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

1Account established under section 1502-H(f).

2"Clearinghouse."  The central online clearinghouse
3established under section 1502-H.

4"Department."  The Department of Education of the
5Commonwealth.

6"Home education program."  A program conducted in compliance
7with section 1327.1.

8"Institution of higher education."  The term includes any of
9the following:

10(1)  A community college operating under Article XIX-A.

11(2)  A university within the State System of Higher
12Education.

13(3)  The Pennsylvania State University.

14(4)  The University of Pittsburgh.

15(5)  Temple University.

16(6)  Lincoln University.

17(7)  Any other institution that is designated as "State-
18related" by the Commonwealth.

19(8)  The Thaddeus Stevens College of Technology.

20(9)  Any accredited private or independent college or
21university.

22(10)  Any private licensed school as defined in the act
23of December 15, 1986 (P.L.1585, No.174), known as the Private
24Licensed Schools Act.

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

28"Nonpublic school."  A school, other than a public school,
29located within this Commonwealth where a Commonwealth resident
30may legally fulfill the compulsory school attendance

1requirements of this act and that meets the applicable
2requirements of Title VI of the Civil Rights Act of 1964 (Public
3Law 88-352, 78 Stat. 241).

4"Online course."  A course of study that uses technology in
5order to provide a significant portion of its curriculum and to
6deliver a significant portion of instruction to students through
7the Internet or other electronic means. The term shall include
8all services and materials related to such course.

9"Pennsylvania School Performance Profile."  The Pennsylvania
10School Performance Profile developed by the Department of
11Education pursuant to section 1123.

12"Provider."  An individual or a nonprofit or for-profit
13organization, business, institution of higher education or
14school entity which has submitted one or more online courses to
15the Department of Education for inclusion in the clearinghouse
16established under this article.

17"School entity."  A school district, joint school district,
18charter school, regional charter school, cyber charter school,
19intermediate unit or area vocational-technical school.

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

21Section 1502-H.  Clearinghouse for online course offerings.

22(a)  Duty to establish.--<-Within one year of the effective
23date of this section, the <-The department shall establish a
24central online clearinghouse which shall at a minimum include an
25online database of online courses for students enrolled in
26grades six through twelve and which clearinghouse shall be
27accessible by school entities, nonpublic schools, home education
28programs and the general public. In establishing the
29clearinghouse the department shall<-: adhere to the following
30implementation schedule:

1(1) From the date of establishment of the clearinghouse
2which shall be no later than the commencement of the 2015-
32016 school year and in each school year thereafter the
4clearinghouse shall offer online courses for all content
5areas assessed by a Keystone Exam, as well as online courses
6which provide supplementary instruction relating to a
7Keystone Exam, free of charge to school entities. In
8providing these online courses the department shall develop,
9cause to be developed or contract with a provider for online
10courses which meet the requirements in subsection (c)(2). The
11department may utilize any existing online courses it has
12already developed for content areas assessed by a Keystone
13Exam in meeting this requirement.

14(2) Beginning in the 2016-2017 school year and in each
15school year thereafter the clearinghouse shall offer those
16online courses from providers that have been approved under
17subsection (c) in addition to the courses required to be
18offered under paragraph (1). Online courses included in the
19clearinghouse from providers under this paragraph shall be
20subject to purchase under the provisions of subsection (f).

21(b) Responsibilities of the department.--The department
22shall:

23(1)  Create an online database that catalogs those online
24courses for which an application was approved under
25subsection <-(b) (c) and which the department shall develop,
26cause to be developed or contract for and make the database
27available to school entities, nonpublic schools, home
28education programs and the general public.

29(2)  Construct the database provided for in paragraph (1)
30in such a way as to:

1(i)  Provide information on each online course listed
2in the database, including, but not limited to, a
3description of the content and applicable grade levels of
4each online course.

5(ii)  Provide each school entity, nonpublic school or
6home education program which has utilized an online
7course from the clearinghouse the opportunity to present
8feedback and rate the online course <-which the school 
9entity, nonpublic school or home education program has 
10utilized. In providing feedback each school entity,
11nonpublic school or home education program may, with
12discretion and in compliance with all applicable Federal
13and State laws, share on the database personal comments
14received by the school entity, nonpublic school or home
15education program from parents and students about the
16online course.

17(iii)  Display feedback and a cumulative rating of an
18online course as a part of the information provided about
19the online course.

20(iv)  Facilitate communication between school
21entities, nonpublic schools or home education programs
22and providers of online courses cataloged in the
23clearinghouse to expedite the purchasing of those online
24courses.

25(3)  At least annually update the database provided for
26in paragraph (1) by adding or removing courses as necessary
27under this article.

28(4)  Collect application fees provided for in subsection
<-29(c) (d) and deposit the fees into the account.

30(5)  Utilize the funds in the account, including interest

1on the funds, to pay expenses incurred by the department in
2carrying out its duties relating to the administration of the
3clearinghouse.

4(6) Exp<-lore the possibility for Federal and private
5funding to support the clearinghouse.

6(7) Assist school districts which have been declared to
7be in financial recovery status under Article VI-A by
8facilitating the school districts' search for low-cost or no-
9cost online course options which could be used to satisfy the
10requirement in section 1503-H(a).

<-11(b) (c)  Application development and approval process.--The
12department shall develop an application and an application
13process that specify the time, form and manner by which
14providers may submit their online course offerings to the
15department for inclusion in the clearinghouse. The department
16shall approve applications under one of the following
17procedures:

18(1)  In the case of an online course which does not
19provide instruction in a content area assessed by a Keystone
20Exam and which is not used to provide supplementary
21instruction relating to a Keystone Exam, a provider may
22submit an application to the department for approval of the
23online course through a certification process. The
24application for this process shall include:

25(i)  A notarized affidavit certifying that the online
26course being submitted for inclusion in the clearinghouse
27is aligned to the State academic standards for education.

28(ii) Evidence that the online course being submitted
29for inclusion in the clearinghouse fulfills at least one
30of the following criteria:

1(A)  has been approved by another state for use
2by its public schools;

3(B)  has been <-developed by a provider that has 
4been accredited by a national accreditation body
5recognized by the United States Department of
6Education;

7(C)  has been designed by an intermediate unit in
8this Commonwealth and is being utilized by a school
9entity; or

10(D)  has been designed by a school district,
11joint school district, charter school, regional
12charter school, cyber charter school or area
13vocatio<-nal-technical school that:

14(I)  through the 2015-2016 school year,
15utilizes the online course or provides the online
16course to another school entity for its use; or

17(II)  beginning in the 2016-2017 school year
18and in each school year thereafter, has received
19a score on the Pennsylvania School Performance
20Profile of at least 80 for the school year
21preceding the application and utilizes the online
22course or provides the online course to another
23school entity for its use. v<-ocational-technical
24school that utilizes the online course or
25provides the online course to another school
26entity for its use.

27(2) In the case of an online course which provides
28instruction in a content area assessed by a Keystone Exam or
29which is used to provide supplementary instruction relating
30to a Keystone Exam, a provider shall submit an application to

1the department for approval of the online course through a
2department review process. The department shall perform a
3review of the online course to confirm that the online course
4meets the following criteria:

5(i)  Is aligned to the State academic standards for
6education.

7(ii)  Provides a detailed and quality curriculum and
8accountability plan.

9(iii)  Includes an assessment component for
10determining student proficiency.

11(iv)  Is adapted to the age, development and needs of
12the students.

13(3)  In the case of an online course which does not
14provide instruction in a content area assessed by a Keystone
15Exam and which is not used to provide supplementary
16instruction relating to a Keystone Exam, a provider may
17voluntarily submit an application to the department for
18approval of the online course through the department review
19process established in paragraph (2).

<-20(c) (d)  Fees, application review and approval.--The
21establishment of fees and the review and approval of
22applications shall be as follows:

23(1)  The department may establish a nonrefundable
24administrative fee not to exceed $75 for the purpose of
25reviewing each application submitted by a provider under
26subsection <-(b)(1) (c)(1).

27(2)  The department may establish a nonrefundable
28administrative fee not to exceed $750 for the purpose of
29reviewing each application submitted by a provider under
30subsection <-(b)(2) (c)(2) and (3).

1(3)  If, after a review of an application, the department
2determines that the application meets the applicable
3requirements under subsection <-(b) (c), the department shall
4approve the application, notify the provider of the approval
5and include the online course in the database provided for
6under subsection <-(a)(1) (b)(1) until such time as the
7provider requests that the online course be removed or the
8department removes the online course under the provisions of
9paragraph (5).

10(4)  If, after a review of an application, the department
11determines that the application does not meet the applicable
12requirements under subsection <-(b) (c), the department shall
13withhold approval of the application and notify the provider
14of the reason approval was withheld so that the provider may
15revise and resubmit the application. Any application that has
16been resubmitted for review shall be subject to the
17associated administrative fee authorized by this subsection.

18(5)  The department may revisit and review any approved
19application at any time and remove the associated online
20cou<-rse from the database provided for under subsection <-(a)(1)
21(b)(1)<- if the department determines that:

22(i)  the information contained in the application was
23false or misleading or is no longer accurate;

24(ii)  the online course has been materially changed
25or revised in such a way that the approval previously
26granted for the online course should not apply and the
27provider of the online course has not submitted an
28application to the department seeking approval of the
29revisions to the online course in accordance with the
30application and fee requirements of this section; or

1(iii)  the standards applicable to the course have
2materially changed in such a way that the approval
3previously granted for the online course should not apply
4and the provider of the online course has not submitted
5an application to the department within 30 days seeking
6approval of the online course with revisions to address
7the revised standards in accordance with the application
8and fee requirements of this section.

<-9(d) (e)  Appeal.--A determination by the department that an
10online course which provides instruction in a content area
11assessed by a Keystone Exam or which is used to provide
12supplementary instruction relating to a Keystone Exam does not
13meet the criteria under subsection <-(b)(2) (c)(2) shall be
14appealable under 2 Pa.C.S. (relating to administrative law and
15procedure).

<-16(e) (f)  Contracts for the provision of courses cataloged in
17the clearinghouse.--The following shall apply to contracts
18entered into by school entities, nonpublic schools or home
19education programs and providers of online courses cataloged in
20the clearinghouse:

21(1)  The purchase price <-and other payment and contract 
22terms of an online course cataloged in the clearinghouse
23shall be determined by direct negotiations between a school
24entity, nonpublic school or home education program and a
25provider.

26(2)  A school entity, nonpublic school or home education
27program shall not be required to pay more than <-40% 60% of the
28total purchase price per participating student for an online
29course prior to a student's completion of the online course.
30Upon a student's completion of an online course, the school

1entity, nonpublic school or home education program shall pay
2the provider the remainder of the total purchase price per
3participating student for each student that completed the
4online course.

<-5(3) Immediately upon commencing negotiations of the
6terms of a contract for an online course, a provider shall
7provide the school entity, nonpublic school or home education
8program with information regarding refund policies and the
9process for contesting payment amounts.

<-10(f) (g)  Online Course Clearinghouse Restricted Account.--

11(1)  There is hereby established a restricted revenue
12account in the General Fund to be known as the Online Course
13Clearinghouse Restricted Account.

14(2)  The account shall consist of application fees
15collected under subsection <-(c) (d), fines collected under
16section 1504-H and any interest generated by funds in the
17account.

18(3)  The funds in the account are hereby appropriated to
19the department on a continuing basis for the purposes of
20paying expenses incurred by the department in carrying out
21its duties relating to the administration of the
22clearinghouse under this article.

23Section 1503-H.  School entities.

24(a)  General rule.--Beginning in the <-2015-2016 2016-2017
25school year and continuing each school year thereafter, each
26school entity <-shall may offer its students the opportunity to
27participate in online courses<-. Each school entity that chooses
28to offer its students the opportunity to participate in online
29courses is encouraged to offer the online course opportunity,
30according to the following schedule:

1(1)  For the <-2015-2016 2016-2017 school year through the
22017-2018 <-2018-2019 school year, students in grades nine
3through twelve.

4(2)  For the <-2018-2019 2019-2020 school year and each
5school year thereafter, students in grades six through
6twelve.

7(b)  School entity responsibilities.--In providing the
8opportunity <-required by under subsection (a), a school entity
9may utilize any online course made available through a school
10entity through the clearinghouse or through any other source and
11shall:

<-12(1) Determine how instruction relating to an online
13course shall be delivered.

<-14(1) (2)  Establish policies and procedures for student
15eligibility and participation, including a policy on the
16selection of online courses made available to students by the
17school entity. The policies and procedures shall be made
18accessible to parents and students and posted on the school
19entity's publicly accessible Internet website.

<-20(2) (3)  Ensure that parents and students are made aware
21of the opportunity for online learning under this article and
22make information about available online courses easily
23accessible to parents and students.

24Section 1504-H.  Penalties.

25(a)  Participation prohibited.--If the department determines
26that a provider intentionally submitted false or misleading
27information on an application, the provider shall be prohibited
28from participating in the clearinghouse for a period of five
29years.

30(b)  Fine.--In addition to the penalty provided under

1subsection (a), the department may also assess a provider a fine
2of up to $1,000 for each application on which the provider was
3found by the department to have intentionally submitted false or
4misleading information.

5(c)  Deposit of fines.--Any fines assessed in accordance with
6this section shall be deposited into the account.

7(d)  Appeal.--A determination by the department that a
8provider intentionally submitted false or misleading information
9on an application shall be appealable under 2 Pa.C.S. (relating
10to administrative law and procedure).

11Section 1505-H.  Reports.

12(a)  Report on grades nine through twelve.--The secretary
13shall submit an initial report to the Governor, the chairman and
14minority chairman of the Education Committee of the Senate and
15the chairman and minority chairman of the Education Committee of
16the House of Representatives <-and post the report on the
17department's publicly accessible Internet website no later than
18June 30, 2018 <-2019. The report shall at a minimum include all of
19the following information as it pertains to students in grades
20nine through twelve:

21(1)  The number of students participating in online
22courses.

23(2)  The number of online courses available through the
24clearinghouse.

25(3)  A description of the types of online courses
26available through the clearinghouse.

27(4)  An assessment of the academic impact of online
28courses on the participating students.

29(5)  An assessment of the financial costs incurred by
30school districts in offering online courses to students.

1(6)  Recommendations for improving the clearinghouse and
2the <-requirement option in section 1503-H relating to offering
3students the opportunity to participate in online courses.

4(b)  Report on grades six through eight.--The secretary shall
5submit a second report to the Governor, the chairman and
6minority chairman of the Education Committee of the Senate and
7the chairman and minority chairman of the Education Committee of
8the House of Representatives <-and post the report on the
9department's publicly accessible Internet website no later than
10June 30, 2020 <-2021. The report shall at a minimum include all of
11information required under subsection (a) as it pertains to
12students in grades six through eight.

13Section 1506-H.  Construction.

14Nothing in this article shall be construed:

15(1)  To prevent a school entity from establishing and
16offering its own online course or program.

<-17(2) To prevent a school entity or school entity
18personnel from:

19(i) supplementing an online course;

20(ii) providing assistance, tutoring or enrichment to
21a student enrolled in an online course;

22(iii) using the content of an online course in
23instruction delivered by school district personnel; or

24(iv) monitoring a student's progress and attention
25to instruction in an online course.

<-26(2) (3)  To require a student to participate in an online
27course offered by a school entity in compliance with this
28article.

<-29(3) (4)  To supersede or preempt the rights, remedies and
30procedures afforded to school employees or labor

1organizations under Federal or State law, including the act
2of July 23, 1970 (P.L.563, No.195), known as the Public
3Employe Relations Act, or any provision of a collective
4bargaining agreement negotiated between a school entity and
5an exclusive representative of the employees in accordance
6with that act.

7Section 1507-H. Regulations.

8The State Board of Education may promulgate regulations
9pursuant to the act of June 25, 1982 (P.L.633, No.181), known as
10the Regulatory Review Act, necessary to establish approval
11periods for courses approved under section 1502-H(b) and to
12implement this article.

13Section 2.  This act shall take effect in 60 days.