Amendment 1604 to House Bill 1422 P.N. 1704, Regular Session 2023-2024

H1422B1704A01604 DMS:EJH 06/29/23 #90 A01604

AMENDMENTS TO HOUSE BILL NO. 1422

Sponsor: REPRESENTATIVE TOPPER

Printer's No. 1704

Amend Bill, page 1, lines 1 through 25, by striking out all

of said lines and inserting

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

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," in preliminary provisions, providing

for advertising; in pupils and attendance, providing for

transfer of attendance records to another school entity or

nonpublic school; and, in charter schools, further providing

for definitions, for charter school requirements, for powers

of board of trustees, for establishment of charter school,

for contents of application and for term and form of charter,

providing for amendments, further providing for facilities,

for enrollment and for tort liability, providing for fund

balance limits and further providing for cyber charter school

requirements and prohibitions, for school district and

intermediate unit responsibilities and for establishment of

cyber charter school.

Amend Bill, pages 2 through 61, lines 1 through 30; page 62,

lines 1 through 25; by striking out all of said lines on said

pages and inserting

Section 1. The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding sections

to read:

Section 130. Advertising.--(a) A paid media advertisement

by a public school entity that refers to the cost of tuition or

transportation shall not advertise those expenses as free, and

any reference to tuition or transportation costs must stipulate

that the cost is covered by taxpayer dollars. A paid media

advertisement shall include a television, radio or movie theater

advertisement, billboard, bus poster, newspaper, magazine,

publicly accessible Internet website or any other commercial

method that may promote enrollment in a public school entity.

(b) For the purposes of this section, the term "public

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school entity" shall mean a public school district, charter

school, cyber charter school, regional charter school,

intermediate unit or area career and technical school.

Section 1313.2. Transfer of Attendance Records to Another

School Entity or Nonpublic School.--(a) (1) Whenever a student

transfers to another school entity or nonpublic school within

this Commonwealth, a copy of the student's attendance record

shall be transmitted to the school entity or nonpublic school to

which the student has transferred.

(2) The school entity or nonpublic school to which the

student has transferred shall request the attendance record.

(3) The sending school entity or nonpublic school shall have

ten (10) days from the receipt of the request to provide a copy

of the student's attendance record.

(b) In the case of a student transferring during the course

of a school term, the student's unexcused absences shall be

included in the student's attendance record at the school entity

or nonpublic school to which the student has transferred for

that school term.

means a public school district, charter school, cyber charter

school, regional charter school, intermediate unit or area

career and technical school.

Section 2. Sections 1703-A and 1715-A of the act are amended

to read:

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

"Administrator" shall include an employe of a charter school

entity, including the chief administrator of a charter school

entity and any other employe, who by virtue of the employe's

position is responsible for taking official action of a

nonministerial nature with regard to contracting or procurement,

administering or monitoring grants or subsidies, managing or

regulating staff, student and school activities or any activity

where the official action has an economic impact of greater than

a de minimis nature on the interests of any person.

"Aid ratio" and "market value/income aid ratio" shall be:

(1) the aid ratio and market value/income aid ratio for the

school district that granted a charter to the charter school;

(2) for a regional charter school, the aid ratio and market

value/income aid ratio shall be a composite, as determined by

the department, based on the school districts that granted the

charter; or

(3) for a cyber charter school, the aid ratio and market

value/income aid ratio shall be that of the school district in

which the administrative offices of the cyber charter school are

located.

"Appeal board" shall mean the State Charter School Appeal

Board established by this article.

"Assessment" shall mean the Pennsylvania System of School

Assessment test, the Keystone Exam or another test established

or approved by the State board or the General Assembly to meet

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the requirements of section 2603-B or 2604-B or 22 Pa. Code §

4.51 (relating to State assessment system) or required under the

Every Student Succeeds Act (Public Law 114-95, 129 Stat. 1802)

or its successor Federal statute.

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

failure because of limited English proficiency, poverty,

community factors, truancy, academic difficulties or economic

disadvantage.

"Charter school" shall mean an independent public school

established and operated under a charter from the local board of

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

charter school must be organized as a public, nonprofit

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

entity.

["Chief executive officer" shall mean an individual appointed

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

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

staff member under this article.]

"Charter school entity" shall mean a charter school, regional

charter school or cyber charter school.

"Charter school foundation" shall mean a nonprofit

organization under section 501(c)(3) of the Internal Revenue

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

provides funding, resources or otherwise serves to support a

charter school entity, either directly or through an affiliated

entity.

"Chief administrator" shall mean an individual appointed by a

board of trustees to oversee and manage the operation of a

charter school entity. The term shall not include a professional

staff member under this article.

"Community college" shall mean a community college

established under Article XIX-A.

"Cyber charter school" shall mean an independent public

school established and operated under a charter from the

Department of Education and in which the school uses technology,

including electronic or digital books, in order to provide a

significant portion of its curriculum and to deliver a

significant portion of instruction to its students through the

Internet or other electronic means. A cyber charter school must

be organized as a public, nonprofit corporation. A charter may

not be granted to a for-profit entity.

"Department" shall mean the Department of Education of the

Commonwealth.

"Educational management service provider" shall mean a

nonprofit charter management organization, for-profit education

management organization, school design provider, business

manager or any other partner entity with which a board of

trustees of a charter school entity contracts to provide

educational design, business services, comprehensive management

or personnel functions or to implement the charter. The term

shall not include a charter school foundation.

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"Family member" shall mean a parent, stepparent, child,

stepchild, spouse, domestic partner, brother, sister,

stepbrother, stepsister, grandparent, grandchild, parent-in-law,

brother-in-law, sister-in-law, aunt, uncle or first cousin.

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

directors or other governing authority of a school district in

which a proposed or an approved charter school is located.

"Nonrelated" shall mean an individual who is not a family

member.

"Regional charter school" shall mean an independent public

school established and operated under a charter from more than

one local board of school directors and in which students are

enrolled or attend. A regional charter school must be organized

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

to any for-profit entity.

"School district of residence" shall mean the school district

in this Commonwealth in which [the parents or guardians of a

child reside.] a child resides as determined under section 1302

and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of

resident children to attend public schools).

"School entity" shall mean a school district, intermediate

unit, joint school or area career and technical school.

"Secretary" shall mean the Secretary of Education of the

Commonwealth.

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

Commonwealth.

"State System institution" shall mean a member institution of

the State System of Higher Education established under Article

XX-A.

Section 1715-A. Charter School Entity Requirements.--(a)

Charter [schools] school entities shall be required to comply

with the following provisions:

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

school entity is exempt from statutory requirements established

in this act, from regulations of the State board and the

standards of the secretary not specifically applicable to

charter [schools] school entities. Charter [schools] school

entities are not exempt from statutes applicable to public

schools other than this act.

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

parents, the public and the Commonwealth, with the delineation

of that accountability reflected in the charter. Strategies for

meaningful parent and community involvement shall be developed

and implemented by each school.

(3) A charter school entity shall not unlawfully

discriminate in admissions, hiring or operation.

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

operations.

(5) [A] (i) Subject to subparagraph (ii), a charter school

entity shall not provide any religious instruction, nor shall it

display religious objects and symbols on the premises of the

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charter school entity.

(ii) It shall not be a violation of this paragraph for a

charter school entity to utilize a sectarian facility:

(A) if the charter school entity provides for discrete and

separate entrances to buildings utilized for school purposes

only;

(B) if the religious objects and symbols within the portions

of the facility utilized by the school are covered or removed to

the extent reasonably feasible; or

common areas contain religious symbols and objects.

(6) A charter school entity shall not advocate unlawful

behavior.

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

laws and regulations as provided for in section 1732-A, or as

otherwise provided for in this [article] act.

(8) A charter school entity shall participate in the

Pennsylvania State Assessment System as provided for in 22 Pa.

Code Ch. 5 (relating to curriculum), or subsequent regulations

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

the school district in which the charter school entity is

located is scheduled to participate.

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

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

hours per year of instruction at the elementary level, or nine

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

secondary level. Nothing in this clause shall preclude the use

of computer and satellite linkages for delivering instruction to

students.

(9.1) (i) A cyber charter school shall electronically

distribute on a semi-annual basis to administrators, trustees,

employees, staff and parents and guardians of students of the

cyber charter school, a single-page document provided by the

Office of State Inspector General that describes the following:

(A) The powers of the Office of State Inspector General to

investigate claims of fraud, waste, misconduct and abuse.

(B) How to contact or file a complaint with the Office of

State Inspector General.

threaten to take action against an employee as a reprisal for

making a complaint or disclosing information to the Office of

State Inspector General, except if the complaint was made or the

information was disclosed with the knowledge that the complaint

or information was false or with willful disregard for the truth

or falsity of the complaint or information.

(ii) For purposes of this paragraph, a cyber charter school

shall be considered an executive agency for the purpose of

Article V-A of the act of April 9, 1929 (P.L.177, No.175), known

as "The Administrative Code of 1929."

(10) Boards of trustees and contractors of charter [schools]

school entities shall be subject to the following statutory

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requirements governing construction projects and construction-

related work:

(i) The following provisions of this act:

(A) Sections 751 and 751.1.

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

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

"Public Works Contractors' Bond Law of 1967."

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

entitled "An act regulating the letting of certain contracts for

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

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

the "Pennsylvania Prevailing Wage Act."

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

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

"Steel Products Procurement Act."

(11) Trustees of a charter school entity shall be public

officials[.

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

school shall not receive compensation from another charter

school or from a company that provides management or other

services to another charter school. The term "administrator"

shall include the chief executive officer of a charter school

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

their positions exercise management or operational oversight

responsibilities. A person who serves as an administrator for a

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

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

violation of this clause shall constitute a violation of 65

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

violator shall be subject to the penalties imposed under the

jurisdiction of the State Ethics Commission.] for the purposes

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

disclosure) and shall file a statement of financial interests

for the preceding calendar year with the State Ethics Commission

and either the local board of school directors in the case of a

charter school or regional charter school, or the department in

the case of a cyber charter school, not later than May 1 of each

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

member leaves the position. All members of the board of trustees

of a charter school entity shall take the oath of office as

required under section 321 before entering upon the duties of

their office.

(b) An individual who serves as an administrator for a

charter school entity shall be a public employe for the purposes

of 65 Pa.C.S. Ch. 11 and shall file a statement of financial

interests for the preceding calendar year with the board of

trustees not later than May 1 of each year that the person holds

the position and of the year after the person leaves the

position.

charter school entity may receive compensation from another

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charter school entity or from an educational management service

provider, unless:

(i) The administrator has submitted a sworn statement to the

board of trustees of the charter school entity and the sworn

statement details the work for the other entity and includes the

projected number of hours, rate of compensation and projected

duration.

(ii) The board of trustees of the charter school entity has

reviewed the sworn statement under subclause (i) and agreed, by

resolution, to grant permission to the administrator.

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

the resolution by the board of trustees granting the permission

under clause (1)(ii) shall be provided to, and kept on file

with, the charter school entity and the local board of school

directors or, in the case of a cyber charter school, the

department.

(3) No administrator of a charter school entity or family

member of the administrator may serve as a voting member of the

board of trustees of the charter school entity that employs the

administrator.

(4) (i) No administrator of a charter school entity may

participate in the selection, award or administration of a

contract if the person has a conflict of interest as that term

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

(ii) An administrator who knowingly violates this clause

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

restricted activities) and shall be subject to the penalties

imposed under the jurisdiction of the State Ethics Commission.

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

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

(5) An administrator shall be immediately dismissed upon

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

an offense pertaining to fraud, theft or mismanagement of public

funds or any crime involving moral turpitude.

(d) As used in this section, "charter school entity" shall

mean a charter school, regional charter school or cyber charter

school.

Section 3. Section 1716-A(c) of the act is amended and the

section is amended by adding subsections to read:

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

(b.1) (1) For a charter school or regional charter school

chartered after the effective date of this subsection, an

individual shall be prohibited from serving as a voting member

of the board of trustees of the charter school or regional

charter school if the individual or a family member receives

compensation from or is employed by or is a member of the local

board of school directors who participated in the initial

review, approval, oversight, evaluation or renewal process of

the charter school or regional charter school chartered by that

board.

(2) An employe of the school district that chartered a

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charter school or regional charter school may serve as a member

of the board of trustees of the charter school or regional

charter school without voting privileges.

(b.2) (1) No member of the board of trustees of a charter

school entity may participate in the selection, award or

administration of any contract if the member has a conflict of

interest as that term is defined in 65 Pa.C.S. § 1102 (relating

to definitions).

(2) Any member of the board of trustees of a charter school

entity who in the discharge of the person's official duties

would be required to vote on a matter that would result in a

conflict of interest shall abstain from voting and follow the

procedures required under 65 Pa.C.S. § 1103(j) (relating to

restricted activities).

(3) A member of the board of trustees of a charter school

entity who knowingly violates this subsection commits a

violation of 65 Pa.C.S. § 1103(a) and shall be subject to the

penalties imposed under the jurisdiction of the State Ethics

Commission.

(4) A contract made in violation of this subsection shall be

voidable by a court of competent jurisdiction if the suit is

commenced within ninety (90) days of the discovery of the

violation.

(5) No member of the board of trustees of a charter school

entity shall be compensated for duties on the board of trustees.

(b.3) A member of the board of trustees of a charter school

entity shall be automatically disqualified and immediately

removed from the board of trustees upon conviction for an

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

pertaining to fraud, theft or mismanagement of public funds, any

offense pertaining to the member's official capacity as a member

of the board of trustees or any crime involving moral turpitude.

3, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65

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

(d) (1) (i) The board of trustees of a charter school

entity shall consist of a minimum of five (5) nonrelated voting

members.

(ii) If a charter school entity has fewer than five (5)

nonrelated voting members serving on its board of trustees on

the effective date of this subsection, the charter school entity

shall, within sixty (60) days, appoint additional members to the

board of trustees to meet the minimum requirements of this

section.

(2) Within one (1) year of the effective date of this

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

charter school entity shall be a parent of a child currently

attending the charter school entity. The board of trustees

member provided for under this paragraph shall be eligible to

serve only so long as the child attends the charter school

entity. This paragraph shall not apply to a charter school that

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primarily serves adjudicated youth.

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

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

present at any meeting, no business may be transacted at the

meeting.

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

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

required in order to take official action on the subjects

enumerated under subsection (a).

(f) A charter school entity shall form an independent audit

committee of its board of trustees members which shall review at

the close of each fiscal year a complete certified audit of the

operations of the charter school entity. The audit shall be

conducted by a qualified independent certified public

accountant. The audit shall be conducted under generally

accepted audit standards of the Governmental Accounting

Standards Board and shall include the following:

(1) An enrollment test to verify the accuracy of student

enrollment and reporting to the Commonwealth.

(2) Full review of expense reimbursements for board of

trustees members and administrators, including sampling of all

reimbursements.

(3) Review of internal controls, including review of

receipts and disbursements.

(4) Review of annual Federal and State tax filings,

including the Internal Revenue Service Form 990, Return of

Organization Exempt from Income Tax and all related schedules

and appendices for the charter school entity and charter school

foundation, if applicable.

(5) Review of the financial statements of any charter school

foundation.

(6) Review of the selection and acceptance process of all

contracts publicly bid pursuant to section 751.

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

to internal controls, code of ethics, conflicts of interest,

whistle-blower protections, complaints from parents or the

public, compliance with 65 Pa.C.S. Ch. 7 (relating to open

meetings), finances, budgeting, audits, public bidding and

bonding.

(g) The certified audit under sub section (f) and the annual

budget under sub section (i) are public documents and shall be

made available on the charter school entity's publicly

accessible Internet website, if available, and, in the case of a

charter school or regional charter school, on the school

district's publicly accessible Internet website.

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

audit by the Auditor General, in addition to any other audits

required by Federal law or this act .

(i) A charter school entity shall annually provide the

department and, in the case of a charter school or regional

charter school, shall annually provide the school district with

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a copy of the annual budget for the operation of the charter

school entity that identifies the following:

(1) The source of funding for all expenditures.

(2) Where funding is provided by a charter school

foundation, the amount of funds and a description of the use of

the funds.

(3) The salaries of all administrators of the charter school

entity.

(4) All expenditures to an educational management service

provider.

(j) (1) Notwithstanding any other provision of law, a

charter school entity and any affiliated charter school

foundation shall make copies of its annual Federal and State tax

filings available upon request and on the charter school

entity's or foundation's publicly accessible Internet website,

if available, including Internal Revenue Service Form 990,

Return of Organization Exempt from Income Tax and all related

schedules and appendices.

(2) The charter school foundation shall also make copies of

its annual budget available upon request and on the foundation's

or the charter school entity's publicly accessible Internet

website within thirty (30) days of the close of the foundation's

fiscal year.

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

employes of the charter school foundation.

Section 4. Sections 1717-A(c), (d), (e) and (f), 1719-A and

1720-A of the act are amended to read:

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

submitted to the local board of school directors of the district

where the charter school will be located by [November 15]

October 1 of the school year preceding the school year in which

the charter school will be established except that for a charter

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

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

only, applications shall be limited to recipients of fiscal year

1996-1997 Department of Education charter school planning

grants.

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

application, the local board of school directors in which the

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

public hearing on the provisions of the charter application,

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

"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).

At least forty-five (45) days must transpire between the first

public hearing and the final decision of the board on the

charter application except that for a charter school beginning

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

transpire between the first public hearing and the final

decision of the board.

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

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first public hearing on the application, the local board of

school directors shall grant or deny the application. For a

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

board of school directors shall grant or deny the application no

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

(2) A charter school application submitted under this

article shall be evaluated by the local board of school

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

following:

(i) The demonstrated, sustainable support for the charter

school plan by teachers, parents, other community members and

students, including comments received at the public hearing held

under subsection (d).

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

terms of support and planning, to provide comprehensive learning

experiences to students pursuant to the adopted charter.

(iii) The extent to which the application considers the

information requested in section 1719-A and conforms to the

legislative intent outlined in section 1702-A.

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

model for other public schools and share best practices.

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

existing school being converted to a charter school, shall

establish the alternative arrangements for current students who

choose not to attend the charter school.

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

local board of school directors [of a school district] upon

affirmative vote by a majority of all the directors. Formal

action approving or denying the application shall be taken by

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

notice or consideration of the application given by the board,

under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

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

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

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

description of deficiencies in the application, shall be clearly

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

to the charter school applicant.

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

application may be revised and resubmitted to the local board of

school directors. Following the appointment and confirmation of

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

decision of the local board of school directors may be appealed

to the appeal board. When an application is revised and

resubmitted to the local board of school directors, the board

may schedule additional public hearings on the revised

application. The board shall consider the revised and

resubmitted application at the first board meeting occurring at

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

application by the board. For a revised application resubmitted

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

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application at the first board meeting occurring at least thirty

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

consideration of the revised application under [the "Sunshine

Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local

school board may be taken until July 1, 1999.

* * *

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

department shall create a standard application form for charter

school applicants seeking to establish a charter school entity

and a standard application form for existing charter school

entities seeking renewal of their charters. The department shall

transmit notice of the forms to the Legislative Reference Bureau

for publication in the next available issue of the Pennsylvania

Bulletin, and the forms shall be posted on the department's

publicly accessible Internet website. The forms shall include

all of the following information:

(1) The identification of the charter school applicant.

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

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

(4) [The proposed governance structure of the charter

school, including a description and method for the appointment

or election of members of the board of trustees.] An

organization chart clearly presenting the proposed governance

structure of the school, including lines of authority and

reporting between the board of trustees, administrators, staff

and any educational management service provider that will

provide management services to the charter school entity.

(4.1) A clear description of the roles and responsibilities

of the board of trustees, administrators and any other entities,

including a charter school foundation, shown in the organization

chart.

(4.2) A clear description of the method for the appointment

or election of members of the board of trustees.

(4.3) Standards for board of trustees' performance,

including compliance with all applicable laws, regulations and

terms of the charter.

(4.4) If the charter school entity intends to contract with

an educational management service provider for services, all of

the following shall apply:

(i) Evidence of the educational management service

provider's record in serving student populations, including

demonstrated academic achievement and demonstrated management of

nonacademic school functions, including proficiency with public-

school-based accounting, if applicable.

(ii) A draft contract, if the educational management service

provider has been engaged by the charter school entity, stating

all of the following:

(A) The officers, chief administrator and administrators of

the educational management service provider.

(B) The proposed duration of the service contract.

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school staff and the educational management service provider.

(D) The scope of services, personnel and resources to be

provided by the educational management service provider.

(E) Performance evaluation measures and timelines.

(F) The compensation structure, including clear

identification of all fees to be paid to the educational

management service provider.

(G) Methods of contract oversight and enforcement.

(H) Investment disclosure or the advance of moneys by the

educational management service provider on behalf of the charter

school entity.

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

(iii) Disclosure and explanation of any existing or

potential conflicts of interest between the members of the board

of trustees and the proposed educational management service

provider or any affiliated business entities, including a

charter school foundation qualified as a support organization

under the Internal Revenue Code of 1986 (Public Law 99-514, 26

U.S.C. § 1 et seq.).

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

entity, the curriculum to be offered and the methods of

assessing whether students are meeting educational goals.

(6) The admission and enrollment policy [and criteria for

evaluating the admission of students] which shall comply with

the requirements of section 1723-A.

(7) Procedures which will be used regarding the suspension

or expulsion of pupils. Said procedures shall comply with

section 1318.

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

be involved in the charter school entity planning process.

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

provisions which will be made for auditing the school under

[section 437] sections 437 and 1728-A, including the role of any

charter school foundation.

(10) Procedures which shall be established to review

complaints of parents regarding the operation of the charter

school entity.

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

in which the charter school entity will be located and the

ownership thereof and any lease arrangements.

(12) Information on the proposed school calendar for the

charter school entity, including the length of the school day

and school year consistent with the provisions of section 1502.

(13) The proposed faculty, if already determined, and a

professional development and continuing education plan for the

faculty and professional staff of [a] the charter school entity.

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

developed with the local school district regarding participation

of the charter school entity students in extracurricular

activities within the school district. Notwithstanding any

provision to the contrary, no school district of residence shall

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prohibit a student of a charter school entity from participating

in any extracurricular activity of that school district of

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

the requirements of participation in such activity and the

charter school entity does not provide the same extracurricular

activity.

(15) [A report] Reports of criminal history [record] records

and employment history reviews, pursuant to [section 111]

sections 111 and 111.1, for all individuals identified in the

application who shall have direct contact with students[.] and a

plan for satisfying the proper criminal history record

clearances and employment history reviews required for all other

staff.

(16) An official clearance statement regarding child injury

or abuse from the Department of [Public Welfare] Human Services

as required by 23 Pa.C.S. Ch. 63 Subch. [C.2 (relating to

background checks for employment in schools)] C (relating to

powers and duties of department) and section 111 for all

individuals identified in the application who shall have direct

contact with students[.] and a plan for satisfying the proper

official clearance statement regarding child injury or abuse

required for all other staff.

(17) How the charter school entity will provide adequate

liability and other appropriate insurance for the charter school

entity, its employes and the board of trustees of the charter

school entity.

(18) Policies regarding truancy, absences and withdrawal of

students, including the manner in which the charter school

entity will monitor attendance consistent with section 1715-A(9)

and the truancy provisions under Article XIII.

(19) Indicate whether the charter school entity will seek

accreditation by a nationally recognized accreditation agency,

including the Middle States Association of Colleges and Schools

or another regional institutional accrediting agency recognized

by the United States Department of Education or an equivalent

federally recognized body for charter school education.

(b) A local board of school directors may not impose

additional terms, develop its own application or require

additional information outside the standard application forms

required under subsection (a).

forms every three (3) years and shall submit any recommended

revisions in writing to the State board. No such recommended

revisions shall be made to the standard application forms unless

the revisions are approved by the State board. Revisions under

this subsection shall be as follows:

(1) The State board shall transmit notice of the

department's proposed revisions to the standard application

forms to the Legislative Reference Bureau for publication in the

next available issue of the Pennsylvania Bulletin. The State

board shall give at least thirty (30) days for the submission of

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public comment and shall hold at least one public hearing on the

proposed revisions.

(2) After the close of the public comment period and the

public hearing, the State board shall submit all public comments

and the transcript of the public hearing to the Education

Committee of the Senate and the Education C ommittee of the House

of Representatives.

(3) Prior to the State board approving any revisions, timely

and meaningful consultation with the chair and minority chair of

the Education C ommittee of the Senate and the chair and minority

chair of the Education C ommittee of the House of

Representatives, with the opportunity for input, must be given.

The department shall present the proposed revisions at a joint

hearing of the Education Committee of the Senate and the

Education Committee of the House of Representatives, if

requested, within 60 days of submission of public comments and

the transcript of the public hearing under paragraph (2).

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

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

written charter shall be developed which shall contain the

provisions of the standard charter application under section

1719-A and which shall be signed by the local board of school

directors [of a school district], by the local boards of school

directors [of a school district] in the case of a regional

charter school or by the chairman of the appeal board pursuant

to section [1717-A(i)(5)] 1717-A(i)(9) and the board of trustees

of the charter school or regional charter school. This written

charter, when duly signed by the local board of school directors

[of a school district, or], by the local boards of school

directors [of a school district] in the case of a regional

charter school or by the chairman of the appeal board, and the

charter school or regional charter school's board of trustees,

shall act as legal authorization for the establishment of a

charter school or regional charter school. This written charter

shall be legally binding on both the local board of school

directors [of a school district] and the charter school or

regional charter school's board of trustees. [Except as

otherwise provided in subsection (b), the charter shall be for a

period of no less than three (3) nor more than five (5) years

and may be renewed for five (5) year periods upon

reauthorization by the local board of school directors of a

school district or the appeal board.] If the charter school or

regional charter school contracts with an educational management

service provider, a contract shall be executed when the charter

is approved. A charter will be granted only for a school

organized as a public, nonprofit corporation.

(b) (1) Notwithstanding subsection [(a)] (c), a governing

board of a school district of the first class may renew a

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

directors determines that there is insufficient data concerning

the charter school's academic performance to adequately assess

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that performance and determines that an additional year of

performance data would yield sufficient data to assist the

governing board in its decision whether to renew the charter for

a period of five (5) years.

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

be considered an adjudication and may not be appealed to the

State Charter School Appeal Board.

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

class does not have the authority to renew a charter for

successive one (1) year periods.

local board of school directors:

(1) An initial charter executed pursuant to subsection (a)

shall be for a period of no less than three (3) years and no

more than five (5) years.

(2) For charter schools and regional charter schools, a

charter may be renewed for five (5) year periods upon

reauthorization by the local board of school directors or the

appeal board.

(d) (1) A charter school or regional charter school shall

submit a renewal application as provided under section 1719-A(a)

with the local board of school directors by October 1 of the

final year of the charter.

(2) Within one hundred twenty (120) days of the receipt of

the complete renewal application, the local board of school

directors shall vote to renew or not renew the charter.

(3) A decision by the appeal board under this subsection to

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

of school directors of a school district or school districts, as

appropriate, to sign the renewal of the charter for a charter

school or regional charter school as provided for in subsection

(a)(2). If the local board of school directors fails to sign the

renewal within ten (10) days of notice, the charter shall be

signed by the chairman of the appeal board.

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

Section 1720.1-A. Amendments.--(a) Subject to subsections

(a.1) and (a.2), a charter school or regional charter school may

request amendments to its approved written charter by filing a

written document describing the requested amendment with the

local board of school directors no later than October 15 of the

school year prior to the school year in which the amendment

would take effect.

(a.1) Notwithstanding the notice requirements of subsection

(a), in the event of the impossibility of a charter school's or

regional charter school's compliance with the terms of a charter

due to its inability to acquire services or products outlined in

a charter or facility damage, the charter school or regional

charter school shall immediately notify the local board of

school directors of the necessity for an emergency amendment,

which shall be effective immediately as a temporary amendment

pending completion of the processes set forth in subsections (b)

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and (c).

(a.2) For a five-year charter, a charter school or regional

charter school may only request amendments in year two, three or

four of the charter term. For a three-year charter, a charter

school or regional charter school may only request amendments in

year two of the charter term.

(b) Within sixty (60) days of receipt of the charter

amendment request, the local board of school directors shall

hold a public hearing on the requested amendment pursuant to 65

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

subsection (b), the local board of school directors shall grant

or deny the requested amendment. Failure by the local board of

school directors to hold a public hearing and to grant or deny

the requested amendment within the time periods specified in

this section shall be deemed an approval, after which the

amended charter shall be legally binding on both the local board

of school directors and the board of trustees of the charter

school or regional charter school.

(d) (Reserved).

(e) An applicant for an amendment may appeal the denial of a

requested amendment under this section to the appeal board

provided for under section 1721-A except that an applicant may

not appeal a denial of an amendment related to enrollment growth

or grade expansion.

(f) A charter school or regional charter school which has no

restrictions on enrollment expansion shall notify the local

board of school directors if it intends to expand enrollment by

more than ten per centum no later than December 15 of the school

year prior to the school year in which enrollment would be

expanded except notice may be given at any time in the case of

an emergency which requires increased enrollment. The

notification shall include the following:

(1) The planned enrollment levels for each grade for the

following school year.

(2) If applicable, a description of any changes to an

existing facility needed to accommodate the planned enrollment

levels.

(g) A charter school or regional charter school which has no

other restrictions in its charter shall notify the local board

of school directors if it intends to change the location of a

facility or facilities no later than December 15 of the school

year prior to the school year in which the facility change would

take place except notice may be given at any time in the case of

an emergency related to the facility. The notification shall

include the following:

(1) A description of the proposed new facility.

(2) Information showing that the proposed new facility is

suitable in accordance with the applicable school facility

requirements, including zoning, license and certification of

occupancy requirements.

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This subsection shall not apply to a charter school or

regional charter school seeking to operate a school at more than

one location, which must be requested through the amendment

process set forth in section 1720.1-A. A charter school or

regional charter school may operate at more than one location

within the district or districts that authorized the charter

without requesting an amendment if operation in more than one

location is permitted by the terms of the charter.

For purposes of this section, an "emergency" shall mean a

manmade or natural disaster, including, but not limited to,

damage to a school building, another circumstance rendering a

school building unfit or unsafe for use, a disease epidemic or a

hazardous weather condition. If another emergency arises that

requires expanded enrollment or a change in facility, the

charter school or regional charter school must consult with the

authorizing school district or school districts.

Section 6. Section 1722-A(a), (b) and (d) of the act are

amended and the section is amended by adding subsections to

read:

Section 1722-A. Facilities.--(a) A charter school entity

may be located in an existing public school building, in a part

of an existing public school building, in space provided on a

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

suitable location.

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

public school facility regulations except those pertaining to

the health or safety of [the pupils] students.

(b.1) (1) A charter school entity shall have the right of

first refusal to purchase or lease, for educational purposes

only, a public school building or a part of a public school

building that is for sale or lease by a school entity which is

the property titleholder, at the price of one of the following:

(i) The last best offer above fair market value received in

the ninety (90) days preceding the charter school entity's

offer.

(ii) Fair market value, if no offer has been received in the

ninety (90) days preceding the charter school entity's offer.

(iii) Below fair market value, upon the mutual agreement of

the school entity and the charter school entity.

(2) A school entity shall accept an offer from a charter

school entity that conforms to the provisions of paragraph (1).

(3) The department shall provide a page on its publicly

accessible Internet website on which school entities are

required to post a notice for each public school building or

part of a public school building that is available for purchase

or lease. A school entity shall submit a notice to the

department on a form developed by the department. The department

shall post the notice within five (5) days of receiving the

form.

(4) The following shall apply to the sale or lease of a

public school building or a part of a public school building by

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a school entity:

(i) A school entity may not enter into a contract to sell or

lease a building or part of a building until at least thirty

(30) days after the posting of a notice as required under

paragraph (3).

(ii) If two or more charter school entities make offers on

the same building or part of a building that conforms to the

provisions of this subsection, the school entity shall:

(A) Accept the first offer, if the offers are equal in

dollar amount.

(B) Accept the best offer, if the offers differ in dollar

amount.

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

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

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

location.] A charter school or regional charter school may

operate the school at more than one location within the district

that authorized the charter, as long as expressly permitted by

the terms of its charter.

* * *

(f) School districts, intermediate units, community colleges

and institutions under Article XX-A shall provide a cyber

charter school with reasonable access to their facilities for

the administration of standardized testing as follows:

(1) A cyber charter school shall provide an intermediate

unit, school district, community college or institution under

Article XX-A with at least sixty (60) days' notice of the need

for facilities to be used for the administration of standardized

tests.

(2) Within thirty (30) days of the cyber charter school's

request, the intermediate unit, school district, community

college or institution under Article XX-A shall notify the cyber

charter school of the location of the facilities that will be

provided, which shall be a quiet, separate location in which

cyber charter school students will not be commingled with

students of the intermediate unit, school district, community

college or institution under Article XX-A .

(3) An intermediate unit, school district of residence,

community college or institution under Article XX-A shall not be

required to make facilities available to a cyber charter school

on dates and at times that may cause undue interference with the

educational programs of the intermediate unit, school district,

community college or institution under Article XX-A .

(4) Any facilities rental fee charged to the cyber charter

school and the payment thereof shall be in compliance with the

facility rental policy of the intermediate unit, school

district, community college or institution under Article XX-A

that applies generally to all organizations and community

groups.

(g) As used in this section, "charter school entity" shall

mean a charter school, regional charter school or cyber charter

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school.

Section 7. Section 1723-A(a) and (b) of the act are amended

and the section is amended by adding subsections to read:

Section 1723-A. [Enrollment] Admission and Enrollment

Requirements.--(a) (1) All resident children in this

Commonwealth who submit a completed enrollment form in

accordance with clause s (3) and (4) qualify for admission to a

charter school entity within the provisions of subsection (b).

[If] In the case of a charter school or regional charter school,

if more students apply to the charter school or regional charter

school than the number of attendance slots available in the

school, then students must be selected on a random basis from a

pool of [qualified applicants meeting the established

eligibility criteria and submitting an application] eligible

applicants who have submitted an enrollment form in accordance

with clause s (3) and (4) by the deadline established by the

charter school or regional charter school, except that the

charter school or regional charter school may give preference in

enrollment to a child of a parent who has actively participated

in the development of the charter school [and] or regional

charter school, to siblings of students presently enrolled in

the charter school or regional charter school and to siblings of

students selected for enrollment during the lottery process.

First preference shall be given to students who reside in the

district or districts[.] in which the charter school is

physically located or in which the regional charter school is

chartered .

(2) If a charter school or regional charter school has a

waiting list following its initial selection of eligible

applicants under clause (1), the charter school or regional

charter school shall select and enroll eligible applicants from

the waiting list as spaces become available. All children shall

be assigned to the waiting list on a random basis. When

selecting and enrolling eligible applicants from the waiting

list, a charter school or regional charter school shall give

first preference to students as provided under clause (1) and to

those who reside in the district or districts in which the

charter school is physically located or in which the regional

charter school is chartered until the charter school or regional

charter school again reaches its maximum capacity of students.

If a charter school or regional charter school has a waiting

list, once the charter school or regional charter school has

exhausted the waiting list of resident children, it may then

enroll children on the waiting list who reside outside of the

district. Nonresident children shall also be selected and

enrolled on a random basis.

(3) The department, in consultation with representatives of

charter school entities, shall develop a standard enrollment

form in both paper and electronic formats that shall be used by

all eligible applicants to apply to a charter school entity. The

standard enrollment form shall only request information

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necessary to allow the charter school entity to identify the

student, grade level and residency, including:

(i) The student's name, physical address, telephone number,

age, birth date and current grade level.

(ii) The name, physical address, telephone number and e-mail

address of the student's parent or guardian.

(4) The standard enrollment form shall be made physically

available at each charter school entity, in a form that complies

with Federal and State law, and posted on the publicly

accessible Internet website of each charter school entity, if

available. A charter school entity may accept the enrollment

form via paper or electronic means.

(5) When a student applies to a charter school entity, a

charter school entity shall not require or request information

beyond the contents of the standard enrollment form developed by

the department.

(6) Nothing in this section shall prohibit a charter school

entity from requesting the submission of additional records and

information that public schools are entitled to receive after a

student is accepted for admission to, and has indicated an

intent to enroll in, the charter school entity.

(7) As used in this sub section , "eligible applicant" shall

mean a student who is seeking to enter a grade level offered by

the charter school entity and meets the requirements of 22 Pa.

Code §§ 11.12 (relating to school age), 11.13 (relating to

compulsory school age), 11.14 (relating to admission to

kindergarten when provided), 11.15 (relating to admission of

beginners), 11.16 (relating to early admission of beginners) and

12.1 (relating to free education and attendance) and student

residency requirements.

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

its admission policies or practices on the basis of intellectual

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

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

with a disability, proficiency in the English language or any

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

(2) A charter school entity may limit [admission] its

academic focus to a particular grade level, a targeted

population group composed of at-risk students[, or areas of

concentration of the school such as mathematics, science or the

arts. A charter school may establish reasonable criteria to

evaluate prospective students which shall be outlined in the

school's charter.] or a specialized area or accelerated program

of study, such as mathematics, science or the arts. A performing

arts charter school entity may establish reasonable artistic

criteria for admission for grades nine through twelve, which

must be outlined in the school's charter to evaluate prospective

students for enrollment.

* * *

(e) A school district's obligation to make payments for

students enrolled in a charter school entity shall be governed

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by section 1725-A or, in the case of students who are below a

school district's age of enrollment, by the terms of any charter

or service contract between a school district and a charter

school entity. Notwithstanding the above, absent language to the

contrary in a charter or service contract between a school

district and a charter school entity, a school district shall

not be obligated to fund a four-year-old kindergarten program if

the school district has exercised its discretion not to offer

such a program in its own schools.

(f) Upon notification of the nonrenewal or termination of a

charter under section 1729-A, a charter school may not enroll

new students unless the charter school files an appeal to the

Charter School Appeal Board. If the charter school's appeal is

denied by the Charter School Appeal Board, the charter school

must immediately stop enrolling new students.

Section 8. Section 1727-A of the act is amended to read:

Section 1727-A. [Tort Liability] Liability and Security.--

(a) For purposes of tort liability, employes of the charter

school shall be considered public employes and the board of

trustees shall be considered the public employer in the same

manner as political subdivisions and local agencies. The board

of trustees of a charter school and the charter school shall be

solely liable for any and all damages of any kind resulting from

any legal challenge involving the operation of a charter school.

Notwithstanding this requirement, the local board of directors

of a school entity shall not be held liable for any activity or

operation related to the program of the charter school.

(b) (1) A charter school shall possess and maintain

adequate and appropriate insurance, bond or other security as

provided under section 1719-A(a)(17). The insurance, bond or

other security shall be continuously maintained and shall

provide coverage during the time the charter school is in

operation and for sufficient time following the charter school's

closure to make payment on all claims known or which could have

been known to exist at the time of the school's closure.

(2) The insurance, bond or other security shall provide

coverage for educational services and fees and costs incurred by

a charter school and prevailing parties under the Individuals

with Disabilities Education Act (Public Law 91-230, 20 U.S.C. §

1400 et seq.), section 504 of the Rehabilitation Act of 1973

(Public Law 93-112, 29 U.S.C. § 701 et seq.) and related Federal

or State laws, salary and wage payments due to employes,

employer and employe contributions for the Pennsylvania School

Employees Retirement System and other retirement programs

offered to employes, medical and other health insurance benefits

offered to employes, workers compensation, unemployment

compensation and taxes and other liabilities to Federal, State

and local tax agencies, school district overpayments under

section 1725-A and other liabilities reasonably connected to the

charter school's operations.

(3) The insurance, bond or other security shall name as

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additional insureds, or otherwise provide coverage for, the

charter authorizer and the Commonwealth and its agencies and

officials.

(4) Evidence of adequate and appropriate insurance, bond or

other security as required by this subsection shall be made

available to the local board of school directors and the

department at the time of initial application and at the time of

submission of the charter renewal application. The charter

school shall also provide evidence of the insurance, bond or

other security to parents or employes of the charter school or

to the local board of school directors or the department upon

request. The charter school shall provide written notice to the

local board of school directors and to the department within ten

(10) days of any change to the insurance, bond or security.

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

Section 1731.1-A. Fund Balance Limits.--Fund balance limits

shall be as follows:

(1) For the 2018-2019 school year and each school year

thereafter , a charter school entity shall not accumulate an

unassigned fund balance greater than the charter school entity

unassigned fund balance limit, which will be determined as

follows:

Charter School Entity

Total Budgeted Expenditures

Maximum Unassigned Fund

Balance as Percentage of

Total Budgeted Expenditures

Less than or equal to $11,999,999 12%

Between $12,000,000 and $12,999,999 11.5%

Between $13,000,000 and $13,999,999 11%

Between $14,000,000 and $14,999,999 10.5%

Between $15,000,000 and $15,999,999 10%

Between $16,000,000 and $16,999,999 9.5%

Between $17,000,000 and $17,999,999 9%

Between $18,000,000 and $18,999,999 8.5%

Greater than or equal to $19,000,000 8%

(2) For the 2018-2019 school year and each school year

thereafter , any unassigned fund balance in place on June 30,

2019, and on June 30 of each year thereafter in excess of the

charter school entity unassigned fund balance limit shall be

refunded on a pro rata basis within ninety (90) days to all

school districts that paid tuition to the charter school entity

in the prior school year, based upon the number of students for

whom each school district paid tuition to the charter school

entity multiplied by the school district's per student payment

under section 1725-A.

(3) By October 31, 2019, and by October 31 of each year

thereafter , each charter school entity shall provide the

department and all school districts that paid tuition to the

charter school entity in the prior school year with information

certifying compliance with this section . The information shall

be provided in a form and manner prescribed by the department

and shall include information on the charter school entity's

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estimated ending unassigned fund balance expressed as a dollar

amount and as a percentage of the charter school entity's total

budgeted expenditures for that school year.

(4) Unassigned funds of the charter school entity in excess

of the unassigned fund balance limit may not be used to pay

bonuses to any administrator, board of trustees member, employe,

staff member or contractor and may not be transferred to a

charter school foundation. If a charter school entity uses funds

in excess of the unassigned fund balance limit to pay bonuses to

any administrator, board of trustees member, employe, staff

member or contractor or transfers such funds to a charter school

foundation, the value of the bonus payment or fund transfer

shall be refunded on a pro rata basis to all school districts

that paid tuition to the charter school entity in the prior

school year, based upon the number of students for whom each

school district paid tuition to the charter school entity

multiplied by the school district's per student payment under

section 1725-A.

(5) As used in this section , "unassigned fund balance" shall

mean that portion of the fund balance of a charter school entity

that provides funding that serves to support the charter school

entity that is:

(i) available for expenditure or not legally or otherwise

segregated for a specific or tentative future use; and

(ii) held in the General Fund accounts of the charter school

entity.

Section 10. Sections 1743-A(e), 1744-A(2) and 1745-A of the

act are amended to read:

Section 1743-A. Cyber charter school requirements and

prohibitions.

* * *

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

school shall:

(1) provide all instructional materials, which may

include electronic or digital books in place of textbooks;

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

to, a computer, computer monitor and printer, provided that a

parent or guardian of more than one child who is enrolled in

the same cyber charter school may elect not to receive a

separate computer, computer monitor and printer for each

enrolled child; and

(3) provide or reimburse for all technology and services

necessary for the on-line delivery of the curriculum and

instruction.

The Commonwealth shall not be liable for any reimbursement owed

to students, parents or guardians by a cyber charter school

under paragraph (3).

* * *

Section 1744-A. School district and intermediate unit

responsibilities.

An intermediate unit or a school district in which a student

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

following:

* * *

[(2) Provide the cyber charter school with reasonable

access to its facilities for the administration of

standardized tests required under this subdivision.]

* * *

Section 1745-A. Establishment of cyber charter school.

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

established by an individual; one or more teachers who will

teach at the proposed cyber charter school; parents or guardians

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

nonsectarian college, university or museum located in this

Commonwealth; a nonsectarian corporation not-for-profit as

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

corporation, association or partnership; or any combination of

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

school established under this subdivision.

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

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

sectarian school, institution or other entity.

(b.1) Local board of school directors or intermediate

unit.--

(1) Nothing in this article shall be construed to

preclude a school district or an intermediate unit from

offering instruction via the Internet or other electronic

means, except that the instruction shall not be recognized as

a cyber charter school under this article unless the school

district or intermediate unit establishes a cyber charter

school under subsection (a) and paragraph (2).

(2) A cyber charter school may be established by a local

board of school directors or an intermediate unit if the

procedures and requirements of this article are satisfied.

satisfy requirements for compulsory attendance.

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

charter school shall be submitted to the department by October 1

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

charter school proposes to commence operation.

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

application, the department shall grant or deny the application.

The department shall review the application and shall hold at

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

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

department shall publish in the Pennsylvania Bulletin and on the

department's [World Wide Web site] publicly accessible Internet

website notice of the hearing and the purpose of the

application.

(f) Evaluation criteria.--

(1) A cyber charter school application pursuant to

section 1719-A submitted under this subdivision shall be

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evaluated by the department based on the following criteria:

(i) The demonstrated, sustainable support for the

cyber charter school plan by teachers, parents or

guardians and students.

(ii) The capability of the cyber charter school

applicant, in terms of support and planning, to provide

comprehensive learning experiences to students under the

charter.

(iii) The extent to which the programs outlined in

the application will enable students to meet the academic

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

standards and assessment) or subsequent regulations

promulgated to replace 22 Pa. Code Ch. 4.

(iv) The extent to which the application meets the

requirements of section 1747-A.

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

serve as a model for other public schools.

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

be sent by certified mail to the applicant and published on

the department's [World Wide Web site] publicly accessible

Internet website. If the application is denied, the reasons

for denial, including a description of deficiencies in the

application, shall be clearly stated in the notice.

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

a written charter shall be developed which shall contain the

provisions of the charter application and be signed by the

secretary and each member of the board of trustees of the

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

act as legal authorization of the establishment of a cyber

charter school. The charter shall be legally binding on the

department, the cyber charter school and its board of

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

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

period of five years by the department.] term shall be as

follows:

(i) An initial charter granted under this section

shall be for a period of no less than three years and no

more than five years.

(ii) For cyber charter schools, a charter may be

renewed for five-year periods upon reauthorization by the

department.

(4) (i) A cyber charter school shall submit a renewal

application as provided under section 1719-A with the

department by October 1 of the final year of the charter.

(ii) Within 120 days of its receipt of the renewal

application, the department shall renew or not renew the

charter.

[(4)] (5) The decision of the department to deny an

application may be appealed to the appeal board.

(6) (i) Subject to subparagraph (ii), a cyber charter

school may request amendments to its approved written

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charter by filing with the department a written document

describing the requested amendment no later than October

15 of the school year prior to the school year in which

the amendment would take effect.

(ii) Notwithstanding the notice requirements of

subparagraph (i), in the event of the impossibility of a

cyber charter school's compliance with the terms of a

charter due to its inability to acquire services or

products outlined in a charter or facility damage, the

cyber charter school shall immediately notify the

department of the necessity for an emergency amendment,

which shall be effective immediately as a temporary

amendment pending completion of the processes set forth

in paragraphs (7) and (8).

(iii) For a five-year charter, a cyber charter

school may only request amendments in year two, three or

four of the charter term. For a three-year charter, a

cyber charter school may only request amendments in year

two.

(7) Within 60 days of its receipt of the charter

amendment request, the department shall hold a public hearing

on the requested amendment under 65 Pa.C.S. Ch. 7.

(8) Within 60 days after the hearing required under

paragraph (7), the department shall grant or deny the

requested amendment. Failure by the department to hold a

public hearing and to grant or deny the requested amendment

within the time periods specified in this section shall be

deemed an approval, after which the amended charter shall be

legally binding on both the department and the board of

trustees of the cyber charter school.

(9) An applicant for an amendment may appeal the denial

of a requested amendment under this section to the appeal

board provided for under section 1721-A except that an

applicant may not appeal a denial related to enrollment

growth or grade expansion.

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

may revise and resubmit a denied application to the department.

The department shall grant or deny the revised application

within 60 days after its receipt.

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

public hearing or to approve or disapprove the charter, the

applicant may file its application as an appeal to the appeal

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

decision to approve or disapprove the charter based on the

criteria in subsection (f).

Section 11. This act shall take effect as follows:

(1) The addition of section 130 of the act shall take

effect in six months.

(2) This section shall take effect immediately.

(3) The remainder of this act shall take effect in 60

days.

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