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 charter schools, further providing
6for definitions, for school staff, for funding and for
7transportation; and, in reimbursements by Commonwealth and
8between school districts, repealing provisions relating to
9approved reimbursable annual rental for leases of buildings
10or portions of buildings for charter school use.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1. Section 1703-A of the act of March 10, 1949
14(P.L.30, No.14), known as the Public School Code of 1949,
15amended June 29, 2002 (P.L.524, No.88), is amended to read:

16Section 1703-A. Definitions.--As used in this article,

17"Adjusted average daily membership" shall mean the average
18daily membership of the prior school year, as defined in section
192501(20), minus the number of students attending a charter
20school, the number of students attending a cyber program and the
21number of students attending a prekindergarten program.

22"Appeal board" shall mean the State Charter School Appeal

1Board established by this article.

2"At-risk student" shall mean a student at risk of educational
3failure because of limited English proficiency, poverty,
4community factors, truancy, academic difficulties or economic
5disadvantage.

6"Charter school" shall mean an independent public school
7established and operated under a charter from the local board of
8school directors and in which students are enrolled or attend. A
9charter school must be organized as a public, nonprofit
10corporation. Charters may not be granted to any for-profit
11entity.

12"Chief executive officer" shall mean an individual appointed
13by the board of trustees to oversee and manage the operation of
14the charter school, but who shall not be deemed a professional
15staff member under this article.

16"Cyber charter school" shall mean an independent public
17school established and operated under a charter from the
18Department of Education and in which the school uses technology
19in order to provide a significant portion of its curriculum and
20to deliver a significant portion of instruction to its students
21through the Internet or other electronic means. A cyber charter
22school must be organized as a public, nonprofit corporation. A
23charter may not be granted to a for-profit entity.

24"Department" shall mean the Department of Education of the
25Commonwealth.

26"Learning center" shall mean a physical location provided by
27a cyber charter school that provides for opportunities for face-
28to-face interaction, testing or instruction, but does not
29provide a significant portion of its curriculum or deliver a
30significant portion of instructions to a majority of its

1students through the Internet or other electronic means.

2"Local board of school directors" shall mean the board of
3directors of a school district in which a proposed or an
4approved charter school is located.

5"Regional charter school" shall mean an independent public
6school established and operated under a charter from more than
7one local board of school directors and in which students are
8enrolled or attend. A regional charter school must be organized
9as a public, nonprofit corporation. Charters may not be granted
10to any for-profit entity.

11"School district of residence" shall mean the school district
12in this Commonwealth in which the parents or guardians of a
13child reside.

14"School entity" shall mean a school district, intermediate
15unit, joint school or area vocational-technical school.

16"Secretary" shall mean the Secretary of Education of the
17Commonwealth.

18"State board" shall mean the State Board of Education of the
19Commonwealth.

20Section 2. Section 1724-A(c) of the act, amended June 30,
212011 (P.L.112, No.24), is amended to read:

22Section 1724-A. School Staff.--* * *

23(c) All employes of a charter school shall be enrolled in
24the Public School Employees' Retirement System in the same
25manner as set forth in 24 Pa.C.S. § 8301(a) (relating to
26mandatory and optional membership) unless at the time of the
27application for the charter school the sponsoring district or
28the board of trustees of the charter school has a retirement
29program which covers the employes or the employe is currently
30enrolled in another retirement program. [The Commonwealth shall

1make contributions on behalf of charter school employes enrolled 
2in the Public School Employees' Retirement System.] The charter
3school shall be considered a school district and shall make
4payments by employers to the Public School Employees' Retirement 
5System and payments on account of Social Security as established
6under 24 Pa.C.S. Pt. IV (relating to retirement for school
7employees). [The market value/income aid ratio used in
8calculating payments as prescribed in this subsection shall be
9the market value/income aid ratio for the school district in
10which the charter school is located or, in the case of a
11regional charter school, shall be a composite market
12value/income aid ratio for the participating school districts as
13determined by the department.] Except as otherwise provided,
14employes of a charter school shall make regular member
15contributions as required for active members under 24 Pa.C.S.
16Pt. IV. If the employes of the charter school participate in
17another retirement plan, then those employes shall have no
18concurrent claim on the benefits provided to public school
19employes under 24 Pa.C.S. Pt. IV. For purposes of this
20subsection, a charter school shall be deemed to be a "public
21school" as defined in 24 Pa.C.S. § 8102 (relating to
22definitions).

23* * *

24Section 3. Section 1725-A(a)(2) of the act, amended June 29,
252002 (P.L.524, No.88), is amended to read:

26Section 1725-A. Funding for Charter Schools.--(a) Funding
27for a charter school shall be provided in the following manner:

28* * *

29(2) For non-special education students, [the]

30(i) a non-cyber charter school shall receive for each

1student enrolled no less than the budgeted total expenditure per
2adjusted average daily membership [of the prior school year, as
3defined in section 2501(20),] minus the budgeted expenditures of
4the district of residence for:

5(A) special education programs;

6(B) nonpublic school programs;

7(C) adult education programs;

8(D) community/junior college programs;

9(E) prekindergarten programs;

10(F)  student transportation services; [for special education
11programs; facilities acquisition, construction and improvement
12services; and other financing uses, including debt service and
13fund transfers as provided in the Manual of Accounting and
14Related Financial Procedures for Pennsylvania School Systems
15established by the department.]

16(G) cyber programs;

17(H) regular education payments to charter schools; and

18(I) no other deductions.

19(ii) a cyber charter school that does not utilize learning
20centers shall receive for each student enrolled no less than the
21budgeted total expenditure per adjusted average daily
22membership, minus the budgeted expenditures of the district of
23residence for:

24(A) special education programs;

25(B) nonpublic school programs;

26(C) adult education programs;

27(D) community/junior college programs;

28(E) prekindergarten programs;

29(F) student transportation services;

30(G) cyber programs;

1(H) regular education payments to charter schools;

2(I) an amount equal to thirty percent (30%) of the budgeted
3expenditures for facilities acquisition, construction and
4improvement services and other financing uses, including debt
5service and fund transfers as provided in the Manual of
6Accounting and Related Financial Procedures for Pennsylvania
7School Systems established by the department; and

8(J) no other deductions.

9(iii) a cyber charter school that utilizes learning centers
10shall receive for each student enrolled no less than the
11budgeted total expenditure per adjusted average daily
12membership, minus the budgeted expenditures of the district of
13residence for:

14(A) special education programs;

15(B) nonpublic school programs;

16(C) adult education programs;

17(D) community/junior college programs;

18(E) prekindergarten programs;

19(F) student transportation services;

20(G) cyber programs;

21(H) regular education payments to charter schools;

22(I) an amount equal to fifteen percent (15%) of the budgeted
23expenditures for facilities acquisition, construction and
24improvement services and other financing uses, including debt
25service and fund transfers as provided in the Manual of
26Accounting and Related Financial Procedures for Pennsylvania
27School Systems established by the department; and

28(J) no other deductions.

29(iv) [This amount] The amounts calculated under this clause
30shall be paid by the district of residence of each student.

1* * *

2Section 4. Section 1726-A(a) and (a.1) of the act, amended
3July 11, 2006 (P.L.1092, No.114) and July 9, 2008 (P.L.846,
4No.61), are amended to read:

5Section 1726-A. Transportation.--(a) Students who attend a
6charter school [located in their school district of residence],
7a regional charter school of which the school district is a part
8[or a charter school] or a cyber charter school learning center 
9located in their school district of residence or located outside
10district boundaries at a distance not exceeding ten (10) miles
11by the nearest public highway shall be provided free
12transportation to the charter school or cyber charter school 
13learning center by their school district of residence on such
14dates and periods that the charter school is in regular session
15whether or not transportation is provided on such dates and
16periods to students attending schools of the district.
17Transportation is not required for elementary students,
18including kindergarten students, residing within one and one-
19half (1.5) miles or for secondary students residing within two
20(2) miles of the nearest public highway from the charter school
21in which the students are enrolled unless the road or traffic
22conditions are such that walking constitutes a hazard to the
23safety of the students when so certified by the Department of
24Transportation, except that if the school district provides
25transportation to the public schools of the school district for
26elementary students, including kindergarten students, residing
27within one and one-half (1.5) miles or for secondary students
28residing within two (2) miles of the nearest public highway
29under nonhazardous conditions, transportation shall also be
30provided to charter schools under the same conditions. Districts

1providing transportation to a charter school outside the
2district and, for the 2007-2008 school year and each school year
3thereafter, districts providing transportation to a charter
4school within the district shall be eligible for payments under
5section 2509.3 for each public school student transported.

6(a.1) (1) The school district of residence shall also 
7provide free transportation as required for students to receive 
8services provided by intermediate units under section 1725-A(4).

9(2) In addition to any other requirements in this section,
10school districts of the first class shall provide transportation
11to students who attend a charter school if they are the same age
12or are enrolled in the same grade, grades or their grade
13equivalents as any of the students of the school district for
14whom transportation is provided under any program or policy to
15the schools of the school district.

16* * *

17Section 5. Section 2574.3 of the act, added June 22, 2001
18(P.L.530, No.35), is repealed:

19[Section 2574.3. Approved Reimbursable Annual Rental for
20Leases of Buildings or Portions of Buildings for Charter School
21Use.--(a) For leases of buildings or portions of buildings for
22charter school use which have been approved by the Secretary of
23Education on or after July 1, 2001, the Department of Education
24shall calculate an approved reimbursable annual rental charge.
25Approved reimbursable annual rental for such approved leases of
26buildings or portions of buildings for charter school use shall
27be the lesser of (i) the annual rental payable under the
28provisions of the approved lease agreement, or (ii) the product
29of the enrollment, as determined by the Department of Education,
30times one hundred sixty dollars ($160) for elementary schools,

1two hundred twenty dollars ($220) for secondary schools or two
2hundred seventy dollars ($270) for area vocational-technical
3schools. The Commonwealth shall pay annually for the school year
42001-2002 and each school year thereafter to each charter school
5which leases with the approval of the Department of Education
6buildings or portions of buildings for charter school use under
7these provisions an amount determined by multiplying the aid
8ratio of the charter school by the approved reimbursable annual
9rental.

10(b) Nothing in this section shall require a charter school
11that has been converted from an existing public school under
12Article XVII-A to make rental payments to a school district.]

13Section 6. This act shall take effect in 60 days.