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," providing for online education
6initiative; and establishing the Online Course Clearinghouse
7Restricted Account.

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

10Section 1.  The act of March 10, 1949 (P.L.30, No.14), known
11as the Public School Code of 1949, is amended by adding an
12article to read:

13ARTICLE XV-H

14ONLINE EDUCATION INITIATIVE

15Section 1501-H.  Definitions.

16The following words and phrases when used in this article
17shall have the meanings given to them in this section unless the
18context clearly indicates otherwise:

19"Account."  The Online Course Clearinghouse Restricted
20Account established under section 1502-H(f).

1"Clearinghouse."  The central online clearinghouse
2established under section 1502-H.

3"Department."  The Department of Education of the
4Commonwealth.

5"Home education program."  A program conducted in compliance
6with section 1327.1.

7"Institution of higher education."  The term includes any of
8the following:

9(1)  A community college operating under Article XIX-A.

10(2)  A university within the State System of Higher
11Education.

12(3)  The Pennsylvania State University.

13(4)  The University of Pittsburgh.

14(5)  Temple University.

15(6)  Lincoln University.

16(7)  Any other institution that is designated as "State-
17related" by the Commonwealth.

18(8)  The Thaddeus Stevens College of Technology.

19(9)  Any accredited private or independent college or
20university.

21(10)  Any private licensed school as defined in the act
22of December 15, 1986 (P.L.1585, No.174), known as the Private
23Licensed Schools Act.

24"Keystone Exam."  An assessment developed or caused to be
25developed by the department pursuant to 22 Pa. Code §4.51(f)
26(relating to State assessment system).

27"Nonpublic school."  A school, other than a public school,
28located within this Commonwealth where a Commonwealth resident
29may legally fulfill the compulsory school attendance
30requirements of this act and that meets the applicable

1requirements of Title VI of the Civil Rights Act of 1964 (Public
2Law 88-352, 78 Stat. 241).

3"Online course."  A course of study that uses technology in
4order to provide a significant portion of its curriculum and to
5deliver a significant portion of instruction to students through
6the Internet or other electronic means. The term shall include
7all services and materials related to such course.

8"Pennsylvania School Performance Profile."  The Pennsylvania
9School Performance Profile developed by the Department of
10Education pursuant to section 1123.

11"Provider."  An individual or a nonprofit or for-profit
12organization, business, institution of higher education or
13school entity which has submitted one or more online courses to
14the Department of Education for inclusion in the clearinghouse
15established under this article.

16"School entity."  A school district, joint school district,
17charter school, regional charter school, cyber charter school,
18intermediate unit or area vocational-technical school.

19"Secretary."  The Secretary of Education of the Commonwealth.

20Section 1502-H.  Clearinghouse for online course offerings.

21(a)  Duty to establish.--Within one year of the effective
22date of this section, the department shall establish a central
23online clearinghouse which shall at a minimum include an online
24database of online courses for students enrolled in grades six
25through twelve and which clearinghouse shall be accessible by
26school entities, nonpublic schools, home education programs and
27the general public. In establishing the clearinghouse the
28department shall:

29(1)  Create an online database that catalogs those online
30courses for which an application was approved under

1subsection (b) and make the database available to school
2entities, nonpublic schools, home education programs and the
3general public.

4(2)  Construct the database provided for in paragraph (1)
5in such a way as to:

6(i)  Provide information on each online course listed
7in the database, including, but not limited to, a
8description of the content and applicable grade levels of
9each online course.

10(ii)  Provide each school entity, nonpublic school or
11home education program which has utilized an online
12course from the clearinghouse the opportunity to present
13feedback and rate the online course. In providing
14feedback each school entity, nonpublic school or home
15education program may, with discretion and in compliance
16with all applicable Federal and State laws, share on the
17database personal comments received by the school entity,
18nonpublic school or home education program from parents
19and students about the online course.

20(iii)  Display feedback and a cumulative rating of an
21online course as a part of the information provided about
22the online course.

23(iv)  Facilitate communication between school
24entities, nonpublic schools or home education programs
25and providers of online courses cataloged in the
26clearinghouse to expedite the purchasing of those online
27courses.

28(3)  At least annually update the database provided for
29in paragraph (1) by adding or removing courses as necessary
30under this article.

1(4)  Collect application fees provided for in subsection
2(c) and deposit the fees into the account.

3(5)  Utilize the funds in the account, including interest
4on the funds, to pay expenses incurred by the department in
5carrying out its duties relating to the administration of the
6clearinghouse.

7(b)  Application development and approval process.--The
8department shall develop an application and an application
9process that specify the time, form and manner by which
10providers may submit their online course offerings to the
11department for inclusion in the clearinghouse. The department
12shall approve applications under one of the following
13procedures:

14(1)  In the case of an online course which does not
15provide instruction in a content area assessed by a Keystone
16Exam and which is not used to provide supplementary
17instruction relating to a Keystone Exam, a provider may
18submit an application to the department for approval of the
19online course through a certification process. The
20application for this process shall include:

21(i)  A notarized affidavit certifying that the online
22course being submitted for inclusion in the clearinghouse
23is aligned to the State academic standards for education.

24(ii) Evidence that the online course being submitted
25for inclusion in the clearinghouse fulfills at least one
26of the following criteria:

27(A)  has been approved by another state for use
28by its public schools;

29(B)  has been accredited by a national
30accreditation body recognized by the United States

1Department of Education;

2(C)  has been designed by an intermediate unit in
3this Commonwealth and is being utilized by a school
4entity; or

5(D)  has been designed by a school district,
6joint school district, charter school, regional
7charter school, cyber charter school or area
8vocational-technical school that:

9(I)  through the 2015-2016 school year,
10utilizes the online course or provides the online
11course to another school entity for its use; or

12(II)  beginning in the 2016-2017 school year
13and in each school year thereafter, has received
14a score on the Pennsylvania School Performance
15Profile of at least 80 for the school year
16preceding the application and utilizes the online
17course or provides the online course to another
18school entity for its use.

19(2) In the case of an online course which provides
20instruction in a content area assessed by a Keystone Exam or
21which is used to provide supplementary instruction relating
22to a Keystone Exam, a provider shall submit an application to
23the department for approval of the online course through a
24department review process. The department shall perform a
25review of the online course to confirm that the online course
26meets the following criteria:

27(i)  Is aligned to the State academic standards for
28education.

29(ii)  Provides a detailed and quality curriculum and
30accountability plan.

1(iii)  Includes an assessment component for
2determining student proficiency.

3(iv)  Is adapted to the age, development and needs of
4the students.

5(3)  In the case of an online course which does not
6provide instruction in a content area assessed by a Keystone
7Exam and which is not used to provide supplementary
8instruction relating to a Keystone Exam, a provider may
9voluntarily submit an application to the department for
10approval of the online course through the department review
11process established in paragraph (2).

12(c)  Fees, application review and approval.--The
13establishment of fees and the review and approval of
14applications shall be as follows:

15(1)  The department may establish a nonrefundable
16administrative fee not to exceed $75 for the purpose of
17reviewing each application submitted by a provider under
18subsection (b)(1).

19(2)  The department may establish a nonrefundable
20administrative fee not to exceed $750 for the purpose of
21reviewing each application submitted by a provider under
22subsection (b)(2) and (3).

23(3)  If, after a review of an application, the department
24determines that the application meets the applicable
25requirements under subsection (b), the department shall
26approve the application, notify the provider of the approval
27and include the online course in the database provided for
28under subsection (a)(1) until such time as the provider
29requests that the online course be removed or the department
30removes the online course under the provisions of paragraph

1(5).

2(4)  If, after a review of an application, the department
3determines that the application does not meet the applicable
4requirements under subsection (b), the department shall
5withhold approval of the application and notify the provider
6of the reason approval was withheld so that the provider may
7revise and resubmit the application. Any application that has
8been resubmitted for review shall be subject to the
9associated administrative fee authorized by this subsection.

10(5)  The department may revisit and review any approved
11application at any time and remove the associated online
12course from the database provided for under subsection (a)(1)
13if the department determines that:

14(i)  the information contained in the application was
15false or misleading or is no longer accurate;

16(ii)  the online course has been materially changed
17or revised in such a way that the approval previously
18granted for the online course should not apply and the
19provider of the online course has not submitted an
20application to the department seeking approval of the
21revisions to the online course in accordance with the
22application and fee requirements of this section; or

23(iii)  the standards applicable to the course have
24materially changed in such a way that the approval
25previously granted for the online course should not apply
26and the provider of the online course has not submitted
27an application to the department within 30 days seeking
28approval of the online course with revisions to address
29the revised standards in accordance with the application
30and fee requirements of this section.

1(d)  Appeal.--A determination by the department that an
2online course which provides instruction in a content area
3assessed by a Keystone Exam or which is used to provide
4supplementary instruction relating to a Keystone Exam does not
5meet the criteria under subsection (b)(2) shall be appealable
6under 2 Pa.C.S. (relating to administrative law and procedure).

7(e)  Contracts for the provision of courses cataloged in the
8clearinghouse.--The following shall apply to contracts entered
9into by school entities, nonpublic schools or home education
10programs and providers of online courses cataloged in the
11clearinghouse:

12(1)  The purchase price of an online course cataloged in
13the clearinghouse shall be determined by direct negotiations
14between a school entity, nonpublic school or home education
15program and a provider.

16(2)  A school entity, nonpublic school or home education
17program shall not be required to pay more than 40% of the
18total purchase price per participating student for an online
19course prior to a student's completion of the online course.
20Upon a student's completion of an online course, the school
21entity, nonpublic school or home education program shall pay
22the provider the remainder of the total purchase price per
23participating student for each student that completed the
24online course.

25(f)  Online Course Clearinghouse Restricted Account.--

26(1)  There is hereby established a restricted revenue
27account in the General Fund to be known as the Online Course
28Clearinghouse Restricted Account.

29(2)  The account shall consist of application fees
30collected under subsection (c), fines collected under section

11504-H and any interest generated by funds in the account.

2(3)  The funds in the account are hereby appropriated to
3the department on a continuing basis for the purposes of
4paying expenses incurred by the department in carrying out
5its duties relating to the administration of the
6clearinghouse under this article.

7Section 1503-H.  School entities.

8(a)  General rule.--Beginning in the 2015-2016 school year
9and continuing each school year thereafter, each school entity
10shall offer its students the opportunity to participate in
11online courses according to the following schedule:

12(1)  For the 2015-2016 school year through the 2017-2018
13school year, students in grades nine through twelve.

14(2)  For the 2018-2019 school year and each school year
15thereafter, students in grades six through twelve.

16(b)  School entity responsibilities.--In providing the
17opportunity required by subsection (a), a school entity may
18utilize any online course made available through a school entity
19through the clearinghouse or through any other source and shall:

20(1)  Establish policies and procedures for student
21eligibility and participation, including a policy on the
22selection of online courses made available to students by the
23school entity. The policies and procedures shall be made
24accessible to parents and students and posted on the school
25entity's publicly accessible Internet website.

26(2)  Ensure that parents and students are made aware of
27the opportunity for online learning under this article and
28make information about available online courses easily
29accessible to parents and students.

30Section 1504-H.  Penalties.

1(a)  Participation prohibited.--If the department determines
2that a provider intentionally submitted false or misleading
3information on an application, the provider shall be prohibited
4from participating in the clearinghouse for a period of five
5years.

6(b)  Fine.--In addition to the penalty provided under
7subsection (a), the department may also assess a provider a fine
8of up to $1,000 for each application on which the provider was
9found by the department to have intentionally submitted false or
10misleading information.

11(c)  Deposit of fines.--Any fines assessed in accordance with
12this section shall be deposited into the account.

13(d)  Appeal.--A determination by the department that a
14provider intentionally submitted false or misleading information
15on an application shall be appealable under 2 Pa.C.S. (relating
16to administrative law and procedure).

17Section 1505-H.  Reports.

18(a)  Report on grades nine through twelve.--The secretary
19shall submit an initial report to the Governor, the chairman and
20minority chairman of the Education Committee of the Senate and
21the chairman and minority chairman of the Education Committee of
22the House of Representatives no later than June 30, 2018. The
23report shall at a minimum include all of the following
24information as it pertains to students in grades nine through
25twelve:

26(1)  The number of students participating in online
27courses.

28(2)  The number of online courses available through the
29clearinghouse.

30(3)  A description of the types of online courses

1available through the clearinghouse.

2(4)  An assessment of the academic impact of online
3courses on the participating students.

4(5)  An assessment of the financial costs incurred by
5school districts in offering online courses to students.

6(6)  Recommendations for improving the clearinghouse and
7the requirement in section 1503-H relating to offering
8students the opportunity to participate in online courses.

9(b)  Report on grades six through eight.--The secretary shall
10submit a second report to the Governor, the chairman and
11minority chairman of the Education Committee of the Senate and
12the chairman and minority chairman of the Education Committee of
13the House of Representatives no later than June 30, 2020. The
14report shall at a minimum include all of information required
15under subsection (a) as it pertains to students in grades six
16through eight.

17Section 1506-H.  Construction.

18Nothing in this article shall be construed:

19(1)  To prevent a school entity from establishing and
20offering its own online course or program.

21(2)  To require a student to participate in an online
22course offered by a school entity in compliance with this
23article.

24(3)  To supersede or preempt the rights, remedies and
25procedures afforded to school employees or labor
26organizations under Federal or State law, including the act
27of July 23, 1970 (P.L.563, No.195), known as the Public
28Employe Relations Act, or any provision of a collective
29bargaining agreement negotiated between a school entity and
30an exclusive representative of the employees in accordance

1with that act.

2Section 1507-H. Regulations.

3The State Board of Education may promulgate regulations
4pursuant to the act of June 25, 1982 (P.L.633, No.181), known as
5the Regulatory Review Act, necessary to establish approval
6periods for courses approved under section 1502-H(b) and to
7implement this article.

8Section 2.  This act shall take effect in 60 days.