AN ACT

 

<-1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," in terms and courses of study,
6further providing for agreements with institutions of higher
7education; in opportunities for educational excellence,
8further providing for definitions and for concurrent
9enrollment agreements; and extensively revising charter
10school provisions.

<-11Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
12act relating to the public school system, including certain
13provisions applicable as well to private and parochial
14schools; amending, revising, consolidating and changing the
15laws relating thereto," in terms and courses of study,
16further providing for agreements with institutions of higher
17education; in opportunities for educational excellence,
18further providing for definitions and for concurrent
19enrollment agreements; and extensively revising charter
20school provisions.

21The General Assembly of the Commonwealth of Pennsylvania
22hereby enacts as follows:

<-23Section 1. Section 1525 of the act of March 10, 1949 
24(P.L.30, No.14), known as the Public School Code of 1949, added 
25July 4, 2004 (P.L.536, No.70), is amended to read:

26Section 1525. Agreements with Institutions of Higher
27Education.--Notwithstanding any other provision of law to the

1contrary, a school district, charter school, regional charter
2school, cyber charter school or area vocational-technical school
3may enter into an agreement with one or more institutions of
4higher education approved to operate in this Commonwealth in
5order to allow [resident] students to attend such institutions
6of higher education while the [resident] students are enrolled
7in the school district, charter school, regional charter school,
8cyber charter school or area vocational-technical school. The
9agreement may be structured so that high school students may
10receive credits toward completion of courses at the school
11district, charter school, regional charter school, cyber charter
12school or area vocational-technical school and at institutions
13of higher education approved to operate in this Commonwealth.

14Section 2. The definitions of "concurrent student" and
15"school entity" in section 1602-B of the act, added July 13,
162005 (P.L.226, No.46), are amended to read:

17Section 1602-B. Definitions.

18The following words and phrases when used in this article
19shall have the meanings given to them in this section unless the
20context clearly indicates otherwise:

21* * *

22"Concurrent student." A student who is enrolled in a school
23district, a charter school, a regional charter school, a cyber
24charter school, an area vocational-technical school, a nonpublic
25school, a private school or a home education program under
26section 1327.1 and who takes a concurrent course through a
27concurrent enrollment program.

28* * *

29"School entity." A school district, a charter school, a
30regional charter school, a cyber charter school or an area

1vocational-technical school.

2* * *

3Section 3. Section 1613-B of the act is amended by adding a
4subsection to read:

5Section 1613-B. Concurrent enrollment agreements.

6* * *

7(c) Charter schools, regional charter schools and cyber
8charter schools.--Charter schools, regional charter schools and
9cyber charter schools shall have the power and authority to
10enter into a concurrent enrollment agreement with an institution
11of higher education and appropriate credit shall be awarded to
12students concurrently enrolled under the agreement.

13Section 4. Section 1703-A of the act, amended June 29, 2002
14(P.L.524, No.88), is amended to read:

15Section 1703-A. Definitions.--As used in this article,

16"Administrator" shall include an employe of a charter school
17entity, including the chief administrator of a charter school
18entity and any other employe, who by virtue of the employe's
19position is responsible for taking official action of a
20nonministerial nature with regard to contracting or procurement,
21administering or monitoring grants or subsidies, managing or
22regulating staff, student and school activities or any activity
23where the official action has an economic impact of greater than
24a de minimis nature on the interests of any person.

25"Appeal board" shall mean the State Charter School Appeal
26Board established by this article.

27"Assessment" shall mean the Pennsylvania System of School
28Assessment test, the Keystone Exam or another test established
29by the State board to meet the requirements of section 2603-
30B(d)(10)(i) and required under the No Child Left Behind Act of

12001 (Public Law 107-110, 115 Stat. 1425) or its successor
2Federal statute.

3"At-risk student" shall mean a student at risk of educational
4failure because of limited English proficiency, poverty,
5community factors, truancy, academic difficulties or economic
6disadvantage.

7"Charter school" shall mean an independent public school
8established and operated under a charter from the local board of
9school directors or the governing body of an institution of
10higher education and in which students are enrolled or attend. A
11charter school must be organized as a public, nonprofit
12corporation. Charters may not be granted to any for-profit
13entity.

14"Charter school entity" shall mean a charter school, regional
15charter school or cyber charter school.

16"Charter school foundation" shall mean a nonprofit
17organization, as defined under section 501(c)(3) of the Internal
18Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
19that provides funding, resources or otherwise serves to support
20a charter school entity, either directly or through an
21affiliated entity.

22"Chief administrator" shall mean an individual appointed by a
23board of trustees to oversee and manage the operation of a
24charter school entity. The term shall not include a professional
25staff member under this article.

26["Chief executive officer" shall mean an individual appointed
27by the board of trustees to oversee and manage the operation of
28the charter school, but who shall not be deemed a professional
29staff member under this article.]

30"Commission." The Charter School Funding Advisory

1Commission.

2"Cyber charter school" shall mean an independent public
3school established and operated under a charter from the
4Department of Education and in which the school uses technology,
5including electronic or digital books, in order to provide a
6significant portion of its curriculum and to deliver a
7significant portion of instruction to its students through the
8Internet or other electronic means. A cyber charter school must
9be organized as a public, nonprofit corporation. A charter may
10not be granted to a for-profit entity.

11"Department" shall mean the Department of Education of the
12Commonwealth.

13"Educational management service provider" shall mean a for-
14profit education management organization, nonprofit charter
15management organization, school design provider, business
16manager or any other partner entity with which a board of
17trustees of a charter school entity contracts to provide
18educational design, business services, comprehensive management
19or personnel functions or to implement the charter. The term
20shall not include a charter school foundation.

21"Governing board of an institution of higher education" shall
22mean an institution of higher education subject to section
231728.1-A which elects by affirmative vote of a majority of all
24members to become an authorizer of charter schools and regional
25charter schools and which assumes the same powers and duties as
26a local board of school directors under this article. The term
27does not include a governing board of an institution of higher
28education that does not vote affirmatively to become an
29authorizer.

30"Immediate family member" shall mean a parent, spouse, child,

1brother or sister.

2"Local board of school directors" shall mean the board of
3directors of a school reform commission or other governing
4authority of a school district or a financial recovery school
5district in which a proposed or an approved charter school is
6located.

7"Nonrelated" shall mean an individual who is not an immediate
8family member.

9"Regional charter school" shall mean an independent public
10school established and operated under a charter from more than
11one local board of school directors or the governing board of an
12institution of higher education and in which students are
13enrolled or attend. A regional charter school must be organized
14as a public, nonprofit corporation. Charters may not be granted
15to any for-profit entity.

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

18"School district of residence" shall mean the school district
19in this Commonwealth in which [the parents or guardians of a
20child reside] a child resides as determined under section 1302
21and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of
22resident children to attend public schools).

23"School entity" shall mean a school district, intermediate
24unit, joint school or area vocational-technical school.

25"Secretary" shall mean the Secretary of Education of the
26Commonwealth.

27"State board" shall mean the State Board of Education of the 
28Commonwealth.

29Section 5. The act is amended by adding a section to read:

30Section 1704-A. Charter School Funding Advisory

1Commission.--(a) The Governor shall immediately convene a
2Statewide advisory commission to be known as the Charter School
3Funding Advisory Commission, to examine the financing of charter
4school entities in the public education system. The commission
5shall examine how charter school entity finances affect
6opportunities for teachers, parents, pupils and community
7members to establish and maintain schools that operate
8independently from the existing school district structure as a
9method of accomplishing the requirements of section 1702-A. The
10Office of the Budget and the department shall provide
11administrative support, meeting space and any other assistance
12required by the commission to carry out its duties under this
13section.

14(b) The commission shall consist of the following members:

15(1) Three members of the Senate appointed by the President 
16pro tempore of the Senate, in consultation with the Majority 
17Leader and the Minority Leader of the Senate, with two 
18appointees from the majority party and one appointee from the 
19minority party.

20(2) Three members of the House of Representatives appointed
21by the Speaker of the House of Representatives, in consultation
22with the Majority Leader and the Minority Leader of the House of
23Representatives, with two appointees from the majority party and
24one appointee from the minority party.

25(3) The secretary or a designee.

26(4) To represent the interests of charter school entities,
27the following members who shall be appointed by the Governor:

28(i) One member who shall represent charter schools.

29(ii) One member who shall represent regional charter
30schools.

1(iii) One member who shall represent cyber charter schools.

2(iv) One member who shall be a teacher in a charter school
3entity.

4(v) One member who shall be a parent of a child attending a
5charter school entity.

6(5) To represent the interests of school districts, the
7following members who shall be appointed by the Governor:

8(i) One member who shall be a teacher in a public school
9that is not a charter school entity.

10(ii) One member who shall represent school administrators.

11(iii) Two members who shall represent school board members.

12(iv) One member who shall be a business manager of a school
13district.

14(6) One member who shall represent an institution of higher
15education and who shall be appointed by the Governor.

16(c) Members of the commission shall be appointed within
17twenty (20) days of the effective date of this section. Any
18vacancy on the commission shall be filled by the original
19appointing authority. The commission shall select a chairman and
20vice chairman from among its membership at an organizational
21meeting. The organizational meeting shall take place no later
22than forty-five (45) days following the effective date of this
23section.

24(d) The commission shall hold meetings at the call of the
25chairman. The commission may also hold public hearings on the
26matters to be considered by the commission at locations
27throughout this Commonwealth. All meetings and public hearings
28of the commission shall be deemed public meetings for the
29purpose of 65 Pa.C.S. Ch. 7 (relating to open meetings). Ten
30members of the commission shall constitute a quorum at any

1meeting. Each member of the commission may designate another
2person to represent that member at meetings of the commission.

3(e) Commission members shall receive no compensation for
4their services but shall be reimbursed by the department for all
5necessary travel and other reasonable expenses incurred in
6connection with the performance of their duties as members.
7Whenever possible, the commission shall utilize the services and
8expertise of existing personnel and staff of State government.
9The department may utilize undistributed funds not expended,
10encumbered or committed from appropriations for grants and
11subsidies made to the department, not to exceed three hundred
12thousand dollars ($300,000), to carry out this section.

13(f) The commission shall have the following powers and
14duties:

15(1) Meet with current charter school entity operators,
16school district personnel and representatives of institutions of
17higher education within this Commonwealth.

18(2) Review charter school entity financing laws in operation
19throughout the United States.

20(3) Explore the actual cost of educating a child in the
21various charter school entities.

22(4) Evaluate and make recommendations on the following:

23(i) Appropriate assessment of fees on charter school
24entities for potentially funding a higher education authorizer
25of charter school entities, including review of independent
26authorizer fees and structures throughout the United States.

27(ii) The process by which charter school entities are funded
28under sections 1725-A and 1752-A.

29(5) Issue a report pursuant to subsection (g).

30(g) The commission shall, no later than August 31, 2014,

1issue a report of its findings and recommendations to the
2Governor, the President pro tempore of the Senate, the Majority
3Leader and the Minority Leader of the Senate, the chairman and
4minority chairman of the Appropriations Committee of the Senate,
5the chairman and minority chairman of the Education Committee of
6the Senate, the Speaker of the House of Representatives, the
7Majority Leader and the Minority Leader of the House of
8Representatives, the chairman and minority chairman of the
9Appropriations Committee of the House of Representatives and the
10chairman and minority chairman of the Education Committee of the
11House of Representatives. The recommendations of the commission
12shall not take effect unless the recommendations are approved by
13an act of the General Assembly enacted after the effective date
14of this section.

15Section 6. Section 1715-A of the act, amended or added June
1619, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is
17amended to read:

18Section 1715-A. Charter School Entity Requirements.--(a)
19Charter [schools] school entities shall be required to comply
20with the following provisions:

21(1) Except as otherwise provided in this article, a charter
22school entity is exempt from statutory requirements established
23in this act, from regulations of the State board and the
24standards of the secretary not specifically applicable to
25charter [schools] school entities. Charter [schools] school
26entities are not exempt from statutes applicable to public
27schools other than this act.

28(2) A charter school entity shall be accountable to the
29parents, the public and the Commonwealth, with the delineation
30of that accountability reflected in the charter. Strategies for

1meaningful parent and community involvement shall be developed
2and implemented by each school.

3(3) A charter school entity shall not unlawfully
4discriminate in admissions, hiring or operation.

5(4) A charter school entity shall be nonsectarian in all
6operations.

7(5) (i) A charter school entity shall not provide any
8religious instruction, nor shall it display religious objects
9and symbols on the premises of the charter school. The charter
10school entity shall provide for discrete and separate entrances
11to buildings utilized for school purposes only.

12(ii) It shall not be a violation of this section for a
13charter school entity to utilize a sectarian facility:

14(A) if the religious objects and symbols within the portions
15of the facility utilized by the school are covered or removed to
16the extent reasonably feasible; or

17(B) in which the unused portion of the facility or its
18common areas contain religious symbols and objects.

19(6) A charter school entity shall not advocate unlawful
20behavior.

21(7) A charter school or regional charter school shall only
22be subject to the laws and regulations as provided for in
23section 1732-A, or as otherwise provided for in this article.

24(7.1) A cyber charter school shall only be subject to the
25laws and regulations as provided for in section 1749-A or as
26otherwise provided for in this act.

27(8) A charter school entity shall participate in [the
28Pennsylvania State Assessment System as provided for in 22 Pa.
29Code Ch. 5 (relating to curriculum), or subsequent regulations
30promulgated to replace 22 Pa. Code Ch. 5,] assessments in the

1manner in which the school district in which the charter school
2entity is located is scheduled to participate.

3(9) A charter school entity shall provide a minimum of one
4hundred eighty (180) days of instruction or nine hundred (900)
5hours per year of instruction at the elementary level, or nine
6hundred ninety (990) hours per year of instruction at the
7secondary level. Nothing in this clause shall preclude the use
8of computer and satellite linkages for delivering instruction to
9students.

10(10) Boards of trustees and contractors of charter [schools]
11school entities shall be subject to the following statutory
12requirements governing construction projects and construction-
13related work:

14(i) The following provisions of this act:

15(A) Sections 751 and 751.1.

16(B) Sections 756 and 757 insofar as they are consistent with
17the act of December 20, 1967 (P.L.869, No.385), known as the
18"Public Works Contractors' Bond Law of 1967."

19(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
20entitled "An act regulating the letting of certain contracts for
21the erection, construction, and alteration of public buildings."

22(iii) The act of August 11, 1961 (P.L.987, No.442), known as
23the "Pennsylvania Prevailing Wage Act."

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

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

27(11) Trustees of a charter school entity shall be public
28officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to
29ethics standards and financial disclosure) and shall file a
30statement of financial interests for the preceding calendar year

1with both the State Ethics Commission and either the local board
2of school directors or the governing body of an institution of
3higher education in the case of a charter school or regional
4charter school or, in the case of a cyber charter school, the
5department, not later than May 1 of each year that members hold
6the position and of the year after a member leaves the position.
7All members of the board of trustees of a charter school entity
8shall take the oath of office as required under section 321
9before entering upon the duties of their office.

10[(12) A person who serves as an administrator for a charter
11school shall not receive compensation from another charter
12school or from a company that provides management or other
13services to another charter school. The term "administrator"
14shall include the chief executive officer of a charter school
15and all other employes of a charter school who by virtue of
16their positions exercise management or operational oversight
17responsibilities. A person who serves as an administrator for a
18charter school shall be a public official under 65 Pa.C.S. Ch.
1911 (relating to ethics standards and financial disclosure). A
20violation of this clause shall constitute a violation of 65
21Pa.C.S. § 1103(a) (relating to restricted activities), and the
22violator shall be subject to the penalties imposed under the
23jurisdiction of the State Ethics Commission.]

24(b) An individual who serves as an administrator for a
25charter school entity shall be a public employe for the purposes
26of 65 Pa.C.S. Ch. 11 and shall file a statement of financial
27interests for the preceding calendar year with the board of
28trustees not later than May 1 of each year that the person holds
29the position and of the year after the person leaves the
30position.

1(c) (1) No individual who serves as an administrator for a
2charter school entity may receive compensation from another
3charter school entity or from an educational management service
4provider, unless:

5(i) The administrator has submitted a sworn statement to the
6board of trustees of the charter school entity and the sworn
7statement details the work for the other entity and includes the
8projected number of hours, rate of compensation and projected
9duration.

10(ii) The board of trustees of the charter school entity has
11reviewed the sworn statement under subclause (i) and agreed by
12resolution to grant permission to the administrator.

13(2) A copy of the sworn statement under clause (1)(i) and
14the resolution by the board of trustees of the charter school
15entity granting the permission shall be kept on file with the
16charter school entity and the board of local school directors or
17the governing board of the institution of higher education and,
18in the case of a cyber charter school, the department.

19(3) No administrator of a charter school entity or immediate
20family member may serve as a voting member of the board of
21trustees of that individual's charter school.

22(4) (i) No administrator of a charter school entity may
23participate in the selection, award or administration of a
24contract if the person has a conflict of interest as that term
25is defined in 65 Pa.C.S. § 1102 (relating to definitions).

26(ii) An administrator who knowingly violates this clause
27commits a violation of 65 Pa.C.S. § 1103(a) (relating to
28restricted activities) and shall be subject to the penalties
29imposed under the jurisdiction of the State Ethics Commission.

30(iii) Any contract made in violation of this clause shall be

1voidable by the board of trustees of the charter school entity.

2(5) An administrator shall be immediately dismissed upon
3conviction for an offense graded as a felony, an infamous crime,
4an offense pertaining to fraud, theft or mismanagement of public
5funds or any crime involving moral turpitude.

6(d) The board of trustees of a charter school entity shall
7supply the secretary and, in the case of a charter school or
8regional charter school, the local board of school directors or
9the governing board of an institution of higher education a list
10of the amount of rental payments, which are guarantees for
11school building debt or bonds that become due during the fiscal
12year together with the amount paid on each item of indebtedness.
13Any charter school entity that elects to issue debt shall hold
14in escrow an amount sufficient to pay the annual amount of the
15sum of the principal maturing or subject to mandatory redemption
16and interest owing by the charter school entity or sinking fund
17deposit due by the charter school entity.

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

19(1) For the 2013-2014 school year and each school year
20thereafter, a charter school entity shall not accumulate an
21unassigned fund balance greater than the charter school entity
22fund balance limit, which will be determined as follows:

23 

24Charter School Entity

25Total Budgeted Expenditures

Maximum Unassigned Fund
Balance as Percentage of
Total Budgeted Expenditures

26Less than or equal to $11,999,999

12%

27Between $12,000,000 and $12,999,999

11.5%

28Between $13,000,000 and $13,999,999

11%

29Between $14,000,000 and $14,999,999

10.5%

30Between $15,000,000 and $15,999,999

10%

1Between $16,000,000 and $16,999,999

9.5%

2Between $17,000,000 and $17,999,999

9%

3Between $18,000,000 and $18,999,999

8.5%

4Greater Than or Equal to $19,000,000

8%

5(2) Any unassigned fund balance in place on June 30, 2014,
6that exceeds the charter school entity fund balance limit shall
7be refunded on a pro rata basis within 90 days to all school
8districts that paid tuition to the charter school entity on
9behalf of students enrolled in the 2012-2013 and 2013-2014
10school years. The funds may not be used to pay bonuses to any
11administrator, board of trustee member, employe, staff or
12contractor and may not be transferred to a charter school
13foundation.

14(3) For the 2014-2015 school year and each school year
15thereafter, any unassigned fund balance in excess of the charter
16school entity fund balance limit shall be refunded on a pro rata
17basis to all school districts that paid tuition to the charter
18school entity in the prior school year.

19(4) By August 15, 2014, and August 15 of each year
20thereafter, each charter school entity shall provide the
21secretary and, in the case of a charter school or regional
22charter school, the local board of school directors or the
23governing board of an institution of higher education with
24information certifying compliance with this section. The
25information shall be provided in a form and manner prescribed by
26the board and shall include information on the charter school
27entity's estimated ending unassigned fund balance expressed as a
28dollar amount and as a percentage of the charter school entity's
29total budgeted expenditures for that school year.

30Section 7. Section 1716-A(c) of the act, added June 19, 1997

1(P.L.225, No.22), is amended and the section is amended by
2adding subsections to read:

3Section 1716-A. Powers of Board of Trustees.--* * *

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

15(2) An employe of the school district or the governing board
16of an institution of higher education that chartered the charter
17school or the regional charter school may serve as a member of
18the board of trustees of the charter school or regional charter
19school without voting privileges.

20(b.2) (1) No member of the board of trustees of a charter
21school entity may participate in the selection, award or
22administration of any contract if the member has a conflict of
23interest as that term is defined in 65 Pa.C.S. § 1102 (relating
24to definitions).

25(2) Any member of the board of trustees of a charter school
26entity who in the discharge of the person's official duties
27would be required to vote on a matter that would result in a
28conflict of interest shall abstain from voting and follow the
29procedures required under 65 Pa.C.S. § 1103(j) (relating to
30restricted activities).

1(3) A member of the board of trustees of a charter school
2entity who knowingly violates this subsection commits a
3violation of 65 Pa.C.S. § 1103(a) and shall be subject to the
4penalties imposed under the jurisdiction of the State Ethics
5Commission.

6(4) A contract made in violation of this subsection shall be
7voidable by a court of competent jurisdiction, if the suit is
8commenced within ninety (90) days of the making of the contract.

9(5) No member of the board of trustees of a charter school
10entity shall be compensated for duties on the board.

11(b.3) A member of the board of trustees of a charter school
12entity shall be automatically disqualified and immediately
13removed from the board upon conviction for an offense graded as
14a felony, an infamous crime, an offense pertaining to fraud,
15theft or mismanagement of public funds, any offense pertaining
16to his official capacity as a board member or any crime
17involving moral turpitude.

18(c) The board of trustees shall comply with [the act of July
193, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
20Pa.C.S. Ch. 7 (relating to open meetings).

21(d) (1) (i) The board of trustees of a charter school
22entity shall consist of a minimum of five (5) nonrelated voting
23members.

24(ii) If a charter school entity has fewer than five (5)
25nonrelated voting members serving on its board on the effective
26date of this subsection, the charter school entity shall, within
27sixty (60) days, appoint additional members to the board to meet
28the minimum requirements of this section.

29(2) Within one (1) year of the effective date of this
30subsection, at least one (1) member of the board of trustees of

1a charter school entity shall be a parent of a child currently
2attending the charter school entity. The board member shall be
3eligible to serve only so long as the child attends the charter
4school entity.

5(e) (1) A majority of the voting members of the board of
6trustees shall constitute a quorum. If less than a majority is
7present at any meeting, no business may be transacted at the
8meeting.

9(2) The affirmative vote of a majority of all the voting
10members of the board of trustees, duly recorded, shall be
11required in order to take action on the subjects enumerated
12under subsection (a).

13(f) (1) In any case where the board of trustees of a
14charter school entity fails to pay or to provide for the
15payment of:

16(i) any indebtedness at date of maturity or date of
17mandatory redemption or on any sinking fund deposit date; or

18(ii) any interest due on such indebtedness on any interest
19payment date or on any sinking fund deposit date in accordance
20with the schedule under which the bonds were issued.

21The bank or trustee for the bonds shall notify the board of
22trustees of the charter school entity of its obligation and
23shall immediately notify the secretary and, in the case of a
24charter school or regional charter school, the local board of
25school directors or the governing board of an institution of
26higher education.

27(2) The secretary shall withhold any money due to be paid to
28the charter school pursuant to section 1725-A in any amount
29necessary to fully fund the amount held in escrow by the charter
30school entity which shall be equal to the sum of the principal

1amount maturing or subject to mandatory redemption and interest
2owing by the charter school entity or sinking fund deposit due
3by such charter school entity and shall require payover of the
4amount withheld to the bank or trustee acting as the sinking
5fund depositary for the bond issue from the escrow account.

6(3) Payments made pursuant to this article shall not be
7given priority over payments required pursuant to sections 633
8and 785 and 53 Pa.C.S. § 8125(b) (relating to security for tax
9anticipation notes and sinking fund), or an agreement pursuant
10to which the State Treasurer is required to make payment to a
11holder of debt issued by or on behalf of a school entity, all of
12which payments continue to be mandatory and ministerial.

13Section 8. Sections 1717-A(c), (d), (e), (f) and (i) and
141719-A of the act, added June 19, 1997 (P.L.225, No.22), are
15amended to read:

16Section 1717-A. Establishment of Charter School.--* * *

17(c) An application to establish a charter school shall be
18submitted to the local board of school directors of the district
19where the charter school will be located or the governing board
20of an institution of higher education by [November 15] October 1
21of the school year preceding the school year in which the
22charter school will be established except that for a charter
23school beginning in the 1997-1998 school year, an application
24must be received by July 15, 1997. In the 1997-1998 school year
25only, applications shall be limited to recipients of fiscal year
261996-1997 Department of Education charter school planning
27grants.

28(d) Within forty-five (45) days of receipt of an
29application, the local board of school directors in which the
30proposed charter school is to be located or the governing board

1of an institution of higher education shall hold at least one
2public hearing on the provisions of the charter application,
3under [the act of July 3, 1986 (P.L.388, No.84), known as the
4"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
5At least forty-five (45) days must transpire between the first
6public hearing and the final decision of the board on the
7charter application except that for a charter school beginning
8in the 1997-1998 school year, only thirty (30) days must
9transpire between the first public hearing and the final
10decision of the board.

11(e) (1) Not later than seventy-five (75) days after the
12first public hearing on the application, the local board of
13school directors or the governing board of an institution of
14higher education shall grant or deny the application. For a
15charter school beginning in the 1997-1998 school year, the local
16board of school directors shall grant or deny the application no
17later than sixty (60) days after the first public hearing.

18(2) A charter school application submitted under this
19article shall be evaluated by the local board of school
20directors or the governing board of an institution of higher
21education based on criteria, including, but not limited to, the
22following:

23(i) The demonstrated, sustainable support for the charter
24school plan by teachers, parents, other community members and
25students, including comments received at the public hearing held
26under subsection (d).

27(ii) The capability of the charter school applicant, in
28terms of support and planning, to provide comprehensive learning
29experiences to students pursuant to the adopted charter.

30(iii) The extent to which the application considers the

1information requested in section 1719-A and conforms to the
2legislative intent outlined in section 1702-A.

3[(iv) The extent to which the charter school may serve as a
4model for other public schools.]

5(3) The local board of school directors, in the case of an
6existing school being converted to a charter school, shall
7establish the alternative arrangements for current students who
8choose not to attend the charter school.

9(4) A charter application shall be deemed approved by the
10local board of school directors of a school district or the
11governing board of an institution of higher education upon
12affirmative vote by a majority of all the directors. Formal
13action approving or denying the application shall be taken by
14the local board of school directors or the governing board of an
15institution of higher education at a public meeting, with notice
16or consideration of the application given by the board, under
17[the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

18(5) Written notice of the board's action shall be sent to
19the applicant, the department and the appeal board. If the
20application is denied, the reasons for the denial, including a
21description of deficiencies in the application, shall be clearly
22stated in the notice sent by the local board of school directors
23or the governing board of an institution of higher education to
24the charter school applicant.

25(f) At the option of the charter school applicant, a denied
26application may be revised and resubmitted to the local board of
27school directors or the governing board of an institution of
28higher education. Following the appointment and confirmation of
29the Charter School Appeal Board under section 1721-A, the
30decision of the local board of school directors may be appealed

1to the appeal board. When an application is revised and
2resubmitted to the local board of school directors or the
3governing board of an institution of higher education, the board
4may schedule additional public hearings on the revised
5application. The board shall consider the revised and
6resubmitted application at the first board meeting occurring at
7least forty-five (45) days after receipt of the revised
8application by the board. For a revised application resubmitted
9for the 1997-1998 school year, the board shall consider the
10application at the first board meeting occurring at least thirty
11(30) days after its receipt. The board shall provide notice of
12consideration of the revised application under [the "Sunshine
13Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local
14school board may be taken until July 1, 1999.

15* * *

16(i) (1) The appeal board shall have the exclusive review of
17an appeal by a charter school applicant, or by the board of
18trustees of an existing charter school, of a decision made by a
19local board of directors not to grant a charter as provided in
20this section.

21[(2) In order for a charter school applicant to be eligible
22to appeal the denial of a charter by the local board of
23directors, the applicant must obtain the signatures of at least
24two per centum of the residents of the school district or of one
25thousand (1,000) residents, whichever is less, who are over
26eighteen (18) years of age. For a regional charter school, the
27applicant must obtain the signatures of at least two per centum
28of the residents of each school district granting the charter or
29of one thousand (1,000) residents from each of the school
30districts granting the charter, whichever is less, who are over

1eighteen (18) years of age. The signatures shall be obtained
2within sixty (60) days of the denial of the application by the
3local board of directors in accordance with clause (3).

4(3) Each person signing a petition to appeal denial of a
5charter under clause (2) shall declare that he or she is a
6resident of the school district which denied the charter
7application and shall include his or her printed name;
8signature; address, including city, borough or township, with
9street and number, if any; and the date of signing. All pages
10shall be bound together. Additional pages of the petition shall
11be numbered consecutively. There shall be appended to the
12petition a statement that the local board of directors rejected
13the petition for a charter school, the names of all applicants
14for the charter, the date of denial by the board and the
15proposed location of the charter school. No resident may sign
16more than one petition relating to the charter school
17application within the sixty (60) days following denial of the
18application. The department shall develop a form to be used to
19petition for an appeal.

20(4) Each petition shall have appended thereto the affidavit
21of some person, not necessarily a signer, setting forth all of
22the following:

23(i) That the affiant is a resident of the school district
24referred to in the petition.

25(ii) The affiant's residence, giving city, borough or
26township, with street and number, if any.

27(iii) That the signers signed with full knowledge of the
28purpose of the petition.

29(iv) That the signers' respective residences are correctly
30stated in the petition.

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

2(vi) That each signer signed on the date set forth opposite
3the signer's name.

4(vii) That to the best of the affiant's knowledge and
5belief, the signers are residents of the school district.

6(5) If the required number of signatures are obtained within
7sixty (60) days of the denial of the application, the applicant
8may present the petition to the court of common pleas of the
9county in which the charter school would be situated. The court
10shall hold a hearing only on the sufficiency of the petition.
11The applicant and local board of school directors shall be given
12seven (7) days' notice of the hearing. The court shall issue a
13decree establishing the sufficiency or insufficiency of the
14petition. If the petition is sufficient, the decree shall be
15transmitted to the State Charter School Appeal Board for review
16in accordance with this section. Notification of the decree
17shall be given to the applicant and the local board of
18directors.]

19(6) In any appeal, the decision made by the local board of
20directors shall be reviewed by the appeal board on the record as
21certified by the local board of directors. The appeal board
22shall give due consideration to the findings of the local board
23of directors and specifically articulate its reasons for
24agreeing or disagreeing with those findings in its written
25decision. The appeal board shall have the discretion to allow
26the local board of directors and the charter school applicant to
27supplement the record if the supplemental information was
28previously unavailable.

29(7) Not later than thirty (30) days after the date of notice
30of the acceptance of the appeal, the appeal board shall meet to

1officially review the certified record.

2(8) Not later than sixty (60) days following the review
3conducted pursuant to clause (6), the appeal board shall issue a
4written decision affirming or denying the appeal. If the appeal
5board has affirmed the decision of the local board of directors,
6notice shall be provided to both parties.

7(9) A decision of the appeal board to reverse the decision
8of the local board of directors shall serve as a requirement for
9the local board of directors of a school district or school
10districts, as appropriate, to grant the application and sign the
11written charter of the charter school as provided for in section
121720-A. Should the local board of directors fail to grant the
13application and sign the charter within ten (10) days of notice
14of the reversal of the decision of the local board of directors,
15the charter shall be deemed to be approved and shall be signed
16by the chairman of the appeal board.

17(10) All decisions of the appeal board shall be subject to
18appellate review by the Commonwealth Court.

19(j) Notwithstanding the provisions of section 696(i) or any
20other provision of law to the contrary, a school reform
21commission considering an application to establish a charter
22school in a school district of the first class shall comply with
23subsection (e)(5).

24(k) Notwithstanding the provisions of section 696(i) or any
25other provision of law to the contrary, a charter school
26applicant may appeal a decision of a school reform commission to
27deny an application to establish a charter school in a school
28district of the first class to the appeal board. Subsections
29(g), (h) and (i) shall apply to an appeal under this subsection.

30Section 1719-A. Contents of Application.--[An] (a) The

1department shall create a standard application form for charter
2school applicants to establish a charter school entity and for
3existing charter school entities seeking renewal of their
4charter. The form shall be published in the Pennsylvania
5Bulletin and posted on the department's publicly accessible
6Internet website. The form shall include all of the following
7information:

8(1) The identification of the charter school applicant.

9(2) The name of the proposed charter school entity.

10(3) The grade or age levels served by the school.

11(4) [The proposed governance structure of the charter
12school, including a description and method for the appointment
13or election of members of the board of trustees.] An
14organizational chart clearly presenting the proposed governance
15structure of the school, including lines of authority and
16reporting between the board of trustees, administrators, staff
17and any educational management service provider that will
18provide management services to the charter school entity.

19(4.1) A clear description of the roles and responsibilities
20for the board of trustees, administrators and any other
21entities, including a charter school foundation, shown in the
22organizational chart.

23(4.2) A clear description and method for the appointment or
24election of members of the board of trustees.

25(4.3) Standards for board performance, including compliance
26with all applicable laws, regulations and terms of the charter.

27(4.4) If the charter school entity intends to contract with
28an educational management service provider for services, all of
29the following:

30(i) Evidence of the educational management service

1provider's record in serving student populations, including
2demonstrated academic achievement and demonstrated management of
3nonacademic school functions, including proficiency with public
4school-based accounting, if applicable.

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

6(A) The officers, chief administrator and administrators of
7the educational management service provider.

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

9(C) Roles and responsibilities of the governing board, the
10school staff and the educational management service provider.

11(D) The scope of services, personnel and resources to be
12provided by the educational management service provider.

13(E) Performance evaluation measures and timelines.

14(F) The compensation structure, including clear
15identification of all fees to be paid to the educational
16management service provider.

17(G) Methods of contract oversight and enforcement.

18(H) Investment disclosure or the advance of moneys by the
19educational management service provider on behalf of the charter
20school entity.

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

22(iii) Disclosure and explanation of any existing or
23potential conflicts of interest between the members of the board
24of trustees and the proposed educational management service
25provider or any affiliated business entities, including a
26charter school foundation qualified as a support organization
27under the Internal Revenue Code of 1986 (Public Law 99-514, 26
28U.S.C. § 1 et seq.).

29(5) The mission and education goals of the charter school
30entity, the curriculum to be offered and the methods of

1assessing whether students are meeting educational goals.

2(6) The admission and enrollment policy [and criteria for
3evaluating the admission of students] which shall comply with
4the requirements of section 1723-A.

5(7) Procedures which will be used regarding the suspension
6or expulsion of pupils. Said procedures shall comply with
7section 1318.

8(8) Information on the manner in which community groups will
9be involved in the charter school entity planning process.

10(9) The financial plan for the charter school entity and the
11provisions which will be made for auditing the school under
12[section] sections 437 and 1728-A, including the role of any
13charter school foundation.

14(10) Procedures which shall be established to review
15complaints of parents regarding the operation of the charter
16school entity.

17(11) A description of and address of the physical facility
18in which the charter school entity will be located and the
19ownership thereof and any lease arrangements.

20(12) Information on the proposed school calendar for the
21charter school entity, including the length of the school day
22and school year consistent with the provisions of section 1502.

23(13) The proposed faculty, if already determined, and a
24professional development and continuing education plan for the
25faculty and professional staff of [a] the charter school entity.

26(14) Whether any agreements have been entered into or plans
27developed with the local school district regarding participation
28of the charter school entity's students in extracurricular
29activities within the school district. Notwithstanding any
30provision to the contrary, no school district of residence shall

1prohibit a student of a charter school entity from participating
2in any extracurricular activity of that school district of
3residence: Provided, That the student is able to fulfill all of
4the requirements of participation in such activity and the
5charter school entity does not provide the same extracurricular
6activity.

7(15) A report of criminal history record, pursuant to
8section 111, for all individuals identified in the application
9who shall have direct contact with students and a plan for
10satisfying the proper criminal history record clearances
11required for all other staff.

12(16) An official clearance statement regarding child injury
13or abuse from the Department of Public Welfare as required by 23
14Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for
15employment in schools) for all individuals identified in the
16application who shall have direct contact with students and a
17plan for satisfying the proper official clearance statement
18regarding child injury or abuse required for all other staff.

19(17) How the charter school entity will provide adequate
20liability and other appropriate insurance for the charter school
21entity, its employes and the board of trustees of the charter
22school entity.

23(18) Policies regarding truancy, absences and withdrawal of
24students, including the manner in which the charter school
25entity will monitor attendance consistent with section 1715-A(a)
26(9).

27(19) How the charter school entity will meet the standards
28included in the performance matrix developed by the department
29under section 1732-A(c)(3).

30(20) Indicate whether or not the charter school entity will

1seek accreditation by a nationally recognized accreditation
2agency, including the Middle States Association of Colleges and
3Schools or another regional institutional accrediting agency
4recognized by the United States Department of Education or an
5equivalent federally recognized body for charter school
6education.

7(b) A local board of school directors or the governing board
8of an institution of higher education may not impose additional
9terms, develop its own application or require additional
10information outside the standard application form required under
11subsection (a).

12Section 9. Section 1720-A of the act, amended July 9, 2008
13(P.L.846, No.61), is amended to read:

14Section 1720-A. Term and Form of Charter.--(a) Upon
15approval of a charter application under section 1717-A, a
16written charter shall be developed which shall contain the
17provisions of the standardized charter application under section
181719-A and which shall be signed by the local board of school
19directors of a school district, by the local boards of school
20directors of a school district in the case of a regional charter
21school, or by the governing board of an institution of higher
22education or by the chairman of the appeal board pursuant to
23section [1717-A(i)(5)] 1717-A(i) and the board of trustees of
24the charter school or regional charter school. This written
25charter, when duly signed by the local board of school directors
26of a school district, or by the local boards of school directors
27of a school district in the case of a regional charter school or
28the governing board of an institution of higher education, and
29the charter school's or regional charter school's board of
30trustees, shall act as legal authorization for the establishment

1of a charter school or regional charter school. This written
2charter shall be legally binding on both the local board of
3school directors of a school district or the governing board of
4an institution of higher education and the charter school's or
5regional charter school's board of trustees. [Except as
6otherwise provided in subsection (b), the] If the charter school
7or regional charter school contracts with an educational
8management service provider, an executed contract shall be
9signed once the charter is approved. The charter shall be for a
10period of [no less than [three (3) nor more than] five (5) years
11and]. Upon the effective date of the regulations implementing
12the performance matrix as required by section 1732-A, charter
13schools and regional charter schools that have satisfied the
14academic quality benchmark established by the department
15pursuant to section 1732-A may be renewed for [five (5)] ten
16(10) year periods upon reauthorization by the local board of
17school directors of a school district or the governing board of
18an institution of higher education or the appeal board. Charter
19schools and regional charter schools that have not satisfied the
20academic quality benchmark established by the department
21pursuant to section 1732-A, may be renewed for five (5) year
22periods upon reauthorization by the local board of school
23directors or the governing board of an institution of higher
24education or the appeal board. A charter will be granted only
25for a school organized as a public, nonprofit corporation.

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

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

5(2) A one-year renewal pursuant to paragraph (1) shall not
6be considered an adjudication and may not be appealed to the
7State Charter School Appeal Board.

8(3) A governing board of a school district of the first
9class does not have the authority to renew a charter for
10successive one (1) year periods] (Reserved).

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

16(2) Within thirty-five (35) days of its receipt of the
17request for an amendment, the local board of school directors or
18the governing board of an institution of higher education shall
19hold a public hearing on the requested amendment under 65
20Pa.C.S. Ch. 7 (relating to open meetings).

21(3) Within thirty-five (35) days after the hearing, the
22local board 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 an
28approval.

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

1requested amendment to the appeal board provided for under
2section 1721-A.

3Section 10. Section 1721-A(a) and (e) of the act, added June
419, 1997 (P.L.225, No.22), are amended to read:

5Section 1721-A. State Charter School Appeal Board.--(a) The
6State Charter School Appeal Board shall consist of the Secretary
7of Education and [six (6)] the following members who shall be
8appointed by the Governor by and with the consent of a majority
9of all the members of the Senate. [Appointments by the Governor
10shall not occur prior to January 1, 1999.] The Governor shall
11select the chairman of the appeal board to serve at the pleasure
12of the Governor. The members shall include:

13(1) A parent of a school-aged child enrolled in a charter
14school entity.

15(2) A school board member.

16(3) A certified teacher actively employed in a public
17school.

18(4) A faculty member or administrative employe of an
19institution of higher education.

20(5) A member of the business community.

21(6) A member of the State Board of Education.

22(7) An administrator of a charter school entity.

23(8) A member of the board of trustees of a charter school
24entity.

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 entity. Any appointment
4to fill any vacancy shall be for the period of the unexpired
5term or until a successor is appointed and qualified.

6* * *

7(e) Meetings of the appeal board shall be conducted under
8[the act of July 3, 1986 (P.L.388, No.84), known as the
9"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
10Documents of the appeal board shall be subject to the act of
11[June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
12Know Law.] February 14, 2008 (P.L.6, No.3), known as the "Right-
13to-Know Law."

14Section 11. Section 1722-A of the act, amended November 17,
152010 (P.L.996, No.104), is amended to read:

16Section 1722-A. Facilities.--(a) A charter school entity
17may be located in an existing public school building, in a part
18of an existing public school building, in space provided on a
19privately owned site, in a public building or in any other
20suitable location. A charter school entity has a right of first
21refusal to purchase or lease an existing public school building,
22a part of an existing public school building or space in a
23public building at or below fair market value.

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

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

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

23(2) Any agreement entered into by a charter school[, cyber
24charter school or] entity, 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
29[schools, cyber charter schools and] school entities, associated
30nonprofit foundations and associated nonprofit corporations that

1filed an appeal from an assessment, as provided in Article V of
2The General County Assessment Law, prior to the effective date
3of this 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 entity
10facility.

11(2) If, in the case of a charter school or regional charter 
12school, the local board of school directors or the governing
13board of an institution of higher education reasonably believes
14that alcoholic beverages have been made available for
15consumption, purchase or sale in the charter school or regional
16charter school facility, the local board of school directors or
17the governing board of an institution of higher education shall
18notify the department.

19(3) If alcoholic beverages have been made available for
20consumption, purchase or sale in a charter school entity
21facility, the secretary shall order the following forfeitures
22against the charter school entity:

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

24(ii) A fine of $5,000 for the second or subsequent
25violation.

26(4) The charter school entity may appeal the order of the
27secretary under 2 Pa.C.S. Chs. 5 (relating to practice and
28procedure) and 7 (relating to judicial review).

29Section 12. Section 1723-A(a), (b) and (d) of the act,
30amended June 26, 1999 (P.L.394, No.36) and July 9, 2008

1(P.L.846, No.61), are amended to read:

2Section 1723-A. [Enrollment] Admission and Enrollment
3Requirements.--(a) (1) All resident children in this
4Commonwealth who submit a completed enrollment form in
5accordance with clause (3) qualify for admission to a charter
6school entity within the provisions of subsection (b). [If] In
7the case of a charter school, if more students apply to the
8charter school than the number of attendance slots available in
9the school, then students must be selected on a random basis
10from a pool of [qualified applicants meeting the established
11eligibility criteria and submitting an application] eligible
12applicants who have submitted an enrollment form in accordance
13with clauses (3) and (4) by the deadline established by the
14charter school, except that the charter school may give
15preference in enrollment to a child of a parent who has actively
16participated in the development of the charter school and, to
17siblings of students presently enrolled in the charter school.
18First preference shall be given to students who reside in the
19district or districts in which the charter school is physically
20located.

21(2) If a charter school has a waiting list following its
22initial selection of eligible applicants under clause (1), the
23charter school shall select eligible applicants from the waiting
24list as spaces become available. All children shall be assigned
25to the waiting list on a random basis. When selecting eligible
26applicants from the waiting list, a charter school shall give
27first preference to students as provided under clause (1) and to
28those who reside in the district or districts in which the
29charter school is physically located until the charter school
30again reaches its maximum capacity of students. If a charter

1school has a waiting list, once the charter school has exhausted
2the waiting list of resident children, it may then enroll
3children on the waiting list who reside outside of the district.
4Nonresident children shall also be selected on a random basis.
5If a charter school and the school district from which it is
6authorized have voluntarily capped enrollment or the district
7attempts to involuntarily cap enrollment of resident students
8and the charter school has enrolled the maximum number of
9resident students, it may enroll students residing outside of
10the district.

11(3) The department, in consultation with representatives of
12charter school entities, shall develop a standard enrollment
13form that shall be used by all eligible applicants to apply to a
14charter school entity. The standard enrollment form shall only
15request information necessary to allow the charter school entity
16to identify the student, grade level and residency, including:

17(i) The student's name, physical address, telephone number,
18age, birth date and current grade level.

19(ii) The name, physical address, telephone number and e-mail
20address of the student's parent or guardian.

21(4) The standard enrollment form shall be made physically
22available at each charter school entity, in a form that complies
23with Federal and State law and posted on the publicly accessible
24Internet website of each charter school entity, if available. A
25charter school entity may accept the enrollment form via
26electronic means.

27(5) When a student applies to a charter school entity, a
28charter school entity shall not require or request information
29beyond the contents of the standard enrollment form developed by
30the department.

1(6) Nothing in this section shall prohibit a charter school
2entity from requesting the submission of additional records and
3information that public schools are entitled to after a student 
4is accepted for admission to a charter school entity.

5As used in this subsection:

6"Eligible applicant" shall mean a student who is seeking to
7enter a grade level offered by the charter school and meets the
8requirements of 22 Pa. Code §§ 11.12 (relating to school age),
911.13 (relating to compulsory school age), 11.14 (relating to
10admission to kindergarten when provided), 11.15 (relating to
11admission of beginners), 11.16 (relating to early admission of
12beginners) and 12.1 (relating to free education and attendance)
13and student residency requirements.

14(b) (1) A charter school entity shall not discriminate in
15its admission policies or practices on the basis of intellectual
16ability, [except as provided in paragraph (2), or] athletic
17ability, measures of achievement or aptitude, status as a person
18with a disability, proficiency in the English language or any
19other basis that would be illegal if used by a school district.

20(2) A charter school entity may limit [admission] its
21academic focus to a particular grade level[,] or a targeted
22population group composed of at-risk students[, or areas of
23concentration of the school such as mathematics, science or the
24arts. A charter school may establish reasonable criteria to
25evaluate prospective students which shall be outlined in the
26school's charter.] or a specialized area or accelerated program
27of study, such as mathematics, science or the arts.

28* * *

29(d) (1) Enrollment of students in a charter school [or
30cyber charter school] entity, or expansion of a charter school,

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

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

12Section 13. 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, which shall
26be one-half of the amounts calculated in 24 Pa.C.S. §§ 8326
27(relating to contributions by the Commonwealth) and 8535
28(relating to payments to school entities by Commonwealth). The
29charter school shall be considered a school district and shall
30make payments by employers to the Public School Employees'

1Retirement System and payments on account of Social Security as
2established under 24 Pa.C.S. Pt. IV (relating to retirement for
3school employees). The market value/income aid ratio used in
4calculating payments as prescribed in this subsection shall be
5the market value/income aid ratio for the school district in
6which the charter school is located or, in the case of a
7regional charter school, shall be a composite market
8value/income aid ratio for the participating school districts as
9determined by the department. Except as otherwise provided,
10employes of a charter school shall make regular member
11contributions as required for active members under 24 Pa.C.S.
12Pt. IV. If the employes of the charter school participate in
13another retirement plan, then those employes shall have no
14concurrent claim on the benefits provided to public school
15employes under 24 Pa.C.S. Pt. IV. For purposes of this
16subsection, a charter school shall be deemed to be a "public
17school" as defined in 24 Pa.C.S. § 8102 (relating to
18definitions). Nothing in this article shall be construed to
19require the Commonwealth to make contributions, from
20appropriated funds, as provided in 24 Pa.C.S. § 8329(a)
21(relating to payments on account of social security deductions
22from appropriations) on account of Social Security payments made
23by a charter school.

24(d) Every employe of a charter school shall be provided [the
25same] similar health care benefits as the employe would be
26provided if he or she were an employe of the local district. The
27local board of school directors may require the charter school
28to provide [the same] similar terms and conditions with regard
29to health insurance as the collective bargaining agreement of
30the school district to include employe contributions to the

1district's health benefits plan. The charter school shall make
2any required employer's contribution to the district's health
3plan to an insurer, a local board of school directors or a
4contractual representative of school employes, whichever is
5appropriate to provide the required coverage.

6* * *

7Section 14. Section 1725-A of the act, amended or added June
819, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35) and
9June 29, 2002 (P.L.524, No.88), is amended to read:

10Section 1725-A. Funding for Charter Schools and Regional
11Charter Schools.--(a) [Funding for a charter school shall be
12provided in the following manner:

13(1) There shall be no tuition charge for a resident or
14nonresident student attending a charter school.

15(2) For non-special education students, the charter school
16shall receive for each student enrolled no less than the
17budgeted total expenditure per average daily membership of the
18prior school year, as defined in section 2501(20), minus the
19budgeted expenditures of the district of residence for nonpublic
20school programs; adult education programs; community/junior
21college programs; student transportation services; for special
22education programs; facilities acquisition, construction and
23improvement services; and other financing uses, including debt
24service and fund transfers as provided in the Manual of
25Accounting and Related Financial Procedures for Pennsylvania
26School Systems established by the department. This amount shall
27be paid by the district of residence of each student.

28(3) For special education students, the charter school shall
29receive for each student enrolled the same funding as for each
30non-special education student as provided in clause (2), plus an

1additional amount determined by dividing the district of
2residence's total special education expenditure by the product
3of multiplying the combined percentage of section 2509.5(k)
4times the district of residence's total average daily membership
5for the prior school year. This amount shall be paid by the
6district of residence of each student.

7(4) A charter school may request the intermediate unit in
8which the charter school is located to provide services to
9assist the charter school to address the specific needs of
10exceptional students. The intermediate unit shall assist the
11charter school and bill the charter school for the services. The
12intermediate unit may not charge the charter school more for any
13service than it charges the constituent districts of the
14intermediate unit.

15(5) Payments shall be made to the charter school in twelve
16(12) equal monthly payments, by the fifth day of each month,
17within the operating school year. A student enrolled in a
18charter school shall be included in the average daily membership
19of the student's district of residence for the purpose of
20providing basic education funding payments and special education
21funding pursuant to Article XXV. If a school district fails to
22make a payment to a charter school as prescribed in this clause,
23the secretary shall deduct the estimated amount, as documented
24by the charter school, from any and all State payments made to
25the district after receipt of documentation from the charter
26school.

27(6) Within thirty (30) days after the secretary makes the
28deduction described in clause (5), a school district may notify
29the secretary that the deduction made from State payments to the
30district under this subsection is inaccurate. The secretary

1shall provide the school district with an opportunity to be
2heard concerning whether the charter school documented that its
3students were enrolled in the charter school, the period of time
4during which each student was enrolled, the school district of
5residence of each student and whether the amounts deducted from
6the school district were accurate.

7(b) The Commonwealth shall provide temporary financial
8assistance to a school district due to the enrollment of
9students in a charter school who attended a nonpublic school in
10the prior school year in order to offset the additional costs
11directly related to the enrollment of those students in a public
12charter school. The Commonwealth shall pay the school district
13of residence of a student enrolled in a nonpublic school in the
14prior school year who is attending a charter school an amount
15equal to the school district of residence's basic education
16subsidy for the current school year divided by the district's
17average daily membership for the prior school year. This payment
18shall occur only for the first year of the attendance of the
19student in a charter school, starting with school year 1997-
201998. Total payments of temporary financial assistance to school
21districts on behalf of a student enrolling in a charter school
22who attended a nonpublic school in the prior school year shall
23be limited to funds appropriated for this program in a fiscal
24year. If the total of the amount needed for all students
25enrolled in a nonpublic school in the prior school year who
26enroll in a charter school exceeds the appropriation for the
27temporary financial assistance program, the amount paid to a
28school district for each qualifying student shall be pro rata
29reduced. Receipt of funds under this subsection shall not
30preclude a school district from applying for a grant under

1subsection (c).

2(c) The Commonwealth shall create a grant program to provide
3temporary transitional funding to a school district due to the
4budgetary impact relating to any student's first-year attendance
5at a charter school. The department shall develop criteria which
6shall include, but not be limited to, the overall fiscal impact
7on the budget of the school district resulting from students of
8a school district attending a charter school. The criteria shall
9be published in the Pennsylvania Bulletin. This subsection shall
10not apply to a public school converted to a charter school under
11section 1717-A(b). Grants shall be limited to funds appropriated
12for this purpose.] Funding for a charter school or regional
13charter school shall be provided in the following manner and
14shall not be in violation of any applicable Federal or State
15law, regulation or agreement:

16(1) There shall be no tuition charge for a resident or
17nonresident student attending a charter school or a regional
18charter school.

19(2) The following apply:

20(i) For nonspecial education students, the charter school or
21regional charter school shall receive for each student enrolled
22no less than the budgeted total expenditure per average daily
23membership of the prior school year, as defined in section
242501(20), minus the budgeted expenditures of the district of
25residence for all of the following:

26(A) Nonpublic school programs.

27(B) Adult education programs.

28(C) Community and junior college programs.

29(D) Student transportation services.

30(E) Special education programs.

1(F) Facilities acquisition, construction and improvement
2services.

3(G) Programs and services to the extent they are funded from
4the proceeds of competitive grants from private or public
5resources or from contributions or donations from private
6sources.

7(H) Other financing uses, including debt service and fund
8transfers as provided in the Manual of Accounting and Related
9Financial Procedures for Pennsylvania School Systems established
10by the department.

11(I) Thirty per centum of the employer's retirement
12contributions on behalf of employes enrolled in the Public
13School Employees' Retirement System.

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

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 or regional charter school disputes
30the accuracy of a district's calculation under this clause, the

1charter school or regional charter school shall file a notice of
2the dispute with the secretary, who shall hold a hearing to
3determine the accuracy of the district's calculation within
4thirty (30) days of the notice.

5(C) The secretary shall determine the accuracy of the
6district's calculation within thirty (30) days of the hearing.

7(D) The district shall bear the burden of production and
8proof with respect to its calculation under this clause.

9(E) The district shall be liable for the reasonable legal
10fees incurred by a charter school or regional charter school if
11the charter school or regional charter school is the
12substantially prevailing party after a hearing under this
13section. The charter school or regional charter school shall be
14liable for the reasonable legal fees incurred by the district if
15the district is the substantially prevailing party after a
16hearing under this section.

17(F) All decisions of the secretary under this clause shall
18be subject to appellate review by Commonwealth Court.

19(3) The following apply:

20(i) For special education students, the charter school or
21regional charter school shall receive for each student enrolled
22the same funding as for each nonspecial education student as
23provided under clause (2), plus an additional amount determined
24by dividing the total special education expenditure of the
25school district of residence by the product of:

26(A) the combined percentage of section 2509.5(k) applicable
27to the school year; and

28(B) the total average daily membership of the school
29district of residence for the prior school year.

30(ii) The amount under subclause (i) shall be paid by the

1school district of residence of each student by deduction and
2transfer from all State payments due to the district as provided
3under clause (5).

4(iii) If a charter school or regional charter school
5disputes the accuracy of a district's calculation under this
6clause, the charter school or regional charter school shall file
7a notice of the dispute with the secretary, who shall hold a
8hearing to determine the accuracy of the district's calculation
9within thirty (30) days of the notice.

10(iv) The secretary shall determine the accuracy of the
11district's calculation within thirty (30) days of the hearing.

12(v) The district shall bear the burden of production and
13proof with respect to its calculation under this clause.

14(vi) The district shall be liable for the reasonable legal
15fees incurred by a charter school or regional charter school if
16the charter school or regional charter school is the
17substantially prevailing party after a hearing under this
18section. The charter school or regional charter school shall be
19liable for the reasonable legal fees incurred by the school
20district if the district is the substantially prevailing party
21after a hearing under this section.

22(vii) All decisions of the secretary under this section
23shall be subject to appellate review by Commonwealth Court.

24(4) A charter school or regional charter school may request
25the intermediate unit or school district in which the charter
26school or regional charter school is located to provide services
27to assist the charter school or regional charter school to
28address the specific needs of nonspecial education and
29exceptional students. The intermediate unit or school district
30shall provide the charter school or regional charter school with

1such services and bill the charter school or regional charter
2school for the services. The intermediate unit or school
3district may not charge the charter school or regional charter
4school more for any service than it charges the constituent
5districts of the intermediate unit. Nothing under this clause
6shall preclude an intermediate unit or school district from
7contracting with a charter school or regional charter school to
8provide the intermediate unit or school district with services
9to assist the intermediate unit or school district to address
10specific needs of nonspecial education and special education
11students.

12(5) Beginning in the 2014-2015 school year, the following
13apply:

14(i) Payments shall be made to the charter school or regional
15charter school in twelve (12) equal monthly payments, according
16to the established monthly unipay schedule within the operating
17school year or any subsequent school year.

18(ii) Except as provided for in subclauses (vi) and (viii),
19payments shall be made directly by the secretary deducting and
20paying to the charter school or regional charter school the
21estimated amount, as documented by the charter school or
22regional charter school, from:

23(A) all State payments due to the school district of
24residence; or

25(B) if no payments are due to the school district of
26residence, from all State payments reasonably expected to be due
27in the next established monthly unipay schedule, after receipt
28of documentation from the charter school or regional charter
29school as to its enrollment.

30(iii) At least thirty (30) days prior to the scheduled

1payment date each month, a charter school or regional charter
2school shall provide to the department and to the school
3district of residence of each student enrolled in the charter
4school or regional charter school, documentation of the charter
5school's or regional charter school's enrollment, on a form to
6be developed by the secretary within sixty (60) days of the
7effective date of this section. The form, which shall be
8developed in consultation with representatives of charter
9schools or regional charter schools and school districts, shall
10require the charter school or regional charter school to provide
11to the department and to the school district of residence of
12each student enrolled in the charter school or regional charter
13school, documentation of each student's current enrollment in
14the charter school or regional charter school and current
15residence in the school district, including the following
16information:

17(A) Student's name.

18(B) Student's home address.

19(C) Name and telephone number of student's parent or
20guardian.

21(D) Student's date of birth.

22(E) Student's grade level.

23(F) Type of school in which student was previously enrolled.

24(G) Student's date of enrollment.

25(H) Whether each student is being educated under an
26individualized education plan under the Individuals with
27Disabilities Education Act (Public Law 91-230, 20 U.S.C. § 1400
28et seq.).

29(I) The tuition amount due on account of each student.

30(J) The total amount due from the school district for that

1month.

2(K) Copies of the actual documents used by the charter
3school or regional charter school to verify each student's
4residence in the school district.

5(iv) The secretary shall not make payments under this
6section until the charter school or regional charter school
7provides the department and the school district of residence
8with a completed form and accompanying documentation as required
9under this clause. A charter school or regional charter school
10may make only one (1) payment request per month under this
11clause. After a charter school or regional charter school makes
12a payment request under this clause, any necessary corrections
13or adjustments may be made in the next subsequent monthly
14payment request.

15(v) The secretary's obligation to make payments under this
16section is mandatory and ministerial, except that payments made
17pursuant to this article shall not be given priority over
18payments required pursuant to sections 633 and 785 and 53
19Pa.C.S. § 8125(b) (relating to security for tax anticipation
20notes and sinking fund), or an agreement pursuant to which the
21Commonwealth is required to make payment to a holder of debt
22issued by or on behalf of a school entity, all of which payments
23continue to be mandatory and ministerial. If payments required
24under sections 633 and 785 and 53 Pa.C.S. § 8125(b) preclude the
25timely payment of funds to a charter school or regional charter
26school under this section or will cause the board of school
27directors of a school district to fail to pay or provide for
28payment under this subsection, nothing shall preclude the
29secretary from withholding funds from any and all State payments
30made to the school district for the operating school year or for

1any subsequent operating school year.

2(vi) If there are insufficient State payments due to a
3school district in the established monthly unipay schedule to
4cover all charter school or regional charter school deductions
5and transfers, the school district shall be responsible for
6paying the unpaid balance directly to the charter school or
7regional charter school not more than ten (10) days following
8the established monthly unipay schedule.

9(vii) A student enrolled in a charter school or regional
10charter school shall be included in the average daily membership
11of the student's school district of residence for the purpose of
12providing basic education funding payments and special education
13funding under Article XXV.

14(viii) Notwithstanding any other provision of law, for each
15year in which a school district of the first class that has been
16declared to be distressed by the Secretary of Education under
17section 691 continues to be distressed, payments to charter
18schools or regional charter schools shall be made by the school
19district of the first class and not by the secretary as provided
20in clause (ii). The school district of the first class shall
21provide for payment to charter schools and regional charter
22schools as follows:

23(A) Payments shall be made to the charter school or regional
24charter school in twelve (12) equal monthly payments, according
25to the established monthly unipay schedule, within the operating
26school year.

27(B) Payments shall be made directly by paying to the charter
28school or regional charter school the estimated amount, as
29documented by the charter school or regional charger school,
30after receipt of documentation from the charter school or

1regional charter school including the information required by
2this section to be supplied by charter schools and regional
3charter schools in other school districts at least thirty (30)
4days prior to the scheduled payment date each month.

5(C) If the school district of the first class fails to make
6a payment to a charter school entity as prescribed in this
7clause, the secretary shall deduct the estimated amount, as
8documented by the charter school entity, from any and all State
9payments made to the district after receipt of documentation
10from the charter school entity. This section shall not be
11subject to suspension by a school reform commission or a school
12district of the first class.

13(6) The following apply:

14(i) Within thirty (30) days after the payment is made to the
15charter school or regional charter school as described under
16clause (5), a school district may notify the secretary that the
17estimated amount, as documented by the charter school or
18regional charter school, is inaccurate.

19(ii) Within thirty (30) days of the notice by the school
20district under subclause (i), the secretary shall provide the
21school district with a hearing concerning whether the charter
22school or regional charter school documented that students were
23enrolled in the charter school or regional charter school, the
24period of time during which each student was enrolled in the
25charter school or regional charter school, the school district
26of residence of each student enrolled in the charter school or
27regional charter school and whether the amounts deducted from or
28paid by the school district were accurate.

29(iii) The burden of proof and production at the hearing
30shall be on the school district. A hearing shall not be held

1before the secretary deducts and transfers to the charter school
2or regional charter school the amount estimated by the charter
3school or regional charter school.

4(iv) The secretary shall determine the accuracy of the
5amount documented by the charter school or regional charter
6school and make any necessary payment adjustment within thirty
7(30) days of the hearing.

8(v) The school district shall be liable for the reasonable
9legal fees incurred by a charter school or regional charter
10school if the charter school or regional charter school is the
11substantially prevailing party after a hearing under this
12section. The charter school or regional charter school shall be
13liable for the reasonable legal fees incurred by the school
14district if the school district is the substantially prevailing
15party after a hearing under this section.

16(vi) All decisions of the secretary under this section shall
17be subject to appellate review by Commonwealth Court.

18(vii) Supersedeas shall not be granted to the secretary or
19any party to the proceeding on an appeal from the decision of
20the secretary under this section; and, absent a court order, the
21secretary shall not hold any payments in escrow.

22(d) It shall be lawful for any charter school or regional
23charter school to receive, hold, manage and use, absolutely or
24in trust, any devise, bequest, grant, endowment, gift or
25donation of any property, real or personal and/or mixed, which
26shall be made to the charter school or regional charter school
27for any of the purposes of this article.

28(e) It shall be unlawful for any trustee of a charter school
29or regional charter school or any board of trustees of a charter
30school or regional charter school or any other person affiliated

1in any way with a charter school or regional charter school to
2demand or request, directly or indirectly, any gift, donation or
3contribution of any kind from any parent, teacher, employe or
4any other person affiliated with the charter school or regional
5charter school as a condition for employment or enrollment
6and/or continued attendance of any pupil. Any donation, gift or
7contribution received by a charter school or regional charter
8school shall be given freely and voluntarily.

9(f) A charter school or regional charter school may not 
10provide discounts to a school district or waive payments under 
11this section for any student.

12(g) The department shall develop a transition procedure to
13be able to recoup in subsequent fiscal years any payments made
14in error to a charter school or regional charter school as a
15result of direct payment by the department to the charter school
16or regional charter school.

17Section 15. Section 1728-A(a) and (b) of the act, added June
1819, 1997 (P.L.225, No.22), are amended and the section is
19amended by adding subsections to read:

20Section 1728-A. Annual Reports and Assessments.--(a) (1)
21The local board of school directors or the governing board of an
22institution of higher education shall annually assess whether
23each charter school or regional charter school is meeting the
24goals of its charter and shall conduct a comprehensive review
25prior to granting a [five (5) year] renewal of the charter. The
26local board of school directors or the governing board of an
27institution of higher education shall have ongoing access to the
28records and facilities of the charter school or regional charter
29school to ensure that the charter school or regional charter
30school is in compliance with its charter and this act and that

1requirements for testing, civil rights and student health and
2safety are being met.

3(2) Ongoing access to a charter school's or regional charter
4school's records shall mean that the local board of school
5directors or the governing board of an institution of higher
6education shall have access to records such as financial
7reports, financial audits, aggregate standardized test scores
8without student-identifying information and teacher
9certification and personnel records.

10(3) Charter schools and regional charter schools shall
11comply fully with the requirements of the Family Educational
12Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. §
131232g) and associated regulations. No personally identifiable
14information from education records shall be provided by the
15charter school or regional charter school to the school district
16except in compliance with the Family Educational Rights and
17Privacy Act of 1974.

18(b) In order to facilitate the local board's or the
19governing board of the institution of higher education's review
20and secretary's report, each charter school or regional charter
21school shall submit an annual report no later than August 1 of
22each year to the local board of school directors or the
23governing board of the institution of higher education and the
24secretary in the form prescribed by the secretary.

25* * *

26(d) A charter school entity shall form an independent audit
27committee of its board members which shall review at the close
28of each fiscal year a complete certified audit of the operations
29of the charter school entity. The audit shall be conducted by a
30qualified independent certified public accountant. The audit

1shall be conducted under generally accepted audit standards of
2the Governmental Accounting Standards Board and shall include
3the following:

4(1) An enrollment test to verify the accuracy of student
5enrollment and reporting to the State.

6(2) Full review of expense reimbursements for board members
7and administrators, including sampling of all reimbursements.

8(3) Review of internal controls, including review of
9receipts and disbursements.

10(4) Review of annual Federal and State tax filings,
11including the Internal Revenue Service Code Form 990, Return of
12Organization Exempt from Income Tax and all related schedules
13and appendices for the charter school and charter school
14foundation, if applicable.

15(5) Review of the financial statements of any charter school
16foundation.

17(6) Review of the selection and acceptance process of all
18contracts publicly bid pursuant to section 751.

19(7) Review of all board policies and procedures with regard
20to internal controls, code of ethics, conflicts of interest,
21whistle-blower protections, complaints from parents or the
22public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
23meetings), compliance with the "Right-to-Know Law," finances,
24budgeting, audits, public bidding and bonding.

25(e) The certified audit under subsection (d) and the annual
26budget under subsection (g) are public documents and shall be
27made available on the school district's publicly accessible
28Internet website and the charter school entity's publicly
29accessible Internet website, if applicable.

30(f) A charter school entity may be subject to an annual

1audit by the Auditor General, in addition to any other audits
2required by Federal law or this article.

3(g) A charter school entity shall annually provide the 
4department and, in the case of a charter school or regional 
5charter school, shall annually provide the school district, with 
6a copy of the annual budget for the operation of the charter 
7school entity that identifies the following:

8(1) The source of funding for all expenditures as part of
9its reporting under subsection (a).

10(2) Where funding is provided by a charter school
11foundation, the amount of funds and a description of the use of
12the funds.

13(3) The salaries of all administrators of the charter school
14entity.

15(4) All expenditures to an educational management service
16provider.

17(h) (1) Notwithstanding any other provision of law, a
18charter school entity and any affiliated charter school
19foundation shall make copies of its annual Federal and State tax
20filings available upon request and on the foundation's or
21charter school entity's publicly accessible Internet website, if
22applicable, including Internal Revenue Service Code Form 990,
23Return of Organization Exempt from Income Tax and all related
24schedules and appendices.

25(2) The charter school foundation shall also make copies of
26its annual budget available upon request and on the foundation's
27or the charter school entity's publicly accessible Internet
28website within thirty (30) days of the close of the foundation's
29fiscal year.

30(3) The annual budget shall include the salaries of all

1employes of the charter school foundation.

2Section 16. The act is amended by adding sections to read:

3Section 1728.1-A. Governing boards of institutions of higher
4education as authorizers of charter schools and regional charter
5schools.--(a) The governing board of an institution of higher
6education may elect, by an affirmative vote of a majority of all
7members, to become an authorizer of charter schools or regional
8charter schools subject to the following:

9(1) An institution of higher education of at least 2,000
10enrolled students that confers a doctoral degree in education
11and is domiciled and headquartered with its principal physical
12location in this Commonwealth may authorize a charter school
13anywhere in this Commonwealth. For purposes of this paragraph,
14the term "physical location" includes a location with qualified
15on-site administrative staff responsible for the overall
16administrative operation of all educational activities,
17including, but not limited to, instructional oversight,
18counseling, advising, library services and maintenance of
19academic records.

20(2) An institution of higher education of at least 2,000
21enrolled students that confers a bachelor's degree in education
22if completed in four (4) years of full-time study and does not
23confer a doctoral degree in education may only authorize a
24charter school in school districts in the county where the
25institution has its primary campus and operations.

26(3) An institution of higher education of at least 2,000
27enrolled students that does not confer a bachelor's degree in
28education or a doctoral degree in education may only authorize a
29charter school within the school district where the institution
30has its primary campus and operations.

1(b) The governing board of an institution of higher
2education may not elect to become an authorizer of charter
3schools and regional schools prior to July 1, 2015.

4(c) All hearings held by the governing board of an
5institution of higher education under this article shall be
6conducted in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating
7to practice and procedure of Commonwealth agencies).

8Section 1728.2-A. Charter Authorizer Accountability.--(a)
9Each local board of school directors of a district and the
10governing board of an institution of higher education shall be
11required to submit to the department an annual report
12summarizing:

13(1) The strategic vision for chartering and progress toward
14achieving that vision.

15(2) The academic and financial performance of all operating
16public charter schools and regional charter schools overseen by
17the local board or the governing board of an institution of
18higher education, according to the performance expectations for
19public charter schools set forth in this act.

20(3) The status of the local board of school directors' or
21the governing board of an institution of higher education's
22public charter school and regional charter school portfolio,
23identifying all public charter schools in each of the following
24categories: (i) approved, but not open; (ii) open and operating;
25and (iii) closed, including the year closed and the reason for
26closure.

27(4) The authorizing functions provided by the local board of
28school directors or the governing board of an institution of
29higher education to the public charter schools and regional 
30charter schools under its purview, including the authorizer's

1operating costs and expenses detailed in annual audited
2financial statements that conform to generally accepted
3accounting 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 including, but not limited to, those 
20of the National Association 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
29regional charter schools and fail to provide adequate authorizer
30oversight or intervention that may include a corrective action

1plan for the authorizer and other sanctions deemed necessary by
2the department.

3Section 17. Section 1729-A(a), (b), (c) and (d) of the act,
4added June 19, 1997 (P.L.225, No.22), are amended to read:

5Section 1729-A. Causes for Nonrenewal or Termination.--(a)
6During the term of the charter or at the end of the term of the
7charter, the local board of school directors or the governing
8board of an institution of higher education may choose to revoke
9or not to renew the charter based on any of the following:

10(1) One or more material violations of any of the
11conditions, standards or procedures contained in the written
12charter signed pursuant to section 1720-A.

13(2) Failure to meet the requirements for student performance
14[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
15subsequent regulations promulgated to replace 22 Pa. Code Ch. 5]
16assessments or failure to meet any performance standard set
17forth in the written charter signed pursuant to section [1716-A]
181720-A.

19(3) Failure to meet generally accepted standards of fiscal
20management or audit requirements.

21(4) Violation of provisions of this article.

22(5) Violation of any provision of law from which the charter
23school entity has not been exempted, including Federal laws and
24regulations governing children with disabilities.

25[(6) The charter school has been convicted of fraud.]

26* * *

27(b) [A member of the board of trustees who is convicted of a
28felony or any crime involving moral turpitude shall be
29immediately disqualified from serving on the board of trustees.]
30If, after a hearing under this section, a local board of school

1directors or the governing board of an institution of higher
2education or, in the case of a cyber charter school, the
3department proves by a preponderance of the evidence that an
4administrator or board member of a charter school entity has
5violated this article, the terms and conditions of the charter
6or any other violation of law, the local board of school
7directors or the governing board of an institution of higher
8education or, in the case of a cyber charter school, the
9department may require the charter school entity to replace the
10administrator or board member in order to obtain renewal of the
11charter. The local board of school directors or the governing
12board of an institution of higher education or, in the case of a
13cyber charter school, the department may refer its findings to
14the district attorney with jurisdiction or to the Office of
15Attorney General for prosecution if the local board of school
16directors or the governing board of an institution of higher
17education or, in the case of a cyber charter school, the
18department discovers or receives information about possible
19violations of law by any person affiliated with or employed by a
20charter school entity.

21(c) Any notice of revocation or nonrenewal of a charter
22given by the local board of school directors of a school
23district or the governing board of an institution of higher
24education shall state the grounds for such action with
25reasonable specificity and give reasonable notice to the
26governing board of the charter school or regional charter school
27of the date on which a public hearing concerning the revocation
28or nonrenewal will be held. The local board of school directors
29or the governing board of an institution of higher education
30shall conduct such hearing, present evidence in support of the

1grounds for revocation or nonrenewal stated in its notice and
2give the charter school or regional charter school reasonable
3opportunity to offer testimony before taking final action.
4Formal action revoking or not renewing a charter shall be taken
5by the local board of school directors or the governing board of
6an institution of higher education at a public meeting pursuant
7to [the act of July 3, 1986 (P.L.388, No.84), known as the
8"Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating to open meetings)
9after the public has had thirty (30) days to provide comments to
10the board. All proceedings of the local board pursuant to this
11subsection shall be subject to 2 Pa.C.S. Ch. 5 Subch. B
12(relating to practice and procedure of local agencies). Except
13as provided in subsection (d), the decision of the local board
14shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B (relating to
15judicial review of local agency action).

16(d) Following the appointment and confirmation of the appeal
17board, but not before July 1, 1999, the charter school may
18appeal the decision of the local board of school directors to
19revoke or not renew the charter to the appeal board. The appeal
20board shall have the exclusive review of a decision not to renew
21or revoke a charter by the local board of school directors. The
22appeal board shall review the record and shall have the
23discretion to supplement the record if the supplemental
24information was previously unavailable. The appeal board may
25consider the charter school plan, annual reports, student
26performance and employe and community support for the charter
27school in addition to the record. The appeal board shall give
28due consideration to the findings of the local board of
29directors and specifically articulate its reasons for agreeing
30or disagreeing with those findings in its written decision.

1* * *

2Section 18. The act is amended by adding sections to read:

3Section 1729.1-A. Evaluation of Educators.--(a) All
4applications by a charter school entity for a charter or for the
5renewal of a charter shall include a system of evaluation for
6educators that includes both of the following:

7(1) At least four (4) rating categories of educator
8performance.

9(2) Multiple measures of student performance which shall
10include, but may not be limited to, value-added assessment
11system data made available by the department under section 221
12and student performance on the most recent assessments for which
13results have been released by the department and may include
14goals specific to the mission of the charter school entity's
15charter.

16(b) Nothing in this section shall preempt the powers of a
17board of trustees under section 1716-A(a) nor affect the intent
18of the General Assembly provided in section 1702-A(3) and (4).

19(c) For purposes of this section, the term "educator" shall
20include all professional employes who are certified as teachers
21and noncertified staff members who teach in a charter school
22entity.

23Section 1729.2-A. Multiple Charter School Organizations.--
24(a) Establishment shall be as follows:

25(1) Subject to the requirements of subsection (b), two or
26more charter schools may consolidate under 15 Pa.C.S. Pt. II
27Subpt. C (relating to nonprofit corporations) into a multiple
28charter school organization.

29(2) The multiple charter school organization shall be:

30(i) granted a single charter to operate two or more

1individual charter schools under the oversight of a single board
2of trustees and a chief administrator who shall oversee and
3manage the operation of the individual charter schools under its
4organization;

5(ii) considered a charter school entity; and

6(iii) subject to all of the requirements of this article
7unless otherwise provided for under this section.

8(3) Nothing under this subsection shall be construed to
9affect or change the terms or conditions of any individual
10charter previously granted that is consolidated under this
11section.

12(b) Including, but not limited to, any obligation of a
13school district for transportation, the following apply to
14consolidation of two or more individual charter schools into a
15multiple charter school organization:

16(1) A charter school that, prior to the effective date of
17this section, was approved by a local board of school directors,
18a special board of control, a School Reform Commission or
19another governing authority and that chooses to consolidate into
20a multiple charter school organization under this section may
21apply to the department to consolidate all affiliated school
22charters into a single charter within ninety (90) days after the
23department publishes the standard application form required
24under subsection (c). Beginning ninety-one (91) days after the
25department publishes the standard application form required
26under subsection (c), no charter school that was approved prior
27to the effective date of this section shall be eligible to
28consolidate with another charter school.

29(2) Consolidation is restricted as follows:

30(i) Except as set forth in subparagraph (ii), a charter

1school shall not be eligible to consolidate with another charter
2school that:

3(A) within either of the most recent two (2) school years,
4has failed to meet the requirements for student performance set
5forth in 22 Pa. Code Ch. 4 (relating to academic standards and
6assessment);

7(B) does not meet accepted standards of fiscal management or
8audit requirements; or

9(C) does not meet the standards set forth by the matrix
10established under section 1732-A(c)(3).

11(ii) Subparagraph (i) shall not apply if the consolidation
12includes a charter school which is not in violation of
13subparagraph (i) over the most recent two (2) school years.

14(iii) Clause (i)(C) shall not apply until the matrix
15required under section 1732-A(c)(3) has been developed.

16(3) The board of trustees of each charter school shall
17jointly submit their charter school's current charter and annual
18report to the department and request that oversight over the
19multiple charter school organization, including the authority to
20consider applications for renewal, be transferred to the
21department.

22(4) (i) Upon receipt of a consolidation and transfer
23application and all necessary documentation as required by the
24department, the department shall have thirty (30) days to
25approve or deny the consolidation and transfer application.

26(ii) Written notice of the department's action shall be sent
27to the applicants. If the application is denied, the reasons for
28the denial, including a description of deficiencies in the
29application, shall be clearly stated in the notice sent by the
30department to the applicants.

1(iii) If the department approves the consolidation and
2transfer, the department shall provide notification to the local
3boards of school directors, the special boards of control, the
4School Reform Commission or other governing authorities which
5initially approved the charters.

6(iv) A decision by the department to deny the consolidation
7and transfer application under subparagraph (i) may be appealed
8to the appeal board. The following shall apply to an appeal
9under this paragraph:

10(A) In the case of an appeal under this clause, the appeal
11board shall review the application and make a decision to
12approve or deny the consolidation and transfer application based
13on whether the application includes the information required
14under subsection (c).

15(B) Within thirty (30) days following receipt of an appeal
16under this clause, the appeal board shall meet to officially
17review the certified record of the department.

18(C) Within sixty (60) days following the review conducted
19pursuant to clause (B), the appeal board shall issue a written
20decision affirming or reversing the decision of the department.
21Written notice of the decision of the appeal board shall be
22provided to the parties.

23(D) A decision by the appeal board under this clause to
24approve the consolidation and transfer application shall serve
25as a requirement for the department to approve the application
26and provide notification of the approval to the local boards of
27school directors, the special boards of control, the School
28Reform Commission or other governing authorities which initially
29approved the charters within ten (10) days of the reversal of
30the decision of the department. If the department fails to

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

7(E) All decisions of the appeal board shall be subject to
8appellate review by the Commonwealth Court.

9(5) No later than thirty (30) days after the receipt of the
10notification of approval required under paragraph (4), the local
11boards of school directors, the special boards of control, the
12School Reform Commission or other governing authorities which
13initially approved the charters shall transfer to the department
14all records regarding oversight of the charter schools.

15(6) A charter school's charter term shall remain in effect
16until the time of expiration, at which time the department will
17undertake a comprehensive review prior to granting a ten-year
18charter renewal.

19(c) Within thirty (30) days of the effective date of this
20section, the department shall develop and issue a standard
21application form for multiple charter school organization
22applicants and shall publish the application form in the
23Pennsylvania Bulletin and on the department's publicly
24accessible Internet website. The application form shall contain
25the following information:

26(1) The name of the multiple charter school organization.

27(2) The names of the charter schools seeking consolidation
28and transfer under this section.

29(3) A copy of the approved charter of each charter school
30seeking to consolidate and transfer oversight functions to the

1department.

2(4) An organizational chart clearly presenting the proposed
3governance structure of the multiple charter school
4organization, including lines of authority and reporting between
5the board of trustees, chief administrator, administrators,
6staff and any educational management service provider that will
7play a role in providing management services to the charter
8schools under its jurisdiction.

9(5) A clear description of the roles and responsibilities
10for the board of trustees, chief administrator, administrators
11and any other entities, including a charter school foundation,
12shown in the organizational chart.

13(6) A clear description and method for the appointment or
14election of members of the board of trustees.

15(7) Standards for board of trustees performance, including
16compliance with all applicable laws, regulations and terms of
17the charter.

18(8) Enrollment procedures for each individual charter school
19included in its charter.

20(9) Any other information as deemed necessary by the
21department.

22(d) A multiple charter school organization may:

23(1) Participate in the assessment system in the same manner
24in which a school district participates, with its individual
25charter schools participating in the assessment system in the
26same manner as individual schools in school districts. All data
27gathered for purposes of evaluation shall be gathered in the
28same manner in which data is gathered in the case of school
29districts and individual schools in school districts.

30(2) Beginning ninety-one (91) days after the department

1publishes the standard application form required under
2subsection (c), add newly established charter schools to its
3organization through both of the following:

4(i) Establish a new charter school by applying for a charter
5through the local school board under section 1717-A; and

6(ii) Apply to the department to consolidate and transfer
7under this section.

8(3) Amend the individual charters of each charter school
9under its organization by seeking approval from the department
10under the amendment process included under section 1720-A.

11(4) Allow students enrolled in an individual charter school
12to matriculate to another individual charter school under its
13oversight so as to complete a course of instruction in an
14educational institution from kindergarten through grade twelve.

15(e) The annual report required under section 1728-A shall be
16provided by the board of trustees and chief administrator of the
17multiple charter school organization and shall include all
18information required to provide a basis for evaluation for
19renewal of each individual charter school under the oversight of
20the multiple charter school organization.

21(f) A multiple charter school organization shall be regarded
22as the holder of the charter of each individual charter school
23under its oversight and each previously or subsequently awarded
24charter shall be subject to nonrenewal or revocation in
25accordance with this act. The nonrenewal or revocation shall not
26affect the status of a charter awarded for any other individual
27charter school under the oversight of the multiple charter
28school organization.

29(g) The department shall:

30(1) Receive, review and act on multiple charter school

1organization consolidation and transfer applications under this
2section.

3(2) Exercise oversight over multiple charter school
4organizations approved under this section.

5(3) Develop and issue a standard application form for
6multiple charter school organization applicants and publish the
7application form in the Pennsylvania Bulletin and on the
8department's publicly accessible Internet website under
9subsection (c).

10(h) For purposes of this section, the term "charter school"
11shall include a regional charter school.

12Section 19. Section 1732-A of the act, amended June 29, 2002
13(P.L.524, No.88), is amended to read:

14Section 1732-A. Provisions Applicable to Charter Schools and
15Regional Charter Schools.--(a) Charter schools and regional
16charter 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),
201205.1, 1205.2, 1205.3, 1205.4, 1205.5, 1301, 1302, 1303, 1310,
211317, 1317.1, 1317.2, 1317.3, 1318, 1327, 1330, 1332, 1333,
221303-A, 1513, 1517, 1518, 1521, 1523, 1531, 1547, 2014-A,
23Article XIII-A and Article XIV.

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 and regional charter schools.

4(2) The secretary shall have the authority and the
5responsibility to ensure that charter schools and regional
6charter schools comply with Federal laws and regulations
7governing children with disabilities. The secretary shall
8promulgate regulations to implement 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 entity 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 shall 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) In developing the performance matrix, the department
3shall determine an academic quality benchmark the satisfaction
4of which shall qualify a charter school entity for a ten (10)
5year renewal term pursuant to sections 1720-A and 1745-A(f). The
6academic quality benchmark shall be included in the regulations
7required under subclause (i).

8(iv) The department shall develop the performance matrix
9with input from charter school entity operators and may contract
10for consulting services with an entity that has experience in
11developing performance matrices if the services are procured
12through a competitive bidding process.

13(v) No local board of school directors or the governing
14board of an institution of higher education may develop a
15separate performance matrix for the evaluation of a charter
16school entity.

17(vi) A local board of school directors or the governing
18board of an institution of higher education shall utilize the
19standard performance matrix as a primary factor in evaluating
20new charter school and regional charter school applicants and
21applicants for charter school and regional charter school
22renewal and in annual monitoring and evaluation of charter
23schools and regional charter schools.

24(vii) The department shall utilize the standard performance
25matrix as a primary factor in evaluating new and renewal cyber
26charter school applicants and in annual monitoring and
27evaluation of cyber charter schools.

28(viii) The department shall distribute the performance
29matrix to all local boards of school directors or the governing
30board of an institution of higher education and shall publish

1the matrix on the department's publicly accessible Internet
2website.

3Section 20. The act is amended by adding a section to read:

4Section 1733-A. Effect on Existing Charter School
5Entities.--(a) Within one (1) year of the effective date of
6this section, a charter school entity established under section
71717-A or 1718-A prior to the effective date of this section
8shall amend the current charter through the amendment process
9under sections 1720-A(c) and 1745-A(f)(5) as needed to reflect
10the requirements of this article. Any renewal that takes effect
11after July 15, 2013, shall be for the term specified under
12sections 1720-A(a) and 1745-A(f)(3).

13(b) A charter school entity approved after the effective
14date of this section shall be in full compliance with this
15article.

16Section 21. Sections 1741-A(c), 1742-A and 1743-A(a) and (e) 
17of the act, added June 29, 2002 (P.L.524, No.88), are amended to
18read:

19Section 1741-A. Powers and duties of department.

20* * *

21(c) Documents.--Documents of the appeal board shall be
22subject to [the act of June 21, 1957 (P.L.390, No.212), referred
23to as the Right-to-Know Law.] the act of February 14, 2008
24(P.L.6, No.3), known as the Right-to-Know Law.

25Section 1742-A. Assessment and evaluation.

26The department shall:

27(1) Annually assess whether each cyber charter school is
28meeting the goals of its charter and is in compliance with
29the provisions of the charter and conduct a comprehensive
30review prior to granting a [five-year] renewal of the

1charter.

2(2) Annually review each cyber charter school's
3performance on the Pennsylvania System of School Assessment
4test, standardized tests and other performance indicators to
5ensure compliance with 22 Pa. Code Ch. 4 (relating to
6academic standards and assessment) or subsequent regulations
7promulgated to replace 22 Pa. Code Ch. 4.

8(3) Have ongoing access to all records, instructional
9materials and student and staff records of each cyber charter
10school and to every cyber charter school facility to ensure
11the cyber charter school is in compliance with its charter
12and this subdivision.

13Section 1743-A. Cyber charter school requirements and
14prohibitions.

15(a) Special financial requirements prohibited.--A cyber
16charter school shall not:

17(1) provide discounts to a school district or waive
18payments under section [1725-A] 1752-A for any student;

19(2) except as provided for in subsection (e), provide
20payments to parents or guardians for the purchase of
21instructional materials; or

22(3) except as compensation for the provision of specific
23services, enter into agreements to provide funds to a school
24entity.

25* * *

26(e) Students.--For each student enrolled, a cyber charter
27school shall:

28(1) provide all instructional materials, which may
29include electronic or digital books in place of textbooks;

30(2) provide all equipment, including, but not limited

1to, a computer, computer monitor and printer; and

2(3) provide or reimburse for all technology and services
3necessary for the on-line delivery of the curriculum and
4instruction.

5The Commonwealth shall not be liable for any reimbursement owed
6to students, parents or guardians by a cyber charter school
7under paragraph (3).

8* * *

9Section 22. Section 1745-A(f) of the act, added June 29,
102002 (P.L.524, No.88), is amended and the section is amended by
11adding a subsection to read:

12Section 1745-A. Establishment of cyber charter school.

13* * *

14(b.1) Local board of school directors or intermediate
15unit.--

16(1) A cyber charter school may be established by a local
17board of school directors or an intermediate unit if the
18procedures and requirements of this article are satisfied.

19(2) Nothing in this article shall be construed to
20preclude a school district or an intermediate unit from
21offering instruction via the Internet or other electronic
22means, except that the instruction shall not be recognized as
23a cyber charter school under this article.

24* * *

25(f) Evaluation criteria.--

26(1) A cyber charter school application submitted under
27this subdivision shall be evaluated by the department based
28on the following criteria:

29(i) The demonstrated, sustainable support for the
30cyber charter school plan by teachers, parents or

1guardians and students.

2(ii) The capability of the cyber charter school
3applicant, in terms of support and planning, to provide
4comprehensive learning experiences to students under the
5charter.

6(iii) The extent to which the programs outlined in
7the application will enable students to meet the academic
8standards under 22 Pa. Code Ch. 4 (relating to academic
9standards and assessment) or subsequent regulations
10promulgated to replace 22 Pa. Code Ch. 4.

11(iv) The extent to which the application meets the
12requirements of section 1747-A.

13[(v) The extent to which the cyber charter school
14may serve as a model for other public schools.]

15(2) Written notice of the action of the department shall
16be sent by certified mail to the applicant and published on
17the department's [World Wide Web site] publicly accessible
18Internet website. If the application is denied, the reasons
19for denial, including a description of deficiencies in the
20application, shall be clearly stated in the notice.

21(3) Upon approval of a cyber charter school application,
22a written charter shall be developed which shall contain the
23provisions of the charter application and be signed by the
24secretary and each member of the board of trustees of the
25cyber charter school. The charter, when duly signed, shall
26act as legal authorization of the establishment of a cyber
27charter school. The charter shall be legally binding on the
28department, the cyber charter school and its board of
29trustees. The charter shall be for a period of [no less than
30three years nor more than] five years. Upon the effective

1date of the regulations implementing the performance matrix
2as required by section 1732-A(c)(3), a cyber charter school
3that satisfied the academic quality benchmark established by
4the department pursuant to section 1732-A(c)(3) and may be
5renewed for a period of [five] ten years by the department. A
6cyber charter school that has not satisfied the academic
7quality benchmark established by the department pursuant to
8section 1732-A(c)(3) may be renewed for five (5) year periods
9upon reauthorization by the department.

10(4) The decision of the department to deny an
11application may be appealed to the appeal board.

12(5) (i) A cyber charter school may request amendments
13to its approved written charter by filing with the department
14a written document describing the requested amendment.

15(ii) Within 20 days of its receipt of the request for an
16amendment, the department shall hold a public hearing on the
17requested amendment under 65 Pa.C.S. Ch. 7 (relating to open
18meetings).

19(iii) Within 20 days after the hearing, the department
20shall grant or deny the requested amendment. Failure by the
21department to hold a public hearing and to grant or deny the
22amendments within the time period specified shall be deemed
23an approval.

24(iv) An applicant for an amendment shall have the right
25to appeal the denial of a requested amendment to the appeal
26board provided for under section 1721-A.

27* * *

28Section 23. Sections 1748-A(a)(2)(vi) and 1749-A(a) of the
29act, added June 29, 2002 (P.L.524, No.88), are amended to read:

30Section 1748-A. Enrollment and notification.

1(a) Notice to school district.--

2* * *

3(2) If a school district which has received notice under
4paragraph (1) determines that a student is not a resident of
5the school district, the following apply:

6* * *

7(vi) A school district shall continue to make
8payments to a cyber charter school under section [1725-A]
91752-A during the time in which the school district of
10residence of a student is in dispute.

11* * *

12Section 1749-A. Applicability of other provisions of this act
13and of other acts and regulations.

14(a) General requirements.--Cyber charter schools shall be
15subject to the following:

16(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
17436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741,
18752, 753, [755,] 771, 776, 777, 808, 809, 810, 1109, 1111,
191112(a), 1205.1, 1205.2, 1205.3, 1205.5, 1301, 1302, 1303,
201310, 1317, 1317.2, 1318, 1327, 1330, 1332, 1333, 1303-A,
211513, 1517, 1518, 1521, 1523, 1525, 1531, 1547, 1602-B, 1613-
22B, 1702-A, 1703-A, 1704-A, 1714-A, 1715-A, 1716-A, 1719-A,
231721-A, 1722-A, [1723-A(a) and (b)] 1723-A (a), (b) and (d),
241724-A, [1725-A,] 1727-A, 1728-A(d), (e), (f), (g) and (h),
251729-A, 1729.1-A, 1730-A, 1731-A(a)(1) and (b), 1732-A(c)(3),
261733-A and 2014-A and Articles [XII-A,] XIII-A and XIV.

27(1.1) The act of July 19, 1957 (P.L.1017, No.451), known
28as the State Adverse Interest Act.

29(2) The act of July 17, 1961 (P.L.776, No.341), known as
30the Pennsylvania Fair Educational Opportunities Act.

1(3) The act of July 19, 1965 (P.L.215, No.116), entitled
2"An act providing for the use of eye protective devices by
3persons engaged in hazardous activities or exposed to known
4dangers in schools, colleges and universities."

5(4) Section 4 of the act of January 25, 1966 (1965
6P.L.1546, No.541), entitled "An act providing scholarships
7and providing funds to secure Federal funds for qualified
8students of the Commonwealth of Pennsylvania who need
9financial assistance to attend postsecondary institutions of
10higher learning, making an appropriation, and providing for
11the administration of this act."

12(5) The act of July 12, 1972 (P.L.765, No.181) entitled
13"An act relating to drugs and alcohol and their abuse,
14providing for projects and programs and grants to educational
15agencies, other public or private agencies, institutions or
16organizations."

17(6) The act of December 15, 1986 (P.L.1595, No.175),
18known as the Antihazing Law.

19(7) The Right-to-Know Law.

20(8) 65 Pa.C.S. Ch. 7 (relating to open meetings).

21(9) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
22financial disclosure).

23* * *

24Section 24. The act is amended by adding a section to read:

25Section 1752-A. Funding for cyber charter schools.

26(a) General rule.--Funding for a cyber charter school shall
27be provided under section 1725-A(a)(1), (4), (5) and (6) and as
28follows:

29(1) For non-special education students, the cyber
30charter school shall receive for each student enrolled, 95%

1of the amount calculated to be paid by the district of
2residence under section 1725-A(a)(2). This amount shall be
3paid by the school district of residence of each student.

4(2) For special education students, the cyber charter
5school shall receive for each student enrolled, 95% of the
6amount 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.

9(b) Transition procedure.--The department shall develop a
10transition procedure to be able to recoup in subsequent fiscal
11years any payments made in error to a cyber charter school as a
12result of direct payment by the department to the cyber charter
13school.

14(c) Donations.--

15(1) It shall be lawful for any cyber charter school to
16receive, hold, manage and use, absolutely or in trust, any
17devise, bequest, grant, endowment, gift or donation of any
18property, real, personal or mixed, which shall be made to the
19cyber charter school for any of the purposes of this article.

20(2) It shall be unlawful for any trustee of a cyber
21charter school or any board of trustees of a cyber charter
22school or any other person affiliated in any way with a cyber
23charter school to demand or request, directly or indirectly,
24any gift, donation or contribution of any kind from any
25parent, teacher, employee or any other person affiliated with
26the cyber charter school as a condition for employment or
27enrollment or continued attendance of any pupil. Any
28donation, gift or contribution received by a cyber charter
29school must be given freely and voluntarily.

30Section 25. This act shall take effect as follows:

1(1) The following provisions shall take effect
2immediately:

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

4(ii) This section.

5(2) The amendment or addition of sections 1724-A, 1725-A
6and 1752-A of the act shall take effect July 1, 2014, or
7immediately, whichever occurs later.

8(3) The remainder of this act shall take effect in 60
9days.

<-10Section 1. Section 1525 of the act of March 10, 1949
11(P.L.30, No.14), known as the Public School Code of 1949, added
12July 4, 2004 (P.L.536, No.70), is amended to read:

13Section 1525. Agreements with Institutions of Higher
14Education.--Notwithstanding any other provision of law to the
15contrary, a school district, charter school, regional charter 
16school, cyber charter school or area vocational-technical school
17may enter into an agreement with one or more institutions of
18higher education approved to operate in this Commonwealth in
19order to allow [resident] students to attend such institutions
20of higher education while the [resident] students are enrolled
21in the school district, charter school, regional charter school, 
22cyber charter school or area vocational-technical school. The
23agreement may be structured so that high school students may
24receive credits toward completion of courses at the school
25district, charter school, regional charter school, cyber charter 
26school or area vocational-technical school and at institutions
27of higher education approved to operate in this Commonwealth.

28Section 2. The definitions of "concurrent student" and
29"school entity" in section 1602-B of the act, added July 13,
302005 (P.L.226, No.46), are amended to read:

1Section 1602-B. Definitions.

2The following words and phrases when used in this article
3shall have the meanings given to them in this section unless the
4context clearly indicates otherwise:

5* * *

6"Concurrent student." A student who is enrolled in a school
7district, a charter school, a regional charter school, a cyber 
8charter school, an area vocational-technical school, a nonpublic
9school, a private school or a home education program under
10section 1327.1 and who takes a concurrent course through a
11concurrent enrollment program.

12* * *

13"School entity." A school district, a charter school, a 
14regional charter school, a cyber charter school or an area
15vocational-technical school.

16* * *

17Section 3. Section 1613-B of the act is amended by adding a
18subsection to read:

19Section 1613-B. Concurrent enrollment agreements.

20* * *

21(c) Charter schools, regional charter schools and cyber
22charter schools.--Charter schools, regional charter schools and
23cyber charter schools shall have the power and authority to
24enter into a concurrent enrollment agreement with an institution
25of higher education and appropriate credit shall be awarded to
26students concurrently enrolled under the agreement.

27Section 4. Section 1703-A of the act, amended June 29, 2002
28(P.L.524, No.88), is amended to read:

29Section 1703-A. Definitions.--As used in this article,

30"Administrator" shall include an employe of a charter school

1entity, including the chief administrator of a charter school
2entity and any other employe, who by virtue of the employe's
3position is responsible for taking official action of a
4nonministerial nature with regard to contracting or procurement,
5administering or monitoring grants or subsidies, managing or
6regulating staff, student and school activities or any activity
7where the official action has an economic impact of greater than
8a de minimis nature on the interests of any person.

9"Appeal board" shall mean the State Charter School Appeal
10Board established by this article.

11"Assessment" shall mean the Pennsylvania System of School
12Assessment test, the Keystone Exam or another test established
13by the State board to meet the requirements of section 2603-
14B(d)(10)(i) and required under the No Child Left Behind Act of
152001 (Public Law 107-110, 115 Stat. 1425) or its successor
16Federal statute.

17"Associated nonprofit foundation" shall mean an entity
18organized as a Pennsylvania nonprofit corporation pursuant to 15
19Pa.C.S. § 5306 (relating to articles of incorporation),
20operating exclusively for the support and benefit of a
21Pennsylvania charter school entity organized under this
22article. The term shall include an associated nonprofit
23corporation.

24"At-risk student" shall mean a student at risk of educational
25failure because of limited English proficiency, poverty,
26community factors, truancy, academic difficulties or economic
27disadvantage.

28"Charter school" shall mean an independent public school
29established and operated under a charter from the local board of
30school directors and in which students are enrolled or attend. A

1charter school must be organized as a public, nonprofit
2corporation. Charters may not be granted to any for-profit
3entity.

4"Charter school entity" shall mean a charter school, regional
5charter school or cyber charter school.

6"Charter school foundation" shall mean a nonprofit
7organization, as defined under section 501(c)(3) of the Internal
8Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
9that provides funding, resources or otherwise serves to support
10a charter school entity, either directly or through an
11affiliated entity.

12"Chief administrator" shall mean an individual appointed by a
13board of trustees to oversee and manage the operation of a
14charter school entity. The term shall not include a professional
15staff member under this article.

16["Chief executive officer" shall mean an individual appointed
17by the board of trustees to oversee and manage the operation of
18the charter school, but who shall not be deemed a professional
19staff member under this article.]

20"Cyber charter school" shall mean an independent public
21school established and operated under a charter from the
22Department of Education and in which the school uses technology, 
23including electronic or digital books, in order to provide a
24significant portion of its curriculum and to deliver a
25significant portion of instruction to its students through the
26Internet or other electronic means. A cyber charter school must
27be organized as a public, nonprofit corporation. A charter may
28not be granted to a for-profit entity.

29"Department" shall mean the Department of Education of the
30Commonwealth.

1"Educational management service provider" shall mean a for-
2profit education management organization, nonprofit charter
3management organization, school design provider, business
4manager or any other partner entity with which a board of
5trustees of a charter school entity contracts to provide
6educational design, business services, comprehensive management
7or personnel functions or to implement the charter. The term
8shall not include a charter school foundation.

9"Immediate family member" shall mean a parent, spouse, child,
10brother or sister.

11"Local board of school directors" shall mean the board of
12directors [of], a school reform commission or other governing 
13authority of a school district or a financial recovery school 
14district in which a proposed or an approved charter school is
15located.

16"Nonrelated" shall mean an individual who is not an immediate
17family member.

18"Regional charter school" shall mean an independent public
19school established and operated under a charter from more than
20one local board of school directors and in which students are
21enrolled or attend. A regional charter school must be organized
22as a public, nonprofit corporation. Charters may not be granted
23to any for-profit entity.

24"School district of residence" shall mean the school district
25in this Commonwealth in which [the parents or guardians of a
26child reside] a child resides as determined under section 1302 
27and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of 
28resident children to attend public schools).

29"School entity" shall mean a school district, intermediate
30unit, joint school or area vocational-technical school.

1"Secretary" shall mean the Secretary of Education of the
2Commonwealth.

3"State board" shall mean the State Board of Education of the
4Commonwealth.

5Section 5. Section 1715-A of the act, amended or added June
619, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is
7amended to read:

8Section 1715-A. Charter School Entity Requirements.--(a)
9Charter [schools] school entities shall be required to comply
10with the following provisions:

11(1) Except as otherwise provided in this article, a charter
12school entity is exempt from statutory requirements established
13in this act, from regulations of the State board and the
14standards of the secretary not specifically applicable to
15charter [schools] school entities. Charter [schools] school 
16entities are not exempt from statutes applicable to public
17schools other than this act.

18(2) A charter school entity shall be accountable to the
19parents, the public and the Commonwealth, with the delineation
20of that accountability reflected in the charter. Strategies for
21meaningful parent and community involvement shall be developed
22and implemented by each school.

23(3) A charter school entity shall not unlawfully
24discriminate in admissions, hiring or operation.

25(4) A charter school entity shall be nonsectarian in all
26operations.

27(5) (i) [A] Subject to subparagraph (ii), a charter school
28entity shall not provide any religious instruction, nor shall it
29display religious objects and symbols on the premises of the
30charter school[.] entity.

1(ii) It shall not be a violation of this paragraph for a
2charter school entity to utilize a sectarian facility:

3(A) if the charter school entity provides for discrete and
4separate entrances to buildings utilized for school purposes
5only;

6(B) if the religious objects and symbols within the portions
7of the facility utilized by the school are covered or removed to
8the extent reasonably feasible; or

9(C) in which the unused portion of the facility or its
10common areas contain religious symbols and objects.

11(6) A charter school entity shall not advocate unlawful
12behavior.

13(7) A charter school or regional charter school shall only
14be subject to the laws and regulations as provided for in
15section 1732-A, or as otherwise provided for in this [article]
16act.

17(7.1) A cyber charter school shall only be subject to the
18laws and regulations as provided for in section 1749-A or as
19otherwise provided for in this act.

20(8) A charter school entity shall participate in [the
21Pennsylvania State Assessment System as provided for in 22 Pa.
22Code Ch. 5 (relating to curriculum), or subsequent regulations
23promulgated to replace 22 Pa. Code Ch. 5,] assessments in the
24manner in which the school district in which the charter school
25entity is located is scheduled to participate.

26(9) A charter school entity shall provide a minimum of one
27hundred eighty (180) days of instruction or nine hundred (900)
28hours per year of instruction at the elementary level, or nine
29hundred ninety (990) hours per year of instruction at the
30secondary level. Nothing in this clause shall preclude the use

1of computer and satellite linkages for delivering instruction to
2students.

3(10) Boards of trustees and contractors of charter [schools] 
4school entities shall be subject to the following statutory
5requirements governing construction projects and construction-
6related work:

7(i) The following provisions of this act:

8(A) Sections 751 and 751.1.

9(B) Sections 756 and 757 insofar as they are consistent with
10the act of December 20, 1967 (P.L.869, No.385), known as the
11"Public Works Contractors' Bond Law of 1967."

12(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
13entitled "An act regulating the letting of certain contracts for
14the erection, construction, and alteration of public buildings."

15(iii) The act of August 11, 1961 (P.L.987, No.442), known as
16the "Pennsylvania Prevailing Wage Act."

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

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

20(11) Trustees of a charter school entity shall be public
21officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to 
22ethics standards and financial disclosure) and shall file a 
23statement of financial interests for the preceding calendar year 
24with both the State Ethics Commission and either, in the case of 
25a charter school or regional charter school, the local board of 
26school directors or, in the case of a cyber charter school, the 
27department, not later than May 1 of each year that members hold 
28the position and of the year after a member leaves the position. 
29All members of the board of trustees of a charter school entity 
30shall take the oath of office as required under section 321
 

1before entering upon the duties of their office.

2[(12) A person who serves as an administrator for a charter
3school shall not receive compensation from another charter
4school or from a company that provides management or other
5services to another charter school. The term "administrator"
6shall include the chief executive officer of a charter school
7and all other employes of a charter school who by virtue of
8their positions exercise management or operational oversight
9responsibilities. A person who serves as an administrator for a
10charter school shall be a public official under 65 Pa.C.S. Ch.
1111 (relating to ethics standards and financial disclosure). A
12violation of this clause shall constitute a violation of 65
13Pa.C.S. § 1103(a) (relating to restricted activities), and the
14violator shall be subject to the penalties imposed under the
15jurisdiction of the State Ethics Commission.]

16(b) An individual who serves as an administrator for a
17charter school entity shall be a public employe for the purposes
18of 65 Pa.C.S. Ch. 11 and shall file a statement of financial
19interests for the preceding calendar year with the board of
20trustees not later than May 1 of each year that the person holds
21the position and of the year after the person leaves the
22position.

23(c) (1) No individual who serves as an administrator for a
24charter school entity may receive compensation from another
25charter school entity or from an educational management service
26provider, unless:

27(i) The administrator has submitted a sworn statement to the
28board of trustees of the charter school entity and the sworn
29statement details the work for the other entity and includes the
30projected number of hours, rate of compensation and projected

1duration.

2(ii) The board of trustees of the charter school entity has
3reviewed the sworn statement under subclause (i) and agreed, by
4resolution, to grant permission to the administrator.

5(2) A copy of the sworn statement under clause (1)(i) and
6the resolution by the board of trustees of the charter school
7entity granting the permission under clause (1)(ii) shall be
8provided to and kept on file with the charter school entity and
9the board of local school directors or, in the case of a cyber
10charter school, the department.

11(3) No administrator of a charter school entity or immediate
12family member may serve as a voting member of the board of
13trustees of the charter school entity that employs the
14administrator.

15(4) (i) No administrator of a charter school entity may
16participate in the selection, award or administration of a
17contract if the person has a conflict of interest as that term
18is defined in 65 Pa.C.S. § 1102 (relating to definitions).

19(ii) An administrator who knowingly violates this clause
20commits a violation of 65 Pa.C.S. § 1103(a) (relating to
21restricted activities) and shall be subject to the penalties
22imposed under the jurisdiction of the State Ethics Commission.

23(iii) Any contract made in violation of this clause shall be
24voidable by the board of trustees of the charter school entity.

25(5) An administrator shall be immediately dismissed upon
26conviction for an offense graded as a felony, an infamous crime,
27an offense pertaining to fraud, theft or mismanagement of public
28funds or any crime involving moral turpitude.

29Section 6. Section 1716-A(c) of the act, added June 19, 1997
30(P.L.225, No.22), is amended and the section is amended by

1adding subsections to read:

2Section 1716-A. Powers of Board of Trustees.--* * *

3(b.1) (1) For a charter school or regional charter school
4chartered after the effective date of this subsection, an
5individual shall be prohibited from serving as a voting member
6of the board of trustees of the charter school or regional
7charter school if the individual or an immediate family member
8receives compensation from or is employed by or is a member of
9the local board of school directors who participated in the
10initial review, approval, oversight, evaluation or renewal
11process of the charter school or regional charter school
12chartered by that board.

13(2) An employe of the school district that chartered the
14charter school or the regional charter school may serve as a
15member of the board of trustees of the charter school or
16regional charter school without voting privileges.

17(b.2) (1) No member of the board of trustees of a charter
18school entity may participate in the selection, award or
19administration of any contract if the member has a conflict of
20interest as that term is defined in 65 Pa.C.S. § 1102 (relating
21to definitions).

22(2) Any member of the board of trustees of a charter school
23entity who in the discharge of the person's official duties
24would be required to vote on a matter that would result in a
25conflict of interest shall abstain from voting and follow the
26procedures required under 65 Pa.C.S. § 1103(j) (relating to
27restricted activities).

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

1penalties imposed under the jurisdiction of the State Ethics
2Commission.

3(4) A contract made in violation of this subsection shall be
4voidable by a court of competent jurisdiction, if the suit is
5commenced within ninety (90) days of the making of the contract.

6(5) No member of the board of trustees of a charter school
7entity shall be compensated for duties on the board of trustees.

8(b.3) A member of the board of trustees of a charter school
9entity shall be automatically disqualified and immediately
10removed from the board upon conviction for an offense graded as
11a felony, an infamous crime, an offense pertaining to fraud,
12theft or mismanagement of public funds, any offense pertaining
13to his official capacity as a board member or any crime
14involving moral turpitude.

15(c) The board of trustees shall comply with [the act of July
163, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
17Pa.C.S. Ch. 7 (relating to open meetings).

18(d) (1) (i) The board of trustees of a charter school
19entity shall consist of a minimum of five (5) nonrelated voting
20members.

21(ii) If a charter school entity has fewer than five (5)
22nonrelated voting members serving on its board on the effective
23date of this subsection, the charter school entity shall, within
24sixty (60) days, appoint additional members to the board to meet
25the minimum requirements of this section.

26(2) Within one (1) year of the effective date of this
27subsection, at least one (1) member of the board of trustees of
28a charter school entity shall be a parent of a child currently
29attending the charter school entity. The board member shall be
30eligible to serve only so long as the child attends the charter

1school entity.

2(e) (1) A majority of the voting members of the board of
3trustees shall constitute a quorum. If less than a majority is
4present at any meeting, no business may be transacted at the
5meeting.

6(2) The affirmative vote of a majority of all the voting
7members of the board of trustees, duly recorded, shall be
8required in order to take action on the subjects enumerated
9under subsection (a).

10Section 7. The act is amended by adding sections to read:

11Section 1716.1-A. (Reserved).

12Section 1716.2-A.  Fund Balance Limits.--Fund balance limits 
13shall be as follows:

14(1)  For the 2013-2014 school year and each school year 
15thereafter, a charter school entity shall not accumulate an 
16unassigned fund balance greater than the charter school entity 
17unassigned fund balance limit, which will be determined as 
18follows:

19 

20 

21Charter School Entity

22Total Budgeted Expenditures

Maximum Unassigned Fund
Balance as Percentage of
Total Budgeted
Expenditures

23Less than or equal to $11,999,999

12%

24Between $12,000,000 and $12,999,999

11.5%

25Between $13,000,000 and $13,999,999

11%

26Between $14,000,000 and $14,999,999

10.5%

27Between $15,000,000 and $15,999,999

10%

28Between $16,000,000 and $16,999,999

9.5%

29Between $17,000,000 and $17,999,999

9%

30Between $18,000,000 and $18,999,999

8.5%

1Greater Than or Equal to $19,000,000

8%

2(2)  Any unassigned fund balance in place on June 30, 2015, 
3that exceeds the charter school entity unassigned fund balance 
4limit shall be refunded on a pro rata basis within ninety (90) 
5days to all school districts that paid tuition to the charter 
6school entity on behalf of students enrolled in the 2013-2014 
7and 2014-2015 school years.

8(3)  For the 2015-2016 school year and each school year 
9thereafter, any unassigned fund balance in place on June 30 of 
10that school year in excess of the charter school entity 
11unassigned fund balance limit shall be refunded on a pro rata 
12basis within ninety (90) days to all school districts that paid 
13tuition to the charter school entity in the prior school year.

14(4)  By September 30, 2015, and August 15 of each year 
15thereafter, each charter school entity shall provide the 
16department and all school districts that paid tuition to the 
17charter school entity in the prior school year with information 
18certifying compliance with this section. The information shall 
19be provided in a form and manner prescribed by the department 
20and shall include information on the charter school entity's 
21estimated ending unassigned fund balance expressed as a dollar 
22amount and as a percentage of the charter school entity's total 
23budgeted expenditures for that school year.

24(5) Unassigned funds of the charter school entity in excess
25of the unassigned fund balance limit may not be used to pay
26bonuses to any administrator, board of trustees member, employe,
27staff member or contractor and may not be transferred to a
28charter school foundation. If a charter school entity uses funds
29in excess of the unassigned fund balance limit to pay bonuses to
30any administrator, board of trustees member, employe, staff

1member or contractor or transfers such funds to a charter school
2foundation, the value of the bonus payment or fund transfer
3shall be refunded by the charter school entity on a pro rata
4basis to all school districts that paid tuition to the charter
5school entity on behalf of students enrolled in the charter
6school entity in the immediately preceding school year.

7(6) As used in this section, "unassigned fund balance" shall 
8mean that portion of the fund balance of a charter school entity 
9that provides funding or resources or otherwise serves to 
10support the charter school entity that is:

11(i)  available for expenditure or not legally or otherwise 
12segregated for a specific or tentative future use; and

13(ii)  held in the general fund accounts of the charter school
14entity.

15Section 7.1. Section 1717-A(c), (d), (e), (f) and (i) of the
16act, added June 19, 1997 (P.L.225, No.22), are amended AND THE
17SECTION IS AMENDED BY ADDING SUBSECTIONS to read:

18Section 1717-A. Establishment of Charter School.--* * *

19(c) An application to establish a charter school shall be
20submitted to the local board of school directors of the district
21where the charter school will be located by [November 15]
22October 1 of the school year preceding the school year in which
23the charter school will be established except that for a charter
24school beginning in the 1997-1998 school year, an application
25must be received by July 15, 1997. In the 1997-1998 school year
26only, applications shall be limited to recipients of fiscal year
271996-1997 Department of Education charter school planning
28grants.

29(d) Within forty-five (45) days of receipt of an
30application, the local board of school directors in which the

1proposed charter school is to be located shall hold at least one
2public hearing on the provisions of the charter application,
3under [the act of July 3, 1986 (P.L.388, No.84), known as the
4"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
5At least forty-five (45) days must transpire between the first
6public hearing and the final decision of the board on the
7charter application except that for a charter school beginning
8in the 1997-1998 school year, only thirty (30) days must
9transpire between the first public hearing and the final
10decision of the board.

11(e) (1) Not later than seventy-five (75) days after the
12first public hearing on the application, the local board of
13school directors shall grant or deny the application. For a
14charter school beginning in the 1997-1998 school year, the local
15board of school directors shall grant or deny the application no
16later than sixty (60) days after the first public hearing.

17(2) A charter school application submitted under this
18article shall be evaluated by the local board of school
19directors based on criteria, including, but not limited to, the
20following:

21(i) The demonstrated, sustainable support for the charter
22school plan by teachers, parents, other community members and
23students, including comments received at the public hearing held
24under subsection (d).

25(ii) The capability of the charter school applicant, in
26terms of support and planning, to provide comprehensive learning
27experiences to students pursuant to the adopted charter.

28(iii) The extent to which the application considers the
29information requested in section 1719-A and conforms to the
30legislative intent outlined in section 1702-A.

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

3(3) The local board of school directors, in the case of an
4existing school being converted to a charter school, shall
5establish the alternative arrangements for current students who
6choose not to attend the charter school.

7(4) A charter application shall be deemed approved by the
8local board of school directors of a school district upon
9affirmative vote by a majority of all the directors. Formal
10action approving or denying the application shall be taken by
11the local board of school directors at a public meeting, with
12notice or consideration of the application given by the board,
13under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

14(5) Written notice of the board's action shall be sent to
15the applicant, the department and the appeal board. If the
16application is denied, the reasons for the denial, including a
17description of deficiencies in the application, shall be clearly
18stated in the notice sent by the local board of school directors
19to the charter school applicant.

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

1application by the board. For a revised application resubmitted
2for the 1997-1998 school year, the board shall consider the
3application at the first board meeting occurring at least thirty
4(30) days after its receipt. The board shall provide notice of
5consideration of the revised application under [the "Sunshine
6Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local
7school board may be taken until July 1, 1999.

8* * *

9(i) (1) The appeal board shall have the exclusive review of
10an appeal by a charter school applicant, or by the board of
11trustees of an existing charter school, of a decision made by a
12local board of directors not to grant a charter as provided in
13this 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 shall be reviewed by the appeal board on the record as
14certified by the local board of directors. The appeal board
15shall give due consideration to the findings of the local board
16of directors and specifically articulate its reasons for
17agreeing or disagreeing with those findings in its written
18decision. The appeal board shall have the discretion to allow
19the local board of directors and the charter school applicant to
20supplement the record if the supplemental information was
21previously unavailable.

22(7) Not later than thirty (30) days after the date of notice
23of the acceptance of the appeal, the appeal board shall meet to
24officially review the certified record.

25(8) Not later than sixty (60) days following the review
26conducted pursuant to clause (6), the appeal board shall issue a
27written decision affirming or denying the appeal. If the appeal
28board has affirmed the decision of the local board of directors,
29notice shall be provided to both parties.

30(9) A decision of the appeal board to reverse the decision

1of the local board of directors shall serve as a requirement for
2the local board of directors of a school district or school
3districts, as appropriate, to grant the application and sign the
4written charter of the charter school as provided for in section
51720-A. Should the local board of directors fail to grant the
6application and sign the charter within ten (10) days of notice
7of the reversal of the decision of the local board of directors,
8the charter shall be deemed to be approved and shall be signed
9by the chairman of the appeal board.

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

12(j) Notwithstanding the provisions of section 696(i) or any
13other provision of law to the contrary, a school reform
14commission considering an application to establish a charter
15school in a school district of the first class shall comply with
16subsection (e)(5).

17(k) Notwithstanding the provisions of section 696(i) or any
18other provision of law to the contrary, a charter school
19applicant may appeal a decision of a school reform commission to
20deny an application to establish a charter school in a school
21district of the first class to the appeal board. Subsections
22(g), (h) and (i) shall apply to an appeal under this subsection.

23Section 7.2. Section 1719-A of the act, added June 19, 1997
24(P.L.225, No.22), is amended to read:

25Section 1719-A. Contents of Application.--[An] (a) The 
26department shall create a standard application form for charter 
27school applicants seeking to establish a charter school entity 
28and for existing charter school entities seeking renewal of 
29their charters. The form shall be published in the Pennsylvania 
30Bulletin and posted on the department's publicly accessible
 

1Internet website. The form shall include all of the following
2information:

3(1) The identification of the charter school applicant.

4(2) The name of the proposed charter school entity.

5(3) The grade or age levels served by the school.

6(4) [The proposed governance structure of the charter
7school, including a description and method for the appointment
8or election of members of the board of trustees.] An 
9organizational chart clearly presenting the proposed governance 
10structure of the school, including lines of authority and 
11reporting between the board of trustees, administrators, staff 
12and any educational management service provider that will 
13provide management services to the charter school entity.

14(4.1) A clear description of the roles and responsibilities
15for the board of trustees, administrators and any other
16entities, including a charter school foundation, shown in the
17organizational chart.

18(4.2) A clear description of and method for the appointment
19or election of members of the board of trustees.

20(4.3) Standards for board of trustees performance, including
21compliance with all applicable laws, regulations and terms of
22the charter.

23(4.4) If the charter school entity intends to contract with
24an educational management service provider for services, all of
25the following:

26(i) Evidence of the educational management service
27provider's record in serving student populations, including
28demonstrated academic achievement and demonstrated management of
29nonacademic school functions, including proficiency with public
30school-based accounting, if applicable.

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

2(A) The officers, chief administrator and administrators of
3the educational management service provider.

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

5(C) Roles and responsibilities of the board of trustees, the
6school staff and the educational management service provider.

7(D) The scope of services, personnel and resources to be
8provided by the educational management service provider.

9(E) Performance evaluation measures and timelines.

10(F) The compensation structure, including clear
11identification of all fees to be paid to the educational
12management service provider.

13(G) Methods of contract oversight and enforcement.

14(H) Investment disclosure or the advance of moneys by the
15educational management service provider on behalf of the charter
16school entity.

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

18(iii) Disclosure and explanation of any existing or
19potential conflicts of interest between the members of the board
20of trustees and the proposed educational management service
21provider or any affiliated business entities, including a
22charter school foundation qualified as a support organization
23under the Internal Revenue Code of 1986 (Public Law 99-514, 26
24U.S.C. § 1 et seq.).

25(5) The mission and education goals of the charter school
26entity, the curriculum to be offered and the methods of
27assessing whether students are meeting educational goals.

28(6) The admission and enrollment policy [and criteria for
29evaluating the admission of students] which shall comply with
30the requirements of section 1723-A.

1(7) Procedures which will be used regarding the suspension
2or expulsion of pupils. Said procedures shall comply with
3section 1318.

4(8) Information on the manner in which community groups will
5be involved in the charter school entity planning process.

6(9) The financial plan for the charter school entity and the
7provisions which will be made for auditing the school under
8[section] sections 437 and 1728-A, including the role of any 
9charter school foundation.

10(10) Procedures which shall be established to review
11complaints of parents regarding the operation of the charter
12school entity.

13(11) A description of and address of the physical facility
14in which the charter school entity will be located and the
15ownership thereof and any lease arrangements.

16(12) Information on the proposed school calendar for the
17charter school entity, including the length of the school day
18and school year consistent with the provisions of section 1502.

19(13) The proposed faculty, if already determined, and a
20professional development and continuing education plan for the
21faculty and professional staff of [a] the charter school entity.

22(14) Whether any agreements have been entered into or plans
23developed with the local school district regarding participation
24of the charter school entity's students in extracurricular
25activities within the school district. Notwithstanding any
26provision to the contrary, no school district of residence shall
27prohibit a student of a charter school entity from participating
28in any extracurricular activity of that school district of
29residence: Provided, That the student is able to fulfill all of
30the requirements of participation in such activity and the

1charter school entity does not provide the same extracurricular
2activity.

3(15) A report of criminal history record, pursuant to
4section 111, for all individuals identified in the application
5who shall have direct contact with students and a plan for 
6satisfying the proper criminal history record clearances 
7required for all other staff.

8(16) An official clearance statement regarding child injury
9or abuse from the Department of Public Welfare as required by 23
10Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for
11employment in schools) for all individuals identified in the 
12application who shall have direct contact with students and a 
13plan for satisfying the proper official clearance statement 
14regarding child injury or abuse required for all other staff.

15(17) How the charter school entity will provide adequate
16liability and other appropriate insurance for the charter school
17entity, its employes and the board of trustees of the charter
18school entity.

19(18) Policies regarding truancy, absences and withdrawal of
20students, including the manner in which the charter school
21entity will monitor attendance consistent with section 1715-A(a)
22(9). The charter school entity's policy shall establish, to the
23satisfaction of the local board of school directors or, in the
24case of cyber charter school, to the satisfaction of the
25department, that the charter school entity will comply with
26sections 1332 and 1333, including the institution of truancy
27proceedings when required under section 1333.

28(19) How the charter school entity will meet the standards
29included in the performance matrix developed by the department
30under section 1731.1-A.

1(20) Indicate whether or not the charter school entity will
2seek accreditation by a nationally recognized accreditation
3agency, including the Middle States Association of Colleges and
4Schools or another regional institutional accrediting agency
5recognized by the United States Department of Education or an
6equivalent federally recognized body for charter school
7education.

8(b) A local board of school directors may not impose
9additional terms, develop its own application or require
10additional information outside the standard application form
11required under subsection (a).

12Section 8. Section 1720-A of the act, amended July 9, 2008
13(P.L.846, No.61), is amended to read:

14Section 1720-A. Term and Form of Charter.--(a) (1) Upon
15approval of a charter application under section 1717-A, a
16written charter shall be developed which shall contain the
17provisions of the standardized charter application under section 
181719-A and which shall be signed by the local board of school
19directors of a school district, by the local boards of school
20directors of a school district in the case of a regional charter
21school or by the chairman of the appeal board pursuant to
22section [1717-A(i)(5)] 1717-A(i)(9) and the board of trustees of
23the charter school or regional charter school. This written
24charter, when duly signed by the local board of school directors
25of a school district, [or] by the local boards of school
26directors of a school district in the case of a regional charter
27school or by the chairman of the appeal board, and the charter
28school's or regional charter school's board of trustees, shall
29act as legal authorization for the establishment of a charter
30school or regional charter school. This written charter shall be

1legally binding on both the local board of school directors of a
2school district and the charter school's or regional charter 
3school's board of trustees. [Except as otherwise provided in
4subsection (b), the charter shall be for a period of no less
5than three (3) nor more than five (5) years and may be renewed
6for five (5) year periods upon reauthorization by the local
7board of school directors of a school district or the appeal
8board.] If the charter school or regional charter school 
9contracts with an educational management service provider, a 
10contract shall be executed once the charter is approved. A
11charter will be granted only for a school organized as a public,
12nonprofit corporation.

13(2)  The following shall apply to all charters granted by a
14school district:

15(i)  An initial charter executed pursuant to section
161720-A(a)(1) shall be for a period of five (5) years.

17(ii)  Prior to the effective date of the regulations
18implementing the performance matrix as required pursuant to
19section 1731.1-A, a charter may be renewed for five (5) year
20periods upon reauthorization by the local board of school
21directors or other governing body of a school district or the
22appeal board.

23(iii)  Upon the effective date of the regulations
24implementing the performance matrix as required pursuant to
25section 1731.1-A, the following shall apply:

26(A)  For charter schools and regional charter schools that
27have satisfied the academic quality benchmark established by the
28State Board of Education pursuant to section 1731.1-A, a charter
29may be renewed for ten (10) year periods upon reauthorization by
30the local board of school directors or other governing body of a

1school district or the appeal board.

2(B)  For charter schools and regional charter schools that
3have not satisfied the academic quality benchmark established by
4the State Board of Education pursuant to section 1731.1-A, a
5charter may be renewed for five (5) year periods upon
6reauthorization by the local board of school directors or other
7governing body of a school district or the appeal board.

8(b) (1) Notwithstanding subsection (a), a governing board
9of a school district of the first class may renew a charter for
10a period of one (1) year if the board of school directors
11determines that there is insufficient data concerning the
12charter school's academic performance to adequately assess that
13performance and determines that an additional year of
14performance data would yield sufficient data to assist the
15governing board in its decision whether to renew the charter for
16a period of five (5) years.

17(2) A one-year renewal pursuant to paragraph (1) shall not
18be considered an adjudication and may not be appealed to the
19State Charter School Appeal Board.

20(3) A governing board of a school district of the first
21class does not have the authority to renew a charter for
22successive one (1) year periods.

23(c) (1) A charter school or regional charter school may
24request amendments to its approved written charter by filing a
25written document describing the requested amendment with the
26local board of school directors.

27(2) Within thirty-five (35) days of its receipt of the
28request for an amendment, the local board of school directors
29shall hold a public hearing on the requested amendment under 65
30Pa.C.S. Ch. 7 (relating to open meetings).

1(3) Within thirty-five (35) days after the hearing, the
2local board of school directors shall grant or deny the
3requested amendment. Failure by the local board of school
4directors to hold a public hearing and to grant or deny the
5amendments within the time period specified in this subsection
6shall be deemed an approval.

7(4) An applicant for an amendment to a local board of school
8directors shall have the right to appeal the denial of a
9requested amendment to the appeal board provided for under
10section 1721-A.

11Section 9. Section 1721-A(a) and (e) of the act, added June
1219, 1997 (P.L.225, No.22), are amended to read:

13Section 1721-A. State Charter School Appeal Board.--(a) The
14State Charter School Appeal Board shall consist of the Secretary
15of Education and [six (6)] the following members who shall be
16appointed by the Governor by and with the consent of a majority
17of all the members of the Senate. [Appointments by the Governor
18shall not occur prior to January 1, 1999.] The Governor shall
19select the chairman of the appeal board to serve at the pleasure
20of the Governor. The members shall include:

21(1) A parent of a school-aged child enrolled in a charter 
22school entity.

23(2) A school board member.

24(3) A certified teacher actively employed in a public
25school.

26(4) A faculty member or administrative employe of an
27institution of higher education.

28(5) A member of the business community.

29(6) A member of the State Board of Education.

30(7) An administrator of a charter school entity.

1(8) A member of the board of trustees of a charter school
2entity.

3The term of office of members of the appeal board, other than
4the secretary, shall be for a period of four (4) years or until
5a successor is appointed and qualified, except that, of the
6initial appointees, the Governor shall designate two (2) members
7to serve terms of two (2) years, two (2) members to serve terms
8of three (3) years and two (2) members to serve terms of four
9(4) years. A parent member appointed under paragraph (1) shall 
10serve a term of four (4) years, provided the member's child 
11remains enrolled in the charter school entity. Any appointment
12to fill any vacancy shall be for the period of the unexpired
13term or until a successor is appointed and qualified.

14* * *

15(e) Meetings of the appeal board shall be conducted under 
16[the act of July 3, 1986 (P.L.388, No.84), known as the 
17"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings). 
18Documents of the appeal board shall be subject to the act of 
19[June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
20Know Law.] February 14, 2008 (P.L.6, No.3), known as the "Right-
21to-Know Law."

22Section 10. Section 1722-A(a), (b) and (d) of the act,
23amended November 17, 2010 (P.L.996, No.104), are amended and the
24section is amended by adding subsections to read:

25Section 1722-A. Facilities.--(a) A charter school entity
26may be located in an existing public school building, in a part
27of an existing public school building, in space provided on a
28privately owned site, in a public building or in any other
29suitable location.

30(b) The charter school entity facility shall be exempt from

1public school facility regulations except those pertaining to
2the health or safety of [the pupils] students.

3(b.1) (1) A charter school entity shall have the right of
4first refusal to purchase or lease, for educational purposes
5only, a public school building or a part of a public school
6building which is no longer in active use by the property
7titleholder, at the price of one of the following:

8(i) The last best offer above fair market value received in
9the ninety (90) days preceding the charter school entity's
10offer.

11(ii) Fair market value, if no offer has been received in the
12ninety (90) days preceding the charter school entity's offer.

13(iii) Below fair market value, upon the mutual agreement of
14the school entity and the charter school entity.

15(2) Subject to paragraph (4), a school entity shall accept
16an offer from a charter school entity that conforms to the
17provisions of paragraph (1).

18(3) The department shall provide a page on its publicly
19accessible Internet website on which school entities are
20required to post a notice for each public school building or
21part of a public school building that is available for purchase
22or lease. A school entity shall submit a notice to the
23department on a form to be developed by the department. The
24department shall post the notice within five (5) days of
25receiving the form.

26(4) The following shall apply to the sale or lease of a
27public school building or a part of a public school building by
28a school entity:

29(i) A school entity may not enter a contract to sell or
30lease a building or part of a building until at least thirty

1(30) days after the posting of a notice as required under
2paragraph (3).

3(ii) Where two (2) or more charter school entities make
4offers on the same building or part of a building that conform
5to the provisions of this subsection, the school entity shall:

6(A) Accept the first offer where all the offers are equal.

7(B) Accept the best offer where the offers differ.

8(d) Notwithstanding any other provision of this act, a
9school district [of the first class] may, in its discretion,
10permit a charter school or regional charter school to operate
11its school at more than one location.

12* * *

13(f) (1) Alcoholic beverages shall not be available for
14consumption, purchase or sale in any charter school entity
15facility.

16(2) If, in the case of a charter school or regional charter 
17school, the local board of school directors reasonably believes
18that alcoholic beverages have been made available for
19consumption, purchase or sale in the charter school or regional
20charter school facility, the local board of school directors
21shall notify the department.

22(3) If alcoholic beverages have been made available for
23consumption, purchase or sale in a charter school entity
24facility, the secretary shall order the following forfeitures
25against the charter school entity:

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

27(ii) A fine of $5,000 for the second or subsequent
28violation.

29(4) The charter school entity may appeal the order of the
30secretary under 2 Pa.C.S. Chs. 5 (relating to practice and

1procedure) and 7 (relating to judicial review).

2Section 11. Section 1723-A(a) and (b) of the act, amended
3June 26, 1999 (P.L.394, No.36) are amended to read:

4Section 1723-A. [Enrollment] Admission and Enrollment 
5Requirements.--(a) (1) All resident children in this
6Commonwealth who submit a completed enrollment form in 
7accordance with clause (3) qualify for admission to a charter
8school entity within the provisions of subsection (b). [If] In 
9the case of a charter school, if more students apply to the
10charter school than the number of attendance slots available in
11the school, then students must be selected on a random basis
12from a pool of [qualified applicants meeting the established
13eligibility criteria and submitting an application] eligible 
14applicants who have submitted an enrollment form in accordance 
15with clauses (3) and (4) by the deadline established by the
16charter school, except that the charter school may give
17preference in enrollment to a child of a parent who has actively
18participated in the development of the charter school [and], to
19siblings of students presently enrolled in the charter school
20and to siblings of students selected for enrollment during the 
21lottery process. First preference shall be given to students who
22reside in the district or districts[.] in which the charter 
23school is physically located.

24(2) If a charter school has a waiting list following its
25initial selection of eligible applicants under clause (1), the
26charter school shall select eligible applicants from the waiting
27list as spaces become available. All children shall be assigned
28to the waiting list on a random basis. When selecting eligible
29applicants from the waiting list, a charter school shall give
30first preference to students as provided under clause (1) and to

1those who reside in the district or districts in which the
2charter school is physically located until the charter school
3again reaches its maximum capacity of students. If a charter
4school has a waiting list, once the charter school has exhausted
5the waiting list of resident children, it may then enroll
6children on the waiting list who reside outside of the district.
7Nonresident children shall also be selected on a random basis.

8(3) The department, in consultation with representatives of
9charter school entities, shall develop a standard enrollment
10form that shall be used by all eligible applicants to apply to a
11charter school entity. The standard enrollment form shall only
12request information necessary to allow the charter school entity
13to identify the student, grade level and residency, including:

14(i) The student's name, physical address, telephone number,
15age, birth date and current grade level.

16(ii) The name, physical address, telephone number and e-mail
17address of the student's parent or guardian.

18(4) The standard enrollment form shall be made physically
19available at each charter school entity, in a form that complies
20with Federal and State law and posted on the publicly accessible
21Internet website of each charter school entity, if available. A
22charter school entity may accept the enrollment form via
23electronic means.

24(5) When a student applies to a charter school entity, a
25charter school entity shall not require or request information
26beyond the contents of the standard enrollment form developed by
27the department.

28(6) Nothing in this section shall prohibit a charter school
29entity from requesting the submission of additional records and
30information that public schools are entitled to receive after a
 

1student is accepted for admission to a charter school entity.

2(7) As used in this subsection "eligible applicant" shall
3mean a student who is seeking to enter a grade level offered by
4the charter school and meets the requirements of 22 Pa. Code §§
511.12 (relating to school age), 11.13 (relating to compulsory
6school age), 11.14 (relating to admission to kindergarten when
7provided), 11.15 (relating to admission of beginners), 11.16
8(relating to early admission of beginners) and 12.1 (relating to
9free education and attendance) and student residency
10requirements.

11(b) (1) A charter school entity shall not discriminate in
12its admission policies or practices on the basis of intellectual
13ability, [except as provided in paragraph (2), or] athletic
14ability, measures of achievement or aptitude, status as a person
15with a disability, proficiency in the English language or any
16other basis that would be illegal if used by a school district.

17(2) A charter school entity may limit [admission] its 
18academic focus to a particular grade level[,] or a targeted
19population group composed of at-risk students[, or areas of
20concentration of the school such as mathematics, science or the
21arts. A charter school may establish reasonable criteria to
22evaluate prospective students which shall be outlined in the
23school's charter.] or a specialized area or accelerated program 
24of study, such as mathematics, science or the arts.

25* * *

26Section 12. Section 1724-A(d) of the act, added June 19,
271997 (P.L.225, No.22), is reenacted and amended to read:

28Section 1724-A. School Staff.--* * *

29(d) Every employe of a charter school shall be provided [the
30same] similar health care benefits as the employe would be

1provided if he or she were an employe of the local district. The
2local board of school directors may require the charter school
3to provide [the same] similar terms and conditions with regard
4to health insurance as the collective bargaining agreement of
5the school district to include employe contributions to the
6district's health benefits plan. The charter school shall make
7any required employer's contribution to the district's health
8plan to an insurer, a local board of school directors or a
9contractual representative of school employes, whichever is
10appropriate to provide the required coverage.

11* * *

12Section 13. Section 1725-A(a)(2) of the act, amended June
1329, 2002 (P.L.524, No.88), is amended to read:

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

16* * *

17(2) For non-special education students, the charter school
18shall receive for each student enrolled no less than the
19budgeted total expenditure per average daily membership of the
20prior school year, as defined in section 2501(20), minus the
21budgeted expenditures of the district of residence for nonpublic
22school programs; adult education programs; community/junior
23college programs; student transportation services; for special
24education programs; facilities acquisition, construction and
25improvement services; programs and services to the extent they 
26are funded from the proceeds of competitive grants from private 
27or public resources or from contributions or donations from 
28private sources; and other financing uses, including debt
29service and fund transfers as provided in the Manual of
30Accounting and Related Financial Procedures for Pennsylvania

1School Systems established by the department. This amount shall
2be paid by the district of residence of each student.

3* * *

4Section 14. Section 1728-A(a) of the act, added June 19,
51997 (P.L.225, No.22), is amended to read:

6Section 1728-A. Annual Reports and Assessments.--(a) (1)
7The local board of school directors shall annually assess
8whether each charter school or regional charter school is
9meeting the goals of its charter and shall conduct a
10comprehensive review prior to granting a [five (5) year] renewal
11of the charter pursuant to section 1720-A(a)(2). The local board
12of school directors shall have ongoing access to the records and
13facilities of the charter school or regional charter school to
14ensure that the charter school or regional charter school is in
15compliance with its charter and this act and that requirements
16for testing, civil rights and student health and safety are
17being met.

18(2) Ongoing access to a charter school's or regional charter
19school's records shall mean that the local board of school
20directors shall have access to records such as financial
21reports, financial audits, aggregate standardized test scores
22without student-identifying information and teacher
23certification and personnel records.

24(3) Charter schools and regional charter schools shall
25comply fully with the requirements of the Family Educational
26Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. §
271232g) and associated regulations. No personally identifiable
28information from education records shall be provided by the
29charter school or regional charter school to the school district
30except in compliance with the Family Educational Rights and

1Privacy Act of 1974.

2(b) In order to facilitate the local board's review and
3secretary's report, each charter school or regional charter
4school shall submit an annual report no later than August 1 of
5each year to the local board of school directors and the
6secretary in the form prescribed by the secretary.

7[(c) Five (5) years following the effective date of this
8article, the secretary shall contract with an independent
9professional consultant with expertise in public and private
10education. The consultant shall receive input from members of
11the educational community and the public on the charter school
12program. The consultant shall submit a report to the secretary,
13the Governor and the General Assembly and an evaluation of the
14charter school program, which shall include a recommendation on
15the advisability of the continuation, modification, expansion or
16termination of the program and any recommendations for changes
17in the structure of the program.]

18(d) A charter school entity shall form an independent audit
19committee of its board members which shall review at the close
20of each fiscal year a complete certified audit of the operations
21of the charter school entity. The audit shall be conducted by a
22qualified independent certified public accountant. The audit
23shall be conducted under generally accepted audit standards of
24the Governmental Accounting Standards Board and shall include
25the following:

26(1) An enrollment test to verify the accuracy of student
27enrollment and reporting to the State.

28(2) Full review of expense reimbursements for board members
29and administrators, including sampling of all reimbursements.

30(3) Review of internal controls, including review of

1receipts and disbursements.

2(4) Review of annual Federal and State tax filings,
3including the Internal Revenue Service Form 990, Return of
4Organization Exempt from Income Tax and all related schedules
5and appendices for the charter school entity and charter school
6foundation, if applicable.

7(5) Review of the financial statements of any charter school
8foundation.

9(6) Review of the selection and acceptance process of all
10contracts publicly bid pursuant to section 751.

11(7) Review of all board policies and procedures with regard
12to internal controls, code of ethics, conflicts of interest,
13whistle-blower protections, complaints from parents or the
14public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
15meetings), compliance with the "Right-to-Know Law," finances,
16budgeting, audits, public bidding and bonding.

17(e) The certified audit under subsection (d) and the annual
18budget under subsection (g) are public documents and shall be
19made available on the charter school entity's publicly
20accessible Internet website, if available, and in the case of a
21charter school or regional charter school, on the school
22district's publicly accessible Internet website.

23(f) A charter school entity may be subject to an annual
24audit by the Auditor General, in addition to any other audits
25required by Federal law or this article.

26(g) A charter school entity shall annually provide the
27department and, in the case of a charter school or regional
28charter school, shall annually provide the school district, with
29a copy of the annual budget for the operation of the charter
30school entity that identifies the following:

1(1) The source of funding for all expenditures as part of
2its reporting under subsection (a).

3(2) Where funding is provided by a charter school
4foundation, the amount of funds and a description of the use of
5the funds.

6(3) The salaries of all administrators of the charter school
7entity.

8(4) All expenditures to an educational management service
9provider.

10(h) (1) Notwithstanding any other provision of law, a
11charter school entity and any affiliated charter school
12foundation shall make copies of its annual Federal and State tax
13filings available upon request and on the foundation's or
14charter school entity's publicly accessible Internet website, if
15applicable, including Internal Revenue Service Form 990, Return
16of Organization Exempt from Income Tax and all related schedules
17and appendices.

18(2) The charter school foundation shall also make copies of
19its annual budget available upon request and on the foundation's
20or the charter school entity's publicly accessible Internet
21website within thirty (30) days of the close of the foundation's
22fiscal year.

23(3) The annual budget shall include the salaries of all
24employes of the charter school foundation.

25Section 15. The act is amended by adding a section to read:

26Section 1728.2-A. Charter Authorizer Accountability.--(a)
27Each local board of school directors shall be required to submit
28to the department an annual report summarizing:

29(1) The strategic vision for chartering and progress toward
30achieving that vision.

1(2) The academic and financial performance of all operating
2public charter schools and regional charter schools overseen by
3the local board of school directors according to the performance
4expectations for public charter schools set forth in this act.

5(3) The status of the local board of school directors'
6charter school and regional charter school portfolio,
7identifying all public charter schools in each of the following
8categories: (i) approved, but not open; (ii) open and operating;
9and (iii) closed, including the year closed and the reason for
10closure.

11(4) The authorizing functions provided by the local board of
12school directors to the public charter schools and regional
13charter schools under its purview, including the authorizer's
14operating costs and expenses detailed in annual audited
15financial statements that conform to generally accepted
16accounting principles.

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

18(1) Oversight of the performance of each established local
19board of school directors.

20(2) Formal evaluation of the overall State charter school
21program and outcomes every five years.

22(3) For each local board of school directors an annual
23review, based on objective data, to determine how well it is
24exercising its duties and maintaining a portfolio of high-
25performing charter schools.

26(4) In reviewing or evaluating the performance of each local
27board of school directors, the department shall apply nationally
28recognized principles and standards of quality charter school
29authorizing including, but not limited to, those of the National
30Association of Charter School Authorizers.

1(c) The department shall publish the annual reviews on its
2publicly accessible Internet website and submit a summary report
3regarding performance to the Governor and the General Assembly.

4(d) (1) By November 30, 2014, the department shall develop
5a plan for sanctioning local boards of school directors that
6maintain portfolios with persistently low-performing charter
7schools and regional charter schools and fail to provide
8adequate oversight or intervention that may include a corrective
9action plan and other sanctions deemed necessary by the
10department.

11(2) The department must issue its plan for sanctioning local
12boards of school directors to the President pro tempore of the
13Senate, the Majority Leader and Minority Leader of the Senate,
14the Education Committee of the Senate, the Speaker of the House
15of Representatives, the Majority Leader and Minority Leader of
16the House of Representatives and the Education Committee of the
17House of Representatives.

18(3) The plan for sanctioning local boards of school
19directors developed by the department shall not go into effect
20unless the plan for sanctioning local boards of school directors
21is approved by an act of the General Assembly.

22Section 16. Section 1729-A(a), (b) and (c) of the act, added
23June 19, 1997 (P.L.225, No.22), are amended to read:

24Section 1729-A. Causes for Nonrenewal or Termination.--(a)
25During the term of the charter or at the end of the term of the
26charter, the local board of school directors may choose to
27revoke or not to renew the charter based on any of the
28following:

29(1) One or more material violations of any of the
30conditions, standards or procedures contained in the written

1charter signed pursuant to section 1720-A.

2(2) Failure to meet the requirements for student performance
3[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
4subsequent regulations promulgated to replace 22 Pa. Code Ch. 5]
5on assessments or failure to meet any performance standard set
6forth in the written charter signed pursuant to section [1716-A] 
71720-A.

8(3) Failure to meet generally accepted standards of fiscal
9management or audit requirements.

10(4) Violation of provisions of this article.

11(5) Violation of any provision of law from which the charter
12school entity has not been exempted, including Federal laws and
13regulations governing children with disabilities.

14[(6) The charter school has been convicted of fraud.]

15* * *

16(b) [A member of the board of trustees who is convicted of a
17felony or any crime involving moral turpitude shall be
18immediately disqualified from serving on the board of trustees.]
19If, after a hearing under this section, a local board of school 
20directors or, in the case of a cyber charter school, the 
21department proves by a preponderance of the evidence that an 
22administrator or board member of a charter school entity has 
23violated this article, the terms and conditions of the charter 
24or any other law, the local board of school directors or, in the 
25case of a cyber charter school, the department may require the 
26charter school entity to replace the administrator or board of 
27trustees member in order to obtain renewal of the charter. The 
28local board of school directors or, in the case of a cyber 
29charter school, the department may refer its findings to the 
30district attorney with jurisdiction or to the Office of Attorney
 

1General for prosecution if the local board of school directors 
2or, in the case of a cyber charter school, the department 
3discovers or receives information about possible violations of 
4law by any person affiliated with or employed by a charter 
5school entity.

6(c) Any notice of revocation or nonrenewal of a charter
7given by the local board of school directors of a school
8district shall state the grounds for such action with reasonable
9specificity and give reasonable notice to the [governing] board
10of trustees of the charter school or regional charter school of
11the date on which a public hearing concerning the revocation or
12nonrenewal will be held. The local board of school directors
13shall conduct such hearing, present evidence in support of the
14grounds for revocation or nonrenewal stated in its notice and
15give the charter school or regional charter school reasonable
16opportunity to offer testimony before taking final action.
17Formal action revoking or not renewing a charter shall be taken
18by the local board of school directors held at a public meeting
19pursuant to [the act of July 3, 1986 (P.L.388, No.84), known as
20the "Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating to open 
21meetings) after the public has had thirty (30) days to provide
22comments to the board. All proceedings of the local board
23pursuant to this subsection shall be subject to 2 Pa.C.S. Ch. 5
24Subch. B (relating to practice and procedure of local agencies).
25Except as provided in subsection (d), the decision of the local
26board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B (relating
27to judicial review of local agency action).

28* * *

29Section 17. The act is amended by adding sections to read:

30Section 1729.1-A. Evaluation of Educators.--(a) All

1applications by a charter school entity for a charter or for the
2renewal of a charter shall include a system of evaluation for
3educators that includes:

4(1) at least four (4) rating categories of educator
5performance; and

6(2) multiple measures of student performance which shall
7include, but may not be limited to, value-added assessment
8system data made available by the department under section 221
9and student performance on the most recent assessments for which
10results have been released by the department and may include
11goals specific to the mission of the charter school entity's
12charter.

13(b) Nothing in this section shall preempt the powers of a
14board of trustees under section 1716-A(a) nor affect the intent
15of the General Assembly provided in section 1702-A(3) and (4).

16(c) For purposes of this section, the term "educator" shall
17include all professional employes who are certified as teachers
18and noncertified staff members who teach in a charter school
19entity.

20Section 1729.2-A. Multiple Charter School Organizations.--
21(a) A multiple charter school organization approved by the
22secretary under this section shall be:

23(1) granted legal authority to operate two (2) or more
24individual charter schools established under the requirements of
25section 1717-A, under the management of a single board of
26trustees and a chief administrator, subject to the oversight of
27the authorizing school district for each charter school included
28in the multiple charter school organization;

29(2) subject to all of the requirements of this article,
30unless otherwise provided for under this section; and

1(3) the holder of the charter of each individual charter
2school within the organization.

3(b) Subject to the requirements of this section and 15
4Pa.C.S. Pt. II Subpt. C (relating to nonprofit corporations),
5two (2) or more charter schools may consolidate into a multiple
6charter school organization pursuant to the following:

7(1) Each charter school seeking to consolidate pursuant to
8this section shall submit an application for consolidation to
9the department and to the authorizing school district for each
10charter school included in the proposed consolidation. The
11application must be submitted to the department and to all
12authorizing school districts on the same day.

13(2) A school district that receives an application for
14consolidation under paragraph (1) may object to the proposed
15consolidation by filing a statement of its objections to the
16application with the department and each charter school included
17in the proposed consolidation within thirty (30) days of the
18submission date. If an authorizing school district does not file
19a statement of its objections within thirty (30) days of the
20submission date, the authorizing school district shall be deemed
21to assent to the application.

22(3) Within thirty (30) days of its receipt of a school
23district's statement of its objections under paragraph (2), the
24department shall conduct a hearing to consider the application
25and the school district's objections. The hearing required under
26this paragraph shall be conducted by an impartial hearing
27officer appointed by the Governor's Office of General
28Counsel. In conducting the hearing, the hearing officer may
29request that the authorizing school districts and the charter
30schools included in the proposed consolidation provide any

1supplemental information the hearing officer deems necessary in
2considering the application and the school district's
3objections.

4(4) Within sixty (60) days of the hearing conducted pursuant
5to paragraph (3), the hearing officer shall submit to the
6secretary a report stating the hearing officer's recommendations
7concerning the application.

8(5) (i) Subject to subparagraph (ii), within sixty (60)
9days following receipt of the report, the secretary shall issue
10a decision and serve the decision on all charter schools
11included in the proposed consolidation and the authorizing
12school district for each charter school included in the proposed
13consolidation. In issuing a decision, the secretary shall
14consider only whether the proposed consolidation is in
15compliance with subsection (c).

16(ii) If no authorizing school district for any charter
17included in the proposed consolidation files a statement of its
18objections with the department within thirty (30) days of the
19submission date, the secretary shall issue the decision required
20under subparagraph (i) within sixty (60) days of the submission
21date. In issuing a decision under this subparagraph, the
22secretary may request that the authorizing school districts and
23the charter schools included in the proposed consolidation
24provide any supplemental information the secretary deems
25necessary in considering the application.

26(6) A decision of the secretary under this section may be
27appealed to the Commonwealth Court under 2 Pa.C.S. (relating to
28administrative law and procedure).

29(7) A proposed consolidation under this section shall not
30require court approval under 20 Pa.C.S. Ch. 77 (relating to

1trusts).

2(c) A charter school that, within either of the two (2)
3school years immediately preceding the submission date, has
4failed to meet the requirements for student performance
5specified in 22 Pa. Code Ch. 4 (relating to academic standards
6and assessment), accepted standards of fiscal management or
7audit requirements or performance standards of the matrix
8established under section 1731.1-A shall not be eligible to
9consolidate with another charter school, unless the
10consolidation includes a charter school demonstrating that it
11has satisfied the requirements for the most recent two (2)
12school years.

13(d)  A multiple charter school organization may:

14(1) Participate in the assessment system in the same manner
15in which a school district participates, with its individual
16charter schools within the organization participating in the
17assessment system in the same manner as individual schools
18within school districts. All data gathered for purposes of
19evaluation shall be gathered in the same manner in which data is
20gathered in the case of school districts and individual schools
21within school districts. Nothing in this paragraph shall be
22construed to alter the manner in which charter school
23performance on assessments is measured as required under the No
24Child Left Behind Act of 2001 (Public Law 107-110, 115 Stat.
251425), or its successor Federal statute.

26(2) Allow a student enrolled in a charter school within the
27organization to matriculate to another charter school within the
28organization so as to complete a course of instruction in an
29educational institution from kindergarten through grade twelve
30or otherwise in the best interests of the student.

1(3) Add existing charter schools to the organization
2pursuant to the procedure specified in subsection (b). Only a
3charter school already established under section 1717-A may be
4added to a multiple charter school organization.

5(e) The charter of each individual charter school within a
6multiple charter school organization shall be subject to
7nonrenewal or revocation by the authorizing school district for
8the individual charter school pursuant to section 1729-A. The
9nonrenewal or revocation of the charter of an individual charter
10school within a multiple charter school organization shall not
11affect the status of the charter of any other individual charter
12school within the organization.

13(f) The department shall develop and place on its publicly
14accessible Internet website a standard application form that
15charter schools shall use in applying for consolidation under
16this section. The application form shall contain the following
17information:

18(1) The name of the multiple charter school organization.

19(2) The names of the charter schools included in the
20proposed consolidation.

21(3) A copy of the approved charter of each charter school
22included in the proposed consolidation.

23(4) An organizational chart clearly presenting the proposed
24governance structure of the multiple charter school
25organization, including lines of authority and reporting between
26the board of trustees, chief administrator, administrators,
27staff and any educational management service provider that will
28play a role in providing management services to the charter
29schools within the proposed organization.

30(5) A clear description of the roles and responsibilities

1for the board of trustees, chief administrator, administrators
2and any other entities, including a charter school foundation,
3shown in the organizational chart.

4(6) A clear description of the method for the appointment or
5election of members of the board of trustees of the proposed
6organization.

7(7) Standards for board of trustees performance which shall,
8at a minimum, include compliance with all applicable laws,
9regulations and terms of the charter of each charter school
10included in the proposed organization.

11(8) Enrollment procedures for each charter school included
12in the proposed organization.

13(9) Any other information as deemed necessary by the
14department.

15(g) Subject to subsection (a), nothing in this section shall
16be construed to affect or change the terms or conditions of the
17charters of any individual charter schools that are consolidated
18under this section, including, but not limited to, any
19obligation of a school district to provide transportation for
20students enrolled in an individual charter school within a
21multiple charter school organization.

22(h) As used in this section, the following words and phrases
23shall have the meanings given to them in this subsection unless
24the context clearly indicates otherwise:

25"Authorizing school district."  The school district that
26granted the initial charter of a charter school.

27"Charter school."  A charter school or regional charter
28school.

29"Decision."  The secretary's written approval or rejection of
30an application for consolidation.

1"Multiple charter school organization" or "organization."  A
2multiple charter school organization established under this
3section.

4"Submission date."  The date on which a consolidation
5application is submitted to the department and the authorizing
6school district for each charter school included in a proposed
7consolidation.

8Section 1731.1-A Performance Matrix.--(a) Within one (1)
9year of the effective date of this section, the State Board of
10Education shall develop a standard performance matrix to
11evaluate charter school entity performance. Within one (1) year
12of the effective date of this section, the State Board of
13Education shall also propose regulations pursuant to the act of
14June 25, 1982 (P.L.633, No.181), known as the "Regulatory Review
15Act," to implement this section.

16(b) The performance matrix shall assess performance by
17utilizing objective criteria, including, but not limited to:
18student performance on assessments; annual growth as measured by
19the Pennsylvania Value-Added Assessment System; attendance;
20attrition rates; graduation rates; other standardized test
21scores; school safety; parent satisfaction; accreditation by a
22nationally recognized accreditation agency, including the Middle
23States Association of Colleges and Schools or another regional
24institutional accrediting agency recognized by the United States
25Department of Education or an equivalent federally recognized
26body for charter school education; and other measures of school
27quality, including measures for assessing teacher effectiveness.

28(c) In developing the performance matrix, the State Board of
29Education shall determine an academic quality benchmark the
30satisfaction of which shall qualify a charter school entity for

1a ten (10) year renewal term pursuant to sections 1720-A(a)(2)
2and 1745-A(f)(3). The academic quality benchmark shall be
3included in the regulations required under subsection (a).

4(d) In developing the performance matrix, the State Board of
5Education may contract for consulting services with an entity
6that has experience in developing performance matrices if the
7services are procured through a competitive bidding process.

8(e) Neither the department nor the local board of school
9directors may develop a separate performance matrix for the
10evaluation of a charter school entity.

11(f) A local board of school directors shall utilize the
12standard performance matrix as a primary factor in evaluating
13new and renewal charter school and regional charter school
14applicants and in annual monitoring and evaluation of charter
15schools and regional charter schools.

16(g) The department shall utilize the standard performance
17matrix as a primary factor in evaluating new and renewal cyber
18charter school applicants, in evaluating consolidation
19applications under section 1729.2-A and in annual monitoring and
20evaluation of cyber charter schools.

21(h) In developing the performance matrix and promulgating 
22the regulations required under subsection (a), the State Board 
23of Education shall convene and consult with a Statewide advisory 
24committee which shall consist of representatives of the 
25department and a minimum of seven (7) representatives from 
26charter schools, regional charter schools, cyber charter 
27schools, school district personnel and institutions of higher 
28education with experience in the oversight of charter schools. 
29Members of the committee shall be selected to be representative 
30of the urban, rural and suburban areas of this Commonwealth.

1(i) The Statewide advisory committee required to be convened
2under subsection (h) shall be convened not later than thirty
3(30) days after the effective date of this section and shall
4meet regularly to fulfill requirements of this paragraph.

5(j) The department shall distribute the performance matrix
6to all school districts and shall publish the matrix on the
7department's publicly accessible Internet website.

8Section 18. Section 1732-A of the act, amended June 29, 2002
9(P.L.524, No.88), is amended to read:

10Section 1732-A. Provisions Applicable to Charter Schools and 
11Regional Charter Schools.--(a) Charter schools and regional 
12charter schools shall be subject to the following:

13Sections 108, 110, 111, 321, 325, 326, 327, 431, 436, 443,
14510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753,
15[755,] 771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a),
161205.1, 1205.2, 1205.3, 1205.4, 1205.5, 1301, 1302, 1303, 1310,
171317, 1317.1, 1317.2, 1317.3, 1318, 1327, 1330, 1332, 1333,
181303-A, 1513, 1517, 1518, 1521, 1523, 1531, 1547, 2014-A,
19Article XIII-A and Article XIV.

20Act of July 19, 1957 (P.L.1017, No.451), known as the "State
21Adverse Interest Act."

22Act of July 17, 1961 (P.L.776, No.341), known as the
23"Pennsylvania Fair Educational Opportunities Act."

24Act of July 19, 1965 (P.L.215, No.116), entitled "An act
25providing for the use of eye protective devices by persons
26engaged in hazardous activities or exposed to known dangers in
27schools, colleges and universities."

28Section 4 of the act of January 25, 1966 (1965 P.L.1546,
29No.541), entitled "An act providing scholarships and providing
30funds to secure Federal funds for qualified students of the

1Commonwealth of Pennsylvania who need financial assistance to
2attend postsecondary institutions of higher learning, making an
3appropriation, and providing for the administration of this
4act."

5Act of July 12, 1972 (P.L.765, No.181), entitled "An act
6relating to drugs and alcohol and their abuse, providing for
7projects and programs and grants to educational agencies, other
8public or private agencies, institutions or organizations."

9Act of December 15, 1986 (P.L.1595, No.175), known as the
10"Antihazing Law."

1165 Pa.C.S. Ch. 7 (relating to open meetings).

1265 Pa.C.S. Ch. 11 (relating to ethics standards and financial
13disclosure).

14(b) Charter schools and regional charter schools shall be
15subject to the following provisions of 22 Pa. Code:

16[Section 5.216 (relating to ESOL).

17Section 5.4 (relating to general policies).]

18Chapter 4 (relating to academic standards and assessments).

19Chapter 11 (relating to pupil attendance).

20Chapter 12 (relating to students).

21Section 32.3 (relating to assurances).

22Section 121.3 (relating to discrimination prohibited).

23Section 235.4 (relating to practices).

24Section 235.8 (relating to civil rights).

25Chapter 711 (relating to charter school services and programs
26for children with disabilities).

27(c) (1) The secretary may promulgate additional regulations
28relating to charter schools and regional charter schools.

29(2) The secretary shall have the authority and the
30responsibility to ensure that charter schools and regional
 

1charter schools comply with Federal laws and regulations
2governing children with disabilities. The secretary shall
3promulgate regulations to implement this provision.

4Section 19. The act is amended by adding a section to read:

5Section 1733-A. Effect on Existing Charter School
6Entities.--(a) Within one (1) year of the effective date of
7this section, a charter school entity established under section
81717-A, 1718-A or 1745-A prior to the effective date of this
9section shall amend the current charter through the amendment
10process under sections 1720-A(c) and 1745-A(f)(5) as needed to
11reflect the requirements of this article. Any renewal that takes
12effect after July 15, 2013, shall be for the term specified
13under sections 1720-A(a) and 1745-A(f)(3).

14(b) A charter school entity approved after the effective
15date of this section shall be in full compliance with this
16article.

17(c) Within sixty (60) days of the effective date of this
18section, each charter school entity shall demonstrate to the
19satisfaction of the local board of school directors or, in the
20case of a cyber charter school, to the satisfaction of the
21department that the charter school entity is in compliance with
22sections 1332 and 1333, including the institution of truancy
23proceedings when required under section 1333.

24Section 20. Sections 1741-A(c), 1742-A and 1743-A(e) of the 
25act, added June 29, 2002 (P.L.524, No.88), are amended to read:

26Section 1741-A. Powers and duties of department.

27* * *

28(c) Documents.--Documents of the appeal board shall be
29subject to [the act of June 21, 1957 (P.L.390, No.212), referred
30to as the Right-to-Know Law.] the act of February 14, 2008
 

1(P.L.6, No.3), known as the Right-to-Know Law.

2Section 1742-A. Assessment and evaluation.

3The department shall:

4(1) Annually assess whether each cyber charter school is
5meeting the goals of its charter and is in compliance with
6the provisions of the charter and conduct a comprehensive
7review prior to granting a [five-year] renewal of the charter
8for the period specified in section 1745-A(f)(3).

9(2) Annually review each cyber charter school's
10performance on the Pennsylvania System of School Assessment
11test, standardized tests and other performance indicators to
12ensure compliance with 22 Pa. Code Ch. 4 (relating to
13academic standards and assessment) or subsequent regulations
14promulgated to replace 22 Pa. Code Ch. 4.

15(3) Have ongoing access to all records, instructional
16materials and student and staff records of each cyber charter
17school and to every cyber charter school facility to ensure
18the cyber charter school is in compliance with its charter
19and this subdivision.

20Section 1743-A. Cyber charter school requirements and
21prohibitions.

22* * *

23(e) Students.--For each student enrolled, a cyber charter
24school shall:

25(1) provide all instructional materials, which may 
26include electronic or digital books in place of textbooks;

27(2) provide all equipment, including, but not limited
28to, a computer, computer monitor and printer; and

29(3) provide or reimburse for all technology and services
30necessary for the on-line delivery of the curriculum and

1instruction.

2The Commonwealth shall not be liable for any reimbursement owed
3to students, parents or guardians by a cyber charter school
4under paragraph (3).

5* * *

6Section 21. Section 1745-A(c), (e) and (f) of the act, added
7June 29, 2002 (P.L.524, No.88), are amended and the section is
8amended by adding a subsection to read:

9Section 1745-A. Establishment of cyber charter school.

10* * *

11(b.1) Local board of school directors or intermediate
12unit.--

13(1) A cyber charter school may be established by a local
14board of school directors or an intermediate unit if the
15procedures and requirements of this article are satisfied.

16(2) Nothing in this article shall be construed to
17preclude a school district or an intermediate unit from
18offering instruction via the Internet or other electronic
19means, except that the instruction shall not be recognized as
20a cyber charter school under this article unless the school
21district or intermediate unit establishes a cyber charter
22school pursuant to subsections (a) and (b.1)(1).

23(c) Attendance.--Attendance at a cyber charter school shall
24satisfy requirements for compulsory attendance, subject to 
25penalties for violations of compulsory attendance requirements 
26under section 1333.

27* * *

28(e)  Grant or denial.--Within 120 days of receipt of an
29application, the department shall grant or deny the application.
30The department shall review the application and shall hold at

1least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
2open meetings). At least 30 days prior to the hearing, the
3department shall publish in the Pennsylvania Bulletin and on the
4department's [World Wide Web site] publicly accessible Internet 
5website notice of the hearing and the purpose of the
6application.

7(f) Evaluation criteria.--

8(1) A cyber charter school application submitted under
9this subdivision shall be evaluated by the department based
10on the following criteria:

11(i) The demonstrated, sustainable support for the
12cyber charter school plan by teachers, parents [or],
13guardians and students.

14(ii) The capability of the cyber charter school
15applicant, in terms of support and planning, to provide
16comprehensive learning experiences to students under the
17charter.

18(iii) The extent to which the programs outlined in
19the application will enable students to meet the academic
20standards under 22 Pa. Code Ch. 4 (relating to academic
21standards and assessment) or subsequent regulations
22promulgated to replace 22 Pa. Code Ch. 4.

23(iv) The extent to which the application meets the
24requirements of section 1747-A.

25(v) The extent to which the cyber charter school may
26serve as a model for other public schools.

27(2) Written notice of the action of the department shall
28be sent by certified mail to the applicant and published on
29the department's [World Wide Web site] publicly accessible 
30Internet website. If the application is denied, the reasons

1for denial, including a description of deficiencies in the
2application, shall be clearly stated in the notice.

3(3) Upon approval of a cyber charter school application,
4a written charter shall be developed which shall contain the
5provisions of the charter application and be signed by the
6secretary and each member of the board of trustees of the
7cyber charter school. The charter, when duly signed, shall
8act as legal authorization of the establishment of a cyber
9charter school. The charter shall be legally binding on the
10department, the cyber charter school and its board of
11trustees. The charter [shall be for a period of no less than
12three years nor more than five years and may be renewed for a
13period of five years by the department.] term shall be as 
14follows:

15(i)  An initial charter granted pursuant to this
16section shall be for a period of five years.

17(ii)  Prior to the effective date of the regulations
18implementing the performance matrix as required pursuant
19to section 1731.1-A, a charter may be renewed for five-
20year periods upon reauthorization by the department.

21(iii)  Upon the effective date of the regulations
22implementing the performance matrix as required pursuant
23to section 1731.1-A, the following shall apply:

24(A)  For cyber charter schools that have
25satisfied the academic quality benchmark established
26by the State Board of Education pursuant to section
271731.1-A, a charter may be renewed for ten-year
28periods upon reauthorization by the department.

29(B)  For cyber charter schools that have not
30satisfied the academic quality benchmark established

1by the State Board of Education pursuant to section
21731.1-A, a charter may be renewed for five-year
3periods upon reauthorization by the department.

4(4) The decision of the department to deny an
5application may be appealed to the appeal board.

6(5) (i) A cyber charter school may request amendments
7to its approved written charter by filing with the department
8a written document describing the requested amendment.

9(ii) Within 20 days of its receipt of the request
10for an amendment, the department shall hold a public
11hearing on the requested amendment under 65 Pa.C.S. Ch. 7
12(relating to open meetings).

13(iii) Within 20 days after the hearing, the
14department shall grant or deny the requested amendment.
15Failure by the department to hold a public hearing and to
16grant or deny the amendments within the time period
17specified shall be deemed an approval.

18(iv) An applicant for an amendment shall have the
19right to appeal the denial of a requested amendment to
20the appeal board provided for under section 1721-A.

21* * *

22Section 22. Section 1749-A(a) of the act, added June 29,
232002 (P.L.524, No.88), is amended to read:

24Section 1749-A. Applicability of other provisions of this act
25and of other acts and regulations.

26(a) General requirements.--Cyber charter schools shall be
27subject to the following:

28(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
29436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 
30752, 753, [755,] 771, 776, 777, 808, 809, 810, 1109, 1111,

11112(a), 1205.1, 1205.2, 1205.3, 1205.5, 1301, 1302, 1303,
21310, 1317, 1317.2, 1318, 1327, 1330, 1332, 1333, 1303-A,
31513, 1517, 1518, 1521, 1523, 1525, 1531, 1547, 1602-B, 1613-
4B, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A, 1716.2-A, 1719-A,
51721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A, 1727-A,
61728-A(d), (e), (f), (g) and (h), 1729-A, 1729.1-A, 1730-A,
71731-A(a)(1) and (b), 1731.1-A, 1733-A and 2014-A and
8Articles [XII-A,] XIII-A and XIV.

9(1.1) The act of July 19, 1957 (P.L.1017, No.451), known
10as the State Adverse Interest Act.

11(2) The act of July 17, 1961 (P.L.776, No.341), known as
12the Pennsylvania Fair Educational Opportunities Act.

13(3) The act of July 19, 1965 (P.L.215, No.116), entitled
14"An act providing for the use of eye protective devices by
15persons engaged in hazardous activities or exposed to known
16dangers in schools, colleges and universities."

17(4) Section 4 of the act of January 25, 1966 (1965
18P.L.1546, No.541), entitled "An act providing scholarships
19and providing funds to secure Federal funds for qualified
20students of the Commonwealth of Pennsylvania who need
21financial assistance to attend postsecondary institutions of
22higher learning, making an appropriation, and providing for
23the administration of this act."

24(5) The act of July 12, 1972 (P.L.765, No.181) entitled
25"An act relating to drugs and alcohol and their abuse,
26providing for projects and programs and grants to educational
27agencies, other public or private agencies, institutions or
28organizations."

29(6) The act of December 15, 1986 (P.L.1595, No.175),
30known as the Antihazing Law.

1(7) 65 Pa.C.S. Ch. 7 (relating to open meetings).

2(8) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
3financial disclosure).

4* * *

5Section 23. This act shall take effect as follows:

6(1) The following provisions shall take effect
7immediately:

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

9(ii) This section.

10(2) The addition of section 1729.2-A of the act shall
11take effect upon the effective date of regulations
12implementing the performance matrix required under section
131731.1-A of the act.

14(3) The remainder of this act shall take effect in 60
15days.