S0560B0728A07732     VDL:JB  12/13/11     #90        A07732

  

  

  

  

AMENDMENTS TO SENATE BILL NO. 560

Printer's No. 728

  

1

Amend Bill, page 1, lines 1 and 2, by striking out all of

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said lines and inserting

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

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act relating to the public school system, including certain

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provisions applicable as well to private and parochial

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schools; amending, revising, consolidating and changing the

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laws relating thereto," further providing for definitions and

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for concurrent enrollment agreements; repealing provisions

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relating to charter schools; providing for charter school

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entities; establishing the State Military College Legislative

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Appointment Initiative Program; providing for educational

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improvement tax credit; and repealing provisions of the Tax

13

Reform Code of 1971 relating to educational improvement tax

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credit.

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Amend Bill, page 1, lines 5 through 17; page 2, lines 1 

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through 30; page 3, lines 1 through 27, by striking out all of

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said lines on said pages and inserting

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Section 1.  The definitions of "concurrent student" and

19

"school entity" in section 1602-B of the act of March 10, 1949

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

21

July 13, 2005 (P.L.226, No.46), are amended and the section is

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amended by adding a definition to read:

23

Section 1602-B.  Definitions.

24

The following words and phrases when used in this article

25

shall have the meanings given to them in this section unless the

26

context clearly indicates otherwise:

27

* * *

28

"Charter school entity." As defined in section 1703-C.

29

* * *

30

"Concurrent student."  A student who is enrolled in a school

31

district, a charter school entity, an area vocational-technical

32

school, a nonpublic school, a private school or a home education

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program under section 1327.1 and who takes a concurrent course

34

through a concurrent enrollment program.

35

* * *

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1

"School entity."  A school district, a charter school entity 

2

or an area vocational-technical school.

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* * *

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Section 2.  Section 1613-B of the act is amended by adding a

5

subsection to read:

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Section 1613-B.  Concurrent enrollment agreements.

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* * *

8

(c)  Charter school entities.--Charter school entities shall

9

have the power and authority to enter into a concurrent

10

enrollment agreement with an institution of higher education,

11

and appropriate credit shall be awarded to students concurrently

12

enrolled under the agreement.

13

Section 3.  Article XVII-A heading, Subdivision heading (a)

14

and sections 1701-A and 1702-A, added June 19, 1997 (P.L.225,

15

No.22), are repealed:

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[ARTICLE XVII-A.

17

CHARTER SCHOOLS.

18

(a)  Preliminary Provisions.

19

Section 1701-A.  Short Title.--This article shall be known

20

and may be cited as the "Charter School Law."

21

Section 1702-A.  Legislative Intent.--It is the intent of the

22

General Assembly, in enacting this article, to provide pupils

23

and community members to establish and maintain schools that

24

operate independently from the existing school district

25

structure as a method to accomplish all of the following:

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(1)  Improve pupil learning.

27

(2)  Increase learning opportunities for all pupils.

28

(3)  Encourage the use of different and innovative teaching

29

methods.

30

(4)  Create new professional opportunities for teachers,

31

including the opportunity to be responsible for the learning

32

program at the school site.

33

(5)  Provide parents and pupils with expanded choices in the

34

types of educational opportunities that are available within the

35

public school system.

36

(6)  Hold the schools established under this act accountable

37

for meeting measurable academic standards and provide the school

38

with a method to establish accountability systems.]

39

Section 4.  Section 1703-A of the act, amended June 29, 2002

40

(P.L.524, No.88), is repealed:

41

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

42

"Appeal board" shall mean the State Charter School Appeal

43

Board established by this article.

44

"At-risk student" shall mean a student at risk of educational

45

failure because of limited English proficiency, poverty,

46

community factors, truancy, academic difficulties or economic

47

disadvantage.

48

"Charter school" shall mean an independent public school

49

established and operated under a charter from the local board of

50

school directors and in which students are enrolled or attend. A

51

charter school must be organized as a public, nonprofit

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1

corporation. Charters may not be granted to any for-profit

2

entity.

3

"Chief executive officer" shall mean an individual appointed

4

by the board of trustees to oversee and manage the operation of

5

the charter school, but who shall not be deemed a professional

6

staff member under this article.

7

"Cyber charter school" shall mean an independent public

8

school established and operated under a charter from the

9

Department of Education and in which the school uses technology

10

in order to provide a significant portion of its curriculum and

11

to deliver a significant portion of instruction to its students

12

through the Internet or other electronic means. A cyber charter

13

school must be organized as a public, nonprofit corporation. A

14

charter may not be granted to a for-profit entity.

15

"Department" shall mean the Department of Education of the

16

Commonwealth.

17

"Local board of school directors" shall mean the board of

18

directors of a school district in which a proposed or an

19

approved charter school is located.

20

"Regional charter school" shall mean an independent public

21

school established and operated under a charter from more than

22

one local board of school directors and in which students are

23

enrolled or attend. A regional charter school must be organized

24

as a public, nonprofit corporation. Charters may not be granted

25

to any for-profit entity.

26

"School district of residence" shall mean the school district

27

in this Commonwealth in which the parents or guardians of a

28

child reside.

29

"School entity" shall mean a school district, intermediate

30

unit, joint school or area vocational-technical school.

31

"Secretary" shall mean the Secretary of Education of the

32

Commonwealth.

33

"State board" shall mean the State Board of Education of the

34

Commonwealth.]

35

Section 5.  Subdivision heading (b) of Article XVII-A of the

36

act, added June 19, 1997 (P.L.225, No.22), is repealed:

37

[(b)  Charter Schools.]

38

Section 5.1.  Section 1714-A of the act, amended July 4, 2004

39

(P.L.536, No.70), is repealed:

40

[Section 1714-A.  Powers of Charter Schools.--(a)  A charter

41

school established under this act is a body corporate and shall

42

have all powers necessary or desirable for carrying out its

43

charter, including, but not limited to, the power to:

44

(1)  Adopt a name and corporate seal; however, any name

45

selected shall include the words "charter school."

46

(2)  Sue and be sued, but only to the same extent and upon

47

the same condition that political subdivisions and local

48

agencies can be sued.

49

(3)  Acquire real property from public or private sources by

50

purchase, lease, lease with an option to purchase or gift for

51

use as a charter school facility.

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1

(4)  Receive and disburse funds for charter school purposes

2

only.

3

(5)  Make contracts and leases for the procurement of

4

services, equipment and supplies.

5

(6)  Incur temporary debts in anticipation of the receipt of

6

funds.

7

(6.1)  Incur debt for the construction of school facilities.

8

(7)  Solicit and accept any gifts or grants for charter

9

school purposes.

10

(b)  A charter school shall have such other powers as are

11

necessary to fulfill its charter and which are not inconsistent

12

with this article.

13

(c)  Any indebtedness incurred by a charter school in the

14

exercise of the powers specified in this section shall not

15

impose any liability or legal obligation upon a school entity or

16

upon the Commonwealth.]

17

Section 5.2.  Section 1715-A, added June 19, 1997 (P.L.225,

18

No.22) and July 9, 2008 (P.L.846, No.61), is repealed:

19

[Section 1715-A.  Charter School Requirements.--Charter

20

schools shall be required to comply with the following

21

provisions:

22

(1)  Except as otherwise provided in this article, a charter

23

school is exempt from statutory requirements established in this

24

act, from regulations of the State board and the standards of

25

the secretary not specifically applicable to charter schools.

26

Charter schools are not exempt from statutes applicable to

27

public schools other than this act.

28

(2)  A charter school shall be accountable to the parents,

29

the public and the Commonwealth, with the delineation of that

30

accountability reflected in the charter. Strategies for

31

meaningful parent and community involvement shall be developed

32

and implemented by each school.

33

(3)  A charter school shall not unlawfully discriminate in

34

admissions, hiring or operation.

35

(4)  A charter school shall be nonsectarian in all

36

operations.

37

(5)  A charter school shall not provide any religious

38

instruction, nor shall it display religious objects and symbols

39

on the premises of the charter school.

40

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

41

(7)  A charter school shall only be subject to the laws and

42

regulations as provided for in section 1732-A, or as otherwise

43

provided for in this article.

44

(8)  A charter school shall participate in the Pennsylvania

45

State Assessment System as provided for in 22 Pa. Code Ch. 5

46

(relating to curriculum), or subsequent regulations promulgated

47

to replace 22 Pa. Code Ch. 5, in the manner in which the school

48

district in which the charter school is located is scheduled to

49

participate.

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(9)  A charter school shall provide a minimum of one hundred

51

eighty (180) days of instruction or nine hundred (900) hours per

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1

year of instruction at the elementary level, or nine hundred

2

ninety (990) hours per year of instruction at the secondary

3

level. Nothing in this clause shall preclude the use of computer

4

and satellite linkages for delivering instruction to students.

5

(10)  Boards of trustees and contractors of charter schools

6

shall be subject to the following statutory requirements

7

governing construction projects and construction-related work:

8

(i)  The following provisions of this act:

9

(A)  Sections 751 and 751.1.

10

(B)  Sections 756 and 757 insofar as they are consistent with

11

the act of December 20, 1967 (P.L.869, No.385), known as the

12

"Public Works Contractors' Bond Law of 1967."

13

(ii)  Section 1 of the act of May 1, 1913 (P.L.155, No.104),

14

entitled "An act regulating the letting of certain contracts for

15

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

16

(iii)  The act of August 11, 1961 (P.L.987, No.442), known as

17

the "Pennsylvania Prevailing Wage Act."

18

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

19

(v)  The act of March 3, 1978 (P.L.6, No.3), known as the

20

"Steel Products Procurement Act."

21

(11)  Trustees of a charter school shall be public officials.

22

(12)  A person who serves as an administrator for a charter

23

school shall not receive compensation from another charter

24

school or from a company that provides management or other

25

services to another charter school. The term "administrator"

26

shall include the chief executive officer of a charter school

27

and all other employes of a charter school who by virtue of

28

their positions exercise management or operational oversight

29

responsibilities. A person who serves as an administrator for a

30

charter school shall be a public official under 65 Pa.C.S. Ch.

31

11 (relating to ethics standards and financial disclosure). A

32

violation of this clause shall constitute a violation of 65

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Pa.C.S. § 1103(a) (relating to restricted activities), and the

34

violator shall be subject to the penalties imposed under the

35

jurisdiction of the State Ethics Commission.]

36

Section 5.3.  Sections 1716-A, 1717-A, 1718-A and 1719-A,

37

added June 19, 1997 (P.L.225, No.22), are repealed:

38

[Section 1716-A.  Powers of Board of Trustees.--(a)  The

39

board of trustees of a charter school shall have the authority

40

to decide matters related to the operation of the school,

41

including, but not limited to, budgeting, curriculum and

42

operating procedures, subject to the school's charter. The board

43

shall have the authority to employ, discharge and contract with

44

necessary professional and nonprofessional employes subject to

45

the school's charter and the provisions of this article.

46

(b)  No member of a local board of school directors of a

47

school entity shall serve on the board of trustees of a charter

48

school that is located in the member's district.

49

(c)  The board of trustees shall comply with the act of July

50

3, 1986 (P.L.388, No.84), known as the "Sunshine Act."

51

Section 1717-A.  Establishment of Charter School.--(a)  A

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1

charter school may be established by an individual; one or more

2

teachers who will teach at the proposed charter school; parents

3

or guardians of students who will attend the charter school; any

4

nonsectarian college, university or museum located in this

5

Commonwealth; any nonsectarian corporation not-for-profit, as

6

defined in 15 Pa.C.S. (relating to corporations and

7

unincorporated associations); any corporation, association or

8

partnership; or any combination thereof. A charter school may be

9

established by creating a new school or by converting an

10

existing public school or a portion of an existing public

11

school. No charter school shall be established or funded by and

12

no charter shall be granted to any sectarian school, institution

13

or other entity. No funds allocated or disbursed under this

14

article shall be used to directly support instruction pursuant

15

to section 1327.1.

16

(b)  (1)  The conversion of an existing public school or

17

portion of an existing public school to a charter school may be

18

initiated by any individual or entity authorized to establish a

19

charter school under subsection (a).

20

(2)  In order to convert an existing public school to a

21

charter school, the applicants must show that:

22

(i)  More than fifty per centum of the teaching staff in the

23

public school have signed a petition in support of the public

24

school becoming a charter school; and

25

(ii)  More than fifty per centum of the parents or guardians

26

of pupils attending that public school have signed a petition in

27

support of the school becoming a charter school.

28

(3)  In no event shall the board of school directors serve as

29

the board of trustees of an existing school which is converted

30

to a charter school pursuant to this subsection.

31

(c)  An application to establish a charter school shall be

32

submitted to the local board of school directors of the district

33

where the charter school will be located by November 15 of the

34

school year preceding the school year in which the charter

35

school will be established except that for a charter school

36

beginning in the 1997-1998 school year, an application must be

37

received by July 15, 1997. In the 1997-1998 school year only,

38

applications shall be limited to recipients of fiscal year

39

1996-1997 Department of Education charter school planning

40

grants.

41

(d)  Within forty-five (45) days of receipt of an

42

application, the local board of school directors in which the

43

proposed charter school is to be located shall hold at least one

44

public hearing on the provisions of the charter application,

45

under the act of July 3, 1986 (P.L.388, No.84), known as the

46

"Sunshine Act." At least forty-five (45) days must transpire

47

between the first public hearing and the final decision of the

48

board on the charter application except that for a charter

49

school beginning in the 1997-1998 school year, only thirty (30)

50

days must transpire between the first public hearing and the

51

final decision of the board.

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(e)  (1)  Not later than seventy-five (75) days after the

2

first public hearing on the application, the local board of

3

school directors shall grant or deny the application. For a

4

charter school beginning in the 1997-1998 school year, the local

5

board of school directors shall grant or deny the application no

6

later than sixty (60) days after the first public hearing.

7

(2)  A charter school application submitted under this

8

article shall be evaluated by the local board of school

9

directors based on criteria, including, but not limited to, the

10

following:

11

(i)  The demonstrated, sustainable support for the charter

12

school plan by teachers, parents, other community members and

13

students, including comments received at the public hearing held

14

under subsection (d).

15

(ii)  The capability of the charter school applicant, in

16

terms of support and planning, to provide comprehensive learning

17

experiences to students pursuant to the adopted charter.

18

(iii)  The extent to which the application considers the

19

information requested in section 1719-A and conforms to the

20

legislative intent outlined in section 1702-A.

21

(iv)  The extent to which the charter school may serve as a

22

model for other public schools.

23

(3)  The local board of school directors, in the case of an

24

existing school being converted to a charter school, shall

25

establish the alternative arrangements for current students who

26

choose not to attend the charter school.

27

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

28

local board of school directors of a school district upon

29

affirmative vote by a majority of all the directors. Formal

30

action approving or denying the application shall be taken by

31

the local board of school directors at a public meeting, with

32

notice or consideration of the application given by the board,

33

under the "Sunshine Act."

34

(5)  Written notice of the board's action shall be sent to

35

the applicant, the department and the appeal board. If the

36

application is denied, the reasons for the denial, including a

37

description of deficiencies in the application, shall be clearly

38

stated in the notice sent by the local board of school directors

39

to the charter school applicant.

40

(f)  At the option of the charter school applicant, a denied

41

application may be revised and resubmitted to the local board of

42

school directors. Following the appointment and confirmation of

43

the Charter School Appeal Board under section 1721-A, the

44

decision of the local board of school directors may be appealed

45

to the appeal board. When an application is revised and

46

resubmitted to the local board of school directors, the board

47

may schedule additional public hearings on the revised

48

application. The board shall consider the revised and

49

resubmitted application at the first board meeting occurring at

50

least forty-five (45) days after receipt of the revised

51

application by the board. For a revised application resubmitted

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1

for the 1997-1998 school year, the board shall consider the

2

application at the first board meeting occurring at least thirty

3

(30) days after its receipt. The board shall provide notice of

4

consideration of the revised application under the "Sunshine

5

Act." No appeal from a decision of a local school board may be

6

taken until July 1, 1999.

7

(g)  Notwithstanding the provisions of subsection (e)(5),

8

failure by the local board of directors to hold a public hearing

9

and to grant or deny the application for a charter school within

10

the time periods specified in subsections (d), (e) and (f) shall

11

permit the applicant for a charter to file its application as an

12

appeal to the appeal board. In such case, the appeal board shall

13

review the application and make a decision to grant or deny a

14

charter based on the criteria established in subsection (e)(2).

15

(h)  In the case of a review by the appeal board of an

16

application that is revoked or is not renewed, the appeal board

17

shall make its decision based on the criteria established in

18

subsection (e)(2). A decision by the appeal board under this

19

subsection or subsection (g) to grant, to renew or not to revoke

20

a charter shall serve as a requirement for the local board of

21

directors of a school district or school districts, as

22

appropriate, to sign the written charter of the charter school

23

as provided for in section 1720-A. Should the local board of

24

directors fail to grant the application and sign the charter

25

within ten (10) days of notice of reversal of the decision of

26

the local board of directors, the charter shall be deemed to be

27

approved and shall be signed by the chairman of the appeal

28

board.

29

(i)  (1)  The appeal board shall have the exclusive review of

30

an appeal by a charter school applicant, or by the board of

31

trustees of an existing charter school, of a decision made by a

32

local board of directors not to grant a charter as provided in

33

this section.

34

(2)  In order for a charter school applicant to be eligible

35

to appeal the denial of a charter by the local board of

36

directors, the applicant must obtain the signatures of at least

37

two per centum of the residents of the school district or of one

38

thousand (1,000) residents, whichever is less, who are over

39

eighteen (18) years of age. For a regional charter school, the

40

applicant must obtain the signatures of at least two per centum

41

of the residents of each school district granting the charter or

42

of one thousand (1,000) residents from each of the school

43

districts granting the charter, whichever is less, who are over

44

eighteen (18) years of age. The signatures shall be obtained

45

within sixty (60) days of the denial of the application by the

46

local board of directors in accordance with clause (3).

47

(3)  Each person signing a petition to appeal denial of a

48

charter under clause (2) shall declare that he or she is a

49

resident of the school district which denied the charter

50

application and shall include his or her printed name;

51

signature; address, including city, borough or township, with

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1

street and number, if any; and the date of signing. All pages

2

shall be bound together. Additional pages of the petition shall

3

be numbered consecutively. There shall be appended to the

4

petition a statement that the local board of directors rejected

5

the petition for a charter school, the names of all applicants

6

for the charter, the date of denial by the board and the

7

proposed location of the charter school. No resident may sign

8

more than one petition relating to the charter school

9

application within the sixty (60) days following denial of the

10

application. The department shall develop a form to be used to

11

petition for an appeal.

12

(4)  Each petition shall have appended thereto the affidavit

13

of some person, not necessarily a signer, setting forth all of

14

the following:

15

(i)  That the affiant is a resident of the school district

16

referred to in the petition.

17

(ii)  The affiant's residence, giving city, borough or

18

township, with street and number, if any.

19

(iii)  That the signers signed with full knowledge of the

20

purpose of the petition.

21

(iv)  That the signers' respective residences are correctly

22

stated in the petition.

23

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

24

(vi)  That each signer signed on the date set forth opposite

25

the signer's name.

26

(vii)  That to the best of the affiant's knowledge and

27

belief, the signers are residents of the school district.

28

(5)  If the required number of signatures are obtained within

29

sixty (60) days of the denial of the application, the applicant

30

may present the petition to the court of common pleas of the

31

county in which the charter school would be situated. The court

32

shall hold a hearing only on the sufficiency of the petition.

33

The applicant and local board of school directors shall be given

34

seven (7) days' notice of the hearing. The court shall issue a

35

decree establishing the sufficiency or insufficiency of the

36

petition. If the petition is sufficient, the decree shall be

37

transmitted to the State Charter School Appeal Board for review

38

in accordance with this section. Notification of the decree

39

shall be given to the applicant and the local board of

40

directors.

41

(6)  In any appeal, the decision made by the local board of

42

directors shall be reviewed by the appeal board on the record as

43

certified by the local board of directors. The appeal board

44

shall give due consideration to the findings of the local board

45

of directors and specifically articulate its reasons for

46

agreeing or disagreeing with those findings in its written

47

decision. The appeal board shall have the discretion to allow

48

the local board of directors and the charter school applicant to

49

supplement the record if the supplemental information was

50

previously unavailable.

51

(7)  Not later than thirty (30) days after the date of notice

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1

of the acceptance of the appeal, the appeal board shall meet to

2

officially review the certified record.

3

(8)  Not later than sixty (60) days following the review

4

conducted pursuant to clause (6), the appeal board shall issue a

5

written decision affirming or denying the appeal. If the appeal

6

board has affirmed the decision of the local board of directors,

7

notice shall be provided to both parties.

8

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

9

of the local board of directors shall serve as a requirement for

10

the local board of directors of a school district or school

11

districts, as appropriate, to grant the application and sign the

12

written charter of the charter school as provided for in section

13

1720-A. Should the local board of directors fail to grant the

14

application and sign the charter within ten (10) days of notice

15

of the reversal of the decision of the local board of directors,

16

the charter shall be deemed to be approved and shall be signed

17

by the chairman of the appeal board.

18

(10)  All decisions of the appeal board shall be subject to

19

appellate review by the Commonwealth Court.

20

Section 1718-A.  Regional Charter School.--(a)  A regional

21

charter school may be established by an individual, one or more

22

teachers who will teach at the proposed charter school; parents

23

or guardians of students who will attend the charter school; any

24

nonsectarian college, university or museum located in this

25

Commonwealth; any nonsectarian corporation not-for-profit, as

26

defined in 15 Pa.C.S. (relating to corporations and

27

unincorporated associations); any corporation, association or

28

partnership; or any combination thereof. A regional charter

29

school may be established by creating a new school or by

30

converting an existing public school or a portion of an existing

31

public school. Conversion of an existing public school to a

32

regional charter school shall be accomplished in accordance with

33

section 1714-A(b). No regional charter school shall be

34

established or funded by and no charter shall be granted to any

35

sectarian school, institution or other entity.

36

(b)  The boards of school directors of one or more school

37

districts may act jointly to receive and consider an application

38

for a regional charter school, except that any action to approve

39

an application for a charter or to sign a written charter of an

40

applicant shall require an affirmative vote of a majority of all

41

the directors of each of the school districts involved. The

42

applicant shall apply for a charter to the board of directors of

43

any school district in which the charter school will be located.

44

(c)  The provisions of this article as they pertain to

45

charter schools and the powers and duties of the local board of

46

school directors of a school district and the appeal board shall

47

apply to regional charter schools, except as provided in

48

subsections (a) and (b) or as otherwise clearly stated in this

49

article.

50

Section 1719-A.  Contents of Application.--An application to

51

establish a charter school shall include all of the following

- 10 -

 


1

information:

2

(1)  The identification of the charter applicant.

3

(2)  The name of the proposed charter school.

4

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

5

(4)  The proposed governance structure of the charter school,

6

including a description and method for the appointment or

7

election of members of the board of trustees.

8

(5)  The mission and education goals of the charter school,

9

the curriculum to be offered and the methods of assessing

10

whether students are meeting educational goals.

11

(6)  The admission policy and criteria for evaluating the

12

admission of students which shall comply with the requirements

13

of section 1723-A.

14

(7)  Procedures which will be used regarding the suspension

15

or expulsion of pupils. Said procedures shall comply with

16

section 1318.

17

(8)  Information on the manner in which community groups will

18

be involved in the charter school planning process.

19

(9)  The financial plan for the charter school and the

20

provisions which will be made for auditing the school under

21

section 437.

22

(10)  Procedures which shall be established to review

23

complaints of parents regarding the operation of the charter

24

school.

25

(11)  A description of and address of the physical facility

26

in which the charter school will be located and the ownership

27

thereof and any lease arrangements.

28

(12)  Information on the proposed school calendar for the

29

charter school, including the length of the school day and

30

school year consistent with the provisions of section 1502.

31

(13)  The proposed faculty and a professional development

32

plan for the faculty of a charter school.

33

(14)  Whether any agreements have been entered into or plans

34

developed with the local school district regarding participation

35

of the charter school students in extracurricular activities

36

within the school district. Notwithstanding any provision to the

37

contrary, no school district of residence shall prohibit a

38

student of a charter school from participating in any

39

extracurricular activity of that school district of residence:

40

Provided, That the student is able to fulfill all of the

41

requirements of participation in such activity and the charter

42

school does not provide the same extracurricular activity.

43

(15)  A report of criminal history record, pursuant to

44

section 111, for all individuals who shall have direct contact

45

with students.

46

(16)  An official clearance statement regarding child injury

47

or abuse from the Department of Public Welfare as required by 23

48

Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for

49

employment in schools) for all individuals who shall have direct

50

contact with students.

51

(17)  How the charter school will provide adequate liability

- 11 -

 


1

and other appropriate insurance for the charter school, its

2

employes and the board of trustees of the charter school.]

3

Section 5.4.  Section 1720-A of the act, amended July 9, 2008

4

(P.L.846, No.61), is repealed:

5

[Section 1720-A.  Term and Form of Charter.--(a)  Upon

6

approval of a charter application under section 1717-A, a

7

written charter shall be developed which shall contain the

8

provisions of the charter application and which shall be signed

9

by the local board of school directors of a school district, by

10

the local boards of school directors of a school district in the

11

case of a regional charter school or by the chairman of the

12

appeal board pursuant to section 1717-A(i)(5) and the board of

13

trustees of the charter school. This written charter, when duly

14

signed by the local board of school directors of a school

15

district, or by the local boards of school directors of a school

16

district in the case of a regional charter school, and the

17

charter school's board of trustees, shall act as legal

18

authorization for the establishment of a charter school. This

19

written charter shall be legally binding on both the local board

20

of school directors of a school district and the charter

21

school's board of trustees. Except as otherwise provided in

22

subsection (b), the charter shall be for a period of no less

23

than three (3) nor more than five (5) years and may be renewed

24

for five (5) year periods upon reauthorization by the local

25

board of school directors of a school district or the appeal

26

board. A charter will be granted only for a school organized as

27

a public, nonprofit corporation.

28

(b)  (1)  Notwithstanding subsection (a), a governing board

29

of a school district of the first class may renew a charter for

30

a period of one (1) year if the board of school directors

31

determines that there is insufficient data concerning the

32

charter school's academic performance to adequately assess that

33

performance and determines that an additional year of

34

performance data would yield sufficient data to assist the

35

governing board in its decision whether to renew the charter for

36

a period of five (5) years.

37

(2)  A one-year renewal pursuant to paragraph (1) shall not

38

be considered an adjudication and may not be appealed to the

39

State Charter School Appeal Board.

40

(3)  A governing board of a school district of the first

41

class does not have the authority to renew a charter for

42

successive one (1) year periods.]

43

Section 5.5.  Section 1721-A of the act, added June 19, 1997

44

(P.L.225, No.22), is repealed:

45

[Section 1721-A.  State Charter School Appeal Board.--(a)

46

The State Charter School Appeal Board shall consist of the

47

Secretary of Education and six (6) members who shall be

48

appointed by the Governor by and with the consent of a majority

49

of all the members of the Senate. Appointments by the Governor

50

shall not occur prior to January 1, 1999. The Governor shall

51

select the chairman of the appeal board to serve at the pleasure

- 12 -

 


1

of the Governor. The members shall include:

2

(1)  A parent of a school-aged child.

3

(2)  A school board member.

4

(3)  A certified teacher actively employed in a public

5

school.

6

(4)  A faculty member or administrative employe of an

7

institution of higher education.

8

(5)  A member of the business community.

9

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

10

The term of office of members of the appeal board, other than

11

the secretary, shall be for a period of four (4) years or until

12

a successor is appointed and qualified, except that, of the

13

initial appointees, the Governor shall designate two (2) members

14

to serve terms of two (2) years, two (2) members to serve terms

15

of three (3) years and two (2) members to serve terms of four

16

(4) years. Any appointment to fill any vacancy shall be for the

17

period of the unexpired term or until a successor is appointed

18

and qualified.

19

(b)  The appeal board shall meet as needed to fulfill the

20

purposes provided in this subsection. A majority of the members

21

of the appeal board shall constitute a quorum, and a majority of

22

the members of the appeal board shall have authority to act upon

23

any matter properly before the appeal board. The appeal board is

24

authorized to establish rules for its operation.

25

(c)  The members shall receive no payment for their services.

26

Members who are not employes of State government shall be

27

reimbursed for expenses incurred in the course of their official

28

duties from funds appropriated for the general government

29

operations of the department.

30

(d)  The department shall provide assistance and staffing for

31

the appeal board. The Governor, through the Governor's General

32

Counsel, shall provide such legal advice and assistance as the

33

appeal board may require.

34

(e)  Meetings of the appeal board shall be conducted under

35

the act of July 3, 1986 (P.L.388, No.84), known as the "Sunshine

36

Act." Documents of the appeal board shall be subject to the act

37

of June 21, 1957 (P.L.390, No.212), referred to as the Right-to-

38

Know Law.]

39

Section 5.6.  Section 1722-A of the act, amended November 17,

40

2010 (P.L.996, No.104), is repealed:

41

[Section 1722-A.  Facilities.--(a)  A charter school may be

42

located in an existing public school building, in a part of an

43

existing public school building, in space provided on a

44

privately owned site, in a public building or in any other

45

suitable location.

46

(b)  The charter school facility shall be exempt from public

47

school facility regulations except those pertaining to the

48

health or safety of the pupils.

49

(d)  Notwithstanding any other provision of this act, a

50

school district of the first class may, in its discretion,

51

permit a charter school to operate its school at more than one

- 13 -

 


1

location.

2

(e)  (1)  Notwithstanding the provisions of section 204 of

3

the act of May 22, 1933 (P.L.853, No.155), known as The General

4

County Assessment Law, all school property, real and personal,

5

owned by any charter school, cyber charter school or an

6

associated nonprofit foundation, or owned by a nonprofit

7

corporation or nonprofit foundation and leased to a charter

8

school, cyber charter school or associated nonprofit foundation

9

at or below fair market value, that is occupied and used by any

10

charter school or cyber charter school for public school,

11

recreation or any other purposes provided for by this act, shall

12

be made exempt from every kind of State, county, city, borough,

13

township or other real estate tax, including payments in lieu of

14

taxes established through agreement with the Commonwealth or any

15

local taxing authority, as well as from all costs or expenses

16

for paving, curbing, sidewalks, sewers or other municipal

17

improvements, Provided, That any charter school or cyber charter

18

school or owner of property leased to a charter school or cyber

19

charter school may make a municipal improvement in a street on

20

which its school property abuts or may contribute a sum toward

21

the cost of the improvement.

22

(2)  Any agreement entered into by a charter school, cyber

23

charter school or associated nonprofit foundation with the

24

Commonwealth or a local taxing authority for payments in lieu of

25

taxes prior to December 31, 2009, shall be null and void.

26

(3)  This subsection shall apply retroactively to all charter

27

schools, cyber charter schools and associated nonprofit

28

foundations that filed an appeal from an assessment, as provided

29

in Article V of The General County Assessment Law, prior to the

30

effective date of this subsection.

31

(4)  For purposes of this subsection, "local taxing

32

authority" shall include, but not be limited to, a county, city,

33

borough, incorporated town, township or school district.]

34

Section 5.7.  Section 1723-A of the act, amended or added

35

June 26, 1999 (P.L.394, No.36) and July 9, 2008 (P.L.846,

36

No.61), is repealed:

37

[Section 1723-A.  Enrollment.--(a)  All resident children in

38

this Commonwealth qualify for admission to a charter school

39

within the provisions of subsection (b). If more students apply

40

to the charter school than the number of attendance slots

41

available in the school, then students must be selected on a

42

random basis from a pool of qualified applicants meeting the

43

established eligibility criteria and submitting an application

44

by the deadline established by the charter school, except that

45

the charter school may give preference in enrollment to a child

46

of a parent who has actively participated in the development of

47

the charter school and to siblings of students presently

48

enrolled in the charter school. First preference shall be given

49

to students who reside in the district or districts.

50

(b)  (1)  A charter school shall not discriminate in its

51

admission policies or practices on the basis of intellectual

- 14 -

 


1

ability, except as provided in paragraph (2), or athletic

2

ability, measures of achievement or aptitude, status as a person

3

with a disability, proficiency in the English language or any

4

other basis that would be illegal if used by a school district.

5

(2)  A charter school may limit admission to a particular

6

grade level, a targeted population group composed of at-risk

7

students, or areas of concentration of the school such as

8

mathematics, science or the arts. A charter school may establish

9

reasonable criteria to evaluate prospective students which shall

10

be outlined in the school's charter.

11

(c)  If available classroom space permits, a charter school

12

may enroll nonresident students on a space-available basis, and

13

the student's district of residence shall permit the student to

14

attend the charter school. The terms and conditions of the

15

enrollment shall be outlined in the school's charter.

16

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

17

charter school shall not be subject to a cap or otherwise

18

limited by any past or future action of a board of school

19

directors, a board of control established under Article XVII-B,

20

a special board of control established under section 692 or any

21

other governing authority, unless agreed to by the charter

22

school or cyber charter school as part of a written charter

23

pursuant to section 1720-A.

24

(2)  The provisions of this subsection shall apply to a

25

charter school or cyber charter school regardless of whether the

26

charter was approved prior to or is approved subsequent to the

27

effective date of this subsection.]

28

Section 5.8.  Section 1724-A of the act, added June 29, 1997

29

(P.L.225, No.22), is repealed:

30

[Section 1724-A.  School Staff.--(a)  The board of trustees

31

shall determine the level of compensation and all terms and

32

conditions of employment of the staff except as may otherwise be

33

provided in this article. At least seventy-five per centum of

34

the professional staff members of a charter school shall hold

35

appropriate State certification. Employes of a charter school

36

may organize under the act of July 23, 1970 (P.L.563, No.195),

37

known as the "Public Employe Relations Act." The board of

38

trustees of a charter school shall be considered an employer for

39

the purposes of Article XI-A. Upon formation of one or more

40

collective bargaining units at the school, the board of trustees

41

shall bargain with the employes based on the provisions of this

42

article, Article XI-A and the "Public Employe Relations Act."

43

Collective bargaining units at a charter school shall be

44

separate from any collective bargaining unit of the school

45

district in which the charter school is located and shall be

46

separate from any other collective bargaining unit. A charter

47

school shall be considered a school entity as provided for in

48

section 1161-A for the purpose of the secretary seeking an

49

injunction requiring the charter school to meet the minimum

50

requirements for instruction as provided for in this article.

51

(b)  Each charter application shall list the general

- 15 -

 


1

qualifications needed to staff any noncertified positions.

2

Professional employes who do not hold appropriate Pennsylvania

3

certification must present evidence that they:

4

(i)  Meet the qualifications in sections 1109 and 1209.

5

(ii)  Have demonstrated satisfactorily a combination of

6

experience, achievement and qualifications as defined in the

7

charter school application in basic skills, general knowledge,

8

professional knowledge and practice and subject matter knowledge

9

in the subject area where an individual will teach.

10

(c)  All employes of a charter school shall be enrolled in

11

the Public School Employee's Retirement System in the same

12

manner as set forth in 24 Pa.C.S. § 8301(a) (relating to

13

mandatory and optional membership) unless at the time of the

14

application for the charter school the sponsoring district or

15

the board of trustees of the charter school has a retirement

16

program which covers the employes or the employe is currently

17

enrolled in another retirement program. The Commonwealth shall

18

make contributions on behalf of charter school employes, and the

19

charter school shall be considered a school district and shall

20

make payments by employers and payments on account of Social

21

Security as established under 24 Pa.C.S. Pt. IV (relating to

22

retirement for school employees). For purposes of payments by

23

employers, a charter school shall be considered a school

24

district under 24 Pa.C.S. § 8329(a)(1) (relating to payments on

25

account of social security deductions from appropriations). The

26

market value/income aid ratio used in calculating payments as

27

prescribed in this subsection shall be the market value/income

28

aid ratio for the school district in which the charter school is

29

located or, in the case of a regional charter school, shall be a

30

composite market value/income aid ratio for the participating

31

school districts as determined by the department. Except as

32

otherwise provided, employes of a charter school shall make

33

regular member contributions as required for active members

34

under 24 Pa.C.S. Pt. IV. If the employes of the charter school

35

participate in another retirement plan, then those employes

36

shall have no concurrent claim on the benefits provided to

37

public school employes under 24 Pa.C.S. Pt. IV. For purposes of

38

this subsection, a charter school shall be deemed to be a

39

"public school" as defined in 24 Pa.C.S. § 8102 (relating to

40

definitions).

41

(d)  Every employe of a charter school shall be provided the

42

same health care benefits as the employe would be provided if he

43

or she were an employe of the local district. The local board of

44

school directors may require the charter school to provide the

45

same terms and conditions with regard to health insurance as the

46

collective bargaining agreement of the school district to

47

include employe contributions to the district's health benefits

48

plan. The charter school shall make any required employer's

49

contribution to the district's health plan to an insurer, a

50

local board of school directors or a contractual representative

51

of school employes, whichever is appropriate to provide the

- 16 -

 


1

required coverage.

2

(e)  Any public school employe of a school entity may request

3

a leave of absence for up to five (5) years in order to work in

4

a charter school located in the district of employment or in a

5

regional charter school in which the employing school district

6

is a participant. Approval for a leave shall not be unreasonably

7

withheld.

8

(f)  Temporary professional employes on leave from a school

9

district may accrue tenure in the non-charter public school

10

system at the discretion of the local board of school directors,

11

the same as they would under Article XI if they had continued to

12

be employed by that district. Professional employes on leave

13

from a school district shall retain their tenure rights, as

14

defined in Article XI, in the school entity from which they

15

came. No temporary professional employe or professional employe

16

shall have tenure rights as against a charter school. Both

17

temporary professional employes and professional employes shall

18

continue to accrue seniority in the school entity from which

19

they came if they return to that school entity when the leave

20

ends.

21

(g)  Professional employes who hold a first level teaching or

22

administrative certificate may, at their option, have the time

23

completed in satisfactory service in a charter school applied to

24

the length of service requirements for the next level of

25

certification.

26

(h)  (1)  Any temporary professional employe or professional

27

employe who leaves employment at a charter school shall have the

28

right to return to a comparable position for which the person is

29

properly certified in the school entity which granted the leave

30

of absence. In the case where a teacher has been dismissed by

31

the charter school, the school entity which granted the leave of

32

absence is to be provided by the charter school with the reasons

33

for such dismissal at the time it occurs, a list of any

34

witnesses who were relied on by the charter school in moving for

35

dismissal, a description of and access to any physical evidence

36

used by the charter school in moving for dismissal and a copy of

37

any record developed at any dismissal proceeding conducted by

38

the charter school. The record of any such hearing may be

39

admissible in a hearing before the school entity which granted

40

the leave of absence. Nothing in this section shall affect the

41

authority of the board of school directors to initiate

42

proceedings under Article XI if the board determines that

43

occurrences at the charter school leading to dismissal of a

44

teacher constitute adequate and independent grounds for

45

discipline under section 1122.

46

(2)  No temporary employe or professional employe who is

47

leaving employment at a charter school shall be returned to a

48

position in the public school district which granted his leave

49

of absence until such public school district is in receipt of a

50

current criminal history record under section 111 and the

51

official clearance statement regarding child injury or abuse

- 17 -

 


1

from the Department of Public Welfare as required by 23 Pa.C.S.

2

Ch. 63 Subch. C.2 (relating to background checks for employment

3

in schools).

4

(i)  All individuals who shall have direct contact with

5

students shall be required to submit a report of criminal

6

history record information as provided for in section 111 prior

7

to accepting a position with the charter school. This subsection

8

shall also apply to any individual who volunteers to work on a

9

full-time or part-time basis at the charter school.

10

(j)  All applicants for a position as a school employe shall

11

be required to submit the official clearance statement regarding

12

child injury or abuse from the Department of Public Welfare as

13

required by 23 Pa.C.S. Ch. 63 Subch. C.2. This section shall

14

also apply to any individual who volunteers to work on a full-

15

time or part-time basis at a charter school.]

16

Section 5.9.  Section 1725-A of the act, amended or added

17

June 19, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35)

18

and June 29, 2002 (P.L.524, No.88), is repealed:

19

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

20

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

21

(1)  There shall be no tuition charge for a resident or

22

nonresident student attending a charter school.

23

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

24

shall receive for each student enrolled no less than the

25

budgeted total expenditure per average daily membership of the

26

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

27

budgeted expenditures of the district of residence for nonpublic

28

school programs; adult education programs; community/junior

29

college programs; student transportation services; for special

30

education programs; facilities acquisition, construction and

31

improvement services; and other financing uses, including debt

32

service and fund transfers as provided in the Manual of

33

Accounting and Related Financial Procedures for Pennsylvania

34

School Systems established by the department. This amount shall

35

be paid by the district of residence of each student.

36

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

37

receive for each student enrolled the same funding as for each

38

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

39

additional amount determined by dividing the district of

40

residence's total special education expenditure by the product

41

of multiplying the combined percentage of section 2509.5(k)

42

times the district of residence's total average daily membership

43

for the prior school year. This amount shall be paid by the

44

district of residence of each student.

45

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

46

which the charter school is located to provide services to

47

assist the charter school to address the specific needs of

48

exceptional students. The intermediate unit shall assist the

49

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

50

intermediate unit may not charge the charter school more for any

51

service than it charges the constituent districts of the

- 18 -

 


1

intermediate unit.

2

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

3

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

4

within the operating school year. A student enrolled in a

5

charter school shall be included in the average daily membership

6

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

7

providing basic education funding payments and special education

8

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

9

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

10

the secretary shall deduct the estimated amount, as documented

11

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

12

the district after receipt of documentation from the charter

13

school.

14

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

15

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

16

the secretary that the deduction made from State payments to the

17

district under this subsection is inaccurate. The secretary

18

shall provide the school district with an opportunity to be

19

heard concerning whether the charter school documented that its

20

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

21

during which each student was enrolled, the school district of

22

residence of each student and whether the amounts deducted from

23

the school district were accurate.

24

(b)  The Commonwealth shall provide temporary financial

25

assistance to a school district due to the enrollment of

26

students in a charter school who attended a nonpublic school in

27

the prior school year in order to offset the additional costs

28

directly related to the enrollment of those students in a public

29

charter school. The Commonwealth shall pay the school district

30

of residence of a student enrolled in a nonpublic school in the

31

prior school year who is attending a charter school an amount

32

equal to the school district of residence's basic education

33

subsidy for the current school year divided by the district's

34

average daily membership for the prior school year. This payment

35

shall occur only for the first year of the attendance of the

36

student in a charter school, starting with school year

37

1997-1998. Total payments of temporary financial assistance to

38

school districts on behalf of a student enrolling in a charter

39

school who attended a nonpublic school in the prior school year

40

shall be limited to funds appropriated for this program in a

41

fiscal year. If the total of the amount needed for all students

42

enrolled in a nonpublic school in the prior school year who

43

enroll in a charter school exceeds the appropriation for the

44

temporary financial assistance program, the amount paid to a

45

school district for each qualifying student shall be pro rata

46

reduced. Receipt of funds under this subsection shall not

47

preclude a school district from applying for a grant under

48

subsection (c).

49

(c)  The Commonwealth shall create a grant program to provide

50

temporary transitional funding to a school district due to the

51

budgetary impact relating to any student's first-year attendance

- 19 -

 


1

at a charter school. The department shall develop criteria which

2

shall include, but not be limited to, the overall fiscal impact

3

on the budget of the school district resulting from students of

4

a school district attending a charter school. The criteria shall

5

be published in the Pennsylvania Bulletin. This subsection shall

6

not apply to a public school converted to a charter school under

7

section 1717-A(b). Grants shall be limited to funds appropriated

8

for this purpose.

9

(d)  It shall be lawful for any charter school to receive,

10

hold, manage and use, absolutely or in trust, any devise,

11

bequest, grant, endowment, gift or donation of any property,

12

real or personal and/or mixed, which shall be made to the

13

charter school for any of the purposes of this article.

14

(e)  It shall be unlawful for any trustee of a charter school

15

or any board of trustees of a charter school or any other person

16

affiliated in any way with a charter school to demand or

17

request, directly or indirectly, any gift, donation or

18

contribution of any kind from any parent, teacher, employe or

19

any other person affiliated with the charter school as a

20

condition for employment or enrollment and/or continued

21

attendance of any pupil. Any donation, gift or contribution

22

received by a charter school shall be given freely and

23

voluntarily.]

24

Section 5.10.  Section 1726-A of the act, amended July 11,

25

2006 (P.L.1092, No.114) and July 9, 2008 (P.L.846, No.61), is

26

repealed:

27

[Section 1726-A.  Transportation.--(a)  Students who attend a

28

charter school located in their school district of residence, a

29

regional charter school of which the school district is a part

30

or a charter school located outside district boundaries at a

31

distance not exceeding ten (10) miles by the nearest public

32

highway shall be provided free transportation to the charter

33

school by their school district of residence on such dates and

34

periods that the charter school is in regular session whether or

35

not transportation is provided on such dates and periods to

36

students attending schools of the district. Transportation is

37

not required for elementary students, including kindergarten

38

students, residing within one and one-half (1.5) miles or for

39

secondary students residing within two (2) miles of the nearest

40

public highway from the charter school in which the students are

41

enrolled unless the road or traffic conditions are such that

42

walking constitutes a hazard to the safety of the students when

43

so certified by the Department of Transportation, except that if

44

the school district provides transportation to the public

45

schools of the school district for elementary students,

46

including kindergarten students, residing within one and one-

47

half (1.5) miles or for secondary students residing within two

48

(2) miles of the nearest public highway under nonhazardous

49

conditions, transportation shall also be provided to charter

50

schools under the same conditions. Districts providing

51

transportation to a charter school outside the district and, for

- 20 -

 


1

the 2007-2008 school year and each school year thereafter,

2

districts providing transportation to a charter school within

3

the district shall be eligible for payments under section 2509.3

4

for each public school student transported.

5

(a.1)  In addition to any other requirements in this section,

6

school districts of the first class shall provide transportation

7

to students who attend a charter school if they are the same age

8

or are enrolled in the same grade, grades or their grade

9

equivalents as any of the students of the school district for

10

whom transportation is provided under any program or policy to

11

the schools of the school district.

12

(b)  In the event that the Secretary of Education determines

13

that a school district is not providing the required

14

transportation to students to the charter school, the Department

15

of Education shall pay directly to the charter school funds for

16

costs incurred in the transportation of its students. Payments

17

to a charter school shall be determined in the following manner:

18

for each eligible student transported, the charter school shall

19

receive a payment equal to the total expenditures for

20

transportation of the school district divided by the total

21

number of school students transported by the school district

22

under any program or policy.

23

(c)  The department shall deduct the amount paid to the

24

charter school under subsection (b) from any and all payments

25

made to the district.

26

(d)  A school district of the first class shall submit a copy

27

of its current transportation policy to the department no later

28

than August 1 of each year.]

29

Section 5.11.  Sections 1727-A and 1728-A of the act, added

30

June 19, 1997 (P.L.225, No.22), are repealed:

31

[Section 1727-A.  Tort Liability.--For purposes of tort

32

liability, employes of the charter school shall be considered

33

public employes and the board of trustees shall be considered

34

the public employer in the same manner as political subdivisions

35

and local agencies. The board of trustees of a charter school

36

and the charter school shall be solely liable for any and all

37

damages of any kind resulting from any legal challenge involving

38

the operation of a charter school. Notwithstanding this

39

requirement, the local board of directors of a school entity

40

shall not be held liable for any activity or operation related

41

to the program of the charter school.

42

Section 1728-A.  Annual Reports and Assessments.--(a)  The

43

local board of school directors shall annually assess whether

44

each charter school is meeting the goals of its charter and

45

shall conduct a comprehensive review prior to granting a five

46

(5) year renewal of the charter. The local board of school

47

directors shall have ongoing access to the records and

48

facilities of the charter school to ensure that the charter

49

school is in compliance with its charter and this act and that

50

requirements for testing, civil rights and student health and

51

safety are being met.

- 21 -

 


1

(b)  In order to facilitate the local board's review and

2

secretary's report, each charter school shall submit an annual

3

report no later than August 1 of each year to the local board of

4

school directors and the secretary in the form prescribed by the

5

secretary.

6

(c)  Five (5) years following the effective date of this

7

article, the secretary shall contract with an independent

8

professional consultant with expertise in public and private

9

education. The consultant shall receive input from members of

10

the educational community and the public on the charter school

11

program. The consultant shall submit a report to the secretary,

12

the Governor and the General Assembly and an evaluation of the

13

charter school program, which shall include a recommendation on

14

the advisability of the continuation, modification, expansion or

15

termination of the program and any recommendations for changes

16

in the structure of the program.]

17

Section 5.12.  Section 1729-A of the act, amended or added

18

June 19, 1997 (P.L.225, No.22), July 4, 2004 (P.L.536, No.70)

19

and July 9, 2008 (P.L.846, No.61), is repealed:

20

[Section 1729-A.  Causes for Nonrenewal or Termination.--(a)

21

During the term of the charter or at the end of the term of the

22

charter, the local board of school directors may choose to

23

revoke or not to renew the charter based on any of the

24

following:

25

(1)  One or more material violations of any of the

26

conditions, standards or procedures contained in the written

27

charter signed pursuant to section 1720-A.

28

(2)  Failure to meet the requirements for student performance

29

set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or

30

subsequent regulations promulgated to replace 22 Pa. Code Ch. 5

31

or failure to meet any performance standard set forth in the

32

written charter signed pursuant to section 1716-A.

33

(3)  Failure to meet generally accepted standards of fiscal

34

management or audit requirements.

35

(4)  Violation of provisions of this article.

36

(5)  Violation of any provision of law from which the charter

37

school has not been exempted, including Federal laws and

38

regulations governing children with disabilities.

39

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

40

(a.1)  When a charter school located in a school district of

41

the first class is in corrective action status and seeks renewal

42

of its charter, if the governing body of the school district of

43

the first class renews the charter, it may place specific

44

conditions in the charter that require the charter school to

45

meet specific student performance targets within stated periods

46

of time subject to the following:

47

(i)  The performance targets and the periods of time in which

48

the performance targets must be met shall be reasonable.

49

(ii)  The placement of conditions in a charter as specified

50

in this subsection shall not be considered an adjudication and

51

may not be appealed to the State Charter School Appeal Board.

- 22 -

 


1

(iii)  If the charter school fails to meet the performance

2

targets within the stated period of time, such failure shall be

3

sufficient cause for revocation of the charter.

4

(b)  A member of the board of trustees who is convicted of a

5

felony or any crime involving moral turpitude shall be

6

immediately disqualified from serving on the board of trustees.

7

(c)  Any notice of revocation or nonrenewal of a charter

8

given by the local board of school directors of a school

9

district shall state the grounds for such action with reasonable

10

specificity and give reasonable notice to the governing board of

11

the charter school of the date on which a public hearing

12

concerning the revocation or nonrenewal will be held. The local

13

board of school directors shall conduct such hearing, present

14

evidence in support of the grounds for revocation or nonrenewal

15

stated in its notice and give the charter school reasonable

16

opportunity to offer testimony before taking final action.

17

Formal action revoking or not renewing a charter shall be taken

18

by the local board of school directors at a public meeting

19

pursuant to the act of July 3, 1986 (P.L.388, No.84), known as

20

the "Sunshine Act," after the public has had thirty (30) days to

21

provide comments to the board. All proceedings of the local

22

board pursuant to this subsection shall be subject to 2 Pa.C.S.

23

Ch. 5 Subch. B (relating to practice and procedure of local

24

agencies). Except as provided in subsection (d), the decision of

25

the local board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B

26

(relating to judicial review of local agency action).

27

(d)  Following the appointment and confirmation of the appeal

28

board, but not before July 1, 1999, the charter school may

29

appeal the decision of the local board of school directors to

30

revoke or not renew the charter to the appeal board. The appeal

31

board shall have the exclusive review of a decision not to renew

32

or revoke a charter. The appeal board shall review the record

33

and shall have the discretion to supplement the record if the

34

supplemental information was previously unavailable. The appeal

35

board may consider the charter school plan, annual reports,

36

student performance and employe and community support for the

37

charter school in addition to the record. The appeal board shall

38

give due consideration to the findings of the local board of

39

directors and specifically articulate its reasons for agreeing

40

or disagreeing with those findings in its written decision.

41

(e)  If the appeal board determines that the charter should

42

not be revoked or should be renewed, the appeal board shall

43

order the local board of directors to rescind its revocation or

44

nonrenewal decision.

45

(f)  Except as provided in subsection (g), the charter shall

46

remain in effect until final disposition by the appeal board.

47

(g)  In cases where the health or safety of the school's

48

pupils, staff or both is at serious risk, the local board of

49

school directors may take immediate action to revoke a charter.

50

(h)  All decisions of the charter school appeal board shall

51

be subject to appellate review by the Commonwealth Court.

- 23 -

 


1

(i)  When a charter is revoked, not renewed, forfeited,

2

surrendered or otherwise ceases to operate, the charter school

3

shall be dissolved. After the disposition of any liabilities and

4

obligations of the charter school, any remaining assets of the

5

charter school, both real and personal, shall be distributed on

6

a proportional basis to the school entities with students

7

enrolled in the charter school for the last full or partial

8

school year of the charter school. In no event shall such school

9

entities or the Commonwealth be liable for any outstanding

10

liabilities or obligations of the charter school.

11

(j)  When a charter is revoked or is not renewed, a student

12

who attended the charter school shall apply to another public

13

school in the student's school district of residence. Normal

14

application deadlines will be disregarded under these

15

circumstances. All student records maintained by the charter

16

school shall be forwarded to the student's district of

17

residence.]

18

Section 5.13.  Sections 1730-A and 1731-A of the act, added

19

June 19, 1997 (P.L.225, No.22), are repealed:

20

[Section 1730-A.  Desegregation Orders.--The local board of

21

school directors of a school district which is operating under a

22

desegregation plan approved by the Pennsylvania Human Relations

23

Commission or a desegregation order by a Federal or State court

24

shall not approve a charter school application if such charter

25

school would place the school district in noncompliance with its

26

desegregation order.

27

Section 1731-A.  Charter School Grants.--(a)  The secretary

28

shall allocate grants for planning and start-up funding to

29

eligible applicants under section 1717-A from funds appropriated

30

for the implementation of this act.

31

(1)  Planning grant applications shall be filed on a form and

32

by a date determined by the secretary. The amount of a grant may

33

vary depending on the size and scope of the planning needed by

34

the applicant. The application shall address the manner in which

35

the applicant plans to address the criteria established for

36

charter schools in sections 1715-A and 1717-A.

37

(2)  Start-up funding grant applications shall be filed on a

38

form and by a date determined by the secretary. The applicant

39

for the charter school shall submit its application for a

40

charter when applying for the grant. A grant for start-up

41

funding may vary depending on the size and special

42

characteristics of the charter school. A start-up grant may be

43

used to meet the expenses of the charter school as established

44

in their charter and as authorized in the provisions of this

45

article.

46

(b)  The applicant shall include a copy of a letter informing

47

the local board of school directors of the school district of

48

the application for the planning grant if the location of the

49

proposed charter school is known. An applicant receiving a

50

start-up funding grant shall notify the school district or

51

districts signing the charter of receipt of this grant.]

- 24 -

 


1

Section 5.14.  Section 1732-A, Subdivision (c) heading and

2

sections 1741-A, 1742-A, 1743-A, 1744-A, 1745-A, 1746-A, 1747-A,

3

1748-A, 1749-A, 1750-A and 1751-A of the act, amended or added

4

June 29, 2002 (P.L.524, No.88), are repealed:

5

[Section 1732-A.  Provisions Applicable to Charter Schools.--

6

(a)  Charter schools shall be subject to the following:

7

Sections 108, 110, 111, 321, 325, 326, 327, 431, 436, 443,

8

510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753, 755,

9

771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a), 1301, 1310,

10

1317, 1317.1, 1317.2, 1318, 1327, 1330, 1332, 1303-A, 1513,

11

1517, 1518, 1521, 1523, 1531, 1547, 2014-A, Article XIII-A and

12

Article XIV.

13

Act of July 17, 1961 (P.L.776, No.341), known as the

14

"Pennsylvania Fair Educational Opportunities Act."

15

Act of July 19, 1965 (P.L.215, No.116), entitled "An act

16

providing for the use of eye protective devices by persons

17

engaged in hazardous activities or exposed to known dangers in

18

schools, colleges and universities."

19

Section 4 of the act of January 25, 1966 (1965 P.L.1546,

20

No.541), entitled "An act providing scholarships and providing

21

funds to secure Federal funds for qualified students of the

22

Commonwealth of Pennsylvania who need financial assistance to

23

attend postsecondary institutions of higher learning, making an

24

appropriation, and providing for the administration of this

25

act."

26

Act of July 12, 1972 (P.L.765, No.181), entitled "An act

27

relating to drugs and alcohol and their abuse, providing for

28

projects and programs and grants to educational agencies, other

29

public or private agencies, institutions or organizations."

30

Act of December 15, 1986 (P.L.1595, No.175), known as the

31

"Antihazing Law."

32

(b)  Charter schools shall be subject to the following

33

provisions of 22 Pa. Code:

34

Section 5.216 (relating to ESOL).

35

Section 5.4 (relating to general policies).

36

Chapter 11 (relating to pupil attendance).

37

Chapter 12 (relating to students).

38

Section 32.3 (relating to assurances).

39

Section 121.3 (relating to discrimination prohibited).

40

Section 235.4 (relating to practices).

41

Section 235.8 (relating to civil rights).

42

Chapter 711 (relating to charter school services and programs

43

for children with disabilities).

44

(c)  (1)  The secretary may promulgate additional regulations

45

relating to charter schools.

46

(2)  The secretary shall have the authority and the

47

responsibility to ensure that charter schools comply with

48

Federal laws and regulations governing children with

49

disabilities. The secretary shall promulgate regulations to

50

implement this provision.

51

(c)  Cyber Charter Schools.

- 25 -

 


1

Section 1741-A.  Powers and duties of department.

2

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

3

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

4

creation of a cyber charter school and have the power to

5

request further information from applicants, obtain input

6

from interested persons or entities and hold hearings

7

regarding applications.

8

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

9

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

10

or 1718-A which provides instruction through the Internet or

11

other electronic means. Upon renewal of a charter of a

12

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

13

charter school shall qualify as a cyber charter school under

14

this subdivision and shall be subject to the provisions of

15

this subdivision.

16

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

17

charter under the provisions of section 1729-A.

18

(i)  Notwithstanding the provisions of section 1729-

19

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

20

of a charter, the cyber charter school shall be

21

dissolved. After the disposition of the liabilities and

22

obligations of the cyber charter school, any remaining

23

assets of the cyber charter school shall be given over to

24

the intermediate unit in which the cyber charter school's

25

administrative office was located for distribution to the

26

school districts in which the students enrolled in the

27

cyber charter school reside at the time of dissolution.

28

(ii)  Notwithstanding any laws to the contrary, the

29

department may, after notice and hearing, take immediate

30

action to revoke a charter if:

31

(A)  a material component of the student's

32

education as required under this subdivision is not

33

being provided; or

34

(B)  the cyber charter school has failed to

35

maintain the financial ability to provide services as

36

required under this subdivision.

37

(4)  Execute charters after approval.

38

(5)  Develop forms, including the notification form under

39

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

40

this subdivision.

41

(b)  Hearings.--Hearings conducted by the department shall be

42

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

43

(c)  Documents.--Documents of the appeal board shall be

44

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

45

to as the Right-to-Know Law.

46

Section 1742-A.  Assessment and evaluation.

47

The department shall:

48

(1)  Annually assess whether each cyber charter school is

49

meeting the goals of its charter and is in compliance with

50

the provisions of the charter and conduct a comprehensive

51

review prior to granting a five-year renewal of the charter.

- 26 -

 


1

(2)  Annually review each cyber charter school's

2

performance on the Pennsylvania System of School Assessment

3

test, standardized tests and other performance indicators to

4

ensure compliance with 22 Pa. Code Ch. 4 (relating to

5

academic standards and assessment) or subsequent regulations

6

promulgated to replace 22 Pa. Code Ch. 4.

7

(3)  Have ongoing access to all records, instructional

8

materials and student and staff records of each cyber charter

9

school and to every cyber charter school facility to ensure

10

the cyber charter school is in compliance with its charter

11

and this subdivision.

12

Section 1743-A.  Cyber charter school requirements and

13

prohibitions.

14

(a)  Special financial requirements prohibited.--A cyber

15

charter school shall not:

16

(1)  provide discounts to a school district or waive

17

payments under section 1725-A for any student;

18

(2)  except as provided for in subsection (e), provide

19

payments to parents or guardians for the purchase of

20

instructional materials; or

21

(3)  except as compensation for the provision of specific

22

services, enter into agreements to provide funds to a school

23

entity.

24

(b)  Enrollment.--A cyber charter school shall report to the

25

department an increase or a decrease of 30% or more in its

26

anticipated enrollment set forth in the application under

27

section 1747-A(11).

28

(c)  School district.--A cyber charter school shall make

29

available upon request, either in writing or electronically, to

30

each student's school district of residence the following:

31

(1)  A copy of the charter.

32

(2)  A copy of the cyber charter school application.

33

(3)  A copy of all annual reports prepared by the cyber

34

charter school.

35

(4)  A list of all students from that school district

36

enrolled in the cyber charter school.

37

(d)  Parent or guardian.--Upon request and prior to the

38

student's first day in a cyber charter school, the cyber charter

39

school shall, either in writing or electronically, provide to

40

the parent or guardian of a student the following:

41

(1)  A list and brief description of the courses of

42

instruction the student will receive. The list shall be

43

updated annually for each grade level in which the student is

44

enrolled.

45

(2)  A description of the lessons and activities to be

46

offered both online and offline.

47

(3)  The manner in which attendance will be reported and

48

work will be authenticated.

49

(4)  A list of all standardized tests the student will be

50

required to take during the school year and the place where

51

the test will be administered, if available.

- 27 -

 


1

(5)  The meetings to be held during the school year

2

between a parent or guardian and a teacher and among other

3

school officials or parents or guardians and the manner in

4

which the parent or guardian will be notified of the time and

5

place for the meeting.

6

(6)  The address of the cyber charter school and the

7

name, telephone number and e-mail address of the school

8

administrator and other school personnel.

9

(7)  A list of any extracurricular activities provided by

10

the cyber charter school.

11

(8)  The names of the student's teachers, if available,

12

and the manner in which each teacher can be contacted by the

13

student or the parent or guardian.

14

(9)  A list of all services that will be provided to the

15

student by the cyber charter school.

16

(10)  Copies of policies relating to computer security

17

and privacy, truancy, absences, discipline and withdrawal or

18

expulsion of students.

19

(11)  Information on:

20

(i)  The cyber charter school's professional staff,

21

including the number of staff personnel, their education

22

level and experience.

23

(ii)  The cyber charter school's performance on the

24

PSSA and other standardized test scores.

25

(12)  Information regarding the proper usage of equipment

26

and materials and the process for returning equipment and

27

materials supplied to the students by the cyber charter

28

school. A parent or guardian shall acknowledge, either in

29

writing or electronically, the receipt of this information.

30

(13)  A description of the school calendar, including,

31

but not limited to, the time frame that will constitute a

32

school year and a school week, holidays and term breaks.

33

(e)  Students.--For each student enrolled, a cyber charter

34

school shall:

35

(1)  provide all instructional materials;

36

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

37

to, a computer, computer monitor and printer; and

38

(3)  provide or reimburse for all technology and services

39

necessary for the on-line delivery of the curriculum and

40

instruction.

41

The Commonwealth shall not be liable for any reimbursement owed

42

to students, parents or guardians by a cyber charter school

43

under paragraph (3).

44

(f)  Annual report.--A cyber charter school shall submit an

45

annual report no later than August 1 of each year to the

46

department in the form prescribed by the department.

47

(g)  Records and facilities.--A cyber charter school shall

48

provide the department with ongoing access to all records and

49

facilities necessary for the department to assess the cyber

50

charter school in accordance with the provisions of this

51

subdivision.

- 28 -

 


1

(h)  Offices and facilities.--A cyber charter school shall

2

maintain an administrative office within this Commonwealth where

3

all student records shall be maintained at all times and shall

4

provide the department with the addresses of all offices and

5

facilities of the cyber charter school, the ownership thereof

6

and any lease arrangements. The administrative office of the

7

cyber charter school shall be considered as the principal place

8

of business for service of process for any action brought

9

against the cyber charter school or cyber charter school staff

10

members. The cyber charter school shall notify the department of

11

any changes in this information within ten days of the change.

12

(i)  Applicable law.--Any action taken against the cyber

13

charter school, its successors or assigns or its employees,

14

including any cyber charter school staff member as defined in

15

the act of December 12, 1973 (P.L.397, No.141), known as the

16

Professional Educator Discipline Act, shall be governed by the

17

laws of this Commonwealth. If the department initiates an

18

investigation or pursues an action pursuant to the Professional

19

Educator Discipline Act involving any current or former charter

20

school staff member outside this Commonwealth, any reasonable

21

expenses incurred by the department in such investigation or

22

action shall be paid by the cyber charter school which employed

23

that staff member at the time of the alleged misconduct.

24

Section 1744-A.  School district and intermediate unit

25

responsibilities.

26

An intermediate unit or a school district in which a student

27

enrolled in a cyber charter school resides shall do all of the

28

following:

29

(1)  Provide the cyber charter school within ten days of

30

receipt of the notice of the admission of the student under

31

section 1748-A(a) with all records relating to the student,

32

including transcripts, test scores and a copy of any

33

individualized education program for that student.

34

(2)  Provide the cyber charter school with reasonable

35

access to its facilities for the administration of

36

standardized tests required under this subdivision.

37

(3)  Upon request, provide assistance to the cyber

38

charter school in the delivery of services to a student with

39

disabilities. The school district or intermediate unit shall

40

not charge the cyber charter school more for a service than

41

it charges a school district.

42

(4)  Make payments to the cyber charter school under

43

section 1725-A.

44

Section 1745-A.  Establishment of cyber charter school.

45

(a)  Establishment.--A cyber charter school may be

46

established by an individual; one or more teachers who will

47

teach at the proposed cyber charter school; parents or guardians

48

of students who will enroll in the cyber charter school; a

49

nonsectarian college, university or museum located in this

50

Commonwealth; a nonsectarian corporation not-for-profit as

51

defined in 15 Pa.C.S. § 5103 (relating to definitions); a

- 29 -

 


1

corporation, association or partnership; or any combination of

2

the foregoing. Section 1327.1 shall not apply to a cyber charter

3

school established under this subdivision.

4

(b)  Sectarian entities.--No cyber charter school shall be

5

established or funded by and no charter shall be granted to a

6

sectarian school, institution or other entity.

7

(c)  Attendance.--Attendance at a cyber charter school shall

8

satisfy requirements for compulsory attendance.

9

(d)  Application.--An application to establish a cyber

10

charter school shall be submitted to the department by October 1

11

of the school year preceding the school year in which the cyber

12

charter school proposes to commence operation.

13

(e)  Grant or denial.--Within 120 days of receipt of an

14

application, the department shall grant or deny the application.

15

The department shall review the application and shall hold at

16

least one public hearing under 65 Pa.C.S. Ch. 7 (relating to

17

open meetings). At least 30 days prior to the hearing, the

18

department shall publish in the Pennsylvania Bulletin and on the

19

department's World Wide Web site notice of the hearing and the

20

purpose of the application.

21

(f)  Evaluation criteria.--

22

(1)  A cyber charter school application submitted under

23

this subdivision shall be evaluated by the department based

24

on the following criteria:

25

(i)  The demonstrated, sustainable support for the

26

cyber charter school plan by teachers, parents or

27

guardians and students.

28

(ii)  The capability of the cyber charter school

29

applicant, in terms of support and planning, to provide

30

comprehensive learning experiences to students under the

31

charter.

32

(iii)  The extent to which the programs outlined in

33

the application will enable students to meet the academic

34

standards under 22 Pa. Code Ch. 4 (relating to academic

35

standards and assessment) or subsequent regulations

36

promulgated to replace 22 Pa. Code Ch. 4.

37

(iv)  The extent to which the application meets the

38

requirements of section 1747-A.

39

(v)  The extent to which the cyber charter school may

40

serve as a model for other public schools.

41

(2)  Written notice of the action of the department shall

42

be sent by certified mail to the applicant and published on

43

the department's World Wide Web site. If the application is

44

denied, the reasons for denial, including a description of

45

deficiencies in the application, shall be clearly stated in

46

the notice.

47

(3)  Upon approval of a cyber charter school application,

48

a written charter shall be developed which shall contain the

49

provisions of the charter application and be signed by the

50

secretary and each member of the board of trustees of the

51

cyber charter school. The charter, when duly signed, shall

- 30 -

 


1

act as legal authorization of the establishment of a cyber

2

charter school. The charter shall be legally binding on the

3

department, the cyber charter school and its board of

4

trustees. The charter shall be for a period of no less than

5

three years nor more than five years and may be renewed for a

6

period of five years by the department.

7

(4)  The decision of the department to deny an

8

application may be appealed to the appeal board.

9

(g)  Denied application.--A cyber charter school applicant

10

may revise and resubmit a denied application to the department.

11

The department shall grant or deny the revised application

12

within 60 days after its receipt.

13

(h)  Appeal.--If the department fails to hold the required

14

public hearing or to approve or disapprove the charter, the

15

applicant may file its application as an appeal to the appeal

16

board. The appeal board shall review the application and make a

17

decision to approve or disapprove the charter based on the

18

criteria in subsection (f).

19

Section 1746-A.  State Charter School Appeal Board review.

20

(a)  Jurisdiction.--The appeal board shall have the exclusive

21

review of an appeal by a cyber charter school applicant or by

22

the board of trustees of a cyber charter school on the decisions

23

of the department, including:

24

(1)  The denial of an application for a charter.

25

(2)  The denial of a renewal of a charter.

26

(3)  The revocation of a charter.

27

(4)  An appeal under section 1745-A(h).

28

(b)  Procedure.--The appeal board shall:

29

(1)  Review the decision made by the department under

30

subsection (a) on the record as certified by the department.

31

The secretary shall recuse himself from all cyber charter

32

school appeals and shall not participate in a hearing,

33

deliberation or vote on a cyber charter school appeal. The

34

appeal board may allow the department, the cyber charter

35

school applicant or the board of trustees of a cyber charter

36

school to supplement the record if the supplemental

37

information was previously unavailable.

38

(2)  Meet to officially review the certified record no

39

later than 30 days after the date of filing the appeal.

40

(3)  Issue a written decision affirming or denying the

41

appeal no later than 60 days following its review.

42

(4)  In the case of a decision by the department to deny

43

a cyber charter application, make its decision based on

44

section 1745-A(f)(1). A decision by the appeal board to

45

reverse the decision of the department and grant a charter

46

shall serve as a requirement for the secretary to sign the

47

written charter of the cyber charter school.

48

(5)  In the case of a decision by the department to

49

revoke or deny renewal of a cyber school charter in

50

accordance with section 1741-A(a)(3), make its decision based

51

on section 1729-A(a). A decision of the appeal board to

- 31 -

 


1

reverse the decision of the department to not revoke or deny

2

renewal of a charter shall serve as a requirement of the

3

department to not revoke or to not deny renewal of the

4

charter of the cyber charter school.

5

(c)  Stay.--If the department appeals the decision of the

6

appeal board, the appeal board's decision shall be stayed only

7

upon order of the appeal board, the Commonwealth Court or the

8

Pennsylvania Supreme Court.

9

(d)  Review.--All decisions of the appeal board shall be

10

subject to appellate review by the Commonwealth Court.

11

Section 1747-A.  Cyber charter school application.

12

In addition to the provisions of section 1719-A, an

13

application to establish a cyber charter school shall also

14

include the following:

15

(1)  The curriculum to be offered and how it meets the

16

requirements of 22 Pa. Code Ch. 4 (relating to academic

17

standards and assessment) or subsequent regulations

18

promulgated to replace 22 Pa. Code Ch. 4.

19

(2)  The number of courses required for elementary and

20

secondary students.

21

(3)  An explanation of the amount of on-line time

22

required for elementary and secondary students.

23

(4)  The manner in which teachers will deliver

24

instruction, assess academic progress and communicate with

25

students to provide assistance.

26

(5)  A specific explanation of any cooperative learning

27

opportunities, meetings with students, parents and guardians,

28

field trips or study sessions.

29

(6)  The technology, including types of hardware and

30

software, equipment and other materials which will be

31

provided by the cyber charter school to the student.

32

(7)  A description of how the cyber charter school will

33

define and monitor a student's school day, including the

34

delineation of on-line and off-line time.

35

(8)  A description of commercially prepared standardized

36

achievement tests that will be used by the cyber charter

37

school in addition to the Pennsylvania System of School

38

Assessment test, including the grade levels that will be

39

tested and how the data collected from the tests will be used

40

to improve instruction.

41

(9)  The technical support that will be available to

42

students and parents or guardians.

43

(10)  The privacy and security measures to ensure the

44

confidentiality of data gathered online.

45

(11)  The level of anticipated enrollment during each

46

school year of the proposed charter, including expected

47

increases due to the addition of grade levels.

48

(12)  The methods to be used to insure the authenticity

49

of student work and adequate proctoring of examinations.

50

(13)  The provision of education and related services to

51

students with disabilities, including evaluation and the

- 32 -

 


1

development and revision of individualized education

2

programs.

3

(14)  Policies regarding truancy, absences and withdrawal

4

of students, including the manner in which the cyber charter

5

school will monitor attendance consistent with the provisions

6

of section 1715-A(9).

7

(15)  The types and frequency of communication between

8

the cyber charter school and the student and the manner in

9

which the cyber charter school will communicate with parents

10

and guardians.

11

(16)  The addresses of all facilities and offices of the

12

cyber charter school, the ownership thereof and any lease

13

arrangements.

14

Section 1748-A.  Enrollment and notification.

15

(a)  Notice to school district.--

16

(1)  Within 15 days of the enrollment of a student to a

17

cyber charter school, the parent or guardian and the cyber

18

charter school shall notify the student's school district of

19

residence of the enrollment through the use of the

20

notification form under subsection (b).

21

(2)  If a school district which has received notice under

22

paragraph (1) determines that a student is not a resident of

23

the school district, the following apply:

24

(i)  Within seven days of receipt of the notice under

25

paragraph (1), the school district shall notify the cyber

26

charter school and the department that the student is not

27

a resident of the school district. Notification of

28

nonresidence shall include the basis for the

29

determination.

30

(ii)  Within seven days of notification under

31

subparagraph (i), the cyber charter school shall review

32

the notification of nonresidence, respond to the school

33

district and provide a copy of the response to the

34

department. If the cyber charter school agrees that a

35

student is not a resident of the school district, it

36

shall determine the proper district of residence of the

37

student before requesting funds from another school

38

district.

39

(iii)  Within seven days of receipt of the response

40

under subparagraph (ii), the school district shall notify

41

the cyber charter school that it agrees with the cyber

42

charter school's determination or does not agree with the

43

cyber charter school's determination.

44

(iv)  A school district that has notified the cyber

45

charter school that it does not agree with the cyber

46

charter school's determination under subparagraph (iii)

47

shall appeal to the department for a final determination.

48

(v)  All decisions of the department regarding the

49

school district of residence of a student shall be

50

subject to review by the Commonwealth Court.

51

(vi)  A school district shall continue to make

- 33 -

 


1

payments to a cyber charter school under section 1725-A

2

during the time in which the school district of residence

3

of a student is in dispute.

4

(vii)  If a final determination is made that a

5

student is not a resident of an appealing school

6

district, the cyber charter school shall return all funds

7

provided on behalf of that student to the school district

8

within 30 days.

9

(b)  Notification form.--The department shall develop a

10

notification form for use under subsection (a). The notification

11

shall include:

12

(1)  The name, home address and mailing address of the

13

student.

14

(2)  The grade in which the student is being enrolled.

15

(3)  The date the student will be enrolled.

16

(4)  The name and address of the cyber charter school and

17

the name and telephone number of a contact person able to

18

provide information regarding the cyber charter school.

19

(5)  The signature of the parent or guardian and an

20

authorized representative of the cyber charter school.

21

(c)  Withdrawal.--The cyber charter school and the parent or

22

guardian of a student enrolled in a cyber charter school shall

23

provide written notification to the student's school district of

24

residence within 15 days following the withdrawal of a student

25

from the cyber charter school.

26

Section 1749-A.  Applicability of other provisions of this

27

act and of other acts and regulations.

28

(a)  General requirements.--Cyber charter schools shall be

29

subject to the following:

30

(1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,

31

436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,

32

808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,

33

1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,

34

1523, 1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A,

35

1719-A, 1721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A,

36

1727-A, 1729-A, 1730-A, 1731-A(a)(1) and (b) and 2014-A and

37

Articles XII-A, XIII-A and XIV.

38

(2)  The act of July 17, 1961 (P.L.776, No.341), known as

39

the Pennsylvania Fair Educational Opportunities Act.

40

(3)  The act of July 19, 1965 (P.L.215, No.116), entitled

41

"An act providing for the use of eye protective devices by

42

persons engaged in hazardous activities or exposed to known

43

dangers in schools, colleges and universities."

44

(4)  Section 4 of the act of January 25, 1966 (1965

45

P.L.1546, No.541), entitled "An act providing scholarships

46

and providing funds to secure Federal funds for qualified

47

students of the Commonwealth of Pennsylvania who need

48

financial assistance to attend postsecondary institutions of

49

higher learning, making an appropriation, and providing for

50

the administration of this act."

51

(5)  The act of July 12, 1972 (P.L.765, No.181) entitled

- 34 -

 


1

"An act relating to drugs and alcohol and their abuse,

2

providing for projects and programs and grants to educational

3

agencies, other public or private agencies, institutions or

4

organizations."

5

(6)  The act of December 15, 1986 (P.L.1595, No.175),

6

known as the Antihazing Law.

7

(b)  Regulations.--Cyber charter schools shall be subject to

8

the following provisions of 22 Pa. Code (relating to education):

9

(1)  Chapter 4 (relating to academic standards and

10

assessment).

11

(2)  Chapter 11 (relating to pupil attendance).

12

(3)  Chapter 12 (relating to students).

13

(4)  Section 32.3 (relating to assurances).

14

(5)  Section 121.3 (relating to discrimination

15

prohibited).

16

(6)  Section 235.4 (relating to practices).

17

(7)  Section 235.8 (relating to civil rights).

18

(8)  Chapter 711 (relating to charter school services and

19

programs for children with disabilities).

20

(c)  Existing charter schools.--

21

(1)  The charter of a charter school approved under

22

section 1717-A or 1718-A which provides instruction through

23

the Internet or other electronic means shall remain in effect

24

for the duration of the charter and shall be subject to the

25

provisions of Subdivision (b).

26

(2)  In addition to subsections (a) and (b), the

27

following provisions of this subdivision shall apply to a

28

charter school approved under section 1717-A or 1718-A which

29

provides instruction through the Internet or other electronic

30

means:

31

(i)  Section 1743-A(c), (d), (e), (h) and (i).

32

(ii)  Section 1744-A.

33

(iii)  Section 1748-A.

34

Section 1750-A.  Effect on certain existing charter schools.

35

(a)  Determination.--For a charter school approved under

36

section 1717-A or 1718-A which provides instruction through the

37

Internet or other electronic means, prior to August 15, 2002,

38

the department shall determine:

39

(1)  whether the charter school is in compliance with

40

this subdivision;

41

(2)  whether the charter school has provided notification

42

of the enrollment of each existing student to the school

43

district of residence; and

44

(3)  how the charter school plans to comply with section

45

1743-A(d).

46

(b)  Notification of compliance.--Prior to August 15, 2002,

47

the department shall:

48

(1)  Notify each charter school and the chartering school

49

district of the department's determination under subsection

50

(a). The notification shall include specific requirements

51

with which the charter school has failed to comply.

- 35 -

 


1

(2)  Publish a copy of the notification on the

2

department's World Wide Web site.

3

(c)  Charter school requirement.--A charter school subject to

4

the requirements of this section shall, either in writing or

5

electronically, provide the parent or guardian of any student

6

enrolled in the charter school a copy of the department's

7

determination under subsection (b).

8

(d)  School districts.--A school district shall not renew the

9

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

10

1718-A which provides instruction through the Internet or other

11

electronic means or approve a charter for a cyber charter

12

school.

13

(e)  Renewal of charter for certain existing charter

14

schools.--Upon the expiration of its charter, a charter school

15

approved under section 1717-A or 1718-A which provides

16

instruction through the Internet or other electronic means shall

17

seek renewal of its charter from the department under this

18

subdivision. The charter shall be amended as needed to reflect

19

the requirements of this subdivision.

20

Section 1751-A.  Regulations.

21

The department may issue regulations to implement this

22

subdivision.]

23

Section 6.  The act is amended by adding articles to read:

24

ARTICLE XVII-C

25

CHARTER SCHOOL ENTITIES

26

SUBARTICLE A

27

PRELIMINARY PROVISIONS

28

Section 1701-C.  Scope of article.

29

This article relates to charter school entities.

30

Section 1702-C.  Legislative intent.

31

It is the intent of the General Assembly to provide pupils

32

and community members the ability to establish and maintain

33

schools that operate independently from the existing school

34

district structure as a method to accomplish all of the

35

following:

36

(1)  Improve pupil learning.

37

(2)  Increase learning opportunities for all pupils.

38

(3)  Encourage the use of different and innovative

39

teaching methods.

40

(4)  Create new professional opportunities for teachers,

41

including the opportunity to be responsible for the learning

42

program at the school site.

43

(5)  Provide parents and pupils with expanded choices in

44

the types of educational opportunities that are available

45

within the public school system.

46

(6)  Hold the schools established under this article

47

accountable for meeting measurable academic standards and

48

provide the school with a method to establish accountability

49

systems.

50

Section 1703-C.  Definitions.

51

The following words and phrases when used in this article

- 36 -

 


1

shall have the meanings given to them in this section unless the

2

context clearly indicates otherwise:

3

"Administrator."  The term includes those employees of a

4

charter school entity, including the chief administrator of a

5

charter school entity and all other employees, who by virtue of

6

their positions are responsible for taking or recommending

7

official action of a nonministerial nature with regard to

8

contracting or procurement, administering or monitoring grants

9

or subsidies, managing or regulating staff, student and school

10

activities or any activity where the official action has an

11

economic impact of greater than a de minimis nature on the

12

interests of any person.

13

"Appeal board."  The State Charter School Appeal Board.

14

"At-risk student."  A student at risk of educational failure

15

because of limited English proficiency, poverty, community

16

factors, truancy, academic difficulties or economic

17

disadvantage.

18

"Authorizer."  The commission or a local board of school

19

directors.

20

"Charter school."  An independent public school established

21

and operated under a charter from an authorizer and in which

22

students are enrolled or attend.

23

"Charter school entity."  A charter school, regional charter

24

school or cyber charter school.

25

"Charter school foundation."  A nonprofit organization, as

26

defined under section 501(c)(3) of the Internal Revenue Code of

27

1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), that provides

28

funding, resources or otherwise serves to support a charter

29

school entity, either directly or through an affiliated entity.

30

"Chief administrator."  An individual appointed by the board

31

of trustees to oversee and manage the operation of the charter

32

school entity. The term shall not include a professional staff

33

member.

34

"Commission."  The State Commission on Charter Schools.

35

"Committee."  The Charter School Funding Advisory Committee.

36

"Cyber charter school."  An independent public school

37

established and operated under a charter from the commission and

38

which uses technology in order to provide a significant portion

39

of its curriculum and to deliver a significant portion of

40

instruction to its students through the Internet or other

41

electronic means.

42

"Department."  The Department of Education of the

43

Commonwealth.

44

"Educational management service provider."  A for-profit

45

education management organization, nonprofit charter or

46

education management organization, school design provider,

47

business manager or any other partner entity with which a board

48

of trustees of a charter school entity contracts to provide

49

educational design, business services, comprehensive management,

50

personnel functions or implementation of the charter.

51

"Fund."  The State Charter School Assessment Fund.

- 37 -

 


1

"Governing board."  The council of trustees of an institution

2

of higher education.

3

"Immediate family member."  A parent, spouse, child, brother

4

or sister.

5

"Institution of higher education."  An institution as defined

6

in section 2001-A(10).

7

"Local board of school directors."  The board of directors of

8

a school district in which a proposed or an approved charter

9

school is located. The term shall include a special board of

10

control or a School Reform Commission.

11

"Local taxing authority."  A county, city, borough,

12

incorporated town, township or school district.

13

"Nonrelated."  An individual who is not an immediate family

14

member.

15

"Regional charter school."  An independent public school that

16

is a charter school established and operated under a charter

17

from more than one authorizer and in which students are enrolled

18

or attend.

19

"Right-to-Know Law."  The act of February 14, 2008 (P.L.6,

20

No.3), known as the Right-to-Know Law.

21

"School district of residence."  The school district in this

22

Commonwealth in which a child resides as determined under

23

section 1302.

24

"School entity."  A school district, intermediate unit, joint

25

school or area vocational-technical school.

26

"School Reform Commission."  The School Reform Commission

27

established under section 696.

28

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

29

"Special board of control."  A special board of control

30

established under section 692.

31

"State board."  The State Board of Education of the

32

Commonwealth.

33

"Unused facility."  Any building owned by a school district

34

or the Commonwealth that is not used by the school district or

35

the Commonwealth for its own programs or that is leased to a

36

third party for consideration.

37

Section 1704-C.  State Commission on Charter Schools.

38

(a)  Establishment.--The State Commission on Charter Schools

39

is established as an independent administrative commission.

40

(b)  Composition.--

41

(1)  The commission shall consist of citizens of this

42

Commonwealth who possess strong experience and expertise in

43

one of the following areas:

44

(i)  Public nonprofit governance.

45

(ii)  Business and administration.

46

(iii)  Social services.

47

(iv)  Management.

48

(v)  Finance.

49

(vi)  Public school leadership.

50

(vii)  Assessment.

51

(viii)  Curriculum and instruction.

- 38 -

 


1

(ix)  Public education law.

2

(2)  All members of the commission shall have a

3

demonstrated understanding of and commitment to charter

4

schooling as a strategy for strengthening public education.

5

(3)  No current State public official or appointee shall

6

be appointed to serve as a member of the commission.

7

(4)  Members of the commission shall be appointed as

8

follows:

9

(i)  Three individuals who shall be appointed by the

10

Governor.

11

(ii)  Four individuals who shall be appointed by the

12

General Assembly as follows:

13

(A)  The President pro tempore of the Senate

14

shall appoint one individual.

15

(B)  The Minority Leader of the Senate shall

16

appoint one individual.

17

(C)  The Speaker of the House of Representatives

18

shall appoint one individual.

19

(D)  The Minority Leader of the House of

20

Representatives shall appoint one individual.

21

(c)  Terms.--

22

(1)  The members initially appointed by the Governor

23

shall serve for terms of two, three and four years,

24

respectively, the particular term of each to be designated by

25

the Governor at the time of appointment.

26

(2)  (i)  Except as provided under subparagraph (ii), the

27

members initially appointed by the General Assembly under

28

subsection (b)(4)(ii) shall serve for terms of four years

29

and the terms of those members' successors shall be four

30

years each.

31

(ii)  Any person appointed to fill a vacancy for a

32

member appointed under subsection (b)(4)(ii) shall serve

33

only for the unexpired term or until a successor is

34

appointed and qualified.

35

(3)  An appointed member of the commission shall be

36

eligible for reappointment.

37

(4)  The Governor shall select one of the members to

38

serve as chairperson of the commission.

39

(d)  Meetings.--The commission shall meet at least monthly to

40

fulfill the purposes provided under this section. A majority of

41

the members of the commission shall constitute a quorum and a

42

majority of the members of the commission shall have authority

43

to act upon any matter properly before the commission. The

44

commission is authorized to establish rules for its operation.

45

(e)  Compensation.--The members shall receive no payment for

46

their services. Members who are not employees of State

47

government shall be reimbursed from the fund for expenses

48

incurred in the course of their official duties.

49

(f)  Executive director.--An executive director shall be

50

appointed by the members of the commission. The executive

51

director shall be paid compensation as the commission may

- 39 -

 


1

determine. The executive director may employ personnel and

2

contract for consulting services as may be necessary and is

3

authorized to carry out the purposes of this article if the

4

services are procured through a competitive bidding process.

5

(g)  Open meetings and documents.--Meetings of the commission

6

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

7

meetings) and all hearings shall be conducted in accordance with

8

2 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of

9

Commonwealth agencies). Documents of the commission shall be

10

subject to the Right-to-Know Law.

11

(h)  Powers and duties.--The commission shall have the

12

following powers and duties:

13

(1)  Implement the provisions of this article and

14

promulgate regulations.

15

(2)  Serve as an authorizer for charter school entities.

16

(3)  Develop and issue standardized forms that shall be

17

used by all applicants, authorizers and charter school

18

entities as required under sections 1718-C, 1721-C, 1726-C,

19

1731-C and 1735-C. The commission shall receive input from

20

the department, authorizers and charter school entity

21

operators to develop the standardized forms.

22

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

23

creation of a charter school entity, obtain input from

24

interested persons or entities and hold hearings regarding

25

applications.

26

(5)  Monitor and evaluate the operation of each charter

27

school entity the commission has authorized on an annual

28

basis in order to determine whether the school is in

29

compliance with the terms of its charter and applicable

30

statutes and regulations.

31

(6)  Renew, revoke or deny renewal of a charter school

32

entity's charter that the commission has chartered under

33

section 1723-C.

34

(7)  Provide a list of approved qualified independent

35

certified public accountants to conduct independent audits as

36

required under section 1731-C.

37

(8)  Receive, review and act on charter school transfers

38

under section 1734-C(c).

39

(9)  Accept applications under section 1718-C.

40

(10)  Receive, review and act on multiple charter school

41

organization requests under section 1735-C.

42

(11)  (i)  Develop a standard performance matrix for use

43

by the commission and authorizers to evaluate charter

44

school entity performance. The performance matrix shall

45

assess performance by utilizing objective criteria,

46

including:

47

(A)  Student performance on the Pennsylvania

48

System of School Assessment test, the Keystone Exam

49

or another test established by the State board to

50

meet the requirements of section 2603-B(d)(10)(i) and

51

required under the No Child Left Behind Act of 2001.

- 40 -

 


1

(B)  Annual growth as measured by the

2

Pennsylvania Value-Added Assessment System.

3

(C)  Attendance.

4

(D)  Attrition rates.

5

(E)  Graduation rates.

6

(F)  Except for clauses (A) and (B), other

7

assessment instruments or measures of student

8

achievement.

9

(G)  School safety.

10

(H)  Parent satisfaction.

11

(I)  Other measures of school quality.

12

(ii)  The commission shall develop the matrix under

13

subparagraph (i) within one year of the effective date of

14

this section with input from the department and charter

15

school entity operators. The commission may contract for

16

consulting services with an entity that has experience in

17

developing these matrices if the services are procured

18

through a competitive bidding process.

19

(iii)  Authorizers may not develop a separate matrix

20

for the evaluation of charter school entities.

21

(iv)  The standard performance matrix shall be

22

distributed by the commission to all known authorizers

23

and shall be published on the commission's publicly

24

accessible Internet website.

25

(v)  Beginning July 1, 2013, authorizers shall

26

utilize the standard performance matrix as a primary

27

factor in evaluating new and renewal charter school

28

entity applicants.

29

(12)  Provide a list of nationally recognized

30

accreditation agencies, including the Middle States

31

Association of Colleges and Schools or other regional

32

institutional accrediting agencies recognized by the United

33

States Department of Education or an equivalent federally

34

recognized body for charter school or cyber charter school

35

education, that a charter school entity may use to seek

36

accreditation.

37

(13)  Develop policies, procedures and regulations

38

pertaining to cyber charter school student truancy.

39

(14)  The commission may employ personnel and contract

40

for consulting services as may be necessary and is authorized

41

to carry out the purposes of this article if the services are

42

procured through a competitive bidding process.

43

Section 1705-C.  Commission funding.

44

(a)  Grants.--The commission shall annually seek Federal and

45

nonprofit grants to support its operations.

46

(b)  Limited use of certain funds.--For the 2011-2012 fiscal

47

year, the commission and department may utilize undistributed

48

funds not expended, encumbered or committed from appropriations

49

for grants and subsidies made to the department to the extent

50

necessary to carry out the provisions of this article and based

51

upon a budget submitted and approved by the Governor's Budget

- 41 -

 


1

Office. Funds identified by the department and approved by the

2

Governor's Budget Office shall be transferred to the account.

3

Section 1706-C.  Charter School Funding Advisory Committee.

4

(a)  Convention.--

5

(1)  The department shall, after the effective date of

6

this section, convene a Statewide advisory committee to

7

examine the financing of charter school entities in the

8

public education system. The committee shall examine how

9

charter school entity finances affect opportunities for

10

teachers, parents, pupils and community members to establish

11

and maintain schools that operate independently from the

12

existing school district structure as a method to accomplish

13

the requirements of section 1702-C. The department shall

14

provide administrative support, meeting space and any other

15

assistance required by the committee to carry out its duties

16

under this section.

17

(2)  The committee shall consist of the following

18

members:

19

(i)  The chairman and minority chairman of the

20

Education Committee of the Senate and the chairman and

21

the minority chairman of the Education Committee of the

22

House of Representatives, or their designees.

23

(ii)  The secretary or a designee.

24

(iii)  The chairman of the State board or a designee.

25

(iv)  The following members, who shall be appointed

26

by the secretary:

27

(A)  One member who shall represent charter

28

schools.

29

(B)  One member who shall represent regional

30

charter schools.

31

(C)  One member who shall represent cyber charter

32

schools.

33

(D)  One member who shall represent teachers. The

34

member may be a public school teacher, a charter

35

school teacher, a regional charter school teacher, a

36

cyber charter school teacher or a nonpublic school

37

teacher.

38

(E)  One member who shall represent school

39

administrators.

40

(F)  One member who shall represent school board

41

members.

42

(G)  One member who shall represent a business

43

manager of a school district.

44

(H)  One member who shall represent a parent of a

45

child attending a charter school entity.

46

(I)  One member who shall represent an

47

institution of higher education.

48

(3)  Members of the committee shall be appointed within

49

45 days of the effective date of this section. Any vacancy on

50

the committee shall be filled by the original appointing

51

officer or agency. The committee shall select a chairman and

- 42 -

 


1

vice chairman from among its membership at an organizational

2

meeting. The organizational meeting shall take place no later

3

than 90 days following the effective date of this section.

4

(4)  The committee shall hold meetings at the call of the

5

chairman. The committee may hold public hearings on the

6

matters to be considered by the committee at locations

7

throughout this Commonwealth. All meetings and public

8

hearings of the committee shall be subject to 65 Pa.C.S. Ch.

9

7 (relating to open meetings). Nine members of the committee

10

shall constitute a quorum at any meeting. Each member of the

11

committee may designate another person to represent that

12

member at meetings of the committee.

13

(5)  Committee members shall receive no compensation for

14

their services but shall be reimbursed for all necessary

15

travel and other reasonable expenses incurred in connection

16

with the performance of their duties as members. If possible,

17

the committee shall utilize the services and expertise of

18

existing personnel and staff of State government.

19

(6)  The committee shall have the following powers and

20

duties:

21

(i)  Meet with current charter school entity

22

operators within this Commonwealth, including cyber

23

charter schools with blended programs.

24

(ii)  Review charter school entity financing laws in

25

operation throughout the United States.

26

(iii)  Evaluate and make recommendations on the

27

following:

28

(A)  Powers and duties extended to charter school

29

entities as they relate to financing.

30

(B)  Funding formulas for charter school

31

entities, including reimbursement procedures and

32

funding under Title I of the Elementary and Secondary

33

Education Act of 1965 (Public Law 89-10, 20 U.S.C. §

34

6301 et seq.).

35

(C)  The process by which charter school entities

36

are funded under section 1728-C.

37

(D)  Student residency as it relates to funding.

38

(E)  Special education and other special program

39

funding.

40

(F)  Charter school entity transportation.

41

(G)  Charter school entity eligibility to receive

42

grants and funding.

43

(H)  Appropriate assessment fees on charter

44

school entities.

45

(I)  Consideration of recognizing a charter

46

school entity for additional designations as a local

47

education agency.

48

(iv)  The committee shall, no later than November 30,

49

2012, issue a report of its findings and recommendations

50

to the Governor, the President pro tempore of the Senate,

51

the Minority Leader of the Senate, the chairman and

- 43 -

 


1

minority chairman of the Education Committee of the

2

Senate, the Speaker of the House of Representatives, the

3

Minority Leader of the House of Representatives and the

4

chairman and minority chairman of the Education Committee

5

of the House of Representatives.

6

(b)  (Reserved).

7

SUBARTICLE B

8

CHARTER SCHOOL ENTITIES

9

Section 1714-C.  Powers.

10

(a)  Body corporate.--A charter school entity established

11

under this article is a body corporate and shall have all powers

12

necessary or desirable for carrying out its charter, including

13

the power to:

14

(1)  Adopt a name and corporate seal, except that any

15

name selected shall include the words "charter school,"

16

"regional charter school" or "cyber charter school."

17

(2)  Sue and be sued, but only to the same extent and

18

upon the same condition that political subdivisions and local

19

agencies can be sued.

20

(3)  Acquire real property from public or private sources

21

by purchase, lease, lease with an option to purchase or gift

22

for use as a charter school entity facility.

23

(4)  Receive and disburse funds for charter school entity

24

purposes only.

25

(5)  Make contracts and leases for the procurement of

26

services, including services to fulfill the duties of the

27

administrators and chief administrator for the charter school

28

entity, equipment and supplies.

29

(6)  Incur temporary debts in anticipation of the receipt

30

of funds.

31

(7)  Incur debt for the construction of school

32

facilities.

33

(8)  Solicit and accept any gifts or grants for charter

34

school entity purposes.

35

(9)  Enter into a concurrent enrollment agreement under

36

Article XVI-B with an institution of higher education.

37

(10)  Seek accreditation by an accreditation agency

38

recognized by the Commission pursuant to Section 1704-C(h)

39

(13).

40

(b)  Necessary powers.--A charter school entity shall have

41

other powers as are necessary to fulfill its charter and which

42

are not inconsistent with this article.

43

(c)  Liability for indebtedness.--Any indebtedness incurred

44

by a charter school entity in the exercise of the powers

45

specified under this section shall not impose any liability or

46

legal obligation upon a school entity or upon the Commonwealth.

47

Section 1715-C.  Requirements.

48

(a)  Compliance.--Charter school entities shall be required

49

to comply with the following:

50

(1)  Except as provided under this article, a charter

51

school entity shall be exempt from statutory requirements

- 44 -

 


1

established under this act, from regulations of the State

2

board and from standards of the secretary not specifically

3

applicable to charter school entities. Charter school

4

entities shall not be exempt from statutes applicable to

5

public schools other than under this article.

6

(2)  A charter school entity shall be accountable to the

7

parents, the public and the Commonwealth, with the

8

delineation of that accountability reflected in the charter.

9

Strategies for meaningful parent and community involvement

10

shall be developed and implemented by each school.

11

(3)  A charter school entity may not unlawfully

12

discriminate in admissions, hiring or operation.

13

(4)  A charter school entity shall be nonsectarian in all

14

operations.

15

(5)  A charter school entity may not provide any

16

religious instruction or display religious objects and

17

symbols on the premises of the school with the intention of

18

advancing or endorsing religion. It shall not be a violation

19

of this paragraph for a charter school entity to utilize a

20

sectarian facility:

21

(i)  if the religious objects and symbols within the

22

portions of the facility utilized by the school are

23

covered or removed to the extent reasonably feasible; and 

24

(ii)  the charter school entity provides for discrete

25

and separate entrances to buildings utilized for school

26

purposes only.

27

(6)  A charter school entity may not advocate unlawful

28

behavior.

29

(7)  Subject to section 220, a charter school entity

30

shall participate in the Pennsylvania State Assessment System

31

as provided for in 22 Pa. Code Ch. 4 (relating to academic

32

standards and assessment). A charter school entity shall be

33

treated in the same manner as a school district for the

34

purposes of measuring the charter school entity's adequate

35

yearly progress under the No Child Left Behind Act of 2001.

36

(8)  A charter school entity shall provide a minimum of

37

180 days of instruction or 900 hours per year of instruction

38

at the elementary level or 990 hours per year of instruction

39

at the secondary level. Attendance at a cyber charter school

40

shall satisfy requirements for compulsory attendance. Nothing

41

in this section shall preclude the use of computer and

42

satellite linkages for delivering instruction to students.

43

(b)  (Reserved).

44

Section 1716-C.  Board of trustees.

45

(a)  Public officials.--

46

(1)  All members of the board of trustees of a charter

47

school entity shall be public officials for the purposes of

48

65 Pa.C.S. Ch. 11 (relating to ethics standards and financial

49

disclosure) and shall file a statement of financial interests

50

for the preceding calendar year with the State Ethics

51

Commission and the authorizer no later than May 1 of each

- 45 -

 


1

year that members hold the position and of the year after a

2

member leaves the position.

3

(2)  All members of the board of trustees of a charter

4

school entity shall take the oath of office as required under

5

section 321 before entering upon the duties of their office.

6

(b)  Powers.--The board of trustees of a charter school

7

entity shall have the authority to decide matters related to the

8

operation of the school, including budgeting, curriculum and

9

operating procedures, subject to the school's charter. The board

10

shall have the authority to employ, discharge and contract with

11

necessary professional and nonprofessional employees, subject to

12

the school's charter and this article.

13

(c)  Restrictions.--The following shall apply to all members

14

of the board of trustees of a charter school entity:

15

(1)  No member of the local board of school directors of

16

a school entity shall serve on the board of trustees of a

17

charter school entity that is located in the member's

18

district.

19

(2)  For all charter school entities chartered after the

20

effective date of this section, an individual shall be

21

prohibited from serving as a voting member of the board of

22

trustees of a charter school entity if the individual or an

23

immediate family member receives compensation from or is

24

employed by or is a board member of an authorizer who

25

participates in the initial review, approval, oversight,

26

evaluation or renewal process of a charter school entity

27

chartered by that authorizer with the exception of all

28

current board members. An employee of the authorizer that

29

chartered the charter school entity may serve as a member of

30

the board of trustees without voting privileges.

31

(3)  No member of the board of trustees of a charter

32

school entity shall participate in the selection, award or

33

administration of any contract if the member has a conflict

34

of interest as defined in 65 Pa.C.S. § 1102 (relating to

35

definitions). Any member of the board of trustees who in the

36

discharge of his official duties would be required to vote on

37

a matter that would result in a conflict of interest shall

38

abstain from voting and follow the procedures required under

39

65 Pa.C.S. § 1103(j) (relating to restricted activities). A

40

member of the board of trustees who knowingly violates this

41

section commits a violation of 65 Pa.C.S. § 1103(a) and shall

42

be subject to the penalties imposed under the jurisdiction of

43

the State Ethics Commission. Any contract made in violation

44

of this paragraph shall be voidable by a court of competent

45

jurisdiction if the suit is commenced within 90 days of the

46

making of the contract.

47

(4)  A member of the board of trustees of a charter

48

school entity shall be automatically disqualified and

49

immediately removed from the board upon conviction for an

50

offense graded as a felony, an infamous crime, an offense

51

pertaining to fraud, theft or mismanagement of public funds,

- 46 -

 


1

any offense pertaining to his official capacity as a board

2

member or any crime involving moral turpitude.

3

(d)  Structure.--

4

(1)  The board of trustees of a charter school entity

5

shall have a minimum of five nonrelated voting members. If a

6

charter school entity has fewer than five nonrelated voting

7

members serving on its board on the effective date of this

8

section, the charter school entity shall, within 60 days of

9

the effective date of this section, appoint additional

10

members to the board to meet the minimum requirements of this

11

section.

12

(2)  Within one year of the effective date of this

13

section, at least one member of the board of trustees of a

14

charter school entity shall be a parent of a child currently

15

attending that charter school entity. The board member shall

16

be eligible to serve only so long as the child is attending

17

the charter school entity.

18

(e)  Organization of meetings of boards of trustees.--

19

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

20

trustees shall be a quorum. If less than a majority is

21

present at any meeting, no business shall be transacted at

22

the meeting.

23

(2)  The affirmative vote of a majority of all the voting

24

members of the board of trustees, duly recorded, shall be

25

required in order to take action on the subjects enumerated

26

under subsection (b).

27

(3)  All meetings shall be subject to 65 Pa.C.S. Ch. 7

28

(relating to open meetings).

29

(f)  Refusal or neglect of duty.--

30

(1)  If a member of the board of trustees refuses or

31

neglects to perform any duty imposed upon it under this

32

article, 25 individuals who are parents or guardians of

33

students of the charter school entity may present a petition

34

in writing of the refusal or neglect, verified by oath or

35

affirmation, to the court of common pleas in the county in

36

which the charter school or regional charter school building

37

is located or, in the case of a cyber charter school, to

38

Commonwealth Court. The petition shall set forth the facts

39

regarding the board member.

40

(2)  (i)  The court shall grant a rule upon the member of

41

the board of trustees, returnable in not less than ten

42

days nor more than 20 days from the date of issue, to

43

show cause why the member should not be removed from the

44

board. The member shall have at least five days' notice

45

of the granting of the rule.

46

(ii)  On or before the return day of the rule, the

47

member or members, individually or jointly, shall file in

48

writing their answer or answers to the petition, under

49

oath.

50

(iii)  If the facts set forth in the petition or any

51

material part of the petition, are denied, the court

- 47 -

 


1

shall conduct a hearing on the petition.

2

(iv)  If, after the hearing under subparagraph (iii)

3

or if no answer is timely filed denying the facts set

4

forth in the petition, the court finds that any duty

5

imposed on the members required under this article has

6

not been done or has been neglected by them, the court

7

shall have power to remove the member or members and

8

shall direct the authorizer to appoint other qualified

9

persons to serve for the duration of the removed members'

10

unexpired terms, subject to this article.

11

(v)  The court shall impose the cost of the

12

proceedings upon the petitioners, the members of the

13

board of trustees, the authorizer or may apportion the

14

cost among them.

15

(vi)  Any person removed as a member of the board of

16

trustees of a charter school entity under this subsection

17

shall not be eligible again as a board member for a

18

period of five years from the removal.

19

Section 1717-C.  Administrators.

20

(a)    Public employee.--A person who serves as an

21

administrator for a charter school entity shall be a public

22

employee for the purposes of 65 Pa.C.S. Ch. 11 (relating to

23

ethics standards and financial disclosure) and shall file a

24

statement of financial interests for the preceding calendar year

25

with the authorizer and the board of trustees no later than May

26

1 of each year that he holds the position and of the year after

27

he leaves the position.

28

(b)  Duties of chief administrator.--The chief administrator

29

shall exercise the duties designated by the board of trustees,

30

including the following:

31

(1)  In accordance with established board policy and

32

bylaws, upon action by the board of trustees to approve any

33

bill or account for payment of money and to prepare and sign

34

an order for the payment of money.

35

(2)  To comply with all reporting requirements of this

36

article.

37

(3)  Notwithstanding any other provision of this article

38

and other law, to serve as custodian of all records,

39

commissions and property of the charter school entity.

40

(4)  To perform other duties pertaining to the business

41

of the charter school entity as required under this article.

42

(c)  Restrictions.--

43

(1)  A person who serves as an administrator for a

44

charter school entity shall not receive compensation from

45

another charter school entity or from an educational

46

management service provider except if the following apply:

47

(i)  The administrator has submitted a sworn

48

statement to each charter school entity board of

49

trustees. The sworn statement shall detail the work for

50

the other entity and include the projected number of

51

hours, rate of compensation and projected duration.

- 48 -

 


1

(ii)  The board of trustees has reviewed a statement

2

under subparagraph (i) and has agreed to grant permission

3

to the administrator by resolution.

4

(2)  A copy of the sworn statement under paragraph (1)(i)

5

and the resolution by the board of trustees approving the

6

request shall be kept on file with the charter school entity

7

and the authorizer.

8

(3)  No administrator of a charter school entity or

9

immediate family member shall be permitted to serve as a

10

voting member of the board of trustees of their charter

11

school entity.

12

(4)  No administrator of a charter school entity shall

13

participate in the selection, award or administration of a

14

contract if he has a conflict of interest as that term is

15

defined in 65 Pa.C.S. § 1102 (relating to definitions). An

16

administrator who knowingly violates this subsection commits

17

a violation of 65 Pa.C.S. § 1103(a) (relating to restricted

18

activities) and shall be subject to the penalties imposed

19

under the jurisdiction of the State Ethics Commission. Any

20

contract made in violation of this subsection shall be

21

voidable by the board of trustees of the charter school

22

entity.

23

(5)  An administrator shall be immediately dismissed upon

24

conviction for an offense graded as a felony, an infamous

25

crime, an offense pertaining to fraud, theft or mismanagement

26

of public funds or any crime involving moral turpitude.

27

Section 1718-C.  Establishment.

28

(a)  Entities who may establish.--

29

(1)  A charter school entity may be established by any of

30

the following:

31

(i)  An individual.

32

(ii)  One or more teachers who will teach at the

33

proposed school.

34

(iii)  Parents or guardians of students who will

35

enroll at the school.

36

(iv)  A nonsectarian college, university or museum

37

located in this Commonwealth.

38

(v)  A nonsectarian corporation not-for-profit, as

39

defined in 15 Pa.C.S. (relating to corporations and

40

unincorporated associations).

41

(vi)  A corporation, association or partnership.

42

(vii)  A combination of any of the entities listed

43

under this subsection.

44

(2)  No charter school entity shall be established or

45

funded by and no charter shall be granted to any sectarian

46

school, institution or other entity. No funds allocated or

47

disbursed under this article shall be used to directly

48

support instruction under section 1327.1.

49

(3)  A charter school must be organized as a public,

50

nonprofit corporation. A charter may not be granted to any

51

for-profit entity.

- 49 -

 


1

(b)  Establishment by conversion.--

2

(1)  A charter school may be established by converting an

3

existing public school building or a portion of an existing

4

public school building. The conversion of an existing public

5

school building or portion of an existing public school

6

building to a charter school may be initiated by the school

7

district where the existing public school is located or by

8

the parent petition process under paragraph (3). There shall

9

be no limit on the number of public schools in a school

10

district that can be converted to a charter school.

11

(2)  The local board of school directors, the special

12

board of control or the School Reform Commission that desires

13

to convert an existing public school building or a portion of

14

an existing public school building to a charter school may

15

designate and approve the existing public school building or

16

portion of an existing public school building that it seeks

17

to convert to a charter school by accepting applications in

18

accordance with paragraph (4).

19

(3)  (i)  For the purposes of improving academic

20

achievement or student safety, the parents or legal

21

guardians of at least 51% of students attending an

22

existing public school building may petition the local

23

board of school directors, the special board of control

24

or the School Reform Commission to convert the existing

25

public school building or a portion of the existing

26

public school building to a charter school.

27

(ii)  The commission shall develop and issue a

28

standard petition form that shall be used by all parents

29

or legal guardians seeking conversion.

30

(iii)  Upon certified receipt of the petition and

31

verification of the signatures, the local board of school

32

directors, the special board of control established under

33

section 692 or the School Reform Commission shall convert

34

the existing public school building or a portion of an

35

existing public school building to a charter school

36

building by accepting applications in accordance with

37

paragraph (4). Notwithstanding any other provision of

38

law, the local board of school directors shall not be

39

required to negotiate or agree to any provision that

40

prevents, impedes or prohibits a school district's

41

ability to convert to a charter school under this article

42

after the effective date of this section. A term in a

43

collective bargaining agreement in place on the effective

44

date of this section that operates to prevent, impede or

45

prohibit a school district from converting to a charter

46

school under this article shall not continue past the

47

expiration date of the collective bargaining agreement.

48

(4)  (i)  Applications for the charter school shall be

49

solicited through a competitive request for proposal

50

process initiated by the local board of school directors,

51

the special board of control or the School Reform

- 50 -

 


1

Commission. The content and dissemination of the request

2

for proposal must be consistent with the purpose and the

3

requirements of this article. The local board of school

4

directors, the special board of control or the School

5

Reform Commission may accept applications by any

6

individual or entity authorized to establish a charter

7

school under subsection (a) to operate the converted

8

charter school.

9

(ii)  The local board of directors, the special board

10

of control or the School Reform Commission shall evaluate

11

each submitted proposal in a public manner. Once

12

selected, the local board of school directors, the

13

special board or the School Reform Commission shall do

14

all of the following:

15

(A)  Explain how and why the proposal was

16

selected.

17

(B)  Provide evidence, if available, of the

18

provider's success in serving student populations

19

similar to the targeted population, including

20

demonstrated academic achievement as well as

21

successful management of nonacademic school functions

22

if applicable.

23

(5)  The authorizer may not serve as the board of

24

trustees of an existing school which is converted to a

25

charter school under this subsection.

26

(6)  This article shall apply to an existing public

27

school building or a portion of an existing public school

28

building converted to a charter school.

29

(7)  In the case of an existing school being converted to

30

a charter school, the local board of school directors, the

31

special board of control or the School Reform Commission

32

shall establish the alternative arrangements for current

33

students who choose not to attend the charter school.

34

(c)  Establishment of a cyber charter school by a local board

35

of school directors or intermediate unit.--A cyber charter

36

school may be established by a local board of school directors

37

or an intermediate unit if they follow the procedures and

38

requirements of this article. Nothing under this article shall

39

preclude a school district or an intermediate unit from offering

40

instruction via the Internet or other electronic means, except

41

that the instruction shall not be recognized as a cyber charter

42

school under this article. A cyber charter school must be

43

organized as a public, nonprofit corporation. A charter may not

44

be granted to any for-profit entity.

45

(d)  Authorizers.--

46

(1)  The following entities shall be authorizers of

47

charter schools and regional charter schools:

48

(i)  The commission.

49

(ii)  A local board of school directors.

50

(2)  The commission shall be the authorizer of cyber

51

charter schools.

- 51 -

 


1

(e)  Authorizer powers and duties.--

2

(1)  The commission shall have the following powers and

3

duties:

4

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

5

creation of a charter school entity, obtain input from

6

interested persons or entities and hold hearings

7

regarding applications.

8

(ii)  Execute charter contracts with an approved

9

charter school entity applicant.

10

(iii)  Monitor and evaluate the operation of each

11

charter school entity authorized by the commission on an

12

annual basis in order to determine whether the charter

13

school entity is in compliance with the terms of its

14

charter and all applicable laws and regulations.

15

(iv)  Renew, revoke or deny renewal of a charter

16

school entity's charter under section 1723-C.

17

(2)  The local board of school directors shall have the

18

following powers and duties:

19

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

20

creation of a charter school or regional charter school,

21

obtain input from interested persons or entities and hold

22

hearings regarding applications.

23

(ii)  Execute charter contracts with an approved

24

charter school or regional charter school applicant.

25

(iii)  Monitor and evaluate the operation of each

26

charter school or regional charter school on an annual

27

basis in order to determine whether the charter school or

28

regional charter school is in compliance with the terms

29

of its charter and all applicable laws and regulations.

30

(iv)  Renew, revoke or deny renewal of a charter

31

school or regional charter school's charter under section

32

1723-C.

33

(v)  Assess and receive administrative fees as

34

allowed under section 1705-C.

35

(f)  Special conditions.--Authorizers may not exercise the

36

power and duties of the department as set forth under Federal or

37

State laws or regulations.

38

(g)  Initial application procedure.--

39

(1)  An application to establish a charter school entity

40

shall be submitted to a authorizer under subsection (d) by

41

October 1 of the school year preceding the school year in

42

which the charter school entity proposes to commence

43

operation.

44

(2)  (i)  Within 45 days of receipt of an application,

45

the authorizer shall hold at least one public hearing on

46

the charter application under section 1720-C and 65

47

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

48

shall give the applicant at least 48 hours written or

49

electronic notice of the public hearing.

50

(ii)  A school district directly impacted by the

51

potential charter school entity may provide testimony at

- 52 -

 


1

the public hearing, except that testimony with regard to

2

the economic impact of an applicant on a school district

3

may not be the sole basis for denial of the application.

4

(iii)  At least 45 days must transpire between the

5

first public hearing and the final decision of the

6

authorizer on the charter application, during which time

7

public comment shall be received and made part of the

8

record. Nothing in this article shall prohibit a school

9

district or any other interested party from providing

10

public comment.

11

(3)  An application submitted under this article shall be

12

evaluated by the authorizer based on established criteria,

13

including the following:

14

(i)  The demonstrated, sustainable support for the

15

charter school plan by teachers, parents, other community

16

members and students, including comments received at the

17

public hearing held under subsection (g)(2).

18

(ii)  The capability of the applicant, in terms of

19

support and planning, to provide comprehensive learning

20

experiences to students pursuant to the adopted charter.

21

(4)  Not later than 75 days after the first public

22

hearing on the application, the authorizer that received the

23

application shall grant or deny the application.

24

(5)  An application shall be deemed approved by the

25

authorizer upon affirmative vote by a majority of all members

26

of the authorizer. Formal action approving or denying the

27

application shall be taken at a public meeting, with notice

28

or consideration of the application given by the authorizer

29

under 65 Pa.C.S. Ch. 7. The authorizer shall give the

30

applicant at least 48 hours written or electronic notice of

31

the meeting at which the authorizer will be considering the

32

application.

33

(6)  Written notice of the action of the authorizer shall

34

be sent to the applicant, the department and the commission.

35

If the application is denied, the reasons for the denial,

36

including a description of deficiencies in the application,

37

shall be clearly stated in the notice to the applicant. The

38

written notice shall be issued by the authorizer within 30

39

days of the denial of the application.

40

(7)  At the option of the applicant, a denied application

41

may be revised and resubmitted to the authorizer that denied

42

the application. If an application is revised and resubmitted

43

to the authorizer that denied the application, the authorizer

44

shall follow the procedures listed under paragraphs (2), (3),

45

(4), (5) and (6).

46

(8)  The decision of the authorizer to deny a resubmitted

47

application after following the procedures under paragraph

48

(7) may be appealed to the appeal board as provided under

49

section 1724-C. Failure by the authorizer to hold a public

50

hearing and to grant or deny the application for a charter

51

school within the time periods specified under paragraphs

- 53 -

 


1

(2), (4), (5) and (6) shall permit the applicant for a

2

charter to file its application with the appeal board as

3

provided for under section 1724-C.

4

Section 1719-C.  Regional charter school.

5

(a)  Establishment.--

6

(1)  A regional charter school may be established by any

7

individual or entity allowed under section 1718-C (a).

8

(2)  A regional charter school may be established by

9

creating a new school or by converting an existing public

10

school building or a portion of an existing public school

11

building. Conversion of an existing public school building or

12

a portion of an existing public school building to a regional

13

charter school shall be accomplished in accordance with

14

section 1718-C(b).

15

(3)  No regional charter school may be established or

16

funded by and no charter shall be granted to any sectarian

17

school, institution or other entity.

18

(4)  A regional charter school must be organized as a

19

public, nonprofit corporation. A charter may not be granted

20

to any for-profit entity.

21

(b)  Application.--The boards of school directors of one or

22

more school districts or the governing board of any combination

23

of one or more authorizers, may act jointly to receive and

24

consider an application for a regional charter school. Any

25

action to approve an application for a charter or to sign a

26

written charter of an applicant shall require an affirmative

27

vote of a majority of all the directors of each of the school

28

districts or a majority of the members of the governing board of

29

each of the initial approving authorities involved.

30

(c)  Special conditions.--The provisions of this article

31

relating to charter schools and the powers and duties of

32

authorizers and the commission shall apply to regional charter

33

schools, except as provided under this article.

34

Section 1720-C.  Hearings.

35

All hearings held by authorizers under this article shall be

36

conducted as follows:

37

(1)  If the hearing is conducted by a local board of

38

school directors, the hearing shall be conducted in

39

accordance with 2 Pa.C.S. Ch. 5 Subch. B (relating to

40

practice and procedure of local agencies).

41

(2)  If the hearing is conducted by the commission, the

42

hearing shall be conducted in accordance with 2 Pa.C.S. Ch. 5

43

Subch. A (relating to practice and procedure of Commonwealth

44

agencies).

45

Section 1721-C.  Application.

46

(a)  Contents and form.--The commission shall develop and

47

issue a standard application form that shall be used by all

48

applicants to establish a charter school entity. The application

49

to establish a charter school entity shall include all of the

50

following information:

51

(1)  The identification of the charter applicant.

- 54 -

 


1

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

2

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

3

(4)  An organizational chart clearly presenting the

4

proposed governance structure of the school, including lines

5

of authority and reporting between the board of trustees,

6

administrators, staff and any educational management service

7

provider that will play a role in providing management

8

services to the charter school entity.

9

(5)  A clear description of the roles and

10

responsibilities for the board of trustees, administrators

11

and any other entities, including a charter school

12

foundation, shown in the organizational chart.

13

(6)  A clear description and method for the appointment

14

or election of members of the board of trustees.

15

(7)  Standards for board performance, including

16

compliance with all applicable laws, regulations and terms of

17

the charter.

18

(8)  If the charter school entity intends to contract

19

with an educational management service provider for services,

20

all of the following:

21

(i)  Evidence of the education management service

22

provider's record in serving student populations,

23

including demonstrated academic achievement and

24

demonstrated management of nonacademic school functions,

25

including proficiency with public school-based

26

accounting, if applicable.

27

(ii)  A term sheet setting forth all of the

28

following:

29

(A)  The officers, chief administrator and

30

administrators of the education management service

31

provider.

32

(B)  The proposed duration of the service

33

contract.

34

(C)  Roles and responsibilities of the governing

35

board, the school staff and the educational

36

management service provider.

37

(D)  The scope of services, personnel and

38

resources to be provided by the educational

39

management service provider.

40

(E)  Performance evaluation measures and time

41

lines.

42

(F)  The compensation structure, including clear

43

identification of all fees to be paid to the

44

educational management service provider.

45

(G)  Methods of contract oversight and

46

enforcement.

47

(H)  Investment disclosure or the advance of

48

moneys by the educational management service provider

49

on behalf of the charter school entity.

50

(I)  Conditions for renewal and termination of

51

the contract.

- 55 -

 


1

(iii)  Disclosure and explanation of any existing or

2

potential conflicts of interest between the members of

3

the board of trustees and the proposed educational

4

management service provider or any affiliated business

5

entities, including a charter school foundation qualified

6

as a support organization under the Internal Revenue Code

7

of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.).

8

(9)  The mission and educational goals of the charter

9

school entity, the curriculum to be offered and the methods

10

of assessing whether students are meeting educational goals.

11

(10)  The admission policy and criteria for evaluating

12

the admission of students, which shall comply with section

13

1726-C.

14

(11)  Procedures which will be used regarding the

15

suspension or expulsion of pupils, which shall comply with

16

section 1318.

17

(12)  Information on the manner in which community groups

18

will be involved in the charter school planning process.

19

(13)  The financial plan for the charter school entity

20

and the provisions which will be made for auditing the school

21

under section 437, including the role of any charter school

22

foundation.

23

(14)  Procedures which shall be established to review

24

complaints of parents regarding the operation of the charter

25

school entity.

26

(15)  A description and address of the physical facility,

27

if already determined, in which the charter school entity

28

will be located, the ownership of the physical facility and

29

any lease arrangements.

30

(16)  Information on the proposed school calendar for the

31

charter school entity including the length of the school day

32

and school year, consistent with section 1502.

33

(17)  The proposed faculty, if already determined and a

34

professional development and continuing education plan for

35

the faculty and professional staff of a charter school

36

entity.

37

(18)  Whether any agreements have been entered into or

38

plans developed with the local school district regarding

39

participation of the charter school entity students in

40

extracurricular activities within the school district.

41

Notwithstanding any other provision of law, no school

42

district of residence shall prohibit a student of a charter

43

school entity from participating in any extracurricular

44

activity of that school district of residence if the student

45

is able to fulfill all of the requirements of participation

46

in the activity and the charter school entity does not

47

provide the same extracurricular activity.

48

(19)  A report of criminal history record under section

49

111 for all board members, employees and volunteers

50

identified in the application who shall have direct contact

51

with students and a plan for satisfying the proper criminal

- 56 -

 


1

history record clearances required for all other staff.

2

(20)  An official clearance statement regarding child

3

injury or abuse from the Department of Public Welfare as

4

required under 23 Pa.C.S. Ch. 63 Subch. C.2 (relating to

5

background checks for employment in schools) for all board

6

members, employees and volunteers identified in the

7

application who shall have direct contact with students and a

8

plan for satisfying the proper official clearance statement

9

regarding child injury or abuse required for all other staff.

10

(21)  How the charter school entity will provide adequate

11

liability and other appropriate insurance for the charter

12

school, its employees and the board of trustees of the

13

charter school.

14

(22)  Policies regarding truancy, absences and withdrawal

15

of students, including the manner in which the charter school

16

or regional charter school will monitor attendance consistent

17

with section 1715-C(a)(8). 

18

(23)  How the charter school will meet the standards

19

included in the performance matrix developed by the

20

commission under section 1704-C(h)(12).

21

(24)  An indication on whether or not the charter school

22

entity will seek accreditation by a body recognized by the

23

commission under section 1704-C(h)(13).

24

(b)  Cyber charter school application.--The commission shall

25

develop a standard application form for cyber charter school

26

applicants. In addition to the requirements of subsection (a),

27

an application to establish a cyber charter school shall also

28

include the following:

29

(1)  An explanation of the amount of online time required

30

for elementary and secondary students.

31

(2)  The manner in which teachers will deliver

32

instruction, assess academic progress and communicate with

33

students to provide assistance.

34

(3)  A specific explanation of any cooperative learning

35

opportunities, meetings with students, parents and guardians,

36

field trips or study sessions.

37

(4)  The technology, including types of hardware and

38

software, equipment and other materials which will be

39

provided by the cyber charter school to the student.

40

(5)  A description of how the cyber charter school will

41

define and monitor a student's school day, including the

42

delineation of online and offline time.

43

(6)  A description of commercially prepared standardized

44

achievement tests that will be used by the cyber charter

45

school in addition to the Pennsylvania System of School

46

Assessment test, including the grade levels that will be

47

tested and how the data collected from the tests will be used

48

to improve instruction.

49

(7)  The technical support that will be available to

50

students and parents or guardians.

51

(8)  The privacy and security measures to ensure the

- 57 -

 


1

confidentiality of data gathered online.

2

(9)  The methods to be used to ensure the authenticity of

3

student work and adequate proctoring of examinations.

4

(10)  The provision of education and related services to

5

students with disabilities, including evaluation and the

6

development and revision of individualized educational

7

programs.

8

(11)  Policies regarding truancy, absences and withdrawal

9

of students, including the manner in which the cyber charter

10

school will monitor attendance consistent with commission

11

policies, procedures and regulations established under

12

section 1704-C(h)(14) and as required under section

13

1715-C(a).

14

(12)  The types and frequency of communication between

15

the cyber charter school and the student and the manner in

16

which the cyber charter school will communicate with parents

17

and guardians.

18

(13)  The addresses and ownership of all facilities and

19

offices of the cyber charter school and any lease

20

arrangements.

21

(c)  Additional terms.--An authorizer may not impose

22

additional terms, develop its own application or require

23

additional information in contradiction of the standard

24

application form required under subsection (a).

25

(d)  Limitation.--

26

(1)  A charter school applicant shall be prohibited from

27

submitting an application for a charter school at a single

28

location to more than one authorizer at one time. Nothing in

29

this section shall prohibit a regional charter school from

30

applying to multiple authorizers as provided for under

31

section 1719-C.

32

(2)  An applicant for a charter school that fails to

33

comply with this section may be subject to a denial of the

34

charter application or revocation of an approved charter.

35

(3)  Nothing under this subsection shall prohibit an

36

applicant for a charter school at a single location from

37

submitting the same or a similar application to another

38

authorizer after the completion of the application process

39

required under section 1718-C, upon formal withdrawal of

40

their application with the authorizer during the application

41

process or the completion of the appeal process under section

42

1724-C.

43

Section 1722-C.  Charter.

44

(a)  Development.--Upon approval of an application under

45

section 1718-C, a written charter shall be developed which shall

46

contain the provisions of the application required under section

47

1721-C. The charter shall be signed by the authorizer and the

48

board of trustees of the charter school entity. The written

49

charter, when duly signed by the authorizer and the school's

50

board of trustees, shall act as legal authorization for the

51

establishment and operation of a charter school entity and shall

- 58 -

 


1

be legally binding on both the board of trustees and on the

2

authorizer. A charter may be granted only for a school organized

3

as a public, nonprofit corporation.

4

(b)  Amendments.--A charter school entity shall have the

5

ability to request amendments to its approved written charter by

6

filing a written document describing the requested amendment to

7

the authorizer. Within 30 days of its receipt of the request for

8

an amendment, the authorizer shall hold a public hearing on the

9

requested amendment under section 1720-C and 65 Pa.C.S. Ch. 7

10

(relating to open meetings). Within 30 days after the hearing,

11

the authorizer must grant or deny the requested amendment.

12

Failure by the authorizer to hold a public hearing and to grant

13

or deny the amendments within the time period specified shall be

14

deemed an approval. An applicant for an amendment shall have the

15

right to appeal the denial of a requested amendment to the

16

appeal board provided for under section 1724-C.

17

Section 1723-C.  Renewal, nonrenewal and termination.

18

(a)  Terms.--An initial written charter shall be valid for a

19

period of five years and shall be renewed for a period of ten

20

years upon reauthorization by an authorizer.

21

(b)  Renewal process.--A charter school entity seeking

22

renewal shall send an intent to renew letter to the original

23

authorizer no later than October 1 of the final school year of

24

the charter school's current charter, except that an intent to

25

renew letter for a charter that was transferred or consolidated

26

under section 1734-C must be submitted to the commission. The

27

authorizer shall conduct a comprehensive review of the annual

28

reports and assessments required under section 1731-C and, if

29

appropriate, renew the charter for a period of ten years. If an

30

authorizer fails to act upon the expiration of initial or

31

renewed charter, the charter shall be deemed to be renewed for a

32

period of ten years.

33

(c)  Authorizer review.--

34

(1)  During the term of the charter or at the end of the

35

term of the charter, the authorizer may choose to revoke or

36

not to renew the charter based on any of the following:

37

(i)  One or more material violations of any of the

38

conditions, standards or procedures contained in the

39

written charter signed under section 1722-C.

40

(ii)  Failure to meet the requirements for student

41

performance or failure to meet any performance standard

42

set forth in the written charter signed under section

43

1722-C.

44

(iii)  Failure to meet generally accepted standards

45

of fiscal management or audit requirements.

46

(iv)  Failure to maintain the financial ability to

47

continue as an ongoing concern according to generally

48

accepted accounting principles.

49

(v)  Violation of any of the provisions of this

50

article.

51

(vi)  Violation of any provision of law from which

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1

the charter school entity has not been exempted,

2

including Federal laws and regulations governing children

3

with disabilities.

4

(vii)  Failure to satisfactorily meet the performance

5

standards set forth in the performance matrix developed

6

by the commission under section 1704-C(h)(12).

7

(2)  If the health or safety of the school's pupils,

8

staff or both is at serious risk, the authorizer may take

9

immediate action to revoke a charter.

10

(d)  Removal of board member or administrator.--If, after a

11

hearing under this section, an authorizer proves by a

12

preponderance of the evidence that an administrator or board

13

member has violated this article, the terms and conditions of

14

the charter or any other law, the authorizer shall have the

15

authority to require the charter school entity to replace the

16

administrator or board member in order to obtain renewal of the

17

charter. The authorizer may refer its findings to the district

18

attorney with jurisdiction or to the Office of Attorney General

19

for prosecution if the authorizer discovers or receives

20

information about possible violations of law by any person

21

affiliated with or employed by a charter school entity.

22

(e)  Notice of revocation or nonrenewal.--Any notice of

23

revocation or nonrenewal of a charter shall state the grounds

24

for the action with reasonable specificity and give reasonable

25

notice to the board of trustees of the charter school entity of

26

the date on which a public hearing concerning the revocation or

27

nonrenewal will be held. The authorizer shall conduct the

28

hearing under section 1720-C and present evidence in support of

29

the grounds for revocation or nonrenewal stated in its notice

30

and give the charter school entity reasonable opportunity to

31

offer testimony and amendments under section 1722-C(b) before

32

taking final action. Formal action revoking or not renewing a

33

charter shall be taken by the authorizer at a public meeting

34

under section 1720-C and 65 Pa.C.S. Ch. 7 (relating to open

35

meetings) and after the public has had 30 days to provide

36

comments to the members of the commission or the local board of

37

school directors or the governing board of an institution of

38

higher education.

39

(f)  Dissolution.--

40

(1)  If a charter is revoked, not renewed, forfeited,

41

surrendered or otherwise ceases to operate, the charter

42

school entity shall be dissolved. The charter school entity

43

shall provide its authorizer with a resolution passed by the

44

board of trustees identifying the name, address, e-mail

45

address, fax number and telephone number of the person who

46

has been authorized to proceed with the dissolution of the

47

charter school entity. The authorized person shall be

48

responsible for marshaling the assets of the school,

49

disposing of the school's liabilities and obligations and

50

ensuring that student records are forwarded to each student's

51

school district of residence as required under subsection

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1

(g).

2

(2)  After the disposition of any liabilities and

3

obligations of the charter school or regional charter school,

4

the person authorized under paragraph (1) shall distribute

5

any remaining assets of the school, both real and personal,

6

on a proportional basis to the school entities with students

7

enrolled in the charter school or regional charter school for

8

the last full or partial school year of the charter school or

9

regional charter school.

10

(3)  After the disposition of any liabilities and

11

obligations of a cyber charter school, the person authorized

12

under paragraph (1) shall provide any remaining assets of the

13

cyber charter school to the department for distribution to

14

the school districts in which the students enrolled in cyber

15

charter school reside at the time of dissolution.

16

(4)  School entities, authorizers or the Commonwealth

17

shall not be liable for any outstanding liabilities or

18

obligations of the charter school entity.

19

(g)  Student application.--If a charter is revoked or is not

20

renewed, a student who attended the charter school entity shall

21

be eligible to enroll in another public school in the student's

22

school district of residence. Normal application deadlines shall

23

not apply to the enrollment. All student records maintained by

24

the charter school entity shall be forwarded to the student's

25

school district of residence.

26

Section 1724-C.  Appeal process.

27

(a)  Establishment.--The State Charter School Appeal Board is

28

established and shall consist of the Secretary of Education and

29

the following members who shall be appointed by the Governor by

30

and with the consent of a majority of all the members of the

31

Senate:

32

(1)  A parent of a school-aged child enrolled at a

33

charter school entity.

34

(2)  A school board member.

35

(3)  A certified teacher actively employed in a public

36

school.

37

(4)  A faculty member or administrative employee of an

38

institution of higher education.

39

(5)  A member of the business community.

40

(6)  A member of the State board.

41

(7)  An administrator of a charter school entity.

42

(8)  A member of the board of trustees of a charter

43

school entity.

44

(b)  Chairman.--The Governor shall select the chairman of the

45

appeal board, who shall serve at the pleasure of the Governor.

46

(c)  Terms.--The term of office of members of the appeal

47

board, other than the secretary and the parent member appointed

48

under subsection (a)(1), shall be for a period of four years or

49

until a successor is appointed and qualified, except that, of

50

the initial appointees, the Governor shall designate two

51

members to serve terms of two years, two members to serve terms

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1

of three years and two members to serve terms of four years. A

2

parent member appointed under subsection (a)(1) shall serve a

3

term of four years as long as the member's child remains

4

enrolled in the charter school entity. Any appointment to fill a

5

vacancy shall be for the period of the unexpired term or until a

6

successor is appointed and qualified.

7

(d)  Operation.--The appeal board shall meet as needed to

8

fulfill the purposes provided under this section. A majority of

9

the members of the appeal board shall constitute a quorum, and a

10

majority of the members of the appeal board shall have authority

11

to act upon any matter properly before the appeal board.

12

Meetings of the appeal board shall be conducted under 65 Pa.C.S.

13

Ch. 7 (relating to open meetings). Documents of the appeal board

14

shall be subject to the Right-to-Know Law. The appeal board is

15

authorized to establish rules for its operation.

16

(e)  Compensation.--The members shall receive no payment for

17

their services. Members who are not employees of State

18

government shall be reimbursed for expenses incurred in the

19

course of their official duties from funds appropriated for the

20

general government operations of the department.

21

(f)  Assistance.--The department shall provide assistance and

22

staffing for the appeal board. The Office of General Counsel

23

shall provide legal advice and assistance as the appeal board

24

may require.

25

(g)  Review by appeal board.--The following shall apply:

26

(1)  The appeal board shall have the exclusive review of

27

an appeal by a charter school entity applicant or by the

28

board of trustees of an existing charter school entity of a

29

decision made by an authorizer to:

30

(i)  Deny a charter under section 1718-C.

31

(ii)  Deny amendments to a charter under section

32

1722-C.

33

(iii)  Revoke or refuse to renew a charter under

34

section 1723-C.

35

(2)  In an appeal under this subsection, the decision

36

made by the authorizer shall be reviewed by the appeal board.

37

The appeal board shall accept all appeals within 30 days of

38

receipt of the appeal. The appeal board shall give due

39

consideration to the findings of the authorizer and

40

specifically articulate its reasons for agreeing or

41

disagreeing with those findings in its written decision. The

42

appeal board shall have discretion to allow the authorizer

43

and the charter school entity applicant to supplement the

44

record if the supplemental information was previously

45

unavailable.

46

(3)  Not later than 30 days after the date of notice of

47

acceptance of the appeal, the appeal board shall meet to

48

officially review the certified record.

49

(4)  Not later than 60 days after the review conducted

50

under paragraph (2), the appeal board shall issue a written

51

decision affirming or denying the appeal. If the appeal board

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1

has affirmed the decision of the authorizer, notice shall be

2

provided to both parties.

3

(5)  In the case of a review by the appeal board of an

4

initial application denied by an authorizer, the decision of

5

the appeal board to reverse the decision of the authorizer

6

shall serve as a requirement for the authorizer to grant the

7

application and sign the written charter of the charter

8

school under section 1722-C. If the authorizer fails to grant

9

the application and sign the charter within ten days of

10

notice of the reversal of the decision of the authorizer, the

11

charter shall be deemed to be approved and shall be signed by

12

the chairman of the appeal board.

13

(6)  In the case of a review by the appeal board of an

14

amendment to a written charter denied by an authorizer, the

15

decision of the appeal board to reverse the decision of the

16

authorizer shall serve as a requirement for the authorizer to

17

grant the amendment and sign the revised charter of the

18

charter school entity under section 1722-C. If the authorizer

19

fails to grant the amendment and sign the revised charter

20

within ten days of notice of the reversal of the decision of

21

the authorizer, the charter shall be deemed to be approved

22

and shall be signed by the chairman of the appeal board.

23

(7)  (i)  In the case of a review by the appeal board of

24

an application that is revoked or not renewed, the appeal

25

board shall review the record and shall have the

26

discretion to supplement the record if the supplemental

27

information was previously unavailable.

28

(ii)  The appeal board may consider the charter

29

school entity plan, annual reports, student performance

30

and employee and community support for the charter school

31

entity in addition to the record.

32

(iii)  The appeal board shall give due consideration

33

to the findings of the authorizer and specifically

34

articulate its reasons for agreeing or disagreeing with

35

those findings in its written decision.

36

(iv)  If the appeal board determines that the charter

37

should not be revoked or should be renewed, the appeal

38

board shall order the authorizer to rescind its

39

revocation or nonrenewal decision.

40

(v)  If the authorizer fails to rescind its

41

revocation or nonrenewal decision and sign the notice

42

within ten days of notice of the reversal of the decision

43

of the authorizer, the renewed charter shall be deemed to

44

be approved and shall be signed by the chairman of the

45

appeal board.

46

(8)  Decisions of the appeal board shall be subject to

47

appellate review by Commonwealth Court.

48

(h)  Effect of appeal.--The charter shall remain in effect

49

until final disposition by the court.

50

Section 1725-C.  Facilities.

51

(a)  Location.--A charter school entity may be located in an

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1

existing public school building, in a part of an existing public

2

school building, in space provided on a privately owned site, in

3

a public building or in any other suitable location.

4

(b)  Report.--The following shall apply:

5

(1)  All school districts must submit an annual report of

6

the unused facilities that are owned by the school district

7

that may be suitable for the operation of a charter school

8

entity to the department no later than July 1 of each year.

9

(2)  The department, in conjunction with the Department

10

of General Services, shall compile a list of unused

11

facilities, including unused facilities owned by the

12

Commonwealth, and publish it on its Internet website by

13

September 1 of each year. The department shall make the list

14

of unused facilities available to existing charter school

15

entities and applicants. The list shall include the address

16

of each building, the name of the owner of the building and

17

short description of the building.

18

(3)  Each school district shall make any unused facility

19

available for lease or for sale to charter school entities

20

operating within that school district. The terms of the use

21

of the facility by the charter school entity shall be subject

22

to negotiation between the school district and the school and

23

shall be memorialized as a separate agreement between all

24

parties. The agreement shall outline which party is

25

responsible for actual costs related to the facility,

26

including maintenance, insurance and other factors. No school

27

district may charge a charter school entity greater than fair

28

market value price for the sale, lease or rental of the

29

existing facility or for property formerly used by the school

30

district.

31

(4)  A charter school entity allowed to use a facility

32

under an agreement under this subsection may not sell or

33

dispose of any interest in the property without written

34

permission of the school district.

35

(5)  A school district shall give a charter school entity

36

using a school district's unused facility at least 180 days'

37

notice before selling, leasing or otherwise disposing of the

38

unused facility to a third party. A school district which

39

elects to sell an unused facility to a charter school entity

40

shall be exempt from section 707(1), (2) and (3).

41

(c)  Exemption from regulations.--Except for public school

42

facility regulations pertaining to health or safety of students,

43

a charter school entity facility shall be exempt from public

44

school facility regulations.

45

(d)  Multiple locations.--Notwithstanding any other provision

46

of this article, an authorizer, in its discretion, may permit a

47

charter school entity to operate at more than one location.

48

(e)  Exemption from taxation.--The following shall apply:

49

(1)  Notwithstanding section 204 of the act of May 22,

50

1933 (P.L.853, No.155), known as The General County

51

Assessment Law, all school property, real and personal, owned

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1

by a charter school entity, an associated nonprofit

2

foundation or owned by a nonprofit corporation or associated

3

nonprofit corporation or nonprofit foundation and leased to a

4

charter school entity or associated nonprofit foundation or

5

associated nonprofit corporation at or below fair market

6

value, that is occupied and used by any charter school entity

7

for public school, recreation or any other purposes provided

8

for under this article shall be made exempt from every type

9

of State, county, city, borough, township or other real

10

estate tax, including payments in lieu of taxes established

11

through agreement with the Commonwealth or any local taxing

12

authority, as well as from all costs or expenses for paving,

13

curbing, sidewalks, sewers or other municipal improvements,

14

except that a charter school entity or owner of property

15

leased to a charter school entity may make a municipal

16

improvement in a street on which its school property abuts or

17

may contribute a sum toward the cost of the improvement.

18

(2)  Any agreement entered into by a charter school

19

entity or associated nonprofit foundation or associated

20

nonprofit corporation with the Commonwealth or a local taxing

21

authority for payments in lieu of taxes prior to December 31,

22

2009, shall be null and void.

23

(3)  This subsection shall apply retroactively to all

24

charter school entities and associated nonprofit foundations

25

and associated nonprofit corporations that filed an appeal

26

from an assessment, as provided under Article V of The

27

General County Assessment Law prior to the effective date of

28

this subsection and until the time as a final order has been

29

entered after due process of law.

30

(f)  Alcoholic beverages.--The following shall apply:

31

(1)  Alcoholic beverages shall not be available for

32

consumption, purchase or sale in any charter school entity

33

facility.

34

(2)  If the authorizer reasonably believes that alcoholic

35

beverages have been made available for consumption, purchase

36

or sale in any charter school entity facility, the authorizer

37

shall notify the department, which shall order the following

38

forfeitures against the charter school entity:

39

(i)  $1,000 for the first violation.

40

(ii)  $5,000 for the second or subsequent violation.

41

(3)  The charter school entity may appeal the order of

42

the secretary under 2 Pa.C.S. Chs. 5 (relating to practice

43

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

44

Section 1726-C.  Enrollment and notification.

45

(a)  Enrollment.--The following shall apply:

46

(1)  Enrollment of students in a charter school entity

47

shall not be subject to a cap or otherwise limited by any

48

past or future action of a local board of school directors, a

49

special board of control, a School Reform Commission or any

50

other governing authority of an authorizer.

51

(2)  This subsection shall apply to a charter school

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1

entity regardless of whether the charter was approved prior

2

to or is approved subsequent to the effective date of this

3

section.

4

(3)  (i)  All resident children in this Commonwealth

5

shall qualify for admission to a charter school entity

6

under paragraph (4).

7

(ii)  If more students apply to the charter school

8

entity than the number of attendance slots available in

9

the school, students shall be selected on a random basis

10

from a pool of qualified applicants meeting the

11

established eligibility criteria and submitting an

12

application by the deadline set by the school, except

13

that the school may give preference in enrollment to a

14

child of a parent who actively participated in

15

development of the school, siblings of students presently

16

enrolled in the school and siblings of students selected

17

for enrollment during the lottery process. For charter

18

schools and regional charter schools, first preference

19

shall be given to students who reside in the district or

20

districts where the school is located.

21

(4)  (i)  A charter school entity shall not discriminate

22

in its admission policies or practices on the basis of

23

any of the following:

24

(A)  Except as provided under subparagraph (ii),

25

intellectual ability.

26

(B)  Athletic ability.

27

(C)  Measures of achievement or aptitude.

28

(D)  Status as a person with a disability.

29

(E)  Proficiency in the English language.

30

(F)  Any other basis that would be illegal if

31

utilized by a school district.

32

(ii)  A charter school entity may limit admission to

33

a particular grade level, a targeted population group

34

composed of at-risk students or one or more areas of

35

concentration such as mathematics, language, science or

36

the arts.

37

(iii)  A charter school entity may establish

38

reasonable criteria to evaluate prospective students

39

which shall be outlined in the school's charter.

40

(5)  If there is available classroom space, a charter

41

school or regional charter school may enroll nonresident

42

students on a space-available basis and the student's school

43

district of residence shall permit the student to attend the

44

charter school. Terms and conditions of enrollment shall be

45

outlined in the school's charter.

46

(6)  The commission shall develop and issue a standard

47

enrollment form that shall be used by all charter school

48

entities. A charter school entity may not impose additional

49

terms or require additional information outside the standard

50

enrollment form.

51

(b)  Notification.--The following shall apply:

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1

(1)  Within ten days of enrollment of a student to a

2

charter school entity, the school shall notify the student's

3

school district of residence of the enrollment through the

4

use of a notification form developed by the commission. The

5

notification shall include:

6

(i)  The name, home address and mailing address of

7

the student.

8

(ii)  The grade in which the student is being

9

enrolled.

10

(iii)  The date the student will be enrolled.

11

(iv)  The name and address of the charter school

12

entity and the name and telephone number of a contact

13

person able to provide information regarding the school.

14

(v)  The signature of the parent or legal guardian of

15

the student and an authorized representative of the

16

charter school entity.

17

(2)  If a school district which has received notice under

18

paragraph (1) determines that it is not the school district

19

of residence for the student, the following shall apply:

20

(i)  Within ten days of receipt of the notice under

21

paragraph (1), the school district shall notify the

22

charter school entity and the department that the school

23

district is not the school district of residence for the

24

student. Notification of nonresidence shall include the

25

basis for the determination.

26

(ii)  Within seven days of notification under

27

subparagraph (i), the charter school entity shall review

28

the notification of nonresidence, respond to the school

29

district and provide a copy of the response to the

30

department. If the charter school entity agrees that the

31

school district is not the school district of residence

32

for the student, it shall determine the proper school

33

district of residence for the student.

34

(iii)  Within seven days of receipt of a response

35

under subparagraph (ii), the school district shall notify

36

the charter school entity that it agrees or does not

37

agree with the school's determination.

38

(iv)  A school district that has notified the charter

39

school entity that it does not agree shall appeal to the

40

department for a final determination.

41

(v)  Decisions of the department regarding the school

42

district of residence of a student shall be subject to

43

review by Commonwealth Court.

44

(vi)  The secretary shall continue to make payments

45

to a charter school entity under section 1728-C during

46

the time in which the school district of residence of a

47

student is in dispute.

48

(vii)  If a final determination is made that a

49

student is not a resident of an appealing school

50

district, the charter school entity shall return all

51

funds provided on behalf of that student to the school

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1

district of residence within 30 days.

2

(3)  (i)  Within ten days of receipt of the notification

3

form under paragraph (1), the school district of

4

residence shall provide the charter school entity with

5

all records relating to the student, including

6

transcripts, test scores and a copy of any individualized

7

educational program for that student.

8

(ii)  If a school district of residence fails to

9

provide the student's record within 30 days after

10

receiving the documentation from the charter school

11

entity, the secretary shall deduct and pay to the charter

12

school entity the estimated amount, as documented by the

13

charter school entity, from all State payments made to

14

the district or, if no payments have been made to the

15

district, from all State payments reasonably expected to

16

be made, after receipt of documentation from the charter

17

school entity.

18

(iii)  The district from which the estimated payment

19

has been deducted under subparagraph (ii) may request a

20

hearing from the department which the secretary shall

21

hold within 30 days of the request. The secretary shall

22

render a decision after the hearing and shall not

23

delegate this duty unless there is a conflict from which

24

the secretary must recuse himself after full disclosure.

25

(iv)  The district shall be liable for reasonable

26

legal fees incurred by a charter school entity in

27

attempting to obtain student records.

28

(v)  Supersedeas may not be granted to the department

29

or the school district and, absent a court order, the

30

department may not hold any payments to a charter school

31

entity in escrow.

32

(c)  Withdrawal.--The charter school entity and parent or

33

guardian of a student enrolled in the school shall provide

34

written notification to the student's school district of

35

residence within ten days after withdrawal of a student from the

36

charter school entity.

37

Section 1727-C.  School staff.

38

(a)  Terms of employment.--

39

(1)  The board of trustees of a charter school entity

40

shall determine the level of compensation and all terms and

41

conditions of employment of the staff except as otherwise

42

provided under this article.

43

(2)  At least 75% of the professional staff members of a

44

charter school entity shall hold appropriate State

45

certification.

46

(3)  Employees of a charter school entity may organize

47

under the act of July 23, 1970 (P.L.563, No.195), known as

48

the Public Employe Relations Act.

49

(4)  The board of trustees of a charter school entity

50

shall be considered an employer for purposes of Article XI-A.

51

Upon formation of one or more collective bargaining units at

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1

the school, the board of trustees shall bargain with the

2

employees based on this article, Article XI-A and the Public

3

Employe Relations Act.

4

(5)  Collective bargaining units at a charter school

5

entity shall be separate from any collective bargaining unit

6

of the school district in which the school is located from

7

any other collective bargaining unit.

8

(6)  A charter school entity organized as a collective

9

bargaining unit shall be considered a school entity as

10

provided for under section 1161-A for the purpose of the

11

secretary's seeking an injunction requiring the charter

12

school entity to meet the minimum requirements for

13

instruction as provided for under this article.

14

(b)  Charter applications.--Each charter application shall

15

list the general qualifications needed to staff any noncertified

16

positions. Professional employees who do not hold appropriate

17

State certification must present evidence that they:

18

(1)  meet the qualifications under sections 1109 and

19

1209; and

20

(2)  have demonstrated satisfactorily a combination of

21

experience, achievement and qualifications as defined in the

22

charter school application in basic skills, general

23

knowledge, professional knowledge and practice and subject

24

matter knowledge in the subject area which an individual will

25

teach.

26

(c)  Employees.--

27

(1)  All employees of a charter school entity shall be

28

enrolled in the Public School Employees' Retirement System in

29

the same manner as set forth under 24 Pa.C.S. § 8301(a)

30

(relating to mandatory and optional membership) unless at the

31

time of the application for the charter school entity the

32

sponsoring district or the board of trustees of the charter

33

school entity has a retirement program which covers the

34

employees or the employee is currently enrolled in another

35

retirement program.

36

(2)  The Commonwealth shall make contributions on behalf

37

of charter school entity employees enrolled in the Public

38

School Employees' Retirement System. The charter school

39

entity shall be considered a school district and shall make

40

payments by employers to the Public School Employees'

41

Retirement System and payments on account of Social Security

42

as established under 24 Pa.C.S. Pt. IV (relating to

43

retirement for school employees).

44

(3)  The market value/income aid ratio used in

45

calculating payments as prescribed under this subsection

46

shall be the market value/income aid ratio for the school

47

district in which the charter school is located or, in the

48

case of a regional charter school or cyber charter school,

49

shall be a composite market value/income aid ratio for the

50

participating school districts as determined by the

51

department.

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1

(4)  Except as otherwise provided, employees of a charter

2

school entity shall make regular member contributions as

3

required for active members under 24 Pa.C.S. Pt. IV.

4

(5)  If the employees of the charter school entity

5

participate in another retirement plan, those employees shall

6

have no concurrent claim on the benefits provided to public

7

school employees under 24 Pa.C.S. Pt. IV.

8

(6)  For purposes of this subsection, a charter school

9

entity shall be deemed to be a "public school" as defined in

10

24 Pa.C.S. § 8102 (relating to definitions).

11

(d)  Benefits.--

12

(1)  Every employee of a charter school shall be provided

13

similar health care benefits as the employee would be

14

provided if he or she were an employee of the local district.

15

(2)  The local board of school directors may require the

16

charter school to provide similar terms and conditions with

17

regard to health insurance as the collective bargaining

18

agreement of the school district to include employee

19

contributions to the district's health benefits plan.

20

(3)  The charter school shall make any required

21

employer's contribution to the district's health plan to an

22

insurer, an authorizer or a contractual representative of

23

school employees, whichever is appropriate to provide the

24

required coverage.

25

(e)  Leave of absence.--A public school employee of a school

26

entity may request a leave of absence for up to five years in

27

order to work in a charter school located in the district of

28

employment, in a cyber charter school or in a regional charter

29

school in which the employing school district is a participant.

30

Approval for a leave shall not be unreasonably withheld.

31

(f)  Temporary employees.--

32

(1)  Temporary professional employees on leave from a

33

school district may accrue tenure in the noncharter public

34

school system at the discretion of the local board of school

35

directors in the same manner as they would under Article XI

36

if they had continued to be employed by that district.

37

(2)  Professional employees on leave from a school

38

district shall retain their tenure rights, as provided for in

39

Article XI, in the school entity from which they came. No

40

temporary professional employee or professional employee

41

shall have tenure rights against a charter school entity.

42

(3)  Both temporary professional employees and

43

professional employees shall continue to accrue seniority in

44

the school entity from which they came if they return to that

45

school entity when the leave ends.

46

(g)  Professional employees.--Professional employees who hold

47

a first-level teaching or administrative certificate may, at

48

their option, have the time completed in satisfactory service in

49

a charter school entity applied to the length of service

50

requirements for the next level of certification.

51

(h)  Right to return.--The following shall apply:

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1

(1)  (i)  A temporary professional employee or

2

professional employee who leaves employment at a charter

3

school entity shall have the right to return to a

4

comparable position for which the person is properly

5

certified in the school entity which granted the leave of

6

absence.

7

(ii)  If a teacher has been dismissed by the charter

8

school entity, the school entity that granted the leave

9

of absence shall be provided by the charter school entity

10

with the reasons for the dismissal at the time it occurs,

11

a list of any witnesses who were relied on by the charter

12

school entity in moving for dismissal, a description of

13

and access to any physical evidence used by the charter

14

school entity in moving for dismissal and a copy of any

15

record developed at any dismissal proceeding conducted by

16

the charter school entity.

17

(iii)  The record of the hearing may be admissible in

18

a hearing before the school entity which granted the

19

leave of absence.

20

(iv)  Nothing under this section shall affect the

21

authority of the board of school directors to initiate

22

proceedings under Article XI if the board determines that

23

occurrences at the charter school entity leading to

24

dismissal of a teacher constitute adequate and

25

independent grounds for discipline under section 1122.

26

(2)  No temporary employee or professional employee who

27

is leaving employment at a charter school entity shall be

28

returned to a position in the public school district that

29

granted his leave of absence until the public school district

30

is in receipt of a current criminal history record under

31

section 111 and the official clearance statement regarding

32

child injury or abuse from the Department of Public Welfare

33

as required under 23 Pa.C.S. Ch. 63 Subch. C.2 (relating to

34

background checks for employment in schools).

35

(i)  Criminal history.--All individuals who have direct

36

contact with students shall be required to submit a report of

37

criminal history record information required under section 111

38

prior to accepting a position with the charter school entity.

39

This subsection shall apply to all individuals who have direct

40

contact with students, including volunteers who work on a full-

41

time or part-time basis at the charter school entity.

42

(j)  Official clearance statement.--All applicants for a

43

position as a school employee and any individual who volunteers

44

to work on a full-time or part-time basis at a charter school

45

entity shall be required to submit the official clearance

46

statement regarding child injury or abuse from the Department of

47

Public Welfare as required under 23 Pa.C.S. Ch. 63 Subch. C.2.

48

Section 1728-C.  Funding.

49

(a)  General rule.--Funding for a charter school entity shall

50

be provided in the following manner:

51

(1)  There shall be no tuition charge for a resident or

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1

nonresident student attending a charter school entity.

2

(2)  (i)  For nonspecial education students, the charter

3

school entity shall receive for each student enrolled no

4

less than the budgeted total expenditure per average

5

daily membership of the prior school year, as defined in

6

section 2501(20), minus the budgeted expenditures of the

7

district of residence for all of the following:

8

(A)  Nonpublic school programs.

9

(B)  Adult education programs.

10

(C)  Community and junior college programs.

11

(D)  Student transportation services.

12

(E)  Special education programs.

13

(F)  Facilities acquisition, construction and

14

improvement services.

15

(G)  Other financing uses, including debt service

16

and fund transfers as provided in the Manual of

17

Accounting and Related Financial Procedures for

18

Pennsylvania School Systems established by the

19

department.

20

(ii)  (A)  The amount under subparagraph (i) shall be

21

paid by the school district of residence of each

22

student by deduction and transfer from all State

23

payments to the district as provided under paragraph

24

(5).

25

(B)  If a charter school entity disputes the

26

accuracy of a district's calculation under this

27

paragraph, the charter school entity shall file a

28

notice of the dispute with the secretary who shall

29

hold a hearing to determine the accuracy of the

30

district's calculation within 30 days of the notice.

31

(C)  The secretary shall determine the accuracy

32

of the district's calculation within 30 days of the

33

hearing.

34

(D)  The district shall bear the burden of

35

production and proof with respect to its calculation

36

under this paragraph.

37

(E)  The district shall be liable for the

38

reasonable legal fees incurred by a charter school

39

entity if the charter school entity is the

40

substantially prevailing party after a hearing under

41

this section. The charter school entity shall be

42

liable for the reasonable legal fees incurred by the

43

district if the district is the substantially

44

prevailing party after a hearing under this section.

45

(F)  All decisions of the secretary under this

46

paragraph shall be subject to appellate review by

47

Commonwealth Court.

48

(3)  (i)  For special education students, the charter

49

school entity shall receive for each student enrolled the

50

same funding as for each nonspecial education student as

51

provided under paragraph (2), plus an additional amount

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1

determined by dividing the school district of residence's

2

total special education expenditure by the product of

3

multiplying the combined percentage of section 2509.5(k)

4

applicable to the school year times the school district

5

of residence's total average daily membership for the

6

prior school year.

7

(ii)  The amount under subparagraph (i) shall be paid

8

by the school district of residence of each student by

9

deduction and transfer from all State payments to the

10

district as provided under paragraph (5).

11

(iii)  If a charter school entity disputes the

12

accuracy of a district's calculation under this

13

paragraph, the charter school entity shall file a notice

14

of the dispute with the secretary, who shall hold a

15

hearing to determine the accuracy of the district's

16

calculation within 30 days of the notice.

17

(iv)  The secretary shall determine the accuracy of

18

the district's calculation within 30 days of the hearing.

19

(v)  The district shall bear the burden of production

20

and proof with respect to its calculation under this

21

paragraph.

22

(vi)  The district shall be liable for the reasonable

23

legal fees incurred by a charter school entity if the

24

charter school entity is the substantially prevailing

25

party after a hearing under this section. The charter

26

school entity shall be liable for the reasonable legal

27

fees incurred by the school district if the district is

28

the substantially prevailing party after a hearing under

29

this section.

30

(vii)  All decisions of the secretary under this

31

section shall be subject to appellate review by

32

Commonwealth Court.

33

(4)  A charter school entity may request the intermediate

34

unit or school district in which the school is located to

35

provide services to assist the school to address the specific

36

needs of nonspecial education and exceptional students. The

37

intermediate unit or school district shall assist the charter

38

school entity and bill the school for the services. The

39

intermediate unit may not charge the charter school entity

40

more for any service than it charges the constituent

41

districts of the intermediate unit. Nothing under this

42

section shall preclude an intermediate unit or school

43

district from contracting with a charter school entity to

44

provide the intermediate unit or school district with

45

services to assist the intermediate unit or school district

46

to address specific needs of nonspecial education and special

47

education students.

48

(5)  (i)  Payments shall be made to the charter school

49

entity in 12 equal monthly payments, by the fifth day of

50

each month, within the operating school year.

51

(ii)  Payments shall be made by the secretary

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1

deducting and paying to the charter school entity the

2

estimated amount, as documented by the charter school

3

entity, from all State payments made to the district or

4

if no payments have been made to the district, from all

5

State payments reasonably expected to be made, after

6

receipt of documentation from the charter school entity

7

as to its enrollment.

8

(iii)  The secretary's obligation to make payments

9

under this section shall be mandatory and ministerial. If

10

there are insufficient State payments being made to a

11

district to cover all charter school entity deductions

12

and transfers, the district shall be responsible for

13

paying the unpaid balance directly to the charter school

14

entity by the 15th day of each month.

15

(iv)  A student enrolled in a charter school entity

16

shall be included in the average daily membership of the

17

student's school district of residence for the purpose of

18

providing basic education funding payments and special

19

education funding under Article XXV.

20

(6)  (i)  Within 30 days after the secretary transfers

21

the funds described under paragraph (5), a school

22

district may notify the secretary that the deduction made

23

from State payments to the district under this subsection

24

is inaccurate.

25

(ii)  The secretary shall provide the school district

26

with an opportunity to be heard concerning whether the

27

charter school entity documented that its students were

28

enrolled in the charter school entity, the period of time

29

during which each student was enrolled, the school

30

district of residence of each student and whether the

31

amounts deducted from the school district were accurate.

32

(iii)  The burden of proof and production at the

33

hearing shall be on the school district. A hearing shall

34

not be held before the secretary deducts and transfers to

35

the charter school entity the amount estimated by the

36

charter school entity.

37

(iv)  The district shall be liable for the reasonable

38

legal fees incurred by a charter school entity if the

39

charter school entity is the substantially prevailing

40

party after a hearing under this section. The charter

41

school entity shall be liable for the reasonable legal

42

fees incurred by the district if the district is the

43

substantially prevailing party after a hearing under this

44

section.

45

(v)  All decisions of the secretary under this

46

section shall be subject to appellate review by

47

Commonwealth Court.

48

(vi)  Supersedeas shall not be granted to the

49

secretary or any party to the proceeding on an appeal

50

from the decision of the secretary under this section

51

and, absent a court order, the secretary shall not hold

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1

any payments in escrow.

2

(b)  Temporary financial assistance.--

3

(1)  The Commonwealth shall provide temporary financial

4

assistance to a school district due to the enrollment of

5

students in a charter school entity who attended a nonpublic

6

school in the prior school year in order to offset the

7

additional costs directly related to the enrollment of those

8

students in a public charter school entity.

9

(2)  The Commonwealth shall pay the school district of

10

residence of a student enrolled in a nonpublic school in the

11

prior school year who is attending a charter school entity an

12

amount equal to the school district of residence's basic

13

education subsidy for the current school year divided by the

14

district's average daily membership for the prior school

15

year.

16

(3)  The payment under paragraph (3) shall occur only for

17

the first year of the attendance of the student in a charter

18

school entity, starting with school year 1997-1998.

19

(4)  Total payments of temporary financial assistance to

20

school districts on behalf of a student enrolling in a

21

charter school entity who attended a nonpublic school in the

22

prior school year shall be limited to funds appropriated for

23

this program in a fiscal year. If the total of the amount

24

needed for all students enrolled in a nonpublic school in the

25

prior school year who enroll in a charter school entity

26

exceeds the appropriation for the temporary financial

27

assistance program, the amount paid to a school district for

28

each qualifying student shall be pro rata reduced.

29

(c)  Gifts and donations.--It shall be lawful for any charter

30

school entity to receive, hold, manage and use, absolutely or in

31

trust, any devise, bequest, grant, endowment, gift or donation

32

of any property, real or personal and mixed, which shall be made

33

to the charter school entity for any purpose of this article.

34

(d)  Requests or demands for gifts.--It shall be unlawful for

35

any trustee of a charter school entity or any board of trustees

36

of a charter school entity or any other person affiliated in any

37

way with a charter school entity to demand or request, directly

38

or indirectly, any gift, donation or contribution of any kind

39

from any parent, teacher, employee or any other person

40

affiliated with the school as a condition for employment or

41

enrollment and continued attendance of any pupil. Any donation,

42

gift or contribution received by a charter school entity must be

43

given freely and voluntarily.

44

(e)  Discounts.--A cyber charter school shall not provide

45

discounts to a school district or waive payments under this

46

section for any student.

47

Section 1729-C.  Transportation.

48

(a)  General rules.--

49

(1)  Except as provided under paragraph (2), students who

50

attend any of the following shall be provided free

51

transportation to the charter school or regional charter

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1

school by their school district of residence on the dates and

2

periods that the charter school or regional charter school is

3

in session whether or not transportation is provided on the

4

dates and periods to students attending schools of the

5

district:

6

(i)  A charter school located in their school

7

district of residence.

8

(ii)  A regional charter school of which the school

9

district is a part.

10

(iii)  A charter school located outside district

11

boundaries at a distance not exceeding ten miles by the

12

nearest public highway.

13

(2)  (i)  Except as provided under subparagraph (ii),

14

transportation shall not be required for elementary

15

students, including kindergarten students, residing

16

within one and one-half miles or for secondary students

17

residing within two miles of the nearest public highway

18

from the charter school or regional charter school in

19

which the students are enrolled unless the road or

20

traffic conditions are such that walking constitutes a

21

hazard to the safety of the students when certified by

22

the Department of Transportation.

23

(ii)  If the school district provides transportation

24

to the public schools of the school district for

25

elementary students, including kindergarten students,

26

residing within one and one-half miles or for secondary

27

students residing within two miles of the nearest public

28

highway under nonhazardous conditions, transportation

29

shall be provided to charter schools and regional charter

30

schools under the same conditions.

31

(3)  Districts providing transportation to a charter

32

school or regional charter school outside the district and,

33

for the 2007-2008 school year and each school year

34

thereafter, districts providing transportation to a charter

35

school or regional charter school within the district shall

36

be eligible for payments under section 2509.3 for each public

37

school student transported. A school district shall not be

38

responsible for providing transportation to a charter school

39

or regional charter school located outside the borders of

40

this Commonwealth.

41

(4)  If a school district does not provide transportation

42

to a charter school or regional charter school student

43

because the student's placement is outside the district

44

boundaries at a distance of more than ten miles by the

45

nearest public highway, when determining the per pupil

46

subsidy to be paid under section 1728-C by the school

47

district to the charter school or regional charter school for

48

that student, the district shall not be entitled to subtract

49

its student transportation services expenses.

50

(b)  School districts of the first class.--In addition to any

51

other requirements under this section, school districts of the

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1

first class shall provide transportation to students who attend

2

a charter school or regional charter school if they are the same

3

age or are enrolled in the same grade, grades or their grade

4

equivalents as any of the students of the school district for

5

whom transportation is provided under any program or policy to

6

the schools of the school district.

7

(c)  Students with disabilities.--

8

(1)  In addition to any other requirements under this

9

section, the school district of residence of a student who is

10

eligible under the Individuals with Disabilities Education

11

Act (Public Law 91-230, 20 U.S.C. § 1400 et seq.) or is a

12

protected student with disabilities under section 504 of the

13

Rehabilitation Act of 1973 (Public Law 93-112, 29 U.S.C. §

14

701 et seq.) who is enrolled in a charter school entity shall

15

be responsible for providing free transportation to the

16

charter school entity student to any alternative location,

17

school or building in which the charter school entity student

18

has been alternatively placed, provided that the alternative

19

locations, schools or buildings are located within the

20

district boundaries or outside the district boundaries at a

21

distance not exceeding ten miles by the nearest public

22

highway.

23

(2)  The transportation under paragraph (1) shall be

24

provided on the dates and periods as required by the

25

student's individualized educational program or section 504

26

of the Rehabilitation Act of 1973 service agreement whether

27

or not transportation is provided on the dates and periods to

28

students attending schools of the district.

29

(3)  If a school district does not provide transportation

30

to an alternatively placed student because the student's

31

alternative placement is outside the district boundaries at a

32

distance of more than ten miles by the nearest public

33

highway, when determining the per pupil subsidy to be paid

34

under section 1728-C by the school district to the charter

35

school entity for that student, the district shall not be

36

entitled to subtract its student transportation services

37

expenses.

38

(d)  Payment.--

39

(1)  If the secretary determines that a school district

40

is not providing the required transportation to students to

41

the charter school entity the department shall pay directly

42

to the charter school entity funds for costs incurred in the

43

transportation of its students.

44

(2)  For each eligible student transported, the charter

45

school entity shall receive a payment equal to the total

46

expenditures for transportation of the school district

47

divided by the total number of school students transported by

48

the school district under any program or policy.

49

(3)  Within 30 days after receipt of the documentation

50

from the charter school entity, the secretary shall deduct

51

and pay the charter school entity the estimated amount, as

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1

documented by the charter school entity from the State

2

payment made to the district for transportation.

3

(4)  The district from which the estimated transportation

4

payment has been deducted may request a hearing from the

5

department which the secretary shall hold within 30 days of

6

the request.

7

(5)  The secretary shall render a decision after the

8

hearing and shall not delegate this duty unless there is a

9

conflict from which he must recuse himself after full

10

disclosure.

11

(6)  The district shall be liable for the reasonable

12

legal fees incurred by a charter school entity in attempting

13

to obtain payment by the district.

14

(7)  The charter school entity shall be liable for the

15

reasonable legal fees incurred by the district if the

16

district is the substantially prevailing party after a

17

hearing under this section.

18

(8)  Supersedeas shall not be granted to the department

19

or the school district and, absent a court order, the

20

department shall not hold any payments in escrow.

21

(e)  Current transportation policy.--A school district of the

22

first class shall submit a copy of its current transportation

23

policy to the department no later than August 1 of each year.

24

Section 1730-C.  Tort liability.

25

For purposes of tort liability, employees of the charter

26

school entity shall be considered public employees and the board

27

of trustees shall be considered the public employer in the same

28

manner as political subdivisions and local agencies. The board

29

of trustees of a charter school entity and the charter school

30

entity shall be solely liable for all damages of any kind

31

resulting from any legal challenge involving the operation of a

32

charter school entity. Notwithstanding this section, the local

33

board of directors of a school entity or an authorizer may not

34

be held liable for any activity or operation related to the

35

program of the charter school entity.

36

Section 1731-C.  Annual reports and assessments.

37

(a)  Duty.--

38

(1)  The authorizer shall annually assess on a standard

39

form developed by the commission whether each charter school

40

entity is meeting the goals of its charter and shall conduct

41

a comprehensive review prior to the renewal process as

42

outlined in section 1723-C.

43

(2)  The authorizer shall have ongoing reasonable access

44

to the records and facilities of the charter school entity to

45

ensure that the school is in compliance with its charter,

46

this article and that the requirements for testing, civil

47

rights and student health and safety are being met. Ongoing

48

reasonable access to a charter school entity's records shall

49

mean that the authorizer shall have access to records such as

50

financial reports, financial audits, aggregate standardized

51

test scores without student identifying information and

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1

teacher certification and personnel records.

2

(3)  Schools and their authorizers shall comply fully

3

with the requirements of the Family Educational Rights and

4

Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. § 1232g)

5

and associated regulations.

6

(4)  No personally identifiable information from

7

education records shall be provided by the charter school

8

entity to its authorizer except in compliance with the Family

9

Educational Rights and Privacy Act of 1974.

10

(b)  Annual report.--

11

(1)  In order to facilitate the authorizer's review, each

12

charter school entity shall submit an annual report on a

13

standard form developed by the commission no later than

14

September 1 of each year to the authorizer. Within ten days

15

of receipt of the annual report, the authorizer shall certify

16

to the charter school entity that the annual report has been

17

received with an indication of the date of receipt. Within 30

18

days of the date of receipt, the authorizer shall certify to

19

the charter school entity that the annual report has been

20

reviewed and is complete or alternatively, has been reviewed

21

and is missing specific information referenced in the

22

certification.

23

(2)  For fiscal year 2013-2014 and each fiscal year

24

thereafter, all authorizers shall submit an annual financial

25

report on a standard form developed by the commission to the

26

Governor's Office of the Budget, the Appropriations Committee

27

of the Senate, the Appropriation Committee of the House of

28

Representatives, the Education Committee of the Senate and

29

the Education Committee of the House of Representatives no

30

later than October 1 of each year. The financial report shall

31

list all oversight activities performed by the authorizer in

32

the previous year, as well as a financial accounting of all

33

staff and resources used for oversight activities for each

34

charter school entity chartered by the authorizer. The annual

35

financial report under this paragraph shall be a public

36

document under the Right-to-Know Law and shall be made

37

available on the authorizer's Internet website.

38

(c)  Independent audit committee.--Every charter school

39

entity shall form an independent audit committee of its board

40

members that shall review at the close of each fiscal year a

41

complete certified audit of the operations of the charter school

42

entity. The audit shall be conducted by a qualified independent

43

certified public accountant as selected from a list of approved

44

providers established by the commission. The audit shall be

45

conducted under generally accepted audit standards of the

46

Governmental Accounting Standards Board (GASB) and shall include

47

the following:

48

(1)  An enrollment test to verify the accuracy of student

49

enrollment and reporting to the Commonwealth.

50

(2)  Full review of expense reimbursements for board

51

members and administrators, including sampling of all

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1

reimbursements.

2

(3)  Review of internal controls, including review of

3

receipts and disbursements.

4

(4)  Review of annual Federal and State tax filings,

5

including the Internal Revenue Service Code Form 990, Return

6

of Organization Exempt from Income Tax, and all related

7

schedules and appendices for the charter school entity and

8

charter school foundation, if applicable.

9

(5)  Review of the financial statements of any charter

10

school foundation which shall be included in the independent

11

audit.

12

(6)  Review of the selection and acceptance process of

13

all contracts publicly bid under section 751.

14

(7)  Review of all board policies and procedures with

15

regard to internal controls, code of ethics, conflicts of

16

interest, whistle-blower protections, complaints from parents

17

or the public, compliance with 65 Pa.C.S. Ch. 7 (relating to

18

open meetings), compliance with the Right-to-Know Law,

19

finances, budgeting, audits, public bidding and bonding.

20

(8)  Any other test the commission deems appropriate.

21

(d)  Public document.--The certified audit under subsection

22

(c) and the annual budget under subsection (f) shall be public

23

documents under the Right-to-Know Law and shall be made

24

available on the authorizer's Internet website and the charter

25

school entity's Internet website, if applicable.

26

(e)  Annual audit.--Charter school entities may be subject to

27

an annual audit by the Auditor General, in addition to any other

28

audits required by Federal law or this article.

29

(f)  Annual budget.--Charter school entities shall annually

30

provide the authorizer and the department with a copy of the

31

annual budget for the operation of the school that identifies

32

the following:

33

(1)  The source of funding for all expenditures as part

34

of its reporting under subsection (a).

35

(2)  If funding is provided by a charter school

36

foundation, the amount of funds and a description of the use

37

of the funds.

38

(3)  The salaries of all administrators of the charter

39

school entity.

40

(g)  Tax filings.--Notwithstanding any other provision of

41

law, the charter school entity and any affiliated charter school

42

foundations shall make copies of its annual Federal and State

43

tax filings available upon request and on the foundation's or

44

school's Internet website, if applicable, including Internal

45

Revenue Service Code Form 990, Return of Organization Exempt

46

from Income Tax, and all related schedules and appendices. The

47

charter school foundation shall make copies of its annual budget

48

available upon request and on the foundation's or the school's

49

Internet website within 30 days of the close of the foundation's

50

fiscal year. The annual budget shall include the salaries of all

51

employees of the charter school foundation.

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1

Section 1732-C.  Desegregation orders.

2

If a school district is operating under a desegregation plan

3

approved by the Pennsylvania Human Relations Commission or a

4

desegregation order by a Federal or State court, an authorizer

5

shall not approve a charter school entity application if the

6

school would place the school district in noncompliance with its

7

desegregation order.

8

Section 1733-C.  Applicable provisions.

9

(a)  Charter school entities.--Charter school entities shall

10

be subject to the following:

11

(1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,

12

436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741,

13

752, 753, 771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a),

14

1205.1, 1205.2, 1205.3, 1205.5, 1301, 1302, 1310, 1317,

15

1317.1, 1317.2, 1318, 1327, 1330, 1332, 1513, 1517, 1518,

16

1521, 1523, 1531, 1547, 2014-A, Articles XIII-A and XIV.

17

(2)  The act of July 19, 1957 (P.L.1017, No.451), known

18

as the State Adverse Interest Act.

19

(3)  The act of July 17, 1961 (P.L.776, No.341), known as

20

the Pennsylvania Fair Educational Opportunities Act.

21

(4)  The act of July 19, 1965 (P.L.215, No.116), entitled

22

"An act providing for the use of eye protective devices by

23

persons engaged in hazardous activities or exposed to known

24

dangers in schools, colleges and universities."

25

(5)  Section 4 of the act of January 25, 1966 (1965

26

P.L.1546, No.541), entitled "An act providing scholarships

27

and providing funds to secure Federal funds for qualified

28

students of the Commonwealth of Pennsylvania who need

29

financial assistance to attend postsecondary institutions of

30

higher learning, making an appropriation and providing for

31

the administration of this act."

32

(6)  The act of July 12, 1972 (P.L.765, No.181), entitled

33

"An act relating to drugs and alcohol and their abuse,

34

providing for projects and programs and grants to educational

35

agencies, other public or private agencies, institutions or

36

organizations."

37

(7)  The act of December 15, 1986 (P.L.1595, No.175),

38

known as the Antihazing Law.

39

(8)  The Right-to-Know Law.

40

(9)  65 Pa.C.S. Ch. 7 (relating to open meetings).

41

(10)  65 Pa.C.S. Ch. 11 (relating to ethics standards and

42

financial disclosure).

43

(b)  Construction projects and related work.--Boards of

44

trustees and contractors of charter school entities shall be

45

subject to the following statutory requirements governing

46

construction projects and construction-related work:

47

(1)  Sections 751 and 751.1.

48

(2)  Sections 756 and 757 insofar as they are consistent

49

with the act of December 20, 1967 (P.L.869, No.385), known as

50

the Public Works Contractors' Bond Law of 1967.

51

(c)    Charter schools.--Charter schools and regional charter

- 81 -

 


1

schools shall be subject to sections 1205.4, 1303 and 1317.3.

2

(d)  Regulations.--Charter school entities shall be subject

3

to the following provisions of 22 Pa. Code (relating to

4

education):

5

(1)  Chapter 4 (relating to academic standards and

6

assessment).

7

(2)  Chapter 11 (relating to student attendance).

8

(3)  Chapter 12 (relating to students and student

9

services).

10

(4)  Section 32.3 (relating to assurances).

11

(5)  Section 121.3 (relating to discrimination

12

prohibited).

13

(6)  Section 235.4 (relating to practices).

14

(7)  Section 235.8 (relating to civil rights).

15

(8)  Chapter 711 (relating to charter school and cyber

16

charter school services and programs for children with

17

disabilities).

18

Section 1734-C.  Effect on certain existing charter school

19

entities.

20

(a)  General rule.--A charter school or regional charter

21

school approved by a local board of school directors, a special

22

board of control or a School Reform Commission prior to the

23

effective date of this section shall continue to operate under

24

the current charter. All charter schools or regional charter

25

schools approved after the effective date of this section shall

26

be in full compliance with this article.

27

(b)  Expiration of charters approved under this article.--

28

Upon expiration of its charter, a charter school or regional

29

charter school approved under section 1718-C or 1719-C shall

30

seek renewal of its charter from the original authorizer. The

31

charter shall be amended as needed to reflect the requirements

32

of this article. Any renewal that takes effect after June 30,

33

2012, shall be for the term specified under section 1723-C(b).

34

(c)  Transfer of charter.--

35

(1)  A charter school or regional charter school approved

36

by a local board of school directors, a special board of

37

control or a School Reform Commission prior to the effective

38

date of this section may transfer its charter to the

39

oversight of the commission at any time after June 30, 2012.

40

(2)  The board of trustees of the charter school or

41

regional charter school shall submit the school's current

42

charter and annual reports to the commission and request that

43

the commission become the authorizer of the charter school or

44

regional charter school.

45

(3)  Upon receipt of a transfer request and all necessary

46

documentation as required by the commission, the request

47

shall be deemed approved unless, within 30 days of that date,

48

the commission schedules a public hearing concerning the

49

transfer request.

50

(4)  The transfer under paragraph (3) shall be presumed

51

approved and be denied only if the commission determines that

- 82 -

 


1

the charter school or regional charter school would otherwise

2

be subject to revocation or nonrenewal pursuant to the

3

criteria in section 1723-C(c).

4

(5)  The commission shall conduct the hearing under

5

section 1720-C, present evidence in support of the transfer

6

denial stated in its notice and give the charter school or

7

regional charter school reasonable opportunity to offer

8

testimony before taking final action.

9

(6)  If a hearing does occur relating to a school's

10

transfer request, formal action approving or denying the

11

transfer shall be taken by the commission at a public meeting

12

under section 1720-C and 65 Pa.C.S. Ch. 7 (relating to open

13

meetings) after the public has had 30 days to provide

14

comments to the members of the commission.

15

(7)  If the commission denies the transfer, the decision

16

shall not act as revocation or nonrenewal of the current

17

charter, nor shall the proceedings and commission decision

18

related to the transfer be used as evidence in any revocation

19

or nonrenewal proceedings conducted by an authorizer.

20

(8)  If the commission approves the transfer, the

21

commission shall provide notification by certified board

22

resolution to the local board of school directors, the

23

special board of control or the School Reform Commission

24

which initially approved the charter.

25

(9)  No later than 30 days after receipt of the certified

26

board resolution under paragraph (8), the local board of

27

school directors, the special board of control or the School

28

Reform Commission which initially approved the charter shall

29

transfer to the commission all records regarding oversight of

30

the charter school or regional charter school.

31

(10)  The school's charter term shall remain in effect

32

until the time of expiration, at which time the commission

33

shall undertake a comprehensive review under section 1731-

34

C(a).

35

(11)  The appeal board shall have exclusive review of an

36

appeal by a charter school or regional charter school of a

37

decision made by the commission to deny a charter transfer.

38

(d)  Existing cyber charter schools.--A cyber charter school

39

approved by the department prior to the effective date of this

40

section shall continue to operate under the current charter,

41

except that all oversight shall be transferred to the commission

42

beginning July 1, 2012.

43

(e)  Expiration of existing charters.--Upon expiration of its

44

charter, a cyber charter school approved prior to the effective

45

date of this section shall seek renewal of its charter from the

46

commission under this article. The charter shall be amended as

47

needed to reflect the requirements of this article. All cyber

48

charter schools approved or renewed after the effective date of

49

this section shall be in full compliance with this article.

50

(f)  Merger.--

51

(1)  A charter school that was approved by a local board

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1

of school directors, a special board of control or a School

2

Reform Commission prior to the effective date of this

3

section, which chooses to merge into a multiple charter

4

school organization under section 1735-C, may apply to the

5

commission to consolidate all affiliated school charters into

6

a single charter within one year after the publication of the

7

performance matrix to be established by the commission under

8

section 1704-C(h)(12).

9

(2)  The board of trustees of each charter school shall

10

jointly submit their charter school's current charter and

11

annual report to the commission and request that the

12

commission become the authorizer of the multiple charter

13

school organization.

14

(3)  Upon receipt of the consolidation and transfer

15

request and all necessary documentation as required by the

16

commission, the commission shall have 30 days to approve or

17

deny the consolidation and transfer request by a majority

18

vote. If the commission approves the consolidation and

19

transfer, the commission shall provide notification by

20

certified board resolution to the local board of school

21

directors, the special board of control or the School Reform

22

Commission which initially approved the charter.

23

(4)  No later than 30 days after the receipt of the

24

certified board resolution, the local board of school

25

directors, the special board of control or the School Reform

26

Commission which initially approved the charter shall

27

transfer to the commission all records regarding oversight of

28

the charter school.

29

(5)  The school's charter term shall remain in effect

30

until the time of expiration, at which time the commission

31

will undertake a comprehensive review prior to granting a

32

ten-year charter renewal.

33

Section 1735-C.  Multiple charter school organization.

34

(a)  Establishment.--

35

(1)  Subject to the requirements of section 1734-C(f),

36

two or more charter schools may merge or consolidate under 15

37

Pa.C.S. Pt. II Subpt. C (relating to nonprofit corporations)

38

into a multiple charter school organization. Nothing under

39

this article shall preclude a single charter school with an

40

existing charter and with a demonstrated rate of success in

41

the areas of academics, operations, finances and governance

42

from simultaneously filing an application with the commission

43

to operate an additional charter school and an application to

44

operate as a multiple charter school organization.

45

(2)  The multiple charter school organization shall be:

46

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

47

individual charter schools under the oversight of a

48

single board of trustees and a chief administrator who

49

shall oversee and manage the operation of the individual

50

charter schools under its organization;

51

(ii)  considered a charter school; and

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1

(iii)  subject to all of the requirements of this

2

article unless otherwise provided for under this section.

3

(3)  Nothing under this subsection shall be construed to

4

affect or change the terms or conditions of any individual

5

charter previously granted that is consolidated under this

6

section.

7

(b)  Application.--The commission shall develop and issue a

8

standard application form for multiple charter school

9

organization applicants, which shall contain the following

10

information:

11

(1)  The identification of the multiple charter school

12

organization.

13

(2)  The names of the charter schools seeking merger or

14

consolidation under subsection (a).

15

(3)  A copy of the approved charters of each charter

16

school agreeing to merge or consolidate administrative

17

functions with the commission under subsection (a).

18

(4)  An organizational chart clearly presenting the

19

proposed governance structure of the multiple charter school

20

organization, including lines of authority and reporting

21

between the board of trustees, chief administrator,

22

administrators, staff and any educational management service

23

provider that will play a role in providing management

24

services to the charter schools under its jurisdiction.

25

(5)  A clear description of the roles and

26

responsibilities for the board of trustees, chief

27

administrator, administrators and any other entities,

28

including a charter school foundation, shown in the

29

organizational chart.

30

(6)  A clear description and method for the appointment

31

or election of members of the board of trustees.

32

(7)  Standards for board performance, including

33

compliance with all applicable laws, regulations and terms of

34

the charter.

35

(8)  Enrollment procedures for each individual charter

36

school included in its charter.

37

(9)  Any other information as deemed necessary by the

38

commission.

39

(c)  Authorization.--The commission shall serve as the

40

authorizer of a multiple charter school organization.

41

(d)  Special conditions.--A multiple charter school

42

organization may:

43

(1)  Participate in the assessment systems in the same

44

manner in which a school district participates and its

45

individual charter schools shall participate in the

46

assessment systems in the same manner as individual schools

47

in school districts. All data gathered for purposes of

48

evaluation shall be gathered in a like manner.

49

(2)  Add new charter schools to its organization via the

50

application process included under section 1721-C.

51

(3)  Add existing charter schools to its organization or

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1

amend the individual charters of each charter school under

2

its organization via the amendment process included under

3

section 1722-C.

4

(4)  Allow students enrolled in an individual charter

5

school to matriculate to another individual charter school

6

under its oversight so as to complete a course of instruction

7

in an educational institution from kindergarten through grade

8

12.

9

(e)  Annual reports.--The annual report required under

10

section 1731-C shall be provided by the board of trustees and

11

chief administrator of the multiple charter school organization

12

and shall include all information required to provide a basis

13

for evaluation for renewal of each individual charter school

14

under the organization's oversight.

15

(f)  Renewal.--A multiple charter school organization shall

16

be regarded as the holder of the charter of each individual

17

charter school under its oversight and each such previously or

18

subsequently awarded charter shall be subject to nonrenewal or

19

revocation in accordance with this act. The nonrenewal or

20

revocation shall not affect the status of a charter awarded for

21

any other individual charter school under its oversight.

22

Section 1736-C.  Special cyber charter school requirements.

23

(a)  Special financial requirements.--A cyber charter school

24

may not:

25

(1)  Except as provided for under subsection (b), provide

26

payments to parents or guardians for the purchase of

27

instructional materials.

28

(2)  Except as compensation for the provision of specific

29

services, enter into agreements to provide funds to a school

30

entity.

31

(b)  Materials.--For each student enrolled, a cyber charter

32

school shall provide all instructional materials and equipment,

33

such as a computer, computer monitor and printer and shall

34

provide or provide reimbursement for, technology and services

35

necessary for online delivery of the curriculum and instruction.

36

The Commonwealth shall not be liable for reimbursement owed to

37

students, parents or guardians by a cyber charter school.

38

(c)  Information to school districts.--Upon request, a cyber

39

charter school shall make available in writing or electronically

40

to each student's school district of residence the following:

41

(1)  A copy of the charter.

42

(2)  A copy of the cyber charter school application.

43

(3)  A copy of all annual reports prepared by the cyber

44

charter school.

45

(4)  A list of all students from that school district

46

enrolled in the cyber charter school.

47

(d)  Information to parent or guardian.--Upon request and

48

prior to the student's first day in a cyber charter school, the

49

cyber charter school shall, either in writing or electronically,

50

provide to the parent or guardian of a student the following:

51

(1)  A list and brief description of the courses of

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1

instruction the student will receive. The list shall be

2

updated annually for each grade level in which the student is

3

enrolled.

4

(2)  A description of the lessons and activities to be

5

offered both online and offline.

6

(3)  The manner in which attendance will be reported and

7

work will be authenticated.

8

(4)  A list of all standardized tests the student will be

9

required to take during the school year and the place where

10

the test will be administered, if available.

11

(5)  The meetings to be held during the school year

12

between a parent or guardian and a teacher and among other

13

school officials or parents or guardians and the manner in

14

which the parent or guardian will be notified of the time and

15

place for the meeting.

16

(6)  The address of the cyber charter school and the

17

name, telephone number and e-mail address of the chief school

18

administrator and other school personnel.

19

(7)  A list of any extracurricular activities provided by

20

the cyber charter school.

21

(8)  The names of the student's teachers, if available,

22

and the manner in which each teacher can be contacted by the

23

student or the parent or guardian.

24

(9)  A list of all services that will be provided to the

25

student by the cyber charter school.

26

(10)  Copies of policies relating to computer security

27

and privacy, truancy, absences, discipline and withdrawal or

28

expulsion of students.

29

(11)  Information concerning all of the following:

30

(i)  The cyber charter school's professional staff,

31

including the number of staff personnel, their education

32

level and experience.

33

(ii)  The cyber charter school's performance on the

34

Pennsylvania System of School Assessment and other

35

standardized test scores.

36

(12)  Information regarding the proper usage of equipment

37

and materials and the process for returning equipment and

38

materials supplied to the students by the cyber charter

39

school. A parent or guardian shall acknowledge, either in

40

writing or electronically, the receipt of this information.

41

(13)  A description of the school calendar, including,

42

the time frame that will constitute a school year and a

43

school week, holidays and term breaks.

44

(e)  Offices and facilities.--A cyber charter school shall

45

maintain an administrative office within this Commonwealth where

46

all student records shall be maintained at all times and shall

47

provide the commission with the addresses and ownership of all

48

offices and facilities of the cyber charter school and any lease

49

arrangements. The administrative office of the cyber charter

50

school shall be considered to be the principal place of business

51

for service of process for any action brought against the cyber

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1

charter school or cyber charter school staff members. The cyber

2

charter school shall notify the commission of any changes in

3

this information within ten days of the change.

4

(f)  Applicable law.--Any action taken against the cyber

5

charter school, its successors or assigns or its employees,

6

including any cyber charter school staff member as defined in

7

the act of December 12, 1973 (P.L.397, No.141), known as the

8

Professional Educator Discipline Act, shall be governed by the

9

laws of this Commonwealth. If the department initiates an

10

investigation or pursues an action under the Professional

11

Educator Discipline Act involving a current or former charter

12

school staff member outside this Commonwealth, reasonable

13

expenses incurred by the department in the investigation or

14

action shall be paid by the cyber charter school which employed

15

that staff member at the time of the alleged misconduct.

16

(g)  School district and intermediate unit access for

17

testing.--The intermediate unit or school district in which a

18

student enrolled in a cyber charter school resides shall provide

19

the cyber charter school with reasonable access to its

20

facilities for administration of all required standardized

21

tests.

22

ARTICLE XIX-G

23

STATE MILITARY COLLEGE LEGISLATIVE

24

APPOINTMENT INITIATIVE PROGRAM

25

Section 1901-G.  Scope.

26

This article relates to the State Military College

27

Legislative Appointment Initiative Program.

28

Section 1902-G.  Definitions.

29

The following words and phrases when used in this article

30

shall have the meanings given to them in this section unless the

31

context clearly indicates otherwise:

32

"Committee."  A State military college selection committee.

33

"ECP."  The Early Commissioning Program of the United States

34

Army.

35

"ROTC."  Reserve Officers' Training Corps.

36

"Scholarship program."  The term shall have the same meaning

37

as given to it in section 2501-B.

38

"State military college."  A coeducational, postsecondary,

39

two-year institution, a part of which is located in a county of

40

the third class, whose mission is to educate students in both an

41

academic and military environment.

42

Section 1903-G.  The State Military College Legislative

43

Appointment Initiative Program.

44

(a)  Establishment.--The State Military College Legislative

45

Appointment Initiative Program is established within the General

46

Assembly.

47

(b)  State military college selection committee.--Each member

48

of the General Assembly may establish a State military college

49

selection committee. The committee shall serve the legislative

50

district of the member. The State Ethics Commission shall

51

develop guidelines to govern the establishment and functions of

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1

committees to help ensure that the committees and the

2

legislative appointments do not create any conflicts of interest

3

or otherwise violate 65 Pa.C.S. Ch. 11 (relating to ethics

4

standards and financial disclosure) or the act of July 10, 1968

5

(P.L.316, No.154), known as the Legislative Code of Ethics.

6

(c)  Appointments.--Each member of the General Assembly may

7

annually appoint an eligible student who is a resident of the

8

member's legislative district for guaranteed initial enrollment

9

in a State military college. Appointments must be made at the

10

sole recommendation of a State military college selection

11

committee. A State military college shall offer initial

12

enrollment to any eligible student appointed under this article.

13

(d)  Educational funding.--Nothing in this article shall be

14

construed to establish a scholarship granted or funded by the

15

Commonwealth.

16

(e)  Eligibility.--An individual may be recommended by a

17

committee for appointment if the individual meets all of the

18

following requirements:

19

(1)  Graduation from high school or earning a general

20

educational development diploma or the equivalent thereof.

21

(2)  Maintenance of domicile within this Commonwealth

22

during the term of the appointment.

23

(3)  Compliance with any conditions placed upon the

24

appointee by a State military college, including all ECP

25

admission requirements and requirements deemed necessary to

26

successfully matriculate at a State military college.

27

(f)  Application.--A student shall apply to a committee for a

28

recommendation for appointment in a manner prescribed by the

29

committee, to include the provision of all information and

30

documentation required by the committee.

31

(g)  Review.--The committee shall review each application to

32

determine which student is best qualified  to receive a

33

recommendation for appointment. In making its determination the

34

committee may consider whether the student was an eligible

35

student who received a scholarship under a scholarship program

36

established under the Educational Improvement Tax Credit under

37

Article XXV-B.

38

(h)  Termination.--If a student terminates enrollment in a

39

State military college during an academic year or prior to

40

completing the two-year program, the State military college

41

shall notify the appointing legislator in writing.

42

(i)  Annual report.--Any member of the General Assembly who

43

establishes a committee under subsection (b) shall file an

44

annual report with the State Ethics Commission that shall

45

include the name of each member of the selection committee for

46

that year, the names and addresses of applicants for appointment

47

and the name of the applicant who is appointed after final

48

selection.

49

Section 1904-G.  Expiration.

50

This article shall expire June 30, 2016.

51

ARTICLE XXV-B

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1

EDUCATIONAL IMPROVEMENT TAX CREDIT

2

Section 2501-B.  Definitions.

3

The following words and phrases when used in this article

4

shall have the meanings given to them in this section unless the

5

context clearly indicates otherwise:

6

"Business firm."  An entity authorized to do business in this

7

Commonwealth and subject to taxes imposed under Article III, IV,

8

VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,

9

No.2), known as the Tax Reform Code of 1971. The term includes a

10

pass-through entity.

11

"Contribution."  A donation of cash, personal property or

12

services, the value of which is the net cost of the donation to

13

the donor or the pro rata hourly wage, including benefits, of

14

the individual performing the services.

15

"Department."  The Department of Community and Economic

16

Development of the Commonwealth.

17

"Educational improvement organization."  A nonprofit entity

18

which:

19

(1)  is exempt from Federal taxation under section 501(c)

20

(3) of the Internal Revenue Code of 1986 (Public Law 99-514,

21

26 U.S.C. § 1 et seq.); and

22

(2)  contributes at least 80% of its annual receipts as

23

grants to a public school, a chartered school as defined in

24

section 1376.1 or a private school approved under section

25

1376 for innovative educational programs.

26

For purposes of this definition, a nonprofit entity

27

"contributes" its annual cash receipts when it expends or

28

otherwise irrevocably encumbers those funds for expenditure

29

during the then current fiscal year of the nonprofit entity or

30

during the next succeeding fiscal year of the nonprofit entity.

31

A "nonprofit entity" includes a school district foundation,

32

public school foundation, charter school foundation or cyber

33

charter school foundation.

34

"Eligible prekindergarten student."  A student, including an

35

eligible student with a disability, who is enrolled in a

36

prekindergarten program and is a member of a household with a

37

maximum annual household income as increased by the applicable

38

income allowance.

39

"Eligible student."  A school-age student, including an

40

eligible student with a disability, who is enrolled in a school

41

and is a member of a household with a maximum annual household

42

income as increased by the applicable income allowance.

43

"Eligible student with a disability."  A prekindergarten

44

student or a school-age student who meets all of the following:

45

(1)  Is either enrolled in a special education school or

46

has otherwise been identified, in accordance with 22 Pa. Code

47

Ch. 14 (relating to special education services and programs),

48

as a "child with a disability," as defined in 34 CFR § 300.8

49

(relating to child with a disability).

50

(2)  Needs special education and related services.

51

(3)  Is enrolled in a prekindergarten program or in a

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1

school.

2

(4)  Is a member of a household with a household income

3

of not more than the maximum annual household income.

4

"Household."  An individual living alone or with the

5

following: a spouse, parent and their unemancipated minor

6

children, other unemancipated minor children who are related by

7

blood or marriage or other adults or unemancipated minor

8

children living in the household who are dependent upon the

9

individual.

10

"Household income."  All moneys or property received of

11

whatever nature and from whatever source derived. The term does

12

not include the following:

13

(1)  Periodic payments for sickness and disability other

14

than regular wages received during a period of sickness or

15

disability.

16

(2)  Disability, retirement or other payments arising

17

under workers' compensation acts, occupational disease acts

18

and similar legislation by any government.

19

(3)  Payments commonly recognized as old-age or

20

retirement benefits paid to persons retired from service

21

after reaching a specific age or after a stated period of

22

employment.

23

(4)  Payments commonly known as public assistance or

24

unemployment compensation payments by a governmental agency.

25

(5)  Payments to reimburse actual expenses.

26

(6)  Payments made by employers or labor unions for

27

programs covering hospitalization, sickness, disability or

28

death, supplemental unemployment benefits, strike benefits,

29

Social Security and retirement.

30

(7)  Compensation received by United States servicemen

31

serving in a combat zone.

32

"Income allowance."

33

(1)  Subject to paragraph (2), the amount of:

34

(i)  Before July 1, 2011, $10,000 for each eligible

35

student, eligible prekindergarten student and dependent

36

member of a household.

37

(ii)  After June 30, 2011, through June 30, 2012,

38

$12,000 for each eligible student, eligible

39

prekindergarten student and dependent member of a

40

household.

41

(iii)  After June 30, 2012, through June 30, 2013,

42

$15,000 for each eligible student, eligible

43

prekindergarten student and dependent member of a

44

household.

45

(2)  Beginning July 1, 2013, the Department of Community

46

and Economic Development shall annually adjust the income

47

allowance amounts under paragraph (1) to reflect any upward

48

changes in the Consumer Price Index for All Urban Consumers

49

for the Pennsylvania, New Jersey, Delaware and Maryland area

50

in the preceding 12 months and shall immediately submit the

51

adjusted amounts to the Legislative Reference Bureau for

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1

publication as a notice in the Pennsylvania Bulletin. 

2

"Innovative educational program."  An advanced academic or

3

similar program that is not part of the regular academic program

4

of a public school but that enhances the curriculum or academic

5

program of a public school, chartered school as defined in

6

section 1376.1(a) or private school approved in accordance with

7

section 1376, or provides prekindergarten programs to public

8

school students, students of a chartered school as defined in

9

section 1376.1(a) or students of a private school approved in

10

accordance with section 1376.

11

"Maximum annual household income."

12

(1)  Except as stated in paragraph (2) and subject to

13

paragraph (3), the following:

14

(i)  Before July 1, 2011, not more than $50,000.

15

(ii)  After June 30, 2011, through June 30, 2012, not

16

more than $60,000.

17

(iii)  After June 30, 2012, not more than $75,000.

18

(2)  With respect to an eligible student with a

19

disability, as calculated by multiplying:

20

(i)  the sum of:

21

(A)  the applicable amount under paragraph (1);

22

and

23

(B)  the applicable income allowance; by

24

(ii)  the applicable support level factor according

25

to the following table:

26

Support Level

Support Level Factor

27

1

1.50

28

2

2.993

29

(3)  Beginning July 1, 2013, the Department of Community

30

and Economic Development shall annually adjust the income

31

amounts under paragraphs (1) and (2) to reflect any upward

32

changes in the Consumer Price Index for All Urban Consumers

33

for the Pennsylvania, New Jersey, Delaware and Maryland area

34

in the preceding 12 months and shall immediately submit the

35

adjusted amounts to the Legislative Reference Bureau for

36

publication as a notice in the Pennsylvania Bulletin.

37

"Pass-through entity."  A partnership as defined in section

38

301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the

39

Tax Reform Code of 1971, a single-member limited liability

40

company treated as a disregarded entity for Federal income tax

41

purposes or a Pennsylvania S corporation as defined in section

42

301(n.1) of the Tax Reform Code of 1971.

43

"Prekindergarten program."  A program of instruction for

44

three-year-old or four-year-old students that utilizes a

45

curriculum aligned with the curriculum of the school with which

46

it is affiliated and that provides:

47

(1)  a minimum of two hours of instructional and

48

developmental activities per day at least 60 days per school

49

year; or

50

(2)  a minimum of two hours of instructional and

51

developmental activities per day at least 20 days over the

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1

summer recess.

2

"Prekindergarten scholarship organization."  A nonprofit

3

entity that:

4

(1)  Either is exempt from Federal taxation under section

5

501(c)(3) of the Internal Revenue Code of 1986 (Public Law

6

99-514, 26 U.S.C. § 1 et seq.) or is operated as a separate

7

segregated fund by a scholarship organization that has been

8

qualified under section 2502-B.

9

(2)  Contributes at least 80% of its annual cash receipts

10

to a prekindergarten scholarship program by expending or

11

otherwise irrevocably encumbering those funds for

12

distribution during the then current fiscal year of the

13

organization or during the next succeeding fiscal year of the

14

organization.

15

"Prekindergarten scholarship program."  A program to provide

16

tuition to eligible prekindergarten students to attend a

17

prekindergarten program operated by or in conjunction with a

18

school located in this Commonwealth and that includes an

19

application and review process for the purpose of making awards

20

to eligible prekindergarten students and awards scholarships to

21

eligible prekindergarten students without limiting availability

22

to only students of one school.

23

"Public school."  A public prekindergarten where compulsory

24

attendance requirements do not apply or a public kindergarten,

25

elementary school or secondary school at which the compulsory

26

attendance requirements of this Commonwealth may be met and that

27

meets the applicable requirements of Title VI of the Civil

28

Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).

29

"Scholarship."  An award under a scholarship program.

30

"Scholarship organization."  A nonprofit entity that:

31

(1)  is exempt from Federal taxation under section 501(c)

32

(3) of the Internal Revenue Code of 1986 (Public Law 99-514,

33

26 U.S.C. § 1 et seq.); and

34

(2)  contributes at least 80% of its annual cash receipts

35

to a scholarship program.

36

For purposes of this definition, a nonprofit entity

37

"contributes" its annual cash receipts to a scholarship program

38

when it expends or otherwise irrevocably encumbers those funds

39

for distribution during the then current fiscal year of the

40

nonprofit entity or during the next succeeding fiscal year of

41

the nonprofit entity.

42

"Scholarship program."  A program to provide tuition to

43

eligible students to attend a school located in this

44

Commonwealth. A scholarship program must include an application

45

and review process for the purpose of making awards to eligible

46

students. The award of scholarships to eligible students shall

47

be made without limiting availability to only students of one

48

school.

49

"School."  A public or nonpublic prekindergarten,

50

kindergarten, elementary school or secondary school at which the

51

compulsory attendance requirements of the Commonwealth may be

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1

met and that meets the applicable requirements of Title VI of

2

the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).

3

"School age."  From the earliest admission age to a school's

4

prekindergarten or kindergarten program or, when no

5

prekindergarten or kindergarten program is provided, the

6

school's earliest admission age for beginners, until the end of

7

the school year the student attains 21 years of age or

8

graduation from high school, whichever occurs first.

9

"Special education school."  A school or program within a

10

school that is designated specifically and exclusively for

11

students with any of the disabilities listed in 34 CFR § 300.8

12

(relating to child with a disability) and meets one of the

13

following:

14

(1)  is licensed under the act of January 28, 1988

15

(P.L.24, No.11), known as the Private Academic Schools Act;

16

(2)  is accredited by an accrediting association approved

17

by the State Board of Education;

18

(3)  is a school for the blind or deaf receiving

19

Commonwealth appropriations; or

20

(4)  is operated by or under the authority of a bona fide

21

religious institution or by the Commonwealth or any political

22

subdivision thereof.

23

"Support level."  The level of support needed by an eligible

24

student with a disability, as stated in the following matrix:

25

(1)  Support level 1. The student is not enrolled in a

26

special education school.

27

(2)  Support level 2. The student is enrolled in a

28

special education school.

29

"Tax credit."  The educational improvement tax credit

30

established under this article.

31

Section 2502-B.  Qualification and application.

32

(a)  Establishment.--In accordance with section 14 of Article

33

III of the Constitution of Pennsylvania, an educational

34

improvement tax credit program is established to enhance the

35

educational opportunities available to all students in this

36

Commonwealth.

37

(b)  Information.--In order to qualify under this article, a

38

scholarship organization, a prekindergarten scholarship

39

organization or an educational improvement organization must

40

submit information to the department that enables the department

41

to confirm that the organization is exempt from taxation under

42

section 501(c)(3) of the Internal Revenue Code of 1986 (Public

43

Law 99-514, 26 U.S.C. § 1 et seq.).

44

(c)  Scholarship organizations and prekindergarten

45

scholarship organizations.--A scholarship organization or

46

prekindergarten scholarship organization must certify to the

47

department that the organization is eligible to participate in

48

the program established under this article and must agree to

49

annually report the following information to the department by

50

September 1 of each year:

51

(1)  (i)  The number of scholarships awarded during the

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1

immediately preceding school year to eligible

2

prekindergarten students.

3

(ii)  The total and average amounts of scholarships

4

awarded during the immediately preceding school year to

5

eligible prekindergarten students.

6

(iii)  The number of scholarships awarded during the

7

immediately preceding school year to eligible students in

8

grades kindergarten through eight.

9

(iv)  The total and average amounts of scholarships

10

awarded during the immediately preceding school year to

11

eligible students in grades kindergarten through eight.

12

(v)  The number of scholarships awarded during the

13

immediately preceding school year to eligible students in

14

grades 9 through 12.

15

(vi)  The total and average amounts of scholarships

16

awarded during the immediately preceding school year to

17

eligible students in grades 9 through 12.

18

(vii)  Where the scholarship organization or

19

prekindergarten scholarship organization collects

20

information on a county-by-county basis, the total number

21

and the total dollar amount of scholarships awarded

22

during the immediately preceding school year to residents

23

of each county in which the scholarship organization or

24

prekindergarten scholarship organization awarded

25

scholarships.

26

(2)  The information required under paragraph (1) shall

27

be submitted on a form provided by the department. No later

28

than May 1 of each year, the department shall annually

29

distribute such sample forms, together with the forms on

30

which the reports are required to be made, to each listed

31

scholarship organization and prekindergarten scholarship

32

organization.

33

(3)  The department may not require any other information

34

to be provided by scholarship organizations or

35

prekindergarten scholarship organizations, except as

36

expressly authorized in this article.

37

(d)  Educational improvement organization.--

38

(1)  An application submitted by an educational

39

improvement organization must describe its proposed

40

innovative educational program or programs in a form

41

prescribed by the department. In prescribing the form, the

42

department shall consult with the Department of Education as

43

necessary. The department shall review and approve or

44

disapprove the application. In order to be eligible to

45

participate in the program established under this article, an

46

educational improvement organization must agree to annually

47

report the following information to the department by

48

September 1 of each year:

49

(i)  The name of the innovative educational program

50

or programs and the total amount of the grant or grants

51

made to those programs during the immediately preceding

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1

school year.

2

(ii)  A description of how each grant was utilized

3

during the immediately preceding school year and a

4

description of any demonstrated or expected innovative

5

educational improvements.

6

(iii)  The names of the public schools and school

7

districts where innovative educational programs that

8

received grants during the immediately preceding school

9

year were implemented.

10

(iv)  Where the educational improvement organization

11

collects information on a county-by-county basis, the

12

total number and the total dollar amount of grants made

13

during the immediately preceding school year for programs

14

at public schools in each county in which the educational

15

improvement organization made grants.

16

(2)  The information required under paragraph (1) shall

17

be submitted on a form provided by the department. No later

18

than May 1 of each year, the department shall annually

19

distribute such sample forms, together with the forms on

20

which the reports are required to be made, to each listed

21

educational improvement organization.

22

(3)  The department may not require any other information

23

to be provided by educational improvement organizations,

24

except as expressly authorized in this article.

25

(e)  Notification.--The department shall notify the

26

scholarship organization, prekindergarten scholarship

27

organization or educational improvement organization that the

28

organization meets the requirements of this article for that

29

fiscal year no later than 60 days after the organization has

30

submitted the information required under this section.

31

(f)  Publication.--The department shall annually publish a

32

list of each scholarship organization, prekindergarten

33

scholarship organization or educational improvement organization

34

qualified under this section in the Pennsylvania Bulletin. The

35

list shall also be posted and updated as necessary on the

36

publicly accessible Internet website of the department.

37

Section 2503-B.  Application.

38

(a)  Scholarship organization or prekindergarten scholarship

39

organization.--A business firm shall apply to the department for

40

a tax credit. A business firm shall receive a tax credit if the

41

scholarship organization or prekindergarten scholarship

42

organization that receives the contribution appears on the list

43

established under section 2502-B(f).

44

(b)  Educational improvement organization.--A business firm

45

must apply to the department for a tax credit. A business firm

46

shall receive a tax credit if the department has approved the

47

program provided by the educational improvement organization

48

that receives the contribution.

49

(c)  Availability of tax credits.--Tax credits shall be made

50

available by the department on a first-come-first-served basis

51

within the limitations established under section 2505-B(a).

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1

(d)  Contributions.--A contribution by a business firm to a

2

scholarship organization, prekindergarten scholarship

3

organization or educational improvement organization shall be

4

made no later than 60 days following the approval of an

5

application under subsection (a) or (b).

6

Section 2504-B.  Tax credit.

7

(a)  Scholarship or educational improvement organizations.--

8

In accordance with section 2505-B(a), the Department of Revenue

9

shall grant a tax credit against any tax due under Article III,

10

IV, VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,

11

No.2), known as the Tax Reform Code of 1971, to a business firm

12

providing proof of a contribution to a scholarship organization

13

or educational improvement organization in the taxable year in

14

which the contribution is made which shall not exceed 75% of the

15

total amount contributed during the taxable year by the business

16

firm. For the fiscal year 2011-2012, the tax credit shall not

17

exceed $400,000 annually per business firm for contributions

18

made to scholarship organizations and educational improvement

19

organizations. For the fiscal year 2012-2013, the tax credit

20

shall not exceed $750,000 annually per business firm for

21

contributions made to scholarship organizations or educational

22

improvement organizations.

23

(b)  Additional amount.--The Department of Revenue shall

24

grant a tax credit of up to 90% of the total amount contributed

25

during the taxable year if the business firm provides a written

26

commitment to provide the scholarship organization or

27

educational improvement organization with the same amount of

28

contribution for two consecutive tax years. The business firm

29

must provide the written commitment under this subsection to the

30

department at the time of application.

31

(c)  Prekindergarten scholarship organizations.--In

32

accordance with section 2505-B(a), the Department of Revenue

33

shall grant a tax credit against any tax due under Article III,

34

IV, VI, VII, VIII, IX or XV of the Tax Reform Code of 1971 to a

35

business firm providing proof of a contribution to a

36

prekindergarten scholarship organization in the taxable year in

37

which the contribution is made which shall be equal to 100% of

38

the first $10,000 contributed during the taxable year by the

39

business firm, and which shall not exceed 90% of the remaining

40

amount contributed during the taxable year by the business firm. 

41

For the fiscal year 2011-2012, the tax credit shall not exceed

42

$200,000 annually per business firm for contributions made to

43

prekindergarten scholarship organizations. For the fiscal year

44

2012-2013, the tax credit shall not exceed $250,000 annually per

45

business firm for contributions made to prekindergarten

46

scholarship organizations.

47

(d)  Combination of tax credits.--A business firm may receive

48

tax credits from the Department of Revenue in any tax year for

49

any combination of contributions under subsection (a), (b) or

50

(c). In no case may a business firm receive tax credits in any

51

tax year in excess of $750,000 for contributions under

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1

subsections (a) and (b). In no case shall a business firm

2

receive tax credits in any tax year in excess of $250,000 for

3

contributions under subsection (c).

4

(e)  Pass-through entity.--

5

(1)  If a pass-through entity does not intend to use all

6

approved tax credits under this section, it may elect in

7

writing to transfer all or a portion of the tax credit to

8

shareholders, members or partners in proportion to the share

9

of the entity's distributive income to which the shareholder,

10

member or partner is entitled for use in the taxable year in

11

which the contribution is made or in the taxable year

12

immediately following the year in which the contribution is

13

made. The election shall designate the year in which the

14

transferred tax credits are to be used and shall be made

15

according to procedures established by the Department of

16

Revenue.

17

(2)  A pass-through entity and a shareholder, member or

18

partner of a pass-through entity shall not claim the tax

19

credit under this section for the same contribution.

20

(3)  The shareholder, member or partner may not carry

21

forward, carry back, obtain a refund of or sell or assign the

22

tax credit.

23

(4)  The shareholder, member or partner may claim the

24

credit on a joint return, but the tax credit may not exceed

25

the separate income of that shareholder, member or partner.

26

(f)  Restriction on applicability of credits.--No tax credits

27

shall be applied against any tax withheld by an employer from an

28

employee under Article III of the Tax Reform Code of 1971.

29

(g)  Time of application for credits.--

30

(1)  Except as provided in paragraph (2), the department

31

may accept applications for tax credits available during a

32

fiscal year no earlier than July 1 of each fiscal year.

33

(2)  The application of any business firm for tax credits

34

available during a fiscal year as part of the second year of

35

a two-year commitment or as a renewal of a two-year

36

commitment that was fulfilled in the previous fiscal year may

37

be accepted no earlier than May 15 preceding the fiscal year.

38

Section 2505-B.  Limitations.

39

(a)  Amount.--

40

(1)  (i)  For the fiscal year 2011-2012, the total

41

aggregate amount of all tax credits approved shall not

42

exceed $100,000,000.

43

(ii)  Not more than $67,000,000 of the total

44

aggregate amount of all tax credits approved shall be

45

used to provide tax credits for contributions from

46

business firms to scholarship organizations.

47

(iii)  Not more than $25,000,000 of the total

48

aggregate amount of all tax credits approved shall be

49

used to provide tax credits for contributions from

50

business firms to educational improvement organizations.

51

(iv)  Not more than $8,000,000 of the total aggregate

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1

amount of all tax credits approved shall be used to

2

provide tax credits for contributions from business firms

3

to prekindergarten scholarship organizations.

4

(2)  (i)  In the fiscal year 2012-2013 and each fiscal

5

year thereafter, the total aggregate amount of all tax

6

credits approved shall not exceed $200,000,000.

7

(ii)  Not more than $120,000,000 of the total

8

aggregate amount of all tax credits approved shall be

9

used to provide tax credits for contributions from

10

business firms to scholarship organizations.

11

(iii)  Not more than $60,000,000 of the total

12

aggregate amount of all tax credits approved shall be

13

used to provide tax credits for contributions from

14

business firms to educational improvement organizations.

15

(iv)  Not more than $20,000,000 of the total

16

aggregate amount of all tax credits approved shall be

17

used to provide tax credits for contributions from

18

business firms to prekindergarten scholarship

19

organizations.

20

(b)  Activities.--No tax credit shall be approved for

21

activities that are a part of a business firm's normal course of

22

business.

23

(c)  Tax liability.--

24

(1)  Except as provided in paragraph (2), a tax credit

25

granted for any one taxable year may not exceed the tax

26

liability of a business firm.

27

(2)  In the case of a credit granted to a pass-through

28

entity which elects to transfer the credit according to

29

section 2504-B(e), a tax credit granted for any one taxable

30

year and transferred to a shareholder, member or partner may

31

not exceed the tax liability of the shareholder, member or

32

partner.

33

(d)  Use.--A tax credit not used by the applicant in the

34

taxable year the contribution was made or in the year designated

35

by the shareholder, member or partner to whom the credit was

36

transferred under section 2504-B(e) may not be carried forward

37

or carried back and is not refundable or transferable.

38

(e)  Nontaxable income.--A scholarship received by an

39

eligible student or eligible prekindergarten student shall not

40

be considered to be taxable income for the purposes of Article

41

III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax

42

Reform Code of 1971.

43

Section 2506-B.  Lists.

44

The Department of Revenue shall provide to the General

45

Assembly, by June 30 of each year, a list of all scholarship

46

organizations, prekindergarten scholarship organizations and

47

educational improvement organizations that receive contributions

48

from business firms granted a tax credit.

49

Section 2507-B.  Guidelines.

50

The department, in consultation with the Department of

51

Education, shall develop guidelines to determine the eligibility

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1

of an innovative educational program.

2

Section 7.  The provisions of Article XXV-B of the act are

3

severable. If any provision of that article or its application

4

to any person or circumstance is held invalid, the invalidity

5

shall not affect other provisions or applications of that

6

article which can be given effect without the invalid provision

7

or application.

8

Section 8.  Repeals are as follows:

9

(1)  The General Assembly declares that the repeal under

10

paragraph (2) is necessary to effectuate the addition of

11

Article XXV-B of the act.

12

(2)  Article XVII-F and section 2902-E(b) of the act of

13

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

14

1971, are repealed.

15

Section 9.  The following provisions of the act shall apply

16

to charter school entities applying for or renewing a charter on

17

or after the effective date of this section:

18

(1)  The amendment of the definitions of "concurrent

19

student" and "school entity" in section 1602-B of the act.

20

(2)  The addition of the definition of "charter school

21

entity" in section 1602-B of the act.

22

(3)  The addition of section 1613-B(c) of the act.

23

(4)  The addition of Article XVII-C of the act.

24

Section 10.  This act shall take effect as follows: 

25

(1)  The following provisions shall take effect

26

immediately:

27

(i)  The amendment of Article X heading and section

28

1001 of the act.

29

(ii)  Section 1706-C of the act.

30

(iii)  The addition of Article XIX-G of the act.

31

(iv)  This section.

32

(2)  The following provisions shall take effect in 60

33

days:

34

(i)  Section 1704-C of the act. 

35

(ii)  Section 1705-C of the act.

36

(iii)  The addition of Article XXV-B of the act.

37

(iv)  Section 7 of this act.

38

(v)  Section 8 of this act.

39

(3)  The following provisions shall take effect October

40

1, 2012:

41

(i)  The repeal of section 1725-A of the act.

42

(ii)  Section 1728-C of the act.

43

(iii)  Section 9 of this act.

44

(4)  The remainder of this act shall take effect in 90

45

days.

  

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