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," further providing for funding for
6charter schools and for establishment of cyber charter
7schools.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. Section 1725-A(a) of the act of March 10, 1949 
11(P.L.30, No.14), known as the Public School Code of 1949,
12amended June 29, 2002 (P.L.524, No.88), is amended and the
13section is amended by adding a subsection to read:

14Section 1725-A. Funding for Charter Schools.--(a) Funding
15for a charter school shall be provided in the following manner:

16(1) [There] Except as provided in subsection (a.1) there
17shall be no tuition charge for a resident or nonresident student
18attending a charter school.

19(2) For non-special education students, the charter school
20shall receive for each student enrolled no less than the

1budgeted total expenditure per average daily membership of the
2prior school year, as defined in section 2501(20), minus the
3budgeted expenditures of the district of residence for nonpublic
4school programs; adult education programs; community/junior
5college programs; student transportation services; for special
6education programs; facilities acquisition, construction and
7improvement services; and other financing uses, including debt
8service and fund transfers as provided in the Manual of
9Accounting and Related Financial Procedures for Pennsylvania
10School Systems established by the department. This amount shall
11be paid by the district of residence of each student.

12(3) For special education students, the charter school shall
13receive for each student enrolled the same funding as for each
14non-special education student as provided in clause (2), plus an
15additional amount determined by dividing the district of
16residence's total special education expenditure by the product
17of multiplying the combined percentage of section 2509.5(k)
18times the district of residence's total average daily membership
19for the prior school year. This amount shall be paid by the
20district of residence of each student.

21(4) A charter school may request the intermediate unit in
22which the charter school is located to provide services to
23assist the charter school to address the specific needs of
24exceptional students. The intermediate unit shall assist the
25charter school and bill the charter school for the services. The
26intermediate unit may not charge the charter school more for any
27service than it charges the constituent districts of the
28intermediate unit.

29(5) Payments shall be made to the charter school in twelve
30(12) equal monthly payments, by the fifth day of each month,

1within the operating school year. A student enrolled in a
2charter school shall be included in the average daily membership
3of the student's district of residence for the purpose of
4providing basic education funding payments and special education
5funding pursuant to Article XXV. If a school district fails to
6make a payment to a charter school as prescribed in this clause,
7the secretary shall deduct the estimated amount, as documented
8by the charter school, from any and all State payments made to
9the district after receipt of documentation from the charter
10school.

11(6) Within thirty (30) days after the secretary makes the
12deduction described in clause (5), a school district may notify
13the secretary that the deduction made from State payments to the
14district under this subsection is inaccurate. The secretary
15shall provide the school district with an opportunity to be
16heard concerning whether the charter school documented that its
17students were enrolled in the charter school, the period of time
18during which each student was enrolled, the school district of
19residence of each student and whether the amounts deducted from
20the school district were accurate.

21(a.1) If the student's school district or intermediate unit
22operates a cyber charter school and the student attends another
23cyber charter school, neither the Commonwealth nor the school
24district shall be required to provide funding under this
25section. The student may be charged tuition by the cyber charter
26school under section 2561.

27* * *

28Section 2. Section 1745-A(a) of the act, added June 29, 2002 
29(P.L.524, No.88), is amended to read:

30Section 1745-A. Establishment of cyber charter school.

1(a) Establishment.--A cyber charter school may be
2established by a school entity; an individual; one or more
3teachers who will teach at the proposed cyber charter school;
4parents or guardians of students who will enroll in the cyber
5charter school; a nonsectarian college, university or museum
6located in this Commonwealth; a nonsectarian corporation not-
7for-profit as defined in 15 Pa.C.S. § 5103 (relating to
8definitions); a corporation, association or partnership; or any
9combination of the foregoing. Section 1327.1 shall not apply to
10a cyber charter school established under this subdivision.

11* * *

12Section 3. This act shall take effect in 60 days.