SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY QUIGLEY, CLYMER, GABLER, COX, ADOLPH, AUMENT, BAKER, BARRAR, BEAR, BENNINGHOFF, BLOOM, BOYD, B. BOYLE, BRADFORD, BRENNAN, CALTAGIRONE, CAUSER, CHRISTIANA, CONKLIN, D. COSTA, P. COSTA, CREIGHTON, CUTLER, DAY, DELOZIER, DeLUCA, DENLINGER, DePASQUALE, DiGIROLAMO, ELLIS, J. EVANS, EVERETT, FARRY, FLECK, GEIST, GERGELY, GIBBONS, GILLEN, GINGRICH, GODSHALL, GRELL, GROVE, HACKETT, HARKINS, HARPER, HARRIS, HEFFLEY, HENNESSEY, HESS, HORNAMAN, HUTCHINSON, KAUFFMAN, M. K. KELLER, W. KELLER, KILLION, KNOWLES, KORTZ, KOTIK, KRIEGER, KULA, MAJOR, MALONEY, MANN, MARSICO, McGEEHAN, METCALFE, METZGAR, MICCARELLI, MICOZZIE, MILLARD, MILLER, MILNE, MOUL, MURPHY, MURT, MUSTIO, MYERS, M. O'BRIEN, O'NEILL, PAYTON, PEIFER, PETRI, PYLE, QUINN, RAPP, READSHAW, REED, REESE, REICHLEY, ROAE, ROCK, SABATINA, SANTONI, SAYLOR, SCAVELLO, SCHRODER, SHAPIRO, SONNEY, STEPHENS, STERN, STEVENSON, TALLMAN, TAYLOR, TOEPEL, TURZAI, VEREB, VULAKOVICH, WATERS, LAWRENCE, WAGNER, HICKERNELL, EVANKOVICH, SACCONE, EMRICK, BARBIN, BURNS, TOOHIL AND M. SMITH, APRIL 11, 2011

SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, JUNE 30, 2012   

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," in preliminary provisions,

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establishing the Special Education Funding Commission; in

terms and courses of study, further providing for agreements

with institutions of higher education and for definitions; in

opportunities for educational excellence, further providing

for concurrent enrollment agreements; extensively revising

charter school provisions; establishing an educational

opportunity scholarship tax credit; in reimbursements by

Commonwealth and between school districts, further providing

for definitions and providing for special education funding

for student achievement and instruction of eligible students,

for special education funding for eligible students with

disabilities in Category 3, for special education

accountability, for data collection and for protections; 

providing for educational improvement tax credit; and 

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repealing provisions of the Tax Reform Code of 1971 relating

to educational improvement tax credit; and providing for

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distribution of certain appropriated funds to the Department

of Education for regional community college services.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

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as the Public School Code of 1949, is amended by adding an

article to read:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

<--

as the Public School Code of 1949, is amended by adding a

section to read:

Section 120.  Special Education Funding Commission.--(a)

There is hereby established a Special Education Funding

Commission.

(b)  The Special Education Funding Commission shall review

and make recommendations related to special education funding as

provided in this section.

(c)  (1)  The commission shall consist of the following

members:

(i)  The chairman and minority chairman of the Education

Committee of the Senate and the chairman and minority chairman

of the Education Committee of the House of Representatives, or

their designees.

(ii)  Two (2) legislators from each of the four (4)

legislative caucuses, to be appointed by the President pro

tempore of the Senate and the Speaker of the House of

Representatives, in consultation with the Majority and Minority

Leaders of the Senate and the Majority and Minority Leaders of

the House of Representatives.

(iii)  The Secretary of Education, or a designee.

(iv)  The Secretary of the Budget, or a designee.

(v)  The Deputy Secretary for Elementary and Secondary

Education, or a designee.

(2)  The commission shall appoint a member to serve as

chairperson of the commission.

(d)  The commission shall hold its first meeting within

thirty (30) days of the effective date of this section.

Regardless of whether the Governor or all legislative caucuses

have actually approved members to the commission.

(e)  The commission shall hold meetings at the call of the

chairman.

(f)  The members may not receive compensation for their

services, but must be reimbursed for all necessary travel and

other reasonable expenses incurred in connection with the

performance of their duties as members of the commission.

(g)  The General Assembly shall provide administrative

support, meeting space and any other assistance required by the

commission to carry out its duties under this section in

cooperation with the Governor's Budget Office and the

department. The department shall provide the commission with

data, research and other information upon request by the

commission.

(h)  The commission shall identify factors that may be used

to determine the distribution of a change in special education

funding among the school districts in this Commonwealth.

(i)  The commission shall have all of the following powers

and duties:

(1)  Review and make recommendations related to special

education funding in this Commonwealth.

(2)  Consult with and utilize experts to assist in carrying

out the duties under this subsection.

(3)  Receive input from interested parties, including, but

not limited to, charter school and cyber charter school

operators.

(4)  Hold public hearings in different regions of this

Commonwealth.

(5)  Issue a report of its findings to the Governor, the

President pro tempore of the Senate, the Majority Leader and

Minority Leader of the Senate, the Education Committee of the

Senate, the Speaker of the House of Representatives, the

Majority Leader and Minority Leader of the House of

Representatives, the Education Committee of the House of

Representatives, the Secretary of Education and the State Board

of Education not later than November 30, 2012.

(6)  Determine the factors under this paragraph that may

include all of the following:

(i)  Three (3) categories of eligible students, established

so that students with disabilities typically requiring the

least-intensive range of services would compromise category 1,

students with disabilities typically requiring a middle range of

services would compromise category 2 and students with

disabilities typically requiring the most intensive range of

services would compromise category 3. The commission shall

determine a description of and parameters for each of the three

(3) categories.

(ii)  A student count for each school district for each of

the three (3) most recent years for each category of eligible

students. For category 3, the number of eligible students

residing or enrolled in the school district and classified in

category 3, except that the number of eligible students included

who are placed by the school district and served in public or

private separate schools, residential placements or homebound or

hospital placements must be identified separately.

(iii)  A weighting factor that differs from each of the three

(3) categories of students with disabilities based on the

typical range of services for each category. The weighting may

include adjustments for any of the following:

(A)  The market value/personal income aid ratio for each of

the three (3) most recent years for each school district.

(B)  The equalized millage rate averaged for each of the

three (3) most recent years for each school district.

(C)  Geographic price differences identified for each school

district of the department.

(D)  A proportional system for distributing the changes in

special education funding among the school districts, based on

factors listed in this subparagraph.

(iv)  Development and implementation by the department of

improved systems for collecting and documenting student

enrollment and membership in public schools, including revised

methods for calculating average daily membership.

(v)  Other factors related to the distribution of special

education funding.

(7)  Review and consider special education funding factors

utilized in operation throughout the United States.

(8)  In developing the special education funding factors

under subsection (h) and in completing the report required under

this subsection, consider the impact these factors may have on

the distribution of special education funding among the school

districts.

(9)  Review the administration of State and regional special

education programs and services to determine if cost savings may

be achieved and make recommendations to implement the savings.

(10)  Consult with and utilize experts to assist them in

carrying out the duties under this subsection.

(11)  Prior to recommending a special education formula under

this section, consider nationally accepted accounting and

budgeting standards.

(j)  The special education formula developed by the

commission shall not go into effect unless the formula is

approved by an act of the General Assembly enacted after the

effective date of this section.

(k)  Every five years the commission shall be reconstituted

under subsection (c) and shall meet and hold public hearings to

review the operations of the special education funding provision

of this section, shall make a further report and issue the

report to the recipients listed in subsection (i)(5). When in

receipt of a further report recommending changes to the special

education funding formula, the General Assembly shall consider

and take action to enact the formula into law in accordance with

subsection (j).

(l)  The General Assembly shall, through the annual

appropriations process, determine the level of State funding for

special education and the amount of any change in funding. The

special education formula developed under this section shall

determine only the distribution of any increase in special

education funding among the school districts of this

Commonwealth above the amount of special education funding in

the base year and shall not be used for any other purpose.

(m)  Notwithstanding any provision of law to the contrary,

for the 2012-2013 school year and each school year thereafter,

any State funding for special education in an amount that does

not exceed the amount of State funding for special education in

the base year shall be allocated in the same manner as the State

funding was allocated in the base year.

(n)  As used in this section, the following words and phrases

shall have the meanings given to them in this subsection unless

the context clearly indicates otherwise:

"Commission."  The Special Education Funding Commission

established under this section.

"Department."  The Department of Education of the

Commonwealth.

Section 2.  Section 1525 of the act, added July 4, 2004

(P.L.536, No.70), is amended to read:

Section 1525.  Agreements with Institutions of Higher

Education.--Notwithstanding any other provision of law to the

contrary, a school district, charter school, regional charter

school, cyber charter school or an area vocational-technical

school may enter into an agreement with one or more institutions

of higher education approved to operate in this Commonwealth in

order to allow [resident] students to attend such institutions

of higher education while the [resident] students are enrolled

in the school district, charter school, regional charter school,

cyber charter school or an area vocational-technical school. The

agreement may be structured so that high school students may

receive credits toward completion of courses at the school

district, charter school, regional charter school, cyber charter

school or an area vocational-technical school and at

institutions of higher education approved to operate in this

Commonwealth.

Section 2.1.  The definitions of "concurrent student" and

"school entity" in section 1602-B of the act, added July 13,

2005 (P.L.226, No.46), are amended to read:

Section 1602-B.  Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Concurrent student."  A student who is enrolled in a school

district, a charter school, a regional charter school, a cyber

charter school, an area vocational-technical school, a nonpublic

school, a private school or a home education program under

section 1327.1 and who takes a concurrent course through a

concurrent enrollment program.

* * *

"School entity."  A school district, a charter school, a

regional charter school, a cyber charter school or an area

vocational-technical school.

* * *

Section 3.  Section 1613-B of the act is amended by adding a

subsection to read:

Section 1613-B.  Concurrent enrollment agreements.

* * *

(c)  Charter schools, regional charter schools and cyber

charter schools.--Charter schools, regional charter schools and

cyber charter schools shall have the power and authority to

enter into a concurrent enrollment agreement with an institution

of higher education, and appropriate credit shall be awarded to

students concurrently enrolled under the agreement.

Section 4.  Section 1703-A of the act, amended June 29, 2002

(P.L.524, No.88), is amended to read:

Section 1703-A.  Definitions.--As used in this article,

"Administrator" shall include an employe of a charter school

or cyber charter school, including the chief administrator of a

charter school or cyber charter school and any other employe,

who by virtue of the employe's position is responsible for

taking official action of a nonministerial nature with regard to

contracting or procurement, administering or monitoring grants

or subsidies, managing or regulating staff, student and school

activities or any activity where the official action has an

economic impact of greater than a de minimis nature on the

interests of any person.

"Appeal board" shall mean the State Charter School Appeal

Board established by this article.

"Assessment" shall mean the Pennsylvania System of School

Assessment test, the Keystone Exam or another test established

by the State board to meet the requirements of section 2603-

B(d)(10)(i) and required under the No Child Left Behind Act of

2001 (Public Law 107-110, 115 Stat. 1425) or its successor

Federal statute.

"At-risk student" shall mean a student at risk of educational

failure because of limited English proficiency, poverty,

community factors, truancy, academic difficulties or economic

disadvantage.

"Charter school" shall mean an independent public school

established and operated under a charter from the local board of

school directors and in which students are enrolled or attend. A

charter school must be organized as a public, nonprofit

corporation. Charters may not be granted to any for-profit

entity.

"Charter school entity" shall mean a charter school, regional

charter school or cyber charter school.

"Charter school foundation" shall mean a nonprofit

organization, as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),

that provides funding, resources or otherwise serves to support

a charter school or cyber charter school, either directly or

through an affiliated entity.

"Chief administrator" shall mean an individual appointed by a

board of trustees to oversee and manage the operation of a

charter school or cyber charter school. The term shall not

include a professional staff member under this article.

["Chief executive officer" shall mean an individual appointed

by the board of trustees to oversee and manage the operation of

the charter school, but who shall not be deemed a professional

staff member under this article.]

"Commission" shall mean the Charter School Funding Advisory

Commission established by this article.

"Cyber charter school" shall mean an independent public

school established and operated under a charter from the

Department of Education and in which the school uses technology

in order to provide a significant portion of its curriculum and

to deliver a significant portion of instruction to its students

through the Internet or other electronic means. A cyber charter

school must be organized as a public, nonprofit corporation. A

charter may not be granted to a for-profit entity.

"Department" shall mean the Department of Education of the

Commonwealth.

"Educational management service provider" shall mean a for-

profit education management organization, nonprofit charter

management organization, school design provider, business

manager or any other partner entity with which a board of

trustees of a charter school or cyber charter school contracts

to provide educational design, business services, comprehensive

management or personnel functions or to implement the charter.

The term shall not include a charter school foundation.

"Immediate family member" shall mean a parent, spouse, child,

brother or sister.

"Local board of school directors" shall mean the board of

directors of a school district in which a proposed or an

approved charter school is located.

"Nonrelated" shall mean an individual who is not an immediate

family member.

"Regional charter school" shall mean an independent public

school established and operated under a charter from more than

one local board of school directors and in which students are

enrolled or attend. A regional charter school must be organized

as a public, nonprofit corporation. Charters may not be granted

to any for-profit entity.

"Right-to-Know Law" shall mean the act of February 14, 2008

(P.L.6, No.3), known as the "Right-to-Know Law."

"School district of residence" shall mean the school district

in this Commonwealth in which [the parents or guardians of a

child reside] a child resides as determined under section 1302.

"School entity" shall mean a school district, intermediate

unit, joint school or area vocational-technical school.

"Secretary" shall mean the Secretary of Education of the

Commonwealth.

"State board" shall mean the State Board of Education of the

Commonwealth.

Section 5.  The act is amended by adding a section to read:

Section 1704-A.  Charter School Funding Advisory

Commission.--(a)  (1)  The Governor shall immediately convene a

Statewide advisory commission, to be known as the Charter School

Funding Advisory Commission, to examine the financing of charter

schools and cyber charter schools in the public education

system. The commission shall examine how charter school and

cyber charter school finances affect opportunities for teachers,

parents, pupils and community members to establish and maintain

schools that operate independently from the existing school

district structure as a method to accomplish the requirements of

section 1702-A. The Office of the Budget and the department

shall provide administrative support, meeting space and any

other assistance required by the commission to carry out its

duties under this section.

(2)  The commission shall consist of the following members:

(i)  One member of the Senate appointed by the President pro

tempore of the Senate.

(ii)  One member of the Senate appointed by the Majority

Leader of the Senate.

(iii)  One member of the Senate appointed by the Minority

Leader of the Senate.

(iv)  One member of the House of Representatives appointed by

the Speaker of the House of Representatives.

(v)  One member of the House of Representatives appointed by

the Majority Leader of the House of Representatives.

(vi)  One member of the minority party of the House of

Representatives appointed by the Minority Leader of the House of

Representatives.

(vii)  The secretary or a designee.

(viii)  The chairman of the State board or a designee.

(ix)  The following members, who shall be appointed by the

Governor:

(A)  One (1) member who shall represent charter schools.

(B)  One (1) member who shall represent regional charter

schools.

(C)  One (1) member who shall represent cyber charter

schools.

(D)  One (1) member who shall represent teachers and may be a

public school teacher, a charter school teacher, a regional

charter school teacher, a cyber charter school teacher or a

nonpublic school teacher.

(E)  One (1) member who shall represent school

administrators.

(F)  One (1) member who shall represent school board members.

(G)  One (1) member who shall represent a business manager of

a school district.

(H)  One (1) member who shall represent a parent of a child

attending a charter school or cyber charter school.

(I)  One (1) member who shall represent an institution of

higher education with experience in operating a charter school

or cyber charter school.

(3)  Members of the commission shall be appointed within

twenty (20) days of the effective date of this section. Any

vacancy on the commission shall be filled by the original

appointing authority. The commission shall select a chairman and

vice chairman from among its membership at an organizational

meeting. The organizational meeting shall take place not later

than thirty (30) days following the effective date of this

section.

(4)  The commission shall hold meetings at the call of the

chairman. The commission may also hold public hearings on the

matters to be considered by the commission at locations

throughout this Commonwealth. All meetings and public hearings

of the commission shall be deemed public meetings for the

purpose of 65 Pa.C.S. Ch. 7 (relating to open meetings). Nine

(9) members of the commission shall constitute a quorum at any

meeting. Each member of the commission may designate another

person to represent that member at meetings of the commission.

(5)  Commission members shall receive no compensation for

their services but shall be reimbursed for all necessary travel

and other reasonable expenses incurred in connection with the

performance of their duties as members. Whenever possible, the

commission shall utilize the services and expertise of existing

personnel and staff of State government. The department may

utilize undistributed funds not expended, encumbered or

committed from appropriations for grants and subsidies made to

the department, not to exceed $300,000, to carry out this

section.

(6)  The commission shall have the following powers and

duties:

(i)  Meet with current charter school operators within this

Commonwealth, including cyber charter schools with blended

programs.

(ii)  Review charter school financing laws in operation

throughout the United States.

(iii)  Evaluate and make recommendations on the following:

(A)  Powers and duties extended to charter schools and cyber

charter schools as they relate to financing.

(B)  Funding formulas for charter schools and cyber charter

schools, including reimbursement procedures and funding under

Title I of the Elementary and Secondary Education Act of 1965

(Public Law 89-10, 20 U.S.C. § 6301 et seq.).

(C)  The process by which charter schools and cyber charter

schools are funded under section 1725-A.

(D)  Student residency as it relates to funding.

(E)  Special education and other special program funding.

(F)  Charter school transportation.

(G)  Charter school eligibility to receive grants and

funding.

(H)  Appropriate assessment fees on charter schools and cyber

charter schools.

(I)  Consideration of recognizing a charter school for

additional designations as a local education agency.

(iv)  The committee shall, no later than November 30, 2012,

issue a report of its findings and recommendations to the

Governor, the President pro tempore of the Senate, the Minority

Leader of the Senate, the chairman and minority chairman of the

Education Committee of the Senate, the Speaker of the House of

Representatives, the Minority Leader of the House of

Representatives and the chairman and minority chairman of the

Education Committee of the House of Representatives.

(b)  (Reserved).

Section 6.  Section 1715-A of the act, amended or added June

19, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is

amended to read:

Section 1715-A.  Charter School Requirements.--(a)  Charter

schools shall be required to comply with the following

provisions:

(1)  Except as otherwise provided in this article, a charter

school is exempt from statutory requirements established in this

act, from regulations of the State board and the standards of

the secretary not specifically applicable to charter schools.

Charter schools are not exempt from statutes applicable to

public schools other than this act.

(2)  A charter school shall be accountable to the parents,

the public and the Commonwealth, with the delineation of that

accountability reflected in the charter. Strategies for

meaningful parent and community involvement shall be developed

and implemented by each school.

(3)  A charter school shall not unlawfully discriminate in

admissions, hiring or operation.

(4)  A charter school shall be nonsectarian in all

operations.

(5)  (i)  A charter school shall not provide any religious

instruction, nor shall it display religious objects and symbols

on the premises of the charter school. The charter school shall

provide for discrete and separate entrances to buildings

utilized for school purposes only.

(ii)  It shall not be a violation of this section for a

charter school to utilize a sectarian facility:

(A)  if the religious objects and symbols within the portions

of the facility utilized by the school are covered or removed to

the extent reasonably feasible; or

(B)  in which the unused portion of the facility or its

common areas contain religious symbols and objects.

(6)  A charter school shall not advocate unlawful behavior.

(7)  A charter school shall only be subject to the laws and

regulations as provided for in section 1732-A, or as otherwise

provided for in this article.

(8)  (i)  A charter school shall participate in [the

Pennsylvania State Assessment System as provided for in 22 Pa.

Code Ch. 5 (relating to curriculum), or subsequent regulations

promulgated to replace 22 Pa. Code Ch. 5,] assessments in the

manner in which the school district in which the charter school

is located is scheduled to participate.

(ii)  A charter school shall be treated in the same manner as

a school district for the purposes of measuring the charter

school's adequate yearly progress under the No Child Left Behind

Act of 2001 or any successor statute.

(9)  A charter school shall provide a minimum of one hundred

eighty (180) days of instruction or nine hundred (900) hours per

year of instruction at the elementary level, or nine hundred

ninety (990) hours per year of instruction at the secondary

level. Nothing in this clause shall preclude the use of computer

and satellite linkages for delivering instruction to students.

(10)  Boards of trustees and contractors of charter schools

shall be subject to the following statutory requirements

governing construction projects and construction-related work:

(i)  The following provisions of this act:

(A)  Sections 751 and 751.1.

(B)  Sections 756 and 757 insofar as they are consistent with

the act of December 20, 1967 (P.L.869, No.385), known as the

"Public Works Contractors' Bond Law of 1967."

(ii)  Section 1 of the act of May 1, 1913 (P.L.155, No.104),

entitled "An act regulating the letting of certain contracts for

the erection, construction, and alteration of public buildings."

(iii)  The act of August 11, 1961 (P.L.987, No.442), known as

the "Pennsylvania Prevailing Wage Act."

(iv)  The "Public Works Contractors' Bond Law of 1967."

(v)  The act of March 3, 1978 (P.L.6, No.3), known as the

"Steel Products Procurement Act."

(11)  Trustees of a charter school shall be public

officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to

ethics standards and financial disclosure) and shall file a

statement of financial interests for the preceding calendar year

with the State Ethics Commission and the local board of school

directors or, in the case of a cyber charter school, the

department, not later than May 1 of each year that members hold

the position and of the year after a member leaves the position.

All members of the board of trustees of a charter school shall

take the oath of office as required under section 321 before

entering upon the duties of their office.

[(12)  A person who serves as an administrator for a charter

school shall not receive compensation from another charter

school or from a company that provides management or other

services to another charter school. The term "administrator"

shall include the chief executive officer of a charter school

and all other employes of a charter school who by virtue of

their positions exercise management or operational oversight

responsibilities. A person who serves as an administrator for a

charter school shall be a public official under 65 Pa.C.S. Ch.

11 (relating to ethics standards and financial disclosure). A

violation of this clause shall constitute a violation of 65

Pa.C.S. § 1103(a) (relating to restricted activities), and the

violator shall be subject to the penalties imposed under the

jurisdiction of the State Ethics Commission.]

(b)  An individual who serves as an administrator for a

charter school shall be a public employe for the purposes of 65

Pa.C.S. Ch. 11 and shall file a statement of financial interests

for the preceding calendar year with the board of trustees not

later than May 1 of each year that the person holds the position

and of the year after the person leaves the position.

(c)  (1)  No individual who serves as an administrator for a

charter school may receive compensation from another charter

school, cyber charter school or from an educational management

service provider, unless:

(i)  The administrator has submitted a sworn statement to the

charter school board of trustees and the sworn statement details

the work for the other entity and includes the projected number

of hours, rate of compensation and projected duration.

(ii)  The board of trustees has reviewed the sworn statement

under subclause (i) and agreed by resolution to grant permission

to the administrator.

(2)  A copy of the sworn statement under clause (1)(i) and

the resolution by the board of trustees granting the permission

shall be kept on file with the charter school and the board of

local school directors.

(3)  No administrator of a charter school or immediate family

member may serve as a voting member of the board of trustees of

that individual's charter school.

(4)  (i)  No administrator of a charter school may

participate in the selection, award or administration of a

contract if the person has a conflict of interest as that term

is defined in 65 Pa.C.S. § 1102 (relating to definitions).

(ii)  An administrator who knowingly violates this clause

commits a violation of 65 Pa.C.S. § 1103(a) (relating to

restricted activities) and shall be subject to the penalties

imposed under the jurisdiction of the State Ethics Commission.

(iii)  Any contract made in violation of this clause shall be

voidable by the board of trustees of the charter school.

(5)  An administrator shall be immediately dismissed upon

conviction for an offense graded as a felony, an infamous crime,

an offense pertaining to fraud, theft or mismanagement of public

funds or any crime involving moral turpitude.

(d)  The board of trustees of a charter school entity shall

supply the grantor of the charter school entity and the

secretary a list of the amount of rental payments, which are

guarantees for school building debt or bonds that become due

during the fiscal year together with the amount paid on each

item of indebtedness. Any charter school entity that elects to

issue debt shall hold in escrow an amount sufficient to pay the

annual amount of the sum of the principal maturing or subject to

mandatory redemption and interest owing by the charter school

entity or sinking fund deposit due by the charter school entity.

(e)  Fund balance limit shall be as follows:

(1)  For the 2013-2014 school year and each school year

thereafter, a charter school entity shall not accumulate an

unassigned fund balance greater than the charter school entity

fund balance limit, which will be determined as follows:

(2)  Any unassigned fund balance in place on June 30, 2013,

that exceeds the charter school entity fund balance limit shall

be refunded on a pro rata basis within 90 days to all school

districts that paid tuition to the charter school entity on

behalf of students enrolled in the 2011-2012 and 2012-2013

school years. The funds may not be used to pay bonuses to any

administrator, board of trustee member, employe, staff or

contractor and may not be transferred to a charter school

foundation.

(3)  For the 2013-2014 school year and each school year

thereafter, any unassigned fund balance in excess of the charter

school entity fund balance limit shall be refunded on a pro rata

basis to all school districts that paid tuition to the charter

school entity in the prior school year.

(4)  By August 15, 2013, and August 15 of each year

thereafter, each charter school entity shall provide its grantor

and the board with information certifying compliance with this

section. The information shall be provided in a form and manner

prescribed by the board and shall include information on the

charter school entity's estimated ending unassigned fund balance

expressed as a dollar amount and as a percentage of the charter

school entity's total budgeted expenditures for that school

year.

Section 7.  Section 1716-A(c) of the act, added June 19, 1997

(P.L.225, No.22), is amended and the section is amended by

adding subsections to read:

Section 1716-A.  Powers of Board of Trustees.--* * *

(b.1)  (1)  For a charter school chartered after the

effective date of this subsection, an individual shall be

prohibited from serving as a voting member of the board of

trustees of the charter school if the individual or an immediate

family member receives compensation from or is employed by or is

a board member of the local board of school directors who

participated in the initial review, approval, oversight,

evaluation or renewal process of the charter school chartered by

that board.

(2)  An employe of the school district that chartered the

charter school may serve as a member of the board of trustees

without voting privileges.

(b.2)  (1)  No member of the board of trustees of a charter

school may participate in the selection, award or administration

of any contract if the member has a conflict of interest as that

term is defined in 65 Pa.C.S. § 1102 (relating to definitions).

(2)  Any member of the board of trustees who in the discharge

of the person's official duties would be required to vote on a

matter that would result in a conflict of interest shall abstain

from voting and follow the procedures required under 65 Pa.C.S.

§ 1103(j) (relating to restricted activities).

(3)  A member of the board of trustees who knowingly violates

this subsection commits a violation of 65 Pa.C.S. § 1103(a) and

shall be subject to the penalties imposed under the jurisdiction

of the State Ethics Commission.

(4)  A contract made in violation of this subsection shall be

voidable by a court of competent jurisdiction, if the suit is

commenced within ninety (90) days of the making of the contract.

(5)  No member of the board of trustees of a charter school

shall be compensated for duties on the board.

(b.3)  A member of the board of trustees of a charter school

shall be automatically disqualified and immediately removed from

the board upon conviction for an offense graded as a felony, an

infamous crime, an offense pertaining to fraud, theft or

mismanagement of public funds, any offense pertaining to his

official capacity as a board member or any crime involving moral

turpitude.

(c)  The board of trustees shall comply with [the act of July

3, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65

Pa.C.S. Ch. 7 (relating to open meetings).

(d)  (1)  (i)  The board of trustees of a charter school

shall consist of a minimum of five (5) nonrelated voting

members.

(ii)  If a charter school has fewer than five (5) nonrelated

voting members serving on its board on the effective date of

this subsection, the charter school shall, within sixty (60)

days, appoint additional members to the board to meet the

minimum requirements of this section.

(2)  Within one (1) year of the effective date of this

subsection, at least one (1) member of the board of trustees of

a charter school shall be a parent of a child currently

attending the charter school. The board member shall be eligible

to serve only so long as the child attends the charter school.

(e)  (1)  A majority of the voting members of the board of

trustees shall constitute a quorum. If less than a majority is

present at any meeting, no business may be transacted at the

meeting.

(2)  The affirmative vote of a majority of all the voting

members of the board of trustees, duly recorded, shall be

required in order to take action on the subjects enumerated

under subsection (a).

(f)  (1)  In any case where the board of trustees of a

charter school fails to pay or to provide for for the payment

of:

(i)  any indebtedness at date of maturity or date of

mandatory redemption or on any sinking fund deposit date; or

(ii)  any interest due on such indebtedness on any interest

payment date or on any sinking fund deposit date in accordance

with the schedule under which the bonds were issued.

The bank or trustee for the bonds shall notify the board of

charter school trustees of its obligation and shall immediately

notify the grantor of the charter school and the secretary.

(2)  The secretary shall withhold any appropriation due the

charter school in any amount necessary to fully fund the amount

held in escrow by the charter school which shall be equal to the

sum of the principal amount maturing or subject to mandatory

redemption and interest owing by the charter school or sinking

fund deposit due by such charter school and shall require

payover of the amount withheld to the bank or trustee acting as

the sinking fund depositary for the bond issue from the escrow

account.

(3)  Payments made pursuant to this article shall not be

given priority over payments required pursuant to sections 633

and 785 and 53 Pa.C.S. § 8125(b) (relating to security for tax

anticipation notes and sinking fund), or an agreement pursuant

to which the board is required to make payment to a holder of

debt issued by or on behalf of a school entity.

Section 8.  Sections 1717-A(c), (d), (e), (f) and (i) and

1719-A of the act, added June 19, 1997 (P.L.225, No.22), are

amended to read:

Section 1717-A.  Establishment of Charter School.--* * *

(c)  An application to establish a charter school shall be

submitted to the local board of school directors of the district

where the charter school will be located by [November 15]

October 1 of the school year preceding the school year in which

the charter school will be established except that for a charter

school beginning in the 1997-1998 school year, an application

must be received by July 15, 1997. In the 1997-1998 school year

only, applications shall be limited to recipients of fiscal year

1996-1997 Department of Education charter school planning

grants.

(d)  Within forty-five (45) days of receipt of an

application, the local board of school directors in which the

proposed charter school is to be located shall hold at least one

public hearing on the provisions of the charter application,

under [the act of July 3, 1986 (P.L.388, No.84), known as the

"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings). 

At least forty-five (45) days must transpire between the first

public hearing and the final decision of the board on the

charter application except that for a charter school beginning

in the 1997-1998 school year, only thirty (30) days must

transpire between the first public hearing and the final

decision of the board.

(e)  (1)  Not later than seventy-five (75) days after the

first public hearing on the application, the local board of

school directors shall grant or deny the application. For a

charter school beginning in the 1997-1998 school year, the local

board of school directors shall grant or deny the application no

later than sixty (60) days after the first public hearing.

(2)  A charter school application submitted under this

article shall be evaluated by the local board of school

directors based on criteria, including, but not limited to, the

following:

(i)  The demonstrated, sustainable support for the charter

school plan by teachers, parents, other community members and

students, including comments received at the public hearing held

under subsection (d).

(ii)  The capability of the charter school applicant, in

terms of support and planning, to provide comprehensive learning

experiences to students pursuant to the adopted charter.

(iii)  The extent to which the application considers the

information requested in section 1719-A and conforms to the

legislative intent outlined in section 1702-A.

[(iv)  The extent to which the charter school may serve as a

model for other public schools.]

(3)  The local board of school directors, in the case of an

existing school being converted to a charter school, shall

establish the alternative arrangements for current students who

choose not to attend the charter school.

(4)  A charter application shall be deemed approved by the

local board of school directors of a school district upon

affirmative vote by a majority of all the directors. Formal

action approving or denying the application shall be taken by

the local board of school directors at a public meeting, with

notice or consideration of the application given by the board,

under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

(5)  Written notice of the board's action shall be sent to

the applicant, the department and the appeal board. If the

application is denied, the reasons for the denial, including a

description of deficiencies in the application, shall be clearly

stated in the notice sent by the local board of school directors

to the charter school applicant.

(f)  At the option of the charter school applicant, a denied

application may be revised and resubmitted to the local board of

school directors. Following the appointment and confirmation of

the Charter School Appeal Board under section 1721-A, the

decision of the local board of school directors may be appealed

to the appeal board. When an application is revised and

resubmitted to the local board of school directors, the board

may schedule additional public hearings on the revised

application. The board shall consider the revised and

resubmitted application at the first board meeting occurring at

least forty-five (45) days after receipt of the revised

application by the board. For a revised application resubmitted

for the 1997-1998 school year, the board shall consider the

application at the first board meeting occurring at least thirty

(30) days after its receipt. The board shall provide notice of

consideration of the revised application under [the "Sunshine

Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local

school board may be taken until July 1, 1999.

* * *

(i)  (1)  The appeal board shall have the exclusive review of

an appeal by a charter school applicant, or by the board of

trustees of an existing charter school, of a decision made by a

local board of directors not to grant a charter as provided in

this section.

[(2)  In order for a charter school applicant to be eligible

to appeal the denial of a charter by the local board of

directors, the applicant must obtain the signatures of at least

two per centum of the residents of the school district or of one

thousand (1,000) residents, whichever is less, who are over

eighteen (18) years of age. For a regional charter school, the

applicant must obtain the signatures of at least two per centum

of the residents of each school district granting the charter or

of one thousand (1,000) residents from each of the school

districts granting the charter, whichever is less, who are over

eighteen (18) years of age. The signatures shall be obtained

within sixty (60) days of the denial of the application by the

local board of directors in accordance with clause (3).

(3)  Each person signing a petition to appeal denial of a

charter under clause (2) shall declare that he or she is a

resident of the school district which denied the charter

application and shall include his or her printed name;

signature; address, including city, borough or township, with

street and number, if any; and the date of signing. All pages

shall be bound together. Additional pages of the petition shall

be numbered consecutively. There shall be appended to the

petition a statement that the local board of directors rejected

the petition for a charter school, the names of all applicants

for the charter, the date of denial by the board and the

proposed location of the charter school. No resident may sign

more than one petition relating to the charter school

application within the sixty (60) days following denial of the

application. The department shall develop a form to be used to

petition for an appeal.

(4)  Each petition shall have appended thereto the affidavit

of some person, not necessarily a signer, setting forth all of

the following:

(i)  That the affiant is a resident of the school district

referred to in the petition.

(ii)  The affiant's residence, giving city, borough or

township, with street and number, if any.

(iii)  That the signers signed with full knowledge of the

purpose of the petition.

(iv)  That the signers' respective residences are correctly

stated in the petition.

(v)  That the signers all reside in the school district.

(vi)  That each signer signed on the date set forth opposite

the signer's name.

(vii)  That to the best of the affiant's knowledge and

belief, the signers are residents of the school district.

(5)  If the required number of signatures are obtained within

sixty (60) days of the denial of the application, the applicant

may present the petition to the court of common pleas of the

county in which the charter school would be situated. The court

shall hold a hearing only on the sufficiency of the petition.

The applicant and local board of school directors shall be given

seven (7) days' notice of the hearing. The court shall issue a

decree establishing the sufficiency or insufficiency of the

petition. If the petition is sufficient, the decree shall be

transmitted to the State Charter School Appeal Board for review

in accordance with this section. Notification of the decree

shall be given to the applicant and the local board of

directors.]

(6)  In any appeal, the decision made by the local board of

directors shall be reviewed by the appeal board on the record as

certified by the local board of directors. The appeal board

shall give due consideration to the findings of the local board

of directors and specifically articulate its reasons for

agreeing or disagreeing with those findings in its written

decision. The appeal board shall have the discretion to allow

the local board of directors and the charter school applicant to

supplement the record if the supplemental information was

previously unavailable.

(7)  Not later than thirty (30) days after the date of notice

of the acceptance of the appeal, the appeal board shall meet to

officially review the certified record.

(8)  Not later than sixty (60) days following the review

conducted pursuant to clause (6), the appeal board shall issue a

written decision affirming or denying the appeal. If the appeal

board has affirmed the decision of the local board of directors,

notice shall be provided to both parties.

(9)  A decision of the appeal board to reverse the decision

of the local board of directors shall serve as a requirement for

the local board of directors of a school district or school

districts, as appropriate, to grant the application and sign the

written charter of the charter school as provided for in section

1720-A. Should the local board of directors fail to grant the

application and sign the charter within ten (10) days of notice

of the reversal of the decision of the local board of directors,

the charter shall be deemed to be approved and shall be signed

by the chairman of the appeal board.

(10)  All decisions of the appeal board shall be subject to

appellate review by the Commonwealth Court.

Section 1719-A.  Contents of Application.--[An] (a)  The

department shall create a standard application for charter

school applicants to establish a charter school. The form shall

include all of the following information:

(1)  The identification of the charter applicant.

(2)  The name of the proposed charter school.

(3)  The grade or age levels served by the school.

(4)  [The proposed governance structure of the charter

school, including a description and method for the appointment

or election of members of the board of trustees.] An

organization chart clearly presenting the proposed governance

structure of the school, including lines of authority and

reporting between the board of trustees, administrators, staff

and any educational management service provider that will

provide management services to the charter school.

(4.1)  A clear description of the roles and responsibilities

for the board of trustees, administrators and any other

entities, including a charter school foundation, shown in the

organization chart.

(4.2)  A clear description and method for the appointment or

election of members of the board of trustees.

(4.3)  Standards for board performance, including compliance

with all applicable laws, regulations and terms of the charter.

(4.4)  If the charter school intends to contract with an

educational management service provider for services, all of the

following:

(i)  Evidence of the education management service provider's

record in serving student populations, including demonstrated

academic achievement and demonstrated management of nonacademic

school functions, including proficiency with public school-based

accounting, if applicable.

(ii)  A draft contract stating all of the following:

(A)  The officers, chief administrator and administrators of

the education management service provider.

(B)  The proposed duration of the service contract.

(C)  Roles and responsibilities of the governing board, the

school staff and the educational management service provider.

(D)  The scope of services, personnel and resources to be

provided by the educational management service provider.

(E)  Performance evaluation measures and timelines.

(F)  The compensation structure, including clear

identification of all fees to be paid to the educational

management service provider.

(G)  Methods of contract oversight and enforcement.

(H)  Investment disclosure or the advance of moneys by the

educational management service provider on behalf of the charter

school.

(I)  Conditions for renewal and termination of the contract.

(iii)  Disclosure and explanation of any existing or

potential conflicts of interest between the members of the board

of trustees and the proposed educational management service

provider or any affiliated business entities, including a

charter school foundation qualified as a support organization

under the Internal Revenue Code of 1986 (Public Law 99-514, 26

U.S.C. § 1 et seq.).

(5)  The mission and education goals of the charter school,

the curriculum to be offered and the methods of assessing

whether students are meeting educational goals.

(6)  The admission policy and criteria for evaluating the

admission of students which shall comply with the requirements

of section 1723-A.

(7)  Procedures which will be used regarding the suspension

or expulsion of pupils. Said procedures shall comply with

section 1318.

(8)  Information on the manner in which community groups will

be involved in the charter school planning process.

(9)  The financial plan for the charter school and the

provisions which will be made for auditing the school under

[section] sections 437 and 1728-A, including the role of any

charter school foundation.

(10)  Procedures which shall be established to review

complaints of parents regarding the operation of the charter

school.

(11)  A description of and address of the physical facility

in which the charter school will be located and the ownership

thereof and any lease arrangements.

(12)  Information on the proposed school calendar for the

charter school, including the length of the school day and

school year consistent with the provisions of section 1502.

(13)  The proposed faculty, if already determined, and a

professional development and continuing education plan for the

faculty and professional staff of [a] the charter school.

(14)  Whether any agreements have been entered into or plans

developed with the local school district regarding participation

of the charter school students in extracurricular activities

within the school district. Notwithstanding any provision to the

contrary, no school district of residence shall prohibit a

student of a charter school from participating in any

extracurricular activity of that school district of residence:

Provided, That the student is able to fulfill all of the

requirements of participation in such activity and the charter

school does not provide the same extracurricular activity.

(15)  A report of criminal history record, pursuant to

section 111, for all individuals identified in the application 

who shall have direct contact with students and a plan for

satisfying the proper criminal history record clearances

required for all other staff.

(16)  An official clearance statement regarding child injury

or abuse from the Department of Public Welfare as required by 23

Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for

employment in schools) for all individuals identified in the

application who shall have direct contact with students and a

plan for satisfying the proper official clearance statement

regarding child injury or abuse required for all other staff.

(17)  How the charter school will provide adequate liability

and other appropriate insurance for the charter school, its

employes and the board of trustees of the charter school.

(18)  Policies regarding truancy, absences and withdrawal of

students, including the manner in which the charter school will

monitor attendance consistent with section 1715-A(a)(9). 

(19)  How the charter school will meet the standards included

in the performance matrix developed by the department under

section 1732-A(c)(3).

(20)  Indicate whether or not the charter school will seek

accreditation by a nationally recognized accreditation agency,

including the Middle States Association of Colleges and Schools

or another regional institutional accrediting agency recognized

by the United States Department of Education or an equivalent

federally recognized body for charter school education.

(b)  A local board of school directors may not impose

additional terms, develop its own application or require

additional information outside the standard application form

required under subsection (a).

Section 9.  Section 1720-A of the act, amended July 9, 2008

(P.L.846, No.61), is amended to read:

Section 1720-A.  Term and Form of Charter.--(a)  Upon

approval of a charter application under section 1717-A, a

written charter shall be developed which shall contain the

provisions of the standardized charter application under section

1719-A and which shall be signed by the local board of school

directors of a school district, by the local boards of school

directors of a school district in the case of a regional charter

school or by the chairman of the appeal board pursuant to

section [1717-A(i)(5)] 1717-A(i) and the board of trustees of

the charter school. This written charter, when duly signed by

the local board of school directors of a school district, or by

the local boards of school directors of a school district in the

case of a regional charter school, and the charter school's

board of trustees, shall act as legal authorization for the

establishment of a charter school. This written charter shall be

legally binding on both the local board of school directors of a

school district and the charter school's board of trustees.

[Except as otherwise provided in subsection (b), the] If the

charter school contracts with an educational management service

provider, an executed contract shall be signed once the charter

is approved. The charter shall be for a period of [no less than

three (3) nor more than] five (5) years and may be renewed for

[five (5)] ten (10) year periods upon reauthorization by the

local board of school directors of a school district or the

appeal board. A charter will be granted only for a school

organized as a public, nonprofit corporation.

(b)  [(1)  Notwithstanding subsection (a), a governing board

of a school district of the first class may renew a charter for

a period of one (1) year if the board of school directors

determines that there is insufficient data concerning the

charter school's academic performance to adequately assess that

performance and determines that an additional year of

performance data would yield sufficient data to assist the

governing board in its decision whether to renew the charter for

a period of five (5) years.

(2)  A one-year renewal pursuant to paragraph (1) shall not

be considered an adjudication and may not be appealed to the

State Charter School Appeal Board.

(3)  A governing board of a school district of the first

class does not have the authority to renew a charter for

successive one (1) year periods] (Reserved).

(c)  (1)  A charter school may request amendments to its

approved written charter by filing a written document describing

the requested amendment to the local board of school directors.

(2)  Within twenty (20) days of its receipt of the request

for an amendment, the local board of school directors shall hold

a public hearing on the requested amendment under 65 Pa.C.S. Ch.

7 (relating to open meetings).

(3)  Within twenty (20) days after the hearing, the local

board of school directors shall grant or deny the requested

amendment. Failure by the local board of school directors to

hold a public hearing and to grant or deny the amendments within

the time period specified shall be deemed a denial.

(4)  An applicant for an amendment shall have the right to

appeal the denial of a requested amendment to the appeal board

provided for under section 1721-A.

Section 10.  Section 1721-A(a) and (e) of the act, added June

19, 1997 (P.L.225, No.22), are amended to read:

Section 1721-A.  State Charter School Appeal Board.--(a)  The

State Charter School Appeal Board shall consist of the Secretary

of Education and [six (6)] the following members who shall be

appointed by the Governor by and with the consent of a majority

of all the members of the Senate. [Appointments by the Governor

shall not occur prior to January 1, 1999.] The Governor shall

select the chairman of the appeal board to serve at the pleasure