Services.--(a)  For the school year 1989-1990, the following
    25  provisions shall apply to the Commonwealth's payments of funds
    26  to school districts and intermediate units for the provisions of
    27  special education services.
    28     (1)  On or before the first day of August, the Commonwealth
    29  shall pay to school districts and intermediate units an amount
    30  which represents fifty percent (50%) of the total State funds
    20030H0040B0499                 - 30 -     

     1  available for such programs operated in the school year 1989-
     2  1990.
     3     (2)  On January 1, 1990, a second payment shall be made to
     4  school districts and intermediate units consisting of one-fourth
     5  (1/4) of the total State funds available for such programs
     6  operated in the school year 1989-1990.
     7     (3)  If, by March 1, 1990, the State Board of Education has
     8  adopted revisions to Chapter 13 Special Education regulations
     9  and/or the 22 Pa. Code Ch. 341 standards, the final payment
    10  shall consist of the remaining State funds available for such
    11  programs operated in the school year 1989-1990. If, on March 1,
    12  1990, the State Board of Education has not adopted revisions to
    13  Chapter 13 Special Education regulations and/or 22 Pa. Code Ch.
    14  341 standards, but the Secretary of the Budget determines that
    15  sufficient progress has been made, a one-time waiver in order to
    16  make an additional payment of no more than one-eighth (1/8) of
    17  the total State funds available for such programs operated in
    18  the school year 1989-1990 may be made.
    19     (b)  From the funds appropriated in the 1989-1990 fiscal year
    20  and notwithstanding the provisions of subsection (a)(1), (2) and
    21  (3), fifty million dollars ($50,000,000) shall be paid on August
    22  1, 1989, to school districts for programs operated in school
    23  year 1988-1989 with the additional payment of forty-nine million
    24  dollars ($49,000,000) of the funds due the school districts for
    25  the programs operated in school year 1988-1989 to be paid on or
    26  before December 1, 1989. Any adjustments to these payments may
    27  be made in June 1990 on the basis of actual data.]
    28     Section 15.  Section 2509.5 of the act is amended by adding a
    29  subsection to read:
    30     Section 2509.5.  Special Education Payments to School
    20030H0040B0499                 - 31 -     

     1  Districts.--* * *
     2     (ll) (1)  Except as provided in clause (2), the last school
     3  year for payments to school districts under this section for
     4  exceptional children with disabilities shall be for the school
     5  year 2002-2003. Thereafter payments for the education of
     6  exceptional children with disabilities shall be made to
     7  intermediate units by the Commonwealth as provided in section
     8  1372(b)(5).
     9     (2)  Payments under this section shall continue to be made to
    10  school districts for the education of exceptional children
    11  without disabilities.
    12     Section 16.  Section 2509.6 of the act, amended July 9, 1992
    13  (P.L.392, No.85), is amended to read:
    14     [Section 2509.6.  Average Cost Guarantee.--(a)  For the 1991-
    15  1992 school year, the dollars available to school districts for
    16  operating and administering classes for exceptional children
    17  shall be guaranteed at eight thousand five hundred five dollars
    18  ($8,505) per average daily membership for special education
    19  programs and services offered by school districts during the
    20  1990-1991 school year and ten thousand two hundred ninety
    21  dollars ($10,290) per average daily membership for special
    22  education programs and services offered by the intermediate unit
    23  during the 1990-1991 school year.
    24     (b)  The dollars available to school districts for operating
    25  and administering classes for exceptional children shall be the
    26  sum of the following: total average daily membership for
    27  students receiving special education multiplied by the tuition
    28  charge pursuant to section 2561, plus the amount calculated
    29  pursuant to sections 2509(f) and 2509.5(b) and three times the
    30  district's payment to the Commonwealth for noninstitutionalized
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     1  children's programs pursuant to section 2509.1(f).
     2     (c)  If the actual dollars available to a school district, as
     3  calculated pursuant to subsection (b), are less than the total
     4  guaranteed dollars available to a school district pursuant to
     5  subsection (a), then the Commonwealth shall pay to such school
     6  district funds equal to the amount of the difference between the
     7  total guaranteed dollars available pursuant to subsection (a)
     8  and the actual dollars available pursuant to subsection (b).]
     9     Section 17.  Section 2509.7 of the act, added August 5, 1991
    10  (P.L.219, No.25), is amended to read:
    11     [Section 2509.7.  Minimum Guarantee.--For the 1991-1992
    12  school year, each intermediate unit, in the aggregate, including
    13  the intermediate unit and its member school districts, shall
    14  receive at least a three and five-tenths percent (3.5%) increase
    15  in the aggregate revenue for special education over the
    16  aggregate cash amount available from the Commonwealth for
    17  special education during the 1990-1991 school year. The
    18  intermediate unit shall meet with its constituent school
    19  districts to develop a plan for the expenditure or distribution
    20  of the funds provided by this section for the purpose of the
    21  provision of special education programs and services. These
    22  funds may not be expended or distributed by the intermediate
    23  unit until a majority of the boards of directors of the
    24  constituent school districts have approved such expenditures or
    25  distribution. If the amount received under the provisions of
    26  this section is less than ten thousand dollars ($10,000), such
    27  amount may be retained by the intermediate unit for the purpose
    28  of providing special education programs or services without the
    29  approval of its constituent school districts. For the purpose of
    30  computing the revenue available for the guarantee in this
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     1  section, the Commonwealth shall include funds allocated pursuant
     2  to sections 2509(f) and 2509.5(b), plus an amount equal to three
     3  times the school district payment to the Commonwealth pursuant
     4  to section 2509.1(b) and the funds allocated pursuant to
     5  sections 2509.1(c), (d) and (f) and 2509.6.]
     6     Section 18.  This act shall take effect July 1, 2003.
















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