Regular Session 2015-2016 Senate Bill 1308 P.N. 1942

PRINTER'S NO. 1942

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1308

Session of

2015

INTRODUCED BY WILEY, JUNE 16, 2016

REFERRED TO EDUCATION, JUNE 16, 2016

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," in charter schools, further providing

for definitions, for funding for charter schools and for

powers and duties of department.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1703-A of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949, is

amended by adding definitions to read:

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

* * *

"Applicant" shall mean a current provider of online primary

or secondary public education in this Commonwealth.

* * *

"Bidding region" shall mean one of no less than eight

geographical regions in this Commonwealth, each of which must

include at least one intermediate unit, to be determined by the

Department of Education.

* * *

"Primary regional cyber charter school" shall mean a cyber

charter school, intermediate unit that provides online education

or school district that provides online education, which has,

through competitive sealed bidding, been awarded a contract by

the Department of Education to provide services to and receive

funding for students residing in a bidding region, and which

contract provides for the reimbursement of tuition by school

districts.

* * *

Section 2. Section 1725-A(a) of the act, amended June 29,

2002 (P.L.524, No.88), is amended and the section is amended by

adding a subsection to read:

Section 1725-A. Funding for Charter Schools.--(a) Funding

for a charter school shall be provided in the following manner:

(1) [There] Except as provided for in subsection (a.1),

there shall be no tuition charge for a resident or nonresident

student attending a charter school.

(2) For non-special education students, the charter school

shall receive for each student enrolled no less than the

budgeted total expenditure per average daily membership of the

prior school year, as defined in section 2501(20), minus the

budgeted expenditures of the district of residence for nonpublic

school programs; adult education programs; community/junior

college programs; student transportation services; for special

education programs; facilities acquisition, construction and

improvement services; and other financing uses, including debt

service and fund transfers as provided in the Manual of

Accounting and Related Financial Procedures for Pennsylvania

School Systems established by the department. [This] Except as

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provided for in subsection (a.1), this amount shall be paid by

the district of residence of each student.

(3) For special education students, the charter school shall

receive for each student enrolled the same funding as for each

non-special education student as provided in clause (2), plus an

additional amount determined by dividing the district of

residence's total special education expenditure by the product

of multiplying the combined percentage of section 2509.5(k)

times the district of residence's total average daily membership

for the prior school year. [This] Except as provided for in

subsection (a.1), this amount shall be paid by the district of

residence of each student.

(4) A charter school may request the intermediate unit in

which the charter school is located to provide services to

assist the charter school to address the specific needs of

exceptional students. The intermediate unit shall assist the

charter school and bill the charter school for the services. The

intermediate unit may not charge the charter school more for any

service than it charges the constituent districts of the

intermediate unit.

(5) Payments shall be made to the charter school in twelve

(12) equal monthly payments, by the fifth day of each month,

within the operating school year. A student enrolled in a

charter school shall be included in the average daily membership

of the student's district of residence for the purpose of

providing basic education funding payments and special education

funding pursuant to Article XXV. If a school district fails to

make a payment to a charter school as prescribed in this clause,

the secretary shall deduct the estimated amount, as documented

by the charter school, from any and all State payments made to

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the district after receipt of documentation from the charter

school.

(6) Within thirty (30) days after the secretary makes the

deduction described in clause (5), a school district may notify

the secretary that the deduction made from State payments to the

district under this subsection is inaccurate. The secretary

shall provide the school district with an opportunity to be

heard concerning whether the charter school documented that its

students were enrolled in the charter school, the period of time

during which each student was enrolled, the school district of

residence of each student and whether the amounts deducted from

the school district were accurate.

(a.1) Funding for a cyber charter school shall be provided

in the following manner:

(1) A cyber charter school that is a primary regional cyber

charter school shall receive for each student enrolled the

amount specified in its contract with the department under

section 1741-A(a)(6). This amount shall be paid by the district

of residence of each student, unless the student resides in

another bidding region, in which case, the amount shall be paid

by the parents or guardians of the student.

(2) A cyber charter school that is not a primary regional

cyber school shall receive for each student an amount agreed

upon between the cyber charter school and the parents or

guardians of the student. This amount shall be paid by the

parents or guardians of the student.

* * *

Section 3. Section 1741-A of the act, added June 29, 2002

(P.L.524, No.88), is amended to read:

Section 1741-A. Powers and duties of department.

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(a) Powers and duties.--The department shall:

(1) Receive, review and act on applications for the

creation of a cyber charter school and have the power to

request further information from applicants, obtain input

from interested persons or entities and hold hearings

regarding applications.

(2) Renew the charter of cyber charter school and renew

the charter of a charter school approved under section 1717-A

or 1718-A which provides instruction through the Internet or

other electronic means. Upon renewal of a charter of a

charter school approved under section 1717-A or 1718-A, the

charter school shall qualify as a cyber charter school under

this subdivision and shall be subject to the provisions of

this subdivision.

(3) Revoke or deny renewal of a cyber charter school's

charter under the provisions of section 1729-A.

(i) Notwithstanding the provisions of section 1729-

A(i), when the department has revoked or denied renewal

of a charter, the cyber charter school shall be

dissolved. After the disposition of the liabilities and

obligations of the cyber charter school, any remaining

assets of the cyber charter school shall be given over to

the intermediate unit in which the cyber charter school's

administrative office was located for distribution to the

school districts in which the students enrolled in the

cyber charter school reside at the time of dissolution.

(ii) Notwithstanding any laws to the contrary, the

department may, after notice and hearing, take immediate

action to revoke a charter if:

(A) a material component of the student's

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education as required under this subdivision is not

being provided; or

(B) the cyber charter school has failed to

maintain the financial ability to provide services as

required under this subdivision.

(4) Execute charters after approval.

(5) Develop forms, including the notification form under

section 1748-A(b), necessary to carry out the provisions of

this subdivision.

(6) No later than one year after the effective date of

this paragraph, establish a competitive bidding procedure in

which applicants must submit bids in order to enter into a

contract with the department and become primary regional

cyber charter schools. The procedure shall provide for the

manner in which bids must be submitted, a public hearing in

each bidding region and the award of a contract in each

bidding region based on the lowest responsible bid for that

bidding region. In order for an applicant to be awarded a

contract, it must meet the requirements of sections 1719-A

and 1747-A and either submit the relevant materials to the

department or proof of charter, in those cases where the

applicant is a currently operating cyber charter school. A

contract entered into under this paragraph shall have a term

of not more than two years, shall specify the amount to be

paid by the school district of residence for each student

enrolled and shall be subject to termination if the

department revokes the charter in accordance with this

article.

(b) Hearings.--Hearings [conducted] by the department shall

be conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).

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subject to the act of [June 21, 1957 (P.L.390, No.212), referred

to] February 14, 2008 (P.L.6, No.3), known as the Right-to-Know

Law.

Section 4. This act shall take effect in 60 days.

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