<-1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," in terms and courses of study,
6further providing for agreements with institutions of higher
7education; in opportunities for educational excellence,
8further providing for definitions and for concurrent
9enrollment agreements; and extensively revising and adding
10charter school provisions.

<-11Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
12act relating to the public school system, including certain
13provisions applicable as well to private and parochial
14schools; amending, revising, consolidating and changing the
15laws relating thereto," in charter schools, further providing
16for funding for charter schools.

17The General Assembly of the Commonwealth of Pennsylvania
18hereby enacts as follows:

<-19Section 1. Section 1525 of the act of March 10, 1949 
20(P.L.30, No.14), known as the Public School Code of 1949, added 
21July 4, 2004 (P.L.536, No.70), is amended to read:

1Section 1525. Agreements with Institutions of Higher
2Education.--Notwithstanding any other provision of law to the
3contrary, a school district, charter school, regional charter
4school, cyber charter school or area vocational-technical school
5may enter into an agreement with one or more institutions of
6higher education approved to operate in this Commonwealth in
7order to allow [resident] students to attend such institutions
8of higher education while the [resident] students are enrolled
9in the school district, charter school, regional charter school,
10cyber charter school or area vocational-technical school. The
11agreement may be structured so that high school students may
12receive credits toward completion of courses at the school
13district, charter school, regional charter school, cyber charter
14school or area vocational-technical school and at institutions
15of higher education approved to operate in this Commonwealth.

16Section 2. The definitions of "concurrent student" and
17"school entity" in section 1602-B of the act, added July 13,
182005 (P.L.226, No.46), are amended to read:

19Section 1602-B. Definitions.

20The following words and phrases when used in this article
21shall have the meanings given to them in this section unless the
22context clearly indicates otherwise:

23* * *

24"Concurrent student." A student who is enrolled in a school
25district, a charter school, a regional charter school, a cyber
26charter school, an area vocational-technical school, a nonpublic
27school, a private school or a home education program under
28section 1327.1 and who takes a concurrent course through a
29concurrent enrollment program.

30* * *

1"School entity." A school district, a charter school, a
2regional charter school, a cyber charter school or an area
3vocational-technical school.

4* * *

5Section 3. Section 1613-B of the act is amended by adding a
6subsection to read:

7Section 1613-B. Concurrent enrollment agreements.

8* * *

9(c) Charter schools, regional charter schools and cyber
10charter schools.--Charter schools, regional charter schools and
11cyber charter schools shall have the power and authority to
12enter into a concurrent enrollment agreement with an institution
13of higher education, and appropriate credit shall be awarded to
14students concurrently enrolled under the agreement.

15Section 4. Section 1703-A of the act, amended June 29, 2002
16(P.L.524, No.88), is amended to read:

17Section 1703-A. Definitions.--As used in this article,

18"Administrator" shall include an employe of a charter school
19entity, including the chief administrator of a charter school
20entity and any other employe, who by virtue of the employe's
21position is responsible for taking official action of a
22nonministerial nature with regard to contracting or procurement,
23administering or monitoring grants or subsidies, managing or
24regulating staff, student and school activities or any activity
25where the official action has an economic impact of greater than
26a de minimis nature on the interests of any person.

27"Appeal board" shall mean the State Charter School Appeal
28Board established by this article.

29"Assessment" shall mean the Pennsylvania System of School
30Assessment test, the Keystone Exam or another test established

1by the State board to meet the requirements of section 2603-
2B(d)(10)(i) and required under the No Child Left Behind Act of
32001 (Public Law 107-110, 115 Stat. 1425) or its successor
4Federal statute.

5"At-risk student" shall mean a student at risk of educational
6failure because of limited English proficiency, poverty,
7community factors, truancy, academic difficulties or economic
8disadvantage.

9"Charter school" shall mean an independent public school
10established and operated under a charter from the local board of
11school directors and in which students are enrolled or attend. A
12charter school must be organized as a public, nonprofit
13corporation. Charters may not be granted to any for-profit
14entity.

15"Charter school entity" shall mean a charter school, regional
16charter school or cyber charter school.

17"Charter school foundation" shall mean a nonprofit
18organization under section 501(c)(3) of the Internal Revenue
19Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), that
20provides funding, resources or otherwise serves to support a
21charter school entity, either directly or through an affiliated
22entity.

23"Chief administrator" shall mean an individual appointed by a
24board of trustees to oversee and manage the operation of a
25charter school entity. The term shall not include a professional
26staff member under this article.

27["Chief executive officer" shall mean an individual appointed
28by the board of trustees to oversee and manage the operation of
29the charter school, but who shall not be deemed a professional
30staff member under this article.]

1"Cyber charter school" shall mean an independent public
2school established and operated under a charter from the
3Department of Education and in which the school uses technology
4in order to provide a significant portion of its curriculum and
5to deliver a significant portion of instruction to its students
6through the Internet or other electronic means. A cyber charter
7school must be organized as a public, nonprofit corporation. A
8charter may not be granted to a for-profit entity.

9"Department" shall mean the Department of Education of the
10Commonwealth.

11"Educational management service provider" shall mean a
12nonprofit charter management organization, for-profit education
13management organization, school design provider, business
14manager or any other partner entity with which a board of
15trustees of a charter school entity contracts to provide
16educational design, business services, comprehensive management
17or personnel functions or to implement the charter. The term
18shall not include a charter school foundation.

19"Immediate family member" shall mean a parent, spouse, child,
20brother or sister.

21"Local board of school directors" shall mean the board of
22directors, School Reform Commission or other governing authority
23of a school district in which a proposed or an approved charter
24school is located.

25"Nonrelated" shall mean an individual who is not an immediate
26family member.

27"Regional charter school" shall mean an independent public
28school established and operated under a charter from more than
29one local board of school directors and in which students are
30enrolled or attend. A regional charter school must be organized

1as a public, nonprofit corporation. Charters may not be granted
2to any for-profit entity.

3"School district of residence" shall mean the school district
4in this Commonwealth in which [the parents or guardians of a
5child reside] a child resides as determined under section 1302
6and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of
7resident children to attend public schools).

8"School entity" shall mean a school district, intermediate
9unit, joint school or area vocational-technical school.

10"Secretary" shall mean the Secretary of Education of the
11Commonwealth.

12"State board" shall mean the State Board of Education of the
13Commonwealth.

14Section 4.1. The act is amended by adding a section to read:

15Section 1704-A. Charter School Funding Advisory
16Commission.--(1) The Governor shall immediately convene a
17Statewide advisory commission, to be known as the Charter School
18Funding Advisory Commission, to examine the financing of charter
19schools, regional charter schools and cyber charter schools in
20the public education system. The commission shall examine how
21charter school, regional charter school and cyber charter school
22finances affect opportunities for teachers, parents, pupils and
23community members to establish and maintain schools that operate
24independently from the existing school district structure as a
25method to accomplish the requirements of section 1702-A. The
26Office of the Budget and the department shall provide
27administrative support, meeting space and any other assistance
28required by the commission to carry out its duties under this
29section.

30(2) The commission shall consist of the following members:

1(i) Four members of the Senate appointed by the President
2pro tempore of the Senate, in consultation with the Majority
3Leader of the Senate and the Minority Leader of the Senate, with
4two appointees from the majority party and two appointees from
5the minority party.

6(ii) Four members of the House of Representatives appointed
7by the Speaker of the House of Representatives, in consultation
8with the Majority Leader of the House of Representatives and the
9Minority Leader of the House of Representatives, with two
10appointees from the majority party and two appointees from the
11minority party.

12(iii) The secretary or a designee.

13(iv) To represent the interests of charter school entities,
14the following members, who shall be appointed by the Governor:

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

16(B) One member who shall represent regional charter schools.

17(C) One member who shall represent cyber charter schools.

18(D) One member who shall be a teacher in a charter school
19entity.

20(E) One member who shall be a parent of a child attending a
21charter school entity.

22(v) To represent the interests of school districts, the
23following members, who shall be appointed by the Governor:

24(A) One member who shall be a teacher in a public school
25that is not a charter school entity.

26(B) One member who shall represent school administrators.

27(C) Two members who shall represent school board members.

28(D) One member who shall be a business manager of a school
29district.

30(vi) One member who shall represent an institution of higher

1education and who shall be appointed by the Governor.

2(3) Members of the commission shall be appointed within
3twenty (20) days of the effective date of this section. Any
4vacancy on the commission shall be filled by the original
5appointing authority. The commission shall select a chairman and
6vice chairman from among its membership at an organizational
7meeting. The organizational meeting shall take place not later
8than forty-five (45) days following the effective date of this
9section.

10(4) The commission shall hold meetings at the call of the
11chairman. The commission may also hold public hearings on the
12matters to be considered by the commission at locations
13throughout this Commonwealth. All meetings and public hearings
14of the commission shall be deemed public meetings for the
15purpose of 65 Pa.C.S. Ch. 7 (relating to open meetings). Ten
16(10) members of the commission shall constitute a quorum at any
17meeting. Each member of the commission may designate another
18person to represent that member at meetings of the commission.

19(5) Commission members shall receive no compensation for
20their services but shall be reimbursed by the department for all
21necessary travel and other reasonable expenses incurred in
22connection with the performance of their duties as members.
23Whenever possible, the commission shall utilize the services and
24expertise of existing personnel and staff of State government.
25The department may utilize undistributed funds not expended,
26encumbered or committed from appropriations for grants and
27subsidies made to the department, not to exceed three hundred
28thousand dollars ($300,000), to carry out this section.

29(6) The commission shall have the following powers and
30duties:

1(i) Meet with current charter school entity operators,
2school district personnel and representatives of institutions of
3higher education within this Commonwealth.

4(ii) Review charter school entity financing laws in
5operation throughout the United States.

6(iii) Explore the actual cost of educating a child in a
7cyber charter school.

8(iv) Evaluate and make recommendations on the following:

9(A) Consideration of establishing a higher education
10authorizer of charter school entities.

11(a.1) Consideration of establishing an independent State
12level board to authorize charter school entities and support
13charter school quality and accountability through performance
14monitoring and technical assistance.

15(B) Appropriate assessment of fees on charter school
16entities for potentially funding a higher education authorizer
17of charter school entities, including review of independent
18authorizer fees and structures throughout the United States.

19(C) The process by which charter school entities are funded
20under section 1725-A, including the continuation of school
21district deductions for food services and for retirement
22contributions paid to the Public School Employees' Retirement
23System and addressing other potential funding inequities.

24(v) Issue a report pursuant to paragraph (7).

25(7) The commission shall, no later than March 31, 2014,
26issue a report of its findings and recommendations to the
27Governor, the President pro tempore of the Senate, the Majority
28Leader of the Senate, the Minority Leader of the Senate, the
29chairman and minority chairman of the Appropriations Committee
30of the Senate, the chairman and minority chairman of the

1Education Committee of the Senate, the Speaker of the House of
2Representatives, the Majority Leader of the House of
3Representatives, the Minority Leader of the House of
4Representatives, the chairman and minority chairman of the
5Appropriations Committee of the House of Representatives and the
6chairman and minority chairman of the Education Committee of the
7House of Representatives. The recommendations of the commission
8shall not take effect unless the recommendations are approved by
9an act of the General Assembly enacted after the effective date
10of this section.

11Section 5. Section 1715-A of the act, amended or added June
1219, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is
13amended to read:

14Section 1715-A. Charter School Entity Requirements.--(a)
15Charter [schools] school entities shall be required to comply
16with the following provisions:

17(1) Except as otherwise provided in this article, a charter
18school entity is exempt from statutory requirements established
19in this act, from regulations of the State board and the
20standards of the secretary not specifically applicable to
21charter [schools] school entities. Charter [schools] school
22entities are not exempt from statutes applicable to public
23schools other than this act.

24(2) A charter school entity shall be accountable to the
25parents, the public and the Commonwealth, with the delineation
26of that accountability reflected in the charter. Strategies for
27meaningful parent and community involvement shall be developed
28and implemented by each school.

29(3) A charter school entity shall not unlawfully
30discriminate in admissions, hiring or operation.

1(4) A charter school entity shall be nonsectarian in all
2operations.

3(5) (i) [A] Subject to subparagraph (ii), a charter school
4entity shall not provide any religious instruction, nor shall it
5display religious objects and symbols on the premises of the
6charter school[.] entity.

7(ii) It shall not be a violation of this paragraph for a
8charter school entity to utilize a sectarian facility:

9(A) if the charter school entity provides for discrete and
10separate entrances to buildings utilized for school purposes
11only;

12(B) if the religious objects and symbols within the portions
13of the facility utilized by the school are covered or removed to
14the extent reasonably feasible; or

15(C) in which the unused portion of the facility or its
16common areas contain religious symbols and objects.

17(6) A charter school entity shall not advocate unlawful
18behavior.

19(7) A charter school or regional charter school shall only
20be subject to the laws and regulations as provided for in
21section 1732-A, or as otherwise provided for in this [article]
22act.

23(7.1) A cyber charter school shall only be subject to the
24laws and regulations as provided for in section 1749-A, or as
25otherwise provided for in this act.

26(8) A charter school entity shall participate in [the
27Pennsylvania State Assessment System as provided for in 22 Pa.
28Code Ch. 5 (relating to curriculum), or subsequent regulations
29promulgated to replace 22 Pa. Code Ch. 5,] assessments in the
30manner in which the school district in which the charter school

1entity is located is scheduled to participate.

2(9) A charter school entity shall provide a minimum of one
3hundred eighty (180) days of instruction or nine hundred (900)
4hours per year of instruction at the elementary level, or nine
5hundred ninety (990) hours per year of instruction at the
6secondary level. Nothing in this clause shall preclude the use
7of computer and satellite linkages for delivering instruction to
8students.

9(10) Boards of trustees and contractors of charter [schools]
10school entities shall be subject to the following statutory
11requirements governing construction projects and construction-
12related work:

13(i) The following provisions of this act:

14(A) Sections 751 and 751.1.

15(B) Sections 756 and 757 insofar as they are consistent with
16the act of December 20, 1967 (P.L.869, No.385), known as the
17"Public Works Contractors' Bond Law of 1967."

18(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
19entitled "An act regulating the letting of certain contracts for
20the erection, construction, and alteration of public buildings."

21(iii) The act of August 11, 1961 (P.L.987, No.442), known as
22the "Pennsylvania Prevailing Wage Act."

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

24(v) The act of March 3, 1978 (P.L.6, No.3), known as the
25"Steel Products Procurement Act."

26(11) Trustees of a charter school entity shall be public
27officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to
28ethics standards and financial disclosure) and shall file a
29statement of financial interests for the preceding calendar year
30with the State Ethics Commission and either the local board of

1school directors in the case of a charter school or regional
2charter school, or the department in the case of a cyber charter
3school, not later than May 1 of each year that members hold the
4position and of the year after a member leaves the position. All
5members of the board of trustees of a charter school entity
6shall take the oath of office as required under section 321
7before entering upon the duties of their office.

8[(12) A person who serves as an administrator for a charter
9school shall not receive compensation from another charter
10school or from a company that provides management or other
11services to another charter school. The term "administrator"
12shall include the chief executive officer of a charter school
13and all other employes of a charter school who by virtue of
14their positions exercise management or operational oversight
15responsibilities. A person who serves as an administrator for a
16charter school shall be a public official under 65 Pa.C.S. Ch.
1711 (relating to ethics standards and financial disclosure). A
18violation of this clause shall constitute a violation of 65
19Pa.C.S. § 1103(a) (relating to restricted activities), and the
20violator shall be subject to the penalties imposed under the
21jurisdiction of the State Ethics Commission.]

22(b) An individual who serves as an administrator for a
23charter school entity shall be a public employe for the purposes
24of 65 Pa.C.S. Ch. 11 and shall file a statement of financial
25interests for the preceding calendar year with the board of
26trustees not later than May 1 of each year that the person holds
27the position and of the year after the person leaves the
28position.

29(c) (1) No individual who serves as an administrator for a
30charter school entity may receive compensation from another

1charter school entity or from an educational management service
2provider, unless:

3(i) The administrator has submitted a sworn statement to the
4board of trustees of the charter school entity and the sworn
5statement details the work for the other entity and includes the
6projected number of hours, rate of compensation and projected
7duration.

8(ii) The board of trustees of the charter school entity has
9reviewed the sworn statement under subclause (i) and agreed, by
10resolution, to grant permission to the administrator.

11(2) A copy of the sworn statement under clause (1)(i) and
12the resolution by the board of trustees granting the permission
13under clause (1)(ii) shall be provided to, and kept on file
14with, the charter school entity and the local board of school
15directors or, in the case of a cyber charter school, the
16department.

17(3) No administrator of a charter school entity or immediate
18family member of the administrator may serve as a voting member
19of the board of trustees of the charter school entity that
20employs the administrator.

21(4) (i) No administrator of a charter school entity may
22participate in the selection, award or administration of a
23contract if the person has a conflict of interest as that term
24is defined in 65 Pa.C.S. § 1102 (relating to definitions).

25(ii) An administrator who knowingly violates this clause
26commits a violation of 65 Pa.C.S. § 1103(a) (relating to
27restricted activities) and shall be subject to the penalties
28imposed under the jurisdiction of the State Ethics Commission.

29(iii) Any contract made in violation of this clause shall be
30voidable by the board of trustees of the charter school entity.

1(5) An administrator shall be immediately dismissed upon
2conviction for an offense graded as a felony, an infamous crime,
3an offense pertaining to fraud, theft or mismanagement of public
4funds or any crime involving moral turpitude.

5Section 6. Section 1716-A(c) of the act, added June 19, 1997
6(P.L.225, No.22), is amended and the section is amended by
7adding subsections to read:

8Section 1716-A. Powers of Board of Trustees.--* * *

9(b.1) (1) For a charter school or regional charter school
10chartered after the effective date of this subsection, an
11individual shall be prohibited from serving as a voting member
12of the board of trustees of the charter school or regional
13charter school if the individual or an immediate family member
14receives compensation from or is employed by or is a member of
15the local board of school directors who participated in the
16initial review, approval, oversight, evaluation or renewal
17process of the charter school or regional charter school
18chartered by that board.

19(2) An employe of the school district that chartered a
20charter school or regional charter school may serve as a member
21of the board of trustees of the charter school or regional
22charter school without voting privileges.

23(b.2) (1) No member of the board of trustees of a charter
24school entity may participate in the selection, award or
25administration of any contract if the member has a conflict of
26interest as that term is defined in 65 Pa.C.S. § 1102 (relating
27to definitions).

28(2) Any member of the board of trustees of a charter school
29entity who in the discharge of the person's official duties
30would be required to vote on a matter that would result in a

1conflict of interest shall abstain from voting and follow the
2procedures required under 65 Pa.C.S. § 1103(j) (relating to
3restricted activities).

4(3) A member of the board of trustees of a charter school
5entity who knowingly violates this subsection commits a
6violation of 65 Pa.C.S. § 1103(a) and shall be subject to the
7penalties imposed under the jurisdiction of the State Ethics
8Commission.

9(4) A contract made in violation of this subsection shall be
10voidable by a court of competent jurisdiction, if the suit is
11commenced within ninety (90) days of the making of the contract.

12(5) No member of the board of trustees of a charter school
13entity shall be compensated for duties on the board of trustees.

14(b.3) A member of the board of trustees of a charter school
15entity shall be automatically disqualified and immediately
16removed from the board of trustees upon conviction for an
17offense graded as a felony, an infamous crime, an offense
18pertaining to fraud, theft or mismanagement of public funds, any
19offense pertaining to his official capacity as a member of the
20board of trustees or any crime involving moral turpitude.

21(c) The board of trustees shall comply with [the act of July
223, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
23Pa.C.S. Ch. 7 (relating to open meetings).

24(d) (1) (i) The board of trustees of a charter school
25entity shall consist of a minimum of five (5) nonrelated voting
26members.

27(ii) If a charter school entity has fewer than five (5)
28nonrelated voting members serving on its board of trustees on
29the effective date of this subsection, the charter school entity
30shall, within sixty (60) days, appoint additional members to the

1board of trustees to meet the minimum requirements of this
2section.

3(2) Within one (1) year of the effective date of this
4subsection, at least one member of the board of trustees of a
5charter school entity shall be a parent of a child currently
6attending the charter school entity. The board of trustees
7member required by this paragraph shall be eligible to serve
8only so long as the child attends the charter school entity.

9(e) (1) A majority of the voting members of the board of
10trustees shall constitute a quorum. If less than a majority is
11present at any meeting, no business may be transacted at the
12meeting.

13(2) The affirmative vote of a majority of all the voting
14members of the board of trustees, duly recorded, shall be
15required in order to take official action on the subjects
16enumerated under subsection (a).

17Section 7. The act is amended by adding a section to read:

18Section 1716.1-A. Payment of Indebtedness by Charter School
19Entities.--(a) The board of trustees of a charter school entity
20shall supply the secretary and, in the case of a charter school
21or regional charter school, the local board of school directors
22a list of the amount of rental payments which are guarantees for
23school building debt or bonds that become due during the fiscal
24year together with the amount paid on each item of indebtedness.
25Any charter school entity that elects to issue debt shall hold
26in escrow an amount sufficient to pay the annual amount of the
27sum of the principal maturing or subject to mandatory redemption
28and interest owing by the charter school entity or sinking fund
29deposit due by the charter school entity.

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

1charter school entity fails to pay or to provide for the payment
2of:

3(i) any indebtedness at date of maturity or date of
4mandatory redemption or on any sinking fund deposit date; or

5(ii) any interest due on such indebtedness on any interest
6payment date or on any sinking fund deposit date in accordance
7with the schedule under which the bonds were issued,

8the bank or trustee for the bonds shall notify the board of
9trustees of its obligation and shall immediately notify the
10secretary and, in the case of a charter school or regional
11charter school, the local board of school directors.

12(2) The secretary shall withhold any payment due the charter
13school entity in any amount necessary to fully fund the amount
14held in escrow by the charter school entity which shall be equal
15to the sum of the principal amount maturing or subject to
16mandatory redemption and interest owing by the charter school
17entity or sinking fund deposit due by the charter school entity
18and shall require payover of the amount withheld to the bank or
19trustee acting as the sinking fund depositary for the bond issue
20from the escrow account.

21Section 8. Section 1717-A(c), (d), (e) and (f) of the act,
22added June 19, 1997 (P.L.225, No.22), are amended and the
23section is amended by adding subsections to read:

24Section 1717-A. Establishment of Charter School.--* * *

25(c) An application to establish a charter school shall be
26submitted to the local board of school directors of the district
27where the charter school will be located by [November 15]
28October 1 of the school year preceding the school year in which
29the charter school will be established except that for a charter
30school beginning in the 1997-1998 school year, an application

1must be received by July 15, 1997. In the 1997-1998 school year
2only, applications shall be limited to recipients of fiscal year
31996-1997 Department of Education charter school planning
4grants.

5(d) Within forty-five (45) days of receipt of an
6application, the local board of school directors in which the
7proposed charter school is to be located shall hold at least one
8public hearing on the provisions of the charter application,
9under [the act of July 3, 1986 (P.L.388, No.84), known as the
10"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
11At least forty-five (45) days must transpire between the first
12public hearing and the final decision of the board on the
13charter application except that for a charter school beginning
14in the 1997-1998 school year, only thirty (30) days must
15transpire between the first public hearing and the final
16decision of the board.

17(e) (1) Not later than seventy-five (75) days after the
18first public hearing on the application, the local board of
19school directors shall grant or deny the application. For a
20charter school beginning in the 1997-1998 school year, the local
21board of school directors shall grant or deny the application no
22later than sixty (60) days after the first public hearing.

23(2) A charter school application submitted under this
24article shall be evaluated by the local board of school
25directors based on criteria, including, but not limited to, the
26following:

27(i) The demonstrated, sustainable support for the charter
28school plan by teachers, parents, other community members and
29students, including comments received at the public hearing held
30under subsection (d).

1(ii) The capability of the charter school applicant, in
2terms of support and planning, to provide comprehensive learning
3experiences to students pursuant to the adopted charter.

4(iii) The extent to which the application considers the
5information requested in section 1719-A and conforms to the
6legislative intent outlined in section 1702-A.

7(iv) The extent to which the charter school may serve as a
8model for other public schools.

9(3) The local board of school directors, in the case of an
10existing school being converted to a charter school, shall
11establish the alternative arrangements for current students who
12choose not to attend the charter school.

13(4) A charter application shall be deemed approved by the
14local board of school directors of a school district upon
15affirmative vote by a majority of all the directors. Formal
16action approving or denying the application shall be taken by
17the local board of school directors at a public meeting, with
18notice or consideration of the application given by the board,
19under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

20(5) Written notice of the board's action shall be sent to
21the applicant, the department and the appeal board. If the
22application is denied, the reasons for the denial, including a
23description of deficiencies in the application, shall be clearly
24stated in the notice sent by the local board of school directors
25to the charter school applicant.

26(f) At the option of the charter school applicant, a denied
27application may be revised and resubmitted to the local board of
28school directors. Following the appointment and confirmation of
29the Charter School Appeal Board under section 1721-A, the
30decision of the local board of school directors may be appealed

1to the appeal board. When an application is revised and
2resubmitted to the local board of school directors, the board
3may schedule additional public hearings on the revised
4application. The board shall consider the revised and
5resubmitted application at the first board meeting occurring at
6least forty-five (45) days after receipt of the revised
7application by the board. For a revised application resubmitted
8for the 1997-1998 school year, the board shall consider the
9application at the first board meeting occurring at least thirty
10(30) days after its receipt. The board shall provide notice of
11consideration of the revised application under [the "Sunshine
12Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local
13school board may be taken until July 1, 1999.

14* * *

15(j) Notwithstanding the provisions of section 696(i) or any
16other provision of law to the contrary, a school reform
17commission considering an application to establish a charter
18school in a school district of the first class shall comply with
19subsection (e)(5).

20(k) Notwithstanding the provisions of section 696(i) or any
21other provision of law to the contrary, a charter school
22applicant may appeal a decision of a school reform commission to
23deny an application to establish a charter school in a school
24district of the first class to the Charter School Appeal Board.
25Subsections (g), (h) and (i) shall apply to an appeal under this
26subsection.

27Section 8.1. Section 1719-A of the act, added June 19, 1997
28(P.L.225, No.22), is amended to read:

29Section 1719-A. Contents of Application.--[An] (a) The
30department shall create a standard application form for charter

1school applicants seeking to establish a charter school entity
2and for existing charter school entities seeking renewal of
3their charters. The form shall be published in the Pennsylvania
4Bulletin and posted on the department's publicly accessible
5Internet website. The form shall include all of the following
6information:

7(1) The identification of the charter school applicant.

8(2) The name of the proposed charter school entity.

9(3) The grade or age levels served by the school.

10(4) [The proposed governance structure of the charter
11school, including a description and method for the appointment
12or election of members of the board of trustees.] An
13organization chart clearly presenting the proposed governance
14structure of the school, including lines of authority and
15reporting between the board of trustees, administrators, staff
16and any educational management service provider that will
17provide management services to the charter school entity.

18(4.1) A clear description of the roles and responsibilities
19of the board of trustees, administrators and any other entities,
20including a charter school foundation, shown in the organization
21chart.

22(4.2) A clear description of the method for the appointment
23or election of members of the board of trustees.

24(4.3) Standards for board of trustees performance, including
25compliance with all applicable laws, regulations and terms of
26the charter.

27(4.4) If the charter school entity intends to contract with
28an educational management service provider for services, all of
29the following:

30(i) Evidence of the educational management service

1provider's record in serving student populations, including
2demonstrated academic achievement and demonstrated management of
3nonacademic school functions, including proficiency with public
4school-based accounting, if applicable.

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

6(A) The officers, chief administrator and administrators of
7the educational management service provider.

8(B) The proposed duration of the service contract.

9(C) Roles and responsibilities of the board of trustees, the
10school staff and the educational management service provider.

11(D) The scope of services, personnel and resources to be
12provided by the educational management service provider.

13(E) Performance evaluation measures and timelines.

14(F) The compensation structure, including clear
15identification of all fees to be paid to the educational
16management service provider.

17(G) Methods of contract oversight and enforcement.

18(H) Investment disclosure or the advance of moneys by the
19educational management service provider on behalf of the charter
20school entity.

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

22(iii) Disclosure and explanation of any existing or
23potential conflicts of interest between the members of the board
24of trustees and the proposed educational management service
25provider or any affiliated business entities, including a
26charter school foundation qualified as a support organization
27under the Internal Revenue Code of 1986 (Public Law 99-514, 26
28U.S.C. § 1 et seq.).

29(5) The mission and education goals of the charter school
30entity, the curriculum to be offered and the methods of

1assessing whether students are meeting educational goals.

2(6) The admission policy and criteria for evaluating the
3admission of students which shall comply with the requirements
4of section 1723-A.

5(7) Procedures which will be used regarding the suspension
6or expulsion of pupils. Said procedures shall comply with
7section 1318.

8(8) Information on the manner in which community groups will
9be involved in the charter school entity planning process.

10(9) The financial plan for the charter school entity and the
11provisions which will be made for auditing the school under
12[section] sections 437 and 1728-A, including the role of any
13charter school foundation.

14(10) Procedures which shall be established to review
15complaints of parents regarding the operation of the charter
16school entity.

17(11) A description of and address of the physical facility
18in which the charter school entity will be located and the
19ownership thereof and any lease arrangements.

20(12) Information on the proposed school calendar for the
21charter school entity, including the length of the school day
22and school year consistent with the provisions of section 1502.

23(13) The proposed faculty, if already determined, and a
24professional development and continuing education plan for the
25faculty and professional staff of [a] the charter school entity.

26(14) Whether any agreements have been entered into or plans
27developed with the local school district regarding participation
28of the charter school entity's students in extracurricular
29activities within the school district. Notwithstanding any
30provision to the contrary, no school district of residence shall

1prohibit a student of a charter school entity from participating
2in any extracurricular activity of that school district of
3residence: Provided, That the student is able to fulfill all of
4the requirements of participation in such activity and the
5charter school entity does not provide the same extracurricular
6activity.

7(15) A report of criminal history record, pursuant to
8section 111, for all individuals identified in the application
9who shall have direct contact with students and a plan for
10satisfying the proper criminal history record clearances
11required for all other staff.

12(16) An official clearance statement regarding child injury
13or abuse from the Department of Public Welfare as required by 23
14Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for
15employment in schools) for all individuals identified in the
16application who shall have direct contact with students and a
17plan for satisfying the proper official clearance statement
18regarding child injury or abuse required for all other staff.

19(17) How the charter school entity will provide adequate
20liability and other appropriate insurance for the charter school
21entity, its employes and the board of trustees of the charter
22school entity.

23(18) Policies regarding truancy, absences and withdrawal of
24students, including the manner in which the charter school
25entity will monitor attendance consistent with section 1715-A(a)
26(9). The charter school entity's policy shall establish, to the
27satisfaction of the local board of school directors or, in the
28case of a cyber charter school, to the satisfaction of the
29department, that the charter school entity will comply with
30sections 1332 and 1333, including the institution of truancy

1proceedings when required under section 1333.

2(19) How the charter school entity will meet the standards
3included in the performance matrix developed by the State Board
4of Education under section 1731.2-A.

5(20) Indicate whether or not the charter school entity will
6seek accreditation by a nationally recognized accreditation
7agency, including the Middle States Association of Colleges and
8Schools or another regional institutional accrediting agency
9recognized by the United States Department of Education or an
10equivalent federally recognized body for charter school
11education.

12(b) A local board of school directors may not impose
13additional terms, develop its own application or require
14additional information outside the standard application form
15required under subsection (a).

16Section 9. Section 1720-A of the act, amended July 9, 2008,
17(P.L.846, No.61), is amended to read:

18Section 1720-A. Term and Form of Charter.--(a) (1) Upon
19approval of a charter application under section 1717-A, a
20written charter shall be developed which shall contain the
21provisions of the standardized charter application under section
221719-A and which shall be signed by the local board of school
23directors of a school district, by the local boards of school
24directors of a school district in the case of a regional charter
25school or by the chairman of the appeal board pursuant to
26section [1717-A(i)(5)] 1717-A(i)(9) and the board of trustees of
27the charter school or regional charter school. This written
28charter, when duly signed by the local board of school directors
29of a school district, [or] by the local boards of school
30directors of a school district in the case of a regional charter

1school or by the chairman of the appeal board, and the charter
2school or regional charter school's board of trustees, shall act
3as legal authorization for the establishment of a charter school
4or regional charter school. This written charter shall be
5legally binding on both the local board of school directors of a
6school district and the charter school or regional charter
7school's board of trustees. [Except as otherwise provided in
8subsection (b), the charter shall be for a period of no less
9than three (3) nor more than five (5) years and may be renewed
10for five (5) year periods upon reauthorization by the local
11board of school directors of a school district or the appeal
12board.] If the charter school or regional charter school
13contracts with an educational management service provider, a
14contract shall be executed once the charter is approved. A
15charter will be granted only for a school organized as a public,
16nonprofit corporation.

17(2)  The following shall apply to all charters granted by a
18school district:

19(i)  An initial charter executed pursuant to section
201720-A(a)(1) shall be for a period of five (5) years.

21(ii)  Prior to the effective date of the regulations
22implementing the performance matrix as required pursuant to
23section 1731.2-A, a charter may be renewed for five (5) year
24periods upon reauthorization by the local board of school
25directors or other governing body of a school district or the
26appeal board.

27(iii)  Upon the effective date of the regulations
28implementing the performance matrix as required pursuant to
29section 1731.2-A, the following shall apply:

30(A)  For charter schools and regional charter schools that

1have satisfied the academic quality benchmark established by the
2State Board of Education pursuant to section 1731.2-A, a charter
3may be renewed for ten (10) year periods upon reauthorization by
4the local board of school directors or other governing body of a
5school district or the appeal board.

6(B)  For charter schools and regional charter schools that
7have not satisfied the academic quality benchmark established by
8the State Board of Education pursuant to section 1731.2-A, a
9charter may be renewed for five (5) year periods upon
10reauthorization by the local board of school directors or other
11governing body of a school district or the appeal board.

12[(b) (1) Notwithstanding subsection (a), a governing board
13of a school district of the first class may renew a charter for
14a period of one (1) year if the board of school directors
15determines that there is insufficient data concerning the
16charter school's academic performance to adequately assess that
17performance and determines that an additional year of
18performance data would yield sufficient data to assist the
19governing board in its decision whether to renew the charter for
20a period of five (5) years.

21(2) A one-year renewal pursuant to paragraph (1) shall not
22be considered an adjudication and may not be appealed to the
23State Charter School Appeal Board.

24(3) A governing board of a school district of the first
25class does not have the authority to renew a charter for
26successive one (1) year periods.]

27(c) (1) A charter school or regional charter school may
28request amendments to its approved written charter by filing a
29written document describing the requested amendment with the
30local board of school directors.

1(2) Within twenty (20) days of its receipt of the request
2for an amendment, the local board of school directors shall hold
3a public hearing on the requested amendment under 65 Pa.C.S. Ch.
47 (relating to open meetings).

5(3) Within twenty (20) days after the hearing, the local
6board of school directors shall grant or deny the requested
7amendment. Failure by the local board of school directors to
8hold a public hearing and to grant or deny the amendment within
9the time period specified in this subsection shall be deemed an
10approval.

11(4) An applicant for an amendment shall have the right to
12appeal the denial of a requested amendment to the appeal board
13provided for under section 1721-A.

14Section 10. Section 1721-A(a) and (e) of the act, added June
1519, 1997 (P.L.225, No.22), are amended to read:

16Section 1721-A. State Charter School Appeal Board.--(a) The
17State Charter School Appeal Board shall consist of the Secretary
18of Education and [six (6)] the following members who shall be
19appointed by the Governor by and with the consent of a majority
20of all the members of the Senate. [Appointments by the Governor
21shall not occur prior to January 1, 1999.] The Governor shall
22select the chairman of the appeal board to serve at the pleasure
23of the Governor. The members shall include:

24(1) A parent of a school-aged child enrolled in a charter
25school entity.

26(2) A school board member.

27(3) A certified teacher actively employed in a public
28school.

29(4) A faculty member or administrative employe of an
30institution of higher education.

1(5) A member of the business community.

2(6) A member of the State Board of Education.

3(7) An administrator of a charter school entity.

4(8) A member of the board of trustees of a charter school
5entity.

6The term of office of members of the appeal board, other than
7the secretary, shall be for a period of four (4) years or until
8a successor is appointed and qualified, except that, of the
9initial appointees, the Governor shall designate two (2) members
10to serve terms of two (2) years, two (2) members to serve terms
11of three (3) years and two (2) members to serve terms of four
12(4) years. A parent member appointed under paragraph (1) shall
13serve a term of four (4) years, provided the member's child
14remains enrolled in the charter school entity. Any appointment
15to fill any vacancy shall be for the period of the unexpired
16term or until a successor is appointed and qualified.

17* * *

18(e) Meetings of the appeal board shall be conducted under
19[the act of July 3, 1986 (P.L.388, No.84), known as the
20"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
21Documents of the appeal board shall be subject to the [act of
22June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
23Know Law] act of February 14, 2008 (P.L.6, No.3), known as the
24"Right-to-Know Law".

25Section 11. Section 1722-A(a), (b) and (d) of the act,
26amended November 17, 2010 (P.L.996, No.104), are amended and the
27section is amended by adding a subsection to read:

28Section 1722-A. Facilities.--(a) A charter school entity
29may be located in an existing public school building, in a part
30of an existing public school building, in space provided on a

1privately owned site, in a public building or in any other
2suitable location.

3(b) The charter school entity facility shall be exempt from
4public school facility regulations except those pertaining to
5the health or safety of [the pupils] students.

6(d) Notwithstanding any other provision of this act, a
7school district [of the first class] may, in its discretion,
8permit a charter school or regional charter school to operate
9its school at more than one location.

10* * *

11(f) (1) Alcoholic beverages shall not be available for
12consumption, purchase or sale in any charter school entity
13facility.

14(2) If, in the case of a charter school or regional charter
15school, the local board of school directors reasonably believes
16that alcoholic beverages have been made available for
17consumption, purchase or sale in the charter school or regional
18charter school facility, the local board of school directors
19shall notify the department.

20(3) If alcoholic beverages have been made available for
21consumption, purchase or sale in a charter school entity
22facility, the secretary shall order the following forfeitures
23against the charter school entity:

24(i) A fine of one thousand dollars ($1,000) for the first
25violation.

26(ii) A fine of five thousand dollars ($5,000) for the second
27or subsequent violation.

28(4) The charter school entity may appeal the order of the
29secretary under 2 Pa.C.S. Chs. 5 (relating to practice and
30procedure) and 7 (relating to judicial review).

1Section 12. Section 1723-A(a) and (d) of the act, amended or
2added June 26, 1999 (P.L.394, No.36) and July 9, 2008 (P.L.846,
3No.61), are amended to read:

4Section 1723-A. Enrollment.--(a) All resident children in
5this Commonwealth qualify for admission to a charter school
6entity within the provisions of subsection (b). If more students
7apply to the charter school entity than the number of attendance
8slots available in the school, then students must be selected on
9a random basis from a pool of qualified applicants meeting the
10established eligibility criteria and submitting an application
11by the deadline established by the charter school entity, except
12that the charter school entity may give preference in enrollment
13to a child of a parent who has actively participated in the
14development of the charter school [and] entity, to siblings of
15students presently enrolled in the charter school entity and to
16siblings of students selected for enrollment during the lottery
17process. First preference shall be given to students who reside
18in the district or districts in which the charter school entity
19is physically located.

20* * *

21(d) (1) Enrollment of students in a charter school,
22regional charter school or cyber charter school or expansion of
23a charter school, regional charter school or cyber charter
24school into additional grade levels shall not be subject to a
25cap or otherwise limited by any past or future action of a board
26of school directors, a board of control established under
27Article XVII-B, a special board of control established under
28section 692 or any other governing authority[, unless agreed to
29by the charter school or cyber charter school as part of a
30written charter pursuant to section 1720-A].

1(2) The provisions of this subsection shall apply to a
2charter school, regional charter school or cyber charter school
3regardless of whether the charter was approved prior to or is
4approved subsequent to the effective date of this subsection.

5Section 13. Section 1725-A of the act, amended or added June
619, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and
7June 29, 2002 (P.L.524, No.88), is amended to read:

8Section 1725-A. Funding for Charter [Schools] School
9Entities.--(a) Funding for a charter school entity shall be
10provided in the following manner:

11(1) There shall be no tuition charge for a resident or
12nonresident student attending a charter school entity.

13(2) [For non-special education students, the charter school
14shall receive for each student enrolled no less than the
15budgeted total expenditure per average daily membership of the
16prior school year, as defined in section 2501(20), minus the
17budgeted expenditures of the district of residence for nonpublic
18school programs; adult education programs; community/junior
19college programs; student transportation services; for special
20education programs; facilities acquisition, construction and
21improvement services; and other financing uses, including debt
22service and fund transfers as provided in the Manual of
23Accounting and Related Financial Procedures for Pennsylvania
24School Systems established by the department. This amount shall
25be paid by the district of residence of each student.] For non-
26special education students, the charter school entity shall
27receive for each student enrolled the following, which shall be
28paid by the school district of residence of each student by
29deduction and transfer from all State payments due to the school
30district of residence as provided for under clause (5):

1(i) Subject to clause (ii), no less than the budgeted total
2expenditure per average daily membership of the prior school
3year, as defined in section 2501(20), minus the budgeted
4expenditures of the district of residence for nonpublic school
5programs; adult education programs; community/junior college
6programs; student transportation services; for special education
7programs; facilities acquisition, construction and improvement
8services; and other financing uses, including debt service and
9fund transfers as provided in the Manual of Accounting and
10Related Financial Procedures for Pennsylvania School Systems
11established by the department.

12(ii) Beginning in the 2013-2014 school year and through and
13including the 2014-2015 school year, the following:

14(A) For each student enrolled in a charter school or
15regional charter school, no less than the budgeted total
16expenditure per average daily membership of the prior school
17year, as defined in section 2501(20), minus the budgeted
18expenditures of the district of residence for nonpublic school
19programs; adult education programs; community/junior college
20programs; student transportation services; special education
21programs; facilities acquisition, construction and improvement
22services; and other financing uses, including debt service and
23fund transfers as provided in the Manual of Accounting and
24Related Financial Procedures for Pennsylvania School Systems
25established by the department.

26(B) For each student enrolled in a cyber charter school, no
27less than the budgeted total expenditure per average daily
28membership of the prior school year, as defined in section
292501(20), minus the budgeted expenditures of the district of
30residence for nonpublic school programs; adult education

1programs; community/junior college programs; student
2transportation services; special education programs; facilities
3acquisition, construction and improvement services; other
4financing uses, including debt service and fund transfers as
5provided in the Manual of Accounting and Related Financial
6Procedures for Pennsylvania School Systems established by the
7department; food services; and the full employer's share of
8retirement contributions paid to the Public School Employees'
9Retirement System.

10(2.1) The amount under clause (2) shall be calculated by
11each school district on a form prescribed by the secretary in
12accordance with this section. The secretary, upon receipt of a
13school district's calculation, shall review the school
14district's calculation and may request supporting documentation
15from the school district regarding its calculation. If the
16secretary finds an error or discrepancy in a school district's
17calculation, the secretary shall require the school district to
18correct the calculation and require the school district to
19notify affected charter school entities.

20(3) [For special education students, the charter school
21shall receive for each student enrolled the same funding as for
22each non-special education student as provided in clause (2),
23plus an additional amount determined by dividing the district of
24residence's total special education expenditure by the product
25of multiplying the combined percentage of section 2509.5(k)
26times the district of residence's total average daily membership
27for the prior school year. This amount shall be paid by the
28district of residence of each student.] For special education
29students, the charter school entity shall receive for each
30student enrolled the same funding as for each non-special

1education student as provided under clause (2), plus an
2additional amount determined by dividing the total special
3education expenditure of the school district of residence by the
4product of:

5(i) the combined percentage of section 2509.5(k) applicable
6to the school year; and

7(ii) the total average daily membership of the school
8district of residence for the prior school year.

9(3.1) The following apply:

10(i) The amount under clauses (2) and (3) shall be paid by
11the school district of residence of each student by deduction
12and transfer from all State payments due to the school district
13of residence as provided under clause (5).

14(ii) If a charter school entity disputes the accuracy of a
15school district's calculation under clauses (2) and (3), the
16charter school entity shall file a notice of the dispute with
17the secretary, who shall hold a hearing to determine the
18accuracy of the school district's calculation within thirty (30)
19days of the notice.

20(iii) The secretary shall determine the accuracy of the
21school district's calculation and make any necessary billing
22adjustment within thirty (30) days of the hearing.

23(iv) The school district shall bear the burden of production
24and proof with respect to its calculation under this clause.

25(v) The school district shall be liable for the reasonable
26legal fees incurred by a charter school entity if the charter
27school entity is the substantially prevailing party after a
28hearing under this section. The charter school entity shall be
29liable for the reasonable legal fees incurred by the school
30district if the school district is the substantially prevailing

1party after a hearing under this section.

2(vi) All decisions of the secretary under this clause shall
3be subject to appellate review by Commonwealth Court.

4(4) [A charter school may request the intermediate unit in
5which the charter school is located to provide services to
6assist the charter school to address the specific needs of
7exceptional students. The intermediate unit shall assist the
8charter school and bill the charter school for the services. The
9intermediate unit may not charge the charter school more for any
10service than it charges the constituent districts of the
11intermediate unit.] A charter school entity may request the
12intermediate unit or school district in which the charter school
13entity is located to provide services to assist the charter
14school entity to address the specific needs of non-special
15education and special education students. The intermediate unit
16or school district shall assist the charter school entity and
17bill the charter school entity for the services. The
18intermediate unit may not charge the charter school entity more
19for any service than it charges the constituent districts of the
20intermediate unit. Nothing under this clause shall preclude an
21intermediate unit or school district from contracting with a
22charter school entity to provide the intermediate unit or school
23district with services to assist the intermediate unit or school
24district to address specific needs of non-special education and
25special education students.

26(5) [Payments shall be made to the charter school in twelve
27(12) equal monthly payments, by the fifth day of each month,
28within the operating school year. A student enrolled in a
29charter school shall be included in the average daily membership
30of the student's district of residence for the purpose of

1providing basic education funding payments and special education
2funding pursuant to Article XXV. If a school district fails to
3make a payment to a charter school as prescribed in this clause,
4the secretary shall deduct the estimated amount, as documented
5by the charter school, from any and all State payments made to
6the district after receipt of documentation from the charter
7school.] Beginning in the 2013-2014 school year, the following
8apply:

9(i) Payments shall be made to the charter school entity in
10twelve (12) equal monthly payments, according to the established
11monthly unipay schedule within the operating school year or any
12subsequent school year.

13(ii) Except as provided for in subclause (v), payments shall
14be made directly by the secretary deducting and paying to the
15charter school entity the estimated amount, as documented by the
16charter school entity, from:

17(A) all State payments due to the school district of
18residence; or

19(B) if no payments are due to the school district of
20residence, from all State payments reasonably expected to be due
21in the next established monthly unipay schedule, after receipt
22of documentation from the charter school entity as to its
23enrollment.

24(iii) At least thirty (30) days prior to the scheduled
25payment date each month, a charter school entity shall provide
26to the department and to the school district of residence of
27each student enrolled in the charter school entity documentation
28of the charter school entity's enrollment, on a form to be
29developed by the secretary within sixty (60) days of the
30effective date of this section. The form, which shall be

1developed in consultation with representatives of charter school
2entities and school districts, shall require the charter school
3entity to provide to the department and to the school district
4of residence of each student enrolled in the charter school
5entity, documentation of each student's current enrollment in
6the charter school entity and current residence in the school
7district, including the following information:

8(A) Student's name.

9(B) Student's home address.

10(C) Name and telephone number of student's parent or
11guardian.

12(D) Student's date of birth.

13(E) Student's grade level.

14(F) Type of school in which student was previously enrolled.

15(G) Student's date of enrollment.

16(H) Whether each student is being educated under an
17individualized education plan under the Individuals with
18Disabilities Education Act (Public Law 91-230, 20 U.S.C. § 1400
19et seq.).

20(I) The tuition amount due on account of each student.

21(J) The total amount due from the school district for that
22month.

23(K) Copies of the actual documents used by the charter
24school entity to verify each student's residence in the school
25district.

26The secretary shall not make payments under this section until
27the charter school entity provides the department and the school
28district or residence with a completed form and accompanying
29documentation as required under this clause. A charter school
30entity may make only one (1) payment request per month under

1this clause. After a charter school entity makes a payment
2request under this clause, any necessary corrections or
3adjustments may be made in the next subsequent monthly payment
4request.

5(iv) The secretary's obligation to make payments under this
6section is mandatory and ministerial, except that payments made
7pursuant to this section shall not be given priority over
8payments required pursuant to sections 633 and 785 and 53
9Pa.C.S. § 8125(b) (relating to security for tax anticipation
10notes and sinking fund), or an agreement pursuant to which the
11Commonwealth is required to make payment to a holder of debt
12issued by or on behalf of a school entity. If payments required
13under sections 633 and 785 and 53 Pa.C.S. § 8125(b) preclude the
14timely payment of funds to a charter school entity under section
151725-A or will cause the board of school directors of a school
16district to fail to pay or provide for payment under this
17subsection, nothing shall preclude the secretary from
18withholding funds from any and all State payments made to the
19school district for the operating school year or for any
20subsequent operating school year.

21(v) If there are insufficient State payments due to a school
22district in the established monthly unipay schedule to cover all
23charter school entity deductions and transfers, the school
24district shall be responsible for paying the unpaid balance
25directly to the charter school entity not more than ten (10)
26days following the established monthly unipay schedule.

27(vi) A student enrolled in a charter school entity shall be
28included in the average daily membership of the student's school
29district of residence for the purpose of providing basic
30education funding payments and special education funding under

1Article XXV.

2(6) [Within thirty (30) days after the secretary makes the
3deduction described in clause (5), a school district may notify
4the secretary that the deduction made from State payments to the
5district under this subsection is inaccurate. The secretary
6shall provide the school district with an opportunity to be
7heard concerning whether the charter school documented that its
8students were enrolled in the charter school, the period of time
9during which each student was enrolled, the school district of
10residence of each student and whether the amounts deducted from
11the school district were accurate.] The following apply:

12(i) Within thirty (30) days after the payment is made to the
13charter school entity as described under clause (5), a school
14district may notify the secretary that the estimated amount, as
15documented by the charter school entity, is inaccurate.

16(ii) Within thirty (30) days of the notice by the school
17district under subclause (i), the secretary shall provide the
18school district with a hearing concerning whether the charter
19school entity documented that students were enrolled in the
20charter school entity, the period of time during which each
21student was enrolled in the charter school entity, the school
22district of residence of each student enrolled in the charter
23school entity and whether the amounts deducted from or paid by
24the school district were accurate.

25(iii) The burden of proof and production at the hearing
26shall be on the school district. A hearing shall not be held
27before the secretary deducts and transfers to the charter school
28entity the amount estimated by the charter school entity.

29(iv) The secretary shall determine the accuracy of the
30amount documented by the charter school entity and make any

1necessary payment adjustment within thirty (30) days of the
2hearing.

3(v) The school district shall be liable for the reasonable
4legal fees incurred by a charter school entity if the charter
5school entity is the substantially prevailing party after a
6hearing under this section. The charter school entity shall be
7liable for the reasonable legal fees incurred by the school
8district if the school district is the substantially prevailing
9party after a hearing under this section.

10(vi) All decisions of the secretary under this section shall
11be subject to appellate review by Commonwealth Court.

12(vii) Supersedeas shall not be granted to the secretary or
13any party to the proceeding on an appeal from the decision of
14the secretary under this section; and, absent a court order, the
15secretary shall not hold any payments in escrow.

16[(b) The Commonwealth shall provide temporary financial
17assistance to a school district due to the enrollment of
18students in a charter school who attended a nonpublic school in
19the prior school year in order to offset the additional costs
20directly related to the enrollment of those students in a public
21charter school. The Commonwealth shall pay the school district
22of residence of a student enrolled in a nonpublic school in the
23prior school year who is attending a charter school an amount
24equal to the school district of residence's basic education
25subsidy for the current school year divided by the district's
26average daily membership for the prior school year. This payment
27shall occur only for the first year of the attendance of the
28student in a charter school, starting with school year 1997-
291998. Total payments of temporary financial assistance to school
30districts on behalf of a student enrolling in a charter school

1who attended a nonpublic school in the prior school year shall
2be limited to funds appropriated for this program in a fiscal
3year. If the total of the amount needed for all students
4enrolled in a nonpublic school in the prior school year who
5enroll in a charter school exceeds the appropriation for the
6temporary financial assistance program, the amount paid to a
7school district for each qualifying student shall be pro rata
8reduced. Receipt of funds under this subsection shall not
9preclude a school district from applying for a grant under
10subsection (c).

11(c) The Commonwealth shall create a grant program to provide
12temporary transitional funding to a school district due to the
13budgetary impact relating to any student's first-year attendance
14at a charter school. The department shall develop criteria which
15shall include, but not be limited to, the overall fiscal impact
16on the budget of the school district resulting from students of
17a school district attending a charter school. The criteria shall
18be published in the Pennsylvania Bulletin. This subsection shall
19not apply to a public school converted to a charter school under
20section 1717-A(b). Grants shall be limited to funds appropriated
21for this purpose.]

22(d) It shall be lawful for any charter school entity to
23receive, hold, manage and use, absolutely or in trust, any
24devise, bequest, grant, endowment, gift or donation of any
25property, real or personal and/or mixed, which shall be made to
26the charter school entity for any of the purposes of this
27article.

28(e) It shall be unlawful for any trustee of a charter school
29entity or any board of trustees of a charter school entity or
30any other person affiliated in any way with a charter school

1entity to demand or request, directly or indirectly, any gift,
2donation or contribution of any kind from any parent, teacher,
3employe or any other person affiliated with the charter school
4entity as a condition for employment or enrollment and/or
5continued attendance of any pupil. Any donation, gift or
6contribution received by a charter school entity shall be given
7freely and voluntarily.

8(f) A charter school entity may not provide discounts to a
9school district or waive payments under this section for any
10student.

11Section 14. Sections 1728-A and 1729-A(a), (b) and (c) of
12the act, added June 19, 1997 (P.L.225, No.22), are amended to
13read:

14Section 1728-A. Annual Reports and Assessments.--(a) (1)
15The local board of school directors shall annually assess
16whether each charter school or regional charter school is
17meeting the goals of its charter and shall conduct a
18comprehensive review prior to [granting a five (5) year renewal
19of the charter] renewing the charter pursuant to section 1720-
20A(a)(2). The local board of school directors shall have ongoing
21access to the records and facilities of the charter school or
22regional charter school to ensure that the charter school or
23regional charter school is in compliance with its charter and
24this act and that requirements for testing, civil rights and
25student health and safety are being met.

26(2) Ongoing access to a charter school's or regional charter
27school's records shall mean that the local board of school
28directors shall have access to records such as financial
29reports, financial audits, aggregate standardized test scores
30without student-identifying information and teacher

1certification and personnel records.

2(3) Charter schools and regional charter schools shall
3comply fully with the requirements of the Family Educational
4Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. §
51232g) and associated regulations. No personally identifiable
6information from education records shall be provided by the
7charter school or regional charter school to the school district
8except in compliance with the Family Educational Rights and
9Privacy Act of 1974.

10(b) In order to facilitate the local board's review and
11secretary's report, each charter school or regional charter
12school shall submit an annual report no later than August 1 of
13each year to the local board of school directors and the
14secretary in the form prescribed by the secretary.

15[(c) Five (5) years following the effective date of this
16article, the secretary shall contract with an independent
17professional consultant with expertise in public and private
18education. The consultant shall receive input from members of
19the educational community and the public on the charter school
20program. The consultant shall submit a report to the secretary,
21the Governor and the General Assembly and an evaluation of the
22charter school program, which shall include a recommendation on
23the advisability of the continuation, modification, expansion or
24termination of the program and any recommendations for changes
25in the structure of the program.]

26(d) A charter school entity shall form an independent audit
27committee of its board of trustees members which shall review at
28the close of each fiscal year a complete certified audit of the
29operations of the charter school entity. The audit shall be
30conducted by a qualified independent certified public

1accountant. The audit shall be conducted under generally
2accepted audit standards of the Governmental Accounting
3Standards Board and shall include the following:

4(1) An enrollment test to verify the accuracy of student
5enrollment and reporting to the State.

6(2) Full review of expense reimbursements for board of
7trustees members and administrators, including sampling of all
8reimbursements.

9(3) Review of internal controls, including review of
10receipts and disbursements.

11(4) Review of annual Federal and State tax filings,
12including the Internal Revenue Service Form 990, Return of
13Organization Exempt from Income Tax and all related schedules
14and appendices for the charter school entity and charter school
15foundation, if applicable.

16(5) Review of the financial statements of any charter school
17foundation.

18(6) Review of the selection and acceptance process of all
19contracts publicly bid pursuant to section 751.

20(7) Review of all board policies and procedures with regard
21to internal controls, code of ethics, conflicts of interest,
22whistle-blower protections, complaints from parents or the
23public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
24meetings), finances, budgeting, audits, public bidding and
25bonding.

26(e) The certified audit under subsection (d) and the annual
27budget under subsection (g) are public documents and shall be
28made available on the charter school entity's publicly
29accessible Internet website, if available, and, in the case of a
30charter school or regional charter school, on the school

1district's publicly accessible Internet website.

2(f) A charter school entity may be subject to an annual
3audit by the Auditor General, in addition to any other audits
4required by Federal law or this article.

5(g) A charter school entity shall annually provide the
6department and, in the case of a charter school or regional
7charter school, shall annually provide the school district, with
8a copy of the annual budget for the operation of the charter
9school entity that identifies the following:

10(1) The source of funding for all expenditures.

11(2) Where funding is provided by a charter school
12foundation, the amount of funds and a description of the use of
13the funds.

14(3) The salaries of all administrators of the charter school
15entity.

16(4) All expenditures to an educational management service
17provider.

18(h) (1) Notwithstanding any other provision of law, a
19charter school entity and any affiliated charter school
20foundation shall make copies of its annual Federal and State tax
21filings available upon request and on the charter school
22entity's or foundation's publicly accessible Internet website,
23if available, including Internal Revenue Service Form 990,
24Return of Organization Exempt from Income Tax and all related
25schedules and appendices.

26(2) The charter school foundation shall also make copies of
27its annual budget available upon request and on the foundation's
28or the charter school entity's publicly accessible Internet
29website within thirty (30) days of the close of the foundation's
30fiscal year.

1(3) The annual budget shall include the salaries of all
2employes of the charter school foundation.

3Section 1729-A. Causes for Nonrenewal or Termination.--(a)
4During the term of the charter or at the end of the term of the
5charter, the local board of school directors may choose to
6revoke or not to renew the charter based on any of the
7following:

8(1) One or more material violations of any of the
9conditions, standards or procedures contained in the written
10charter signed pursuant to section 1720-A.

11(2) Failure to meet the requirements for student performance
12[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
13subsequent regulations promulgated to replace 22 Pa. Code Ch. 5]
14on assessments or failure to meet any performance standard set
15forth in the written charter signed pursuant to section [1716-A]
161720-A.

17(3) Failure to meet generally accepted standards of fiscal
18management or audit requirements.

19(4) Violation of provisions of this article.

20(5) Violation of any provision of law from which the charter
21school entity has not been exempted, including Federal laws and
22regulations governing children with disabilities.

23[(6) The charter school has been convicted of fraud.]

24* * *

25(b) [A member of the board of trustees who is convicted of a
26felony or any crime involving moral turpitude shall be
27immediately disqualified from serving on the board of trustees.]
28If, after a hearing under this section, a local board of school
29directors or, in the case of a cyber charter school, the
30department, proves by a preponderance of the evidence that an

1administrator or board member of a charter school entity has
2violated this article, the terms and conditions of the charter
3or any other law, the local board of school directors or, in the
4case of a cyber charter school, the department may require the
5charter school entity to replace an administrator or board of
6trustees member in order to obtain renewal of the charter. The
7local board of school directors or, in the case of a cyber
8charter school, the department may refer its findings to the
9district attorney with jurisdiction or to the Office of Attorney
10General for prosecution if the local board of school directors
11or, in the case of a cyber charter school, the department
12discovers or receives information about possible violations of
13law by any person affiliated with or employed by a charter
14school entity.

15(c) Any notice of revocation or nonrenewal of a charter
16given by the local board of school directors of a school
17district shall state the grounds for such action with reasonable
18specificity and give reasonable notice to the [governing] board
19of trustees of the charter school or regional charter school of
20the date on which a public hearing concerning the revocation or
21nonrenewal will be held. The local board of school directors
22shall conduct such hearing, present evidence in support of the
23grounds for revocation or nonrenewal stated in its notice and
24give the charter school or regional charter school reasonable
25opportunity to offer testimony before taking final action.
26Formal action revoking or not renewing a charter shall be taken
27by the local board of school directors at a public meeting held
28pursuant to [the act of July 3, 1986 (P.L.388, No.84), known as
29the "Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating to open
30meetings) after the public has had thirty (30) days to provide

1comments to the board. All proceedings of the local board
2pursuant to this subsection shall be subject to 2 Pa.C.S. Ch. 5
3Subch. B (relating to practice and procedure of local agencies).
4Except as provided in subsection (d), the decision of the local
5board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B (relating
6to judicial review of local agency action).

7* * *

8Section 15. The act is amended by adding sections to read:

9Section 1729.1-A. Evaluation of Educators.--(a) All
10applications by a charter school entity for a charter or for the
11renewal of a charter shall include a system of evaluation for
12educators that has been preapproved by the department as being
13rigorous and as including both of the following:

14(1) At least four (4) rating categories of educator
15performance.

16(2) Multiple measures of student performance which shall
17include, but may not be limited to, value-added assessment
18system data made available by the department under section 221
19and student performance on the most recent assessments for which
20results have been released by the department and may include
21goals specific to the mission of the charter school entity's
22charter.

23(b) Nothing in this section shall preempt the powers of a
24board of trustees under section 1716-A(a) nor affect the intent
25of the General Assembly provided in section 1702-A(3) and (4).

26(c) For purposes of this section, the term "educator" shall
27include all professional employes who are certified as teachers
28and noncertified staff members who teach in a charter school
29entity.

30Section 1729.2-A. Multiple Charter School Organizations.--

1(a) Establishment shall be as follows:

2(1) Subject to the requirements of this section and 15
3Pa.C.S. Pt. II Subpt. C (relating to nonprofit corporations),
4two (2) or more charter schools may consolidate into a multiple
5charter school organization if both of the following apply:

6(i) The department approves the consolidation as proposed in
7the application form submitted to the department pursuant to
8subsection (c).

9(ii) Each school district that granted the initial charter
10of any charter school included in the proposed consolidation
11approves, by a majority vote of the local board of school
12directors, a resolution approving the consolidation as proposed
13in the application submitted to the local board of school
14directors pursuant to subsection (c). If a local board of school
15directors does not adopt a resolution under this clause
16approving or rejecting the proposed consolidation within forty-
17five (45) days after receipt of the application, the school
18district will be deemed to have approved the consolidation.

19(2) The multiple charter school organization shall be:

20(i) granted legal authority to operate two (2) or more
21individual charter schools under the oversight of a single board
22of trustees and a chief administrator who shall oversee and
23manage the operation of the individual charter schools under its
24organization; and

25(ii) subject to all of the requirements of this article
26unless otherwise provided for under this section.

27(3) Nothing under this section shall be construed to affect
28or change the terms or conditions of any individual charter
29previously granted that is consolidated under this section.

30(b) (1) A charter school that, within either of the most

1recent two (2) school years, has failed to meet the requirements
2for student performance set forth in 22 Pa. Code Ch. 4 (relating
3to academic standards and assessment), accepted standards of
4fiscal management or audit requirements or performance standards
5set forth by the matrix established under section 1731.2-A shall
6not be eligible to consolidate with another charter school
7unless the consolidation includes a charter school demonstrating
8that it has satisfied such requirements for the most recent two
9(2) school years.

10(2) This section shall not apply until the effective date of
11the regulations implementing the performance matrix required
12under section 1731.2-A.

13(c) The department shall develop and issue a standard
14application form that multiple charter school organization
15applicants must submit to the department and to the local board
16of school directors of each school district that granted the
17initial charter of any charter school included in the proposed
18consolidation. The application form shall contain the following
19information:

20(1) The name of the multiple charter school organization.

21(2) The names of the charter schools seeking consolidation
22under this section.

23(3) A copy of the approved charter of each charter school
24seeking to consolidate under this section.

25(4) An organizational chart clearly presenting the proposed
26governance structure of the multiple charter school
27organization, including lines of authority and reporting between
28the board of trustees, chief administrator, administrators,
29staff and any educational management service provider that will
30play a role in providing management services to the charter

1schools under its jurisdiction.

2(5) A clear description of the roles and responsibilities
3for the board of trustees, chief administrator, administrators
4and any other entities, including a charter school foundation,
5shown in the organizational chart.

6(6) A clear description of the method for the appointment or
7election of members of the board of trustees.

8(7) Standards for board of trustees performance, including
9compliance with all applicable laws, regulations and terms of
10the charter.

11(8) Enrollment procedures for each individual charter school
12included in its charter.

13(9) Any other information as deemed necessary by the
14department.

15(d) A multiple charter school organization may:

16(1) Participate in the assessment system in the same manner
17in which a school district participates, with its individual
18charter schools participating in the assessment system in the
19same manner as individual schools within school districts. All
20data gathered for purposes of evaluation shall be gathered in
21the same manner in which data is gathered in the case of school
22districts and individual schools within school districts.
23Nothing in this paragraph shall alter the manner in which
24charter school performance on assessments is measured as
25required under the No Child Left Behind Act of 2001 (Public Law
26107-110, 115 Stat. 1425), or its successor Federal statute.

27(2) Add existing charter schools to its organization by
28obtaining the approval of the department and of the school
29district that granted the initial charter of each charter school
30proposed to be added under subsection (a)(1).

1(3) Allow students enrolled in an individual charter school
2to matriculate to another individual charter school under its
3oversight so as to complete a course of instruction in an
4educational institution from kindergarten through grade twelve
5or otherwise in the best interests of the student.

6(e) A multiple charter school organization shall be regarded
7as the holder of the charter of each individual charter school
8under its oversight and each previously or subsequently awarded
9charter shall be subject to nonrenewal or revocation by the
10local board of school directors that granted the initial charter
11in accordance with this act. The nonrenewal or revocation of the
12charter of an individual charter school under the oversight of a
13multiple charter school organization shall not affect the status
14of a charter awarded for any other individual charter school
15under the oversight of the multiple charter school organization.

16(f)  For purposes of this section, the term "charter school"
17shall include a regional charter school.

18Section 1731.1-A. Fund Balance Limits.--Fund balance limits
19shall be as follows:

20(1) For the 2013-2014 school year and each school year
21thereafter, a charter school entity shall not accumulate an
22unassigned fund balance greater than the charter school entity
23unassigned fund balance limit, which will be determined as
24follows:

25  26Charter School Entity 27Total Budgeted Expenditures	Maximum Unassigned Fund Balance as Percentage of Total Budgeted Expenditures
28Less than or equal to $11,999,999	12%
29Between $12,000,000 and $12,999,999	11.5%
30Between $13,000,000 and $13,999,999	11%
20130HB0618PN3891 -54-
1Between $14,000,000 and $14,999,999	10.5%
2Between $15,000,000 and $15,999,999	10%
3Between $16,000,000 and $16,999,999	9.5%
4Between $17,000,000 and $17,999,999	9%
5Between $18,000,000 and $18,999,999	8.5%
6Greater Than or Equal to $19,000,000	8%

7(2) Any unassigned fund balance in place on June 30, 2013,
8that exceeds the charter school entity unassigned fund balance
9limit shall be refunded on a pro rata basis within ninety (90)
10days to all school districts that paid tuition to the charter
11school entity on behalf of students enrolled in the 2011-2012
12and 2012-2013 school years. The funds in excess of the
13unassigned fund balance limit may not be used to pay bonuses to
14any administrator, board of trustees member, employe, staff
15member or contractor and may not be transferred to a charter
16school foundation. If a charter school entity uses funds in
17excess of the unassigned fund balance limit to pay bonuses to
18any administrator, board of trustees member, employee, staff
19member or contractor or transfers such funds to a charter school
20foundation, the charter school entity shall pay the department a
21penalty equal to one percent (1%) of its unassigned fund
22balance.

23(3) For the 2013-2014 school year and each school year
24thereafter, any unassigned fund balance in place on June 30,
252014, and on June 30 of each year thereafter in excess of the
26charter school entity unassigned fund balance limit shall be
27refunded on a pro rata basis within forty-five (45) days to all
28school districts that paid tuition to the charter school entity
29in the prior school year.

30(4) By September 30, 2013, and August 15 of each year

1thereafter, each charter school entity shall provide the
2department and all school districts that paid tuition to the
3charter school entity in the prior school year with information
4certifying compliance with this section. The information shall
5be provided in a form and manner prescribed by the department
6and shall include information on the charter school entity's
7estimated ending unassigned fund balance expressed as a dollar
8amount and as a percentage of the charter school entity's total
9budgeted expenditures for that school year.

10(5) As used in this section, "unassigned fund balance" shall
11mean that portion of the fund balance of a charter school entity
12or of a charter school foundation that provides funding or
13resources or otherwise serves to support the charter school
14entity, directly or through an affiliated entity, that is:

15(i) available for expenditure or not legally or otherwise
16segregated for a specific or tentative future use; and

17(ii) held in the General Fund accounts of the charter school
18entity or the charter school foundation.

19Section 1731.2-A. Performance Matrix.--The following shall
20apply:

21(1) Within eighteen (18) months of the effective date of
22this section, the State Board of Education shall develop a
23standard performance matrix to evaluate charter school entity
24performance and shall promulgate regulations pursuant to the act
25of June 25, 1982 (P.L.633, No.181), known as the "Regulatory
26Review Act," to implement this section.

27(2) The performance matrix may assess performance by
28utilizing objective criteria, including, but not limited to:
29student performance on assessments; annual growth as measured by
30the Pennsylvania Value-Added Assessment System; attendance;

1attrition rates; graduation rates; other standardized test
2scores; school safety; parent satisfaction; accreditation by a
3nationally recognized accreditation agency, including the Middle
4States Association of Colleges and Schools or another regional
5institutional accrediting agency recognized by the United States
6Department of Education or an equivalent federally recognized
7body for charter school education; and other measures of school
8quality, including measures for assessing teacher effectiveness.

9(2.1)  In developing the performance matrix, the State Board
10of Education shall determine an academic quality benchmark the
11satisfaction of which shall qualify a charter school entity for
12a ten (10) year renewal term pursuant to section 1720-A(a)(2) or
131745-A(f)(3). The academic quality benchmark shall be included
14in the regulations required under clause (1).

15(3) In developing the performance matrix, the State Board of
16Education may contract for consulting services with an entity
17that has experience in developing performance matrices if the
18services are procured through a competitive bidding process.

19(4) Neither the department nor any local board of school
20directors or other school district governing authority may
21develop a separate performance matrix for the evaluation of a
22charter school entity.

23(5) (i) A local board of school directors or other school
24district governing authority shall utilize the standard
25performance matrix as a primary factor in evaluating new and
26renewal charter school and regional charter school applicants
27and in annual monitoring and evaluation of charter schools and
28regional charter schools.

29(ii) The department shall utilize the standard performance
30matrix as a primary factor in evaluating new and renewal cyber

1charter school applicants, in evaluating consolidation
2applications under section 1729.2-A and in annual monitoring and
3evaluation of cyber charter schools.

4(6) (i) In developing the performance matrix and
5promulgating the regulations required under clause (1), the
6State Board of Education shall convene and consult with a
7Statewide advisory committee which shall consist of
8representatives of the department and a minimum of seven (7)
9representatives from charter schools, regional charter schools,
10cyber charter schools, school district personnel and
11institutions of higher education with experience in the
12oversight of charter schools. Members of the committee shall be
13selected to be representative of the urban, rural and suburban
14areas of this Commonwealth.

15(ii) The Statewide advisory committee required to be
16convened under subparagraph (i) shall be convened not later than
17thirty (30) days after the effective date of this section and
18shall meet regularly to fulfill requirements of this paragraph.

19(7) The department shall distribute the performance matrix
20to all school districts and shall publish the matrix on the
21department's publicly accessible Internet website.

22Section 16. Section 1732-A of the act, amended June 29,
232002 (P.L.524, No.88), is amended to read:

24Section 1732-A. Provisions Applicable to Charter Schools and
25Regional Charter Schools.--(a) Charter schools and regional
26charter schools shall be subject to the following:

27(1) Sections 108, 110, 111, 321, 325, 326, 327, 431, 436,
28443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753,
29[755,] 771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a),
301205.1, 1205.2, 1205.3, 1205.4, 1205.5, 1301, 1302, 1303, 1310,

11317, 1317.1, 1317.2, 1317.3, 1318, 1327, 1330, 1332, 1333,
21303-A, 1513, 1517, 1518, 1521, 1523, 1531, 1547, 2014-A,
3Article XIII-A and Article XIV.

4(2) Act of July 19, 1957 (P.L.1017, No.451), known as the
5"State Adverse Interest Act."

6(3) Act of July 17, 1961 (P.L.776, No.341), known as the
7"Pennsylvania Fair Educational Opportunities Act."

8(4) Act of July 19, 1965 (P.L.215, No.116), entitled "An act
9providing for the use of eye protective devices by persons
10engaged in hazardous activities or exposed to known dangers in
11schools, colleges and universities."

12(5) Section 4 of the act of January 25, 1966 (1965 P.L.1546,
13No.541), entitled "An act providing scholarships and providing
14funds to secure Federal funds for qualified students of the
15Commonwealth of Pennsylvania who need financial assistance to
16attend postsecondary institutions of higher learning, making an
17appropriation, and providing for the administration of this
18act."

19(6) Act of July 12, 1972 (P.L.765, No.181), entitled "An act
20relating to drugs and alcohol and their abuse, providing for
21projects and programs and grants to educational agencies, other
22public or private agencies, institutions or organizations."

23(7) Act of December 15, 1986 (P.L.1595, No.175), known as
24the "Antihazing Law."

25(8) 65 Pa.C.S. Ch. 7 (relating to open meetings).

26(9) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
27financial disclosure).

28(b) Charter schools and regional charter schools shall be
29subject to the following provisions of 22 Pa. Code:

30[Section 5.216 (relating to ESOL).

1Section 5.4 (relating to general policies).]

2(1) Chapter 4 (relating to academic standards and
3assessments).

4(2) Chapter 11 (relating to pupil attendance).

5(3) Chapter 12 (relating to students).

6(4) Section 32.3 (relating to assurances).

7(5) Section 121.3 (relating to discrimination prohibited).

8(6) Section 235.4 (relating to practices).

9(7) Section 235.8 (relating to civil rights).

10(8) Chapter 711 (relating to charter school services and
11programs for children with disabilities).

12(c) (1) The secretary may promulgate additional regulations
13relating to charter schools and regional charter schools.

14(2) The secretary shall have the authority and the
15responsibility to ensure that charter schools and regional
16charter schools comply with Federal laws and regulations
17governing children with disabilities. The secretary shall
18promulgate regulations to implement this provision.

19Section 17. The act is amended by adding a section to read:

20Section 1733-A. Effect on Existing Charter School
21Entities.--(a) Within one (1) year of the effective date of
22this section, a charter school entity established under section
231717-A, 1718-A or 1745-A prior to the effective date of this
24section shall amend the current charter through the amendment
25process under section 1720-A(c) or 1745-A(f)(5) as needed to
26reflect the requirements of this article. Any renewal that takes
27effect after June 30, 2013, shall be for the term specified
28under section 1720-A(a)(2) or 1745-A(f)(3).

29(b) A charter school entity approved after the effective
30date of this section shall be in full compliance with this

1article.

2(c) Within sixty (60) days of the effective date of this
3section, each charter school entity shall demonstrate, to the
4satisfaction of the local board of school directors or, in the
5case of a cyber charter school, to the satisfaction of the
6department, that the charter school entity is in compliance with
7sections 1332 and 1333, including the institution of truancy
8proceedings when required under section 1333.

9Section 18. Sections 1741-A(c), 1742-A, 1745-A and 1749-A(a)
10and (c) of the act, added June 29, 2002 (P.L.524, No.88), are
11amended to read:

12Section 1741-A. Powers and duties of department.

13* * *

14(c) Documents.--Documents of the appeal board shall be
15subject to the act of [June 21, 1957 (P.L.390, No.212), referred
16to as the Right-to-Know Law.] act of February 14, 2008 (P.L.6,
17No.3), known as the "Right-to-Know Law."

18Section 1742-A. Assessment and evaluation.

19The department shall:

20(1) Annually assess whether each cyber charter school is
21meeting the goals of its charter and is in compliance with
22the provisions of the charter and conduct a comprehensive
23review prior to granting a [five-year] renewal of the charter
24for the period specified in section 1745-A(f)(3).

25(2) Annually review each cyber charter school's
26performance on the Pennsylvania System of School Assessment
27test, standardized tests and other performance indicators to
28ensure compliance with 22 Pa. Code Ch. 4 (relating to
29academic standards and assessment) or subsequent regulations
30promulgated to replace 22 Pa. Code Ch. 4.

1(3) Have ongoing access to all records, instructional
2materials and student and staff records of each cyber charter
3school and to every cyber charter school facility to ensure
4the cyber charter school is in compliance with its charter
5and this subdivision.

6Section 1745-A. Establishment of cyber charter school.

7(a) Establishment.--A cyber charter school may be
8established by an individual; one or more teachers who will
9teach at the proposed cyber charter school; parents or guardians
10of students who will enroll in the cyber charter school; a
11nonsectarian college, university or museum located in this
12Commonwealth; a nonsectarian corporation not-for-profit as
13defined in 15 Pa.C.S. § 5103 (relating to definitions); a
14corporation, association or partnership; or any combination of
15the foregoing. Section 1327.1 shall not apply to a cyber charter
16school established under this subdivision.

17(b) Sectarian entities.--No cyber charter school shall be
18established or funded by and no charter shall be granted to a
19sectarian school, institution or other entity.

20(b.1) Local board of school directors or intermediate
21unit.--

22(1) A cyber charter school may be established by a local
23board of school directors or an intermediate unit if the
24procedures and requirements of this article are satisfied.

25(2) Nothing in this article shall be construed to
26preclude a school district or an intermediate unit from
27offering instruction via the Internet or other electronic
28means, except that the instruction shall not be recognized as
29a cyber charter school under this article unless the school
30district or intermediate unit establishes a cyber charter

1school pursuant to subsections (a) and (b.1)(1).

2(c) Attendance.--Attendance at a cyber charter school shall
3satisfy requirements for compulsory attendance, subject to
4penalties for violation of compulsory attendance requirements
5under section 1333.

6(d) Application.--An application to establish a cyber
7charter school shall be submitted to the department by October 1
8of the school year preceding the school year in which the cyber
9charter school proposes to commence operation.

10(e) Grant or denial.--Within 120 days of receipt of an
11application, the department shall grant or deny the application.
12The department shall review the application and shall hold at
13least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
14open meetings). At least 30 days prior to the hearing, the
15department shall publish in the Pennsylvania Bulletin and on the
16department's [World Wide Web site] publicly accessible Internet
17website notice of the hearing and the purpose of the
18application.

19(f) Evaluation criteria.--

20(1) A cyber charter school application submitted under
21this subdivision shall be evaluated by the department based
22on the following criteria:

23(i) The demonstrated, sustainable support for the
24cyber charter school plan by teachers, parents or
25guardians and students.

26(ii) The capability of the cyber charter school
27applicant, in terms of support and planning, to provide
28comprehensive learning experiences to students under the
29charter.

30(iii) The extent to which the programs outlined in

1the application will enable students to meet the academic
2standards under 22 Pa. Code Ch. 4 (relating to academic
3standards and assessment) or subsequent regulations
4promulgated to replace 22 Pa. Code Ch. 4.

5(iv) The extent to which the application meets the
6requirements of section 1747-A.

7(v) The extent to which the cyber charter school may
8serve as a model for other public schools.

9(2) Written notice of the action of the department shall
10be sent by certified mail to the applicant and published on
11the department's [World Wide Web site] publicly accessible
12Internet website. If the application is denied, the reasons
13for denial, including a description of deficiencies in the
14application, shall be clearly stated in the notice.

15(3) Upon approval of a cyber charter school application,
16a written charter shall be developed which shall contain the
17provisions of the charter application and be signed by the
18secretary and each member of the board of trustees of the
19cyber charter school. The charter, when duly signed, shall
20act as legal authorization of the establishment of a cyber
21charter school. The charter shall be legally binding on the
22department, the cyber charter school and its board of
23trustees. The charter [shall be for a period of no less than
24three years nor more than five years and may be renewed for a
25period of five years by the department.] term shall be as
26follows:

27(i)  An initial charter granted pursuant to this
28section shall be for a period of five years.

29(ii)  Prior to the effective date of the regulations
30implementing the performance matrix as required pursuant

1to section 1731.2-A, a charter may be renewed for five
2year periods upon reauthorization by the department.

3(iii)  Upon the effective date of the regulations
4implementing the performance matrix as required pursuant
5to section 1731.2-A, the following shall apply:

6(A)  For cyber charter schools that have
7satisfied the academic quality benchmark established
8by the State Board of Education pursuant to section
91731.2-A, a charter may be renewed for ten year
10periods upon reauthorization by the department.

11(B)  For cyber charter schools that have not
12satisfied the academic quality benchmark established
13by the State Board of Education pursuant to section
141731.2-A, a charter may be renewed for five year
15periods upon reauthorization by the department.

16(4) The decision of the department to deny an
17application may be appealed to the appeal board.

18(5) (i) A cyber charter school may request amendments
19to its approved written charter by filing with the
20department a written document describing the requested
21amendment.

22(ii) Within 20 days of its receipt of the request
23for an amendment, the department shall hold a public
24hearing on the requested amendment under 65 Pa.C.S. Ch. 7
25(relating to open meetings).

26(iii) Within 20 days after the hearing, the
27department shall grant or deny the requested amendment.
28Failure by the department to hold a public hearing and to
29grant or deny the amendment within the time period
30specified shall be deemed an approval.

1(iv) An applicant for an amendment shall have the
2right to appeal the denial of a requested amendment to
3the appeal board provided for under section 1721-A.

4(g) Denied application.--A cyber charter school applicant
5may revise and resubmit a denied application to the department.
6The department shall grant or deny the revised application
7within 60 days after its receipt.

8(h) Appeal.--If the department fails to hold the required
9public hearing or to approve or disapprove the charter, the
10applicant may file its application as an appeal to the appeal
11board. The appeal board shall review the application and make a
12decision to approve or disapprove the charter based on the
13criteria in subsection (f).

14Section 1749-A. Applicability of other provisions of this act
15and of other acts and regulations.

16(a) General requirements.--Cyber charter schools shall be
17subject to the following:

18(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
19436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741,
20752, 753, [755,] 771, 776, 777, 808, 809, 810, 1109, 1111,
211112(a), 1205.1, 1205.2, 1205.3, 1205.5, 1301, 1302, 1303,
221310, 1317, 1317.2, 1318, 1327, 1330, 1332, 1333, 1303-A,
231513, 1517, 1518, 1521, 1523, 1525, 1531, 1547, 1602-B, 1613-
24B, 1702-A, 1703-A, 1704-A, 1714-A, 1715-A, 1716-A, 1716.1-A,
251719-A, 1721-A, 1722-A, [1723-A(a) and (b)] 1723-A(a), (b)
26and (d), 1724-A, 1725-A, 1727-A, 1728-A(d), (e), (f), (g) and
27(h), 1729-A, 1729.1-A, 1730-A, 1731-A(a)(1) and (b), 1731.1-
28A, 1731.2-A, 1733-A and 2014-A and Articles [XII-A,] XIII-A
29and XIV.

30(1.1) Act of July 19, 1957 (P.L.1017, No.451), known as

1the State Adverse Interest Act.

2(2) The act of July 17, 1961 (P.L.776, No.341), known as
3the Pennsylvania Fair Educational Opportunities Act.

4(3) The act of July 19, 1965 (P.L.215, No.116), entitled
5"An act providing for the use of eye protective devices by
6persons engaged in hazardous activities or exposed to known
7dangers in schools, colleges and universities."

8(4) Section 4 of the act of January 25, 1966 (1965
9P.L.1546, No.541), entitled "An act providing scholarships
10and providing funds to secure Federal funds for qualified
11students of the Commonwealth of Pennsylvania who need
12financial assistance to attend postsecondary institutions of
13higher learning, making an appropriation, and providing for
14the administration of this act."

15(5) The act of July 12, 1972 (P.L.765, No.181) entitled
16"An act relating to drugs and alcohol and their abuse,
17providing for projects and programs and grants to educational
18agencies, other public or private agencies, institutions or
19organizations."

20(6) The act of December 15, 1986 (P.L.1595, No.175),
21known as the Antihazing Law.

22(7) 65 Pa.C.S. Ch. 7 (relating to open meetings).

23(8) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
24financial disclosure).

25* * *

26(c) Existing charter schools.--

27(1) The charter of a charter school approved under
28section 1717-A or 1718-A which provides instruction through
29the Internet or other electronic means shall remain in effect
30for the duration of the charter and shall be subject to the

1provisions of Subdivision (b).

2(2) In addition to subsections (a) and (b), the
3following provisions of this subdivision shall apply to a
4charter school approved under section 1717-A or 1718-A which
5provides instruction through the Internet or other electronic
6means:

7(i) Section 1743-A(c), (d), (e), (f), (g), (h) and
8(i).

9(ii) Section 1744-A.

10(iii) Section 1748-A.

11Section 19. The addition of section 1725-A(a)(2)(ii) shall
12expire at the end of the 2014-2015 school year.

13Section 20. This act shall take effect as follows:

14(1) The amendment or addition of the following
15provisions of the act shall take effect immediately:

16(i) Section 1704-A.

17(ii) Section 1725-A(a)(1), (2), (2.1), (3) and (4),
18(b), (c), (d), (e) and (f).

19(iii) Sections 1731.1-A.

20(iv) Section 1731.2-A.

21(v) Section 1732-A.

22(vi) Section 1749-A.

23(2) The amendment of section 1725-A(a)(5) and (6) of the
24act shall take effect in 90 days.

25(3) This section shall take effect immediately.

26(4) The remainder of this act shall take effect in 60
27days.

<-28Section 1. Section 1725-A of the act of March 10, 1949 
29(P.L.30, No.14), known as the Public School Code of 1949, is
30amended by adding a subsection to read:

1Section 1725-A. Funding for Charter Schools.--* * *

2(f) As the Commonwealth suspends or eliminates its
3contributions or payments to charter schools, regional charter
4schools or cyber charter schools under 24 Pa.C.S. § 8326
5(relating to contributions by the Commonwealth) or 8535
6(relating to payments to school entities by Commonwealth), in
7connection with the act of April 9, 1929 (P.L.343, No.176), 
8known as "The Fiscal Code," the department shall allocate up to
9thirty million dollars ($30,000,000) to school districts through
10a block grant program to be created for the 2014-2015 fiscal
11year which school districts may use for the purpose of
12offsetting cyber charter school expenses.

13Section 2. This act shall take effect July 1, 2014, or
14immediately, whichever is later.