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," extensively revising charter school 
6provisions.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Section 1703-A of the act of March 10, 1949
10(P.L.30, No.14), known as the Public School Code of 1949,
11amended June 29, 2002 (P.L.524, No.88), is amended to read:

12Section 1703-A. Definitions.--As used in this article,

13"Administrator" shall include an employe of a charter school
14or cyber charter school, including the chief administrator of a
15charter school or cyber charter school and any other employe,
16who by virtue of the employe's position is responsible for
17taking official action of a nonministerial nature with regard to
18contracting or procurement, administering or monitoring grants
19or subsidies, managing or regulating staff, student and school
20activities or any activity where the official action has an

1economic impact of greater than a de minimis nature on the
2interests of any person.

3"Appeal board" shall mean the State Charter School Appeal
4Board established by this article.

5"Assessment" shall mean the Pennsylvania System of School
6Assessment test, the Keystone Exam or another test established
7by the State board to meet the requirements of section 2603-
8B(d)(10)(i) and required under the No Child Left Behind Act of
92001 (Public Law 107-110, 115 Stat. 1425) or its successor
10Federal statute.

11"At-risk student" shall mean a student at risk of educational
12failure because of limited English proficiency, poverty,
13community factors, truancy, academic difficulties or economic
14disadvantage.

15"Charter school" shall mean an independent public school
16established and operated under a charter from the local board of
17school directors or the governing body of an institution of 
18higher education and in which students are enrolled or attend. A
19charter school must be organized as a public, nonprofit
20corporation. Charters may not be granted to any for-profit
21entity.

22"Charter school entity" shall mean a charter school, regional
23charter school or cyber charter school.

24"Charter school foundation" shall mean a nonprofit
25organization, as defined under section 501(c)(3) of the Internal
26Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
27that provides funding, resources or otherwise serves to support
28a charter school or cyber charter school, either directly or
29through an affiliated entity.

30"Chief administrator" shall mean an individual appointed by a

1board of trustees to oversee and manage the operation of a
2charter school or cyber charter school. The term shall not
3include a professional staff member under this article.

4["Chief executive officer" shall mean an individual appointed
5by the board of trustees to oversee and manage the operation of
6the charter school, but who shall not be deemed a professional
7staff member under this article.]

8"Cyber charter school" shall mean an independent public
9school established and operated under a charter from the
10Department of Education and in which the school uses technology
11in order to provide a significant portion of its curriculum and
12to deliver a significant portion of instruction to its students
13through the Internet or other electronic means. A cyber charter
14school must be organized as a public, nonprofit corporation. A
15charter may not be granted to a for-profit entity.

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

18"Educational management service provider" shall mean a for-
19profit education management organization, nonprofit charter
20management organization, school design provider, business
21manager or any other partner entity with which a board of
22trustees of a charter school or cyber charter school contracts
23to provide educational design, business services, comprehensive
24management or personnel functions or to implement the charter.
25The term shall not include a charter school foundation.

26"Governing board of an institution of higher education" shall
27mean an institution of higher education subject to Article XX-C
28which elects by affirmative vote of a majority of all members to
29become an authorizer of charter schools and shall assume the
30same powers and duties as a local board of school directors

1under this article. The term does not include a governing board
2of an institution of higher education that does not vote
3affirmatively to become an authorizer.

4"Immediate family member" shall mean a parent, spouse, child,
5brother or sister.

6"Local board of school directors" shall mean the board of
7directors of a school district in which a proposed or an
8approved charter school is located.

9"Nonrelated" shall mean an individual who is not an immediate
10family member.

11"Regional charter school" shall mean an independent public
12school established and operated under a charter from more than
13one local board of school directors and in which students are
14enrolled or attend. A regional charter school must be organized
15as a public, nonprofit corporation. Charters may not be granted
16to any for-profit entity.

17"Right-to-Know Law" shall mean the act of February 14, 2008
18(P.L.6, No.3), known as the "Right-to-Know Law."

19"School district of residence" shall mean the school district
20in this Commonwealth in which [the parents or guardians of a
21child reside] a child resides as determined under section 1302.

22"School entity" shall mean a school district, intermediate
23unit, joint school or area vocational-technical school.

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

26"State board" shall mean the State Board of Education of the
27Commonwealth.

28Section 2. Section 1715-A of the act, amended or added June
2919, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is
30amended to read:

1Section 1715-A. Charter School Requirements.--(a) Charter
2schools shall be required to comply with the following
3provisions:

4(1) Except as otherwise provided in this article, a charter
5school is exempt from statutory requirements established in this
6act, from regulations of the State board and the standards of
7the secretary not specifically applicable to charter schools.
8Charter schools are not exempt from statutes applicable to
9public schools other than this act.

10(2) A charter school shall be accountable to the parents,
11the public and the Commonwealth, with the delineation of that
12accountability reflected in the charter. Strategies for
13meaningful parent and community involvement shall be developed
14and implemented by each school.

15(3) A charter school shall not unlawfully discriminate in
16admissions, hiring or operation.

17(4) A charter school shall be nonsectarian in all
18operations.

19(5) (i) A charter school shall not provide any religious
20instruction, nor shall it display religious objects and symbols
21on the premises of the charter school. The charter school shall 
22provide for discrete and separate entrances to buildings 
23utilized for school purposes only.

24(ii) It shall not be a violation of this section for a
25charter school to utilize a sectarian facility:

26(A) if the religious objects and symbols within the portions
27of the facility utilized by the school are covered or removed to
28the extent reasonably feasible; or

29(B) in which the unused portion of the facility or its
30common areas contain religious symbols and objects.

1(6) A charter school shall not advocate unlawful behavior.

2(7) A charter school shall only be subject to the laws and
3regulations as provided for in section 1732-A, or as otherwise
4provided for in this article.

5(8) (i) A charter school shall participate in [the
6Pennsylvania State Assessment System as provided for in 22 Pa.
7Code Ch. 5 (relating to curriculum), or subsequent regulations
8promulgated to replace 22 Pa. Code Ch. 5,] assessments in the
9manner in which the school district in which the charter school
10is located is scheduled to participate.

11(ii) A charter school shall be treated in the same manner as
12a school district for the purposes of measuring the charter
13school's adequate yearly progress under the No Child Left Behind
14Act of 2001 or any successor statute.

15(9) A charter school shall provide a minimum of one hundred
16eighty (180) days of instruction or nine hundred (900) hours per
17year of instruction at the elementary level, or nine hundred
18ninety (990) hours per year of instruction at the secondary
19level. Nothing in this clause shall preclude the use of computer
20and satellite linkages for delivering instruction to students.

21(10) Boards of trustees and contractors of charter schools
22shall be subject to the following statutory requirements
23governing construction projects and construction-related work:

24(i) The following provisions of this act:

25(A) Sections 751 and 751.1.

26(B) Sections 756 and 757 insofar as they are consistent with
27the act of December 20, 1967 (P.L.869, No.385), known as the
28"Public Works Contractors' Bond Law of 1967."

29(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
30entitled "An act regulating the letting of certain contracts for

1the erection, construction, and alteration of public buildings."

2(iii) The act of August 11, 1961 (P.L.987, No.442), known as
3the "Pennsylvania Prevailing Wage Act."

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

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

7(11) Trustees of a charter school shall be public
8officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to 
9ethics standards and financial disclosure) and shall file a 
10statement of financial interests for the preceding calendar year 
11with the State Ethics Commission and the local board of school 
12directors or the governing body of an institution of higher 
13education or, in the case of a cyber charter school, the 
14department, not later than May 1 of each year that members hold 
15the position and of the year after a member leaves the position. 
16All members of the board of trustees of a charter school shall 
17take the oath of office as required under section 321 before 
18entering upon the duties of their office.

19[(12) A person who serves as an administrator for a charter
20school shall not receive compensation from another charter
21school or from a company that provides management or other
22services to another charter school. The term "administrator"
23shall include the chief executive officer of a charter school
24and all other employes of a charter school who by virtue of
25their positions exercise management or operational oversight
26responsibilities. A person who serves as an administrator for a
27charter school shall be a public official under 65 Pa.C.S. Ch.
2811 (relating to ethics standards and financial disclosure). A
29violation of this clause shall constitute a violation of 65
30Pa.C.S. § 1103(a) (relating to restricted activities), and the

1violator shall be subject to the penalties imposed under the
2jurisdiction of the State Ethics Commission.]

3(b) An individual who serves as an administrator for a
4charter school shall be a public employe for the purposes of 65
5Pa.C.S. Ch. 11 and shall file a statement of financial interests
6for the preceding calendar year with the board of trustees not
7later than May 1 of each year that the person holds the position
8and of the year after the person leaves the position.

9(c) (1) No individual who serves as an administrator for a
10charter school may receive compensation from another charter
11school, cyber charter school or from an educational management
12service provider, unless:

13(i) The administrator has submitted a sworn statement to the
14charter school board of trustees and the sworn statement details
15the work for the other entity and includes the projected number
16of hours, rate of compensation and projected duration.

17(ii) The board of trustees has reviewed the sworn statement
18under subclause (i) and agreed by resolution to grant permission
19to the administrator.

20(2) A copy of the sworn statement under clause (1)(i) and
21the resolution by the board of trustees granting the permission
22shall be kept on file with the charter school and the board of
23local school directors.

24(3) No administrator of a charter school or immediate family
25member may serve as a voting member of the board of trustees of
26that individual's charter school.

27(4) (i) No administrator of a charter school may
28participate in the selection, award or administration of a
29contract if the person has a conflict of interest as that term
30is defined in 65 Pa.C.S. § 1102 (relating to definitions).

1(ii) An administrator who knowingly violates this clause
2commits a violation of 65 Pa.C.S. § 1103(a) (relating to
3restricted activities) and shall be subject to the penalties
4imposed under the jurisdiction of the State Ethics Commission.

5(iii) Any contract made in violation of this clause shall be
6voidable by the board of trustees of the charter school.

7(5) An administrator shall be immediately dismissed upon
8conviction for an offense graded as a felony, an infamous crime,
9an offense pertaining to fraud, theft or mismanagement of public
10funds or any crime involving moral turpitude.

11(d) The board of trustees of a charter school entity shall
12supply the grantor of the charter school entity and the
13secretary a list of the amount of rental payments, which are
14guarantees for school building debt or bonds that become due
15during the fiscal year together with the amount paid on each
16item of indebtedness. Any charter school entity that elects to
17issue debt shall hold in escrow an amount sufficient to pay the
18annual amount of the sum of the principal maturing or subject to
19mandatory redemption and interest owing by the charter school
20entity or sinking fund deposit due by the charter school entity.

21(e) Fund balance limits shall be as follows:

22(1) For the 2013-2014 school year and each school year
23thereafter, a charter school entity shall not accumulate an
24unassigned fund balance greater than the charter school entity
25fund balance limit, which will be determined as follows:

26  27Charter School Entity 28Total Budgeted Expenditures	Maximum Unassigned Fund Balance as Percentage of Total Budgeted Expenditures
29Less than or equal to $11,999,999	12%
30Between $12,000,000 and $12,999,999	11.5%
20130SB1085PN1356 -9-
1Between $13,000,000 and $13,999,999	11%
2Between $14,000,000 and $14,999,999	10.5%
3Between $15,000,000 and $15,999,999	10%
4Between $16,000,000 and $16,999,999	9.5%
5Between $17,000,000 and $17,999,999	9%
6Between $18,000,000 and $18,999,999	8.5%
7Greater Than or Equal to $19,000,000	8%

8(2) Any unassigned fund balance in place on June 30, 2014,
9that exceeds the charter school entity fund balance limit shall
10be refunded on a pro rata basis within 90 days to all school
11districts that paid tuition to the charter school entity on
12behalf of students enrolled in the 2012-2013 and 2013-2014
13school years. The funds may not be used to pay bonuses to any
14administrator, board of trustee member, employe, staff or
15contractor and may not be transferred to a charter school
16foundation.

17(3) For the 2014-2015 school year and each school year
18thereafter, any unassigned fund balance in excess of the charter
19school entity fund balance limit shall be refunded on a pro rata
20basis to all school districts that paid tuition to the charter
21school entity in the prior school year.

22(4) By August 15, 2014, and August 15 of each year
23thereafter, each charter school entity shall provide its grantor
24and the board with information certifying compliance with this
25section. The information shall be provided in a form and manner
26prescribed by the board and shall include information on the
27charter school entity's estimated ending unassigned fund balance
28expressed as a dollar amount and as a percentage of the charter
29school entity's total budgeted expenditures for that school
30year.

1Section 3. Section 1716-A(c) of the act, added June 19, 1997
2(P.L.225, No.22), is amended and the section is amended by
3adding subsections to read:

4Section 1716-A. Powers of Board of Trustees.--* * *

5(b.1) (1) For a charter school chartered after the
6effective date of this subsection, an individual shall be
7prohibited from serving as a voting member of the board of
8trustees of the charter school if the individual or an immediate
9family member receives compensation from or is employed by or is
10a board member of the local board of school directors or the
11governing board of an institution of higher education who
12participated in the initial review, approval, oversight,
13evaluation or renewal process of the charter school chartered by
14that board.

15(2) An employe of the school district or the governing board
16of an institution of higher education that chartered the charter
17school may serve as a member of the board of trustees without
18voting privileges.

19(b.2) (1) No member of the board of trustees of a charter
20school may participate in the selection, award or administration
21of any contract if the member has a conflict of interest as that
22term is defined in 65 Pa.C.S. § 1102 (relating to definitions).

23(2) Any member of the board of trustees who in the discharge
24of the person's official duties would be required to vote on a
25matter that would result in a conflict of interest shall abstain
26from voting and follow the procedures required under 65 Pa.C.S.
27§ 1103(j) (relating to restricted activities).

28(3) A member of the board of trustees who knowingly violates
29this subsection commits a violation of 65 Pa.C.S. § 1103(a) and
30shall be subject to the penalties imposed under the jurisdiction

1of the State Ethics Commission.

2(4) A contract made in violation of this subsection shall be
3voidable by a court of competent jurisdiction, if the suit is
4commenced within ninety (90) days of the making of the contract.

5(5) No member of the board of trustees of a charter school
6shall be compensated for duties on the board.

7(b.3) A member of the board of trustees of a charter school
8shall be automatically disqualified and immediately removed from
9the board upon conviction for an offense graded as a felony, an
10infamous crime, an offense pertaining to fraud, theft or
11mismanagement of public funds, any offense pertaining to his
12official capacity as a board member or any crime involving moral
13turpitude.

14(c) The board of trustees shall comply with [the act of July
153, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
16Pa.C.S. Ch. 7 (relating to open meetings).

17(d) (1) (i) The board of trustees of a charter school
18shall consist of a minimum of five (5) nonrelated voting
19members.

20(ii) If a charter school has fewer than five (5) nonrelated
21voting members serving on its board on the effective date of
22this subsection, the charter school shall, within sixty (60)
23days, appoint additional members to the board to meet the
24minimum requirements of this section.

25(2) Within one (1) year of the effective date of this
26subsection, at least one (1) member of the board of trustees of
27a charter school shall be a parent of a child currently
28attending the charter school. The board member shall be eligible
29to serve only so long as the child attends the charter school.

30(e) (1) A majority of the voting members of the board of

1trustees shall constitute a quorum. If less than a majority is
2present at any meeting, no business may be transacted at the
3meeting.

4(2) The affirmative vote of a majority of all the voting
5members of the board of trustees, duly recorded, shall be
6required in order to take action on the subjects enumerated
7under subsection (a).

8(f) (1) In any case where the board of trustees of a
9charter school fails to pay or to provide for for the payment
10of:

11(i) any indebtedness at date of maturity or date of
12mandatory redemption or on any sinking fund deposit date; or

13(ii) any interest due on such indebtedness on any interest
14payment date or on any sinking fund deposit date in accordance
15with the schedule under which the bonds were issued.

16The bank or trustee for the bonds shall notify the board of
17charter school trustees of its obligation and shall immediately
18notify the grantor of the charter school and the secretary.

19(2) The secretary shall withhold any appropriation due the
20charter school in any amount necessary to fully fund the amount
21held in escrow by the charter school which shall be equal to the
22sum of the principal amount maturing or subject to mandatory
23redemption and interest owing by the charter school or sinking
24fund deposit due by such charter school and shall require pay
25over of the amount withheld to the bank or trustee acting as the
26sinking fund depositary for the bond issue from the escrow
27account.

28(3) Payments made pursuant to this article shall not be
29given priority over payments required pursuant to sections 633
30and 785 and 53 Pa.C.S. § 8125(b) (relating to security for tax

1anticipation notes and sinking fund), or an agreement pursuant
2to which the board is required to make payment to a holder of
3debt issued by or on behalf of a school entity.

4Section 4. Sections 1717-A(c), (d), (e), (f) and (i) and
51719-A of the act, added June 19, 1997 (P.L.225, No.22), are
6amended to read:

7Section 1717-A. Establishment of Charter School.--* * *

8(c) An application to establish a charter school shall be
9submitted to the local board of school directors of the district
10where the charter school will be located or the governing board 
11of an institution of higher education by [November 15] October 1
12of the school year preceding the school year in which the
13charter school will be established except that for a charter
14school beginning in the 1997-1998 school year, an application
15must be received by July 15, 1997. In the 1997-1998 school year
16only, applications shall be limited to recipients of fiscal year
171996-1997 Department of Education charter school planning
18grants.

19(d) Within forty-five (45) days of receipt of an
20application, the local board of school directors in which the
21proposed charter school is to be located or the governing board 
22of an institution of higher education shall hold at least one
23public hearing on the provisions of the charter application,
24under [the act of July 3, 1986 (P.L.388, No.84), known as the
25"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
26At least forty-five (45) days must transpire between the first
27public hearing and the final decision of the board on the
28charter application except that for a charter school beginning
29in the 1997-1998 school year, only thirty (30) days must
30transpire between the first public hearing and the final

1decision of the board.

2(e) (1) Not later than seventy-five (75) days after the
3first public hearing on the application, the local board of
4school directors or the governing board of an institution of 
5higher education shall grant or deny the application. For a
6charter school beginning in the 1997-1998 school year, the local
7board of school directors shall grant or deny the application no
8later than sixty (60) days after the first public hearing.

9(2) A charter school application submitted under this
10article shall be evaluated by the local board of school
11directors or the governing board of an institution of higher 
12education based on criteria, including, but not limited to, the
13following:

14(i) The demonstrated, sustainable support for the charter
15school plan by teachers, parents, other community members and
16students, including comments received at the public hearing held
17under subsection (d).

18(ii) The capability of the charter school applicant, in
19terms of support and planning, to provide comprehensive learning
20experiences to students pursuant to the adopted charter.

21(iii) The extent to which the application considers the
22information requested in section 1719-A and conforms to the
23legislative intent outlined in section 1702-A.

24[(iv) The extent to which the charter school may serve as a
25model for other public schools.]

26(3) The local board of school directors, in the case of an
27existing school being converted to a charter school, shall
28establish the alternative arrangements for current students who
29choose not to attend the charter school.

30(4) A charter application shall be deemed approved by the

1local board of school directors of a school district or the 
2governing board of an institution of higher education upon
3affirmative vote by a majority of all the directors. Formal
4action approving or denying the application shall be taken by
5the local board of school directors or the governing board of an 
6institution of higher education at a public meeting, with notice
7or consideration of the application given by the board, under
8[the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

9(5) Written notice of the board's action shall be sent to
10the applicant, the department and the appeal board. If the
11application is denied, the reasons for the denial, including a
12description of deficiencies in the application, shall be clearly
13stated in the notice sent by the local board of school directors
14or the governing board of an institution of higher education to
15the charter school applicant.

16(f) At the option of the charter school applicant, a denied
17application may be revised and resubmitted to the local board of
18school directors or the governing board of an institution of 
19higher education. Following the appointment and confirmation of
20the Charter School Appeal Board under section 1721-A, the
21decision of the local board of school directors or the governing 
22board of an institution of higher education may be appealed to
23the appeal board. When an application is revised and resubmitted
24to the local board of school directors or the governing board of 
25an institution of higher education, the board may schedule
26additional public hearings on the revised application. The board
27shall consider the revised and resubmitted application at the
28first board meeting occurring at least forty-five (45) days
29after receipt of the revised application by the board. For a
30revised application resubmitted for the 1997-1998 school year,

1the board shall consider the application at the first board
2meeting occurring at least thirty (30) days after its receipt.
3The board shall provide notice of consideration of the revised
4application under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7. No
5appeal from a decision of a local school board may be taken
6until July 1, 1999.

7* * *

8(i) (1) The appeal board shall have the exclusive review of
9an appeal by a charter school applicant, or by the board of
10trustees of an existing charter school, of a decision made by a
11local board of directors or the governing board of an 
12institution of higher education not to grant a charter as
13provided in this section.

14[(2) In order for a charter school applicant to be eligible
15to appeal the denial of a charter by the local board of
16directors, the applicant must obtain the signatures of at least
17two per centum of the residents of the school district or of one
18thousand (1,000) residents, whichever is less, who are over
19eighteen (18) years of age. For a regional charter school, the
20applicant must obtain the signatures of at least two per centum
21of the residents of each school district granting the charter or
22of one thousand (1,000) residents from each of the school
23districts granting the charter, whichever is less, who are over
24eighteen (18) years of age. The signatures shall be obtained
25within sixty (60) days of the denial of the application by the
26local board of directors in accordance with clause (3).

27(3) Each person signing a petition to appeal denial of a
28charter under clause (2) shall declare that he or she is a
29resident of the school district which denied the charter
30application and shall include his or her printed name;

1signature; address, including city, borough or township, with
2street and number, if any; and the date of signing. All pages
3shall be bound together. Additional pages of the petition shall
4be numbered consecutively. There shall be appended to the
5petition a statement that the local board of directors rejected
6the petition for a charter school, the names of all applicants
7for the charter, the date of denial by the board and the
8proposed location of the charter school. No resident may sign
9more than one petition relating to the charter school
10application within the sixty (60) days following denial of the
11application. The department shall develop a form to be used to
12petition for an appeal.

13(4) Each petition shall have appended thereto the affidavit
14of some person, not necessarily a signer, setting forth all of
15the following:

16(i) That the affiant is a resident of the school district
17referred to in the petition.

18(ii) The affiant's residence, giving city, borough or
19township, with street and number, if any.

20(iii) That the signers signed with full knowledge of the
21purpose of the petition.

22(iv) That the signers' respective residences are correctly
23stated in the petition.

24(v) That the signers all reside in the school district.

25(vi) That each signer signed on the date set forth opposite
26the signer's name.

27(vii) That to the best of the affiant's knowledge and
28belief, the signers are residents of the school district.

29(5) If the required number of signatures are obtained within
30sixty (60) days of the denial of the application, the applicant

1may present the petition to the court of common pleas of the
2county in which the charter school would be situated. The court
3shall hold a hearing only on the sufficiency of the petition.
4The applicant and local board of school directors shall be given
5seven (7) days' notice of the hearing. The court shall issue a
6decree establishing the sufficiency or insufficiency of the
7petition. If the petition is sufficient, the decree shall be
8transmitted to the State Charter School Appeal Board for review
9in accordance with this section. Notification of the decree
10shall be given to the applicant and the local board of
11directors.]

12(6) In any appeal, the decision made by the local board of
13directors or the governing board of an institution of higher 
14education shall be reviewed by the appeal board on the record as
15certified by the local board of directors or the governing board 
16of an institution of higher education. The appeal board shall
17give due consideration to the findings of the local board of
18directors or the governing board of an institution of higher 
19education and specifically articulate its reasons for agreeing
20or disagreeing with those findings in its written decision. The
21appeal board shall have the discretion to allow the local board
22of directors or the governing board of an institution of higher 
23education and the charter school applicant to supplement the
24record if the supplemental information was previously
25unavailable.

26(7) Not later than thirty (30) days after the date of notice
27of the acceptance of the appeal, the appeal board shall meet to
28officially review the certified record.

29(8) Not later than sixty (60) days following the review
30conducted pursuant to clause (6), the appeal board shall issue a

1written decision affirming or denying the appeal. If the appeal
2board has affirmed the decision of the local board of directors
3or the governing board of an institution of higher education,
4notice shall be provided to both parties.

5(9) A decision of the appeal board to reverse the decision
6of the local board of directors or the governing board of an 
7institution of higher education shall serve as a requirement for
8the local board of directors of a school district or school
9districts, as appropriate, or the governing board of an 
10institution of higher education, to grant the application and
11sign the written charter of the charter school as provided for
12in section 1720-A. Should the local board of directors or the 
13governing board of an institution of higher education fail to
14grant the application and sign the charter within ten (10) days
15of notice of the reversal of the decision of the local board of
16directors or the governing board of an institution of higher 
17education, the charter shall be deemed to be approved and shall
18be signed by the chairman of the appeal board.

19(10) All decisions of the appeal board shall be subject to
20appellate review by the Commonwealth Court.

21Section 1719-A. Contents of Application.--[An] (a) The 
22department shall create a standard application for charter 
23school applicants to establish a charter school. The form shall
24include all of the following information:

25(1) The identification of the charter applicant.

26(2) The name of the proposed charter school.

27(3) The grade or age levels served by the school.

28(4) [The proposed governance structure of the charter
29school, including a description and method for the appointment
30or election of members of the board of trustees.] An
 

1organizational chart clearly presenting the proposed governance 
2structure of the school, including lines of authority and 
3reporting between the board of trustees, administrators, staff 
4and any educational management service provider that will 
5provide management services to the charter school.

6(4.1) A clear description of the roles and responsibilities
7for the board of trustees, administrators and any other
8entities, including a charter school foundation, shown in the
9organizational chart.

10(4.2) A clear description and method for the appointment or
11election of members of the board of trustees.

12(4.3) Standards for board performance, including compliance
13with all applicable laws, regulations and terms of the charter.

14(4.4) If the charter school intends to contract with an
15educational management service provider for services, all of the
16following:

17(i) Evidence of the educational management service
18provider's record in serving student populations, including
19demonstrated academic achievement and demonstrated management of
20nonacademic school functions, including proficiency with public
21school-based accounting, if applicable.

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

23(A) The officers, chief administrator and administrators of
24the educational management service provider.

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

26(C) Roles and responsibilities of the governing board, the
27school staff and the educational management service provider.

28(D) The scope of services, personnel and resources to be
29provided by the educational management service provider.

30(E) Performance evaluation measures and timelines.

1(F) The compensation structure, including clear
2identification of all fees to be paid to the educational
3management service provider.

4(G) Methods of contract oversight and enforcement.

5(H) Investment disclosure or the advance of moneys by the
6educational management service provider on behalf of the charter
7school.

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

9(iii) Disclosure and explanation of any existing or
10potential conflicts of interest between the members of the board
11of trustees and the proposed educational management service
12provider or any affiliated business entities, including a
13charter school foundation qualified as a support organization
14under the Internal Revenue Code of 1986 (Public Law 99-514, 26
15U.S.C. § 1 et seq.).

16(5) The mission and education goals of the charter school,
17the curriculum to be offered and the methods of assessing
18whether students are meeting educational goals.

19(6) The admission policy and criteria for evaluating the
20admission of students which shall comply with the requirements
21of section 1723-A.

22(7) Procedures which will be used regarding the suspension
23or expulsion of pupils. Said procedures shall comply with
24section 1318.

25(8) Information on the manner in which community groups will
26be involved in the charter school planning process.

27(9) The financial plan for the charter school and the
28provisions which will be made for auditing the school under
29[section] sections 437 and 1728-A, including the role of any 
30charter school foundation.

1(10) Procedures which shall be established to review
2complaints of parents regarding the operation of the charter
3school.

4(11) A description of and address of the physical facility
5in which the charter school will be located and the ownership
6thereof and any lease arrangements.

7(12) Information on the proposed school calendar for the
8charter school, including the length of the school day and
9school year consistent with the provisions of section 1502.

10(13) The proposed faculty, if already determined, and a
11professional development and continuing education plan for the
12faculty and professional staff of [a] the charter school.

13(14) Whether any agreements have been entered into or plans
14developed with the local school district regarding participation
15of the charter school students in extracurricular activities
16within the school district. Notwithstanding any provision to the
17contrary, no school district of residence shall prohibit a
18student of a charter school from participating in any
19extracurricular activity of that school district of residence:
20Provided, That the student is able to fulfill all of the
21requirements of participation in such activity and the charter
22school does not provide the same extracurricular activity.

23(15) A report of criminal history record, pursuant to
24section 111, for all individuals identified in the application
25who shall have direct contact with students and a plan for 
26satisfying the proper criminal history record clearances 
27required for all other staff.

28(16) An official clearance statement regarding child injury
29or abuse from the Department of Public Welfare as required by 23
30Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for

1employment in schools) for all individuals identified in the 
2application who shall have direct contact with students and a 
3plan for satisfying the proper official clearance statement 
4regarding child injury or abuse required for all other staff.

5(17) How the charter school will provide adequate liability
6and other appropriate insurance for the charter school, its
7employes and the board of trustees of the charter school.

8(18) Policies regarding truancy, absences and withdrawal of
9students, including the manner in which the charter school will
10monitor attendance consistent with section 1715-A(a)(9).

11(19) How the charter school will meet the standards included
12in the performance matrix developed by the department under
13section 1732-A(c)(3).

14(20) Indicate whether or not the charter school will seek
15accreditation by a nationally recognized accreditation agency,
16including the Middle States Association of Colleges and Schools
17or another regional institutional accrediting agency recognized
18by the United States Department of Education or an equivalent
19federally recognized body for charter school education.

20(b) A local board of school directors or the governing board
21of an institution of higher education may not impose additional
22terms, develop its own application or require additional
23information outside the standard application form required under
24subsection (a).

25Section 5. Section 1720-A of the act, amended July 9, 2008
26(P.L.846, No.61), is amended to read:

27Section 1720-A. Term and Form of Charter.--(a) Upon
28approval of a charter application under section 1717-A, a
29written charter shall be developed which shall contain the
30provisions of the standardized charter application under section
 

11719-A and which shall be signed by the local board of school
2directors of a school district, by the local boards of school
3directors of a school district in the case of a regional charter
4school, by the governing board of an institution of higher 
5education or by the chairman of the appeal board pursuant to
6section [1717-A(i)(5)] 1717-A(i) and the board of trustees of
7the charter school. This written charter, when duly signed by
8the local board of school directors of a school district, or by
9the local boards of school directors of a school district in the
10case of a regional charter school or the governing board of an 
11institution of higher education, and the charter school's board
12of trustees, shall act as legal authorization for the
13establishment of a charter school. This written charter shall be
14legally binding on both the local board of school directors of a
15school district or the governing board of an institution of 
16higher education and the charter school's board of trustees.
17[Except as otherwise provided in subsection (b), the] If the 
18charter school contracts with an educational management service 
19provider, an executed contract shall be signed once the charter 
20is approved. The charter shall be for a period of [no less than
21three (3) nor more than] five (5) years and may be renewed for
22[five (5)] ten (10) year periods upon reauthorization by the
23local board of school directors of a school district or the 
24governing board of an institution of higher education or the
25appeal board. A charter will be granted only for a school
26organized as a public, nonprofit corporation.

27(b) [(1) Notwithstanding subsection (a), a governing board
28of a school district of the first class may renew a charter for
29a period of one (1) year if the board of school directors
30determines that there is insufficient data concerning the

1charter school's academic performance to adequately assess that
2performance and determines that an additional year of
3performance data would yield sufficient data to assist the
4governing board in its decision whether to renew the charter for
5a period of five (5) years.

6(2) A one-year renewal pursuant to paragraph (1) shall not
7be considered an adjudication and may not be appealed to the
8State Charter School Appeal Board.

9(3) A governing board of a school district of the first
10class does not have the authority to renew a charter for
11successive one (1) year periods] (Reserved).

12(c) (1) A charter school may request amendments to its
13approved written charter by filing a written document describing
14the requested amendment to the local board of school directors
15or the governing board of an institution of higher education.

16(2) Within twenty (20) days of its receipt of the request
17for an amendment, the local board of school directors or the
18governing board of an institution of higher education shall hold
19a public hearing on the requested amendment under 65 Pa.C.S. Ch.
207 (relating to open meetings).

21(3) Within twenty (20) days after the hearing, the local
22board of school directors or the governing board of an
23institution of higher education shall grant or deny the
24requested amendment. Failure by the local board of school
25directors or the governing board of an institution of higher
26education to hold a public hearing and to grant or deny the
27amendments within the time period specified shall be deemed a
28denial.

29(4) An applicant for an amendment shall have the right to
30appeal the denial of a requested amendment to the appeal board

1provided for under section 1721-A.

2Section 6. Section 1721-A(a) and (e) of the act, added June
319, 1997 (P.L.225, No.22), are amended to read:

4Section 1721-A. State Charter School Appeal Board.--(a) The
5State Charter School Appeal Board shall consist of the Secretary
6of Education and [six (6)] the following members who shall be
7appointed by the Governor by and with the consent of a majority
8of all the members of the Senate. [Appointments by the Governor
9shall not occur prior to January 1, 1999.] The Governor shall
10select the chairman of the appeal board to serve at the pleasure
11of the Governor. The members shall include:

12(1) A parent of a school-aged child enrolled at a charter 
13school, regional charter school or cyber charter school.

14(2) A school board member.

15(3) A certified teacher actively employed in a public
16school.

17(4) A faculty member or administrative employe of an
18institution of higher education.

19(5) A member of the business community.

20(6) A member of the State Board of Education.

21(7) An administrator of a charter school, regional charter
22school or cyber charter school.

23(8) A member of the board of trustees of a charter school,
24regional charter school or cyber charter school.

25The term of office of members of the appeal board, other than
26the secretary, shall be for a period of four (4) years or until
27a successor is appointed and qualified, except that, of the
28initial appointees, the Governor shall designate two (2) members
29to serve terms of two (2) years, two (2) members to serve terms
30of three (3) years and two (2) members to serve terms of four

1(4) years. A parent member appointed under paragraph (1) shall 
2serve a term of four (4) years, provided the member's child 
3remains enrolled in the charter school or cyber charter school.
4Any appointment to fill any vacancy shall be for the period of
5the unexpired term or until a successor is appointed and
6qualified.

7* * *

8(e) Meetings of the appeal board shall be conducted under 
9[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). 
11Documents of the appeal board shall be subject to the act of 
12[June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
13Know Law.] February 14, 2008 (P.L.6, No.3), known as the "Right-
14to-Know Law."

15Section 7. Section 1722-A of the act, amended November 17,
162010 (P.L.996, No.104), is amended to read:

17Section 1722-A. Facilities.--(a) A charter school may be
18located in an existing public school building, in a part of an
19existing public school building, in space provided on a
20privately owned site, in a public building or in any other
21suitable location. A charter school has a right of first refusal 
22to purchase or lease an existing public school building, a part 
23of an existing public school building or space in a public 
24building at or below fair market value.

25(b) The charter school facility shall be exempt from public
26school facility regulations except those pertaining to the
27health or safety of [the pupils] students.

28(d) Notwithstanding any other provision of this act, a
29school district [of the first class] may, in its discretion,
30permit a charter school to operate its school at more than one

1location.

2(e) (1) Notwithstanding the provisions of section 204 of
3the act of May 22, 1933 (P.L.853, No.155), known as The General
4County Assessment Law, all school property, real and personal,
5owned by any charter school, cyber charter school or an
6associated nonprofit foundation, or owned by a nonprofit
7corporation, associated nonprofit corporation or nonprofit
8foundation and leased to a charter school, cyber charter school
9[or], associated nonprofit foundation or associated nonprofit 
10corporation at or below fair market value, that is occupied and
11used by any charter school or cyber charter school for public
12school, recreation or any other purposes provided for by this
13act, shall be made exempt from every kind of State, county,
14city, borough, township or other real estate tax, including
15payments in lieu of taxes established through agreement with the
16Commonwealth or any local taxing authority, as well as from all
17costs or expenses for paving, curbing, sidewalks, sewers or
18other municipal improvements, Provided, That any charter school
19or cyber charter school or owner of property leased to a charter
20school or cyber charter school may make a municipal improvement
21in a street on which its school property abuts or may contribute
22a sum toward the cost of the improvement.

23(2) Any agreement entered into by a charter school, cyber
24charter school [or], associated nonprofit foundation or 
25associated nonprofit corporation with the Commonwealth or a
26local taxing authority for payments in lieu of taxes prior to
27December 31, 2009, shall be null and void.

28(3) This subsection shall apply retroactively to all charter
29schools, cyber charter schools [and], associated nonprofit
30foundations and associated nonprofit corporations that filed an

1appeal from an assessment, as provided in Article V of The
2General County Assessment Law, prior to the effective date of
3this subsection and until such time as a final order has been 
4entered.

5(4) For purposes of this subsection, "local taxing
6authority" shall include, but not be limited to, a county, city,
7borough, incorporated town, township or school district.

8(f) (1) Alcoholic beverages shall not be available for
9consumption, purchase or sale in any charter school or cyber
10charter school facility.

11(2) If the local board of school directors or the governing
12board of an institution of higher education reasonably believes
13that alcoholic beverages have been made available for
14consumption, purchase or sale in any charter school or cyber
15charter school facility, the local board of school directors or
16the governing board of an institution of higher education shall
17notify the department, and the secretary shall order the
18following forfeitures against the charter school or cyber
19charter school:

20(i) A fine of $1,000 for the first violation.

21(ii) A fine of $5,000 for the second or subsequent
22violation.

23(3) The charter school or cyber charter school may appeal
24the order of the secretary under 2 Pa.C.S. Chs. 5 (relating to
25practice and procedure) and 7 (relating to judicial review).

26Section 8. Section 1723-A(a), (b) and (d) of the act,
27amended June 26, 1999 (P.L.394, No.36) and July 9, 2008
28(P.L.846, No.61), are amended to read:

29Section 1723-A. Enrollment.--(a) (1) All resident children
30in this Commonwealth qualify for admission to a charter school

1within the provisions of subsection (b). If more students apply
2to the charter school than the number of attendance slots
3available in the school, then students must be selected on a
4random basis from a pool of [qualified applicants meeting the
5established eligibility criteria and submitting] resident 
6children who have submitted an application in accordance with 
7clauses (3) and (4) by the deadline established by the charter
8school, except that the charter school may give preference in
9enrollment to a child of a parent who has actively participated
10in the development of the charter school [and], to siblings of
11students presently enrolled in the charter school and to 
12siblings of students selected for enrollment during the lottery 
13process. First preference shall be given to students who reside
14in the district or districts.

15(2) Resident children not selected from the initial pool
16shall be placed on a waiting list in the order by which they
17were randomly selected. Resident children who apply after a
18waiting list has been created shall be placed on the waiting
19list in the order in which their applications were received. The
20charter school shall enroll additional resident children off the
21waiting list when space becomes available.

22(3) Applications for admission to a charter school shall be
23made on a form developed by the department and shall be made
24available at the charter school and on a charter school's
25publicly accessible Internet website if the charter school has
26such a website.

27(4) Applications for admission to a charter school or
28entrance into a pool for random selection shall not require or
29include a request for any other information that goes beyond the
30contents of the application form developed by the department,

1unless delineated in the school's charter and approved by the
2department.

3(5) Nothing in this section shall prohibit a charter school
4from requesting the submission of additional records and
5information that public schools are entitled to after acceptance
6for admission to a charter school.

7(b) (1) A charter school shall not discriminate in its
8admission policies or practices on the basis of [intellectual
9ability, except as provided in paragraph (2), or] athletic
10ability, measures of achievement or aptitude, status as a person
11with a disability, proficiency in the English language or any
12other basis that would be illegal if used by a school district.

13(2) A charter school may limit admission to a particular
14grade level[,] or a targeted population group composed of at-
15risk students[, or areas of concentration of the school such as
16mathematics, science or the arts. A charter school may establish
17reasonable criteria to evaluate prospective students which shall
18be outlined in the school's charter.] . Only a charter school 
19with a concentrated, specialized or accelerated program of study 
20in science, technology, engineering and mathematics (STEM) or 
21the performing arts for students in grades nine (9) through 
22twelve (12) outlined in the school's charter, made publicly 
23available on the charter school's Internet website, and in 
24accordance with clause (1), may establish reasonable criteria to 
25evaluate prospective students for enrollment purposes. Each 
26child who meets the admission criteria shall be eligible for 
27admission and included in a pool for random selection should one 
28be necessary.

29* * *

30(d) (1) Enrollment of students in a charter school or cyber

1charter school shall not be subject to a cap or otherwise
2limited by any past or future action of a board of school
3directors, a board of control established under Article XVII-B,
4a special board of control established under section 692 or any
5other governing authority[, unless agreed to by the charter
6school or cyber charter school as part of a written charter
7pursuant to section 1720-A].

8(2) The provisions of this subsection shall apply to a
9charter school or cyber charter school regardless of whether the
10charter was approved prior to or is approved subsequent to the
11effective date of this subsection.

12Section 9. Section 1724-A(c) and (d) of the act, amended or
13added June 19, 1997 (P.L.225, No.22) and June 30, 2011 (P.L.112,
14No.24), are amended to read:

15Section 1724-A. School Staff.--* * *

16(c) All employes of a charter school shall be enrolled in
17the Public School Employees' Retirement System in the same
18manner as set forth in 24 Pa.C.S. § 8301(a) (relating to
19mandatory and optional membership) unless at the time of the
20application for the charter school the sponsoring district or
21the board of trustees of the charter school has a retirement
22program which covers the employes or the employe is currently
23enrolled in another retirement program. [The Commonwealth shall
24make contributions on behalf of charter school employes enrolled 
25in the Public School Employees' Retirement System.] The charter
26school shall be considered a school district and shall make
27payments by employers to the Public School Employees' Retirement 
28System and payments on account of Social Security as established
29under 24 Pa.C.S. Pt. IV (relating to retirement for school
30employees). [The market value/income aid ratio used in

1calculating payments as prescribed in this subsection shall be
2the market value/income aid ratio for the school district in
3which the charter school is located or, in the case of a
4regional charter school, shall be a composite market
5value/income aid ratio for the participating school districts as
6determined by the department.] Except as otherwise provided,
7employes of a charter school shall make regular member
8contributions as required for active members under 24 Pa.C.S.
9Pt. IV. If the employes of the charter school participate in
10another retirement plan, then those employes shall have no
11concurrent claim on the benefits provided to public school
12employes under 24 Pa.C.S. Pt. IV. For purposes of this
13subsection, a charter school shall be deemed to be a "public
14school" as defined in 24 Pa.C.S. § 8102 (relating to
15definitions).

16(d) Every employe of a charter school shall be provided [the
17same] similar health care benefits as the employe would be
18provided if he or she were an employe of the local district. The
19local board of school directors may require the charter school
20to provide [the same] similar terms and conditions with regard
21to health insurance as the collective bargaining agreement of
22the school district to include employe contributions to the
23district's health benefits plan. The charter school shall make
24any required employer's contribution to the district's health
25plan to an insurer, a local board of school directors or a
26contractual representative of school employes, whichever is
27appropriate to provide the required coverage.

28* * *

29Section 10. Section 1725-A of the act, amended or added June
3019, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and

1June 29, 2002 (P.L.524, No.88), is amended to read:

2Section 1725-A. Funding for Charter Schools.--(a) [Funding
3for a charter school shall be provided in the following manner:

4(1) There shall be no tuition charge for a resident or
5nonresident student attending a charter school.

6(2) For non-special education students, the charter school
7shall receive for each student enrolled no less than the
8budgeted total expenditure per average daily membership of the
9prior school year, as defined in section 2501(20), minus the
10budgeted expenditures of the district of residence for nonpublic
11school programs; adult education programs; community/junior
12college programs; student transportation services; for special
13education programs; facilities acquisition, construction and
14improvement services; and other financing uses, including debt
15service and fund transfers as provided in the Manual of
16Accounting and Related Financial Procedures for Pennsylvania
17School Systems established by the department. This amount shall
18be paid by the district of residence of each student.

19(3) For special education students, the charter school shall
20receive for each student enrolled the same funding as for each
21non-special education student as provided in clause (2), plus an
22additional amount determined by dividing the district of
23residence's total special education expenditure by the product
24of multiplying the combined percentage of section 2509.5(k)
25times the district of residence's total average daily membership
26for the prior school year. This amount shall be paid by the
27district of residence of each student.

28(4) A charter school may request the intermediate unit in
29which the charter school is located to provide services to
30assist the charter school to address the specific needs of

1exceptional students. The intermediate unit shall assist the
2charter school and bill the charter school for the services. The
3intermediate unit may not charge the charter school more for any
4service than it charges the constituent districts of the
5intermediate unit.

6(5) Payments shall be made to the charter school in twelve
7(12) equal monthly payments, by the fifth day of each month,
8within the operating school year. A student enrolled in a
9charter school shall be included in the average daily membership
10of the student's district of residence for the purpose of
11providing basic education funding payments and special education
12funding pursuant to Article XXV. If a school district fails to
13make a payment to a charter school as prescribed in this clause,
14the secretary shall deduct the estimated amount, as documented
15by the charter school, from any and all State payments made to
16the district after receipt of documentation from the charter
17school.

18(6) Within thirty (30) days after the secretary makes the
19deduction described in clause (5), a school district may notify
20the secretary that the deduction made from State payments to the
21district under this subsection is inaccurate. The secretary
22shall provide the school district with an opportunity to be
23heard concerning whether the charter school documented that its
24students were enrolled in the charter school, the period of time
25during which each student was enrolled, the school district of
26residence of each student and whether the amounts deducted from
27the school district were accurate.

28(b) The Commonwealth shall provide temporary financial
29assistance to a school district due to the enrollment of
30students in a charter school who attended a nonpublic school in

1the prior school year in order to offset the additional costs
2directly related to the enrollment of those students in a public
3charter school. The Commonwealth shall pay the school district
4of residence of a student enrolled in a nonpublic school in the
5prior school year who is attending a charter school an amount
6equal to the school district of residence's basic education
7subsidy for the current school year divided by the district's
8average daily membership for the prior school year. This payment
9shall occur only for the first year of the attendance of the
10student in a charter school, starting with school year 1997-
111998. Total payments of temporary financial assistance to school
12districts on behalf of a student enrolling in a charter school
13who attended a nonpublic school in the prior school year shall
14be limited to funds appropriated for this program in a fiscal
15year. If the total of the amount needed for all students
16enrolled in a nonpublic school in the prior school year who
17enroll in a charter school exceeds the appropriation for the
18temporary financial assistance program, the amount paid to a
19school district for each qualifying student shall be pro rata
20reduced. Receipt of funds under this subsection shall not
21preclude a school district from applying for a grant under
22subsection (c).

23(c) The Commonwealth shall create a grant program to provide
24temporary transitional funding to a school district due to the
25budgetary impact relating to any student's first-year attendance
26at a charter school. The department shall develop criteria which
27shall include, but not be limited to, the overall fiscal impact
28on the budget of the school district resulting from students of
29a school district attending a charter school. The criteria shall
30be published in the Pennsylvania Bulletin. This subsection shall

1not apply to a public school converted to a charter school under
2section 1717-A(b). Grants shall be limited to funds appropriated
3for this purpose.

4(d) It shall be lawful for any charter school to receive,
5hold, manage and use, absolutely or in trust, any devise,
6bequest, grant, endowment, gift or donation of any property,
7real or personal and/or mixed, which shall be made to the
8charter school for any of the purposes of this article.

9(e) It shall be unlawful for any trustee of a charter school
10or any board of trustees of a charter school or any other person
11affiliated in any way with a charter school to demand or
12request, directly or indirectly, any gift, donation or
13contribution of any kind from any parent, teacher, employe or
14any other person affiliated with the charter school as a
15condition for employment or enrollment and/or continued
16attendance of any pupil. Any donation, gift or contribution
17received by a charter school shall be given freely and
18voluntarily.] Funding for a charter school entity shall be 
19provided in the following manner and shall not be in violation 
20of any applicable Federal or State law, regulation or agreement:

21(1) There shall be no tuition charge for a resident or
22nonresident student attending a charter school entity.

23(2) The following apply:

24(i) For nonspecial education students, the charter school
25entity shall receive for each student enrolled no less than the
26budgeted total expenditure per average daily membership of the
27prior school year, as defined in section 2501(20), minus the
28budgeted expenditures of the district of residence for all of
29the following:

30(A) Nonpublic school programs.

1(B) Adult education programs.

2(C) Community and junior college programs.

3(D) Student transportation services.

4(E) Special education programs.

5(F) Facilities acquisition, construction and improvement
6services.

7(G) Programs and services to the extent they are funded from
8the proceeds of competitive grants from private or public
9resources or from contributions or donations from private
10sources.

11(H) Other financing uses, including debt service and fund
12transfers as provided in the Manual of Accounting and Related
13Financial Procedures for Pennsylvania School Systems established
14by the department.

15(i.1) The amount under subclause (i) shall be calculated by
16each school district on a form prescribed by the secretary in
17accordance with this section. The secretary, upon receipt of a
18district's calculation, shall review the district's calculation
19and may request supporting documentation from the district
20regarding its calculation. If the secretary finds an error or
21discrepancy in a district's calculation, the secretary shall
22require the district to correct the calculation and require the
23school district to notify affected charter school entities.

24(ii) The following apply:

25(A) The amount under subclause (i) shall be paid by the
26school district of residence of each student by deduction and
27transfer from all State payments due to the district as provided
28under clause (5).

29(B) If a charter school entity disputes the accuracy of a
30district's calculation under this clause, the charter school

1entity shall file a notice of the dispute with the secretary,
2who shall hold a hearing to determine the accuracy of the
3district's calculation within thirty (30) days of the notice.

4(C) The secretary shall determine the accuracy of the
5district's calculation within thirty (30) days of the hearing.

6(D) The district shall bear the burden of production and
7proof with respect to its calculation under this clause.

8(E) The district shall be liable for the reasonable legal
9fees incurred by a charter school entity if the charter school
10entity is the substantially prevailing party after a hearing
11under this section. The charter school entity shall be liable
12for the reasonable legal fees incurred by the district if the
13district is the substantially prevailing party after a hearing
14under this section.

15(F) All decisions of the secretary under this clause shall
16be subject to appellate review by Commonwealth Court.

17(3) The following apply:

18(i) For special education students, the charter school
19entity shall receive for each student enrolled the same funding
20as for each nonspecial education student as provided under
21clause (2), plus an additional amount determined by dividing the
22total special education expenditure of the school district of
23residence by the product of:

24(A) the combined percentage of section 2509.5(k) applicable
25to the school year; and

26(B) the total average daily membership of the school
27district of residence for the prior school year.

28(ii) The amount under subclause (i) shall be paid by the
29school district of residence of each student by deduction and
30transfer from all State payments due to the district as provided

1under clause (5).

2(iii) If a charter school entity disputes the accuracy of a
3district's calculation under this clause, the charter school
4entity shall file a notice of the dispute with the secretary,
5who shall hold a hearing to determine the accuracy of the
6district's calculation within thirty (30) days of the notice.

7(iv) The secretary shall determine the accuracy of the
8district's calculation within thirty (30) days of the hearing.

9(v) The district shall bear the burden of production and
10proof with respect to its calculation under this clause.

11(vi) The district shall be liable for the reasonable legal
12fees incurred by a charter school entity if the charter school
13entity is the substantially prevailing party after a hearing
14under this section. The charter school entity shall be liable
15for the reasonable legal fees incurred by the school district if
16the district is the substantially prevailing party after a
17hearing under this section.

18(vii) All decisions of the secretary under this section
19shall be subject to appellate review by Commonwealth Court.

20(4) A charter school entity may request the intermediate
21unit or school district in which the charter school entity is
22located to provide services to assist the charter school entity
23to address the specific needs of nonspecial education and
24exceptional students. The intermediate unit or school district
25shall provide the charter school entity with such services and
26bill the charter school entity for the services. The
27intermediate unit or school district may not charge the charter
28school entity more for any service than it charges the
29constituent districts of the intermediate unit. Nothing under
30this clause shall preclude an intermediate unit or school

1district from contracting with a charter school entity to
2provide the intermediate unit or school district with services
3to assist the intermediate unit or school district to address
4specific needs of nonspecial education and special education
5students.

6(5) The following apply:

7(i) Payments shall be made to the charter school entity in
8twelve (12) equal monthly payments, according to the established
9monthly unipay schedule within the operating school year.

10(ii) Except as provided for in subclause (v), payments shall
11be made directly by the secretary deducting and paying to the
12charter school entity the estimated amount, as documented by the
13charter school entity, from all State payments due to the
14district or, if no payments are due to the district from all
15State payments reasonably expected to be due in the next
16established monthly unipay schedule, after receipt of
17documentation from the charter school entity as to its
18enrollment.

19(iii) The secretary's obligation to make payments under this
20section is mandatory and ministerial.

21(iv) If there are insufficient State payments due to a
22district in the established monthly unipay schedule to cover all
23charter school entity deductions and transfers, the district
24shall be responsible for paying the unpaid balance directly to
25the charter school entity not more than seven (7) days following
26the established monthly unipay schedule.

27(v) The board of trustees of a charter school entity may
28elect on an annual basis to be paid directly from the school
29district of residence. Any board of trustees of a charter school
30entity that elects to be paid directly by the school district of

1residence shall notify the department in accordance with the
2timelines established in the department guidelines. The school
3district of residence shall provide for payment to the charter
4school entity as follows:

5(A) Payments shall be made to the charter school entity in
6twelve (12) equal monthly payments, according to the established
7monthly unipay schedule, within the operating school year.

8(B) Payments shall be made directly by the school district
9of residence paying to the charter school entity the estimated
10amount, as documented by the charter school entity, after
11receipt of documentation from the charter school entity as to
12its enrollment.

13(vi) A student enrolled in a charter school entity shall be
14included in the average daily membership of the student's school
15district of residence for the purpose of providing basic
16education funding payments and special education funding under
17Article XXV.

18(6) The following apply:

19(i) Within thirty (30) days after the payment is made to the
20charter school entity as described under clause (5), a school
21district may notify the secretary that the estimated amount, as
22documented by the charter school entity, is inaccurate.

23(ii) The secretary shall provide the school district with an
24opportunity to be heard concerning whether the charter school
25entity documented that its students were enrolled in the charter
26school entity, the period of time during which each student was
27enrolled, the school district of residence of each student and
28whether the amounts deducted from or paid by the school district
29were accurate.

30(iii) The burden of proof and production at the hearing

1shall be on the school district. A hearing shall not be held
2before the secretary deducts and transfers to the charter school
3entity the amount estimated by the charter school entity.

4(iv) The district shall be liable for the reasonable legal
5fees incurred by a charter school entity if the charter school
6entity is the substantially prevailing party after a hearing
7under this section. The charter school entity shall be liable
8for the reasonable legal fees incurred by the district if the
9district is the substantially prevailing party after a hearing
10under this section.

11(v) All decisions of the secretary under this section shall
12be subject to appellate review by Commonwealth Court.

13(vi) Supersedeas shall not be granted to the secretary or
14any party to the proceeding on an appeal from the decision of
15the secretary under this section; and, absent a court order, the
16secretary shall not hold any payments in escrow.

17(b) It shall be lawful for any charter school entity to
18receive, hold, manage and use, absolutely or in trust, any
19devise, bequest, grant, endowment, gift or donation of any
20property, real or personal and mixed, which shall be made to the
21charter school entity for any purpose of this article.

22(c) It shall be unlawful for any trustee of a charter school
23entity or any board of trustees of a charter school entity or
24any other person affiliated in any way with a charter school
25entity to demand or request, directly or indirectly, any gift,
26donation or contribution of any kind from any parent, teacher,
27employe or any other person affiliated with the school as a
28condition for employment or enrollment and continued attendance
29of any pupil. Any donation, gift or contribution received by a
30charter school entity must be given freely and voluntarily.

1(d) A cyber charter school may not provide discounts to a
2school district or waive payments under this section for any
3student.

4(e) The department shall develop a transition procedure to
5be able to recoup in subsequent fiscal years any payments made
6in error to a charter school entity as a result of direct
7payment by the department to the charter school entity.

8Section 11. Section 1728-A(a) of the act, added June 19,
91997 (P.L.225, No.22), is amended and the section is amended by
10adding subsections to read:

11Section 1728-A. Annual Reports and Assessments.--(a) (1)
12The local board of school directors or the governing board of an 
13institution of higher education shall annually assess whether
14each charter school is meeting the goals of its charter and
15shall conduct a comprehensive review prior to granting a [five
16(5)] ten (10) year renewal of the charter. The local board of
17school directors or the governing board of an institution of 
18higher education shall have ongoing access to the records and
19facilities of the charter school to ensure that the charter
20school is in compliance with its charter and this act and that
21requirements for testing, civil rights and student health and
22safety are being met.

23(2) Ongoing access to a charter school's records shall mean
24that the local board of school directors or the governing board
25of an institution of higher education shall have access to
26records such as financial reports, financial audits, aggregate
27standardized test scores without student-identifying information
28and teacher certification and personnel records.

29(3) Schools and school entities shall comply fully with the
30requirements of the Family Educational Rights and Privacy Act of

11974 (Public Law 90-247, 20 U.S.C. § 1232g) and associated
2regulations. No personally identifiable information from
3education records shall be provided by the charter school to the
4school district except in compliance with the Family Educational
5Rights and Privacy Act of 1974.

6* * *

7(d) A charter school shall form an independent audit
8committee of its board members which shall review at the close
9of each fiscal year a complete certified audit of the operations
10of the charter school. The audit shall be conducted by a
11qualified independent certified public accountant. The audit
12shall be conducted under generally accepted audit standards of
13the Governmental Accounting Standards Board and shall include
14the following:

15(1) An enrollment test to verify the accuracy of student
16enrollment and reporting to the State.

17(2) Full review of expense reimbursements for board members
18and administrators, including sampling of all reimbursements.

19(3) Review of internal controls, including review of
20receipts and disbursements.

21(4) Review of annual Federal and State tax filings,
22including the Internal Revenue Service Code Form 990, Return of
23Organization Exempt from Income Tax and all related schedules
24and appendices for the charter school and charter school
25foundation, if applicable.

26(5) Review of the financial statements of any charter school
27foundation.

28(6) Review of the selection and acceptance process of all
29contracts publicly bid pursuant to section 751.

30(7) Review of all board policies and procedures with regard

1to internal controls, code of ethics, conflicts of interest,
2whistle-blower protections, complaints from parents or the
3public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
4meetings), compliance with the "Right-to-Know Law," finances,
5budgeting, audits, public bidding and bonding.

6(e) The certified audit under subsection (d) and the annual
7budget under subsection (g) are public documents and shall be
8made available on the school district's publicly accessible
9Internet website and the charter school's publicly accessible
10Internet website, if applicable.

11(f) A charter school may be subject to an annual audit by
12the Auditor General, in addition to any other audits required by
13Federal law or this article.

14(g) A charter school shall annually provide the school
15district and the department with a copy of the annual budget for
16the operation of the school that identifies the following:

17(1) The source of funding for all expenditures as part of
18its reporting under subsection (a).

19(2) Where funding is provided by a charter school
20foundation, the amount of funds and a description of the use of
21the funds.

22(3) The salaries of all administrators of the charter
23school.

24(4) All expenditures to an educational management service
25provider.

26(h) (1) Notwithstanding any other provision of law, a
27charter school and any affiliated charter school foundation
28shall make copies of its annual Federal and State tax filings
29available upon request and on the foundation's or school's
30publicly accessible Internet website, if applicable, including

1Internal Revenue Service Code Form 990, Return of Organization
2Exempt from Income Tax and all related schedules and appendices.

3(2) The charter school foundation shall also make copies of
4its annual budget available upon request and on the foundation's
5or the school's publicly accessible Internet website within
6thirty (30) days of the close of the foundation's fiscal year.

7(3) The annual budget shall include the salaries of all
8employes of the charter school foundation.

9Section 12. The act is amended by adding a section to read:

10Section 1728.1-A. Charter Authorizer Accountability.--(a)
11Each local board of school directors of a district and the
12governing board of an institution of higher education shall be
13required to submit to the department an annual report
14summarizing:

15(1) The strategic vision for chartering and progress toward
16achieving that vision.

17(2) The academic and financial performance of all operating
18public charter schools overseen by the local board or the
19governing board of an institution of higher education, according
20to the performance expectations for public charter schools set
21forth in this act.

22(3) The status of the local board of school directors' or
23the governing board of an institution of higher education's
24public charter school portfolio, identifying all public charter
25schools in each of the following categories: (i) approved, but
26not open; (ii) open and operating; and (iii) closed, including
27the year closed and the reason for closure.

28(4) The authorizing functions provided by the local board of
29school directors or the governing board of an institution of
30higher education to the public charter schools under its

1purview, including the authorizer's operating costs and expenses
2detailed in annual audited financial statements that conform to
3generally accepted accounting principles.

4(b) The department shall be responsible for the following:

5(1) Oversight of the performance of each established local
6board of school directors of a district and the governing board
7of an institution of higher education.

8(2) Formal evaluation of the overall State charter school
9program and outcomes every five years.

10(3) For each local board of school directors of a district
11and the governing board of an institution of higher education,
12an annual review, based on objective data, to determine how well
13the authorizer is exercising its duties and maintaining a
14portfolio of high-performing charter schools.

15(4) In reviewing or evaluating the performance of each local
16board of school directors of a district and the governing board
17of an institution of higher education, the department shall
18apply nationally recognized principles and standards of quality
19charter school authorizing as determined by the National
20Association of Charter School Authorizers.

21(c) The department shall publish the annual reviews on its
22publicly accessible Internet website and submit a summary report
23regarding authorizer performance to the Governor and the General
24Assembly.

25(d) The department shall develop a plan for sanctioning
26local boards of school directors of a district or governing
27boards of an institution of higher education that maintain
28portfolios with persistently low-performing charter schools and
29fail to provide adequate authorizer oversight or intervention
30that may include a corrective action plan for the authorizer and

1other sanctions deemed necessary by the department.

2Section 13. Section 1729-A(a), (b) and (c) of the act, added
3June 19, 1997 (P.L.225, No.22), are amended to read:

4Section 1729-A. Causes for Nonrenewal or Termination.--(a)
5During the term of the charter or at the end of the term of the
6charter, the local board of school directors or the governing 
7board of an institution of higher education may choose to revoke
8or not to renew the charter based on any of the following:

9(1) One or more material violations of any of the
10conditions, standards or procedures contained in the written
11charter signed pursuant to section 1720-A.

12(2) Failure to meet the requirements for student performance
13[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
14subsequent regulations promulgated to replace 22 Pa. Code Ch. 5] 
15assessments or failure to meet any performance standard set
16forth in the written charter signed pursuant to section 1716-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 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 the governing board of an institution of higher 
30education proves by a preponderance of the evidence that an
 

1administrator or board member of a charter school has violated 
2this article, the terms and conditions of the charter or any 
3other violation of law, the local board of school directors or 
4the governing board of an institution of higher education may 
5require the charter school to replace the administrator or board 
6member in order to obtain renewal of the charter. The local 
7board of school directors or the governing board of an 
8institution of higher education 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 the governing board of an institution of higher education 
12discovers or receives information about possible violations of 
13law by any person affiliated with or employed by a charter 
14school.

15(c) Any notice of revocation or nonrenewal of a charter
16given by the local board of school directors of a school
17district or the governing board of an institution of higher 
18education shall state the grounds for such action with
19reasonable specificity and give reasonable notice to the
20governing board of the charter school of the date on which a
21public hearing concerning the revocation or nonrenewal will be
22held. The local board of school directors or the governing board 
23of an institution of higher education shall conduct such
24hearing, present evidence in support of the grounds for
25revocation or nonrenewal stated in its notice and give the
26charter school reasonable opportunity to offer testimony before
27taking final action. Formal action revoking or not renewing a
28charter shall be taken by the local board of school directors or 
29the governing board of an institution of higher education at a
30public meeting pursuant to [the act of July 3, 1986 (P.L.388,

1No.84), known as the "Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating 
2to open meetings) after the public has had thirty (30) days to
3provide comments to the board. All proceedings of the local
4board pursuant to this subsection shall be subject to 2 Pa.C.S.
5Ch. 5 Subch. B (relating to practice and procedure of local
6agencies). Except as provided in subsection (d), the decision of
7the local board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B
8(relating to judicial review of local agency action).

9* * *

10Section 14. The act is amended by adding sections to read:

11Section 1729.1-A. Evaluation of Educators.--(a) All
12applications by a charter school entity for a charter or for the
13renewal of a charter shall include a system of evaluation for
14educators that includes both of the following:

15(1) At least four (4) rating categories of educator
16performance.

17(2) Multiple measures of student performance which shall
18include, but may not be limited to, value-added assessment
19system data made available by the department under section 221
20and student performance on the most recent assessments for which
21results have been released by the department and may include
22goals specific to the mission of the charter school entity's
23charter.

24(b) Nothing in this section shall preempt the powers of a
25board of trustees under section 1716-A(a) nor affect the intent
26of the General Assembly provided in section 1702-A(3) and (4).

27Section 1729.2-A. Multiple Charter School Organizations.--
28(a) Establishment shall be as follows:

29(1) Subject to the requirements of subsection (b), two or
30more charter schools may consolidate under 15 Pa.C.S. Pt. II

1Subpt. C (relating to nonprofit corporations) into a multiple
2charter school organization.

3(2) The multiple charter school organization shall be:

4(i) granted a single charter to operate two or more
5individual charter schools under the oversight of a single board
6of trustees and a chief administrator who shall oversee and
7manage the operation of the individual charter schools under its
8organization;

9(ii) considered a charter school entity; and

10(iii) subject to all of the requirements of this article
11unless otherwise provided for under this section.

12(3) Nothing under this subsection shall be construed to
13affect or change the terms or conditions of any individual
14charter previously granted that is consolidated under this
15section.

16(b) The following apply to consolidation of two or more
17individual charter schools into a multiple charter school
18organization:

19(1) A charter school that, prior to the effective date of
20this section, was approved by a local board of school directors,
21a special board of control, a School Reform Commission or
22another governing authority and that chooses to consolidate into
23a multiple charter school organization under this section may
24apply to the department to consolidate all affiliated school
25charters into a single charter within ninety (90) days after the
26department publishes the standard application form required
27under subsection (c). Beginning ninety-one (91) days after the
28department publishes the standard application form required
29under subsection (c), no charter school that was approved prior
30to the effective date of this section shall be eligible to

1consolidate with another charter school.

2(2) Consolidation is restricted as follows:

3(i) Except as set forth in subparagraph (ii), a charter
4school shall not be eligible to consolidate with another charter
5school that:

6(A) within either of the most recent two (2) school years,
7has failed to meet the requirements for student performance set
8forth in 22 Pa. Code Ch. 4 (relating to academic standards and
9assessment);

10(B) does not meet accepted standards of fiscal management or
11audit requirements; or

12(C) does not meet the standards set forth by the matrix
13established under section 1732-A(c)(3).

14(ii) Subparagraph (i) shall not apply if the consolidation
15includes a charter school which is not in violation of
16subparagraph (i) over the most recent two (2) school years.

17(iii) Clause (i)(C) shall not apply until the matrix
18required under section 1732-A(c)(3) has been developed.

19(3) The board of trustees of each charter school shall
20jointly submit their charter school's current charter and annual
21report to the department and request that oversight over the
22multiple charter school organization, including the authority to
23consider applications for renewal, be transferred to the
24department.

25(4) (i) Upon receipt of a consolidation and transfer
26application and all necessary documentation as required by the
27department, the department shall have thirty (30) days to
28approve or deny the consolidation and transfer application.

29(ii) Written notice of the department's action shall be sent
30to the applicants. If the application is denied, the reasons for

1the denial, including a description of deficiencies in the
2application, shall be clearly stated in the notice sent by the
3department to the applicants.

4(iii) If the department approves the consolidation and
5transfer, the department shall provide notification to the local
6boards of school directors, the special boards of control, the
7School Reform Commission or other governing authorities which
8initially approved the charters.

9(iv) A decision by the department to deny the consolidation
10and transfer application under subparagraph (i) may be appealed
11to the appeal board. The following shall apply to an appeal
12under this paragraph:

13(A) In the case of an appeal under this clause, the appeal
14board shall review the application and make a decision to
15approve or deny the consolidation and transfer application based
16on whether the application includes the information required
17under subsection (c).

18(B) Within thirty (30) days following receipt of an appeal
19under this clause, the appeal board shall meet to officially
20review the certified record of the department.

21(C) Within sixty (60) days following the review conducted
22pursuant to clause (B), the appeal board shall issue a written
23decision affirming or reversing the decision of the department.
24Written notice of the decision of the appeal board shall be
25provided to the parties.

26(D) A decision by the appeal board under this clause to
27approve the consolidation and transfer application shall serve
28as a requirement for the department to approve the application
29and provide notification of the approval to the local boards of
30school directors, the special boards of control, the School

1Reform Commission or other governing authorities which initially
2approved the charters within ten (10) days of the reversal of
3the decision of the department. If the department fails to
4provide notification within ten (10) days of the reversal of the
5decision of the department, the application shall be deemed to
6be approved, and the appeal board shall provide notification of
7the approval to the local boards of school directors, the
8special boards of control, the School Reform Commission or other
9governing authorities which initially approved the charters.

10(E) All decisions of the appeal board shall be subject to
11appellate review by the Commonwealth Court.

12(5) No later than thirty (30) days after the receipt of the
13notification of approval required under paragraph (4), the local
14boards of school directors, the special boards of control, the
15School Reform Commission or other governing authorities which
16initially approved the charters shall transfer to the department
17all records regarding oversight of the charter schools.

18(6) A charter school's charter term shall remain in effect
19until the time of expiration, at which time the department will
20undertake a comprehensive review prior to granting a ten-year
21charter renewal.

22(c) Within thirty (30) days of the effective date of this
23section, the department shall develop and issue a standard
24application form for multiple charter school organization
25applicants and shall publish the application form in the
26Pennsylvania Bulletin and on the department's publicly
27accessible Internet website. The application form shall contain
28the following information:

29(1) The name of the multiple charter school organization.

30(2) The names of the charter schools seeking consolidation

1and transfer under this section.

2(3) A copy of the approved charter of each charter school
3seeking to consolidate and transfer oversight functions to the
4department.

5(4) An organizational chart clearly presenting the proposed
6governance structure of the multiple charter school
7organization, including lines of authority and reporting between
8the board of trustees, chief administrator, administrators,
9staff and any educational management service provider that will
10play a role in providing management services to the charter
11schools under its jurisdiction.

12(5) A clear description of the roles and responsibilities
13for the board of trustees, chief administrator, administrators
14and any other entities, including a charter school foundation,
15shown in the organizational chart.

16(6) A clear description and method for the appointment or
17election of members of the board of trustees.

18(7) Standards for board of trustees performance, including
19compliance with all applicable laws, regulations and terms of
20the charter.

21(8) Enrollment procedures for each individual charter school
22included in its charter.

23(9) Any other information as deemed necessary by the
24department.

25(d) A multiple charter school organization may:

26(1) Participate in the assessment system in the same manner
27in which a school district participates, with its individual
28charter schools participating in the assessment system in the
29same manner as individual schools in school districts. All data
30+gathered for purposes of evaluation shall be gathered in the

1same manner in which data is gathered in the case of school
2districts and individual schools in school districts.

3(2) Beginning ninety-one (91) days after the department
4publishes the standard application form required under
5subsection (c), add newly established charter schools to its
6organization through both of the following:

7(i) Establish a new charter school by applying for a charter
8through the local school board under section 1717-A; and

9(ii) Apply to the department to consolidate and transfer
10under this section.

11(3) Amend the individual charters of each charter school
12under its organization by seeking approval from the department
13under the amendment process included under section 1720-A.

14(4) Allow students enrolled in an individual charter school
15to matriculate to another individual charter school under its
16oversight so as to complete a course of instruction in an
17educational institution from kindergarten through grade twelve.

18(e) The annual report required under section 1728-A shall be
19provided by the board of trustees and chief administrator of the
20multiple charter school organization and shall include all
21information required to provide a basis for evaluation for
22renewal of each individual charter school under the oversight of
23the multiple charter school organization.

24(f) A multiple charter school organization shall be regarded
25as the holder of the charter of each individual charter school
26under its oversight and each previously or subsequently awarded
27charter shall be subject to nonrenewal or revocation in
28accordance with this act. The nonrenewal or revocation shall not
29affect the status of a charter awarded for any other individual
30charter school under the oversight of the multiple charter

1school organization.

2(g) The department shall:

3(1) Receive, review and act on multiple charter school
4organization consolidation and transfer applications under this
5section.

6(2) Exercise oversight over multiple charter school
7organizations approved under this section.

8(3) Develop and issue a standard application form for
9multiple charter school organization applicants and publish the
10application form in the Pennsylvania Bulletin and on the
11department's publicly accessible Internet website under
12subsection (c).

13Section 15. Section 1732-A of the act, amended June 29, 2002
14(P.L.524, No.88), is amended to read:

15Section 1732-A. Provisions Applicable to Charter Schools.--
16(a) Charter schools shall be subject to the following:

17Sections 108, 110, 111, 321, 325, 326, 327, 431, 436, 443,
18510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753,
19[755,] 771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a),
201205.3, 1205.4, 1205.5, 1301, 1302, 1303, 1310, 1317, 1317.1,
211317.2, 1317.3, 1318, 1327, 1330, 1332, 1303-A, 1513, 1517,
221518, 1521, 1523, 1531, 1547, 2014-A, Article XIII-A and Article
23XIV.

24Act of July 19, 1957 (P.L.1017, No.451), known as the "State
25Adverse Interest Act."

26Act of July 17, 1961 (P.L.776, No.341), known as the
27"Pennsylvania Fair Educational Opportunities Act."

28Act of July 19, 1965 (P.L.215, No.116), entitled "An act
29providing for the use of eye protective devices by persons
30engaged in hazardous activities or exposed to known dangers in

1schools, colleges and universities."

2Section 4 of the act of January 25, 1966 (1965 P.L.1546,
3No.541), entitled "An act providing scholarships and providing
4funds to secure Federal funds for qualified students of the
5Commonwealth of Pennsylvania who need financial assistance to
6attend postsecondary institutions of higher learning, making an
7appropriation, and providing for the administration of this
8act."

9Act of July 12, 1972 (P.L.765, No.181), entitled "An act
10relating to drugs and alcohol and their abuse, providing for
11projects and programs and grants to educational agencies, other
12public or private agencies, institutions or organizations."

13Act of December 15, 1986 (P.L.1595, No.175), known as the
14"Antihazing Law."

15The "Right-to-Know Law."

1665 Pa.C.S. Ch. 7 (relating to open meetings).

1765 Pa.C.S. Ch. 11 (relating to ethics standards and financial
18disclosure).

19(b) Charter schools shall be subject to the following
20provisions of 22 Pa. Code:

21[Section 5.216 (relating to ESOL).

22Section 5.4 (relating to general policies).]

23Chapter 4 (relating to academic standards and assessments).

24Chapter 11 (relating to pupil attendance).

25Chapter 12 (relating to students).

26Section 32.3 (relating to assurances).

27Section 121.3 (relating to discrimination prohibited).

28Section 235.4 (relating to practices).

29Section 235.8 (relating to civil rights).

30Chapter 711 (relating to charter school services and programs

1for children with disabilities).

2(c) (1) The secretary may promulgate additional regulations
3relating to charter schools.

4(2) The secretary shall have the authority and the
5responsibility to ensure that charter schools comply with
6Federal laws and regulations governing children with
7disabilities. The secretary shall promulgate regulations to
8implement this provision.

9(3) (i) Within one (1) year of the effective date of this
10clause, the department shall develop a standard performance
11matrix to evaluate charter school performance and shall
12promulgate regulations pursuant to the act of June 25, 1982
13(P.L.633, No.181), known as the "Regulatory Review Act," to
14implement this section.

15(ii) The performance matrix may assess performance by
16utilizing objective criteria, including, but not limited to:
17student performance on the Pennsylvania System of School
18Assessment test, the Keystone Exam or another test established
19by the State board to meet the requirements of section 2603-B(d)
20(10)(i) and required under the No Child Left Behind Act of 2001
21(Public Law 107-110, 115 Stat. 1425) or its successor Federal
22statute; annual growth as measured by the Pennsylvania Value-
23Added Assessment System; attendance; attrition rates; graduation
24rates; other standardized test scores; school safety; parent
25satisfaction; accreditation by a nationally recognized
26accreditation agency, including the Middle States Association of
27Colleges and Schools or another regional institutional
28accrediting agency recognized by the United States Department of
29Education or an equivalent federally recognized body for charter
30school education; and other measures of school quality,

1including measures for assessing teacher effectiveness.

2(iii) The department shall develop the performance matrix
3with input from charter school operators and may contract for
4consulting services with an entity that has experience in
5developing performance matrices if the services are procured
6through a competitive bidding process.

7(iv) No local board of school directors or the governing
8board of an institution of higher education may develop a
9separate performance matrix for the evaluation of a charter
10school.

11(v) A local board of school directors or the governing board
12of an institution of higher education shall utilize the standard
13performance matrix as a primary factor in evaluating new charter
14school applicants and applicants for charter school renewal and
15in annual monitoring and evaluation of charter schools.

16(vi) The department shall distribute the performance matrix
17to all local boards of school directors or the governing board
18of an institution of higher education and shall publish the
19matrix on the department's publicly accessible Internet website.

20Section 16. The act is amended by adding a section to read:

21Section 1733-A. Effect on Existing Charter Schools.--(a)
22Within one (1) year of the effective date of this section, a
23charter school established under section 1717-A or 1718-A prior
24to the effective date of this section shall amend the current
25charter through the amendment process under section 1720-A(c) as
26needed to reflect the requirements of this article. Any renewal
27that takes effect after July 15, 2013, shall be for the term
28specified under section 1720-A(a).

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

1compliance with this article.

2Section 17. Sections 1741-A(c) and 1742-A of the act, added
3June 29, 2002 (P.L.524, No.88), are amended to read:

4Section 1741-A. Powers and duties of department.

5* * *

6(c) Documents.--Documents of the appeal board shall be
7subject to [the act of June 21, 1957 (P.L.390, No.212), referred
8to as] the Right-to-Know Law.

9Section 1742-A. Assessment and evaluation.

10The department shall:

11(1) Annually assess whether each cyber charter school is
12meeting the goals of its charter and is in compliance with
13the provisions of the charter and conduct a comprehensive
14review prior to granting a [five-year] ten-year renewal of
15the charter.

16(2) Annually review each cyber charter school's
17performance on the Pennsylvania System of School Assessment
18test, standardized tests and other performance indicators to
19ensure compliance with 22 Pa. Code Ch. 4 (relating to
20academic standards and assessment) or subsequent regulations
21promulgated to replace 22 Pa. Code Ch. 4.

22(3) Have ongoing access to all records, instructional
23materials and student and staff records of each cyber charter
24school and to every cyber charter school facility to ensure
25the cyber charter school is in compliance with its charter
26and this subdivision.

27Section 18. Section 1745-A(f) of the act, added June 29,
282002 (P.L.524, No.88), is amended and the section is amended by
29adding a subsection to read:

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

1* * *

2(b.1) Local board of school directors or intermediate
3unit.--

4(1) A cyber charter school may be established by a local
5board of school directors or an intermediate unit if the
6procedures and requirements of this article are satisfied.

7(2) Nothing in this article shall be construed to
8preclude a school district or an intermediate unit from
9offering instruction via the Internet or other electronic
10means, except that the instruction shall not be recognized as
11a cyber charter school under this article.

12* * *

13(f) Evaluation criteria.--

14(1) A cyber charter school application submitted under
15this subdivision shall be evaluated by the department based
16on the following criteria:

17(i) The demonstrated, sustainable support for the
18cyber charter school plan by teachers, parents or
19guardians and students.

20(ii) The capability of the cyber charter school
21applicant, in terms of support and planning, to provide
22comprehensive learning experiences to students under the
23charter.

24(iii) The extent to which the programs outlined in
25the application will enable students to meet the academic
26standards under 22 Pa. Code Ch. 4 (relating to academic
27standards and assessment) or subsequent regulations
28promulgated to replace 22 Pa. Code Ch. 4.

29(iv) The extent to which the application meets the
30requirements of section 1747-A.

1[(v) The extent to which the cyber charter school
2may serve as a model for other public schools.]

3(2) Written notice of the action of the department shall
4be sent by certified mail to the applicant and published on
5the department's [World Wide Web site] publicly accessible 
6Internet website. If the application is denied, the reasons
7for denial, including a description of deficiencies in the
8application, shall be clearly stated in the notice.

9(3) Upon approval of a cyber charter school application,
10a written charter shall be developed which shall contain the
11provisions of the charter application and be signed by the
12secretary and each member of the board of trustees of the
13cyber charter school. The charter, when duly signed, shall
14act as legal authorization of the establishment of a cyber
15charter school. The charter shall be legally binding on the
16department, the cyber charter school and its board of
17trustees. The charter shall be for a period of [no less than
18three years nor more than] five years and may be renewed for
19a period of [five] ten years by the department.

20(4) The decision of the department to deny an
21application may be appealed to the appeal board.

22(5) (i) A cyber charter school may request amendments
23to its approved written charter by filing a written document
24describing the requested amendment to the department.

25(ii) Within 20 days of its receipt of the request for an
26amendment, the department shall hold a public hearing on the
27requested amendment under 65 Pa.C.S. Ch. 7 (relating to open
28meetings).

29(iii) Within 20 days after the hearing, the department
30shall grant or deny the requested amendment. Failure by the

1department to hold a public hearing and to grant or deny the
2amendments within the time period specified shall be deemed a
3denial.

4(iv) An applicant for an amendment shall have the right
5to appeal the denial of a requested amendment to the appeal
6board provided for under section 1721-A.

7* * *

8Section 19. Section 1749-A(a) of the act, added June 29,
92002 (P.L.524, No.88), is amended to read:

10Section 1749-A. Applicability of other provisions of this act
11and of other acts and regulations.

12(a) General requirements.--Cyber charter schools shall be
13subject to the following:

14(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
15436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 
16752, 753, [755,] 771, 776, 777, 808, 809, 810, 1109, 1111,
171112(a), 1205.1, 1205.2, 1301, 1302, 1310, 1317, 1317.2,
181318, 1327, 1330, 1332, 1303-A, 1513, 1517, 1518, 1521, 1523,
191531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A, 1719-A,
201721-A, 1722-A, 1723-A(a) and (b), 1724-A, [1725-A,] 1727-A,
211728-A(d), (e), (f), (g) and (h), 1729-A, 1729.1-A, 1730-A,
221731-A(a)(1) and (b) and 2014-A and Articles [XII-A,] XIII-A
23and XIV.

24(1.1) Act of July 19, 1957 (P.L.1017, No.451), known as
25the State Adverse Interest Act.

26(2) The act of July 17, 1961 (P.L.776, No.341), known as
27the Pennsylvania Fair Educational Opportunities Act.

28(3) The act of July 19, 1965 (P.L.215, No.116), entitled
29"An act providing for the use of eye protective devices by
30persons engaged in hazardous activities or exposed to known

1dangers in schools, colleges and universities."

2(4) Section 4 of the act of January 25, 1966 (1965
3P.L.1546, No.541), entitled "An act providing scholarships
4and providing funds to secure Federal funds for qualified
5students of the Commonwealth of Pennsylvania who need
6financial assistance to attend postsecondary institutions of
7higher learning, making an appropriation, and providing for
8the administration of this act."

9(5) The act of July 12, 1972 (P.L.765, No.181) entitled
10"An act relating to drugs and alcohol and their abuse,
11providing for projects and programs and grants to educational
12agencies, other public or private agencies, institutions or
13organizations."

14(6) The act of December 15, 1986 (P.L.1595, No.175),
15known as the Antihazing Law.

16(7) The Right-to-Know Law.

17(8) 65 Pa.C.S. Ch. 7 (relating to open meetings).

18(9) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
19financial disclosure).

20* * *

21Section 20. The act is amended by adding a section to read:

22Section 1752-A. Funding for cyber charter schools.

23Funding for a cyber charter school shall be provided under
24section 1725-A(a)(1), (4), (5) and (6) and as follows:

25(1) For non-special education students, the cyber
26charter school shall receive for each student enrolled, the
27lesser of the median of the amounts calculated to be paid by
28all districts of residence under section 1725-A(a)(2), or 90%
29of the amount calculated to be paid by the district of
30residence under section 1725-A(a)(2). This amount shall be

1paid by the school district of residence of each student.

2(2) For special education students, the cyber charter
3school shall receive for each student enrolled, the lesser of
4the median of the amounts calculated to be paid by all
5districts of residence under section 1725-A(a)(3), or 90% of
6the amount calculated to be paid by the district of residence
7under section 1725-A(a)(3). This amount shall be paid by the
8school district of residence of each student.

9Section 21. This act shall take effect as follows:

10(1) The following provisions shall take effect
11immediately:

12(i) The addition of section 1733-A of the act.

13(ii) This section.

14(2) The remainder of this act shall take effect in 60 days.