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                                                       PRINTER'S NO. 503

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 464 Session of 2005


        INTRODUCED BY WILT, ARMSTRONG, BASTIAN, BENNINGHOFF, CLYMER,
           CREIGHTON, DENLINGER, HERSHEY, LEH, McGILL, ROHRER,
           R. STEVENSON AND YOUNGBLOOD, FEBRUARY 14, 2005

        REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 14, 2005

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing, in charter
     6     schools, for definitions, for administration, for
     7     establishment, for regional schools, for charters, for school
     8     staff, for funding, for tort liability, for nonrenewal and
     9     termination and for desegregation orders.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  The definitions of "charter school" and "regional
    13  charter school" in section 1703-A of the act of March 10, 1949
    14  (P.L.30, No.14), known as the Public School Code of 1949,
    15  amended June 29, 2002 (P.L.524, No.88), are amended to read:
    16     Section 1703-A.  Definitions.--As used in this article,
    17     * * *
    18     "Charter school" shall mean an independent public school
    19  established and operated under a charter from an institution of
    20  higher education, the local board of school directors or the
    21  appeal board and in which students are enrolled or attend. A

     1  charter school must be organized as a public, nonprofit
     2  corporation. Charters may not be granted to any for-profit
     3  entity.
     4     * * *
     5     "Regional charter school" shall mean an independent public
     6  school established and operated under a charter from more than
     7  one local board of school directors, an institution of higher
     8  education or the appeal board and in which students are enrolled
     9  or attend. A regional charter school must be organized as a
    10  public, nonprofit corporation. Charters may not be granted to
    11  any for-profit entity.
    12     * * *
    13     Section 2.  Sections 1716-A, 1717-A, 1718-A, 1720-A and 1724-
    14  A of the act, added June 19, 1997 (P.L.225, No.22), are amended
    15  to read:
    16     Section 1716-A.  Powers of Board of Trustees.--(a)  The board
    17  of trustees of a charter school shall have the authority to
    18  decide matters related to the operation of the school,
    19  including, but not limited to, budgeting, curriculum and
    20  operating procedures, subject to the school's charter. The board
    21  shall have the authority to employ, discharge and contract with
    22  necessary professional and nonprofessional employes subject to
    23  the school's charter and the provisions of this article.
    24     (b)  No member of a local board of school directors or the
    25  appeal board of a school entity shall serve on the board of
    26  trustees of a charter school that is located in the member's
    27  district.
    28     (c)  The board of trustees shall comply with the act of July
    29  3, 1986 (P.L.388, No.84), known as the "Sunshine Act."
    30     Section 1717-A.  Establishment of Charter School.--(a)  A
    20050H0464B0503                  - 2 -     

     1  charter school may be established by an individual; one or more
     2  teachers who will teach at the proposed charter school; parents
     3  or guardians of students who will attend the charter school; any
     4  nonsectarian college, university or museum located in this
     5  Commonwealth; any nonsectarian corporation not-for-profit, as
     6  defined in 15 Pa.C.S. (relating to corporations and
     7  unincorporated associations); any corporation, association or
     8  partnership; or any combination thereof. A charter school may be
     9  established by creating a new school or by converting an
    10  existing public school or a portion of an existing public
    11  school. No charter school shall be established or funded by and
    12  no charter shall be granted to any sectarian school, institution
    13  or other entity. No funds allocated or disbursed under this
    14  article shall be used to directly support instruction pursuant
    15  to section 1327.1.
    16     (b)  (1)  The conversion of an existing public school or
    17  portion of an existing public school to a charter school may be
    18  initiated by any individual or entity authorized to establish a
    19  charter school under subsection (a).
    20     (2)  In order to convert an existing public school to a
    21  charter school, the applicants must show that:
    22     (i)  More than fifty per centum of the teaching staff in the
    23  public school have signed a petition in support of the public
    24  school becoming a charter school; and
    25     (ii)  More than fifty per centum of the parents or guardians
    26  of pupils attending that public school have signed a petition in
    27  support of the school becoming a charter school.
    28     (3)  In no event shall the board of school directors or the
    29  appeal board serve as the board of trustees of an existing
    30  school which is converted to a charter school pursuant to this
    20050H0464B0503                  - 3 -     

     1  subsection.
     2     (c)  An application to establish a charter school shall be
     3  submitted to the local board of school directors of the district
     4  where the charter school will be located by November 15 of the
     5  school year preceding the school year in which the charter
     6  school will be established except that for a charter school
     7  beginning in the 1997-1998 school year, an application must be
     8  received by July 15, 1997. In the 1997-1998 school year only,
     9  applications shall be limited to recipients of fiscal year 1996-
    10  1997 Department of Education charter school planning grants.
    11     (d)  Within forty-five (45) days of receipt of an
    12  application, the local board of school directors in which the
    13  proposed charter school is to be located shall hold at least one
    14  public hearing on the provisions of the charter application,
    15  under the act of July 3, 1986 (P.L.388, No.84), known as the
    16  "Sunshine Act." At least forty-five (45) days must transpire
    17  between the first public hearing and the final decision of the
    18  board on the charter application except that for a charter
    19  school beginning in the 1997-1998 school year, only thirty (30)
    20  days must transpire between the first public hearing and the
    21  final decision of the board.
    22     (e)  (1)  Not later than seventy-five (75) days after the
    23  first public hearing on the application, the local board of
    24  school directors which received the application shall grant or
    25  deny the application. [For a charter school beginning in the
    26  1997-1998 school year, the local board of school directors shall
    27  grant or deny the application no later than sixty (60) days
    28  after the first public hearing.]
    29     (2)  A charter school application submitted under this
    30  article shall be evaluated by the local board of school
    20050H0464B0503                  - 4 -     

     1  directors or the appeal board based on criteria, including, but
     2  not limited to, the following:
     3     (i)  The demonstrated, sustainable support for the charter
     4  school plan by teachers, parents, other community members and
     5  students, including comments received at the public hearing held
     6  under subsection (d).
     7     (ii)  The capability of the charter school applicant, in
     8  terms of support and planning, to provide comprehensive learning
     9  experiences to students pursuant to the adopted charter.
    10     (iii)  The extent to which the application considers the
    11  information requested in section 1719-A and conforms to the
    12  legislative intent outlined in section 1702-A.
    13     (iv)  The extent to which the charter school may serve as a
    14  model for other public schools.
    15     (3)  The local board of school directors or the appeal board,
    16  in the case of an existing school being converted to a charter
    17  school, shall establish the alternative arrangements for current
    18  students who choose not to attend the charter school.
    19     (4)  A charter application shall be deemed approved by the
    20  local board of school directors of a school district or the
    21  appeal board upon affirmative vote by a majority of all the
    22  [directors] members of the appropriate board. Formal action
    23  approving or denying the application shall be taken by [the
    24  local board of school directors] that board at a public meeting,
    25  with notice or consideration of the application given by the
    26  board, under the "Sunshine Act."
    27     (5)  Written notice of the [board's] action of a local board
    28  of school directors shall be sent to the applicant, the
    29  department and the appeal board. Written notice of the action of
    30  the appeal board shall be sent to the applicant and the
    20050H0464B0503                  - 5 -     

     1  department. If the application is denied, the reasons for the
     2  denial, including a description of deficiencies in the
     3  application, shall be clearly stated in the notice [sent by the
     4  local board of school directors] to the charter school
     5  applicant.
     6     (f)  At the option of the charter school applicant, a denied
     7  application may be revised and resubmitted to the [local board
     8  of school directors] board which denied the application.
     9  Following the appointment and confirmation of the Charter School
    10  Appeal Board under section 1721-A, the decision of the local
    11  board of school directors may be appealed to the appeal board.
    12  When an application is revised and resubmitted to the [local
    13  board of school directors, the] board which denied the
    14  application, that board may schedule additional public hearings
    15  on the revised application. [The] That board shall consider the
    16  revised and resubmitted application at the first board meeting
    17  occurring at least forty-five (45) days after receipt of the
    18  revised application by [the] that board. For a revised
    19  application resubmitted for the 1997-1998 school year, [the]
    20  that board shall consider the application at the first board
    21  meeting occurring at least thirty (30) days after its receipt.
    22  [The] That board shall provide notice of consideration of the
    23  revised application under the "Sunshine Act." [No appeal from a
    24  decision of a local school board may be taken until July 1,
    25  1999.]
    26     (g)  Notwithstanding the provisions of subsection (e)(5),
    27  failure by the local board of directors [to hold a public
    28  hearing and] to grant [or deny] the application for a charter
    29  school within the time periods specified in subsections (d)[,
    30  (e) and (f)] and (e) shall permit the applicant for a charter to
    20050H0464B0503                  - 6 -     

     1  file its application [as an appeal to] with the appeal board. In
     2  such case, the appeal board shall review the application and
     3  make a decision to grant or deny a charter based on the criteria
     4  established in subsection (e)(2).
     5     (h)  In the case of a review by the appeal board of an
     6  application that is revoked or is not renewed, the appeal board
     7  shall make its decision based on the criteria established in
     8  subsection (e)(2). A decision by the appeal board under this
     9  subsection or subsection (g) to grant, to renew or not to revoke
    10  a charter shall serve as a requirement for the local board of
    11  directors of a school district or school districts, as
    12  appropriate, to sign the written charter of the charter school
    13  as provided for in section 1720-A. Should the local board of
    14  directors fail to grant the application and sign the charter
    15  within ten (10) days of notice of reversal of the decision of
    16  the local board of directors, the charter shall be deemed to be
    17  approved and shall be signed by the chairman of the appeal
    18  board.
    19     (i)  (1)  The appeal board shall have the exclusive review of
    20  an appeal by a charter school applicant, or by the board of
    21  trustees of an existing charter school, of a decision made by a
    22  local board of directors not to grant a charter as provided in
    23  this section.
    24     [(2)  In order for a charter school applicant to be eligible
    25  to appeal the denial of a charter by the local board of
    26  directors, the applicant must obtain the signatures of at least
    27  two per centum of the residents of the school district or of one
    28  thousand (1,000) residents, whichever is less, who are over
    29  eighteen (18) years of age. For a regional charter school, the
    30  applicant must obtain the signatures of at least two per centum
    20050H0464B0503                  - 7 -     

     1  of the residents of each school district granting the charter or
     2  of one thousand (1,000) residents from each of the school
     3  districts granting the charter, whichever is less, who are over
     4  eighteen (18) years of age. The signatures shall be obtained
     5  within sixty (60) days of the denial of the application by the
     6  local board of directors in accordance with clause (3).
     7     (3)  Each person signing a petition to appeal denial of a
     8  charter under clause (2) shall declare that he or she is a
     9  resident of the school district which denied the charter
    10  application and shall include his or her printed name;
    11  signature; address, including city, borough or township, with
    12  street and number, if any; and the date of signing. All pages
    13  shall be bound together. Additional pages of the petition shall
    14  be numbered consecutively. There shall be appended to the
    15  petition a statement that the local board of directors rejected
    16  the petition for a charter school, the names of all applicants
    17  for the charter, the date of denial by the board and the
    18  proposed location of the charter school. No resident may sign
    19  more than one petition relating to the charter school
    20  application within the sixty (60) days following denial of the
    21  application. The department shall develop a form to be used to
    22  petition for an appeal.
    23     (4)  Each petition shall have appended thereto the affidavit
    24  of some person, not necessarily a signer, setting forth all of
    25  the following:
    26     (i)  That the affiant is a resident of the school district
    27  referred to in the petition.
    28     (ii)  The affiant's residence, giving city, borough or
    29  township, with street and number, if any.
    30     (iii)  That the signers signed with full knowledge of the
    20050H0464B0503                  - 8 -     

     1  purpose of the petition.
     2     (iv)  That the signers' respective residences are correctly
     3  stated in the petition.
     4     (v)  That the signers all reside in the school district.
     5     (vi)  That each signer signed on the date set forth opposite
     6  the signer's name.
     7     (vii)  That to the best of the affiant's knowledge and
     8  belief, the signers are residents of the school district.
     9     (5)  If the required number of signatures are obtained within
    10  sixty (60) days of the denial of the application, the applicant
    11  may present the petition to the court of common pleas of the
    12  county in which the charter school would be situated. The court
    13  shall hold a hearing only on the sufficiency of the petition.
    14  The applicant and local board of school directors shall be given
    15  seven (7) days' notice of the hearing. The court shall issue a
    16  decree establishing the sufficiency or insufficiency of the
    17  petition. If the petition is sufficient, the decree shall be
    18  transmitted to the State Charter School Appeal Board for review
    19  in accordance with this section. Notification of the decree
    20  shall be given to the applicant and the local board of
    21  directors.]
    22     (6)  In any appeal, the decision made by the local board of
    23  directors shall be reviewed by the appeal board on the record as
    24  certified by the local board of directors. The appeal board
    25  shall give due consideration to the findings of the local board
    26  of directors and specifically articulate its reasons for
    27  agreeing or disagreeing with those findings in its written
    28  decision. The appeal board shall have the discretion to allow
    29  the local board of directors and the charter school applicant to
    30  supplement the record if the supplemental information was
    20050H0464B0503                  - 9 -     

     1  previously unavailable.
     2     (7)  Not later than thirty (30) days after the date of notice
     3  of the acceptance of the appeal, the appeal board shall meet to
     4  officially review the certified record.
     5     (8)  Not later than sixty (60) days following the review
     6  conducted pursuant to clause (6), the appeal board shall issue a
     7  written decision affirming or denying the appeal. If the appeal
     8  board has affirmed the decision of the local board of directors,
     9  notice shall be provided to both parties.
    10     (9)  A decision of the appeal board to reverse the decision
    11  of the local board of directors shall serve as a requirement for
    12  the local board of directors of a school district or school
    13  districts, as appropriate, to grant the application and sign the
    14  written charter of the charter school as provided for in section
    15  1720-A. Should the local board of directors fail to grant the
    16  application and sign the charter within ten (10) days of notice
    17  of the reversal of the decision of the local board of directors,
    18  the charter shall be deemed to be approved and shall be signed
    19  by the chairman of the appeal board.
    20     (10)  All decisions of the appeal board shall be subject to
    21  appellate review by the Commonwealth Court.
    22     Section 1718-A.  Regional Charter School.--(a)  A regional
    23  charter school may be established by an individual, one or more
    24  teachers who will teach at the proposed charter school; parents
    25  or guardians of students who will attend the charter school; any
    26  nonsectarian college, university or museum located in this
    27  Commonwealth; any nonsectarian corporation not-for-profit, as
    28  defined in 15 Pa.C.S. (relating to corporations and
    29  unincorporated associations); any corporation, association or
    30  partnership; or any combination thereof. A regional charter
    20050H0464B0503                 - 10 -     

     1  school may be established by creating a new school or by
     2  converting an existing public school or a portion of an existing
     3  public school. Conversion of an existing public school to a
     4  regional charter school shall be accomplished in accordance with
     5  section 1714-A(b). No regional charter school shall be
     6  established or funded by and no charter shall be granted to any
     7  sectarian school, institution or other entity.
     8     (b)  The boards of school directors or the appeal board of
     9  one or more school districts may act jointly to receive and
    10  consider an application for a regional charter school, except
    11  that any action to approve an application for a charter or to
    12  sign a written charter of an applicant shall require an
    13  affirmative vote of a majority of all the directors or the
    14  appeal board of each of the school districts involved. The
    15  applicant shall apply for a charter to the board of directors or
    16  the appeal board of any school district in which the charter
    17  school will be located.
    18     (c)  The provisions of this article as they pertain to
    19  charter schools and the powers and duties of the local board of
    20  school directors of a school district and the appeal board shall
    21  apply to regional charter schools, except as provided in
    22  subsections (a) and (b) or as otherwise clearly stated in this
    23  article.
    24     Section 1720-A.  Term and Form of Charter.--Upon approval of
    25  a charter application under section 1717-A, a written charter
    26  shall be developed which shall contain the provisions of the
    27  charter application and which shall be signed by an institution
    28  of higher education, the local board of school directors of a
    29  school district or the appeal board, by an institution of higher
    30  education, the local boards of school directors of a school
    20050H0464B0503                 - 11 -     

     1  district or the appeal board in the case of a regional charter
     2  school or by the chairman of the appeal board pursuant to
     3  section 1717-A(i)(5) and the board of trustees of the charter
     4  school. This written charter, when duly signed by an institution
     5  of higher education, the local board of school directors of a
     6  school district or the appeal board, or by an institution of
     7  higher education, the local boards of school directors of a
     8  school district or the appeal board in the case of a regional
     9  charter school, and the charter school's board of trustees,
    10  shall act as legal authorization for the establishment of a
    11  charter school. This written charter shall be legally binding on
    12  [both] the charter school's board of trustees and on the
    13  institution of higher education, the local board of school
    14  directors of a school district [and the charter school's board
    15  of trustees] or the appeal board, as applicable. The charter
    16  shall be [for a period of no less than three (3) nor more than
    17  five (5) years and may be renewed for five (5) year periods upon
    18  reauthorization by the local board of school directors of a
    19  school district or the appeal board] in force until it is
    20  revoked for cause, as determined by regulations of the
    21  department. A charter will be granted only for a school
    22  organized as a public, nonprofit corporation.
    23     Section 1724-A.  School Staff.--(a)  The board of trustees
    24  shall determine the level of compensation and all terms and
    25  conditions of employment of the staff except as may otherwise be
    26  provided in this article. At least seventy-five per centum of
    27  the professional staff members of a charter school shall hold
    28  appropriate State certification. Employes of a charter school
    29  may organize under the act of July 23, 1970 (P.L.563, No.195),
    30  known as the "Public Employe Relations Act." The board of
    20050H0464B0503                 - 12 -     

     1  trustees of a charter school shall be considered an employer for
     2  the purposes of Article XI-A. Upon formation of one or more
     3  collective bargaining units at the school, the board of trustees
     4  shall bargain with the employes based on the provisions of this
     5  article, Article XI-A and the "Public Employe Relations Act."
     6  Collective bargaining units at a charter school shall be
     7  separate from any collective bargaining unit of the school
     8  district in which the charter school is located and shall be
     9  separate from any other collective bargaining unit. A charter
    10  school shall be considered a school entity as provided for in
    11  section 1161-A for the purpose of the secretary seeking an
    12  injunction requiring the charter school to meet the minimum
    13  requirements for instruction as provided for in this article.
    14     (b)  Each charter application shall list the general
    15  qualifications needed to staff any noncertified positions.
    16  Professional employes who do not hold appropriate Pennsylvania
    17  certification must present evidence that they:
    18     (i)  Meet the qualifications in sections 1109 and 1209.
    19     (ii)  Have demonstrated satisfactorily a combination of
    20  experience, achievement and qualifications as defined in the
    21  charter school application in basic skills, general knowledge,
    22  professional knowledge and practice and subject matter knowledge
    23  in the subject area where an individual will teach.
    24     (c)  All employes of a charter school shall be enrolled in
    25  the Public School Employee's Retirement System in the same
    26  manner as set forth in 24 Pa.C.S. § 8301(a) (relating to
    27  mandatory and optional membership) unless at the time of the
    28  application for the charter school the sponsoring district or
    29  the board of trustees of the charter school has a retirement
    30  program which covers the employes or the employe is currently
    20050H0464B0503                 - 13 -     

     1  enrolled in another retirement program. The Commonwealth shall
     2  make contributions on behalf of charter school employes, and the
     3  charter school shall be considered a school district and shall
     4  make payments by employers and payments on account of Social
     5  Security as established under 24 Pa.C.S. Pt. IV (relating to
     6  retirement for school employees). For purposes of payments by
     7  employers, a charter school shall be considered a school
     8  district under 24 Pa.C.S. § 8329(a)(1) (relating to payments on
     9  account of social security deductions from appropriations). The
    10  market value/income aid ratio used in calculating payments as
    11  prescribed in this subsection shall be the market value/income
    12  aid ratio for the school district in which the charter school is
    13  located or, in the case of a regional charter school, shall be a
    14  composite market value/income aid ratio for the participating
    15  school districts as determined by the department. Except as
    16  otherwise provided, employes of a charter school shall make
    17  regular member contributions as required for active members
    18  under 24 Pa.C.S. Pt. IV. If the employes of the charter school
    19  participate in another retirement plan, then those employes
    20  shall have no concurrent claim on the benefits provided to
    21  public school employes under 24 Pa.C.S. Pt. IV. For purposes of
    22  this subsection, a charter school shall be deemed to be a
    23  "public school" as defined in 24 Pa.C.S. § 8102 (relating to
    24  definitions).
    25     (d)  Every employe of a charter school shall be provided the
    26  same health care benefits as the employe would be provided if he
    27  or she were an employe of the local district. The local board of
    28  school directors or the appeal board may require the charter
    29  school to provide the same terms and conditions with regard to
    30  health insurance as the collective bargaining agreement of the
    20050H0464B0503                 - 14 -     

     1  school district to include employe contributions to the
     2  district's health benefits plan. The charter school shall make
     3  any required employer's contribution to the district's health
     4  plan to an insurer, a local board of school directors, the
     5  appeal board or a contractual representative of school employes,
     6  whichever is appropriate to provide the required coverage.
     7     (e)  Any public school employe of a school entity may request
     8  a leave of absence for up to five (5) years in order to work in
     9  a charter school located in the district of employment or in a
    10  regional charter school in which the employing school district
    11  is a participant. Approval for a leave shall not be unreasonably
    12  withheld.
    13     (f)  Temporary professional employes on leave from a school
    14  district may accrue tenure in the non-charter public school
    15  system at the discretion of the local board of school directors
    16  or the appeal board, the same as they would under Article XI if
    17  they had continued to be employed by that district. Professional
    18  employes on leave from a school district shall retain their
    19  tenure rights, as defined in Article XI, in the school entity
    20  from which they came. No temporary professional employe or
    21  professional employe shall have tenure rights as against a
    22  charter school. Both temporary professional employes and
    23  professional employes shall continue to accrue seniority in the
    24  school entity from which they came if they return to that school
    25  entity when the leave ends.
    26     (g)  Professional employes who hold a first level teaching or
    27  administrative certificate may, at their option, have the time
    28  completed in satisfactory service in a charter school applied to
    29  the length of service requirements for the next level of
    30  certification.
    20050H0464B0503                 - 15 -     

     1     (h)  (1)  Any temporary professional employe or professional
     2  employe who leaves employment at a charter school shall have the
     3  right to return to a comparable position for which the person is
     4  properly certified in the school entity which granted the leave
     5  of absence. In the case where a teacher has been dismissed by
     6  the charter school, the school entity which granted the leave of
     7  absence is to be provided by the charter school with the reasons
     8  for such dismissal at the time it occurs, a list of any
     9  witnesses who were relied on by the charter school in moving for
    10  dismissal, a description of and access to any physical evidence
    11  used by the charter school in moving for dismissal and a copy of
    12  any record developed at any dismissal proceeding conducted by
    13  the charter school. The record of any such hearing may be
    14  admissible in a hearing before the school entity which granted
    15  the leave of absence. Nothing in this section shall affect the
    16  authority of the board of school directors to initiate
    17  proceedings under Article XI if the board determines that
    18  occurrences at the charter school leading to dismissal of a
    19  teacher constitute adequate and independent grounds for
    20  discipline under section 1122.
    21     (2)  No temporary employe or professional employe who is
    22  leaving employment at a charter school shall be returned to a
    23  position in the public school district which granted his leave
    24  of absence until such public school district is in receipt of a
    25  current criminal history record under section 111 and the
    26  official clearance statement regarding child injury or abuse
    27  from the Department of Public Welfare as required by 23 Pa.C.S.
    28  Ch. 63 Subch. C.2 (relating to background checks for employment
    29  in schools).
    30     (i)  All individuals who shall have direct contact with
    20050H0464B0503                 - 16 -     

     1  students shall be required to submit a report of criminal
     2  history record information as provided for in section 111 prior
     3  to accepting a position with the charter school. This subsection
     4  shall also apply to any individual who volunteers to work on a
     5  full-time or part-time basis at the charter school.
     6     (j)  All applicants for a position as a school employe shall
     7  be required to submit the official clearance statement regarding
     8  child injury or abuse from the Department of Public Welfare as
     9  required by 23 Pa.C.S. Ch. 63 Subch. C.2. This section shall
    10  also apply to any individual who volunteers to work on a full-
    11  time or part-time basis at a charter school.
    12     Section 3.  Section 1725-A of the act, amended or added June
    13  19, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and
    14  June 29, 2002 (P.L.524, No.88), is amended to read:
    15     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
    16  for a charter school shall be provided in the following manner:
    17     (1)  There shall be no tuition charge for a resident or
    18  nonresident student attending a charter school.
    19     (2)  For non-special education students, the charter school
    20  shall receive for each student enrolled no less than the
    21  budgeted total expenditure per average daily membership of the
    22  prior school year, as defined in section 2501(20), minus the
    23  budgeted expenditures of the district of residence for nonpublic
    24  school programs; adult education programs; community/junior
    25  college programs; student transportation services; for special
    26  education programs; facilities acquisition, construction and
    27  improvement services; and other financing uses, including debt
    28  service and fund transfers as provided in the Manual of
    29  Accounting and Related Financial Procedures for Pennsylvania
    30  School Systems established by the department. This amount shall
    20050H0464B0503                 - 17 -     

     1  be paid [by the district of residence of each student.] from the
     2  State school district subsidy allocation to the charter school
     3  which the Pennsylvania resident student attends. This selected
     4  educational expenditure per student shall be determined by
     5  calculating the weighted average selected expenditure per
     6  student of the intermediate unit in which the State resident
     7  charter school student resides.
     8     (3)  For special education students, the charter school shall
     9  receive for each student enrolled the same funding as for each
    10  non-special education student as provided in clause (2), plus an
    11  additional amount determined by dividing the district of
    12  residence's total special education expenditure by the product
    13  of multiplying the combined percentage of section 2509.5(k)
    14  times the district of residence's total average daily membership
    15  for the prior school year. This amount shall be paid [by the
    16  district of residence of each student.] from the special
    17  education subsidy allocation to the charter school which the
    18  Pennsylvania resident special education student attends. This
    19  additional amount per student shall be determined by calculating
    20  the weighted average special education expenditure per student
    21  of the intermediate unit in which the State resident charter
    22  school student resides.
    23     (4)  A charter school may request the intermediate unit in
    24  which the charter school is located to provide services to
    25  assist the charter school to address the specific needs of
    26  exceptional students. The intermediate unit shall assist the
    27  charter school and bill the charter school for the services. The
    28  intermediate unit may not charge the charter school more for any
    29  service than it charges the constituent districts of the
    30  intermediate unit.
    20050H0464B0503                 - 18 -     

     1     (5)  Payments shall be made to the charter school in twelve
     2  (12) equal monthly payments, by the fifth day of each month,
     3  within the operating school year. A student enrolled in a
     4  charter school shall be included in the average daily membership
     5  of the student's district of residence for the purpose of
     6  providing basic education funding payments and special education
     7  funding pursuant to Article XXV. If a school district fails to
     8  make a payment to a charter school as prescribed in this clause,
     9  the secretary shall deduct the estimated amount, as documented
    10  by the charter school, from any and all State payments made to
    11  the district after receipt of documentation from the charter
    12  school.
    13     (6)  Within thirty (30) days after the secretary makes the
    14  deduction described in clause (5), a school district may notify
    15  the secretary that the deduction made from State payments to the
    16  district under this subsection is inaccurate. The secretary
    17  shall provide the school district with an opportunity to be
    18  heard concerning whether the charter school documented that its
    19  students were enrolled in the charter school, the period of time
    20  during which each student was enrolled, the school district of
    21  residence of each student and whether the amounts deducted from
    22  the school district were accurate.
    23     (b)  The Commonwealth shall provide temporary financial
    24  assistance to a school district due to the enrollment of
    25  students in a charter school who attended a nonpublic school in
    26  the prior school year in order to offset the additional costs
    27  directly related to the enrollment of those students in a public
    28  charter school. The Commonwealth shall pay the school district
    29  of residence of a student enrolled in a nonpublic school in the
    30  prior school year who is attending a charter school an amount
    20050H0464B0503                 - 19 -     

     1  equal to the school district of residence's basic education
     2  subsidy for the current school year divided by the district's
     3  average daily membership for the prior school year. This payment
     4  shall occur only for the first year of the attendance of the
     5  student in a charter school, starting with school year 1997-
     6  1998. Total payments of temporary financial assistance to school
     7  districts on behalf of a student enrolling in a charter school
     8  who attended a nonpublic school in the prior school year shall
     9  be limited to funds appropriated for this program in a fiscal
    10  year. If the total of the amount needed for all students
    11  enrolled in a nonpublic school in the prior school year who
    12  enroll in a charter school exceeds the appropriation for the
    13  temporary financial assistance program, the amount paid to a
    14  school district for each qualifying student shall be pro rata
    15  reduced. Receipt of funds under this subsection shall not
    16  preclude a school district from applying for a grant under
    17  subsection (c).
    18     (c)  The Commonwealth shall create a grant program to provide
    19  temporary transitional funding to a school district due to the
    20  budgetary impact relating to any student's first-year attendance
    21  at a charter school. The department shall develop criteria which
    22  shall include, but not be limited to, the overall fiscal impact
    23  on the budget of the school district resulting from students of
    24  a school district attending a charter school. The criteria shall
    25  be published in the Pennsylvania Bulletin. This subsection shall
    26  not apply to a public school converted to a charter school under
    27  section 1717-A(b). Grants shall be limited to funds appropriated
    28  for this purpose.
    29     (d)  It shall be lawful for any charter school to receive,
    30  hold, manage and use, absolutely or in trust, any devise,
    20050H0464B0503                 - 20 -     

     1  bequest, grant, endowment, gift or donation of any property,
     2  real or personal and/or mixed, which shall be made to the
     3  charter school for any of the purposes of this article.
     4     (e)  It shall be unlawful for any trustee of a charter school
     5  or any board of trustees of a charter school or any other person
     6  affiliated in any way with a charter school to demand or
     7  request, directly or indirectly, any gift, donation or
     8  contribution of any kind from any parent, teacher, employe or
     9  any other person affiliated with the charter school as a
    10  condition for employment or enrollment and/or continued
    11  attendance of any pupil. Any donation, gift or contribution
    12  received by a charter school shall be given freely and
    13  voluntarily.
    14     Section 4.  Section 1727-A of the act, added June 19, 1997
    15  (P.L.225, No.22), is amended to read:
    16     Section 1727-A.  Tort Liability.--For purposes of tort
    17  liability, employes of the charter school shall be considered
    18  public employes and the board of trustees shall be considered
    19  the public employer in the same manner as political subdivisions
    20  and local agencies. The board of trustees of a charter school
    21  and the charter school shall be solely liable for any and all
    22  damages of any kind resulting from any legal challenge involving
    23  the operation of a charter school. Notwithstanding this
    24  requirement, the local board of directors of a school entity and
    25  the appeal board shall not be held liable for any activity or
    26  operation related to the program of the charter school.
    27     Section 5.  Section 1729-A of the act, amended or added June
    28  19, 1997 (P.L.225, No.22) and July 4, 2004 (P.L.536, No.70), is
    29  amended to read:
    30     [Section 1729-A.  Causes for Nonrenewal or Termination.--(a)
    20050H0464B0503                 - 21 -     

     1  During the term of the charter or at the end of the term of the
     2  charter, the local board of school directors may choose to
     3  revoke or not to renew the charter based on any of the
     4  following:
     5     (1)  One or more material violations of any of the
     6  conditions, standards or procedures contained in the written
     7  charter signed pursuant to section 1720-A.
     8     (2)  Failure to meet the requirements for student performance
     9  set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
    10  subsequent regulations promulgated to replace 22 Pa. Code Ch. 5
    11  or failure to meet any performance standard set forth in the
    12  written charter signed pursuant to section 1716-A.
    13     (3)  Failure to meet generally accepted standards of fiscal
    14  management or audit requirements.
    15     (4)  Violation of provisions of this article.
    16     (5)  Violation of any provision of law from which the charter
    17  school has not been exempted, including Federal laws and
    18  regulations governing children with disabilities.
    19     (6)  The charter school has been convicted of fraud.
    20     (b)  A member of the board of trustees who is convicted of a
    21  felony or any crime involving moral turpitude shall be
    22  immediately disqualified from serving on the board of trustees.
    23     (c)  Any notice of revocation or nonrenewal of a charter
    24  given by the local board of school directors of a school
    25  district shall state the grounds for such action with reasonable
    26  specificity and give reasonable notice to the governing board of
    27  the charter school of the date on which a public hearing
    28  concerning the revocation or nonrenewal will be held. The local
    29  board of school directors shall conduct such hearing, present
    30  evidence in support of the grounds for revocation or nonrenewal
    20050H0464B0503                 - 22 -     

     1  stated in its notice and give the charter school reasonable
     2  opportunity to offer testimony before taking final action.
     3  Formal action revoking or not renewing a charter shall be taken
     4  by the local board of school directors at a public meeting
     5  pursuant to the act of July 3, 1986 (P.L.388, No.84), known as
     6  the "Sunshine Act," after the public has had thirty (30) days to
     7  provide comments to the board. All proceedings of the local
     8  board pursuant to this subsection shall be subject to 2 Pa.C.S.
     9  Ch. 5 Subch. B (relating to practice and procedure of local
    10  agencies). Except as provided in subsection (d), the decision of
    11  the local board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B
    12  (relating to judicial review of local agency action).
    13     (d)  Following the appointment and confirmation of the appeal
    14  board, but not before July 1, 1999, the charter school may
    15  appeal the decision of the local board of school directors to
    16  revoke or not renew the charter to the appeal board. The appeal
    17  board shall have the exclusive review of a decision not to renew
    18  or revoke a charter. The appeal board shall review the record
    19  and shall have the discretion to supplement the record if the
    20  supplemental information was previously unavailable. The appeal
    21  board may consider the charter school plan, annual reports,
    22  student performance and employe and community support for the
    23  charter school in addition to the record. The appeal board shall
    24  give due consideration to the findings of the local board of
    25  directors and specifically articulate its reasons for agreeing
    26  or disagreeing with those findings in its written decision.
    27     (e)  If the appeal board determines that the charter should
    28  not be revoked or should be renewed, the appeal board shall
    29  order the local board of directors to rescind its revocation or
    30  nonrenewal decision.
    20050H0464B0503                 - 23 -     

     1     (f)  Except as provided in subsection (g), the charter shall
     2  remain in effect until final disposition by the appeal board.
     3     (g)  In cases where the health or safety of the school's
     4  pupils, staff or both is at serious risk, the local board of
     5  school directors may take immediate action to revoke a charter.
     6     (h)  All decisions of the charter school appeal board shall
     7  be subject to appellate review by the Commonwealth Court.
     8     (i)  When a charter is revoked, not renewed, forfeited,
     9  surrendered or otherwise ceases to operate, the charter school
    10  shall be dissolved. After the disposition of any liabilities and
    11  obligations of the charter school, any remaining assets of the
    12  charter school, both real and personal, shall be distributed on
    13  a proportional basis to the school entities with students
    14  enrolled in the charter school for the last full or partial
    15  school year of the charter school. In no event shall such school
    16  entities or the Commonwealth be liable for any outstanding
    17  liabilities or obligations of the charter school.
    18     (j)  When a charter is revoked or is not renewed, a student
    19  who attended the charter school shall apply to another public
    20  school in the student's school district of residence. Normal
    21  application deadlines will be disregarded under these
    22  circumstances. All student records maintained by the charter
    23  school shall be forwarded to the student's district of
    24  residence.]
    25     Section 6.  Section 1730-A of the act, added June 19, 1997
    26  (P.L.225, No.22), is amended to read:
    27     Section 1730-A.  Desegregation Orders.--[The local board of
    28  school directors of] If a school district [which] is operating
    29  under a desegregation plan approved by the Pennsylvania Human
    30  Relations Commission or a desegregation order by a Federal or
    20050H0464B0503                 - 24 -     

     1  State court, an institution of higher education, the local board
     2  of school directors and the appeal board shall not approve a
     3  charter school application if such charter school would place
     4  the school district in noncompliance with its desegregation
     5  order.
     6     Section 7.  This act shall apply to charter school
     7  applications made on or after the effective date of this
     8  section.
     9     Section 8.  This act shall take effect in 60 days.














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