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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 666, 1789, 2305,         PRINTER'S NO. 2474
        2385

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 564 Session of 2003


        INTRODUCED BY BUNT, DeWEESE, HARPER, CURRY, BARD, BELFANTI,
           CAPPELLI, CIVERA, CLYMER, DAILEY, DALEY, DALLY, FREEMAN,
           GODSHALL, HARHART, HENNESSEY, HERMAN, HORSEY, JAMES, JOSEPHS,
           LaGROTTA, LAUGHLIN, LEH, MANN, MARKOSEK, NAILOR, ROSS,
           RUBLEY, SAYLOR, SEMMEL, E. Z. TAYLOR, THOMAS, TRAVAGLIO,
           TURZAI, VANCE, WEBER, WILT, YOUNGBLOOD, YUDICHAK, WASHINGTON,
           ROEBUCK, SCAVELLO, LEWIS, SAMUELSON, WOJNAROSKI AND ADOLPH,
           MARCH 3, 2003

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JULY 28, 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," REQUIRING SCHOOL DISTRICTS TO REOPEN   <--
     6     THEIR 2003-2004 BUDGETS; IMPOSING LIMITATIONS ON CERTAIN
     7     UNRESERVED FUND BALANCES; FURTHER PROVIDING FOR AUXILIARY
     8     SERVICES; DELETING PROVISIONS RELATING TO PROFESSIONAL
     9     TEACHER ASSESSMENT; FURTHER PROVIDING FOR COST OF TUITION AND
    10     MAINTENANCE OF CERTAIN EXCEPTIONAL CHILDREN IN APPROVED
    11     PRIVATE SCHOOLS AND FOR ACTUAL COST OF TUITION AND
    12     MAINTENANCE OF CERTAIN EXCEPTIONAL CHILDREN IN THE FOUR
    13     CHARTERED SCHOOLS FOR EDUCATION OF DEAF AND BLIND CHILDREN;
    14     PROVIDING FOR THE HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM;
    15     FURTHER PROVIDING FOR EDUCATION SUPPORT SERVICES PROGRAM, FOR
    16     EDUCATION EMPOWERMENT DISTRICTS, FOR SCHOOL IMPROVEMENT
    17     GRANTS AND FOR MANDATE WAIVER PROGRAM; further providing for
    18     community college financial programs and reimbursements;
    19     establishing the Community College Nonmandated Capital Fund    <--
    20     PROVIDING FOR NONMANDATED CAPITAL; and abrogating a            <--
    21     regulation. AND FOR EFFECTIVE DATE OF REGULATIONS RELATING TO  <--
    22     COMMUNITY COLLEGES. NONMANDATED CAPITAL AND FOR EFFECTIVE      <--
    23     DATE OF REGULATIONS RELATING TO COMMUNITY COLLEGES; and        <--
    24     abrogating a regulation REGULATIONS. FURTHER DEFINING          <--
    25     "EDUCATIONAL IMPROVEMENT ORGANIZATION" AND "SCHOLARSHIP
    26     ORGANIZATION"; FURTHER PROVIDING FOR EDUCATIONAL IMPROVEMENT


     1     TAX CREDITS, FOR LIMITATIONS ON EDUCATIONAL IMPROVEMENT TAX
     2     CREDITS, FOR PAYMENTS ON ACCOUNT OF PUPILS ENROLLED IN
     3     VOCATIONAL CURRICULUMS AND FOR SMALL DISTRICT ASSISTANCE;
     4     PROVIDING FOR BASIC EDUCATION FUNDING FOR 2002-2003 SCHOOL
     5     YEAR; FURTHER PROVIDING FOR PAYMENTS TO INTERMEDIATE UNITS,
     6     FOR SPECIAL EDUCATION PAYMENTS TO SCHOOL DISTRICTS AND FOR
     7     COMMONWEALTH REIMBURSEMENTS FOR CHARTER SCHOOLS AND CYBER
     8     CHARTER SCHOOLS AND FOR POWERS AND DUTIES OF THE STATE BOARD
     9     OF EDUCATION; ABROGATING REGULATIONS; AND MAKING
    10     APPROPRIATIONS, REPEALS AND AN EDITORIAL CHANGE.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 1902-A of the act of March 10, 1949        <--
    14  (P.L.30, No.14), known as the Public School Code of 1949, added
    15  July 1, 1985 (P.L.103, No.31), is amended to read:
    16     Section 1902-A.  Powers and Duties of State Board of
    17  Education.--(a)  The State Board of Education shall have the
    18  power, and its duty shall be:
    19     (1)  To adopt such policies, standards, rules and regulations
    20  formulated by the Council of Higher Education, as may be
    21  necessary to provide for the establishment, operation and
    22  maintenance of community colleges, including minimum
    23  requirements for physical facilities and equipment, curriculum,
    24  faculty, standards and professional requirements, qualifications
    25  for admission and advancement of students, student enrollment,
    26  student population of the area to be served by the community
    27  college, requirements for satisfactory completion of a two-year
    28  program and the degrees or diplomas or certificates to be
    29  awarded therefor, means of financing and financial resources for
    30  the establishment and support of the community college, and all
    31  matters necessary to effectuate the purposes of this act.
    32     (2)  To approve or disapprove plans for the establishment or
    33  operation of a community college.
    34     (3)  To approve or disapprove petitions of school districts

    20030H0564B2474                  - 2 -     

     1  or municipalities applying for participation in an established
     2  community college. No petition may be approved unless it is
     3  accompanied by the consent of the governing bodies of the
     4  majority of the members of the local sponsor of the established
     5  community college to the participation of the petitioning school
     6  district or municipality.
     7     (b)  In determining such policies, standards, rules and
     8  regulations, the State Board of Education may consider relevant
     9  all minimum requirements established by statute or by regulation
    10  with respect to the State colleges and universities of the
    11  Commonwealth and may consider relevant such minimum requirements
    12  established by statute or by regulation with respect to
    13  secondary and special education programs in the school district
    14  or districts of the area to be served by the community college.
    15  Regulations promulgated under this article shall take effect at
    16  the beginning of the school year following promulgation.
    17     (c)  In approving or disapproving such plans, the State Board
    18  of Education shall consider the needs of areas adjacent to the
    19  areas to be served by the community college and of the State
    20  with respect to higher education and long range plans therefor
    21  established by the State Board of Education. Other school
    22  districts and municipalities may petition the State Board of
    23  Education to become a part of a local sponsor as hereafter in
    24  this act provided.
    25     (d)  No plan for the establishment of a community college
    26  shall be approved unless the State Board of Education determines
    27  that the local sponsor has a population of a sufficient number
    28  to assure a sustained minimum enrollment, has sufficient wealth
    29  to financially support such college and is not adequately served
    30  by established institutions of higher learning. No plan for the
    20030H0564B2474                  - 3 -     

     1  establishment of a community college shall be approved unless it
     2  contains an estimate of operating cost for administration,
     3  instruction, operation and maintenance and such other accounts
     4  as the State Board of Education may, from time to time,
     5  determine. No plan for the establishment of a community college
     6  shall be approved unless it contains an estimate of any proposed
     7  capital improvements for the next following ten years.
     8     (e)  To confer with and obtain the approval of the Governor's
     9  Office as to the number of community colleges which can be
    10  approved for participation during the ensuing fiscal period.
    11     (f)  Wherever in this act the approval of the State Board of
    12  Education is required in any matter, the State Board of
    13  Education may require the Department of Education to make and
    14  report its findings and recommendations on such matter to the
    15  Council of Higher Education for the formulation of policies,
    16  standards, rules and regulations for consideration by the State
    17  Board of Education.
    18     Section 2.  Section 1913-A of the act, amended or added July
    19  1, 1985 (P.L.103, No.31), October 20, 1988 (P.L.827, No.110),
    20  June 7, 1993 (P.L.49, No.16) and June 22, 2001 (P.L.530, No.35),
    21  is amended to read:
    22     SECTION 1.  SECTION 1913-A OF THE ACT OF MARCH 10, 1949        <--
    23  (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949,
    24  AMENDED OR ADDED JULY 1, 1985 (P.L.103, NO.31), OCTOBER 20, 1988
    25  (P.L.827, NO.110), JUNE 7, 1993 (P.L.49, NO.16) AND JUNE 22,
    26  2001 (P.L.530, NO.35), IS AMENDED TO READ:
    27     SECTION 1.  SECTION 687 OF THE ACT OF MARCH 10, 1949 (P.L.30,  <--
    28  NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, IS AMENDED BY
    29  ADDING A SUBSECTION TO READ:
    30     SECTION 687.  ANNUAL BUDGET; ADDITIONAL OR INCREASED
    20030H0564B2474                  - 4 -     

     1  APPROPRIATIONS; TRANSFER OF FUNDS.--* * *
     2     (J)  (1)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ACT,
     3  THE BOARD OF SCHOOL DIRECTORS OF EACH SCHOOL DISTRICT IS
     4  REQUIRED TO AND SHALL REOPEN ITS 2003-2004 BUDGET WITHIN SIXTY
     5  (60) DAYS OF THE EFFECTIVE DATE OF THIS SUBSECTION TO REFLECT
     6  ANY INCREASED STATE ALLOCATIONS UNDER SECTIONS 2502.13 AND
     7  2502.41 FOR FISCAL YEAR 2003-2004 PROVIDED BY THE GENERAL
     8  ASSEMBLY THROUGH THIS ACT AND TO COMPLY WITH SECTION 688.
     9     (2)  IN THOSE SCHOOL DISTRICTS WHICH LEVY TAXES AND WHERE THE
    10  INCREASED STATE ALLOCATIONS EXCEED THE STATE REVENUE FIGURES
    11  UTILIZED BY THE SCHOOL DISTRICT AT THE TIME OF ADOPTION OF ITS
    12  ORIGINAL FISCAL YEAR 2003-2004 BUDGET, THE BOARD OF SCHOOL
    13  DIRECTORS SHALL FIRST USE THE INCREASE IN STATE ALLOCATIONS TO
    14  DO ANY OF THE FOLLOWING:
    15     (I)  OFFSET THE INCREASE IN THE EMPLOYER CONTRIBUTION RATE ON
    16  BEHALF OF ACTIVE MEMBERS OF THE PUBLIC SCHOOL EMPLOYEES'
    17  RETIREMENT SYSTEM AS CALCULATED UNDER 24 PA.C.S. § 8328
    18  (RELATING TO ACTUARIAL COST METHOD). SUCH AMOUNT SHALL SUPPLANT
    19  ANY OTHER SCHOOL DISTRICT REVENUES ALLOCATED FOR THIS PURPOSE;
    20     (II)  ABATE ANY LOCAL TAXES WHICH WERE LEVIED AT THE TIME OF
    21  ORIGINAL BUDGET ADOPTION. SUCH TAX ABATEMENTS SHALL OCCUR WITHIN
    22  SIXTY (60) DAYS OF THE REOPENING OF THE SCHOOL DISTRICT'S BUDGET
    23  AND MAY TAKE THE FORM OF TAX REDUCTIONS, REBATES OR CREDITS;
    24     (III)  REDUCE OR RETIRE ANY OUTSTANDING INDEBTEDNESS OF THE
    25  SCHOOL DISTRICT; OR
    26     (IV)  RESTORE FUNDING TO ANY EDUCATIONAL PROGRAMS WHICH WERE
    27  REDUCED OR ELIMINATED FOR THE 2003-2004 SCHOOL YEAR.
    28     (3)  UNDER NO CIRCUMSTANCES SHALL ANY INCREASED STATE
    29  ALLOCATIONS BE USED TO INCREASE A SCHOOL DISTRICT'S RESERVED OR
    30  UNRESERVED FUND BALANCES.
    20030H0564B2474                  - 5 -     

     1     SECTION 2.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
     2     SECTION 688.  LIMITATIONS ON CERTAIN UNRESERVED FUND
     3  BALANCES.--(A)  FOR THE 2003-2004 SCHOOL YEAR AND EACH SCHOOL
     4  YEAR THEREAFTER, NO SCHOOL DISTRICT SHALL APPROVE AN INCREASE IN
     5  REAL PROPERTY TAXES UNLESS IT HAS ADOPTED A BUDGET, OR A
     6  REOPENED BUDGET FOR THE 2003-2004 SCHOOL YEAR PURSUANT TO
     7  SECTION 687(J), THAT INCLUDES AN ESTIMATED, ENDING UNRESERVED
     8  UNDESIGNATED FUND BALANCE LESS THAN OR EQUAL TO THE APPLICABLE
     9  PERCENTAGE AS FOLLOWS:
    10  SCHOOL DISTRICT            ESTIMATED, ENDING UNRESERVED UNDESIGNATED
    11  TOTAL BUDGETED                     FUND BALANCE AS PERCENTAGE OF
    12  EXPENDITURES                       TOTAL BUDGETED EXPENDITURES
    13  LESS THAN OR EQUAL TO $11,999,999      12%
    14  BETWEEN $12,000,000 AND $12,999,999    11.5%
    15  BETWEEN $13,000,000 AND $13,999,999    11%
    16  BETWEEN $14,000,000 AND $14,999,999    10.5%
    17  BETWEEN $15,000,000 AND $15,999,999    10%
    18  BETWEEN $16,000,000 AND $16,999,999    9.5%
    19  BETWEEN $17,000,000 AND $17,999,999    9%
    20  BETWEEN $18,000,000 AND $18,999,999    8.5%
    21  GREATER THAN OR EQUAL TO $19,000,000   8%
    22     (B)  BY OCTOBER 15, 2003, AND AUGUST 15 OF EACH YEAR
    23  THEREAFTER, EACH SCHOOL DISTRICT THAT APPROVES AN INCREASE IN
    24  REAL PROPERTY TAXES SHALL PROVIDE THE DEPARTMENT OF EDUCATION
    25  WITH INFORMATION CERTIFYING COMPLIANCE WITH THIS SECTION. SUCH
    26  INFORMATION SHALL BE PROVIDED IN A FORM AND MANNER PRESCRIBED BY
    27  THE DEPARTMENT OF EDUCATION AND SHALL INCLUDE INFORMATION ON THE
    28  SCHOOL DISTRICT'S ESTIMATED, ENDING UNRESERVED UNDESIGNATED FUND
    29  BALANCE EXPRESSED AS A DOLLAR AMOUNT AND AS A PERCENTAGE OF THE
    30  SCHOOL DISTRICT'S TOTAL BUDGETED EXPENDITURES FOR THAT SCHOOL
    20030H0564B2474                  - 6 -     

     1  YEAR.
     2     (C)  AS USED IN THIS SECTION, "ESTIMATED, ENDING UNRESERVED
     3  UNDESIGNATED FUND BALANCE" SHALL MEAN THAT PORTION OF THE FUND
     4  BALANCE, WHICH IS APPROPRIABLE FOR EXPENDITURE OR NOT LEGALLY OR
     5  OTHERWISE SEGREGATED FOR A SPECIFIC OR TENTATIVE FUTURE USE,
     6  PROJECTED FOR THE CLOSE OF THE SCHOOL YEAR FOR WHICH A SCHOOL
     7  DISTRICT'S BUDGET WAS ADOPTED AND HELD IN THE GENERAL FUND
     8  ACCOUNTS OF THE SCHOOL DISTRICT.
     9     SECTION 3.  SECTION 922.1-A OF THE ACT, AMENDED OR ADDED
    10  AUGUST 1, 1975 (P.L.180, NO.89), AUGUST 24, 1977 (P.L.199,
    11  NO.59), OCTOBER 10, 1980 (P.L.924, NO.159) AND MAY 10, 2000
    12  (P.L.44, NO.16), IS REENACTED TO READ:
    13     SECTION 922.1-A.  AUXILIARY SERVICES.--(A)  LEGISLATIVE
    14  FINDING; DECLARATION OF POLICY. THE WELFARE OF THE COMMONWEALTH
    15  REQUIRES THAT THE PRESENT AND FUTURE GENERATION OF SCHOOL AGE
    16  CHILDREN BE ASSURED AMPLE OPPORTUNITY TO DEVELOP TO THE FULLEST,
    17  THEIR INTELLECTUAL CAPACITIES. IT IS THE INTENT OF THE GENERAL
    18  ASSEMBLY BY THIS ENACTMENT TO ENSURE THAT THE INTERMEDIATE UNITS
    19  IN THE COMMONWEALTH SHALL FURNISH ON AN EQUAL BASIS AUXILIARY
    20  SERVICES TO ALL PUPILS IN THE COMMONWEALTH IN BOTH PUBLIC AND
    21  NONPROFIT NONPUBLIC SCHOOLS.
    22     (B)  DEFINITIONS. THE FOLLOWING TERMS, WHENEVER USED OR
    23  REFERRED TO IN THIS SECTION, SHALL HAVE THE FOLLOWING MEANINGS,
    24  EXCEPT IN THOSE CIRCUMSTANCES WHERE THE CONTEXT CLEARLY
    25  INDICATES OTHERWISE:
    26     "AUXILIARY SERVICES" MEANS GUIDANCE, COUNSELING AND TESTING
    27  SERVICES; PSYCHOLOGICAL SERVICES; VISUAL SERVICES AS DEFINED IN
    28  SECTION 923.2-A; SERVICES FOR EXCEPTIONAL CHILDREN; REMEDIAL
    29  SERVICES; SPEECH AND HEARING SERVICES; SERVICES FOR THE
    30  IMPROVEMENT OF THE EDUCATIONALLY DISADVANTAGED (SUCH AS, BUT NOT
    20030H0564B2474                  - 7 -     

     1  LIMITED TO, THE TEACHING OF ENGLISH AS A SECOND LANGUAGE), AND
     2  SUCH OTHER SECULAR, NEUTRAL, NONIDEOLOGICAL SERVICES AS ARE OF
     3  BENEFIT TO ALL SCHOOL CHILDREN AND ARE PRESENTLY OR HEREAFTER
     4  PROVIDED FOR PUBLIC SCHOOL CHILDREN OF THE COMMONWEALTH.
     5     "NONPUBLIC SCHOOL" MEANS NONPROFIT SCHOOL, OTHER THAN A
     6  PUBLIC SCHOOL WITHIN THE COMMONWEALTH OF PENNSYLVANIA, WHEREIN A
     7  RESIDENT OF THE COMMONWEALTH MAY LEGALLY FULFILL THE COMPULSORY
     8  SCHOOL ATTENDANCE REQUIREMENTS OF THIS ACT AND WHICH MEET THE
     9  REQUIREMENTS OF TITLE VI OF THE CIVIL RIGHTS ACT OF 1964
    10  (PUB.L.88-352; 42 U.S.C. SECTION 2000 ET SEQ).
    11     (C)  PROGRAM OF AUXILIARY SERVICES. STUDENTS ATTENDING
    12  NONPUBLIC SCHOOLS SHALL BE FURNISHED A PROGRAM OF AUXILIARY
    13  SERVICES WHICH ARE PROVIDED TO PUBLIC SCHOOL STUDENTS IN THE
    14  SCHOOL DISTRICT IN WHICH THEIR NONPUBLIC SCHOOL IS LOCATED. THE
    15  PROGRAM OF AUXILIARY SERVICES SHALL BE PROVIDED BY THE
    16  INTERMEDIATE UNIT IN WHICH THE NONPUBLIC SCHOOL IS LOCATED, IN
    17  ACCORDANCE WITH STANDARDS OF THE SECRETARY OF EDUCATION. BEFORE
    18  AN INTERMEDIATE UNIT MAKES ANY DECISION THAT AFFECTS THE
    19  OPPORTUNITIES FOR CHILDREN ATTENDING NONPUBLIC SCHOOLS TO
    20  PARTICIPATE IN THE AUXILIARY SERVICES PROVIDED UNDER THIS
    21  SECTION, THE INTERMEDIATE UNIT SHALL CONSULT WITH SUCH NONPUBLIC
    22  SCHOOLS TO DETERMINE AT A MINIMUM: WHICH GENERAL CATEGORIES OF
    23  CHILDREN SHALL RECEIVE SERVICES; WHAT SERVICES SHALL BE
    24  PROVIDED; HOW AND WHERE THE SERVICES SHALL BE PROVIDED; AND HOW
    25  THE SERVICES SHALL BE EVALUATED. SUCH SERVICES SHALL BE PROVIDED
    26  DIRECTLY TO THE NONPUBLIC SCHOOL STUDENTS BY THE INTERMEDIATE
    27  UNIT IN THE SCHOOLS WHICH THE STUDENTS ATTEND, IN MOBILE
    28  INSTRUCTIONAL UNITS LOCATED ON THE GROUNDS OF SUCH SCHOOLS OR IN
    29  ANY ALTERNATIVE SETTING MUTUALLY AGREED UPON BY THE SCHOOL AND
    30  THE INTERMEDIATE UNIT, TO THE EXTENT PERMITTED BY THE
    20030H0564B2474                  - 8 -     

     1  CONSTITUTION OF THE UNITED STATES AND THE CONSTITUTION OF THE
     2  COMMONWEALTH OF PENNSYLVANIA.
     3     SUCH AUXILIARY SERVICES SHALL BE PROVIDED DIRECTLY BY THE
     4  INTERMEDIATE UNITS AND NO AUXILIARY SERVICES PRESENTLY PROVIDED
     5  TO PUBLIC SCHOOL STUDENTS BY THE INTERMEDIATE UNITS AND/OR
     6  SCHOOL DISTRICTS BY MEANS OF STATE OR LOCAL REVENUES, DURING THE
     7  SCHOOL YEAR 1974-1975, SHALL BE ELIMINATED. NO SCHOOL DISTRICTS
     8  SHALL BE REQUIRED, PURSUANT TO ANY SECTION OF THIS ACT, TO OFFER
     9  AUXILIARY SERVICES PROVIDED BY ANY OTHER SCHOOL DISTRICTS WITHIN
    10  SUCH INTERMEDIATE UNITS.
    11     (D)  ALLOCATIONS. IN JULY OF 1977 AND ANNUALLY THEREAFTER IN
    12  JULY, THE SECRETARY OF EDUCATION SHALL ALLOCATE TO EACH
    13  INTERMEDIATE UNIT AN AMOUNT EQUAL TO THE NUMBER OF NONPUBLIC
    14  SCHOOL STUDENTS AS OF OCTOBER 1 OF THE PRECEDING SCHOOL YEAR WHO
    15  ARE ENROLLED IN NONPUBLIC SCHOOLS WITHIN THE INTERMEDIATE UNIT
    16  TIMES SEVENTY-TWO DOLLARS ($72). THE SECRETARY OF EDUCATION
    17  SHALL INCREASE THIS FIGURE ON A PROPORTIONATE BASIS WHENEVER
    18  THERE IS AN INCREASE IN THE MEDIAN ACTUAL INSTRUCTION EXPENSE
    19  PER WADM AS DEFINED IN CLAUSE (12.1) OF SECTION 2501 OF THIS
    20  ACT. THE COMMONWEALTH SHALL PAY TO EACH INTERMEDIATE UNIT
    21  FIFTEEN PER CENTUM (15%) OF ITS ALLOCATION ON AUGUST 1, SEVENTY-
    22  FIVE PER CENTUM (75%) ON OCTOBER 1, AND THE REMAINING TEN PER
    23  CENTUM (10%) ON THE FIRST DAY OF FEBRUARY.
    24     (E)  LIMITATIONS. THE INTERMEDIATE UNIT SHALL NOT USE MORE
    25  THAN SIX PER CENTUM (6%) OF THE FUNDS IT RECEIVES FOR
    26  ADMINISTRATION OR EIGHTEEN PER CENTUM (18%) FOR RENTAL OF
    27  FACILITIES. THE DEPARTMENT OF EDUCATION SHALL NOT USE MORE THAN
    28  ONE PER CENTUM (1%) OF THE FUNDS IT ALLOCATES UNDER THIS SECTION
    29  FOR ADMINISTRATIVE EXPENSES. IF ALL FUNDS ALLOCATED BY THE
    30  INTERMEDIATE UNITS TO ADMINISTRATION, OR RENTAL FACILITIES ARE
    20030H0564B2474                  - 9 -     

     1  NOT EXPENDED FOR THOSE PURPOSES, SUCH FUNDS MAY BE USED FOR THE
     2  PROGRAM COSTS.
     3     (F)  INTEREST. THERE SHALL BE NO ADJUSTMENT IN THE ALLOCATION
     4  AS PROVIDED IN SUBSECTION (D) BECAUSE OF INTEREST EARNED ON THE
     5  ALLOCATIONS BY THE INTERMEDIATE UNITS. INTEREST SO EARNED SHALL
     6  BE USED FOR THE PURPOSE OF THIS SECTION BUT SHALL NOT BE SUBJECT
     7  TO THE LIMITATIONS OF SUBSECTION (E).
     8     (G)  PRELIMINARY BUDGET. ANNUALLY, EACH INTERMEDIATE UNIT
     9  SHALL SUBMIT TO THE SECRETARY A PRELIMINARY BUDGET ON OR BEFORE
    10  JANUARY 31 AND A FINAL BUDGET ON OR BEFORE JUNE 15, FOR THE
    11  SUCCEEDING YEAR; AND SHALL FILE A FINAL FINANCIAL REPORT ON OR
    12  BEFORE OCTOBER 31 FOR THE PRECEDING YEAR.
    13     SECTION 4.  ARTICLE XII-A OF THE ACT IS REPEALED.
    14     SECTION 5.  SECTION 1376 OF THE ACT, AMENDED JUNE 7, 1993
    15  (P.L.49, NO.16), JUNE 30, 1995 (P.L.220, NO.26) AND JUNE 22,
    16  2001 (P.L.530, NO.35), IS AMENDED TO READ:
    17     SECTION 1376.  COST OF TUITION AND MAINTENANCE OF CERTAIN
    18  EXCEPTIONAL CHILDREN IN APPROVED INSTITUTIONS.--(A)  WHEN ANY
    19  CHILD BETWEEN SCHOOL ENTRY AGE AND TWENTY-ONE (21) YEARS OF AGE
    20  AND RESIDENT IN THIS COMMONWEALTH, WHO IS BLIND OR DEAF, OR HAS
    21  CEREBRAL PALSY AND/OR NEUROLOGICAL IMPAIRMENT AND/OR MUSCULAR
    22  DYSTROPHY AND/OR IS MENTALLY RETARDED AND/OR HAS A SERIOUS
    23  EMOTIONAL DISTURBANCE AND/OR HAS AUTISM/PERVASIVE DEVELOPMENTAL
    24  DISORDER AND IS ENROLLED, WITH THE APPROVAL OF THE DEPARTMENT OF
    25  EDUCATION, AS A PUPIL IN AN APPROVED PRIVATE SCHOOL APPROVED BY
    26  THE DEPARTMENT OF EDUCATION, IN ACCORDANCE WITH STANDARDS AND
    27  REGULATIONS PROMULGATED BY THE STATE BOARD OF EDUCATION, THE
    28  SCHOOL DISTRICT IN WHICH SUCH CHILD IS RESIDENT OR, FOR STUDENTS
    29  PLACED BY A CHARTER SCHOOL, THE CHARTER SCHOOL IN WHICH THE
    30  STUDENT WAS ENROLLED SHALL PAY THE GREATER OF EITHER TWENTY PER
    20030H0564B2474                 - 10 -     

     1  CENTUM (20%) OF THE ACTUAL AUDITED COST OF TUITION AND
     2  MAINTENANCE OF SUCH CHILD IN SUCH SCHOOL, AS DETERMINED BY THE
     3  DEPARTMENT OF EDUCATION, OR ITS "TUITION CHARGE PER ELEMENTARY
     4  PUPIL" OR ITS "TUITION CHARGE PER HIGH SCHOOL PUPIL," AS
     5  CALCULATED PURSUANT TO SECTION 2561, AND THE COMMONWEALTH SHALL
     6  PAY, OUT OF FUNDS APPROPRIATED TO THE DEPARTMENT FOR SPECIAL
     7  EDUCATION, THE BALANCE DUE FOR THE COSTS OF SUCH CHILD'S TUITION
     8  AND MAINTENANCE, AS DETERMINED BY THE DEPARTMENT. FOR THE SCHOOL
     9  YEARS 1989-1990, 1990-1991 AND 1991-1992, THE SCHOOL DISTRICT
    10  PAYMENT SHALL BE NO GREATER THAN FORTY PERCENT (40%) OF THE
    11  ACTUAL AUDITED COSTS OF TUITION AND MAINTENANCE OF SUCH CHILD IN
    12  SUCH SCHOOL. FOR THE 1992-1993 SCHOOL YEAR AND EACH SCHOOL YEAR
    13  THEREAFTER, THE SCHOOL DISTRICT OR CHARTER SCHOOL PAYMENT SHALL
    14  BE THE GREATER OF FORTY PERCENT (40%) OF THE ACTUAL AUDITED
    15  COSTS OF TUITION AND MAINTENANCE OF SUCH CHILD IN SUCH SCHOOL,
    16  AS DETERMINED BY THE DEPARTMENT OF EDUCATION, OR ITS "TUITION
    17  CHARGE PER ELEMENTARY PUPIL" OR ITS "TUITION CHARGE PER HIGH
    18  SCHOOL PUPIL," AS CALCULATED PURSUANT TO SECTION 2561, AND THE
    19  COMMONWEALTH SHALL PAY, OUT OF FUNDS APPROPRIATED TO THE
    20  DEPARTMENT FOR APPROVED PRIVATE SCHOOLS, THE BALANCE DUE FOR THE
    21  COSTS OF SUCH CHILD'S TUITION AND MAINTENANCE, AS DETERMINED BY
    22  THE DEPARTMENT. THE DEPARTMENT WILL CREDIT THE DISTRICT OF
    23  RESIDENCE WITH AVERAGE DAILY MEMBERSHIP FOR SUCH CHILD
    24  CONSISTENT WITH THE RULES OF PROCEDURE DEVELOPED IN ACCORDANCE
    25  WITH SECTION 2501. IF THE RESIDENCE OF SUCH CHILD IN A
    26  PARTICULAR SCHOOL DISTRICT CANNOT BE DETERMINED, THE
    27  COMMONWEALTH SHALL PAY, OUT OF MONEYS APPROPRIATED TO THE
    28  DEPARTMENT FOR SPECIAL EDUCATION, THE WHOLE COST OF TUITION AND
    29  MAINTENANCE OF SUCH CHILD. [THE DEPARTMENT OF EDUCATION SHALL BE
    30  PROVIDED WITH SUCH FINANCIAL DATA FROM APPROVED PRIVATE SCHOOLS
    20030H0564B2474                 - 11 -     

     1  AS MAY BE NECESSARY TO DETERMINE THE REASONABLENESS OF COSTS FOR
     2  TUITION AND ROOM AND BOARD CONCERNING PENNSYLVANIA RESIDENT
     3  APPROVED REIMBURSED STUDENTS. THE DEPARTMENT OF EDUCATION SHALL
     4  EVALUATE SUCH DATA AND SHALL DISALLOW ANY COST DEEMED
     5  UNREASONABLE. ANY COSTS DEEMED UNREASONABLE BY THE DEPARTMENT OF
     6  EDUCATION FOR DISALLOWANCE SHALL BE CONSIDERED AN ADJUDICATION
     7  WITHIN THE MEANING OF TITLE 2 OF THE PA.C.S. (RELATING TO
     8  ADMINISTRATIVE LAW AND PROCEDURE) AND REGULATIONS PROMULGATED
     9  THEREUNDER.]
    10     (B)  WHEN ANY PERSON LESS THAN SCHOOL ENTRY AGE OR MORE THAN
    11  TWENTY-ONE (21) YEARS OF AGE AND RESIDENT IN THIS COMMONWEALTH,
    12  WHO IS BLIND OR DEAF, OR HAS CEREBRAL PALSY AND/OR HAS
    13  NEUROLOGICAL IMPAIRMENT AND/OR HAS MUSCULAR DYSTROPHY, OR HAS
    14  AUTISM/PERVASIVE DEVELOPMENTAL DELAY, AND IS ENROLLED, WITH THE
    15  APPROVAL OF THE DEPARTMENT OF EDUCATION, AS A PUPIL IN AN
    16  APPROVED PRIVATE SCHOOL APPROVED BY THE DEPARTMENT OF EDUCATION,
    17  THE COMMONWEALTH SHALL PAY TO SUCH SCHOOL, OUT OF MONEYS
    18  APPROPRIATED TO THE DEPARTMENT FOR SPECIAL EDUCATION, THE ACTUAL
    19  AUDITED COST OF TUITION AND MAINTENANCE OF SUCH PERSON, AS
    20  DETERMINED BY THE DEPARTMENT OF EDUCATION, SUBJECT TO REVIEW AND
    21  APPROVAL IN ACCORDANCE WITH STANDARDS AND REGULATIONS
    22  PROMULGATED BY THE STATE BOARD OF EDUCATION IN ACCORDANCE WITH
    23  SUBSECTION (B.1), AND IN ADDITION, IN THE CASE OF ANY CHILD LESS
    24  THAN SCHOOL ENTRY AGE, WHO IS BLIND, THE COST, AS DETERMINED BY
    25  THE DEPARTMENT OF EDUCATION OF INSTRUCTING THE PARENT OF SUCH
    26  BLIND CHILD IN CARING FOR SUCH CHILD.
    27     (B.1)  FOR THE 2004-2005 SCHOOL YEAR AND EACH SCHOOL YEAR
    28  THEREAFTER, AN APPROVED PRIVATE SCHOOL SHALL SUBMIT TO THE
    29  DEPARTMENT OF EDUCATION ITS BUDGETED COSTS FOR THE UPCOMING
    30  SCHOOL YEAR. BASED UPON THIS INFORMATION AND THE PRIOR YEAR'S
    20030H0564B2474                 - 12 -     

     1  SETTLED AUDIT, THE DEPARTMENT OF EDUCATION SHALL DEVELOP AN
     2  INTERIM REIMBURSEMENT RATE FOR THE APPROVED PRIVATE SCHOOL. THE
     3  DEPARTMENT OF EDUCATION SHALL PROVIDE THE APPROVED PRIVATE
     4  SCHOOL WITH MONTHLY PAYMENTS IN ADVANCE OF THE FINAL COST
     5  SETTLEMENT AS PROVIDED FOR IN SUBSECTION (C.2). THE DEPARTMENT
     6  OF EDUCATION SHALL ADOPT FINAL REIMBURSEMENT RATES BASED ON THE
     7  FINAL COST SETTLEMENT. THE DEPARTMENT OF EDUCATION MAY WITHHOLD
     8  A PORTION OF SUCH PAYMENTS NOT EXCEEDING FIVE PERCENT (5%) OF
     9  SUCH PAYMENT, PENDING FINAL COST SETTLEMENT. IN NO EVENT SHALL
    10  EITHER THE PAYMENTS MADE IN ADVANCE OF THE FINAL COST SETTLEMENT
    11  OR FINAL REIMBURSEMENTS BASED ON THE FINAL COST SETTLEMENT MADE
    12  BY THE DEPARTMENT OF EDUCATION EXCEED THE APPROPRIATION
    13  AVAILABLE FOR APPROVED PRIVATE SCHOOLS.
    14     [(C)  EACH APPROVED PRIVATE SCHOOL, PRIOR TO THE START OF THE
    15  SCHOOL YEAR, SHALL SUBMIT TO THE DEPARTMENT SUCH INFORMATION AS
    16  THE DEPARTMENT MAY REQUIRE IN ORDER TO ESTABLISH AN ESTIMATE OF
    17  REIMBURSABLE COSTS. BASED UPON THIS INFORMATION, ANY OTHER DATA
    18  DEEMED NECESSARY BY THE DEPARTMENT AND IN ACCORDANCE WITH
    19  DEPARTMENT STANDARDS, THE DEPARTMENT SHALL DEVELOP FOR EACH
    20  APPROVED PRIVATE SCHOOL AN ESTIMATE OF REIMBURSABLE COSTS. BASED
    21  UPON SUCH ESTIMATE, THE DEPARTMENT SHALL PROVIDE EACH APPROVED
    22  PRIVATE SCHOOL WITH MONTHLY PAYMENTS IN ADVANCE OF DEPARTMENT
    23  AUDIT. THE DEPARTMENT MAY WITHHOLD A PORTION OF SUCH PAYMENTS
    24  NOT EXCEEDING FIVE PERCENT (5%) OF SUCH PAYMENT, PENDING FINAL
    25  AUDIT. IN NO EVENT SHALL EITHER THE ADVANCE PAYMENTS OR FINAL
    26  REIMBURSEMENT MADE BY THE DEPARTMENT FOLLOWING AUDIT EXCEED THE
    27  APPROPRIATION AVAILABLE FOR APPROVED PRIVATE SCHOOLS.]
    28     (C.1)  ANY FUNDS REMAINING FROM THE APPROPRIATION LINE ITEMS
    29  "FOR SPECIAL EDUCATION - APPROVED PRIVATE SCHOOLS" OR FOR
    30  PENNSYLVANIA CHARTER SCHOOLS FOR THE DEAF AND BLIND FROM THE
    20030H0564B2474                 - 13 -     

     1  GENERAL APPROPRIATIONS ACTS FOR FISCAL YEARS 1978-1979 AND EACH
     2  FISCAL YEAR THEREAFTER SHALL BE TRANSFERRED BY THE STATE
     3  TREASURER INTO A RESTRICTED ACCOUNT (CONTINUING APPROPRIATION)
     4  FOR AUDIT RESOLUTION WHICH IS HEREBY ESTABLISHED. THE DEPARTMENT
     5  OF EDUCATION SHALL ALSO DEPOSIT INTO THIS RESTRICTED ACCOUNT ANY
     6  FUNDS RETURNED TO OR RECOVERED BY THE DEPARTMENT FROM APPROVED
     7  PRIVATE SCHOOLS OR CHARTERED SCHOOLS FOR OVERPAYMENTS DURING
     8  FISCAL YEARS 1978-1979 AND EACH FISCAL YEAR THEREAFTER. THE
     9  FUNDS IN THE RESTRICTED ACCOUNT ARE HEREBY APPROPRIATED UPON
    10  APPROVAL OF THE GOVERNOR TO THE DEPARTMENT OF EDUCATION FOR
    11  PAYMENTS TO APPROVED PRIVATE SCHOOLS FOR AUDIT RESOLUTIONS FOR
    12  FISCAL YEARS 1978-1979 AND EACH FISCAL YEAR THEREAFTER. FUNDS IN
    13  THIS RESTRICTED ACCOUNT SHALL NOT BE SUBJECT TO THE LIMITATIONS
    14  IN SUBSECTION [(C)] (B.1) WHICH PROHIBIT ADVANCE PAYMENTS AND
    15  FINAL REIMBURSEMENT FROM EXCEEDING THE APPROPRIATION AVAILABLE
    16  FOR APPROVED PRIVATE SCHOOLS. DURING THE 1995-1996 FISCAL YEAR
    17  AND DURING EACH FISCAL YEAR THEREAFTER, THE DEPARTMENT OF
    18  EDUCATION SHALL REVIEW THE ACTIVITY IN THE RESTRICTED ACCOUNT
    19  AND MAY RECOMMEND THAT THE GOVERNOR AUTHORIZE THE LAPSING INTO
    20  THE GENERAL FUND OF ANY FUNDS THAT ARE ESTIMATED NOT TO BE
    21  NEEDED FOR AUDIT RESOLUTION.
    22     (C.2)  THE DEPARTMENT OF EDUCATION SHALL ESTABLISH PROCEDURES
    23  AND AUDIT STANDARDS TO GOVERN THE SCOPE OF REPORTABLE COSTS, THE
    24  METHODS USED TO EXAMINE COSTS AND DETERMINE ALLOWABILITY AND
    25  TIMELINESS OF COST REPORTING. FOR THE 2004-2005 SCHOOL YEAR AND
    26  EACH SCHOOL YEAR THEREAFTER, COST REPORTS SHALL BE PREPARED BY
    27  AN APPROVED PRIVATE SCHOOL AND AUDITED BY THE APPROVED PRIVATE
    28  SCHOOL'S INDEPENDENT PUBLIC ACCOUNTANT. SUCH COST REPORTS SHALL
    29  BE PREPARED IN ACCORDANCE WITH ESTABLISHED PROCEDURES AND AUDIT
    30  STANDARDS AND DELIVERED TO THE DEPARTMENT OF EDUCATION WITHIN
    20030H0564B2474                 - 14 -     

     1  SIX (6) MONTHS AFTER THE CONCLUSION OF THE SCHOOL YEAR. THE
     2  DEPARTMENT OF EDUCATION SHALL HAVE SIX (6) MONTHS TO PROCESS
     3  THESE COST REPORTS AND SETTLE ANY OUTSTANDING PAYMENTS DUE TO OR
     4  FROM THE APPROVED PRIVATE SCHOOL. NOTHING IN THIS SUBSECTION
     5  SHALL BE CONSTRUED TO PRECLUDE THE DEPARTMENT OF EDUCATION FROM
     6  CONDUCTING ITS OWN AUDITS ON A PERIODIC BASIS. WHERE THE
     7  DEPARTMENT OF EDUCATION CONDUCTS SUCH AUDITS, THE AUDITS MUST BE
     8  COMPLETED WITHIN ONE (1) YEAR OF THE COST REPORT DEADLINE AND
     9  MAY NOT DELAY THE ALLOWABLE PERIOD FOR SETTLEMENT OF ANY
    10  PAYMENTS DUE TO OR FROM THE APPROVED PRIVATE SCHOOL. AUDITS OF
    11  COST REPORTS SUBMITTED FOR SCHOOL YEARS PRIOR TO THE 2004-2005
    12  SCHOOL YEAR SHALL BE COMPLETED IN A MANNER CONSISTENT WITH PRIOR
    13  AUDIT PRACTICES.
    14     (D)  NO PRIVATE INSTITUTION RECEIVING PAYMENT IN ACCORDANCE
    15  WITH THIS SECTION SHALL IMPOSE ANY CHARGE ON THE STUDENT AND/OR
    16  PARENTS WHO ARE PENNSYLVANIA APPROVED REIMBURSABLE RESIDENTS FOR
    17  A PROGRAM OF INDIVIDUALIZED INSTRUCTION AND MAINTENANCE
    18  APPROPRIATE TO THE CHILD'S NEEDS; EXCEPT THAT CHARGES FOR
    19  SERVICES NOT PART OF SUCH PROGRAM MAY BE MADE IF AGREED TO BY
    20  THE PARENTS.
    21     [(E)  (1)  THE EDUCATION COMMITTEES OF THE SENATE AND HOUSE
    22  OF REPRESENTATIVES ARE DIRECTED TO JOINTLY EXAMINE THE ISSUES OF
    23  THE FUNDING OF APPROVED PRIVATE SCHOOLS AND SPECIAL EDUCATION
    24  STUDENTS' ACCESS TO APPROVED PRIVATE SCHOOLS AS PART OF THE FULL
    25  CONTINUUM OF SPECIAL EDUCATION PLACEMENTS. THE COMMITTEES'
    26  EXAMINATION SHOULD ADDRESS, AT A MINIMUM, THE FOLLOWING ISSUES:
    27     (I)  THE FUNDING METHODOLOGY WHICH SUPPORTS THE SCHOOL
    28  DISTRICT'S RESPONSIBILITY FOR INDIVIDUALIZED, APPROPRIATE
    29  EDUCATIONAL SERVICES TO SPECIAL EDUCATION STUDENTS THROUGH
    30  ACCESS TO THE MOST COMPREHENSIVE CONTINUUM OF EDUCATIONAL
    20030H0564B2474                 - 15 -     

     1  OPTIONS AND SETTINGS.
     2     (II)  THE ROLE OF THE APPROVED PRIVATE SCHOOL IN THE MANDATED
     3  CONTINUUM OF SPECIAL EDUCATION SERVICES AVAILABLE TO STUDENTS IN
     4  PENNSYLVANIA.
     5     (III)  THE RELATIVE ROLES OF THE DEPARTMENT OF EDUCATION AND
     6  SCHOOL DISTRICTS TO ENSURE FREE APPROPRIATE PUBLIC EDUCATION
     7  (FAPE) THROUGH ADEQUATE FUNDING AND APPROPRIATE DISTRIBUTION OF
     8  COMPREHENSIVE SERVICES.
     9     (IV)  THE PROVISIONS OF THE INDIVIDUALS WITH DISABILITIES
    10  EDUCATION ACT (IDEA) (P.L.101-476), THE CORDERO COURT ORDERS,
    11  THIS ACT AND 22 PA. CODE CHS. 14 AND 342 AS THEY RELATE TO THE
    12  PROVISION OF PROGRAMS AND SERVICES TO SPECIAL EDUCATION STUDENTS
    13  SHOULD BE CAREFULLY REVIEWED AS THEY PERTAIN TO APPROVED PRIVATE
    14  SCHOOLS, CONTINUUM OF PLACEMENT OPTIONS, FUNDING, FAPE AND OTHER
    15  PERTINENT ISSUES.
    16     (2)  THE COMMITTEES SHALL REPORT BACK TO THE GENERAL ASSEMBLY
    17  BY NOVEMBER 15, 1993, WITH LEGISLATIVE AND/OR ADMINISTRATIVE
    18  RECOMMENDATIONS. THE COMMITTEES MAY HOLD SUCH MEETINGS AND
    19  HEARINGS AS THEY DEEM APPROPRIATE TO ACCOMPLISH THE PROVISIONS
    20  OF THIS SUBSECTION.]
    21     SECTION 6.  SECTION 1376.1 OF THE ACT, AMENDED JUNE 7, 1993
    22  (P.L.49, NO.16), IS AMENDED TO READ:
    23     SECTION 1376.1.  ACTUAL COST OF TUITION AND MAINTENANCE OF
    24  CERTAIN EXCEPTIONAL CHILDREN IN THE FOUR CHARTERED SCHOOLS FOR
    25  EDUCATION OF THE DEAF AND THE BLIND.--(A)  THE FOLLOWING TERM,
    26  WHENEVER USED OR REFERRED TO IN THIS SECTION, SHALL HAVE THE
    27  FOLLOWING MEANING. "CHARTERED SCHOOL" SHALL MEAN ANY OF THE FOUR
    28  (4) CHARTERED SCHOOLS FOR THE EDUCATION OF THE DEAF OR THE
    29  BLIND: THE PENNSYLVANIA SCHOOL FOR THE DEAF; THE OVERBROOK
    30  SCHOOL FOR THE BLIND; THE WESTERN PENNSYLVANIA SCHOOL FOR BLIND
    20030H0564B2474                 - 16 -     

     1  CHILDREN; AND THE WESTERN PENNSYLVANIA SCHOOL FOR THE DEAF.
     2     (B)  WHEN ANY CHILD OF SCHOOL AGE RESIDENT IN THIS
     3  COMMONWEALTH, WHO IS BLIND OR DEAF, IS ENROLLED WITH THE
     4  APPROVAL OF THE DEPARTMENT OF EDUCATION AS A PUPIL IN ANY OF THE
     5  FOUR (4) CHARTERED SCHOOLS IN ACCORDANCE WITH STANDARDS AND
     6  REGULATIONS PROMULGATED BY THE STATE BOARD OF EDUCATION, THE
     7  SCHOOL DISTRICT IN WHICH SUCH CHILD IS RESIDENT SHALL PAY THE
     8  GREATER OF EITHER TWENTY PERCENT (20%) OF THE ACTUAL COST OF
     9  TUITION AND MAINTENANCE OF SUCH CHILD IN SUCH INSTITUTION, AS
    10  DETERMINED BY THE DEPARTMENT OF EDUCATION; OR ITS "TUITION
    11  CHARGE PER ELEMENTARY PUPIL" OR ITS "TUITION CHARGE PER HIGH
    12  SCHOOL PUPIL," AND THE COMMONWEALTH SHALL PAY, OUT OF FUNDS
    13  APPROPRIATED TO THE DEPARTMENT FOR SPECIAL EDUCATION, THE
    14  BALANCE DUE FOR THE COSTS OF SUCH CHILD'S TUITION AND
    15  MAINTENANCE, AS DETERMINED BY THE DEPARTMENT. FOR THE SCHOOL
    16  YEARS 1989-90, 1990-91 AND 1991-92, THE SCHOOL DISTRICT PAYMENT
    17  SHALL BE NO GREATER THAN FORTY PERCENT (40%) OF THE ACTUAL
    18  AUDITED COSTS OF TUITION AND MAINTENANCE OF SUCH CHILD IN SUCH
    19  SCHOOL. FOR THE 1992-1993 SCHOOL YEAR AND EACH SCHOOL YEAR
    20  THEREAFTER, THE SCHOOL DISTRICT PAYMENT SHALL BE THE GREATER OF
    21  FORTY PERCENT (40%) OF THE ACTUAL AUDITED COSTS OF TUITION AND
    22  MAINTENANCE OF SUCH CHILD IN SUCH SCHOOL, AS DETERMINED BY THE
    23  DEPARTMENT OF EDUCATION, OR ITS "TUITION CHARGE PER ELEMENTARY
    24  PUPIL" OR ITS "TUITION CHARGE PER HIGH SCHOOL PUPIL," AND THE
    25  COMMONWEALTH SHALL PAY OUT OF FUNDS APPROPRIATED TO THE
    26  DEPARTMENT FOR CHARTERED SCHOOLS THE BALANCE DUE FOR THE COSTS
    27  OF SUCH CHILD'S TUITION AND MAINTENANCE, AS DETERMINED BY THE
    28  DEPARTMENT. THE DEPARTMENT WILL CREDIT THE DISTRICT OF RESIDENCE
    29  WITH AVERAGE DAILY MEMBERSHIP FOR SUCH CHILD CONSISTENT WITH THE
    30  RULES OF PROCEDURE DEVELOPED IN ACCORDANCE WITH SECTION 2501. IF
    20030H0564B2474                 - 17 -     

     1  THE RESIDENCE OF SUCH CHILD IN A PARTICULAR SCHOOL DISTRICT
     2  CANNOT BE DETERMINED, THE COMMONWEALTH SHALL PAY, OUT OF MONEYS
     3  APPROPRIATED TO THE DEPARTMENT FOR SPECIAL EDUCATION, THE WHOLE
     4  COST OF TUITION AND MAINTENANCE OF SUCH CHILD. [THE DEPARTMENT
     5  OF EDUCATION SHALL BE PROVIDED WITH SUCH FINANCIAL DATA FROM
     6  EACH OF THE CHARTERED SCHOOLS AS MAY BE NECESSARY TO DETERMINE
     7  THE REASONABLENESS OF CHARGES FOR TUITION AND ROOM AND BOARD OF
     8  EACH OF THE CHARTERED SCHOOLS MADE ON PENNSYLVANIA RESIDENT
     9  APPROVED STUDENTS. THE DEPARTMENT OF EDUCATION SHALL EVALUATE
    10  SUCH DATA AND SHALL DISALLOW ANY CHARGES DEEMED UNREASONABLE.
    11  ANY CHARGE DEEMED UNREASONABLE BY THE DEPARTMENT OF EDUCATION
    12  FOR DISALLOWANCE SHALL BE CONSIDERED AN ADJUDICATION WITHIN THE
    13  MEANING OF TITLE 2 OF THE PA.C.S. (RELATING TO ADMINISTRATIVE
    14  LAW AND PROCEDURE) AND REGULATIONS PROMULGATED THEREUNDER.]
    15     (C)  WHEN ANY PERSON LESS THAN SCHOOL AGE RESIDENT IN THIS
    16  COMMONWEALTH WHO IS BLIND OR DEAF IS ENROLLED, WITH THE APPROVAL
    17  OF THE DEPARTMENT OF EDUCATION, AS A RESIDENTIAL PUPIL IN ANY OF
    18  THE FOUR (4) CHARTERED SCHOOLS, THE COMMONWEALTH SHALL PAY TO
    19  THE SCHOOL, OUT OF MONEYS APPROPRIATED TO THE DEPARTMENT FOR
    20  SPECIAL EDUCATION, THE ACTUAL COST OF TUITION AND MAINTENANCE OF
    21  SUCH PERSON, AS DETERMINED BY THE DEPARTMENT OF EDUCATION,
    22  SUBJECT TO REVIEW AND APPROVAL IN ACCORDANCE WITH STANDARDS AND
    23  REGULATIONS PROMULGATED BY THE STATE BOARD OF EDUCATION IN
    24  ACCORDANCE WITH SUBSECTION (E), AND IN ADDITION, IN THE CASE OF
    25  ANY CHILD LESS THAN SCHOOL AGE, WHO IS BLIND, THE COST, AS
    26  DETERMINED BY THE DEPARTMENT OF EDUCATION OF INSTRUCTING THE
    27  PARENT OF SUCH BLIND CHILD IN CARING FOR SUCH CHILD.
    28     (D)  NONE OF THE CHARTERED SCHOOLS RECEIVING PAYMENT IN
    29  ACCORDANCE WITH THIS SECTION SHALL IMPOSE ANY CHARGE ON THE
    30  STUDENT AND/OR PARENTS WHO ARE APPROVED REIMBURSABLE RESIDENTS
    20030H0564B2474                 - 18 -     

     1  FOR A PROGRAM OF INSTRUCTION AND MAINTENANCE APPROPRIATE TO THE
     2  CHILD'S NEEDS; EXCEPT THAT CHARGES FOR PROGRAMS NOT PART OF THE
     3  NORMAL SCHOOL YEAR MAY BE MADE.
     4     (E)  FOR THE 2004-2005 SCHOOL YEAR AND EACH SCHOOL YEAR
     5  THEREAFTER, A CHARTERED SCHOOL SHALL SUBMIT TO THE DEPARTMENT OF
     6  EDUCATION ITS BUDGETED COSTS FOR THE UPCOMING SCHOOL YEAR. BASED
     7  UPON THIS INFORMATION AND THE PRIOR YEAR'S SETTLED AUDIT, THE
     8  DEPARTMENT OF EDUCATION SHALL DEVELOP AN INTERIM REIMBURSEMENT
     9  RATE FOR THE CHARTERED SCHOOL. THE DEPARTMENT OF EDUCATION SHALL
    10  PROVIDE THE CHARTERED SCHOOL WITH MONTHLY PAYMENTS IN ADVANCE OF
    11  THE FINAL COST SETTLEMENT AS PROVIDED FOR IN SUBSECTION (F). THE
    12  DEPARTMENT OF EDUCATION SHALL ADOPT FINAL REIMBURSEMENT RATES
    13  BASED ON THE FINAL COST SETTLEMENT. THE DEPARTMENT OF EDUCATION
    14  MAY WITHHOLD A PORTION OF SUCH PAYMENTS NOT EXCEEDING FIVE
    15  PERCENT (5%) OF SUCH PAYMENT, PENDING FINAL COST SETTLEMENT. IN
    16  NO EVENT SHALL EITHER THE PAYMENTS MADE IN ADVANCE OF THE FINAL
    17  COST SETTLEMENT OR FINAL REIMBURSEMENTS BASED ON THE FINAL COST
    18  SETTLEMENT MADE BY THE DEPARTMENT OF EDUCATION EXCEED THE
    19  APPROPRIATION AVAILABLE FOR CHARTERED SCHOOLS.
    20     (F)  THE DEPARTMENT OF EDUCATION SHALL ESTABLISH PROCEDURES
    21  AND AUDIT STANDARDS TO GOVERN THE SCOPE OF REPORTABLE COSTS, THE
    22  METHODS USED TO EXAMINE COSTS AND DETERMINE ALLOWABILITY AND
    23  TIMELINESS OF COST REPORTING. FOR THE 2004-2005 SCHOOL YEAR AND
    24  EACH SCHOOL YEAR THEREAFTER, COST REPORTS SHALL BE PREPARED BY A
    25  CHARTERED SCHOOL AND AUDITED BY THE CHARTERED SCHOOL'S
    26  INDEPENDENT PUBLIC ACCOUNTANT. SUCH COST REPORTS SHALL BE
    27  PREPARED IN ACCORDANCE WITH ESTABLISHED PROCEDURES AND AUDIT
    28  STANDARDS AND DELIVERED TO THE DEPARTMENT OF EDUCATION WITHIN
    29  SIX (6) MONTHS AFTER THE CONCLUSION OF THE SCHOOL YEAR. THE
    30  DEPARTMENT OF EDUCATION SHALL HAVE SIX (6) MONTHS TO PROCESS
    20030H0564B2474                 - 19 -     

     1  THESE COST REPORTS AND SETTLE ANY OUTSTANDING PAYMENTS DUE TO OR
     2  FROM THE CHARTERED SCHOOL. NOTHING IN THIS SUBSECTION SHALL BE
     3  CONSTRUED TO PRECLUDE THE DEPARTMENT OF EDUCATION FROM
     4  CONDUCTING ITS OWN AUDITS ON A PERIODIC BASIS. WHERE THE
     5  DEPARTMENT OF EDUCATION CONDUCTS SUCH AUDITS, THE AUDITS MUST BE
     6  COMPLETED WITHIN ONE (1) YEAR OF THE COST REPORT DEADLINE AND
     7  MAY NOT DELAY THE ALLOWABLE PERIOD FOR SETTLEMENT OF ANY
     8  PAYMENTS DUE TO OR FROM THE CHARTERED SCHOOL. AUDITS OF COST
     9  REPORTS SUBMITTED FOR SCHOOL YEARS PRIOR TO THE 2004-2005 SCHOOL
    10  YEAR SHALL BE COMPLETED IN A MANNER CONSISTENT WITH PRIOR AUDIT
    11  PRACTICES.
    12     SECTION 7.  SECTION 1501-C OF THE ACT, AMENDED JUNE 29, 2002
    13  (P.L.524, NO.88), IS REENACTED AND AMENDED TO READ:
    14  SECTION 1501-C.  DEFINITIONS.
    15     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    16  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    17  CONTEXT CLEARLY INDICATES OTHERWISE:
    18     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    19  COMMONWEALTH.
    20     "ELIGIBLE STUDENT."  A RESIDENT OF THIS COMMONWEALTH WHO IS
    21  ENROLLED IN [THIRD, FOURTH, FIFTH OR SIXTH] KINDERGARTEN THROUGH
    22  EIGHTH GRADE IN A SCHOOL ENTITY AND IS DEEMED ELIGIBLE PURSUANT
    23  TO SECTION 1502-C(B).
    24     "ELIGIBILITY TEST."  THE PENNSYLVANIA SYSTEM OF SCHOOL
    25  ASSESSMENT OR A COMMERCIALLY PREPARED, STANDARDIZED ACHIEVEMENT
    26  TEST APPROVED BY THE DEPARTMENT OF EDUCATION. A LIST OF APPROVED
    27  TESTS UNDER THIS ARTICLE SHALL BE PUBLISHED ANNUALLY IN THE
    28  PENNSYLVANIA BULLETIN.
    29     "GRANT."  A GRANT AWARDED TO A GRANT RECIPIENT UNDER THIS
    30  ARTICLE.
    20030H0564B2474                 - 20 -     

     1     "GRANT RECIPIENT."  A RESIDENT OF THIS COMMONWEALTH WHO IS A
     2  PARENT, GUARDIAN OR PERSON IN PARENTAL RELATION TO AN ELIGIBLE
     3  STUDENT.
     4     "PROGRAM."  THE EDUCATION SUPPORT SERVICES PROGRAM
     5  ESTABLISHED IN SECTION 1502-C.
     6     "PROVIDER."  A SCHOOL ENTITY, AN INSTITUTION OF HIGHER
     7  EDUCATION, A NONPROFIT OR FOR-PROFIT ORGANIZATION OR A CERTIFIED
     8  TEACHER EMPLOYED BY A SCHOOL ENTITY, THAT IS APPROVED BY THE
     9  DEPARTMENT OF EDUCATION TO PROVIDE EDUCATION SUPPORT SERVICES.
    10     "SCHOOL ENTITY."  ANY OF THE FOLLOWING LOCATED IN THIS
    11  COMMONWEALTH: A SCHOOL DISTRICT, INTERMEDIATE UNIT, JOINT SCHOOL
    12  DISTRICT, AREA VOCATIONAL-TECHNICAL SCHOOL, CHARTER SCHOOL,
    13  INDEPENDENT SCHOOL, LICENSED PRIVATE ACADEMIC SCHOOL, ACCREDITED
    14  SCHOOL, A SCHOOL REGISTERED UNDER SECTION 1327(B), THE SCOTLAND
    15  SCHOOL FOR VETERANS' CHILDREN OR THE SCRANTON SCHOOL FOR THE
    16  DEAF.
    17     SECTION 8.  SECTIONS 1502-C AND 1503-C, OF THE ACT, ADDED MAY
    18  17, 2001 (P.L.4, NO.4), ARE REENACTED TO READ:
    19  SECTION 1502-C.  ESTABLISHMENT OF PROGRAM.
    20     (A)  ESTABLISHMENT.--THE EDUCATION SUPPORT SERVICES PROGRAM
    21  IS ESTABLISHED WITHIN THE DEPARTMENT TO PROVIDE INDIVIDUAL OR
    22  SMALL GROUP INSTRUCTION IN READING AND MATHEMATICS TO STRENGTHEN
    23  THE SKILLS THAT AN ELIGIBLE STUDENT NEEDS TO ACHIEVE THE
    24  STANDARDS IN 22 PA. CODE CH. 4 (RELATING TO ACADEMIC STANDARDS
    25  AND ASSESSMENT), WHICH SHALL BE PROVIDED AT A TIME OTHER THAN
    26  THE REGULARLY SCHEDULED SCHOOL HOURS.
    27     (B)  ELIGIBILITY.--THE DEPARTMENT SHALL UTILIZE THE
    28  PENNSYLVANIA SYSTEM OF SCHOOL ASSESSMENT TEST OR OTHER TEST
    29  RESULTS TO IDENTIFY ELIGIBLE STUDENTS UNDER THIS ARTICLE. SCORES
    30  USED TO DETERMINE ELIGIBLE STUDENTS IN EACH GRADE SHALL BE
    20030H0564B2474                 - 21 -     

     1  PUBLISHED ANNUALLY IN THE PENNSYLVANIA BULLETIN.
     2     (C)  APPROVAL.--A PROVIDER MUST BE APPROVED BY THE DEPARTMENT
     3  IN ORDER TO PROVIDE EDUCATION SUPPORT SERVICES UNDER THIS
     4  ARTICLE.
     5  SECTION 1503-C.  APPLICATION AND APPROVAL.
     6     (A)  APPLICATION.--A PROSPECTIVE GRANT RECIPIENT SHALL APPLY
     7  ANNUALLY TO THE DEPARTMENT FOR A GRANT TO PURCHASE EDUCATION
     8  SUPPORT SERVICES FOR AN ELIGIBLE STUDENT FROM AN APPROVED
     9  PROVIDER IN A TIME AND MANNER PRESCRIBED BY THE DEPARTMENT.
    10     (B)  REQUIRED INFORMATION.--AN APPLICATION SUBMITTED UNDER
    11  THIS SECTION SHALL INCLUDE VERIFICATION OF THE ELIGIBILITY TEST
    12  RESULTS AND SUCH OTHER INFORMATION AS THE DEPARTMENT MAY
    13  REQUIRE.
    14     SECTION 9.  SECTION 1504-C OF THE ACT, ADDED MAY 17, 2001
    15  (P.L.4, NO.4), IS REENACTED AND AMENDED TO READ:
    16  SECTION 1504-C.  POWERS AND DUTIES OF THE DEPARTMENT.
    17     THE DEPARTMENT SHALL:
    18         (1)  ESTABLISH CRITERIA TO ANNUALLY IDENTIFY ELIGIBLE
    19     STUDENTS [IN GRADES THREE, FOUR, FIVE AND SIX] TO PARTICIPATE
    20     IN THE PROGRAM UNDER SECTION 1502-C.
    21         (2)  APPROVE PROVIDERS OF EDUCATION SUPPORT SERVICES.
    22         (3)  ADOPT STANDARDS, PROCEDURES AND GUIDELINES TO BE
    23     USED TO APPROVE PROVIDERS OF EDUCATION SUPPORT SERVICES UNDER
    24     THIS ARTICLE.
    25         (4)  AWARD GRANTS TO A GRANT RECIPIENT IN AN AMOUNT NOT
    26     TO EXCEED $500 PER FISCAL YEAR FOR EACH ELIGIBLE STUDENT.
    27         (5)  ESTABLISH MINIMUM QUALIFICATIONS FOR INDIVIDUALS
    28     UTILIZED BY PROVIDERS OF EDUCATION SUPPORT SERVICES.
    29         (6)  ESTABLISH PERIODS DURING WHICH APPLICATIONS WILL BE
    30     REVIEWED TO ACCOMMODATE THE DATES WHEN RESULTS OF APPROVED
    20030H0564B2474                 - 22 -     

     1     ELIGIBILITY TESTS BECOME AVAILABLE.
     2     SECTION 10.  SECTION 1505-C OF THE ACT, AMENDED JUNE 29, 2002
     3  (P.L.524, NO.88), IS REENACTED TO READ:
     4  SECTION 1505-C.  PROVIDERS.
     5     A PROSPECTIVE PROVIDER SHALL SUBMIT AN APPLICATION TO THE
     6  DEPARTMENT FOR APPROVAL TO PROVIDE EDUCATION SUPPORT SERVICES
     7  UNDER THIS ARTICLE. THE APPLICATION SHALL INCLUDE A DESCRIPTION
     8  OF THE SERVICES TO BE PROVIDED, THE COST OF THE SERVICES, THE
     9  QUALIFICATION OF ALL INDIVIDUALS PROVIDING THOSE SERVICES,
    10  INCLUDING EVIDENCE OF COMPLIANCE WITH SECTION 111 AND WITH 23
    11  PA.C.S. § 6355 (RELATING TO REQUIREMENT), AND SUCH OTHER
    12  INFORMATION AS MAY BE REQUIRED BY THE DEPARTMENT.
    13     SECTION 11.  SECTION 1506-C OF THE ACT, ADDED MAY 17, 2001
    14  (P.L.4, NO.4), IS REENACTED AND AMENDED TO READ:
    15  SECTION 1506-C.  NOTIFICATION OF PROGRAM.
    16     A SCHOOL ENTITY IN THIS COMMONWEALTH WITH STUDENTS ENROLLED
    17  IN [THIRD, FOURTH, FIFTH OR SIXTH] KINDERGARTEN THROUGH EIGHTH
    18  GRADE SHALL NOTIFY PARENTS OF THE AVAILABILITY OF EDUCATION
    19  SUPPORT SERVICES AT SUCH TIME AS THE PARENTS RECEIVE THE RESULTS
    20  OF ANY ELIGIBILITY TEST.
    21     SECTION 12.  SECTIONS 1507-C, 1508-C, 1509-C, 1510-C AND
    22  1511-C OF THE ACT, ADDED MAY 17, 2001 (P.L.4, NO.4), ARE
    23  REENACTED TO READ:
    24  SECTION 1507-C.  PAYMENT OF GRANTS.
    25     (A)  CERTIFICATES.--A CERTIFICATE FOR EDUCATION SUPPORT
    26  SERVICES UNDER THIS ARTICLE SHALL BE ISSUED BY THE DEPARTMENT IN
    27  AN AMOUNT AUTHORIZING UP TO $500 FOR EACH ELIGIBLE STUDENT
    28  IDENTIFIED ON THE CERTIFICATE. THE CERTIFICATE SHALL BE ISSUED
    29  TO THE GRANT RECIPIENT AND SHALL BE VALID ONLY FOR THE FISCAL
    30  YEAR IN WHICH IT IS ISSUED. AFTER RECEIVING THE CERTIFICATE FROM
    20030H0564B2474                 - 23 -     

     1  A GRANT RECIPIENT, THE PROVIDER SHALL INCLUDE THE FOLLOWING
     2  INFORMATION ON THE CERTIFICATE: NAME OF ELIGIBLE STUDENT SERVED,
     3  TYPE OF INSTRUCTION, DATE AND LENGTH OF INSTRUCTION AND COST OF
     4  INSTRUCTION PROVIDED TO THE ELIGIBLE STUDENT. WHEN THE AMOUNT OF
     5  THE CERTIFICATE HAS BEEN UTILIZED OR WHEN THE ELIGIBLE STUDENT
     6  IS NO LONGER RECEIVING EDUCATION SUPPORT SERVICES FROM THE
     7  PROVIDER, THE PROVIDER SHALL RETURN THE COMPLETED CERTIFICATE TO
     8  THE GRANT RECIPIENT FOR SUBMISSION TO THE DEPARTMENT FOR
     9  PAYMENT. THE DEPARTMENT SHALL MAKE PAYMENT DIRECTLY TO THE GRANT
    10  RECIPIENT FOR THE AMOUNT DUE. GRANT RECIPIENTS MUST SEND ALL
    11  OUTSTANDING CERTIFICATES TO THE DEPARTMENT FOR PAYMENT NO LATER
    12  THAN 90 DAYS AFTER RECEIVING THE COMPLETED CERTIFICATE FROM THE
    13  PROVIDER.
    14     (B)  PENALTY FOR GRANT RECIPIENTS.--A GRANT RECIPIENT WHO
    15  KNOWINGLY DEFRAUDS THE COMMONWEALTH BY RECEIVING REIMBURSEMENT
    16  FOR EDUCATION SUPPORT SERVICES NOT RENDERED TO THE ELIGIBLE
    17  STUDENT AND GRANT RECIPIENT IDENTIFIED ON THE CERTIFICATE
    18  COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND SHALL, UPON
    19  CONVICTION, BE SENTENCED TO PAY A FINE OF NOT MORE THAN $1,000
    20  PER VIOLATION AND SHALL BE DISQUALIFIED FROM ELIGIBILITY FOR AN
    21  ADDITIONAL GRANT FOR A PERIOD OF NOT LESS THAN FIVE YEARS.
    22     (C)  PENALTY FOR PROVIDERS.--A PROVIDER THAT KNOWINGLY
    23  VIOLATES SECTION 1509-C OR KNOWINGLY DEFRAUDS THE COMMONWEALTH
    24  BY RECEIVING REIMBURSEMENT FOR EDUCATION SUPPORT SERVICES NOT
    25  RENDERED TO THE ELIGIBLE STUDENT AND GRANT RECIPIENT IDENTIFIED
    26  ON THE CERTIFICATE COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND
    27  SHALL, UPON CONVICTION, BE SENTENCED TO PAY A FINE OF NOT MORE
    28  THAN $1,000 PER VIOLATION AND SHALL BE BARRED FROM PARTICIPATION
    29  IN THE PROGRAM FOR NOT LESS THAN FIVE YEARS.
    30  SECTION 1508-C.  LIMITATIONS.
    20030H0564B2474                 - 24 -     

     1     (A)  AMOUNT.--THE AMOUNT OF GRANTS PROVIDED UNDER THIS
     2  ARTICLE IN A FISCAL YEAR SHALL BE LIMITED TO THE FUNDS
     3  APPROPRIATED FOR THAT PURPOSE. NO MORE THAN 10% OF THE TOTAL
     4  FUNDS APPROPRIATED FOR THIS PROGRAM IN ANY FISCAL YEAR SHALL BE
     5  AWARDED TO GRANT RECIPIENTS WITHIN A SPECIFIC SCHOOL DISTRICT
     6  EXCEPT THAT, IF THE DEPARTMENT DETERMINES THAT ALL SCHOOL
     7  ENTITIES IN THE COMMONWEALTH HAVE HAD AN OPPORTUNITY TO
     8  PARTICIPATE IN THE PROGRAM AND THAT FUNDS REMAIN AVAILABLE, IT
     9  MAY WAIVE THE 10% LIMITATION UNDER THIS SUBSECTION.
    10     (B)  AVAILABILITY OF FUNDS.--IN THE EVENT THAT THE FUNDS
    11  APPROPRIATED IN ANY FISCAL YEAR ARE INSUFFICIENT TO PROVIDE
    12  GRANTS TO ALL GRANT RECIPIENTS, GRANTS SHALL BE AWARDED ON A
    13  FIRST-COME, FIRST-SERVED BASIS. THE DEPARTMENT SHALL HOLD A
    14  PORTION OF THE FUNDS IN RESERVE TO ENSURE THAT MONEY IS
    15  AVAILABLE FOR EACH APPLICATION PERIOD ESTABLISHED UNDER SECTION
    16  1504-C(6).
    17  SECTION 1509-C.  CONFIDENTIALITY.
    18     NOTHING IN THIS ARTICLE SHALL AUTHORIZE THE DEPARTMENT, A
    19  SCHOOL ENTITY OR A PROVIDER TO RELEASE OR OTHERWISE UTILIZE
    20  STUDENT IDENTIFIABLE INFORMATION OR INDIVIDUAL STUDENT TEST
    21  SCORES FOR PURPOSES OTHER THAN THE ADMINISTRATION OF THIS
    22  ARTICLE.
    23  SECTION 1510-C.  NONTAXABLE INCOME.
    24     A GRANT RECEIVED BY A GRANT RECIPIENT SHALL NOT BE CONSIDERED
    25  TO BE TAXABLE INCOME FOR THE PURPOSES OF ARTICLE III OF THE ACT
    26  OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF
    27  1971.
    28  SECTION 1511-C.  APPLICABILITY.
    29     SERVICES PROVIDED UNDER THIS ARTICLE DO NOT CONSTITUTE
    30  TUTORING OR INSTRUCTION UNDER THE ACT OF JANUARY 28, 1988
    20030H0564B2474                 - 25 -     

     1  (P.L.24, NO.11), KNOWN AS THE PRIVATE ACADEMIC SCHOOLS ACT.
     2     SECTION 13.  THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
     3                            ARTICLE XV-D
     4            HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM 
     5  SECTION 1501-D.  DEFINITIONS.
     6     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
     7  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
     8  CONTEXT CLEARLY INDICATES OTHERWISE:
     9     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    10  COMMONWEALTH.
    11     "EXTENDED DAY SERVICES."  HEAD START AND CHILD-CARE SERVICES
    12  PROVIDED TO CHILDREN ELIGIBLE FOR HEAD START BY A HEAD START
    13  PROVIDER OR THROUGH A COLLABORATIVE AGREEMENT BETWEEN A HEAD
    14  START PROVIDER AND A LICENSED CHILD-CARE CENTER, OR A REGISTERED
    15  FAMILY OR GROUP DAY-CARE HOME FOR THOSE HOURS AND DAYS BEYOND
    16  THE HOURS FUNDED THROUGH THE FEDERAL HEAD START PROGRAM.
    17     "HEAD START."  A PROGRAM FUNDED UNDER THE FEDERAL HEAD START
    18  ACT ESTABLISHED BY THE OMNIBUS BUDGET RECONCILIATION ACT OF 1981
    19  (PUBLIC LAW 97-35, 95 STAT. 357) AND CARRIED OUT BY A HEAD START
    20  AGENCY OR DELEGATE AGENCY THAT PROVIDES ONGOING COMPREHENSIVE
    21  CHILD DEVELOPMENT SERVICES.
    22     "PROGRAM."  THE HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM
    23  ESTABLISHED IN SECTION 1502-D.
    24  SECTION 1502-D.  HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM.
    25     (A)  ESTABLISHMENT.--THE HEAD START SUPPLEMENTAL ASSISTANCE
    26  PROGRAM IS HEREBY ESTABLISHED TO PROVIDE HEAD START SERVICES TO
    27  ADDITIONAL ELIGIBLE CHILDREN AND TO PROVIDE EXTENDED DAY
    28  SERVICES THROUGH EXISTING HEAD START PROVIDERS.
    29     (B)  ADMINISTRATION.--THE DEPARTMENT SHALL ADMINISTER THE
    30  PROGRAM. SUCH ADMINISTRATION SHALL BE CONSISTENT WITH FEDERAL
    20030H0564B2474                 - 26 -     

     1  HEAD START GUIDELINES AND SHALL PROVIDE SUPPLEMENTAL FINANCIAL
     2  ASSISTANCE TO EXISTING PROVIDERS OF FEDERAL HEAD START SERVICES.
     3     (C)  COORDINATION.--THE DEPARTMENT, TO EVERY EXTENT POSSIBLE,
     4  SHALL COORDINATE THE ADMINISTRATION OF THE PROGRAM WITH THE
     5  DEPARTMENT OF PUBLIC WELFARE AND THE DEPARTMENT OF HEALTH. THE
     6  PURPOSE OF THIS COORDINATION SHALL BE TO:
     7         (1)  IDENTIFY EDUCATIONAL, CHILD-CARE OR OTHER SERVICES
     8     UNDER THE JURISDICTION OF THE DEPARTMENT OF PUBLIC WELFARE
     9     AND THE DEPARTMENT OF HEALTH THAT CAN AUGMENT OR IMPROVE THE
    10     SERVICES AVAILABLE THROUGH HEAD START PROVIDERS.
    11         (2)  PROVIDE TECHNICAL ASSISTANCE TO HEAD START PROVIDERS
    12     ESTABLISHING CHILD-CARE SERVICES IN ORDER TO OFFER EXTENDED
    13     DAY SERVICES.
    14         (3)  PROVIDE TECHNICAL ASSISTANCE TO HEAD START
    15     PROVIDERS, LICENSED CHILD-CARE CENTERS OR REGISTERED FAMILY
    16     OR GROUP DAY-CARE HOMES ENTERING INTO COLLABORATIVE
    17     AGREEMENTS IN ORDER TO OFFER EXTENDED DAY SERVICES.
    18     (D)  CRITERIA FOR FUNDING.--TO IMPLEMENT THE PROGRAM, THE
    19  DEPARTMENT SHALL REQUEST PROPOSALS FROM EXISTING HEAD START
    20  PROVIDERS AND MAY AWARD GRANTS OR ENTER INTO SERVICE CONTRACTS
    21  WITH EXISTING HEAD START PROVIDERS THAT MEET ALL OF THE
    22  FOLLOWING CRITERIA:
    23         (1)  DEMONSTRATE THE NEED FOR ADDITIONAL HEAD START
    24     SERVICES IN THE PROVIDER'S SERVICE AREA, WHETHER THE NEED IS
    25     DETERMINED BY THE PERCENTAGE OF ELIGIBLE CHILDREN WHO ARE NOT
    26     SERVED IN THE PROVIDER'S SERVICE AREA OR BY THE DEMAND FOR
    27     EXTENDED DAY SERVICES.
    28         (2)  DEMONSTRATE THE ABILITY TO EXPAND STAFF, SPACE OR
    29     SERVICES EITHER:
    30             (I)  WITHIN THE HEAD START PROGRAM; OR
    20030H0564B2474                 - 27 -     

     1             (II)  IN COOPERATION WITH LICENSED CHILD-CARE CENTERS
     2         OR REGISTERED FAMILY OR GROUP DAY-CARE HOMES
     3     TO SERVE ADDITIONAL CHILDREN OR TO PROVIDE EXTENDED DAY
     4     SERVICES.
     5         (3)  DEMONSTRATE THE ABILITY TO COMPLY WITH FEDERAL AND
     6     STATE REQUIREMENTS FOR CHILD-CARE SERVICE PROVIDERS IF THE
     7     HEAD START PROVIDER INTENDS TO PROVIDE EXTENDED DAY SERVICES.
     8         (4)  DEMONSTRATE THE ABILITY TO ENTER INTO A
     9     COLLABORATIVE AGREEMENT WITH A CHILD-CARE SERVICE PROVIDER IF
    10     THE HEAD START PROVIDER INTENDS TO ENTER INTO A COLLABORATIVE
    11     AGREEMENT WITH A LICENSED CHILD-CARE CENTER OR A REGISTERED
    12     FAMILY OR GROUP DAY-CARE HOME TO OFFER EXTENDED DAY SERVICES.
    13  SECTION 1503-D.  PRIORITY IN FUNDING.
    14     THE DEPARTMENT SHALL GIVE PRIORITY IN FUNDING TO HEAD START
    15  PROVIDERS APPLYING FOR GRANTS TO SERVE ADDITIONAL ELIGIBLE
    16  CHILDREN.
    17  SECTION 1504-D.  ANNUAL REPORT.
    18     THE DEPARTMENT SHALL COMPILE AN ANNUAL REPORT ON THE PROGRAM
    19  FOR SUBMISSION TO THE GOVERNOR, THE CHAIRMEN OF THE
    20  APPROPRIATIONS COMMITTEE AND THE EDUCATION COMMITTEE OF THE
    21  SENATE AND THE CHAIRMEN OF THE APPROPRIATIONS COMMITTEE AND
    22  EDUCATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE REPORT
    23  SHALL INCLUDE:
    24         (1)  THE NUMBER OF ELIGIBLE CHILDREN SERVED BY HEAD START
    25     AS OF THE EFFECTIVE DATE OF THIS ARTICLE.
    26         (2)  THE NUMBER OF ELIGIBLE CHILDREN SERVED BY THE
    27     PROGRAM DURING THE SCHOOL YEAR THAT BEGINS ONE YEAR AFTER THE
    28     EFFECTIVE DATE OF THIS ARTICLE AND EACH YEAR THEREAFTER.
    29         (3)  THE NUMBER OF EXTENDED DAY PROGRAMS AND THE NUMBER
    30     OF ELIGIBLE CHILDREN ENROLLED IN EXTENDED DAY PROGRAMS AS OF
    20030H0564B2474                 - 28 -     

     1     THE EFFECTIVE DATE OF THIS ARTICLE.
     2         (4)  THE NUMBER OF EXTENDED DAY PROGRAMS AND THE NUMBER
     3     OF ELIGIBLE CHILDREN ENROLLED IN EXTENDED DAY PROGRAMS DURING
     4     THE SCHOOL YEAR THAT BEGINS ONE YEAR AFTER THE EFFECTIVE DATE
     5     OF THIS ARTICLE AND EACH YEAR THEREAFTER.
     6         (5)  A SUMMARY OF THE TYPES OF ACTIVITIES FUNDED UNDER
     7     THE PROGRAM.
     8     SECTION 14.  SECTION 1705-B(H)(4) OF THE ACT, AMENDED JUNE
     9  29, 2002 (P.L.524, NO.88) AND DECEMBER 9, 2002 (P.L.1472,
    10  NO.187), IS AMENDED TO READ:
    11     SECTION 1705-B.  EDUCATION EMPOWERMENT DISTRICTS.--* * *
    12     (H)  * * *
    13     (4)  THE DEPARTMENT MAY UTILIZE UP TO $2,000,000 OF
    14  UNDISTRIBUTED FUNDS NOT EXPENDED, ENCUMBERED OR COMMITTED FROM
    15  APPROPRIATIONS FOR GRANTS AND SUBSIDIES MADE TO THE DEPARTMENT
    16  TO ASSIST SCHOOL DISTRICTS CERTIFIED AS AN EDUCATION EMPOWERMENT
    17  DISTRICT UNDER PARAGRAPH (3). THERE IS HEREBY ESTABLISHED A
    18  RESTRICTED ACCOUNT FROM WHICH PAYMENTS UNDER THIS PARAGRAPH
    19  SHALL BE PAID. FUNDS SHALL BE TRANSFERRED BY THE SECRETARY OF
    20  THE BUDGET TO THE RESTRICTED ACCOUNT TO THE EXTENT NECESSARY TO
    21  MAKE PAYMENTS UNDER THIS PARAGRAPH. FUNDS IN THE RESTRICTED
    22  ACCOUNT ARE HEREBY APPROPRIATED TO CARRY OUT THE PURPOSES OF
    23  THIS PARAGRAPH. THE SUBSIDY PAYMENT FROM THIS ACCOUNT SHALL BE
    24  UTILIZED TO SUPPLEMENT THE OPERATIONAL BUDGET OF THE ELIGIBLE
    25  SCHOOL DISTRICTS. THIS PARAGRAPH SHALL APPLY TO FISCAL YEARS
    26  2000-2001, 2001-2002 [AND], 2002-2003 AND 2003-2004 AND SHALL
    27  EXPIRE JUNE 30, [2003] 2004.
    28     SECTION 15.  SECTION 1709-B OF THE ACT, ADDED MAY 10, 2000
    29  (P.L.44, NO.16), IS REENACTED TO READ:
    30     SECTION 1709-B.  SCHOOL IMPROVEMENT GRANTS.--(A)  THE
    20030H0564B2474                 - 29 -     

     1  DEPARTMENT SHALL ESTABLISH A PROGRAM OF ANNUAL SCHOOL
     2  IMPROVEMENT GRANTS FOR SCHOOL DISTRICTS ON THE EDUCATION
     3  EMPOWERMENT LIST OR CERTIFIED AS AN EDUCATION EMPOWERMENT
     4  DISTRICT TO ASSIST IN THE IMPLEMENTATION OF THEIR SCHOOL
     5  DISTRICT IMPROVEMENT PLANS.
     6     (B)  GRANTS SHALL BE LIMITED TO THE AMOUNT APPROPRIATED FOR
     7  THAT PURPOSE.
     8     (C)  GRANTS SHALL BE PROVIDED ANNUALLY TO THE SCHOOL DISTRICT
     9  FOR USE AS DIRECTED BY THE SCHOOL DISTRICT EMPOWERMENT TEAM OR
    10  THE BOARD OF CONTROL IN IMPLEMENTING THE SCHOOL DISTRICT
    11  IMPROVEMENT PLAN DEVELOPED PURSUANT TO SECTIONS 1703-B AND 1706-
    12  B AS FOLLOWS:
    13     (1)  TO PURCHASE INSTRUCTIONAL MATERIALS, INCLUDING
    14  TEXTBOOKS, TECHNOLOGY AND RELATED EDUCATIONAL MATERIALS AND
    15  SUPPLIES.
    16     (2)  TO REDUCE CLASS SIZE IN KINDERGARTEN THROUGH GRADE
    17  THREE.
    18     (3)  TO ESTABLISH AFTER-SCHOOL, SUMMER AND WEEKEND PROGRAMS.
    19     (4)  TO ESTABLISH OR EXPAND FULL-DAY KINDERGARTEN PROGRAM.
    20     (5)  TO FUND CURRICULUM DEVELOPMENT.
    21     (6)  TO FUND ENHANCED STAFF PROFESSIONAL DEVELOPMENT.
    22     (7)  TO FUND ANY OTHER PROGRAM CONTAINED IN THE SCHOOL
    23  DISTRICT IMPROVEMENT PLAN.
    24     (D)  SUBJECT TO THE REQUIREMENTS OF THIS SECTION, EACH
    25  QUALIFYING SCHOOL DISTRICT SHALL RECEIVE A BASE ANNUAL GRANT OF
    26  FOUR HUNDRED FIFTY THOUSAND DOLLARS ($450,000) AND AN ADDITIONAL
    27  GRANT OF UP TO SEVENTY-FIVE DOLLARS ($75) PER AVERAGE DAILY
    28  MEMBERSHIP FOR THE PRIOR SCHOOL YEAR OF THE SCHOOL DISTRICT. THE
    29  SCHOOL DISTRICT OR THE BOARD OF CONTROL SHALL GIVE PRIORITY IN
    30  ALLOCATING THE GRANT FUNDING RECEIVED UNDER THIS SECTION TO THE
    20030H0564B2474                 - 30 -     

     1  INDIVIDUAL SCHOOLS IDENTIFIED PURSUANT TO SECTIONS 1703-B(B) AND
     2  1706-B(B).
     3     (E)  THE DEPARTMENT SHALL SET FORTH THE SPECIFIC ALLOWABLE
     4  USES FOR GRANT FUNDS AND PLACE CONDITIONS, AS NECESSARY, ON THE
     5  USE OF GRANT FUNDS. THE DEPARTMENT SHALL ESTABLISH
     6  ACCOUNTABILITY PROCEDURES AND AUDITING GUIDELINES TO ENSURE THAT
     7  GRANT FUNDS ARE UTILIZED IN ACCORDANCE WITH THE ALLOWABLE USES
     8  AND CONDITIONS.
     9     (F)  A SCHOOL DISTRICT RECEIVING A GRANT UNDER THIS SECTION
    10  SHALL BE REQUIRED TO MAINTAIN SEPARATE ACCOUNTS IN THAT SCHOOL
    11  DISTRICT'S BUDGET TO FACILITATE MONITORING THE USE OF THESE
    12  GRANT FUNDS. IN NO CASE SHALL A SCHOOL DISTRICT USE MORE THAN
    13  FIVE PER CENTUM OF THE GRANT FUNDS FOR ADMINISTRATIVE COSTS.
    14     (G)  THE DEPARTMENT SHALL REDUCE THE AMOUNT OF A STATE
    15  SUBSIDY PAYMENT TO A SCHOOL DISTRICT BY THE AMOUNT OF ANY GRANT
    16  FUNDS PROVIDED UNDER THIS SECTION IF THE SCHOOL DISTRICT DOES
    17  NOT USE THE GRANT FUNDS IN ACCORDANCE WITH THE ALLOWABLE USES
    18  AND CONDITIONS SET FORTH BY THE DEPARTMENT.
    19     SECTION 16.  SECTION 1714-B(G) OF THE ACT, ADDED MAY 10, 2000
    20  (P.L.44, NO.16), IS AMENDED TO READ:
    21     SECTION 1714-B.  MANDATE WAIVER PROGRAM.--* * *
    22     (G)  THE FOLLOWING PROVISIONS OF THIS ACT SHALL NOT BE
    23  SUBJECT TO WAIVER PURSUANT TO THIS SECTION: SECTIONS 108, 110,
    24  111, 321, 322, 323, 324, 325, 326, 327, 431, 436, 437, 440.1,
    25  443, 510, 513, 518, 527, 687, 688, 701.1, 708, 736, 737, 738,
    26  739, 740, 741, 752, 753, 755, 771, 776, 777, 808, 809, 810,
    27  1303(A), 1310, 1317, 1317.1, 1317.2, 1318, 1327, 1327.1, 1330,
    28  1332, 1361, 1366, 1501, 1502, 1513, 1517, 1518, 1521, 1523, 1546
    29  AND 1547; PROVISIONS PROHIBITING DISCRIMINATION; ARTICLES VI,
    30  XI, XI-A, XII, XIII-A, XIV AND XVII-A AND THIS ARTICLE.
    20030H0564B2474                 - 31 -     

     1     * * *
     2     SECTION 17.  SECTION 1913-A OF THE ACT, AMENDED OR ADDED JULY
     3  1, 1985 (P.L.103, NO.31), OCTOBER 20, 1988 (P.L.827, NO.110),
     4  JUNE 7, 1993 (P.L.49, NO.16) AND JUNE 22, 2001 (P.L.530, NO.35),
     5  IS AMENDED TO READ:
     6     Section 1913-A.  Financial Program; Reimbursement of
     7  Payments.--(a)  The plan submitted by the local sponsor shall
     8  set forth a financial program for the operation of the community
     9  college. The plan shall provide that the local sponsor shall
    10  appropriate or provide to the community college an amount at
    11  least equal to the community college's annual operating costs
    12  less the student tuition as determined in section 1908-A(a) less
    13  the Commonwealth's payment as determined in subsection (b)(1) of
    14  this section. The plan shall also provide that one-half of the
    15  annual capital expenses shall be appropriated or provided by the
    16  local sponsor to the community college. The local sponsor's
    17  appropriation for annual operating costs and annual capital
    18  expenses may in part be represented by real or personal property
    19  or services made available to the community college. The plan
    20  shall indicate whether the appropriation shall come from general
    21  revenues, loan funds, special tax levies or from other sources,
    22  including student tuitions.
    23     (b)  (1)  The Commonwealth shall pay to a community college
    24  on behalf of the sponsor on account of its operating costs
    25  during the fiscal year from funds appropriated for that purpose
    26  an amount equal to:
    27     (i)  for the 1993-1994 fiscal year through the 2000-2001
    28  fiscal year, the lesser of such college's variable State share
    29  ceiling as determined in clause (1.3) or such college's
    30  equivalent full-time student reimbursement as determined in
    20030H0564B2474                 - 32 -     

     1  clause (1.4); and
     2     (ii)  for the 2001-2002 fiscal year and each fiscal year
     3  thereafter, the college's equivalent full-time student
     4  reimbursement as determined in clause (1.4).
     5     (1.2)  The Secretary of Education, in consultation with the
     6  community colleges, shall promulgate standards for credit
     7  courses and for noncredit courses that will be eligible for
     8  Commonwealth reimbursement. The standards shall specifically
     9  exclude from eligibility for reimbursement any course or program
    10  in avocational or recreational pursuits. The standards shall be
    11  promulgated by the beginning of the 1994-1995 fiscal year. Until
    12  such standards are promulgated, no community college will be
    13  reimbursed for any credit course which was offered by such
    14  college as a noncredit course during the college's 1992-1993
    15  fiscal year.
    16     (1.3)  The variable State share ceiling of a community
    17  college shall be determined as follows:
    18     (i)  Subtract the taxable income per person of the local
    19  sponsor from the highest taxable income per person of any county
    20  in the Commonwealth.
    21     (ii)  Divide the amount determined under subclause (i) by the
    22  difference between the highest taxable income per person of any
    23  county in the Commonwealth and the lowest taxable income per
    24  person of any county in the Commonwealth.
    25     (iii)  Multiply the quotient determined under subclause (ii)
    26  by one-sixth.
    27     (iv)  Add one-third to the product determined under paragraph
    28  (iii).
    29     (v)  Multiply the sum determined under subclause (iv) by the
    30  community college's operating costs in the year for which
    20030H0564B2474                 - 33 -     

     1  reimbursement is being claimed.
     2     (vi)  The taxable income per person data used in the
     3  preceding calculation shall be data certified to the Secretary
     4  of Education by the Secretary of Revenue under section 2501(9.1)
     5  for school district local sponsors or data otherwise published
     6  by the Secretary of Revenue for a municipal local sponsor.
     7     (1.4)  The equivalent full-time student reimbursement of a
     8  community college shall be the sum of credit course, noncredit
     9  course and stipend reimbursements. These reimbursements shall be
    10  calculated using a reimbursement factor of one thousand and
    11  forty dollars ($1,040) for the 1993-1994 fiscal year, of one
    12  thousand eighty dollars ($1,080) for the 1994-1995 fiscal year
    13  and of one thousand one hundred eighty dollars ($1,180) for the
    14  1995-1996 fiscal year and one thousand and two hundred and ten
    15  dollars ($1,210) for the 1996-1997 fiscal year and one thousand
    16  two hundred sixty dollars ($1,260) for the 1997-1998 fiscal year
    17  and the 1998-1999 fiscal year and one thousand three hundred
    18  dollars ($1,300) for the 1999-2000 fiscal year and one thousand
    19  four hundred dollars ($1,400) for the 2000-2001 fiscal year and
    20  one thousand five hundred dollars ($1,500) for the 2001-2002
    21  fiscal year and for each year thereafter and shall be determined
    22  as follows:
    23     (i)  Credit course reimbursement shall be calculated by
    24  multiplying the reimbursement factor by the number of equivalent
    25  full-time students enrolled in credit courses as determined by
    26  an audit to be made in a manner prescribed by the State Board of
    27  Education. The following apply:
    28     (A)  Course enrollment is to be determined by the standards
    29  of the community college.
    30     (B)  Computer-based documentation or paper-based
    20030H0564B2474                 - 34 -     

     1  documentation may be used to verify enrollment.
     2     (C)  Enrollment in a program of study is to be determined
     3  solely by the declaration of the student.
     4     (ii)  Noncredit course reimbursement shall be calculated as
     5  follows:
     6     (A)  [eighty] Eighty percent (80%) of the reimbursement
     7  factor multiplied by the number of equivalent full-time students
     8  enrolled in eligible noncredit courses for the 1993-1994 fiscal
     9  year, as determined by the audit referred to in paragraph
    10  (i)[;].
    11     (B)  [seventy] Seventy EXCEPT AS PROVIDED IN CHAPTER 15 OF     <--
    12  THE ACT OF DECEMBER 18, 2001 (P.L.949, NO.114), KNOWN AS THE
    13  "WORKFORCE DEVELOPMENT ACT," SEVENTY percent (70%) of the
    14  reimbursement factor multiplied by the number of equivalent
    15  full-time students enrolled in eligible noncredit courses for
    16  the 1994-1995 fiscal year and for each year thereafter, as
    17  determined by the audit referred to in paragraph (i)[; or].
    18     (C)  [one] One hundred percent (100%) of the reimbursement
    19  factor multiplied by the number of equivalent full-time students
    20  enrolled in eligible noncredit public safety courses that
    21  provide training for volunteer firefighters and emergency
    22  medical services for the 1995-1996 fiscal year and for each year
    23  thereafter, as determined by the audit referred to in paragraph
    24  (i). In calculating the number of equivalent full-time students   <--
    25  enrolled in eligible noncredit courses, each fifteen hours of
    26  classroom work and laboratory work shall be equated to one
    27  semester credit for reimbursement purposes.
    28     (D)  Ninety percent (90%) of the reimbursement factor
    29  multiplied by the number of full-time students enrolled in
    30  eligible noncredit work force development courses; adult
    20030H0564B2474                 - 35 -     

     1  literacy courses, including, but not limited to, adult basic
     2  education, the general educational development (GED) diploma and
     3  English as a second language; and continuing professional
     4  education courses for the 2003-2004 fiscal year and for each
     5  year thereafter, as determined by the audit referred to in
     6  paragraph (i). For purposes of reimbursement under this section,
     7  "work force development course" shall have the meaning given in
     8  section 1502 of the act of December 18, 2001 (P.L.949, No.114),
     9  known as the Workforce Development Act.
    10     (E) (D)  A noncredit course is eligible for reimbursement if   <--
    11  any of the following apply:
    12     (I)  The course is in the area of public safety; adult basic
    13  education or adult literacy; work force development;
    14  occupational skills; academics; or a program for certification
    15  in accordance with standards established by statute, regulation
    16  or appropriate industry.
    17     (II)  Regardless of whether the instructor's compensation is
    18  paid directly by the community college or paid by an entity that
    19  contracts with the community college, the community college is
    20  responsible for selecting; supervising; and, if appropriate,
    21  dismissing the instructor.
    22     (F) (E)  Course enrollment is to be determined by the          <--
    23  standards of the community college.
    24     (iii)  Stipend reimbursement on account of a community
    25  college's operating costs for all equivalent full-time students
    26  enrolled in the following categories of two-year or less than
    27  two-year occupational or technical programs, shall be the sum of
    28  the following:
    29     (A)  One thousand one hundred dollars ($1,100) per full-time
    30  equivalent student enrolled in advanced technology programs. For
    20030H0564B2474                 - 36 -     

     1  the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
     2  reimbursement rate shall be calculated at one thousand one
     3  hundred seventy-five dollars ($1,175) per full-time equivalent
     4  student enrolled in advanced technology programs. For the fiscal
     5  year 1998-1999 and each year thereafter, the reimbursement rate
     6  shall be calculated at one thousand four hundred sixty dollars
     7  ($1,460) per full-time equivalent student enrolled in advanced
     8  technology programs. Advanced technology programs are programs
     9  using new or advanced technologies which hold promise for
    10  creating new job opportunities, including such fields as
    11  robotics, biotechnology, specialized materials and engineering
    12  and engineering-related programs.
    13     (B)  One thousand dollars ($1,000) per full-time equivalent
    14  student enrolled in programs designated as Statewide programs.
    15  For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
    16  reimbursement rate shall be calculated at one thousand seventy-
    17  five dollars ($1,075) per full-time equivalent student enrolled
    18  in programs designated as Statewide programs. For the fiscal
    19  year 1998-1999 and each year thereafter, the reimbursement rate
    20  shall be calculated at one thousand three hundred sixty dollars
    21  ($1,360) per full-time equivalent student enrolled in programs
    22  designated as Statewide programs. A Statewide program is a
    23  program which meets one or more of the following criteria:
    24     (I)  Program enrollment from out-of-sponsor area is twenty
    25  per cent or more of the enrollment for the program.
    26     (II)  A consortial arrangement exists with another community
    27  college to cooperatively operate a program or share regions in
    28  order to avoid unnecessary program duplication.
    29     (C)  Five hundred dollars ($500) per full-time equivalent
    30  student enrolled in other occupational or technical programs.
    20030H0564B2474                 - 37 -     

     1  For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
     2  reimbursement rate shall be calculated at five hundred seventy-
     3  five dollars ($575) per full-time equivalent student enrolled in
     4  other occupational or technical programs. For the fiscal year
     5  1998-1999 and each year thereafter, the reimbursement rate shall
     6  be calculated at eight hundred sixty dollars ($860) per full-
     7  time equivalent student enrolled in other occupational or
     8  technical programs.
     9     (2)  For the 1993-1994 fiscal year, each community college
    10  shall be reimbursed under clause (1) in an amount which is at
    11  least equal to a one percent (1%) increase over its 1992-1993
    12  operating cost and stipend reimbursement. In no case shall a
    13  community college's 1993-1994 reimbursement under clause (1) per
    14  full-time equivalent student, insofar as said reimbursement does
    15  not include a proportionate share attributable to stipend
    16  reimbursement under clause (1.4)(iii), exceed its 1992-1993
    17  operating cost reimbursement per full-time equivalent student by
    18  more than ten percent (10%).
    19     (2.1)  For the 1994-1995 fiscal year, each community college
    20  shall be reimbursed under clause (1) in an amount which is at
    21  least equal to a one percent (1%) increase over its 1993-1994
    22  reimbursement under clause (1). In no case shall a community
    23  college's 1994-1995 reimbursement under clause (1) per full-time
    24  equivalent student, insofar as said reimbursement does not
    25  include the proportionate share attributable to stipend
    26  reimbursement under clause (1.4)(iii), exceed its 1993-1994
    27  reimbursement under clause (1) per full-time equivalent student,
    28  insofar as said reimbursement does not include the proportionate
    29  share attributable to stipend reimbursement under clause
    30  (1.4)(iii) by more than ten percent (10%).
    20030H0564B2474                 - 38 -     

     1     (2.2)  For the 1995-1996 fiscal year, each community college
     2  shall be reimbursed under clause (1) in an amount which is at
     3  least equal to its 1994-1995 reimbursement under clause (1).
     4     (3)  The [Secretary] Department of Education [annually] shall
     5  [establish] promulgate regulations establishing criteria to be
     6  used to determine eligibility of programs for each of the above
     7  stipend categories[,]. The department shall approve programs for
     8  funding [in the following fiscal year] according to these
     9  [criteria and] regulations. The Secretary of Education shall
    10  submit to chairmen of the committees of education in the House
    11  of Representatives and Senate a report setting forth [the
    12  established criteria,] any programs approved for funding under
    13  these [criteria] regulations and the recipient community
    14  colleges.
    15     (4)  Each community college shall maintain such accounting
    16  and student attendance records on generally accepted auditing
    17  principles and standards [as will lend themselves to
    18  satisfactory audit]. Beginning with the 2003-2004 fiscal year
    19  and each year thereafter, the department must complete an audit
    20  of a community college for a school year within one year after
    21  the completion of that school year. If the department does not
    22  meet the time requirement of this clause, the community college
    23  affected shall be required to forfeit reimbursement only for an
    24  intentional violation or for a violation of previously cited and
    25  resolved findings. The Commonwealth shall pay to a community
    26  college on behalf of the sponsor on account of its capital
    27  expenses an amount equal to one-half of such college's annual
    28  capital expenses from funds appropriated for that purpose to the
    29  extent that said capital expenses have been approved as herein
    30  provided.
    20030H0564B2474                 - 39 -     

     1     (5)  For purposes of determining Commonwealth reimbursement
     2  of operating costs, Federally funded expenditures for those
     3  programs in which the Commonwealth participates in the cost
     4  shall be deducted from total operating expenditures to determine
     5  net reimbursable operating costs.
     6     (c)  Capital expenses shall mean only such expenses as are
     7  incurred with the approval of the Department of Education for
     8  amortization of the purchase of lands; purchase, construction or
     9  improvement of buildings for administrative and instructional
    10  purposes, including libraries; the lease of lands or buildings,
    11  or for rentals to an authority for the same purpose; and for the
    12  purchase, lease or rental of capital equipment and furniture
    13  used for instructional or administrative purposes. Capital
    14  expenses shall include library books and complementary audio-
    15  visual equipment purchased during the first five years after
    16  establishment. For the purpose of calculating the Commonwealth's
    17  share of operating, and capital costs incurred prior to the
    18  actual admission of students to a community college, all such
    19  costs shall be interpreted as capital costs. No costs and
    20  expenses incurred in the establishment, construction, operation
    21  or maintenance of dormitories, or the equipment or furnishings
    22  for such purposes, shall be included in capital expenses or
    23  operating costs for purposes of Commonwealth reimbursement. The
    24  provisions of this subsection shall not prevent the Commonwealth
    25  from reimbursing a community college for capital expenses
    26  incurred prior to the effective date of this act. Such
    27  reimbursement must have approval of the Secretary of Education.
    28     (d)  The State Board of Education shall adopt policies,
    29  standards, rules and regulations for determining reimbursable
    30  capital expenses and operating costs, and the Department of
    20030H0564B2474                 - 40 -     

     1  Education shall approve such expenses and costs for the purpose
     2  of reimbursement by the Commonwealth.
     3     (e)  The State Board of Education shall apply for, receive
     4  and administer, subject to any applicable regulations or laws of
     5  the Federal Government or any agency thereof, any Federal
     6  grants, appropriations, allocations and programs to fulfill the
     7  purpose of this act.
     8     (f)  All administrative personnel, faculty, and other
     9  employes of the community colleges in the Commonwealth shall be
    10  eligible for inclusion in the Public School Employees'
    11  Retirement System of Pennsylvania, the Pennsylvania State
    12  Employees' Retirement System, or any independent retirement
    13  program approved by the Board of Trustees of a community
    14  college, and the Secretary of Education.
    15     (g)  The community college in the Commonwealth shall be
    16  eligible for participation in the act of July 5, 1947 (P.L.1217,
    17  No.498), known as the "State Public School Building Authority
    18  Act," and [the act of May 2, 1945 (P.L.382, No.164), known as
    19  the "Municipality Authorities Act of 1945."] 53 Pa.C.S. Ch. 56
    20  (relating to municipal authorities).
    21     (h)  In all cases where the board of trustees of any
    22  community college fails to pay or provide for the payment of any
    23  rental or rentals due the State Public School Building Authority
    24  or any municipality authority for any period in accordance with
    25  the terms of any lease entered into between the board of
    26  trustees of any community college and the State Public School
    27  Building Authority or any municipality authority, or fails to
    28  pay or to provide for the payment of any other indebtedness when
    29  due, upon written notice thereof from the State Public School
    30  Building Authority or any municipality authority, or in such
    20030H0564B2474                 - 41 -     

     1  cases where an audit reveals any unpaid indebtedness due, the
     2  Secretary of Education shall notify the board of trustees of its
     3  obligation and shall withhold out of any State appropriation
     4  that may be due to such community college an amount equal to the
     5  amount of rental or rentals owing by such board of trustees to
     6  the State Public School Building Authority or any municipality
     7  authority, or an amount equal to the amount of any other
     8  indebtedness owing by such board of trustees, and shall pay over
     9  the amount or amounts so withheld to the State Public School
    10  Building Authority or any municipality authority or to
    11  whomsoever any other indebtedness is due and owing.
    12     (i)  The amount payable to each community college Board of
    13  Trustees on behalf of the sponsor shall be paid in the year in
    14  which the costs and expenses are incurred in quarterly
    15  installments and the Secretary of Education shall draw his
    16  requisition quarterly upon the State Treasurer in favor of each
    17  community college for the amount of reimbursement to which it is
    18  entitled. Reimbursement or payment by the Commonwealth for the
    19  operational expenses and capital equipment and the furnishings
    20  shall be made on or before the end of the fiscal quarters ended
    21  on September 30, December 31, March 31 and June 30 of each
    22  Commonwealth fiscal year. Reimbursements or payments shall be
    23  made semi-annually for the Commonwealth's share of the annual
    24  rentals to an authority or the sponsor or sinking fund or debt-
    25  service payments and other leases upon submission of a community
    26  college requisition in the form required by the Commonwealth,
    27  the reimbursement or payment to be made from funds appropriated
    28  for that purpose. Money that is appropriated under this
    29  subsection but not expended by a community college Board of
    30  Trustees shall not be distributed to a local sponsor.
    20030H0564B2474                 - 42 -     

     1     (j)  In no event shall the payments or final reimbursement
     2  made by the department following audit exceed the appropriation
     3  available for community colleges.
     4     (k)  (1)  Unless otherwise prescribed by the State Board of
     5  Education, the Commonwealth's fiscal audits of community
     6  colleges under this section shall be conducted in accordance
     7  with "Government Auditing Standards," latest revision,
     8  promulgated by the United States General Accounting Office.
     9  Written audit reports will be produced and will be sent to the
    10  community college by the Commissioner of Postsecondary/Higher
    11  Education. Any cost disallowed under findings contained in the
    12  audit report shall be considered an adjudication within the
    13  meaning of 2 Pa.C.S. (relating to administrative law and
    14  procedure) and regulations promulgated thereunder.
    15     (2)  The Secretary of Education is hereby specifically
    16  authorized and shall be required to resolve audit findings
    17  involving disallowed costs that are contested by community
    18  colleges except for audit findings that involve mathematical
    19  errors, violation of regulations or alleged illegal activities.
    20  The proposed resolution of the Secretary of Education shall not
    21  be subject to the provisions of 2 Pa.C.S. The Secretary of
    22  Education's notice to resolve audit findings shall be sent to
    23  the community college in writing. The Secretary of Education may
    24  resolve the audit findings by reducing the disallowed costs
    25  related thereto in whole or in part.
    26     (3)  The Secretary of Education's notice to resolve an audit
    27  finding by reducing or eliminating the disallowed costs must be
    28  made contingent upon the community college developing and
    29  implementing a corrective action plan to address the audit
    30  finding. The community college must submit a corrective action
    20030H0564B2474                 - 43 -     

     1  plan to the Secretary of Education within 60 business days after
     2  receipt of the Secretary of Education's written notice to
     3  resolve the audit finding. The Secretary of Education shall
     4  approve, reject or alter the plan submitted by the community
     5  college within thirty (30) days of submission. After the
     6  community college receives written notice of approval or agrees
     7  in writing to the Secretary of Education's alterations of the
     8  corrective action plan, said plan shall be implemented and shall
     9  be binding on the community college. Implementation of the
    10  approved or agreed upon corrective action plan will be verified
    11  by an audit conducted by the department no later than the end of
    12  the fiscal year following the fiscal year during which the plan
    13  is implemented. If no agreed upon corrective action plan is in
    14  place within one year after the date of the Secretary of
    15  Education's written notice to resolve audit findings or if the
    16  agreed upon corrective action has not been implemented within
    17  one year after the date of the Secretary of Education's written
    18  notice to resolve the audit findings, then the Secretary of
    19  Education is authorized to adjust payments to the community
    20  college to collect any amounts due based upon the findings
    21  contained in the audit report that was issued to the college by
    22  the commissioner.
    23     (4)  The department shall deduct any amounts due the
    24  Commonwealth as a result of audit findings that are resolved
    25  under this subsection from any future payment due to the
    26  community college from the Commonwealth. The Secretary of
    27  Education is authorized to approve a payment schedule in cases
    28  where immediate repayment of the full amount due the
    29  Commonwealth would jeopardize the ability of the community
    30  college to continue operations.
    20030H0564B2474                 - 44 -     

     1     (5)  Resolution authority provided to the Secretary of
     2  Education in this subsection shall be limited to disallowed cost
     3  findings relating to policy and/or administrative practices. The
     4  resolution authority shall not be used for audit findings in
     5  which the audited community college data and documentation is in
     6  error, where a violation of applicable law or regulation is
     7  found or where criminal violations are suspected by the
     8  Commonwealth auditors and brought to the Secretary of
     9  Education's attention in writing. Notwithstanding the
    10  limitations of this subsection, until June 30, 1995, the
    11  Secretary of Education is authorized to resolve audit findings
    12  involving disallowed costs for fiscal years prior to and
    13  including 1992-1993 when such disallowed costs result from
    14  violation of regulations.
    15     (6)  The department, through the Secretary of Education, is
    16  authorized to issue guidelines for the operation of the
    17  community college educational and financial programs. The
    18  department shall amend these guidelines on an annual basis to
    19  reflect the department's position on issues that require
    20  resolution under this subsection.
    21     (7)  The provisions of subsection (d) are repealed insofar as
    22  they are inconsistent with the provisions of this subsection.
    23     [(l)  For the fiscal year 1992-1993, if insufficient funds     <--
    24  are appropriated to make Commonwealth payments pursuant to this
    25  section, such payments shall be made on a pro rata basis.]        <--
    26     Section 3.  The act is amended by adding a section to read:    <--
    27     SECTION 2 18.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:  <--
    28     Section 1916-A.  Community College Nonmandated Capital         <--
    29  Fund.--(a)  The Community College Nonmandated Capital Fund is
    30  established as a separate fund in the State Treasury.
    20030H0564B2474                 - 45 -     

     1     (b)  The sources of the fund are as follows:
     2     (1)  Reimbursements repaid by community colleges to the
     3  Commonwealth pursuant to audits under section 1913-A and
     4  regulations under that section.
     5     (2)  Appropriations.
     6     (3)  Earnings on money in the fund.
     7     (c)  The fund shall be used for nonmandated capital projects
     8  in community colleges. Guidelines for disbursement shall be
     9  developed by the Department of Education in consultation with
    10  community colleges.
    11     (d)  The money in the fund is continuously appropriated to
    12  the fund and shall not lapse at the end of any fiscal year.
    13     SECTION 1916-A.  NONMANDATED CAPITAL.--REIMBURSEMENTS REPAID   <--
    14  BY COMMUNITY COLLEGES TO THE COMMONWEALTH PURSUANT TO AUDITS
    15  UNDER SECTION 1913-A AND REGULATIONS UNDER THAT SECTION SHALL BE
    16  USED ONLY FOR NONMANDATED CAPITAL PROJECTS IN COMMUNITY
    17  COLLEGES. GUIDELINES FOR DISBURSEMENT SHALL BE DEVELOPED BY THE
    18  DEPARTMENT OF EDUCATION IN CONSULTATION WITH COMMUNITY COLLEGES.
    19     SECTION 1917-A.  EFFECTIVE DATE OF REGULATIONS.--REGULATIONS   <--
    20  PROMULGATED UNDER THIS ARTICLE SHALL TAKE EFFECT AT THE
    21  BEGINNING OF THE SCHOOL YEAR FOLLOWING THEIR PROMULGATION.
    22     SECTION 19.  THE DEFINITIONS OF "EDUCATIONAL IMPROVEMENT       <--
    23  ORGANIZATION" AND "SCHOLARSHIP ORGANIZATION" IN SECTION 2002-B
    24  OF THE ACT, ADDED MAY 17, 2001 (P.L.4, NO.4), ARE AMENDED TO
    25  READ:
    26  SECTION 2002-B.  DEFINITIONS.
    27     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
    28  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    29  CONTEXT CLEARLY INDICATES OTHERWISE:
    30     * * *
    20030H0564B2474                 - 46 -     

     1     "EDUCATIONAL IMPROVEMENT ORGANIZATION."  A NONPROFIT ENTITY
     2  WHICH:
     3         (1)  IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION
     4     501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
     5     99-514, 26 U.S.C. § 1 ET SEQ.); AND
     6         (2)  CONTRIBUTES AT LEAST 80% OF ITS ANNUAL RECEIPTS AS
     7     GRANTS TO A PUBLIC SCHOOL FOR INNOVATIVE EDUCATIONAL
     8     PROGRAMS.
     9  FOR PURPOSES OF THIS DEFINITION, A NONPROFIT ENTITY
    10  "CONTRIBUTES" ITS ANNUAL CASH RECEIPTS WHEN IT EXPENDS OR
    11  OTHERWISE IRREVOCABLY ENCUMBERS THOSE FUNDS FOR EXPENDITURE
    12  DURING THE THEN CURRENT FISCAL YEAR OF THE NONPROFIT ENTITY OR
    13  DURING THE NEXT SUCCEEDING FISCAL YEAR OF THE NONPROFIT ENTITY.
    14     * * *
    15     "SCHOLARSHIP ORGANIZATION."  A NONPROFIT ENTITY WHICH:
    16         (1)  IS EXEMPT FROM FEDERAL TAXATION UNDER SECTION
    17     501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
    18     99-514, 26 U.S.C. § 1 ET SEQ.); AND
    19         (2)  CONTRIBUTES AT LEAST 80% OF ITS ANNUAL CASH RECEIPTS
    20     TO A SCHOLARSHIP PROGRAM.
    21  FOR PURPOSES OF THIS DEFINITION, A NONPROFIT ENTITY
    22  "CONTRIBUTES" ITS ANNUAL CASH RECEIPTS TO A SCHOLARSHIP PROGRAM
    23  WHEN IT EXPENDS OR OTHERWISE IRREVOCABLY ENCUMBERS THOSE FUNDS
    24  FOR DISTRIBUTION DURING THE THEN CURRENT FISCAL YEAR OF THE
    25  NONPROFIT ENTITY OR DURING THE NEXT SUCCEEDING FISCAL YEAR OF
    26  THE NONPROFIT ENTITY.
    27     * * *
    28     SECTION 20.  SECTION 2006-B OF THE ACT, ADDED MAY 17, 2001
    29  (P.L.4, NO.4), IS AMENDED TO READ:
    30  SECTION 2006-B.  LIMITATIONS.
    20030H0564B2474                 - 47 -     

     1     (A)  AMOUNT.--THE TOTAL AGGREGATE AMOUNT OF ALL TAX CREDITS
     2  APPROVED SHALL NOT EXCEED [$30,000,000] $36,000,000 IN A FISCAL
     3  YEAR. NO LESS THAN [$20,000,000] $24,000,000 OF THE TOTAL
     4  AGGREGATE AMOUNT SHALL BE USED TO PROVIDE TAX CREDITS FOR
     5  CONTRIBUTIONS FROM BUSINESS FIRMS TO SCHOLARSHIP ORGANIZATIONS.
     6  NO LESS THAN [$10,000,000] $12,000,000 OF THE TOTAL AGGREGATE
     7  AMOUNT SHALL BE USED TO PROVIDE TAX CREDITS FOR CONTRIBUTIONS
     8  FROM BUSINESS FIRMS TO EDUCATIONAL IMPROVEMENT ORGANIZATIONS.
     9     (B)  ACTIVITIES.--NO TAX CREDIT SHALL BE APPROVED FOR
    10  ACTIVITIES THAT ARE A PART OF A BUSINESS FIRM'S NORMAL COURSE OF
    11  BUSINESS.
    12     (C)  TAX LIABILITY.--A TAX CREDIT GRANTED FOR ANY ONE TAXABLE
    13  YEAR MAY NOT EXCEED THE TAX LIABILITY OF A BUSINESS FIRM.
    14     (D)  USE.--A TAX CREDIT NOT USED IN THE TAXABLE YEAR THE
    15  CONTRIBUTION WAS MADE MAY NOT BE CARRIED FORWARD OR CARRIED BACK
    16  AND IS NOT REFUNDABLE OR TRANSFERABLE.
    17     (E)  NONTAXABLE INCOME.--A SCHOLARSHIP RECEIVED BY AN
    18  ELIGIBLE STUDENT SHALL NOT BE CONSIDERED TO BE TAXABLE INCOME
    19  FOR THE PURPOSES OF ARTICLE III OF THE ACT OF MARCH 4, 1971
    20  (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
    21     SECTION 21.  SECTION 2502.8 OF THE ACT, AMENDED JUNE 22, 2001
    22  (P.L.530, NO. 35), IS REENACTED TO READ:
    23     SECTION 2502.8.  PAYMENTS ON ACCOUNT OF PUPILS ENROLLED IN
    24  VOCATIONAL CURRICULUMS.--(A)  FOR THE PURPOSE OF REIMBURSEMENT
    25  IN ACCORDANCE WITH THIS SECTION, VOCATIONAL CURRICULUMS ARE
    26  AGRICULTURE EDUCATION, DISTRIBUTIVE EDUCATION, HEALTH
    27  OCCUPATIONS EDUCATION, HOME ECONOMICS EDUCATION (GAINFUL),
    28  BUSINESS EDUCATION, TECHNICAL EDUCATION, TRADE AND INDUSTRIAL
    29  EDUCATION, OR ANY OTHER OCCUPATIONAL ORIENTED PROGRAM APPROVED
    30  BY THE SECRETARY OF EDUCATION.
    20030H0564B2474                 - 48 -     

     1     (B)  FOR THE 1981-1982 SCHOOL YEAR THROUGH THE 1984-1985
     2  SCHOOL YEAR, EACH SCHOOL DISTRICT SO ENTITLED SHALL BE PAID, IN
     3  ADDITION TO ANY OTHER SUBSIDY TO WHICH IT IS ENTITLED, AN AMOUNT
     4  ON ACCOUNT OF RESIDENT PUPILS ENROLLED IN VOCATIONAL
     5  CURRICULUMS; FOR THE 1985-1986 SCHOOL YEAR THROUGH THE 1999-2000
     6  SCHOOL YEAR, EACH SCHOOL DISTRICT AND AREA VOCATIONAL-TECHNICAL
     7  SCHOOL SHALL BE PAID AN AMOUNT ON ACCOUNT OF STUDENTS ENROLLED
     8  IN VOCATIONAL CURRICULUMS; FOR THE 2000-2001 SCHOOL YEAR AND
     9  EACH SCHOOL YEAR THEREAFTER, EACH SCHOOL DISTRICT, AREA
    10  VOCATIONAL-TECHNICAL SCHOOL AND CHARTER SCHOOL SHALL BE PAID AN
    11  AMOUNT ON ACCOUNT OF STUDENTS ENROLLED IN VOCATIONAL
    12  CURRICULUMS, DETERMINED AS FOLLOWS:
    13     (1)  DETERMINE THE INCREASE IN THE WEIGHTED AVERAGE DAILY
    14  MEMBERSHIP BY MULTIPLYING THE NUMBER OF STUDENTS IN AVERAGE
    15  DAILY MEMBERSHIP IN VOCATIONAL CURRICULUMS IN AREA VOCATIONAL-
    16  TECHNICAL SCHOOLS BY TWENTY-ONE HUNDREDTHS (.21) AND THE NUMBER
    17  OF STUDENTS IN AVERAGE DAILY MEMBERSHIP IN SCHOOL DISTRICT AND
    18  CHARTER SCHOOL VOCATIONAL CURRICULUMS BY SEVENTEEN HUNDREDTHS
    19  (.17).
    20     (2)  MULTIPLY THE LESSER OF THE DISTRICT'S ACTUAL INSTRUCTION
    21  EXPENSE PER WEIGHTED AVERAGE DAILY MEMBERSHIP OR THE BASE EARNED
    22  FOR REIMBURSEMENT BY THE MARKET VALUE/INCOME AID RATIO OR BY
    23  THREE HUNDRED SEVENTY-FIVE THOUSANDTHS (.375), WHICHEVER IS
    24  GREATER.
    25     (3)  MULTIPLY THE INCREASE IN WEIGHTED AVERAGE DAILY
    26  MEMBERSHIP DETERMINED IN CLAUSE (1) BY THE RESULT OF CLAUSE (2).
    27     (4)  FOR THE 1985-1986 THROUGH 1999-2000 SCHOOL YEARS, THE
    28  COMMONWEALTH SHALL PAY THE AMOUNT REQUIRED BY THIS SECTION TO
    29  THE SCHOOL DISTRICT OR AREA VOCATIONAL-TECHNICAL SCHOOL WHICH
    30  PROVIDES THE PROGRAM UPON WHICH REIMBURSEMENT IS BASED.
    20030H0564B2474                 - 49 -     

     1     (5)  FOR THE 2000-2001 SCHOOL YEAR AND EACH SCHOOL YEAR
     2  THEREAFTER, THE COMMONWEALTH SHALL PAY THE AMOUNT REQUIRED UNDER
     3  THIS SECTION TO THE SCHOOL DISTRICT, AREA VOCATIONAL-TECHNICAL
     4  SCHOOL OR CHARTER SCHOOL WHICH PROVIDES THE PROGRAMS UPON WHICH
     5  REIMBURSEMENT IS BASED.
     6     (C)  FOR THE SCHOOL YEAR 1998-1999, ANY ADDITIONAL FUNDING
     7  PROVIDED BY THE COMMONWEALTH OVER THE AMOUNT PROVIDED FOR THE
     8  SCHOOL YEAR 1997-1998 WILL BE DISTRIBUTED TO AREA VOCATIONAL-
     9  TECHNICAL SCHOOLS AND TO SCHOOL DISTRICTS WITH EIGHT (8) OR MORE
    10  VOCATIONAL PROGRAMS BASED ON SUBSECTION (B).
    11     (D)  FOR THE SCHOOL YEAR 1999-2000, ANY ADDITIONAL FUNDING
    12  PROVIDED BY THE COMMONWEALTH OVER THE AMOUNT PROVIDED FOR THE
    13  SCHOOL YEAR 1998-1999 WILL BE DISTRIBUTED TO AREA VOCATIONAL-
    14  TECHNICAL SCHOOLS, TO SCHOOL DISTRICTS WITH EIGHT (8) OR MORE
    15  VOCATIONAL PROGRAMS AND TO SCHOOL DISTRICTS OFFERING A
    16  VOCATIONAL AGRICULTURAL EDUCATION PROGRAM, BASED ON SUBSECTION
    17  (B).
    18     (E)  FOR THE SCHOOL YEAR 2000-2001 AND EACH SCHOOL YEAR
    19  THEREAFTER, ANY ADDITIONAL FUNDING PROVIDED BY THE COMMONWEALTH
    20  OVER THE AMOUNT PROVIDED FOR THE SCHOOL YEAR 1998-1999 WILL BE
    21  DISTRIBUTED TO AREA VOCATIONAL-TECHNICAL SCHOOLS, TO SCHOOL
    22  DISTRICTS AND CHARTER SCHOOLS WITH EIGHT (8) OR MORE VOCATIONAL
    23  PROGRAMS AND TO SCHOOL DISTRICTS AND CHARTER SCHOOLS OFFERING A
    24  VOCATIONAL AGRICULTURAL EDUCATION PROGRAM BASED ON SUBSECTION
    25  (B).
    26     SECTION 22.  SECTION 2502.13 OF THE ACT, AMENDED JUNE 29,
    27  2002 (P.L.524, NO.88), IS AMENDED TO READ:
    28     SECTION 2502.13.  SMALL DISTRICT ASSISTANCE.--FOR THE 1984-
    29  1985 AND 1985-1986 SCHOOL YEARS, THE COMMONWEALTH SHALL PAY TO
    30  EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
    20030H0564B2474                 - 50 -     

     1  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND HAS A MARKET
     2  VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000)
     3  OR GREATER, AN AMOUNT EQUAL TO FIFTY DOLLARS ($50) MULTIPLIED BY
     4  THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE 1985-1986
     5  SCHOOL YEAR, NO SCHOOL DISTRICT SHALL RECEIVE LESS ON ACCOUNT OF
     6  THIS SECTION THAN IT DID FOR THE 1984-1985 SCHOOL YEAR. FOR THE
     7  SCHOOL YEAR 1986-1987, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL
     8  DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND
     9  FIVE HUNDRED (1,500) OR LESS AND HAS A MARKET VALUE/INCOME AID
    10  RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, OR
    11  RECEIVED PAYMENTS UNDER THIS SECTION FOR THE 1985-1986 SCHOOL
    12  YEAR, AN AMOUNT EQUAL TO SEVENTY-FIVE DOLLARS ($75) MULTIPLIED
    13  BY THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEAR
    14  1987-1988, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
    15  WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE
    16  HUNDRED (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF
    17  FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, OR RECEIVED
    18  PAYMENTS UNDER THIS SECTION FOR THE 1986-1987 SCHOOL YEAR, AN
    19  AMOUNT EQUAL TO EIGHTY-FIVE DOLLARS ($85) MULTIPLIED BY THAT
    20  DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEAR 1988-
    21  1989, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH
    22  HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED
    23  (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE
    24  THOUSAND TEN THOUSANDTHS (0.5000) OR GREATER, OR RECEIVED
    25  PAYMENTS UNDER THIS SECTION FOR THE 1987-1988 OR 1988-1989
    26  SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED FIVE DOLLARS ($105).
    27  FOR THE SCHOOL YEAR 1989-1990, THE COMMONWEALTH SHALL PAY TO
    28  EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
    29  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND A MARKET
    30  VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS (0.5000)
    20030H0564B2474                 - 51 -     

     1  OR GREATER, OR RECEIVED PAYMENTS UNDER THIS SECTION FOR THE
     2  1987-1988 SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED FIFTEEN
     3  DOLLARS ($115) MULTIPLIED BY THE DISTRICT'S AVERAGE DAILY
     4  MEMBERSHIP AS PROVIDED FOR IN SECTION 212 OF THE ACT OF JULY 1,
     5  1990 (P.L.1591, NO.7A), KNOWN AS THE "GENERAL APPROPRIATION ACT
     6  OF 1990." FOR THE SCHOOL YEAR 1990-1991, THE COMMONWEALTH SHALL
     7  PAY TO EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY
     8  MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AND A
     9  MARKET VALUE/INCOME AID RATIO OF FIVE THOUSAND TEN-THOUSANDTHS
    10  (0.5000) OR GREATER, OR RECEIVED PAYMENTS UNDER THIS SECTION FOR
    11  THE PRIOR SCHOOL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED SEVENTY
    12  DOLLARS ($170) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY
    13  MEMBERSHIP. FOR THE SCHOOL YEAR 1990-1991, EACH SCHOOL DISTRICT
    14  WITH A POPULATION PER SQUARE MILE OF LESS THAN NINETY (90),
    15  WHICH OTHERWISE MEETS THE AVERAGE DAILY MEMBERSHIP AND MARKET
    16  VALUE/INCOME AID RATIO REQUIREMENTS OF THIS SECTION, OR RECEIVED
    17  PAYMENTS UNDER THIS SECTION FOR THE PRIOR SCHOOL YEAR, SHALL
    18  INSTEAD RECEIVE AN AMOUNT EQUAL TO ONE HUNDRED NINETY DOLLARS
    19  ($190) MULTIPLIED BY THAT DISTRICT'S AVERAGE DAILY MEMBERSHIP.
    20  FOR THE 1987-1988 SCHOOL YEAR THROUGH THE 1990-1991 SCHOOL YEAR,
    21  NO SCHOOL DISTRICT SHALL RECEIVE LESS ON ACCOUNT OF THIS SECTION
    22  THAN IT DID FOR THE PRIOR SCHOOL YEAR. FOR THE SCHOOL YEAR 1994-
    23  1995, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT WHICH
    24  HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE HUNDRED
    25  (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF FIVE
    26  THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER, AN AMOUNT EQUAL TO
    27  NINETY FIVE DOLLARS ($95) MULTIPLIED BY THAT DISTRICT'S AVERAGE
    28  DAILY MEMBERSHIP. FOR EACH OF THE SCHOOL YEARS 1997-1998 THROUGH
    29  1999-2000, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
    30  WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF ONE THOUSAND FIVE
    20030H0564B2474                 - 52 -     

     1  HUNDRED (1,500) OR LESS AND A MARKET VALUE/INCOME AID RATIO OF
     2  FIVE THOUSAND TEN-THOUSANDTHS (0.5000) OR GREATER AN AMOUNT
     3  EQUAL TO SEVENTY-FIVE DOLLARS ($75) MULTIPLIED BY THAT
     4  DISTRICT'S AVERAGE DAILY MEMBERSHIP. FOR THE SCHOOL YEARS 2000-
     5  2001 [AND], 2001-2002 AND 2002-2003, THE COMMONWEALTH SHALL PAY
     6  TO EACH SCHOOL DISTRICT WHICH HAS AN AVERAGE DAILY MEMBERSHIP OF
     7  ONE THOUSAND FIVE HUNDRED (1,500) OR LESS AN AMOUNT EQUAL TO
     8  SEVENTY-FIVE DOLLARS ($75) MULTIPLIED BY THAT DISTRICT'S AVERAGE
     9  DAILY MEMBERSHIP.
    10     SECTION 23.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    11     SECTION 2502.41.  BASIC EDUCATION FUNDING FOR 2002-2003
    12  SCHOOL YEAR.--FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH
    13  SHALL PAY TO EACH SCHOOL DISTRICT A BASIC EDUCATION FUNDING
    14  ALLOCATION WHICH SHALL CONSIST OF THE FOLLOWING:
    15     (1)  AN AMOUNT EQUAL TO THE BASIC EDUCATION FUNDING
    16  ALLOCATION FOR THE 2001-2002 SCHOOL YEAR PURSUANT TO SECTIONS
    17  2502.13 AND 2502.40.
    18     (2)  A BASE SUPPLEMENT CALCULATED AS FOLLOWS:
    19     (I)  MULTIPLY THE SCHOOL DISTRICT'S 2003-2004 MARKET
    20  VALUE/INCOME AID RATIO BY ITS 2002-2003 AVERAGE DAILY
    21  MEMBERSHIP.
    22     (II)  MULTIPLY THE PRODUCT FROM SUBPARAGRAPH (I) BY FIFTY
    23  MILLION DOLLARS ($50,000,000).
    24     (III)  DIVIDE THE PRODUCT FROM SUBPARAGRAPH (II) BY THE SUM
    25  OF THE PRODUCTS OF THE 2003-2004 MARKET VALUE/INCOME AID RATIO
    26  MULTIPLIED BY THE 2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL
    27  SCHOOL DISTRICTS.
    28     (3)  A POVERTY SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
    29  DISTRICTS AS FOLLOWS:
    30     (I)  TO QUALIFY FOR THE POVERTY SUPPLEMENT, A SCHOOL
    20030H0564B2474                 - 53 -     

     1  DISTRICT'S 2003-2004 MARKET VALUE/INCOME AID RATIO SHALL BE
     2  EQUAL TO OR GREATER THAN 0.6500 AND ITS PERSONAL INCOME
     3  VALUATION WHEN DIVIDED BY ITS 2002-2003 AVERAGE DAILY MEMBERSHIP
     4  SHALL BE EQUAL TO OR LESS THAN ONE HUNDRED THREE THOUSAND FIVE
     5  HUNDRED SEVENTY-ONE DOLLARS ($103,571).
     6     (II)  THE POVERTY SUPPLEMENT SHALL BE CALCULATED FOR
     7  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
     8     (A)  MULTIPLY THE SCHOOL DISTRICT'S 2002-2003 AVERAGE DAILY
     9  MEMBERSHIP BY THIRTY MILLION DOLLARS ($30,000,000).
    10     (B)  DIVIDE THE PRODUCT FROM CLAUSE (A) BY THE SUM OF THE
    11  2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL QUALIFYING SCHOOL
    12  DISTRICTS.
    13     (4)  A TAX EFFORT SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
    14  DISTRICTS AS FOLLOWS:
    15     (I)  TO QUALIFY FOR THE TAX EFFORT SUPPLEMENT, A SCHOOL
    16  DISTRICT'S 2001 EQUALIZED MILLAGE MUST BE EQUAL TO OR GREATER
    17  THAN 20.6 EQUALIZED MILLS.
    18     (II)  THE TAX EFFORT SUPPLEMENT SHALL BE CALCULATED FOR
    19  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
    20     (A)  MULTIPLY THE SCHOOL DISTRICT'S 2002-2003 AVERAGE DAILY
    21  MEMBERSHIP BY FIFTEEN MILLION DOLLARS ($15,000,000).
    22     (B)  DIVIDE THE PRODUCT FROM CLAUSE (A) BY THE SUM OF THE
    23  2002-2003 AVERAGE DAILY MEMBERSHIP FOR ALL QUALIFYING SCHOOL
    24  DISTRICTS.
    25     (5)  A GROWTH SUPPLEMENT CALCULATED FOR QUALIFYING SCHOOL
    26  DISTRICTS AS FOLLOWS:
    27     (I)  TO QUALIFY FOR THE GROWTH SUPPLEMENT, A SCHOOL
    28  DISTRICT'S 2002-2003 AVERAGE DAILY MEMBERSHIP MUST BE GREATER
    29  THAN ITS 2001-2002 AVERAGE DAILY MEMBERSHIP.
    30     (II)  THE GROWTH SUPPLEMENT SHALL BE CALCULATED FOR
    20030H0564B2474                 - 54 -     

     1  QUALIFYING SCHOOL DISTRICTS AS FOLLOWS:
     2     (A)  SUBTRACT THE SCHOOL DISTRICT'S 2001-2002 AVERAGE DAILY
     3  MEMBERSHIP FROM ITS 2002-2003 AVERAGE DAILY MEMBERSHIP.
     4     (B)  MULTIPLY THE DIFFERENCE FROM CLAUSE (A) BY FIVE MILLION
     5  DOLLARS ($5,000,000).
     6     (C)  DIVIDE THE PRODUCT FROM CLAUSE (B) BY THE SUM OF THE
     7  DIFFERENCES FROM CLAUSE (A) FOR ALL QUALIFYING SCHOOL DISTRICTS.
     8     (6)  EACH SCHOOL DISTRICT SHALL RECEIVE ADDITIONAL FUNDING AS
     9  NECESSARY SO THAT THE SUM OF THE AMOUNTS UNDER SECTION 2502.13
    10  AND UNDER PARAGRAPHS (2), (3), (4), (5) AND THIS PARAGRAPH WILL
    11  EQUAL AT LEAST TWO PERCENT (2%) OF THE AMOUNT IN PARAGRAPH (1).
    12     SECTION 24.  SECTIONS 2509.1 AND 2509.5 OF THE ACT ARE
    13  AMENDED BY ADDING SUBSECTIONS TO READ:
    14     SECTION 2509.1.  PAYMENTS TO INTERMEDIATE UNITS.--* * *
    15     (B.11)  UP TO NINE MILLION FIVE HUNDRED THOUSAND DOLLARS
    16  ($9,500,000) MAY BE UTILIZED FOR PROGRAMS ADMINISTERED AND
    17  OPERATED BY INTERMEDIATE UNITS DURING THE 2003-2004 SCHOOL YEAR
    18  FOR INSTITUTIONALIZED CHILDREN AS ESTABLISHED IN SUBSECTION
    19  (B.1).
    20     * * *
    21     SECTION 2509.5.  SPECIAL EDUCATION PAYMENTS TO SCHOOL
    22  DISTRICTS.--* * *
    23     (LL)  DURING THE 2003-2004 SCHOOL YEAR, EACH SCHOOL DISTRICT
    24  SHALL BE PAID THE AMOUNT IT RECEIVED DURING THE 2002-2003 SCHOOL
    25  YEAR UNDER SUBSECTION (KK).
    26     (MM)  DURING THE 2003-2004 SCHOOL YEAR, THIRTY-SIX MILLION
    27  ONE HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED EIGHTY-SEVEN
    28  DOLLARS ($36,149,587) OF THE FUNDS APPROPRIATED TO THE
    29  DEPARTMENT OF EDUCATION FOR SPECIAL EDUCATION SHALL BE USED TO
    30  PROVIDE SUPPLEMENTAL FUNDING FOR SPECIAL EDUCATION TO ALL SCHOOL
    20030H0564B2474                 - 55 -     

     1  DISTRICTS. THE SUPPLEMENTAL FUNDING SHALL BE CALCULATED AS
     2  FOLLOWS:
     3     (1)  MULTIPLY EACH SCHOOL DISTRICT'S 2003-2004 MARKET
     4  VALUE/INCOME AID RATIO BY SIXTEEN PER CENTUM (16%) OF ITS 2002-
     5  2003 AVERAGE DAILY MEMBERSHIP;
     6     (2)  MULTIPLY THE PRODUCT FROM PARAGRAPH (1) BY THIRTY-SIX
     7  MILLION ONE HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED EIGHTY-
     8  SEVEN DOLLARS ($36,149,587); AND
     9     (3)  DIVIDE THE RESULTANT PRODUCT FROM PARAGRAPH (2) BY THE
    10  SUM OF THE PRODUCTS OF THE 2003-2004 MARKET VALUE/INCOME AID
    11  RATIO MULTIPLIED BY SIXTEEN PER CENTUM (16%) OF THE 2002-2003
    12  AVERAGE DAILY MEMBERSHIP FOR ALL SCHOOL DISTRICTS.
    13     SECTION 25.  SECTION 2591.1 OF THE ACT, ADDED JUNE 29, 2002
    14  (P.L.524, NO.88), IS AMENDED TO READ:
    15     SECTION 2591.1.  COMMONWEALTH REIMBURSEMENTS FOR CHARTER
    16  SCHOOLS AND CYBER CHARTER SCHOOLS.--(A)  FOR THE 2001-2002
    17  SCHOOL YEAR, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT
    18  WITH RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER
    19  SCHOOL APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
    20  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
    21  CYBER CHARTER SCHOOL AS DEFINED PURSUANT TO ARTICLE XVII-A AN
    22  AMOUNT EQUAL TO THIRTY PERCENT (30%) OF THE TOTAL FUNDING
    23  REQUIRED UNDER SECTION 1725-A(A). IF INSUFFICIENT FUNDS ARE
    24  APPROPRIATED TO MAKE COMMONWEALTH REIMBURSEMENTS UNDER THIS
    25  SECTION, THE REIMBURSEMENTS SHALL BE MADE ON A PRO RATA BASIS.
    26     (B)  FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH SHALL
    27  PAY TO EACH SCHOOL DISTRICT THAT RECEIVED FUNDING UNDER
    28  SUBSECTION (A) FOR THE 2001-2002 SCHOOL YEAR AND THAT HAD
    29  RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER SCHOOL
    30  APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
    20030H0564B2474                 - 56 -     

     1  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
     2  CYBER CHARTER SCHOOL AS DEFINED UNDER ARTICLE XVII-A DURING THE
     3  2002-2003 SCHOOL YEAR AN AMOUNT EQUAL TO THE LESSER OF:
     4     (1)  THE PAYMENT RECEIVED FOR THE 2001-2002 SCHOOL YEAR
     5  PURSUANT TO SUBSECTION (A); OR
     6     (2)  THIRTY PERCENT (30%) OF THE TOTAL FUNDING REQUIRED UNDER
     7  SECTION 1725-A(A).
     8     (C)  FOR THE 2002-2003 SCHOOL YEAR, THE COMMONWEALTH SHALL
     9  PAY TO EACH SCHOOL DISTRICT THAT DID NOT RECEIVE FUNDING UNDER
    10  SUBSECTION (A) FOR THE 2001-2002 SCHOOL YEAR AND THAT HAD
    11  RESIDENT STUDENTS ENROLLED IN A CHARTER SCHOOL, A CHARTER SCHOOL
    12  APPROVED UNDER SECTION 1717-A OR 1718-A WHICH PROVIDES
    13  INSTRUCTION THROUGH THE INTERNET OR OTHER ELECTRONIC MEANS OR A
    14  CYBER CHARTER SCHOOL AS DEFINED UNDER ARTICLE XVII-A DURING THE
    15  2002-2003 SCHOOL YEAR AN AMOUNT EQUAL TO THIRTY PERCENT (30%) OF
    16  THE TOTAL FUNDING REQUIRED UNDER SECTION 1725-A(A).
    17     SECTION 26.  SECTION 2603-B(D)(10) OF THE ACT, ADDED JUNE 29,
    18  2002 (P.L.524, NO.88), IS REENACTED AND AMENDED TO READ:
    19     SECTION 2603-B.  POWERS AND DUTIES OF THE BOARD.--* * *
    20     (D)  THE BOARD SHALL ALSO HAVE THE AUTHORITY AND DUTY TO:
    21     * * *
    22     (10)  (I)  APPROVE OR DISAPPROVE STANDARDS PROPOSED BY THE
    23  DEPARTMENT IN ORDER TO COMPLY WITH THE PROVISIONS OF THE NO
    24  CHILD LEFT BEHIND ACT OF 2001 (PUBLIC LAW 107-110, 115 STAT.
    25  1425) TO MAINTAIN THE ELIGIBILITY OF THIS COMMONWEALTH TO
    26  RECEIVE FEDERAL FUNDING FOR EDUCATION PROGRAMS. THE BOARD SHALL
    27  APPROVE OR DISAPPROVE THE STANDARDS WITHIN 30 DAYS OF SUBMISSION
    28  TO THE BOARD'S OFFICE OR AT ITS NEXT SCHEDULED MEETING,
    29  WHICHEVER IS SOONER. FAILURE OF THE BOARD TO APPROVE OR
    30  DISAPPROVE THE STANDARDS WITHIN THE TIME ESTABLISHED UNDER THIS
    20030H0564B2474                 - 57 -     

     1  SECTION SHALL BE DEEMED AN APPROVAL OF THE STANDARDS.
     2     (II)  STANDARDS PROMULGATED UNDER THIS SECTION SHALL BE
     3  DEPOSITED WITH THE PENNSYLVANIA BULLETIN FOR PUBLICATION.
     4     (III)  THESE STANDARDS SHALL BE EXEMPT FROM:
     5     (A)  SECTIONS 201 THROUGH 205 OF THE ACT OF JULY 31, 1968
     6  (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS
     7  LAW.
     8     (B)  SECTION 204(B) OF THE ACT OF OCTOBER 15, 1980 (P.L.950,
     9  NO.164), KNOWN AS THE "COMMONWEALTH ATTORNEYS ACT."
    10     (C)  THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE
    11  "REGULATORY REVIEW ACT."
    12     (D)  THIS SUBCLAUSE SHALL EXPIRE [JUNE 30, 2003] DECEMBER 31,
    13  2003.
    14     * * *
    15     Section 4 3 27.  The following provisions of 22 Pa. Code are   <--
    16  abrogated:
    17         (1)  Section 35.61(f)(2).
    18         (2)  Section 335.22(3).
    19     Section 5 4.  This act shall take effect in 60 days            <--
    20  IMMEDIATELY.                                                      <--
    21     SECTION 28.  THE FOLLOWING AMOUNTS ARE HEREBY APPROPRIATED     <--
    22  FROM THE GENERAL FUND TO THE DEPARTMENT OF EDUCATION FOR THE
    23  FISCAL PERIOD JULY 1, 2003, TO JUNE 30, 2004, AS FOLLOWS:
    24         (1)  THE SUM OF $25,000,000 IS HEREBY APPROPRIATED FOR
    25     PAYMENTS TO ANY SCHOOL DISTRICT OF THE FIRST CLASS WHICH HAS
    26     BEEN DECLARED DISTRESSED PURSUANT TO SECTION 691(C) OF THE
    27     ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC
    28     SCHOOL CODE OF 1949, PROVIDED THAT SUCH SCHOOL DISTRICT
    29     SUBMITS A QUARTERLY ITEMIZATION OF ALL FEDERAL, STATE AND
    30     LOCAL FUNDS DISTRIBUTED TO EACH SCHOOL IN THE SCHOOL
    20030H0564B2474                 - 58 -     

     1     DISTRICT, INCLUDING SCHOOLS GOVERNED BY AGREEMENTS CURRENTLY
     2     IN EFFECT PURSUANT TO SECTION 696(I)(2) OF THE PUBLIC SCHOOL
     3     CODE OF 1949 AND SCHOOLS DESIGNATED AS PARTNERSHIP SCHOOLS
     4     UNDER THE SCHOOL REFORM COMMISSION RESOLUTION NUMBER 10 OF
     5     APRIL 17, 2002, TO THE DEPARTMENT OF EDUCATION AND TO THE
     6     CHAIRMAN AND MINORITY CHAIRMAN OF THE EDUCATION COMMITTEE OF
     7     THE SENATE AND TO THE CHAIRMAN AND MINORITY CHAIRMAN OF THE
     8     EDUCATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES. IF THE
     9     DEPARTMENT OF EDUCATION DETERMINES THAT THE REPORT IS NOT
    10     BEING SUBMITTED IN ACCORDANCE WITH THE REQUIREMENTS OF THIS
    11     PARAGRAPH, THE DEPARTMENT OF EDUCATION SHALL WITHHOLD FROM
    12     ANY AND ALL PAYMENTS TO WHICH THAT SCHOOL DISTRICT OF THE
    13     FIRST CLASS MAY BE ENTITLED UNDER THE ACT AN AMOUNT EQUAL TO
    14     THE FUNDS RECEIVED FROM THIS APPROPRIATION.
    15         (2)  THE SUM OF $15,000,000 IS HEREBY APPROPRIATED FOR
    16     THE HEAD START SUPPLEMENTAL ASSISTANCE PROGRAM ESTABLISHED
    17     UNDER ARTICLE XV-D OF THE PUBLIC SCHOOL CODE OF 1949.
    18         (3)  THE SUM OF $56,762,000 IS HEREBY APPROPRIATED FOR
    19     PAYMENTS ON ACCOUNT OF VOCATIONAL EDUCATION AS PROVIDED FOR
    20     UNDER SECTION 2502.8 OF THE PUBLIC SCHOOL CODE OF 1949,
    21     PROVIDED THAT ANY AMOUNTS EXPENDED BY THE DEPARTMENT OF
    22     EDUCATION PURSUANT TO THE FORMER STATE APPROPRIATION IN THE
    23     AMOUNT OF $55,378,000 FOR VOCATIONAL EDUCATION UNDER SECTION
    24     212 OF THE ACT OF MARCH 20, 2003 (P.L.   , NO.1A), KNOWN AS
    25     THE GENERAL APPROPRIATION ACT OF 2003, SHALL BE DEDUCTED FROM
    26     THE SUM APPROPRIATED IN THIS PARAGRAPH.
    27         (4)  THE SUM OF $895,177,000 IS HEREBY APPROPRIATED FOR
    28     PAYMENTS ON ACCOUNT OF SPECIAL EDUCATION OF EXCEPTIONAL
    29     CHILDREN, PROVIDED THAT THIS AMOUNT INCLUDES $563,000 FOR
    30     COMMUNITY SUPPORT SERVICES WHICH IS NOT TO BE INCLUDED IN THE
    20030H0564B2474                 - 59 -     

     1     BASE CALCULATIONS OF THE SPECIAL EDUCATION PROGRAM
     2     COMPONENTS, AND PROVIDED FURTHER THAT ANY AMOUNTS EXPENDED BY
     3     THE DEPARTMENT OF EDUCATION PURSUANT TO THE FORMER STATE
     4     APPROPRIATION IN THE AMOUNT OF $874,319,000 FOR PAYMENTS ON
     5     ACCOUNT OF SPECIAL EDUCATION OF EXCEPTIONAL CHILDREN UNDER
     6     SECTION 212 OF THE GENERAL APPROPRIATION ACT OF 2003 SHALL BE
     7     DEDUCTED FROM THE SUM APPROPRIATED IN THIS PARAGRAPH.
     8         (5)  THE SUM OF $4,204,407,000 IS HEREBY APPROPRIATED FOR
     9     BASIC EDUCATION FUNDING TO SCHOOL DISTRICTS, PROVIDED THAT
    10     THE SECRETARY OF EDUCATION, WITH THE APPROVAL OF THE
    11     GOVERNOR, MAY MAKE PAYMENTS FROM THIS APPROPRIATION IN
    12     ADVANCE OF THE DUE DATE PRESCRIBED BY LAW TO SCHOOL DISTRICTS
    13     WHICH ARE FINANCIALLY HANDICAPPED WHENEVER THE SECRETARY OF
    14     EDUCATION SHALL DEEM IT NECESSARY TO MAKE SUCH ADVANCE
    15     PAYMENTS TO ENABLE THE SCHOOL DISTRICTS TO KEEP THEIR SCHOOLS
    16     OPEN.
    17         (6)  THE SUM OF $26,249,000 IS HEREBY APPROPRIATED FOR
    18     PAYMENTS TO PENNSYLVANIA CHARTER SCHOOLS FOR THE DEAF AND
    19     BLIND, PROVIDED THAT ANY AMOUNTS EXPENDED BY THE DEPARTMENT
    20     OF EDUCATION PURSUANT TO THE FORMER STATE APPROPRIATION IN
    21     THE AMOUNT OF $25,749,000 FOR PAYMENTS TO PENNSYLVANIA
    22     CHARTER SCHOOLS FOR THE DEAF AND BLIND UNDER SECTION 212 OF
    23     THE GENERAL APPROPRIATION ACT OF 2003, SHALL BE DEDUCTED FROM
    24     THE SUM APPROPRIATED IN THIS PARAGRAPH.
    25         (7)  THE SUM OF $63,950,000 IS HEREBY APPROPRIATED FOR
    26     SPECIAL EDUCATION - APPROVED PRIVATE SCHOOLS, PROVIDED THAT
    27     ANY AMOUNTS EXPENDED BY THE DEPARTMENT OF EDUCATION PURSUANT
    28     TO THE FORMER STATE APPROPRIATION IN THE AMOUNT OF
    29     $63,450,000 FOR SPECIAL EDUCATION - APPROVED PRIVATE SCHOOLS
    30     UNDER SECTION 212 OF THE GENERAL APPROPRIATION ACT OF 2003,
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     1     SHALL BE DEDUCTED FROM THE SUM APPROPRIATED IN THIS
     2     PARAGRAPH.
     3         (8)  THE SUM OF $25,380,000 IS HEREBY APPROPRIATED FOR
     4     SCHOOL IMPROVEMENT GRANTS AS PROVIDED FOR UNDER SECTION 1709-
     5     B OF THE PUBLIC SCHOOL CODE OF 1949.
     6         (9)  THE SUM OF $19,000,000 IS HEREBY APPROPRIATED FOR
     7     EDUCATION SUPPORT SERVICES AS PROVIDED FOR UNDER ARTICLE XV-C
     8     OF THE PUBLIC SCHOOL CODE OF 1949.
     9         (10)  THE SUM OF $73,992,000 IS HEREBY APPROPRIATED FOR
    10     SERVICES TO NONPUBLIC SCHOOLS AS PROVIDED UNDER SECTION
    11     922.1-A OF THE PUBLIC SCHOOL CODE OF 1949, PROVIDED THAT ANY
    12     AMOUNTS EXPENDED BY THE DEPARTMENT OF EDUCATION PURSUANT TO
    13     THE FORMER STATE APPROPRIATION IN THE AMOUNT OF $71,976,000
    14     FOR SERVICES TO NONPUBLIC SCHOOLS UNDER SECTION 212 OF THE
    15     GENERAL APPROPRIATION ACT OF 2003, SHALL BE DEDUCTED FROM THE
    16     SUM APPROPRIATED IN THIS PARAGRAPH.
    17     SECTION 29.  THE FOLLOWING ACTS AND PARTS OF ACTS ARE
    18  REPEALED TO THE EXTENT SPECIFIED:
    19         (1)  SECTION 2509.8 OF THE ACT OF MARCH 10, 1949 (P.L.30,
    20     NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, ABSOLUTELY.
    21         (2)  AS MUCH AS RELATES TO THE STATE APPROPRIATIONS IN
    22     THE AMOUNT OF $55,378,000 FOR VOCATIONAL EDUCATION, IN THE
    23     AMOUNT OF $874,319,000 FOR PAYMENTS ON ACCOUNT OF SPECIAL
    24     EDUCATION OF EXCEPTIONAL CHILDREN, IN THE AMOUNT OF
    25     $25,749,000 FOR PAYMENTS TO PENNSYLVANIA CHARTER SCHOOLS FOR
    26     THE DEAF AND BLIND, IN THE AMOUNT OF $63,450,000 FOR SPECIAL
    27     EDUCATION - APPROVED PRIVATE SCHOOLS, AND IN THE AMOUNT OF
    28     $71,976,000 FOR SERVICES TO NONPUBLIC SCHOOLS IN SECTION 212
    29     OF THE ACT OF MARCH 20, 2003 (P.L.   , NO.1A), KNOWN AS THE
    30     GENERAL APPROPRIATION ACT OF 2003.
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     1     SECTION 30.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.




















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