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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY FLECK, O'NEILL, DeLUCA, REESE, BAKER, BARBIN, BARRAR, CAUSER, DAVIS, EMRICK, J. EVANS, EVERETT, GEIST, GINGRICH, HALUSKA, HESS, HUTCHINSON, M. K. KELLER, LONGIETTI, MICOZZIE, MILLER, MOUL, MULLERY, MUNDY, PASHINSKI, PEIFER, PICKETT, REED, ROEBUCK, SAYLOR, SCAVELLO, SCHMOTZER, SONNEY, STERN, STURLA, SWANGER, VULAKOVICH, KORTZ AND HARHART, JUNE 5, 2012 |
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| REFERRED TO COMMITTEE ON EDUCATION, JUNE 5, 2012 |
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| AN ACT |
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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," in charter schools, further providing |
6 | for definitions, for powers of Board of Trustees, for funding |
7 | for charter schools, for annual reports and assessments, for |
8 | cyber charter school requirements and prohibitions, for |
9 | enrollment and notification and for applicability of other |
10 | provisions of this act and of other acts and regulations; and |
11 | providing for requirements, for duties of administrators, for |
12 | notification and for actual costs of education services. |
13 | The General Assembly of the Commonwealth of Pennsylvania |
14 | hereby enacts as follows: |
15 | Section 1. The definitions of "chief executive officer" and |
16 | "local board of school directors" in section 1703-A of the act |
17 | of March 10, 1949 (P.L.30, No.14), known as the Public School |
18 | Code of 1949, amended June 29, 2002 (P.L.524, No.88), are |
19 | amended and the section is amended by adding definitions to |
20 | read: |
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1 | Section 1703-A. Definitions.--As used in this article, |
2 | "Administrator" shall include the chief administrator of a |
3 | charter school or cyber charter school and all other employes of |
4 | a charter school or cyber charter school who by virtue of their |
5 | positions exercise management or operational oversight |
6 | responsibilities. |
7 | * * * |
8 | "Charter school foundation" shall mean a nonprofit |
9 | organization as defined under section 501(c)(3) of the Internal |
10 | Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) |
11 | that provides funding or resources to a charter school or cyber |
12 | charter school, either directly or through an affiliated entity. |
13 | "Charter school fund balance limit" shall mean the amount |
14 | determined under section 1733—A. |
15 | "Chief [executive officer] administrator" shall mean an |
16 | individual appointed by the board of trustees to oversee and |
17 | manage the operation of the charter school, but who shall not be |
18 | deemed a professional staff member under this article. |
19 | * * * |
20 | "Cyber charter school fund balance limit" shall mean the |
21 | amount determined under section 1743-A. |
22 | * * * |
23 | "Financial relationship" shall mean any formal or informal |
24 | arrangement pursuant to which a charter is obligated to make |
25 | payment or in fact does make payment to an individual, group of |
26 | individuals or any entity. |
27 | "Immediate family member" shall mean a spouse, parent, |
28 | brother, sister or child. |
29 | "Local [boards of school directors] school board" shall mean |
30 | the board of directors of a school district in which a proposed |
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1 | or an approved charter school is located. The term shall include |
2 | a board of control established under Article XVII—B, a special |
3 | board of control established under section 692 or a school |
4 | reform commission established under section 696. |
5 | Section 1.1. Section 1715-A of the act is amended by adding |
6 | a clause to read: |
7 | Section 1715-A. Charter School Requirements.--Charter |
8 | schools shall be required to comply with the following |
9 | provisions: |
10 | * * * |
11 | (13) (i) For the 2012-2013 school year and each school year |
12 | thereafter, a charter school may not accumulate an unassigned |
13 | fund balance greater than the charter school fund balance limit, |
14 | which shall be determined as follows: |
15 16 17 18 | Charter School Total Budgeted Expenditures | Maximum Unassigned Fund Balance as Percentage of Total Budgeted Expenditures | 19 | Less Than or Equal to $11,999,999 | 12% | 20 | Between $12,000,000 and $12,999,999 | 11.5% | 21 | Between $13,000,000 and $13,999,999 | 11% | 22 | Between $14,000,000 and $14,999,999 | 10.5% | 23 | Between $15,000,000 and $15,999,999 | 10% | 24 | Between $16,000,000 and $16,999,999 | 9.5% | 25 | Between $17,000,000 and $17,999,999 | 9% | 26 | Between $18,000,000 and $18,999,999 | 8.5% | 27 | Greater Than or Equal to $19,000,000 | 8% |
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28 | (ii) Any unassigned fund balance in place on June 30, 2012, |
29 | that exceeds the charter school fund balance limit shall be |
30 | refunded on a per student pro rata basis within ninety (90) days |
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1 | of the effective date of this subclause to all school districts |
2 | that made payments under section 1725-A in the 2010-2011 and |
3 | 2011-2012 school years. The funds may not be used to pay bonuses |
4 | to any administrator, board of trustees member, employe, staff |
5 | or contractor or be transferred to a charter school foundation, |
6 | closely related business entity or educational service provider. |
7 | (iii) For the 2012-2013 school year and each school year |
8 | thereafter, any unassigned fund balance in excess of the charter |
9 | school fund balance limit shall be refunded on a per student pro |
10 | rata basis to all school districts that made payments under |
11 | section 1725-A in the prior school year. |
12 | (iv) By August 15, 2012, and August 15 of each year |
13 | thereafter, each charter school shall provide the department |
14 | with information certifying compliance with this clause. The |
15 | information shall be provided in a form and manner prescribed by |
16 | the department and shall include information on the charter |
17 | school's estimated ending unassigned fund balance expressed as a |
18 | dollar amount and as a percentage of the charter school's total |
19 | budgeted expenditures for that school year. |
20 | (v) As used in this section, the term "unassigned fund |
21 | balance" shall mean that portion of the fund balance which |
22 | represents the part of the spendable fund balance that has not |
23 | been categorized as restricted, committed or assigned. |
24 | Section 2. Section 1716-A of the act, added June 19, 1997 |
25 | (P.L.225, No.22), is amended to read: |
26 | Section 1716-A. [Powers of] Board of Trustees.--(a) The |
27 | board of trustees of a charter school or cyber charter school |
28 | shall have the authority to decide matters related to the |
29 | operation of the school, including, but not limited to, |
30 | budgeting, curriculum and operating procedures, subject to the |
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1 | school's charter. [The board] |
2 | (a.1) The board of trustees shall have the authority to |
3 | employ, discharge and contract with necessary professional and |
4 | nonprofessional employes subject to the school's charter and the |
5 | provisions of this [article.] act. The board of trustees, with |
6 | written permission of the department, may contract with |
7 | educators who are not employes of the charter school or cyber |
8 | charter school to serve as teaching staff in specialized |
9 | subjects, except that the arrangements shall constitute no more |
10 | than five per centum of the teaching staff of the charter school |
11 | or cyber charter school. |
12 | (a.2) The board of trustees of a charter school or cyber |
13 | charter school shall have a minimum of five (5) voting members. |
14 | If a charter school or cyber charter school has fewer than five |
15 | (5) voting members serving on its board as of the effective date |
16 | of this subsection, the charter school or cyber charter school |
17 | shall have sixty (60) days to appoint additional members to the |
18 | board to meet the minimum requirements of this subsection. |
19 | (b) The following shall apply to all members of the board of |
20 | trustees of a charter school or cyber charter school: |
21 | (1) No member of a local school board [of school directors] |
22 | of a school entity shall serve on the board of trustees of a |
23 | charter school that is located in the member's district. |
24 | [(c) The board of trustees shall comply with the act of July |
25 | 3, 1986 (P.L.388, No.84), known as the "Sunshine Act."] |
26 | (2) No administrator or member of a local school board which |
27 | granted or renewed a charter shall serve on the board of |
28 | trustees of a charter school that is the subject of the granted |
29 | or renewed charter. |
30 | (3) No member of the board of trustees may be employed in |
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1 | any capacity or have any financial relationship with the local |
2 | school board from which the charter school received its charter. |
3 | No member of the board of trustees of a charter school may be |
4 | employed in any capacity or have any financial relationship with |
5 | the board of trustees. |
6 | (4) No member of the board of trustees or a member of the |
7 | immediate family of the member of the board of trustees may: |
8 | (i) Be employed by the charter school or cyber charter |
9 | school or have a financial relationship with the charter school |
10 | or cyber charter school. |
11 | (ii) Be employed by any entity that has a financial |
12 | relationship with the charter school or cyber charter school or |
13 | any related or associated foundation unless the charter school |
14 | or cyber charter school complies with the requirements of 65 |
15 | Pa.C.S. § 1103(f) (relating to restricted activities). |
16 | (5) No member of the board of trustees or a member of the |
17 | immediate family of the member of the board of trustees may be |
18 | employed by or have a financial relationship with an educational |
19 | service provider which is under contract with the charter school |
20 | or cyber charter school or any related or associated foundation. |
21 | (6) A member of the board of trustees must disqualify |
22 | himself and abstain from voting in a proceeding which |
23 | constitutes a conflict of interest or where the objectivity, |
24 | impartiality, integrity or independence of judgment of the |
25 | member may be reasonably questioned. |
26 | (7) A member of the board of trustees shall be automatically |
27 | disqualified from serving on the board upon conviction for an |
28 | offense graded as a felony, an infamous crime, any offense |
29 | pertaining to the member's official capacity as a board member |
30 | or any crime involving moral turpitude. |
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1 | (8) No member of the board of trustees, employe or |
2 | administrator of a charter school or cyber charter school may |
3 | convert to his own use or use by way of investment or contract |
4 | any portion of the charter school or cyber charter school funds |
5 | or school property or deposit any of the funds of the charter |
6 | school or cyber charter school in any other name. |
7 | (9) No business entity, including for-profit and nonprofit |
8 | entities with which a member of the board of trustees, an |
9 | administrator or a member of the immediate family of the member |
10 | of the board of trustees or administrator is associated, may |
11 | contract with the charter school or cyber charter school unless |
12 | the charter school complies with the requirements of 65 Pa.C.S. |
13 | § 1103(f). |
14 | (10) No member of the board of trustees or a member of the |
15 | immediate family of the member of the board of trustees may act |
16 | as an agent for any vendor or subvendor for goods or services |
17 | with the local school board or charter school or cyber charter |
18 | school. |
19 | (11) No member of the board of trustees may commingle or |
20 | allow the commingling of any portion of the charter school or |
21 | cyber charter school funds or property or deposit any of the |
22 | funds of the charter school or cyber charter school in accounts |
23 | unrelated to the charter school or cyber charter school. |
24 | (12) No member of the board of trustees of a charter school |
25 | or cyber charter school may be employed by a charter school or |
26 | cyber charter school foundation or any entity affiliated with a |
27 | charter school or cyber charter school foundation. No immediate |
28 | family member of a member of the board of trustees may serve on, |
29 | receive compensation from or be employed by a charter school or |
30 | cyber charter school foundation or any entity affiliated with a |
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1 | charter school or cyber charter school foundation. |
2 | (13) No member of the board of trustees of a charter school |
3 | or cyber charter school may be employed in any capacity or have |
4 | a financial relationship with the department. |
5 | (14) Any member of the board of trustees, elected officials, |
6 | administrators or their immediate families or staff determined |
7 | to have engaged in any conduct in contravention of this |
8 | subsection shall be immediately barred and prohibited from the |
9 | handling or receipt of funds, directly or indirectly, for a |
10 | period of five (5) consecutive years from the date of receipt, |
11 | expenditure, oversight or handling in any fashion, directly or |
12 | indirectly, of the funds of any school board, charter school, |
13 | cyber charter school, charter school or cyber charter school |
14 | foundation or appropriated by the Commonwealth, including awards |
15 | of contracts to third parties, hiring or retention of employes |
16 | or consultants and the purchase or acquisition of goods or |
17 | services. |
18 | (c.1) At least one member of the board of trustees of a |
19 | charter school or cyber charter school must be a parent of a |
20 | child attending that charter school or cyber charter school. |
21 | (d) The following shall apply: |
22 | (1) The secretary, upon request by department staff, may |
23 | remove a member of a board of trustees if the secretary |
24 | determines the member has refused or neglected to perform any |
25 | duty imposed under this article, has violated any requirement |
26 | established under this article or has committed misfeasance or |
27 | malfeasance while in office as a trustee. |
28 | (2) Before a trustee is removed under clause (1), the |
29 | trustee shall be provided with a written statement of the |
30 | reasons for removal and an opportunity to be heard in accordance |
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1 | with 2 Pa.C.S. Chs. 5 Subch. A (relating to practice and |
2 | procedure of Commonwealth agencies) and 7 Subch. A (relating to |
3 | judicial review of Commonwealth agency action). |
4 | (3) If, in the judgment of the secretary, the immediate |
5 | removal of a board member is reasonably necessary, the removal |
6 | process under this subsection may be expedited. |
7 | (4) Any person removed as a member of the board of trustees |
8 | of a charter school or cyber charter school under this |
9 | subsection shall not be eligible again to serve as a board |
10 | member or administrator for the period of five (5) years from |
11 | the date of removal. |
12 | Section 2.1. The act is amended by adding sections to read: |
13 | Section 1716.1-A. Duties of Administrators.--(a) The chief |
14 | administrator shall have the duty of the general supervision of |
15 | all business affairs of the charter school or cyber charter |
16 | school, subject to the direction of the board of trustees, and |
17 | the following duties subject to the direction of the board of |
18 | trustees: |
19 | (1) Upon action by the board as described under this |
20 | article, to approve any bill or account for payment of money and |
21 | to prepare and sign an order for the payment of money. |
22 | (2) To attest in writing the executing of all deeds, |
23 | contracts, reports and other instruments that are to be executed |
24 | by the board. |
25 | (3) To furnish upon request all reports as required under |
26 | this act. |
27 | (4) Notwithstanding any other provisions of this act and |
28 | other laws, to serve as custodian of all records, offices and |
29 | property of the charter school or cyber charter school. |
30 | (5) To receive all funds and make payments from funds on |
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1 | proper orders approved by the board of trustees. |
2 | (6) To deposit funds and at the end of each month to make a |
3 | report to the school controller of the amount of funds received |
4 | and the amount dispersed during the month. |
5 | (7) To perform other duties pertaining to the business of |
6 | the charter school or cyber charter school as required under |
7 | this act. |
8 | (b) The following restrictions and requirements shall apply: |
9 | (1) No administrator may receive compensation from another |
10 | charter school, cyber charter school or from a company that |
11 | provides management or other services to another charter school |
12 | or cyber charter school. |
13 | (2) No administrator shall be employed by or have a |
14 | financial relationship with the local school boards from which |
15 | the charter school received its charter. |
16 | (2.1) No administrator of a cyber charter school may be |
17 | employed or have a financial relationship with the department. |
18 | (3) No immediate family member of an administrator may be |
19 | employed by or have any financial relationship with the charter |
20 | school or cyber charter school unless the charter school or |
21 | cyber charter school complies with the requirements of 65 |
22 | Pa.C.S. § 1103(f) (relating to restricted activities). |
23 | (4) No administrator may be employed by or have a financial |
24 | relationship with an educational service provider without the |
25 | approval of the board of trustees. |
26 | (5) No immediate family member of an administrator shall be |
27 | employed by or have a financial relationship with an educational |
28 | service provider which is under contract with the charter school |
29 | or cyber charter school. |
30 | (6) An administrator shall be dismissed upon conviction for |
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1 | an offense graded as a felony, an infamous crime or any crime |
2 | involving moral turpitude. |
3 | (7) No business with which an administrator, or a member of |
4 | the immediate family of the administrator, is associated may |
5 | contract with the charter school or cyber charter school unless |
6 | the charter school or cyber charter school complies with the |
7 | requirements of 65 Pa.C.S. § 1103(f). |
8 | (8) No administrator may commingle or convert to his own use |
9 | or use by way of investment any portion of the school funds or |
10 | school property or deposit any of the funds of the school in |
11 | accounts unrelated to the charter school or cyber charter |
12 | school. |
13 | (9) No administrator may act as an agent for any vendor for |
14 | school supplies, program materials or related educational |
15 | services with the local school board. |
16 | (10) No administrator may receive compensation from or be |
17 | employed by a charter school or cyber charter school foundation |
18 | or any entity affiliated with a charter school or cyber charter |
19 | school foundation. No immediate family member of an |
20 | administrator may serve on or be employed by a charter school or |
21 | cyber charter school foundation or any entity affiliated with a |
22 | charter school or cyber charter school foundation. |
23 | Section 1723.1-A. Notification.--(a) The following shall |
24 | apply: |
25 | (1) Within ten (10) days of the enrollment of a student to a |
26 | charter school, the parent or guardian and the charter school |
27 | shall notify the student's school district of residence of the |
28 | enrollment through the use of the notification form under |
29 | subsection (b) and provide a copy of documentation allowable |
30 | under Article XIII verifying the student's residence. |
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1 | (2) If a school district which has received notice under |
2 | paragraph (1) determines that a student is not a resident of the |
3 | school district, the following shall apply: |
4 | (i) Within ten (10) days of receipt of the notice under |
5 | paragraph (1), the school district shall notify the charter |
6 | school and the department that the student is not a resident of |
7 | the school district. Notification of nonresidence shall include |
8 | the basis for the determination. |
9 | (ii) Within seven (7) days of notification under |
10 | subparagraph (i), the charter school shall review the |
11 | notification of nonresidence, respond to the school district and |
12 | provide a copy of the response to the department. If the charter |
13 | school agrees that a student is not a resident of the school |
14 | district, it shall determine the proper district of residence of |
15 | the student before requesting funds from another school |
16 | district. |
17 | (iii) Within seven (7) days of receipt of the response under |
18 | subparagraph (ii), the school district shall notify the charter |
19 | school that it agrees with the charter school's determination or |
20 | does not agree with the charter school's determination. |
21 | (iv) A school district that has notified the charter school |
22 | that it does not agree with the charter school's determination |
23 | under subparagraph (iii) shall appeal to the department for a |
24 | final determination. |
25 | (v) All decisions of the department regarding the school |
26 | district of residence of a student shall be subject to review by |
27 | the Commonwealth Court. |
28 | (vi) The department shall continue to make payments to a |
29 | charter school under section 1725-A during the time in which the |
30 | school district of residence of a student is in dispute. |
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1 | (vii) If a final determination is made that a student is not |
2 | a resident of an appealing school district, the charter school |
3 | shall return all funds provided on behalf of that student to the |
4 | school district within thirty (30) days. |
5 | (b) The department shall develop a notification form for use |
6 | under subsection (a). The notification shall include: |
7 | (1) The name, home address and mailing address of the |
8 | student. |
9 | (2) The grade in which the student is being enrolled. |
10 | (3) The date the student will be enrolled. |
11 | (4) The name and address of the charter school and the name |
12 | and telephone number of a contact person able to provide |
13 | information regarding the charter school. |
14 | (5) The signature of the parent or guardian and an |
15 | authorized representative of the charter school. |
16 | (6) The student's former school information, including the |
17 | name and address of the school district, the student's record of |
18 | attendance, the withdrawal date from the former school district, |
19 | if applicable, and the type of education services received, for |
20 | example, nonspecial education or special education. |
21 | (7) Verification of the student's residency, including the |
22 | parent or guardian's deed, lease, current utility bill, current |
23 | credit card bill, property tax bill, vehicle registration, |
24 | driver's license or Department of Transportation identification |
25 | card. |
26 | (b.1) A charter school shall submit to the student's school |
27 | district of residence verification of the student's residency |
28 | upon enrollment under subsection (a)(1) and every six (6) months |
29 | thereafter. A school district shall notify the department of all |
30 | resident students enrolled in charter schools for whom |
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1 | enrollment notification and verification of residency have not |
2 | been received. |
3 | (c) The charter school and the parent or guardian of a |
4 | student enrolled in a charter school shall provide written |
5 | notification to the student's school district of residence |
6 | within ten (10) days following the withdrawal of a student from |
7 | the charter school. |
8 | (d) The following shall apply: |
9 | (1) Within ten (10) days of a change in a student's |
10 | residency status, including a move which would affect the |
11 | student's district of residence determination, the parent or |
12 | guardian shall notify the former school district of residence of |
13 | the change in residency through the use of a form developed by |
14 | the department. The notification shall include: |
15 | (i) The name, home address and mailing address of the |
16 | student. |
17 | (ii) The date the change of residency became effective. |
18 | (iii) The name and address of the new school district of |
19 | residence and the name and telephone number of a contact person |
20 | able to provide information regarding the school. |
21 | (iv) The signature of the parent or legal guardian of the |
22 | student. |
23 | (2) A parent or guardian who knowingly refuses or neglects |
24 | to comply with the requirements of this subsection shall be |
25 | subject to penalty under section 1302(c). |
26 | (e) Failure of a charter school to submit notification under |
27 | this section shall result in a school district withholding |
28 | payment to the charter school until fifteen (15) days after the |
29 | district of residence is in receipt of the required |
30 | notification, if the district of residence determines the |
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1 | student is a resident of the district. |
2 | Section 3. Section 1725-A(a) of the act, amended June 29, |
3 | 2002 (P.L.524, No.88), is amended to read: |
4 | Section 1725-A. Funding for Charter Schools.--(a) Funding |
5 | for a charter school shall be provided in the following manner: |
6 | (1) There shall be no tuition charge for a resident or |
7 | nonresident student attending a charter school. |
8 | (2) For non-special education students, the charter school |
9 | shall receive for each student enrolled no less than the |
10 | [budgeted] actual total expenditure per average daily membership |
11 | of the prior school year, as defined in section 2501(20), minus |
12 | the [budgeted] actual expenditures at the end of the most recent |
13 | fiscal year of the district of residence for nonpublic school |
14 | programs and services; adult education programs; |
15 | community/junior college programs; student transportation |
16 | services; for special education programs; facilities |
17 | acquisition, construction and improvement services; athletic |
18 | funds and school sponsored extra-curricular activities set up in |
19 | accordance with section 511; the full employer's share of |
20 | retirement contributions paid to the Public School Employees' |
21 | Retirement System; tuition to Pennsylvania charter schools for |
22 | educational services provided to students attending the charter |
23 | school; and other financing uses, including debt service and |
24 | fund transfers as provided in the Manual of Accounting and |
25 | Related Financial Procedures for Pennsylvania School Systems |
26 | established by the department. This amount shall be paid by the |
27 | district of residence of each student. |
28 | (3) (i) For special education students, the charter school |
29 | shall receive for each student enrolled the same funding as for |
30 | each non-special education student as provided in clause (2), |
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1 | plus an additional amount determined by dividing the district of |
2 | residence's total special education expenditure by the product |
3 | of multiplying the combined percentage of section 2509.5(k) |
4 | times the district of residence's total average daily membership |
5 | for the prior school year. This amount shall be paid by the |
6 | district of residence of each student, but not to exceed the |
7 | actual cost of the educational services provided for special |
8 | education students. |
9 | (ii) If a nonspecial education student is identified by the |
10 | charter school in which the student is enrolled as a student |
11 | with a disability in need of special education services, the |
12 | district of residence shall have the power to administer and |
13 | deliver the educational services required to address the |
14 | specific needs of the exceptional student in lieu of payments by |
15 | the district of residence for such student. |
16 | (iii) A resident school district may not pay out to charter |
17 | schools or cyber charter schools an amount greater than it |
18 | receives for special education in a school year. |
19 | (4) A charter school may request the intermediate unit in |
20 | which the charter school is located to provide services to |
21 | assist the charter school to address the specific needs of |
22 | exceptional students. The intermediate unit shall assist the |
23 | charter school and bill the charter school for the services. The |
24 | intermediate unit may not charge the charter school more for any |
25 | service than it charges the constituent districts of the |
26 | intermediate unit. If the service is provided by the |
27 | intermediate unit or school district, the charter school shall |
28 | provide a copy of the contract and invoice for the services to |
29 | the student's school district of residence. |
30 | (5) [Payments] (i) Except as provided under subclause (ii), |
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1 | payments shall be made to the charter school in twelve (12) |
2 | equal monthly payments, by the fifth day of each month, within |
3 | the operating school year. A student enrolled in a charter |
4 | school shall be included in the average daily membership of the |
5 | student's district of residence for the purpose of providing |
6 | basic education funding payments and special education funding |
7 | pursuant to Article XXV. If a school district fails to make a |
8 | payment to a charter school as prescribed in this clause, the |
9 | secretary shall deduct the estimated amount, as documented by |
10 | the charter school, from any and all State payments made to the |
11 | district after receipt of documentation from the charter school. |
12 | (ii) Payments may not be made for any resident student |
13 | attending a charter school if the district of residence or |
14 | intermediate unit offers a cyber school program that is |
15 | available to resident students at the same grade level and same |
16 | academic subject or the district of residence administers and |
17 | delivers the educational services required to address the |
18 | specific needs of non-special education and exceptional students |
19 | enrolled at the charter school. |
20 | (6) Within thirty (30) days after the secretary makes the |
21 | deduction described in clause (5), a school district may notify |
22 | the secretary that the deduction made from State payments to the |
23 | district under this subsection is inaccurate. The secretary |
24 | shall provide the school district with an opportunity to be |
25 | heard concerning whether the charter school documented that its |
26 | students were enrolled in the charter school, the period of time |
27 | during which each student was enrolled, the school district of |
28 | residence of each student and whether the amounts deducted from |
29 | the school district were accurate. |
30 | (7) Except for a student who is enrolled in a charter school |
|
1 | on the effective date of this clause, payment to a charter |
2 | school may be no more than one-half of the amount in clauses (2) |
3 | and (3), where applicable, for each resident student who attends |
4 | a half-day kindergarten program offered by the charter school. |
5 | (8) The amounts calculated in clauses (2) and (3) shall be |
6 | calculated using the actual expenditure data at the end of the |
7 | most recent fiscal year and submitted on a form prescribed by |
8 | the department not later than October 31 of each year. The |
9 | amount calculated shall remain in effect until October 31 of the |
10 | next year. |
11 | * * * |
12 | Section 3.1. Section 1728-A(b) of the act, added June 19, |
13 | 1997 (P.L.225, No.22), is amended to read: |
14 | Section 1728-A. Annual Reports and Assessments.--* * * |
15 | (b) In order to facilitate the local board's review and |
16 | secretary's report, each charter school shall submit an annual |
17 | report no later than August 1 of each year to the local board of |
18 | school directors and the secretary in the form prescribed by the |
19 | secretary. The annual report shall include all of the following: |
20 | (1) The actual cost of nonspecial education services |
21 | provided to each nonspecial education student and the amount of |
22 | payment received by each district of residence. |
23 | (2) The actual cost of nonspecial and special education |
24 | services provided to each special education student and the |
25 | amount of payment received by each district of residence. |
26 | * * * |
27 | Section 4. The act is amended by adding a section to read: |
28 | Section 1733-A. Actual Costs of Education Services.--(a) |
29 | Within one hundred eighty (180) days of the effective date of |
30 | this section, the department shall promulgate audit standards |
|
1 | under this article which shall be used in determining the year- |
2 | end actual costs of educational services per non-special |
3 | education student and special education student provided by a |
4 | charter school or a cyber charter school to any child who is a |
5 | resident of a school district, which are subject to payment in |
6 | accordance with section 1725-A. The department shall follow the |
7 | procedures provided in the act of July 31, 1968 (P.L.769, |
8 | No.240), referred to as the Commonwealth Documents Law, and the |
9 | act of June 25, 1982 (P.L.633, No.181), known as the Regulatory |
10 | Review Act, for promulgation and review of final-omitted |
11 | regulations. Subsequent audit standards promulgated under this |
12 | section or amendments to the initial audit standards may not be |
13 | in final-omitted form. The audit standards shall take effect at |
14 | the beginning of the first school year after which such audit |
15 | standards have been promulgated. |
16 | (b) In order that the year-end actual costs of educational |
17 | services per non-special education student and special education |
18 | student are thoroughly and properly determined, the audit |
19 | standards promulgated by the department shall: |
20 | (1) Specify reasonable costs associated with the operation |
21 | of the educational program offered by a charter school and a |
22 | cyber charter school. The following may not be considered |
23 | reasonable costs associated with the operation of the |
24 | educational program offered by a charter school and a cyber |
25 | charter school: |
26 | (i) Any paid media advertisement, including television, |
27 | radio, movie theater, billboard, bus poster, newspaper, |
28 | magazine, the Internet or any other commercial method that may |
29 | promote enrollment of a charter school and a cyber charter |
30 | school. |
|
1 | (ii) Any lobbying, legislative advocacy consulting or any |
2 | effort to influence Federal or State legislation or policy |
3 | affecting either that charter school or cyber charter school |
4 | specifically or charter schools in general. |
5 | (iii) Any bonuses or additional compensation beyond the |
6 | annual or termed contractual compensation for all faculty, |
7 | administration and staff, including salary, benefits and any |
8 | additional compensation not specifically enumerated in the |
9 | contract. |
10 | (2) Allow a closely related business entity to charge up to |
11 | one hundred and seven per centum (107%) of the actual |
12 | educational costs. |
13 | (3) Require information as necessary for a full-scope review |
14 | of a finalized management agreement entered into between a |
15 | charter school or cyber charter school and a closely related |
16 | business entity, including: |
17 | (i) All payments received from school districts of |
18 | residence. |
19 | (ii) Expenditures of the closely related business entity |
20 | related to the delivery of educational and administrative |
21 | services pursuant to the management agreement. |
22 | (4) List and show all receipts and expenditures for an |
23 | educational service provider that provides any service to a |
24 | charter school or cyber charter school. |
25 | (5) Provide reasonable penalties for failure to comply. |
26 | (c) The following shall apply: |
27 | (1) The department shall effectuate an annual year-end final |
28 | reconciliation process of tuition payments against actual costs |
29 | of educational services per non-special education student and |
30 | special education student provided and necessary procedures for |
|
1 | the transfer of funds from the charter school or cyber charter |
2 | school to the school district of residence. The final |
3 | reconciliation process shall include one of the following: |
4 | (i) Allowing a school district of residence to withhold its |
5 | last monthly payment from a charter school or cyber charter |
6 | school to account for any overpayments as identified by the |
7 | year-end audit. If the school district of residence has sent |
8 | overpayments, the district may adjust its last monthly payment |
9 | accordingly. |
10 | (ii) Requiring a charter school or cyber charter school at |
11 | the end of each school year to return any overpayments to a |
12 | school district of residence owed a refund. A charter school or |
13 | cyber charter school may not return any overpayments on a pro- |
14 | rata basis. |
15 | (2) Procedures for the transfer of funds may not permit the |
16 | department to deduct from a school district of residence's basic |
17 | education subsidy any amount in excess of the selected |
18 | expenditure per average daily membership amount calculated in |
19 | accordance with section 1725-A. |
20 | (d) Charter schools, cyber charter schools, educational |
21 | service providers and closely related business entities shall |
22 | provide to the department, unless already retained by the |
23 | department, any information necessary to carry out the |
24 | provisions of this section. |
25 | (e) Except as provided under subsection (c), nothing |
26 | contained under this section shall permit a school district of |
27 | residence to provide funding for charter schools or cyber |
28 | charter schools in a manner other than that which is specified |
29 | in section 1725-A. |
30 | (f) For the purposes of this section: |
|
1 | "Closely related business entity" shall mean any organization |
2 | with a management or operational relationship with a charter |
3 | school involving either shared or overlapping aspects of |
4 | corporate identity such as ownership, board of directors or |
5 | trustees membership, capital or profits. |
6 | "Educational and administrative services" shall mean any |
7 | direct expenditures for any instruction and the administration |
8 | of the instructional program. The term shall not include any |
9 | expenditures not pertaining directly to the instruction and the |
10 | administration of the instructional program. |
11 | "Educational service provider" shall mean a for-profit |
12 | education management organization, nonprofit charter management |
13 | organization, school design provider, business manager or any |
14 | other partner entity with which a charter school or cyber |
15 | charter school intends to contract or presently contracts to |
16 | provide educational services, operational services or management |
17 | services to the charter school. The term shall not include a |
18 | charter school or cyber charter school foundation. |
19 | "Management agreement" shall mean any contract establishing a |
20 | management or operational relationship between a charter school |
21 | or cyber charter school and closely related business entity for |
22 | the provision of professional or nonprofessional services to the |
23 | charter school or cyber charter school. |
24 | Section 5. Section 1743-A(a) and (f) of the act, added June |
25 | 29, 2002 (P.L.524, No.88), are amended to read: |
26 | Section 1743-A. Cyber charter school requirements and |
27 | prohibitions. |
28 | (a) Special financial requirements prohibited.--A cyber |
29 | charter school shall not: |
30 | (1) [provide] Provide discounts to a school district or |
|
1 | waive payments under section 1725-A for any student[;]. |
2 | (2) [except] Except as provided for in subsection (e), |
3 | provide payments to parents or guardians for the purchase of |
4 | instructional materials[; or]. |
5 | (3) [except] Except as compensation for the provision of |
6 | specific services, enter into agreements to provide funds to |
7 | a school entity. |
8 | (4) (i) For the 2012-2013 school year and each school |
9 | year thereafter, accumulate an unassigned fund balance |
10 | greater than the cyber charter fund balance limit, which |
11 | shall be determined as follows: |
12 13 14 | Cyber Charter School Total Budgeted Expenditures | Maximum Unassigned Fund Balance as Percentage of Total Budgeted Expenditures | 15 | Less Than or Equal to $11,999,999 | 12% | 16 | Between $12,000,000 and $12,999,999 | 11.5% | 17 | Between $13,000,000 and $13,999,999 | 11% | 18 | Between $14,000,000 and $14,999,999 | 10.5% | 19 | Between $15,000,000 and $15,999,999 | 10% | 20 | Between $16,000,000 and $16,999,999 | 9.5% | 21 | Between $17,000,000 and $17,999,999 | 9% | 22 | Between $18,000,000 and $18,999,999 | 8.5% | 23 | Greater Than or Equal to $19,000,000 | 8% |
|
24 | (ii) Any unassigned fund balance in place on June |
25 | 30, 2012, that exceeds the cyber charter school fund |
26 | balance limit shall be refunded on a per student pro rata |
27 | basis within 90 days of the effective date of this |
28 | subparagraph to all school districts that made payments |
29 | under section 1725-A in the 2010-2011 and 2011-2012 |
30 | school years. The funds may not be used to pay bonuses to |
|
1 | any administrator, board of trustees member, employee, |
2 | staff or contractor or be transferred to a charter school |
3 | foundation, closely related business entity or |
4 | educational service provider. |
5 | (iii) For the 2012-2013 school year and each school |
6 | year thereafter, any unassigned fund balance in excess of |
7 | the cyber charter school fund balance limit shall be |
8 | refunded on a per student pro rata basis to all school |
9 | districts that made payments under section 1725-A in the |
10 | prior school year. |
11 | (iv) By August 15, 2012, and August 15 of each year |
12 | thereafter, each cyber charter school shall provide the |
13 | department with information certifying compliance with |
14 | this paragraph. The information shall be provided in a |
15 | form and manner prescribed by the department and shall |
16 | include information on the cyber charter school's |
17 | estimated ending unassigned fund balance expressed as a |
18 | dollar amount and as a percentage of the cyber charter |
19 | school's total budgeted expenditures for that school |
20 | year. |
21 | (v) As used in this section, the term "unassigned |
22 | fund balance" shall mean that portion of the fund balance |
23 | which represents the part of the spendable fund balance |
24 | that has not been categorized as restricted, committed or |
25 | assigned. |
26 | * * * |
27 | (f) Annual report.--A cyber charter school shall submit an |
28 | annual report no later than August 1 of each year to the |
29 | department in the form prescribed by the department. The annual |
30 | report shall include all of the following: |
|
1 | (1) The actual cost of non-special education services |
2 | provided to each non-special education student and the amount |
3 | of payment received by each district of residence. |
4 | (2) The actual cost of non-special and special education |
5 | services provided to each special education student and the |
6 | amount of payment received by each district of residence. |
7 | * * * |
8 | Section 6. Section 1748-A heading, (a)(1) and (2)(i) and (vi) |
9 | and (c) of the act, added June 29, 2002 (P.L.524, No.88), are |
10 | amended, subsection (b) is amended by adding paragraphs and the |
11 | section is amended by adding subsections to read: |
12 | Section 1748-A. Enrollment and notification and attendance. |
13 | (a) Notice to school district.-- |
14 | (1) Within [15] ten days of the enrollment of a student |
15 | to a cyber charter school, the parent or guardian and the |
16 | cyber charter school shall notify the student's school |
17 | district of residence of the enrollment through the use of |
18 | the notification form under subsection (b) and provide a copy |
19 | of documentation allowable under Article XIII verifying the |
20 | student's residence. |
21 | (2) If a school district which has received notice under |
22 | paragraph (1) determines that a student is not a resident of |
23 | the school district, the following apply: |
24 | (i) Within [seven] ten days of receipt of the notice |
25 | under paragraph (1), the school district shall notify the |
26 | cyber charter school and the department that the student |
27 | is not a resident of the school district. Notification of |
28 | nonresidence shall include the basis for the |
29 | determination. |
30 | * * * |
|
1 | (vi) [A school district] The department shall |
2 | continue to make payments to a cyber charter school under |
3 | section 1725-A during the time in which the school |
4 | district of residence of a student is in dispute. |
5 | * * * |
6 | (b) Notification form.--The department shall develop a |
7 | notification form for use under subsection (a). The notification |
8 | shall include: |
9 | * * * |
10 | (6) The student's former school information, including |
11 | the name and address of the school district, the student's |
12 | record of attendance, the withdrawal date from the former |
13 | school district, if applicable and the type of education |
14 | services received, for example, non-special education or |
15 | special education. |
16 | (7) Verification of the student's residency, including |
17 | the parent or guardian's deed, lease, current utility bill, |
18 | current credit care bill, property tax bill, vehicle |
19 | registration, driver's license or Department of |
20 | Transportation identification card. |
21 | (b.1) Residency.--A cyber charter school shall submit to the |
22 | student's school district of residence verification of the |
23 | student's residency upon enrollment under subsection (a)(1) and |
24 | every six months thereafter. A school district shall notify the |
25 | department of all resident students enrolled in cyber charter |
26 | schools for whom enrollment notification and verification of |
27 | residency have not been received. |
28 | (c) Withdrawal.--The cyber charter school and the parent or |
29 | guardian of a student enrolled in a cyber charter school shall |
30 | provide written notification to the student's school district of |
|
1 | residence within [15] ten days following the withdrawal of a |
2 | student from the cyber charter school. |
3 | (d) Change in residency status.-- |
4 | (1) Within ten days of a change in a student's residency |
5 | status, including a move which would affect the student's |
6 | district of residence determination, the parent or guardian |
7 | shall notify the former school district of residence of the |
8 | change in residency through the use of a form developed by |
9 | the department. The notification shall include: |
10 | (i) The name, home address and mailing address of |
11 | the student. |
12 | (ii) The date the change of residency became |
13 | effective. |
14 | (iii) The name and address of the new school |
15 | district of residence and the name and telephone number |
16 | of a contact person able to provide information regarding |
17 | the school. |
18 | (iv) The signature of the parent or legal guardian |
19 | of the student. |
20 | (2) A parent or guardian who knowingly refuses or |
21 | neglects to comply with the requirements of this subsection |
22 | shall be subject to penalty under section 1302(c). |
23 | (e) Attendance.-- |
24 | (1) In addition to requirements under Article XIII, upon |
25 | a student's unlawful absence from the cyber charter school at |
26 | any point within the school year, a cyber charter school |
27 | shall immediately inform a student's parents or guardians and |
28 | his or her student's school district of residence of each |
29 | incident of the student's unlawful absence from the cyber |
30 | charter school. Notice shall be sent as follows: |
|
1 | (i) Immediately after a student's first and second |
2 | unlawful absence, the cyber charter school shall send a |
3 | printed notice to the parent or guardian indicating the |
4 | student's unlawful absence from the cyber charter school. |
5 | The legal penalties established by law for violation of |
6 | compulsory attendance requirements shall be attached to |
7 | the notice. The notice shall also include the name and |
8 | telephone number of a cyber charter school contact person |
9 | who shall be able to offer assistance in resolving the |
10 | student's truant behavior. A printed copy, exactly as |
11 | sent to the parent or guardian, shall be mailed to the |
12 | student's district of residence after each unlawful |
13 | absence. |
14 | (ii) Immediately after a student's third unlawful |
15 | absence from the cyber charter school, the cyber charter |
16 | school shall send by certified mail an official notice of |
17 | the student's third illegal absence. The legal penalties |
18 | for violation of compulsory attendance requirements as |
19 | they pertain to both the student and the parent or |
20 | guardian, including information that three days after |
21 | giving the notice, the student or parent or guardian who |
22 | again violates the compulsory requirements shall be |
23 | liable without further notice, shall be attached to the |
24 | notice. A printed copy of the official notice of the |
25 | student's third illegal absence, exactly as sent to the |
26 | parent or guardian, shall be sent to the student's |
27 | district of residence by certified mail. |
28 | (2) Immediately after a student's third unlawful absence |
29 | from the cyber charter school, the cyber charter school shall |
30 | immediately institute truancy proceedings under section 1333 |
|
1 | in the jurisdiction wherein the truant student resides and |
2 | notify the parent or guardian by certified mail that a |
3 | citation is being sent to the magisterial district judge. A |
4 | copy of the notice and the citation, exactly as sent to the |
5 | parent or guardian and magisterial district judge, shall be |
6 | sent to the student's district of residence by certified |
7 | mail. |
8 | (3) The cyber charter school shall refer all future |
9 | incidents of truancy directly to the magisterial district |
10 | judge. Instead of or in addition to any other sentence |
11 | imposed under section 1333, the magisterial district judge |
12 | may order the parent or guardian to withdraw the student from |
13 | the cyber charter school and enroll the student in the |
14 | district of residence for a period of at least six months. |
15 | (4) The following shall apply: |
16 | (i) Upon a school district receiving a notification |
17 | of an enrollment form for any student who is in violation |
18 | of compulsory attendance requirements and is truant from |
19 | the school district, the school district of residence |
20 | shall inform the cyber charter school in writing about |
21 | the student's truant behavior. |
22 | (ii) If a student who is truant from the student's |
23 | school district of residence enrolls in a cyber charter |
24 | school, the cyber charter school shall provide to the |
25 | student's district of residence documentation during the |
26 | student's first three months of enrollment that the |
27 | student is fulfilling compulsory attendance requirements |
28 | and completing assignments as required by the cyber |
29 | charter school. |
30 | (f) Penalties.--Failure of a charter or cyber charter school |
|
1 | to submit notification under this section shall result in a |
2 | school district withholding payment to the charter school until |
3 | 15 days after the district of residence is in receipt of the |
4 | required notification, if the district of residence determines |
5 | the student is a resident of the district. |
6 | Section 7. Section 1749-A(a)(1) of the act, added June 29, |
7 | 2002 (P.L.524, No.88), is amended to read: |
8 | Section 1749-A. Applicability of other provisions of this act |
9 | and of other acts and regulations. |
10 | (a) General requirements.--Cyber charter schools shall be |
11 | subject to the following: |
12 | (1) Sections 108, 110, 111, 321, 325, 326, 327, 431, |
13 | 436, 443, 510, 518, 527, 609, 687(a), (b), (c), (d), (h) and |
14 | (i), 708, 752, 753, [755], 771, 776, 777, 807.1 808, 809, |
15 | 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301, 1302, 1310, |
16 | 1317.2, 1318, 1330, 1332, 1333, 1354, 1355, 1303-A, 1518, |
17 | 1521, 1523, 1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716- |
18 | A, 1719-A, 1721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A, |
19 | 1727-A, 1729-A, 1730-A, 1731-A(a)(1) and (b), 1733-A and |
20 | 2014-A and Articles XII-A, XIII-A [and], XIV and XXIV. |
21 | * * * |
22 | Section 8. This act shall take effect in 60 days. |
|