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        PRIOR PRINTER'S NOS. 444, 1751, 1995,         PRINTER'S NO. 4196
        3839

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 4 Session of 2001


                     Report of the Committee of Conference

        To the Members of the House of Representatives and Senate:

           We, the undersigned, Committee of Conference on the part of
        the House of Representatives and Senate for the purpose of
        considering House Bill No. 4, entitled:
        "An act authorizing the maintenance and operation of
        multipurpose service centers for displaced homemakers and single
        parents; and providing for powers and duties of the Department
        of Education,"




        respectfully submit the following bill as our report:

                                           SAMUEL H. SMITH

                                           JESS M. STAIRS

                                           DWIGHT EVANS

                (Committee on the part of the House of Representatives.)

                                           JAMES J. RHOADES

                                           DAVID J. BRIGHTBILL



                                  (Committee on the part of the Senate.)


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    20010H0004B4196                  - 2 -

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further defining the "Pennsylvania
     6     System of School Assessment test" or "PSSA test"; providing
     7     for report of graduate rates for certain colleges and
     8     universities; further providing for establishment of
     9     independent schools, for school athletics, publications and
    10     organizations, for retention of records and for annual
    11     budgets; providing for membership of the School Reform
    12     Commission and responsibilities relating to financial matters
    13     of first class school districts in distress; further
    14     providing for intermediate unit board of directors; providing
    15     for conditional employment; further providing for age limits
    16     and temporary residence and for educational support services
    17     definitions and providers, for high school certificates, for
    18     charter school definitions, for funding for charter schools
    19     and for provisions applicable to charter schools; adding
    20     provisions for cyber charter schools; further providing for
    21     regulations and provisions applicable to charter schools, for
    22     education empowerment districts, for waivers, for alternative
    23     education and for trustee councils in institutions of the
    24     State System of Higher Education; providing for placement of
    25     adjudicated delinquents in first class school districts;
    26     further providing for Commonwealth reimbursement definitions,
    27     for small district assistance and for temporary special aid
    28     to certain school districts; providing for basic education
    29     funding for 2001-2002 school year; further providing for
    30     payments to intermediate units, for payments on account of
    31     transportation of nonpublic school pupils, for special
    32     education payments and for certain payments; providing for
    33     Commonwealth reimbursement for charter schools and cyber
    34     charter schools; further providing for school performance
    35     incentives; authorizing the Multipurpose Service Center Grant
    36     Program; further providing for powers and duties of the State
    37     Board of Education; and making an appropriation.

    38     The General Assembly of the Commonwealth of Pennsylvania
    39  hereby enacts as follows:
    40     Section 1.  Section 102(6) of the act of March 10, 1949
    41  (P.L.30, No.14), known as the Public School Code of 1949,
    42  amended June 22, 2001 (P.L.530, No.35), is amended to read:
    43     Section 102.  Definitions.--When used in this act the
    44  following words and phrases shall have the following meanings:
    45     * * *
    46     (6)  "Pennsylvania System of School Assessment test" or "PSSA
    47  test" shall mean a test developed and implemented by the
    20010H0004B4196                  - 3 -

     1  Department of Education to determine only academic achievement
     2  relating to objective academic standards in the areas of
     3  reading, writing, mathematics and science. The PSSA test shall
     4  be developed and implemented as necessary to comply with Federal
     5  law.
     6     Section 2.  The act is amended by adding a section to read:
     7     Section 114.  Report of Graduate Rates for Certain Colleges
     8  and Universities.--(a)  The Department of Education shall
     9  annually conduct a survey related to completion of undergraduate
    10  degree programs by students who are residents of this
    11  Commonwealth in four (4) year, public colleges and universities
    12  and in private, not-for-profit colleges and universities in this
    13  Commonwealth. The survey shall include the following information
    14  for each college or university:
    15     (1)  the number and percentage of first-time, full-time
    16  students who graduate in four (4) years or less; and
    17     (2)  the number and percentage of first-time, full-time
    18  students enrolled in approved five (5) year programs who
    19  graduate in five (5) years or less.
    20     (b)  By January 15, 2003, and each year thereafter, the
    21  department shall publish the results of the survey on its World
    22  Wide Web site and provide a copy to the Governor, the chairman
    23  and minority chairman of the Appropriations Committee of the
    24  Senate, the chairman and minority chairman of the Appropriations
    25  Committee of the House of Representatives, the chairman and
    26  minority chairman of the Education Committee of the Senate, and
    27  the chairman and minority chairman of the Education Committee of
    28  the House of Representatives.
    29     (c)  The department shall develop guidelines to implement the
    30  requirements of this section.
    20010H0004B4196                  - 4 -

     1     Section 3.  Section 502.1(f) of the act, added May 17, 2001
     2  (P.L.4, No.4), is amended to read:
     3     Section 502.1.  Establishment of Independent Schools.--* * *
     4     (f)  The department may award planning grants for the
     5  conversion of schools to independent schools. The total amount
     6  of grants awarded shall be limited to funds appropriated for
     7  this purpose. Grant applications shall be filed in accordance
     8  with procedures developed by the department.
     9     Section 4.  Section 511(e) of the act, amended June 29, 1984
    10  (P.L.438, No.93), is amended to read:
    11     Section 511.  School Athletics, Publications, and
    12  Organizations.--
    13     * * *
    14     [(e)  All purchases of materials or supplies made by any
    15  organization, club, society, or group, or by any school or
    16  class, in excess of one thousand dollars, shall be made upon
    17  solicitation of quotations or bids from three or more
    18  responsible manufacturers of or dealers in such materials or
    19  supplies. All such purchases shall be made from the lowest
    20  responsible bidder on the basis of price, quality and service.]
    21     (e)  All purchases of materials or supplies made by any
    22  organization, club, society or group, or by any school or class
    23  shall be made by the purchaser in accordance with the
    24  requirements of section 807.1.
    25     * * *
    26     Section 5.  Section 518 of the act, amended June 17, 1982
    27  (P.L.525, No.149), is amended to read:
    28     Section 518.  Retention of Records.--Every board of school
    29  directors shall retain as a permanent record of the district,
    30  the minute book, each annual auditor's report, and each annual
    20010H0004B4196                  - 5 -

     1  financial report. All other financial records of the district,
     2  including financial account books, orders, bills, contracts,
     3  invoices, receipts, and purchase orders shall be retained by the
     4  district for a period of not less than six years. Records may be
     5  retained as [photographed, microphotographed or microfilmed
     6  copies] recorded or copied in accordance with [the act of
     7  January 18, 1968 (1967 P.L.961, No.428), known as the "Municipal
     8  Records Act."] 53 Pa.C.S. Ch. 13 Subch. F (relating to records).
     9     Section 6.  Section 687 of the act is amended by adding a
    10  subsection to read:
    11     Section 687.  Annual Budget; Additional or Increased
    12  Appropriations; Transfer of Funds.--* * *
    13     (i)  (1)  Notwithstanding any other provisions of this act,
    14  the board of school directors of each school district is
    15  required to and shall reopen its 2002-2003 budget during the
    16  month of July 2002 to reflect the increased State allocations
    17  under sections 2502.13, 2502.40, 2509.3 and 2591.1 for fiscal
    18  year 2002-2003 provided by the General Assembly through the act
    19  of      known as the "General Appropriation Act of 2002."
    20     (2)  In those school districts which levy taxes and where the
    21  increased State allocations exceed the State revenue figures
    22  utilized by the school district at the time of adoption of its
    23  original fiscal year 2002-2003 budget, the board of school
    24  directors shall use the increases in State allocations to do any
    25  of the following:
    26     (i)  abate any local taxes which were levied at the time of
    27  original budget adoption. Such tax abatements shall occur within
    28  sixty (60) days of the reopening of the school district's budget
    29  and may take the form of tax reductions, rebates or credits;
    30     (ii)  reduce or retire any outstanding indebtedness of the
    20010H0004B4196                  - 6 -

     1  school district; or
     2     (iii)  restore funding to any educational programs which were
     3  reduced or eliminated for the 2002-2003 school year.
     4     (3)  Under no circumstances shall any increased State
     5  allocations be used to increase a school district's reserved or
     6  unreserved fund balance.
     7     Section 7.  Section 696(a), (b) and (h) of the act, amended
     8  October 30, 2001 (P.L.828, No.83), are amended to read:
     9     Section 696.  Distress in School Districts of the First
    10  Class.--(a)  Within thirty (30) days of a declaration by the
    11  Secretary of Education that a school district of the first class
    12  is distressed under section 691(c), a School Reform Commission
    13  shall be established consisting of four members initially
    14  appointed by the Governor and one member initially appointed by
    15  the mayor of the city coterminous with the school district. The
    16  School Reform Commission shall be an instrumentality of a school
    17  district of the first class, exercising the powers of the board
    18  of school directors. The Governor shall appoint a chairman of
    19  the School Reform Commission. At least three of the commission
    20  members, including the member appointed by the mayor, must be
    21  residents of the school district.
    22     (b)  Membership of the School Reform Commission shall be as
    23  follows:
    24     (1)  Members appointed pursuant to this section shall serve
    25  terms as follows:
    26     (i)  Two of the members appointed by the Governor shall serve
    27  initial terms of seven (7) years.
    28     (ii)  One of the members appointed by the Governor shall
    29  serve an initial term of five (5) years.
    30     (iii)  One of the members appointed by the Governor shall
    20010H0004B4196                  - 7 -

     1  serve an initial term of three (3) years. Upon the expiration of
     2  the initial term of this member, the mayor shall appoint an
     3  individual to fill this position.
     4     (iv)  The member appointed by the mayor shall serve an
     5  initial term of three (3) years.
     6     (v)  After the expiration of each initial term[, a subsequent
     7  term shall be for four (4) years.]:
     8     (A)  Members appointed by the Governor under subclauses (i)
     9  and (ii) shall be appointed for a term of five (5) years.
    10     (B)  Members appointed by the mayor under subclauses (iii)
    11  and (iv) shall be appointed for a term of four (4) years.
    12     (2)  Except as authorized in this subsection, no commission
    13  member may be removed from office during a term. The Governor
    14  may, upon proof by clear and convincing evidence of malfeasance
    15  or misfeasance in office, remove a commission member prior to
    16  the expiration of the term. Before a commission member is
    17  removed, that member must be provided with a written statement
    18  of the reasons for removal and an opportunity for a hearing in
    19  accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to practice
    20  and procedure of Commonwealth agencies) and Ch. 7 Subch. A
    21  (relating to judicial review of Commonwealth agency action).
    22     (3)  Upon the expiration of term or the occurrence of a
    23  vacancy in the office of a commission member appointed by the
    24  Governor, the Governor shall appoint, with the consent of a
    25  majority of the members elected to the Senate, the successor
    26  member. Upon the expiration of term or the occurrence of a
    27  vacancy in the office of a commission member appointed by the
    28  mayor, the mayor shall appoint the successor member. An
    29  appointment to fill a vacancy shall be for the balance of the
    30  unexpired term.
    20010H0004B4196                  - 8 -

     1     (4)  A commission member shall hold office until a successor
     2  has been appointed and qualified.
     3     (5)  A commission member may serve successive terms.
     4     (6)  No commission member may, while in the service of the
     5  School Reform Commission, seek or hold a position as any other
     6  public official within this Commonwealth or as an officer of a
     7  political party.
     8     (7)  Commission members shall be reimbursed for reasonable
     9  and necessary expenses incurred in the performance of their
    10  official duties from funds of the school district.
    11     * * *
    12     (h)  The School Reform Commission shall be responsible for
    13  financial matters related to the distressed school district of
    14  the first class and:
    15     (1)  All taxes authorized to be levied by a school district
    16  of the first class or for a school district of the first class
    17  by a city or county of the first class on the date of the
    18  declaration of distress shall continue to be authorized and
    19  levied in accordance with this act and shall be transmitted to
    20  the school district. For the first fiscal year or part thereof
    21  and every fiscal year thereafter in which the school district is
    22  declared to be distressed, the amount appropriated or paid by
    23  the city or county to the school district and the tax authorized
    24  by the city or county to be levied for the school district or
    25  dedicated to the school district, shall be [in] an amount or tax
    26  not less than the highest amount paid by the city or county to
    27  the school district or authorized by the city or county to be
    28  levied for the school district or dedicated to the school
    29  district during any of the three full preceding fiscal years. In
    30  addition, the city of the first class shall provide to the
    20010H0004B4196                  - 9 -

     1  school district of the first class all other available local
     2  non-tax revenue, including grants, subsidies or payments made
     3  during the prior year.
     4     (2)  In addition to the moneys collected under paragraph (1),
     5  the city of the first class shall remit to the school district
     6  of the first class for each year that the school district is
     7  declared distressed that portion of all other local tax revenue
     8  levied for a full fiscal year by a city or county of the first
     9  class coterminous with a school district of the first class that
    10  was allocated to the school district prior to the school
    11  district being declared distressed in accordance with section
    12  691(c).
    13     (3)  All taxes collected on behalf of a school district of
    14  the first class by any person or entity, including a city or
    15  county of the first class, shall be promptly paid following
    16  collection to the School Reform Commission for the benefit of
    17  the school district.
    18     (4)  In the event the city or county of the first class does
    19  not meet the financial obligations prescribed in this
    20  subsection, the Commonwealth may apply to that obligation any
    21  amounts otherwise due from the Commonwealth to the city or
    22  county of the first class, including, but not limited to,
    23  grants, awards and moneys collected by the Commonwealth on
    24  behalf of the city or county of the first class. Funds withheld
    25  shall be maintained in a separate account by the State Treasurer
    26  to be disbursed as determined by the Secretary of Education in
    27  consultation with the State Treasurer.
    28     (5)  The School Reform Commission shall adopt a budget.
    29     * * *
    30     Section 8.  Section 910-A(a) of the act, amended December 19,
    20010H0004B4196                 - 10 -

     1  1980 (P.L.1314, No.237), is amended to read:
     2     Section 910-A.  Intermediate Unit Board of Directors.--(a)
     3  The intermediate unit board of directors shall be composed of
     4  thirteen members except as otherwise provided for in this
     5  subsection, chosen for terms of three years from among members
     6  of the boards of school directors of school districts comprising
     7  the intermediate unit. An intermediate unit director may succeed
     8  himself without limitation as to the number of terms. Where
     9  there are fewer than thirteen school districts within an
    10  intermediate unit, there shall be one school director from each
    11  school district elected to the intermediate unit board of
    12  directors, but any such intermediate unit board of directors may
    13  elect one additional at-large member. When there are more than
    14  thirteen districts in an intermediate unit each district, as far
    15  as practicable, may have one member on the unit board, up to a
    16  maximum of [twenty] twenty-two members. The election of
    17  intermediate unit boards of directors shall be by proportionate
    18  ballot, and each school director of each school district within
    19  an intermediate unit shall be entitled to cast votes determined
    20  by dividing the weighted average daily membership of the school
    21  district by the total weighted average daily membership within
    22  the intermediate unit, multiplying the quotient so obtained by
    23  one thousand, dividing the product so obtained by the number of
    24  directors as provided for above, and rounding such dividend to
    25  the nearest whole number: Provided, however, That each school
    26  director shall have at least one vote. The Secretary of
    27  Education shall annually, not later than the first day of
    28  February, certify the weighted average daily membership for the
    29  previous school year for each school district and for each
    30  intermediate unit, and shall compute the number of votes to
    20010H0004B4196                 - 11 -

     1  which each school director of each school district within an
     2  intermediate unit shall be entitled.
     3     * * *
     4     Section 9.  The act is amended by adding a section to read:
     5     Section 1109.2.  Conditional Employment.--(a)  A board of
     6  school directors may enter into an agreement to employ an
     7  individual as a temporary professional employe who, within six
     8  months of the date of expected graduation from an approved
     9  Pennsylvania college or university, presents a letter verifying
    10  that the individual is enrolled in an approved teacher
    11  preparation program in that institution; and will complete all
    12  requirements for the conferring of a bachelor's degree on a date
    13  certain as specified.
    14     (b)  The validity of this agreement shall be contingent upon
    15  all of the following conditions being met prior to the actual
    16  commencement of the individual's employment as a temporary
    17  professional employe:
    18     (1)  The conferring of a bachelor's degree.
    19     (2)  The individual having obtained a teaching certificate
    20  from the Commonwealth of Pennsylvania in the area of assignment
    21  or certification specified in the agreement.
    22     Section 10.  Section 1301 of the act is amended to read:
    23     Section 1301.  Age Limits; Temporary Residence.--Every child,
    24  being a resident of any school district, between the ages of six
    25  (6) and twenty-one (21) years, may attend the public schools in
    26  his district, subject to the provisions of this act.
    27  Notwithstanding any other provision of law to the contrary, a
    28  child who attains the age of twenty-one (21) years during the
    29  school term and who has not graduated from high school may
    30  continue to attend the public schools in his district free of
    20010H0004B4196                 - 12 -

     1  charge until the end of the school term. The board of school
     2  directors of any school district may admit to the schools of the
     3  district, with or without the payment of tuition, any non-
     4  resident child temporarily residing in the district, and may
     5  require the attendance of such non-resident child in the same
     6  manner and on the same conditions as it requires the attendance
     7  of a resident child.
     8     Section 11.  Sections 1501-C and 1505-C of the act, added May
     9  17, 2001 (P.L.4, No.4), are amended to read:
    10  Section 1501-C.  Definitions.
    11     The following words and phrases when used in this article
    12  shall have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Department."  The Department of Education of the
    15  Commonwealth.
    16     "Eligible student."  A resident of this Commonwealth who is
    17  enrolled in third, fourth, fifth or sixth grade in a school
    18  entity and is deemed eligible pursuant to section 1502-C(b).
    19     "Eligibility test."  The Pennsylvania System of School
    20  Assessment or a commercially prepared, [norm-referenced,]
    21  standardized achievement test approved by the Department of
    22  Education. A list of approved tests under this article shall be
    23  published annually in the Pennsylvania Bulletin.
    24     "Grant."  A grant awarded to a grant recipient under this
    25  article.
    26     "Grant recipient."  A resident of this Commonwealth who is a
    27  parent, guardian or person in parental relation to an eligible
    28  student.
    29     "Program."  The Education Support Services Program
    30  established in section 1502-C.
    20010H0004B4196                 - 13 -

     1     "Provider."  A school entity, an institution of higher
     2  education, a nonprofit or for-profit organization or a certified
     3  teacher employed by a school entity, that is approved by the
     4  Department of Education to provide education support services.
     5     "School entity."  Any of the following located in this
     6  Commonwealth: a school district, intermediate unit, joint school
     7  district, area vocational-technical school, charter school,
     8  independent school, licensed private academic school, accredited
     9  school, a school registered under section 1327(b), the Scotland
    10  School for Veterans' Children or the Scranton School for the
    11  Deaf.
    12  Section 1505-C.  Providers.
    13     A prospective provider shall submit an application to the
    14  department for approval to provide education support services
    15  under this article. The application shall include a description
    16  of the services to be provided, the cost of the services, the
    17  qualification of all individuals providing those services,
    18  including evidence of compliance with section 111, and with 23
    19  Pa.C.S. § 6355 (relating to requirement) and such other
    20  information as may be required by the department.
    21     Section 12.  Section 1703-A of the act, amended June 26, 1999
    22  (P.L.394, No.36), is amended to read:
    23     Section 1703-A.  Definitions.--As used in this article,
    24     "Appeal board" shall mean the State Charter School Appeal
    25  Board established by this article.
    26     "At-risk student" shall mean a student at risk of educational
    27  failure because of limited English proficiency, poverty,
    28  community factors, truancy, academic difficulties or economic
    29  disadvantage.
    30     "Charter school" shall mean an independent public school
    20010H0004B4196                 - 14 -

     1  established and operated under a charter from the local board of
     2  school directors and in which students are enrolled or attend. A
     3  charter school must be organized as a public, nonprofit
     4  corporation. Charters may not be granted to any for-profit
     5  entity.
     6     "Chief executive officer" shall mean an individual appointed
     7  by the board of trustees to oversee and manage the operation of
     8  the charter school, but who shall not be deemed a professional
     9  staff member under this article.
    10     "Cyber charter school" shall mean an independent public
    11  school established and operated under a charter from the
    12  Department of Education and in which the school uses technology
    13  in order to provide a significant portion of its curriculum and
    14  to deliver a significant portion of instruction to its students
    15  through the Internet or other electronic means. A cyber charter
    16  school must be organized as a public, nonprofit corporation. A
    17  charter may not be granted to a for-profit entity.
    18     "Department" shall mean the Department of Education of the
    19  Commonwealth.
    20     "Local board of school directors" shall mean the board of
    21  directors of a school district in which a proposed or an
    22  approved charter school is located.
    23     "Regional charter school" shall mean an independent public
    24  school established and operated under a charter from more than
    25  one local board of school directors and in which students are
    26  enrolled or attend. A regional charter school must be organized
    27  as a public, nonprofit corporation. Charters may not be granted
    28  to any for-profit entity.
    29     "School district of residence" shall mean the school district
    30  in this Commonwealth in which the parents or guardians of a
    20010H0004B4196                 - 15 -

     1  child reside.
     2     "School entity" shall mean a school district, intermediate
     3  unit, joint school or area vocational-technical school.
     4     "Secretary" shall mean the Secretary of Education of the
     5  Commonwealth.
     6     "State board" shall mean the State Board of Education of the
     7  Commonwealth.
     8     Section 13.  Sections 1725-A(a) and 1732-A of the act, added
     9  June 19, 1997 (P.L.225, No.22), are amended to read:
    10     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
    11  for a charter school shall be provided in the following manner:
    12     (1)  There shall be no tuition charge for a resident or
    13  nonresident student attending a charter school.
    14     (2)  For non-special education students, the charter school
    15  shall receive for each student enrolled no less than the
    16  budgeted total expenditure per average daily membership of the
    17  prior school year, as defined in section 2501(20), minus the
    18  budgeted expenditures of the district of residence for nonpublic
    19  school programs; adult education programs; community/junior
    20  college programs; student transportation services; for special
    21  education programs; facilities acquisition, construction and
    22  improvement services; and other financing uses, including debt
    23  service and fund transfers as provided in the Manual of
    24  Accounting and Related Financial Procedures for Pennsylvania
    25  School Systems established by the department. This amount shall
    26  be paid by the district of residence of each student.
    27     (3)  For special education students, the charter school shall
    28  receive for each student enrolled the same funding as for each
    29  non-special education student as provided in clause (2), plus an
    30  additional amount determined by dividing the district of
    20010H0004B4196                 - 16 -

     1  residence's total special education expenditure by the product
     2  of multiplying the combined percentage of section 2509.5(k)
     3  times the district of residence's total average daily membership
     4  for the prior school year. This amount shall be paid by the
     5  district of residence of each student.
     6     (4)  A charter school may request the intermediate unit in
     7  which the charter school is located to provide services to
     8  assist the charter school to address the specific needs of
     9  exceptional students. The intermediate unit shall assist the
    10  charter school and bill the charter school for the services. The
    11  intermediate unit may not charge the charter school more for any
    12  service than it charges the constituent districts of the
    13  intermediate unit.
    14     (5)  Payments shall be made to the charter school in twelve
    15  (12) equal monthly payments, by the fifth day of each month,
    16  within the operating school year. A student enrolled in a
    17  charter school shall be included in the average daily membership
    18  of the student's district of residence for the purpose of
    19  providing basic education funding payments and special education
    20  funding pursuant to Article XXV. If a school district fails to
    21  make a payment to a charter school as prescribed in this clause,
    22  the secretary shall deduct the estimated amount, as documented
    23  by the charter school, from any and all State payments made to
    24  the district after receipt of documentation from the charter
    25  school.
    26     (6)  Within thirty (30) days after the secretary makes the
    27  deduction described in clause (5), a school district may notify
    28  the secretary that the deduction made from State payments to the
    29  district under this subsection is inaccurate. The secretary
    30  shall provide the school district with an opportunity to be
    20010H0004B4196                 - 17 -

     1  heard concerning whether the charter school documented that its
     2  students were enrolled in the charter school, the period of time
     3  during which each student was enrolled, the school district of
     4  residence of each student and whether the amounts deducted from
     5  the school district were accurate.
     6     * * *
     7     Section 1732-A.  Provisions Applicable to Charter Schools.--
     8  (a)  Charter schools shall be subject to the following:
     9     Sections 108, 110, 111, 321, 325, 326, 327, 431, 436, 443,
    10  510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753, 755,
    11  771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a), 1301, 1310,
    12  1317, 1317.1, 1317.2, 1318, 1327, 1330, 1332, 1303-A, 1513,
    13  1517, 1518, 1521, 1523, 1531, 1547, 2014-A, Article XIII-A and
    14  Article XIV.
    15     Act of July 17, 1961 (P.L.776, No.341), known as the
    16  "Pennsylvania Fair Educational Opportunities Act."
    17     Act of July 19, 1965 (P.L.215, No.116), entitled "An act
    18  providing for the use of eye protective devices by persons
    19  engaged in hazardous activities or exposed to known dangers in
    20  schools, colleges and universities."
    21     Section 4 of the act of January 25, 1966 (1965 P.L.1546,
    22  No.541), entitled "An act providing scholarships and providing
    23  funds to secure Federal funds for qualified students of the
    24  Commonwealth of Pennsylvania who need financial assistance to
    25  attend postsecondary institutions of higher learning, making an
    26  appropriation, and providing for the administration of this
    27  act."
    28     Act of July 12, 1972 (P.L.765, No.181), entitled "An act
    29  relating to drugs and alcohol and their abuse, providing for
    30  projects and programs and grants to educational agencies, other
    20010H0004B4196                 - 18 -

     1  public or private agencies, institutions or organizations."
     2     Act of December 15, 1986 (P.L.1595, No.175), known as the
     3  "Antihazing Law."
     4     (b)  Charter schools shall be subject to the following
     5  provisions of 22 Pa. Code:
     6     Section 5.216 (relating to ESOL).
     7     Section 5.4 (relating to general policies).
     8     Chapter 11 (relating to pupil attendance).
     9     Chapter 12 (relating to students).
    10     Section 32.3 (relating to assurances).
    11     Section 121.3 (relating to discrimination prohibited).
    12     Section 235.4 (relating to practices).
    13     Section 235.8 (relating to civil rights).
    14     Chapter 711 (relating to charter school services and programs
    15  for children with disabilities).
    16     (c)  (1)  The secretary may promulgate additional regulations
    17  relating to charter schools.
    18     (2)  The secretary shall have the authority and the
    19  responsibility to ensure that charter schools comply with
    20  Federal laws and regulations governing children with
    21  disabilities. The secretary shall promulgate regulations to
    22  implement this provision.
    23     Section 14.  Article XVII-A of the act is amended by adding a
    24  subdivision to read:
    25                     (c)  Cyber Charter Schools
    26  Section 1741-A.  Powers and duties of department.
    27     (a)  Powers and duties.--The department shall:
    28         (1)  Receive, review and act on applications for the
    29     creation of a cyber charter school and have the power to
    30     request further information from applicants, obtain input
    20010H0004B4196                 - 19 -

     1     from interested persons or entities and hold hearings
     2     regarding applications.
     3         (2)  Renew the charter of cyber charter school and renew
     4     the charter of a charter school approved under section 1717-A
     5     or 1718-A which provides instruction through the Internet or
     6     other electronic means. Upon renewal of a charter of a
     7     charter school approved under section 1717-A or 1718-A, the
     8     charter school shall qualify as a cyber charter school under
     9     this subdivision and shall be subject to the provisions of
    10     this subdivision.
    11         (3)  Revoke or deny renewal of a cyber charter school's
    12     charter under the provisions of section 1729-A.
    13             (i)  Notwithstanding the provisions of section 1729-
    14         A(i), when the department has revoked or denied renewal
    15         of a charter, the cyber charter school shall be
    16         dissolved. After the disposition of the liabilities and
    17         obligations of the cyber charter school, any remaining
    18         assets of the cyber charter school shall be given over to
    19         the intermediate unit in which the cyber charter school's
    20         administrative office was located for distribution to the
    21         school districts in which the students enrolled in the
    22         cyber charter school reside at the time of dissolution.
    23             (ii)  Notwithstanding any laws to the contrary, the
    24         department may, after notice and hearing, take immediate
    25         action to revoke a charter if:
    26                 (A)  a material component of the student's
    27             education as required under this subdivision is not
    28             being provided; or
    29                 (B)  the cyber charter school has failed to
    30             maintain the financial ability to provide services as
    20010H0004B4196                 - 20 -

     1             required under this subdivision.
     2         (4)  Execute charters after approval.
     3         (5)  Develop forms, including the notification form under
     4     section 1748-A(b), necessary to carry out the provisions of
     5     this subdivision.
     6     (b)  Hearings.--Hearings conducted by the department shall be
     7  conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).
     8     (c)  Documents.--Documents of the appeal board shall be
     9  subject to the act of June 21, 1957 (P.L.390, No.212), referred
    10  to as the Right-to-Know Law.
    11  Section 1742-A.  Assessment and evaluation.
    12     The department shall:
    13         (1)  Annually assess whether each cyber charter school is
    14     meeting the goals of its charter and is in compliance with
    15     the provisions of the charter, and conduct a comprehensive
    16     review prior to granting a five-year renewal of the charter.
    17         (2)  Annually review each cyber charter school's
    18     performance on the Pennsylvania System of School Assessment
    19     test, standardized tests and other performance indicators to
    20     ensure compliance with 22 Pa. Code Ch. 4 (relating to
    21     academic standards and assessment) or subsequent regulations
    22     promulgated to replace 22 Pa.Code Ch. 4.
    23         (3)  Have ongoing access to all records, instructional
    24     materials and student and staff records of each cyber charter
    25     school and to every cyber charter school facility to ensure
    26     the cyber charter school is in compliance with its charter
    27     and this subdivision.
    28  Section 1743-A.  Cyber charter school requirements and
    29                     prohibitions.
    30     (a)  Special financial requirements prohibited.--A cyber
    20010H0004B4196                 - 21 -

     1  charter school shall not:
     2         (1)  provide discounts to a school district or waive
     3     payments under section 1725-A for any student;
     4         (2)  except as provided for in subsection (e), provide
     5     payments to parents or guardians for the purchase of
     6     instructional materials; or
     7         (3)  except as compensation for the provision of specific
     8     services, enter into agreements to provide funds to a school
     9     entity.
    10     (b)  Enrollment.--A cyber charter school shall report to the
    11  department an increase or a decrease of 30% or more in its
    12  anticipated enrollment set forth in the application under
    13  section 1747-A(11).
    14     (c)  School district.--A cyber charter school shall make
    15  available upon request, either in writing or electronically, to
    16  each student's school district of residence the following:
    17         (1)  A copy of the charter.
    18         (2)  A copy of the cyber charter school application.
    19         (3)  A copy of all annual reports prepared by the cyber
    20     charter school.
    21         (4)  A list of all students from that school district
    22     enrolled in the cyber charter school.
    23     (d)  Parent or guardian.--Upon request and prior to the
    24  student's first day in a cyber charter school, the cyber charter
    25  school shall, either in writing or electronically, provide to
    26  the parent or guardian of a student the following:
    27         (1)  A list and brief description of the courses of
    28     instruction the student will receive. The list shall be
    29     updated annually for each grade level in which the student is
    30     enrolled.
    20010H0004B4196                 - 22 -

     1         (2)  A description of the lessons and activities to be
     2     offered both online and offline.
     3         (3)  The manner in which attendance will be reported and
     4     work will be authenticated.
     5         (4)  A list of all standardized tests the student will be
     6     required to take during the school year and the place where
     7     the test will be administered, if available.
     8         (5)  The meetings to be held during the school year
     9     between a parent or guardian and a teacher and among other
    10     school officials or parents or guardians and the manner in
    11     which the parent or guardian will be notified of the time and
    12     place for the meeting.
    13         (6)  The address of the cyber charter school and the
    14     name, telephone number and e-mail address of the school
    15     administrator and other school personnel.
    16         (7)  A list of any extracurricular activities provided by
    17     the cyber charter school.
    18         (8)  The names of the student's teachers, if available,
    19     and the manner in which each teacher can be contacted by the
    20     student or the parent or guardian.
    21         (9)  A list of all services that will be provided to the
    22     student by the cyber charter school.
    23         (10)  Copies of policies relating to computer security
    24     and privacy, truancy, absences, discipline and withdrawal or
    25     expulsion of students.
    26         (11)  Information on:
    27             (i)  The cyber charter school's professional staff,
    28         including the number of staff personnel, their education
    29         level and experience.
    30             (ii)  The cyber charter school's performance on the
    20010H0004B4196                 - 23 -

     1         PSSA and other standardized test scores.
     2         (12)  Information regarding the proper usage of equipment
     3     and materials and the process for returning equipment and
     4     materials supplied to the students by the cyber charter
     5     school. A parent or guardian shall acknowledge, either in
     6     writing or electronically, the receipt of this information.
     7         (13)  A description of the school calendar, including,
     8     but not limited to, the time frame that will constitute a
     9     school year and a school week, holidays and term breaks.
    10     (e)  Students.--For each student enrolled, a cyber charter
    11  school shall:
    12         (1)  provide all instructional materials;
    13         (2)  provide all equipment, including, but not limited
    14     to, a computer, computer monitor and printer; and
    15         (3)  provide or reimburse for all technology and services
    16     necessary for the online delivery of the curriculum and
    17     instruction.
    18  The Commonwealth shall not be liable for any reimbursement owed
    19  to students, parents or guardians by a cyber charter school
    20  under paragraph (3).
    21     (f)  Annual report.--A cyber charter school shall submit an
    22  annual report no later than August 1 of each year to the
    23  department in the form prescribed by the department.
    24     (g)  Records and facilities.--A cyber charter school shall
    25  provide the department with ongoing access to all records and
    26  facilities necessary for the department to assess the cyber
    27  charter school in accordance with the provisions of this
    28  subdivision.
    29     (h)  Offices and facilities.--A cyber charter school shall
    30  maintain an administrative office within this Commonwealth where
    20010H0004B4196                 - 24 -

     1  all student records shall be maintained at all times and shall
     2  provide the department with the addresses of all offices and
     3  facilities of the cyber charter school, the ownership thereof
     4  and any lease arrangements. The administrative office of the
     5  cyber charter school shall be considered as the principal place
     6  of business for service of process for any action brought
     7  against the cyber charter school or cyber charter school staff
     8  members. The cyber charter school shall notify the department of
     9  any changes in this information within ten days of the change.
    10     (i)  Applicable law.--Any action taken against the cyber
    11  charter school, its successors or assigns or its employees,
    12  including any cyber charter school staff member as defined in
    13  the act of December 12, 1973 (P.L.397, No.141), known as the
    14  Professional Educator Discipline Act, shall be governed by the
    15  laws of this Commonwealth. If the department initiates an
    16  investigation or pursues an action pursuant to the Professional
    17  Educator Discipline Act involving any current or former charter
    18  school staff member outside this Commonwealth, any reasonable
    19  expenses incurred by the department in such investigation or
    20  action shall be paid by the cyber charter school which employed
    21  that staff member at the time of the alleged misconduct.
    22  Section 1744-A.  School district and intermediate unit
    23                     responsibilities.
    24     An intermediate unit or a school district in which a student
    25  enrolled in a cyber charter school resides shall do all of the
    26  following:
    27         (1)  Provide the cyber charter school within ten days of
    28     receipt of the notice of the admission of the student under
    29     section 1748-A(a) with all records relating to the student,
    30     including transcripts, test scores and a copy of any
    20010H0004B4196                 - 25 -

     1     individualized education program for that student.
     2         (2)  Provide the cyber charter school with reasonable
     3     access to its facilities for the administration of
     4     standardized tests required under this subdivision.
     5         (3)  Upon request, provide assistance to the cyber
     6     charter school in the delivery of services to a student with
     7     disabilities. The school district or intermediate unit shall
     8     not charge the cyber charter school more for a service than
     9     it charges a school district.
    10         (4)  Make payments to the cyber charter school under
    11     section 1725-A.
    12  Section 1745-A.  Establishment of cyber charter school.
    13     (a)  Establishment.--A cyber charter school may be
    14  established by an individual; one or more teachers who will
    15  teach at the proposed cyber charter school; parents or guardians
    16  of students who will enroll in the cyber charter school; a
    17  nonsectarian college, university or museum located in this
    18  Commonwealth; a nonsectarian corporation not-for-profit, as
    19  defined in 15 Pa.C.S. § 5103 (relating to definitions); a
    20  corporation, association or partnership; or any combination of
    21  the foregoing. Section 1327.1 shall not apply to a cyber charter
    22  school established under this subdivision.
    23     (b)  Sectarian entities.--No cyber charter school shall be
    24  established or funded by and no charter shall be granted to a
    25  sectarian school, institution or other entity.
    26     (c)  Attendance.--Attendance at a cyber charter school shall
    27  satisfy requirements for compulsory attendance.
    28     (d)  Application.--An application to establish a cyber
    29  charter school shall be submitted to the department by October 1
    30  of the school year preceding the school year in which the cyber
    20010H0004B4196                 - 26 -

     1  charter school proposes to commence operation.
     2     (e)  Grant or denial.--Within 120 days of receipt of an
     3  application, the department shall grant or deny the application.
     4  The department shall review the application and shall hold at
     5  least one public hearing under 65 Pa.C.S. Ch. 7 (relating to
     6  open meetings). At least 30 days prior to the hearing, the
     7  department shall publish, in the Pennsylvania Bulletin and on
     8  the department's World Wide Web site, notice of the hearing and
     9  the purpose of the application.
    10     (f)  Evaluation criteria.--
    11         (1)  A cyber charter school application submitted under
    12     this subdivision shall be evaluated by the department based
    13     on the following criteria:
    14             (i)  The demonstrated, sustainable support for the
    15         cyber charter school plan by teachers, parents or
    16         guardians and students.
    17             (ii)  The capability of the cyber charter school
    18         applicant, in terms of support and planning, to provide
    19         comprehensive learning experiences to students under the
    20         charter.
    21             (iii)  The extent to which the programs outlined in
    22         the application will enable students to meet the academic
    23         standards under 22 Pa. Code Ch. 4 (relating to academic
    24         standards and assessment) or subsequent regulations
    25         promulgated to replace 22 Pa. Code Ch. 4.
    26             (iv)  The extent to which the application meets the
    27         requirements of section 1747-A.
    28             (v)  The extent to which the cyber charter school may
    29         serve as a model for other public schools.
    30         (2)  Written notice of the action of the department shall
    20010H0004B4196                 - 27 -

     1     be sent by certified mail to the applicant and published on
     2     the department's World Wide Web site. If the application is
     3     denied, the reasons for denial, including a description of
     4     deficiencies in the application, shall be clearly stated in
     5     the notice.
     6         (3)  Upon approval of a cyber charter school application,
     7     a written charter shall be developed which shall contain the
     8     provisions of the charter application and be signed by the
     9     secretary and each member of the board of trustees of the
    10     cyber charter school. The charter, when duly signed, shall
    11     act as legal authorization of the establishment of a cyber
    12     charter school. The charter shall be legally binding on the
    13     department, the cyber charter school and its board of
    14     trustees. The charter shall be for a period of no less than
    15     three years nor more than five years, and may be renewed for
    16     a period of five years by the department.
    17         (4)  The decision of the department to deny an
    18     application may be appealed to the appeal board.
    19     (g)  Denied application.--A cyber charter school applicant
    20  may revise and resubmit a denied application to the department.
    21  The department shall grant or deny the revised application
    22  within 60 days after its receipt.
    23     (h)  Appeal.--If the department fails to hold the required
    24  public hearing or to approve or disapprove the charter, the
    25  applicant may file its application as an appeal to the appeal
    26  board. The appeal board shall review the application and make a
    27  decision to approve or disapprove the charter based on the
    28  criteria in subsection (f).
    29  Section 1746-A.  State Charter School Appeal Board review.
    30     (a)  Jurisdiction.--The appeal board shall have the exclusive
    20010H0004B4196                 - 28 -

     1  review of an appeal by a cyber charter school applicant or by
     2  the board of trustees of a cyber charter school on the decisions
     3  of the department, including:
     4         (1)  The denial of an application for a charter.
     5         (2)  The denial of a renewal of a charter.
     6         (3)  The revocation of a charter.
     7         (4)  An appeal under section 1745-A(h).
     8     (b)  Procedure.--The appeal board shall:
     9         (1)  Review the decision made by the department under
    10     subsection (a) on the record as certified by the department.
    11     The secretary shall recuse himself from all cyber charter
    12     school appeals and shall not participate in a hearing,
    13     deliberation or vote on a cyber charter school appeal. The
    14     appeal board may allow the department, the cyber charter
    15     school applicant or the board of trustees of a cyber charter
    16     school to supplement the record if the supplemental
    17     information was previously unavailable.
    18         (2)  Meet to officially review the certified record no
    19     later than 30 days after the date of filing the appeal.
    20         (3)  Issue a written decision affirming or denying the
    21     appeal no later than 60 days following its review.
    22         (4)  In the case of a decision by the department to deny
    23     a cyber charter application, make its decision based on
    24     section 1745-A(f)(1). A decision by the appeal board to
    25     reverse the decision of the department and grant a charter
    26     shall serve as a requirement for the secretary to sign the
    27     written charter of the cyber charter school.
    28         (5)  In the case of a decision by the department to
    29     revoke or deny renewal of a cyber school charter in
    30     accordance with section 1741-A(a)(3), make its decision based
    20010H0004B4196                 - 29 -

     1     on section 1729-A(a). A decision of the appeal board to
     2     reverse the decision of the department to not revoke or deny
     3     renewal of a charter shall serve as a requirement of the
     4     department to not revoke or to not deny renewal of the
     5     charter of the cyber charter school.
     6     (c)  Stay.--If the department appeals the decision of the
     7  appeal board, the appeal board's decision shall be stayed only
     8  upon order of the appeal board, the Commonwealth Court or the
     9  Pennsylvania Supreme Court.
    10     (d)  Review.--All decisions of the appeal board shall be
    11  subject to appellate review by the Commonwealth Court.
    12  Section 1747-A.  Cyber charter school application.
    13     In addition to the provisions of section 1719-A, an
    14  application to establish a cyber charter school shall also
    15  include the following:
    16         (1)  The curriculum to be offered and how it meets the
    17     requirements of 22 Pa. Code Ch. 4 (relating to academic
    18     standards and assessment) or subsequent regulations
    19     promulgated to replace 22 Pa. Code Ch. 4.
    20         (2)  The number of courses required for elementary and
    21     secondary students.
    22         (3)  An explanation of the amount of online time required
    23     for elementary and secondary students.
    24         (4)  The manner in which teachers will deliver
    25     instruction, assess academic progress and communicate with
    26     students to provide assistance.
    27         (5)  A specific explanation of any cooperative learning
    28     opportunities, meetings with students, parents and guardians,
    29     field trips or study sessions.
    30         (6)  The technology, including types of hardware and
    20010H0004B4196                 - 30 -

     1     software, equipment and other materials which will be
     2     provided by the cyber charter school to the student.
     3         (7)  A description of how the cyber charter school will
     4     define and monitor a student's school day, including the
     5     delineation of online and offline time.
     6         (8)  A description of commercially prepared standardized
     7     achievement tests that will be used by the cyber charter
     8     school in addition to the Pennsylvania System of School
     9     Assessment test, including the grade levels that will be
    10     tested and how the data collected from the tests will be used
    11     to improve instruction.
    12         (9)  The technical support that will be available to
    13     students and parents or guardians.
    14         (10)  The privacy and security measures to ensure the
    15     confidentiality of data gathered online.
    16         (11)  The level of anticipated enrollment during each
    17     school year of the proposed charter, including expected
    18     increases due to the addition of grade levels.
    19         (12)  The methods to be used to insure the authenticity
    20     of student work and adequate proctoring of examinations.
    21         (13)  The provision of education and related services to
    22     students with disabilities, including evaluation and the
    23     development and revision of individualized education
    24     programs.
    25         (14)  Policies regarding truancy, absences and withdrawal
    26     of students, including the manner in which the cyber charter
    27     school will monitor attendance consistent with the provisions
    28     of section 1715-A(9).
    29         (15)  The types and frequency of communication between
    30     the cyber charter school and the student and the manner in
    20010H0004B4196                 - 31 -

     1     which the cyber charter school will communicate with parents
     2     and guardians.
     3         (16)  The addresses of all facilities and offices of the
     4     cyber charter school, the ownership thereof and any lease
     5     arrangements.
     6  Section 1748-A.  Enrollment and notification.
     7     (a)  Notice to school district.--
     8         (1)  Within 15 days of the enrollment of a student to a
     9     cyber charter school, the parent or guardian and the cyber
    10     charter school shall notify the student's school district of
    11     residence of the enrollment through the use of the
    12     notification form under subsection (b).
    13         (2)  If a school district which has received notice under
    14     paragraph (1) determines that a student is not a resident of
    15     the school district, the following apply:
    16             (i)  Within seven days of receipt of the notice under
    17         paragraph (1), the school district shall notify the cyber
    18         charter school and the department that the student is not
    19         a resident of the school district. Notification of
    20         nonresidence shall include the basis for the
    21         determination.
    22             (ii)  Within seven days of notification under
    23         subparagraph (i), the cyber charter school shall review
    24         the notification of nonresidence, respond to the school
    25         district and provide a copy of the response to the
    26         department. If the cyber charter school agrees that a
    27         student is not a resident of the school district, it
    28         shall determine the proper district of residence of the
    29         student before requesting funds from another school
    30         district.
    20010H0004B4196                 - 32 -

     1             (iii)  Within seven days of receipt of the response
     2         under subparagraph (ii), the school district shall notify
     3         the cyber charter school that it agrees with the cyber
     4         charter school's determination or does not agree with the
     5         cyber charter school's determination.
     6             (iv)  A school district that has notified the cyber
     7         charter school that it does not agree with the cyber
     8         charter school's determination under subparagraph (iii)
     9         shall appeal to the department for a final determination.
    10             (v)  All decisions of the department regarding the
    11         school district of residence of a student shall be
    12         subject to review by the Commonwealth Court.
    13             (vi)  A school district shall continue to make
    14         payments to a cyber charter school under section 1725-A
    15         during the time in which the school district of residence
    16         of a student is in dispute.
    17             (vii)  If a final determination is made that a
    18         student is not a resident of an appealing school
    19         district, the cyber charter school shall return all funds
    20         provided on behalf of that student to the school district
    21         within 30 days.
    22     (b)  Notification form.--The department shall develop a
    23  notification form for use under subsection (a). The notification
    24  shall include:
    25         (1)  The name, home address and mailing address of the
    26     student.
    27         (2)  The grade in which the student is being enrolled.
    28         (3)  The date the student will be enrolled.
    29         (4)  The name and address of the cyber charter school and
    30     the name and telephone number of a contact person able to
    20010H0004B4196                 - 33 -

     1     provide information regarding the cyber charter school.
     2         (5)  The signature of the parent or guardian and an
     3     authorized representative of the cyber charter school.
     4     (c)  Withdrawal.--The cyber charter school and the parent or
     5  guardian of a student enrolled in a cyber charter school shall
     6  provide written notification to the student's school district of
     7  residence within 15 days following the withdrawal of a student
     8  from the cyber charter school.
     9  Section 1749-A.  Applicability of other provisions of this act
    10                     and of other acts and regulations.
    11     (a)  General requirements.--Cyber charter schools shall be
    12  subject to the following:
    13         (1)  Sections 108, 110, 111, 321, 325, 326, 327, 431,
    14     436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,
    15     808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,
    16     1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,
    17     1523, 1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A,
    18     1719-A, 1721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A,
    19     1727-A, 1729-A, 1730-A, 1731-A,(a)(1) and (b) and 2014-A and
    20     Articles XII-A, XIII-A and XIV.
    21         (2)  The act of July 17, 1961 (P.L.776, No.341), known as
    22     the Pennsylvania Fair Educational Opportunities Act.
    23         (3)  The act of July 19, 1965 (P.L.215, No.116), entitled
    24     "An act providing for the use of eye protective devices by
    25     persons engaged in hazardous activities or exposed to known
    26     dangers in schools, colleges and universities."
    27         (4)  Section 4 of the act of January 25, 1966 (1965
    28     P.L.1546, No.541), entitled "An act providing scholarships
    29     and providing funds to secure Federal funds for qualified
    30     students of the Commonwealth of Pennsylvania who need
    20010H0004B4196                 - 34 -

     1     financial assistance to attend postsecondary institutions of
     2     higher learning, making an appropriation, and providing for
     3     the administration of this act."
     4         (5)  The act of July 12, 1972 (P.L.765, No.181) entitled
     5     "An act relating to drugs and alcohol and their abuse,
     6     providing for projects and programs and grants to educational
     7     agencies, other public or private agencies, institutions or
     8     organizations."
     9         (6)  The act of December 15, 1986 (P.L.1595, No.175),
    10     known as the Antihazing Law.
    11     (b)  Regulations.--Cyber charter schools shall be subject to
    12  the following provisions of 22 Pa. Code (relating to education):
    13         (1)  Chapter 4 (relating to academic standards and
    14     assessment).
    15         (2)  Chapter 11 (relating to pupil attendance).
    16         (3)  Chapter 12 (relating to students).
    17         (4)  Section 32.3 (relating to assurances).
    18         (5)  Section 121.3 (relating to discrimination
    19     prohibited).
    20         (6)  Section 235.4 (relating to practices).
    21         (7)  Section 235.8 (relating to civil rights).
    22         (8)  Chapter 711 (relating to charter school services and
    23     programs for children with disabilities).
    24     (c)  Existing charter schools.--
    25         (1)  The charter of a charter school approved under
    26     section 1717-A or 1718-A which provides instruction through
    27     the Internet or other electronic means shall remain in effect
    28     for the duration of the charter and shall be subject to the
    29     provisions of Subdivision (b).
    30         (2)  In addition to subsections (a) and (b), the
    20010H0004B4196                 - 35 -

     1     following provisions of this subdivision shall apply to a
     2     charter school approved under section 1717-A or 1718-A which
     3     provides instruction through the Internet or other electronic
     4     means:
     5             (i)  Section 1743-A(c), (d), (e), (h) and (i).
     6             (ii)  Section 1744-A.
     7             (iii)  Section 1748-A.
     8  Section 1750-A.  Effect on certain existing charter schools.
     9     (a)  Determination.--For a charter school approved under
    10  section 1717-A or 1718-A which provides instruction through the
    11  Internet or other electronic means, prior to August 15, 2002,
    12  the department shall determine:
    13         (1)  whether the charter school is in compliance with
    14     Subdivision (c);
    15         (2)  whether the charter school has provided notification
    16     of the enrollment of each existing student to the school
    17     district of residence; and
    18         (3)  how the charter school plans to comply with section
    19     1743-A(d).
    20     (b)  Notification of compliance.--Prior to August 15, 2002,
    21  the department shall:
    22         (1)  Notify each charter school and the chartering school
    23     district of the department's determination under subsection
    24     (a). The notification shall include specific requirements
    25     with which the charter school has failed to comply.
    26         (2)  Publish a copy of the notification on the
    27     department's World Wide Web site.
    28     (c)  Charter school requirement.--A charter school subject to
    29  the requirements of this section shall, either in writing or
    30  electronically, provide the parent or guardian of any student
    20010H0004B4196                 - 36 -

     1  enrolled in the charter school a copy of the department's
     2  determination under subsection (b).
     3     (d)  School districts.--A school district shall not renew the
     4  charter of a charter school approved under section 1717-A or
     5  1718-A which provides instruction through the Internet or other
     6  electronic means or approve a charter for a cyber charter
     7  school.
     8     (e)  Renewal of charter for certain existing charter
     9  schools.--Upon the expiration of its charter, a charter school
    10  approved under section 1717-A or 1718-A which provides
    11  instruction through the Internet or other electronic means shall
    12  seek renewal of its charter from the department under this
    13  subdivision. The charter shall be amended as needed to reflect
    14  the requirements of this subdivision.
    15  Section 1751-A.  Regulations.
    16     The department may issue regulations to implement this
    17  subdivision.
    18     Section 15.  Section 1705-B(h)(4) of the act, amended June
    19  22, 2001 (P.L.530, No.35), is amended to read:
    20     Section 1705-B.  Education Empowerment Districts.--* * *
    21     (h)  * * *
    22     (4)  The department may utilize up to $2,000,000 of
    23  undistributed funds not expended, encumbered or committed from
    24  appropriations for grants and subsidies made to the department
    25  to assist school districts certified as an education empowerment
    26  district under paragraph (3). There is hereby established a
    27  restricted account from which payments under this paragraph
    28  shall be paid. Funds shall be transferred by the Secretary of
    29  the Budget to the restricted account to the extent necessary to
    30  make payments under this paragraph. Funds in the restricted
    20010H0004B4196                 - 37 -

     1  account are hereby appropriated to carry out the purposes of
     2  this paragraph. This paragraph shall apply to fiscal years 2000-
     3  2001 [and], 2001-2002, and 2002-2003 and shall expire June 30,
     4  [2002] 2003.
     5     Section 16.  Section 1714-B(h) of the act, added May 10, 2000
     6  (P.L.44, No.16), is amended to read:
     7     Section 1714-B.  Mandate Waiver Program.--* * *
     8     (h)  The following provisions of 22 Pa. Code (relating to
     9  education) shall not be subject to waiver pursuant to this
    10  section:
    11     Chapter 4 (relating to academic standards and assessment).
    12     Chapter 11 (relating to pupil attendance).
    13     Chapter 12 (relating to students).
    14     Chapter 14 (relating to special education services and
    15  programs).
    16     Chapter 16 (relating to special education for gifted
    17  students).
    18     Section 32.3 (relating to assurances).
    19     Section 121.3 (relating to discrimination prohibited).
    20     Section 235.4 (relating to practices).
    21     Section 235.8 (relating to civil rights).
    22     * * *
    23     Section 17.  Section 1901-C(1) of the act, added June 25,
    24  1997 (P.L.297, No.30), is amended to read:
    25     Section 1901-C.  Definitions.--For purposes of this article,
    26  the following terms shall have the following meanings:
    27     (1)  "Alternative education program" or "program."  Any
    28  applicant's program applying for funds under this article, which
    29  program is implemented by a school district, an area vocational-
    30  technical school, a group of school districts or an intermediate
    20010H0004B4196                 - 38 -

     1  unit, which removes disruptive students from regular school
     2  programs in order to provide those students with a sound
     3  educational course of study and counseling designed to modify
     4  disruptive behavior and return the students to a regular school
     5  curriculum. Notwithstanding section 1502, alternative education
     6  programs may operate outside the normal school day of the
     7  applicant district, including Saturdays. School districts and
     8  private alternative education institutions operating pursuant to
     9  the provisions of Article XIX-E shall adopt a policy for
    10  periodic review of those students placed in [the] their
    11  respective alternative education program for disruptive
    12  students. This review shall occur, at a minimum, at the end of
    13  every semester the student is in the program or more frequently
    14  at the district's or private alternative education institution's
    15  discretion. The purpose of this review is to determine whether
    16  or not the student is ready to return to the regular school
    17  curriculum. Programs may include services for students returning
    18  from placements or who are on probation resulting from being
    19  adjudicated delinquent in a proceeding under 42 Pa.C.S. Ch. 63
    20  (relating to juvenile matters) or who have been judged to have
    21  committed a crime under an adult criminal proceeding.
    22     * * *
    23     Section 18.  Section 2008-A of the act, amended June 23, 1988
    24  (P.L.457, No.77), is amended to read:
    25     Section 2008-A.  Councils of Trustees.--(a)  The council of
    26  each of the institutions shall consist of eleven (11) members
    27  who, except for student members, shall be nominated and
    28  appointed by the Governor with the advice and consent of the
    29  Senate. At least two (2) members of the eleven (11) member
    30  council of trustees shall be alumni of the institution.
    20010H0004B4196                 - 39 -

     1     (b)  Ten (10) members of each council shall serve terms of
     2  six (6) years, respectively, and until their respective
     3  successors are duly appointed and qualified. One (1) member of
     4  each council shall be a full-time undergraduate student in good
     5  academic standing, other than freshman, enrolled for at least
     6  twelve (12) semester hours at the institution of which he is a
     7  trustee. The student member shall serve a term of four (4) years
     8  or for so long as he is a full-time undergraduate student in
     9  attendance at the institution of which he is a trustee,
    10  whichever period is shorter, and is in good academic standing.
    11  Vacancies occurring before the expiration of the term of any
    12  member shall be filled in like manner for the unexpired term.
    13  Student members of the Council of Trustees shall be appointed by
    14  the Governor and shall not be subject to Senate confirmation. If
    15  a student member is temporarily unable, for medical or valid
    16  academic reasons, to fulfill the responsibilities of office, the
    17  Council of Trustees may request that the Governor appoint an
    18  otherwise qualified student to serve as an alternate until the
    19  return of the student member.
    20     (c)  The members of each board of trustees of a former State
    21  college or university serving in such capacity on the effective
    22  date of this act shall continue to serve for the balance of
    23  their respective terms.
    24     (d)  Six (6) members of a council shall constitute a quorum.
    25  Each council shall select from its members a chairperson and a
    26  secretary to serve at the pleasure of the council. Each council
    27  shall meet at least quarterly, and additionally at the call of
    28  the president, or its chairperson, or upon request of three (3)
    29  of its members.
    30     Section 19.  The act is amended by adding a section to read:
    20010H0004B4196                 - 40 -

     1     Section 2134.  Placement of Certain Adjudicated Students.--No
     2  student returning from placement or who is on probation as a
     3  result of being adjudicated delinquent under 42 Pa.C.S. Ch. 63
     4  (relating to juvenile matters) or who has been adjudged to have
     5  committed a crime under an adult criminal proceeding shall be
     6  returned directly to the regular classroom. Prior to returning
     7  such student to the regular classroom, the school district
     8  shall:
     9     (1)  Place the student in a transition center operated by the
    10  school district for a period not to exceed four (4) weeks.
    11     (2)  Develop a transition plan for the student that includes
    12  academic goals, identifies school and community services
    13  appropriate to the needs of the student and establishes terms
    14  and conditions the student must meet prior to returning to the
    15  regular classroom.
    16     (3)  Place the student in an alternative education program as
    17  defined in Article XIX-C, in a private alternative education
    18  institution as defined in Article XIX-E, in a general education
    19  development program or in a program operating after the
    20  traditional school day, as provided for in the transition plan
    21  developed pursuant to clause (2).
    22     Section 20.  Section 2501(14.1) of the act, amended June 22,
    23  2001 (P.L.530, No.35), is amended to read:
    24     Section 2501.  Definitions.--For the purposes of this article
    25  the following terms shall have the following meanings:
    26     * * *
    27     (14.1)  "Market Value/Income Aid Ratio." For purposes of
    28  reimbursement to a school district under subsections (d), (e),
    29  and (f) of section 2502, section 2502.8, section 2502.22,
    30  section 2502.25, section 2502.26 and section 2592, or to an
    20010H0004B4196                 - 41 -

     1  intermediate unit or area vocational-technical school, shall be
     2  the Commonwealth's method of determining the combined market
     3  value and income wealth for each pupil, and shall be computed,
     4  for the school year for which reimbursement is being paid, as
     5  follows:
     6     (a)  (i)  Divide the market value per weighted average daily
     7  membership of the district, intermediate unit or area
     8  vocational-technical school by the market value per weighted
     9  average daily membership of the State;
    10     (ii)  Determine the product of subsection (a)(i) multiplied
    11  by .5;
    12     (iii)  Subtract the resultant product in subsection (a)(ii)
    13  from 1.000 to determine the market value portion of the aid
    14  ratio.
    15     (iv)  For purposes of the calculation described in subsection
    16  (a)(i) through [(a)(iii)] (iii), the market value of a district
    17  shall be the real property valuation of the district for the
    18  calendar year that concluded during the school year immediately
    19  preceding the school year for which reimbursement is being paid.
    20  The market value of an intermediate unit or area vocational-
    21  technical school shall be the sum of the real property
    22  valuations of each of its component districts for the calendar
    23  year that concluded during the school year immediately preceding
    24  the school year for which reimbursement is being paid. The
    25  weighted average daily membership of a district shall be the
    26  weighted average daily membership for the school year
    27  immediately preceding the school year for which reimbursement is
    28  being paid. The weighted average daily membership of an
    29  intermediate unit or area vocational-technical school shall be
    30  the sum of the weighted average daily memberships of each of its
    20010H0004B4196                 - 42 -

     1  component districts for the school year immediately preceding
     2  the school year for which reimbursement is being paid.
     3     (b)  (i)  Divide the income per weighted average daily
     4  membership of the district, the intermediate unit or area
     5  vocational-technical school by the average personal income per
     6  weighted average daily membership of the State;
     7     (ii)  Determine the product of subsection (b)(i) multiplied
     8  by .5;
     9     (iii)  Subtract the resultant product in subsection (b)(ii)
    10  from 1.000 to determine the income aid ratio.
    11     (iv)  For purposes of the calculation described in subsection
    12  (b)(i) through [(b)(iii)] (iii), the income of a district shall
    13  be the personal income valuation of the district. The income of
    14  an intermediate unit or area vocational-technical school shall
    15  be the sum of the personal income valuations of each of its
    16  component districts. The weighted average daily membership of
    17  the district shall be the weighted average daily membership for
    18  the school year immediately preceding the school year for which
    19  reimbursement is being paid. The weighted average daily
    20  membership of an intermediate unit or area vocational-technical
    21  school shall be the sum of the weighted average daily
    22  memberships of each of its component districts for the school
    23  year immediately preceding the school year for which
    24  reimbursement is being paid.
    25     (c)  Add sixty percent (60%) of the market value aid ratio to
    26  forty percent (40%) of the income aid ratio to determine the
    27  market value/income aid ratio.
    28     (d)  For payments beginning in the 1989-1990 school year and
    29  each school year thereafter, the Department of Education shall
    30  utilize an adjusted personal income valuation for the 1987 tax
    20010H0004B4196                 - 43 -

     1  year and each tax year thereafter respectively in computing the
     2  market value/income aid ratio for such districts. The adjusted
     3  personal income valuation shall be calculated by dividing the
     4  total out-of-State tax credits claimed by the residents of a
     5  school district by the State personal income tax rate and
     6  subtracting that amount from the total personal income valuation
     7  for the individual school district. The State total personal
     8  income valuation shall remain that as certified by the
     9  Department of Revenue and shall not be adjusted to reflect out-
    10  of-State tax credits.
    11     [(e)  For the purpose of determining payments for the 1999-
    12  2000 school year and each school year thereafter, the department
    13  shall utilize the following calculation for any school district
    14  where the personal income as determined by the Department of
    15  Revenue under Article III, section 303(a)(3), (4), (7) or (8) of
    16  the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
    17  Code of 1971," increases by at least one thousand percent
    18  (1,000%) over such income reported for the prior tax year: the
    19  total personal income used to determine the personal income aid
    20  ratio and market value/personal income aid ratio shall be
    21  calculated using an amount for personal income as determined by
    22  the Department of Revenue under Article III, section 303(a)(3),
    23  (4), (7) or (8) of the "Tax Reform Code of 1971" that is ten
    24  percent (10%) higher than such income reported for the prior tax
    25  year.]
    26     Section 21.  Section 2502.13 of the act, amended June 22,
    27  2001 (P.L.530, No.35), is amended to read:
    28     Section 2502.13.  Small District Assistance.--For the 1984-
    29  1985 and 1985-1986 school years, the Commonwealth shall pay to
    30  each school district which has an average daily membership of
    20010H0004B4196                 - 44 -

     1  one thousand five hundred (1,500) or less and has a market
     2  value/income aid ratio of five thousand ten-thousandths (0.5000)
     3  or greater, an amount equal to fifty dollars ($50) multiplied by
     4  that district's average daily membership. For the 1985-1986
     5  school year, no school district shall receive less on account of
     6  this section than it did for the 1984-1985 school year. For the
     7  school year 1986-1987, the Commonwealth shall pay to each school
     8  district which has an average daily membership of one thousand
     9  five hundred (1,500) or less and has a market value/income aid
    10  ratio of five thousand ten-thousandths (0.5000) or greater, or
    11  received payments under this section for the 1985-1986 school
    12  year, an amount equal to seventy-five dollars ($75) multiplied
    13  by that district's average daily membership. For the school year
    14  1987-1988, the Commonwealth shall pay to each school district
    15  which has an average daily membership of one thousand five
    16  hundred (1,500) or less and a market value/income aid ratio of
    17  five thousand ten-thousandths (0.5000) or greater, or received
    18  payments under this section for the 1986-1987 school year, an
    19  amount equal to eighty-five dollars ($85) multiplied by that
    20  district's average daily membership. For the school year 1988-
    21  1989, the Commonwealth shall pay to each school district which
    22  has an average daily membership of one thousand five hundred
    23  (1,500) or less and a market value/income aid ratio of five
    24  thousand ten thousandths (0.5000) or greater, or received
    25  payments under this section for the 1987-1988 or 1988-1989
    26  school year, an amount equal to one hundred five dollars ($105).
    27  For the school year 1989-1990, the Commonwealth shall pay to
    28  each school district which has an average daily membership of
    29  one thousand five hundred (1,500) or less and a market
    30  value/income aid ratio of five thousand ten-thousandths (0.5000)
    20010H0004B4196                 - 45 -

     1  or greater, or received payments under this section for the
     2  1987-1988 school year, an amount equal to one hundred fifteen
     3  dollars ($115) multiplied by the district's average daily
     4  membership as provided for in section 212 of the act of July 1,
     5  1990 (P.L.1591, No.7A), known as the "General Appropriation Act
     6  of 1990." For the school year 1990-1991, the Commonwealth shall
     7  pay to each school district which has an average daily
     8  membership of one thousand five hundred (1,500) or less and a
     9  market value/income aid ratio of five thousand ten-thousandths
    10  (0.5000) or greater, or received payments under this section for
    11  the prior school year, an amount equal to one hundred seventy
    12  dollars ($170) multiplied by that district's average daily
    13  membership. For the school year 1990-1991, each school district
    14  with a population per square mile of less than ninety (90),
    15  which otherwise meets the average daily membership and market
    16  value/income aid ratio requirements of this section, or received
    17  payments under this section for the prior school year, shall
    18  instead receive an amount equal to one hundred ninety dollars
    19  ($190) multiplied by that district's average daily membership.
    20  For the 1987-1988 school year through the 1990-1991 school year,
    21  no school district shall receive less on account of this section
    22  than it did for the prior school year. For the school year 1994-
    23  1995, the Commonwealth shall pay to each school district which
    24  has an average daily membership of one thousand five hundred
    25  (1,500) or less and a market value/income aid ratio of five
    26  thousand ten-thousandths (0.5000) or greater, an amount equal to
    27  ninety five dollars ($95) multiplied by that district's average
    28  daily membership. For each of the school years 1997-1998 through
    29  1999-2000, the Commonwealth shall pay to each school district
    30  which has an average daily membership of one thousand five
    20010H0004B4196                 - 46 -

     1  hundred (1,500) or less and a market value/income aid ratio of
     2  five thousand ten-thousandths (0.5000) or greater an amount
     3  equal to seventy-five dollars ($75) multiplied by that
     4  district's average daily membership. For the school [year 2000-
     5  2001] years 2000-2001 and 2001-2002, the Commonwealth shall pay
     6  to each school district which has an average daily membership of
     7  one thousand five hundred (1,500) or less an amount equal to
     8  seventy-five dollars ($75) multiplied by that district's average
     9  daily membership.
    10     Section 22.  Section 2502.30 of the act, reenacted and
    11  amended June 22, 2001 (P.L.530, No.35), is amended to read:
    12     Section 2502.30.  Temporary Special Aid to School Districts
    13  Suffering Loss of Tax Revenue Due to Reduction in Assessed
    14  Valuation of Taxable Property.--(a)  Temporary special aid shall
    15  be paid in fiscal years 1994-1995, 1995-1996, 1996-1997, 1997-
    16  1998, 1998-1999, 1999-2000 [and], 2001-2002 and 2002-2003 to
    17  school districts experiencing a severe reduction in local
    18  revenue due to a decline in the assessed value of taxable
    19  properties. The allocation to these districts shall be
    20  determined by multiplying the reduction in assessed value
    21  between 1985-1986 and 1992-1993 by the 1992-1993 real estate
    22  millage rate. This aid shall be paid from undistributed funds
    23  not expended, encumbered or committed from appropriations for
    24  grants and subsidies made to the Department of Education. No
    25  other funds shall be used for assistance under this section.
    26  These funds shall be sufficient to provide temporary relief to
    27  seven school districts in fiscal year 1995-1996 at seventy-five
    28  per centum (75%) of the funds received in fiscal year 1994-1995,
    29  in fiscal year 1996-1997 at fifty per centum (50%) of the funds
    30  received in fiscal year 1994-1995, in fiscal year 1997-1998,
    20010H0004B4196                 - 47 -

     1  1998-1999 and in fiscal year 1999-2000 at twenty-five per centum
     2  (25%) of the funds received in fiscal year 1994-1995. For fiscal
     3  [year] years 2001-2002 and 2002-2003, to the extent funds are
     4  available as determined by the Secretary of the Budget,
     5  qualifying school districts shall receive twenty-five per centum
     6  (25%) of the funds received in fiscal year 1994-1995. [This
     7  section shall expire October 1, 2002.]
     8     (b)  Payments made pursuant to subsection (a) shall be paid
     9  from a restricted receipt account, which is hereby established,
    10  for such payments. Funds shall be transferred by the Secretary
    11  of the Budget to the restricted account only to the extent
    12  necessary to make the payments authorized by this section. The
    13  money in the restricted account is hereby appropriated from the
    14  account for purposes of this section.
    15     (c)  This section shall expire October 1, 2003.
    16     Section 23.  The act is amended by adding a section to read:
    17     Section 2502.40.  Basic Education Funding for 2001-2002
    18  School Year.--For the 2001-2002 school year, the Commonwealth
    19  shall pay to each school district a basic education funding
    20  allocation which shall consist of the following:
    21     (1)  An amount equal to the basic education funding
    22  allocation for the 2000-2001 school year pursuant to sections
    23  2502.13 and 2502.39.
    24     (2)  A base supplement calculated as follows:
    25     (i)  If the school district's 2002-2003 market value/income
    26  aid ratio is equal to or greater than .7000:
    27     (A)  Multiply the school district's 2002-2003 market
    28  value/income aid ratio by its 2001-2002 average daily
    29  membership.
    30     (B)  Multiply the product from (A) by $40,000,000.
    20010H0004B4196                 - 48 -

     1     (C)  Divide the product from (B) by the sum of the products
     2  of the 2002-2003 market value/income aid ratio multiplied by the
     3  2001-2002 average daily membership for all qualifying school
     4  districts.
     5     (ii)  If the school district's 2002-2003 market value/income
     6  aid ratio is equal to or greater than .4000 and less than .7000:
     7     (A)  Multiply the school district's 2002-2003 market
     8  value/income aid ratio by its 2001-2002 average daily
     9  membership.
    10     (B)  Multiply the product from (A) by $35,000,000.
    11     (C)  Divide the product from (B) by the sum of the products
    12  of the 2002-2003 market value/income aid ratio multiplied by the
    13  2001-2002 average daily membership for all qualifying school
    14  districts.
    15     (iii)  If the school district's 2002-2003 market value/income
    16  aid ratio is less than .4000:
    17     (A)  Multiply the school district's 2002-2003 market
    18  value/income aid ratio by its 2001-2002 average daily
    19  membership.
    20     (B)  Multiply the product from (A) by $10,000,000.
    21     (C)  Divide the product from (B) by the sum of the products
    22  of the 2002-2003 market value/income aid ratio multiplied by the
    23  2001-2002 average daily membership for all qualifying school
    24  districts.
    25     (3)  A poverty supplement calculated for qualifying school
    26  districts as follows:
    27     (i)  To qualify for the poverty supplement, a school
    28  district's 2002-2003 market value/income aid ratio shall be
    29  equal to or greater than 0.6500 and its personal income
    30  valuation when divided by its 2001-2002 average daily membership
    20010H0004B4196                 - 49 -

     1  shall be equal to or less than $100,200.
     2     (ii)  The poverty supplement shall be calculated for
     3  qualifying school districts as follows:
     4     (A)  Multiply the school district's 2001-2002 average daily
     5  membership by $20,000,000.
     6     (B)  Divide the product from (A) by the sum of the 2001-2002
     7  average daily membership for all qualifying school districts.
     8     (4)  A growth supplement calculated for qualifying school
     9  districts as follows:
    10     (i) Each school district with an increase in average daily
    11  membership between the 2000-2001 and 2001-2002 school years of
    12  less than three percent (3%) shall receive an amount equal to
    13  two hundred fifty dollars ($250) multiplied by the actual
    14  numerical increase in average daily membership between the 2000-
    15  2001 and 2001-2002 school years.
    16     (ii)  Each school district with an increase in average daily
    17  membership between the 2000-2001 and 2001-2002 school years
    18  equal to or greater than three percent (3%) shall receive an
    19  amount equal to five hundred dollars ($500) multiplied by the
    20  actual numerical increase in average daily membership between
    21  the 2000-2001 and 2001-2002 school years.
    22     (5)  Each school district will receive additional funding as
    23  necessary so that the sum of the amounts under section 2502.13
    24  and under clauses (2), (3), (4) and this clause will equal at
    25  least two percent (2%) of the amount in clause (1).
    26     Section 24.  Section 2509.1 of the act is amended by adding a
    27  subsection to read:
    28     Section 2509.1.  Payments to Intermediate Units.--* * *
    29     (b.10)  Up to nine million five hundred thousand dollars
    30  ($9,500,000) may be utilized for programs administered and
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     1  operated by intermediate units during the 2002-2003 school year
     2  for institutionalized children as established in subsection
     3  (b.1).
     4     * * *
     5     Section 25.  Section 2509.3 of the act, amended April 27,
     6  1998 (P.L.270, No.46), is amended to read:
     7     Section 2509.3.  Payments on Account of Transportation of
     8  Nonpublic School Pupils.--Each school district, regardless of
     9  classification, shall be paid by the Commonwealth the sum of
    10  thirty-five dollars ($35) for each nonpublic school pupil
    11  transported in the school year 1978-1979 through the school year
    12  1983-1984. For the school year 1984-1985 through the school year
    13  1989-1990, each school district shall be paid the sum of seventy
    14  dollars ($70) for each nonpublic school pupil transported. For
    15  the school years 1990-1991 and 1991-1992, each school district
    16  shall be paid the sum of one hundred twenty-four dollars ($124)
    17  for each nonpublic school pupil transported. For the school year
    18  1992-1993 and the 1993-1994 school year, each school district
    19  shall be paid the sum of one hundred fifty-nine dollars ($159)
    20  for each nonpublic school pupil transported. For the school year
    21  1994-1995 through the school year 1996-1997, each school
    22  district shall be paid the sum of two hundred dollars ($200) for
    23  each nonpublic school pupil transported. For the school year
    24  1997-1998 [and each school year thereafter] through the school
    25  year 2000-2001, each school district shall be paid the sum of
    26  two hundred eighty-five dollars ($285) for each nonpublic school
    27  pupil transported. For the school year 2001-2002 and each school
    28  year thereafter, each school district shall be paid the sum of
    29  three hundred eighty-five dollars ($385) for each nonpublic
    30  school pupil transported.
    20010H0004B4196                 - 51 -

     1     Section 26.  Section 2509.5 of the act is amended by adding a
     2  subsection to read:
     3     Section 2509.5.  Special Education Payments to School
     4  Districts.--* * *
     5     (kk)  For the 2002-2003 school year, each school district
     6  shall receive additional funding as necessary so that the
     7  payments school districts receive are equal to one hundred one
     8  and five tenths per centum (101.5%) of the payments to school
     9  districts for the 2001-2002 school year under subsections (gg),
    10  (hh), (ii) and (jj).
    11     Section 27.  Section 2517(d) of the act, amended June 7, 1993
    12  (P.L.49, No.16), is amended to read:
    13     Section 2517.  Payments.--* * *
    14     (d)  Subsection (c) of this section shall apply to:
    15     (1)  All payments to which a school district is entitled
    16  under any provision of sections 2502, 2502.3, 2502.4, 2502.8,
    17  2502.9 and 2592 for the school year 1981-1982.
    18     (2)  Payments to which a school district is entitled under
    19  any provision of sections 2502, 2502.8 and 2502.11 for the
    20  school year 1982-1983 and the school year 1983-1984.
    21     (3)  Payments to which a school district is entitled under
    22  any provision of sections 2502, 2502.8, 2502.11, 2502.13 and
    23  2502.20 for the school year 1984-1985 [and each school year
    24  thereafter.] through the school year 2000-2001.
    25     (4)  Payments to which a school district is entitled under
    26  any provision of sections 2502, 2502.8, 2502.11, 2502.13,
    27  2502.40 and 2591.1 for the school year 2001-2002 and each school
    28  year thereafter.
    29     Section 28.  The act is amended by adding a section to read:
    30     Section 2591.1.  Commonwealth Reimbursements for Charter
    20010H0004B4196                 - 52 -

     1  Schools and Cyber Charter Schools.--For the 2001-2002 school
     2  year, the Commonwealth shall pay to each school district with
     3  resident students enrolled in a charter school, a charter school
     4  approved under section 1717-A or 1718-A which provides
     5  instruction through the Internet or other electronic means or a
     6  cyber charter school as defined pursuant to Article XVII-A an
     7  amount equal to thirty percent (30%) of the total funding
     8  required under section 1725-A(a). If insufficient funds are
     9  appropriated to make Commonwealth reimbursements under this
    10  section, the reimbursements shall be made on a pro rata basis.
    11     Section 29.  Section 2595(f.1) of the act, amended May 10,
    12  2000 (P.L.44, No.16), is amended and the section is amended by
    13  adding a subsection to read:
    14     Section 2595.  School Performance Incentives.--* * *
    15     (f.1)  Up to three million dollars ($3,000,000) of the
    16  allocation for school performance funding under this section
    17  [shall] may be used to fund an incentive program for School
    18  District Performance Measures (SDPM) to be based upon the
    19  individual performance of employes of a school district.
    20     (1)  School districts shall apply annually for an SDPM award
    21  in a format established by the Department of Education.
    22     (2)  The Department of Education shall review school district
    23  professional teacher accountability plans that contain
    24  differentiated rewards and sanctions based on individual job
    25  performance.
    26     (3)  The Department of Education shall review the submitted
    27  school district accountability plans and rate them for impact on
    28  the individual employe according to financial and programmatic
    29  measures, including compensation and training and other rewards
    30  and sanctions.
    20010H0004B4196                 - 53 -

     1     (4)  The Department of Education shall use the total impact
     2  of each plan times the number of professional staff affected in
     3  the school district to award SDPM incentive grants to school
     4  districts.
     5     (5)  If the amount for awards under this subsection exceeds
     6  the amount allocated for that purpose, the awards shall be
     7  reduced to reflect the amount allocated.
     8     (f.2)  Pursuant to guidelines issued by the Department of
     9  Education, up to ten percent (10%) of the allocation for school
    10  performance funding under this section may be used by the
    11  department to establish an incentive program to reward school
    12  entities that show improved academic performance as evidenced by
    13  a decline in the percentage of students who score below the
    14  basic level of proficiency as defined by 22 Pa.Code Ch. 4
    15  (relating to academic standards and assessment) and who are in
    16  disaggregated groups, including the following:
    17     (1)  Economically disadvantaged students.
    18     (2)  Students from major racial and ethnic groups.
    19     (3)  Students with disabilities.
    20     (4)  Students with limited English proficiency.
    21     * * *
    22     Section 30.  The act is amended by adding a section to read:
    23     Section 2599.1.  Multipurpose Service Center Grant Program.--
    24  (a)  The Department of Education may administer a grant program
    25  to assist multipurpose service centers in the delivery of
    26  certain services to displaced homemakers and single parents in
    27  accordance with department guidelines.
    28     (b)  (1)  To the extent that funds are available, grants
    29  shall be awarded to multipurpose service centers that offer job
    30  counseling, job training, financial management, employment
    20010H0004B4196                 - 54 -

     1  referral and any other services that the department may require.
     2  Priority in the award of grants shall be afforded to those
     3  multipurpose service centers that received State assistance
     4  during the 1998-1999 fiscal year.
     5     (2)  Qualified multipurpose service centers shall apply for
     6  grants in the form and manner required by the department.
     7     (c)  As used in this section, the following words and phrases
     8  shall have the meanings given to them in this subsection:
     9     "Displaced homemaker" or "single parent."  An individual who:
    10     (1)  Has worked in the home, providing unpaid household
    11  services for family members.
    12     (2)  Is underemployed.
    13     (3)  Has had or is having difficulty securing employment.
    14     (4)  Has been dependent on the income of another family
    15  member but is no longer supported by such income, has been
    16  dependent on government assistance or is supported as the parent
    17  of minor children by government assistance or other support.
    18     "Multipurpose service center."  A community-based
    19  organization, school district, joint school district or
    20  intermediate unit, postsecondary school, institution of higher
    21  learning or area vocational-education school that provides job
    22  counseling services; job training, education and placement
    23  services; financial management services, outreach information
    24  services with respect to Federal and State employment and
    25  education, health and unemployment assistance programs to
    26  displaced homemakers and single parents.
    27     Section 31.  Section 2603-B(d) of the act, added March 30,
    28  1988 (P.L.321, No.43), is amended by adding a clause to read:
    29     Section 2603-B.  Powers and Duties of the Board.--* * *
    30     (d)  The board shall also have the authority and duty to:
    20010H0004B4196                 - 55 -

     1     * * *
     2     (10)  (i)  Approve or disapprove standards proposed by the
     3  department in order to comply with the provisions of the No
     4  Child Left Behind Act of 2001 (Public Law 107-110, 115 Stat.
     5  1425) to maintain the eligibility of this Commonwealth to
     6  receive Federal funding for education programs. The board shall
     7  approve or disapprove the standards within 30 days of submission
     8  to the board's office or at its next scheduled meeting,
     9  whichever is sooner. Failure of the board to approve or
    10  disapprove the standards within the time established under this
    11  section shall be deemed an approval of the standards.
    12     (ii)  Standards promulgated under this section shall be
    13  deposited with the Pennsylvania Bulletin for publication.
    14     (iii)  These standards shall be exempt from:
    15     (A)  Sections 201 through 205 of the act of July 31, 1968
    16  (P.L.769, No.240), referred to as the Commonwealth Documents
    17  Law.
    18     (B)  Section 204(b) of the act of October 15, 1980 (P.L.950,
    19  No.164), known as the "Commonwealth Attorneys Act."
    20     (C)  The act of June 25, 1982 (P.L.633, No.181), known as the
    21  "Regulatory Review Act."
    22     (D)  This subclause shall expire June 30, 2003.
    23     * * *
    24     Section 32.  The State Board of Education shall adopt
    25  revisions to 22 Pa. Code § 4.24 (relating to high school
    26  graduation requirements) that, at a minimum, delete from the
    27  regulation the requirement that school districts affix to
    28  diplomas State Seals of Proficiency or Distinction. Due to the
    29  urgent need for an expedited but public regulatory process, the
    30  State Board of Education, in adopting such revised regulations,
    20010H0004B4196                 - 56 -

     1  shall follow the procedures set forth in the act of July 31,
     2  1968 (P.L.769, No.240), referred to as the Commonwealth
     3  Documents Law, and the act of June 25, 1982 (P.L.633, No.181),
     4  known as the Regulatory Review Act, for the promulgation and
     5  review of final-omitted regulations.
     6     Section 33.  The purpose of the addition of Subdivision (c)
     7  of Article XVII-A is to provide for the continued operation of
     8  charter schools approved under section 1717-A or 1718-A of the
     9  act and which provide instruction through the Internet or other
    10  electronic means and to establish additional requirements for
    11  all cyber charter schools.
    12     Section 34.  The sum of $25,000,000 is hereby appropriated to
    13  the Department of Education for payments to school districts of
    14  the first class subject to the following:
    15         (1)  Payment of funds from this appropriation shall be
    16     contingent upon the determination of the Secretary of
    17     Education that a school district of the first class, which
    18     has been declared distressed pursuant to section 691(c) of
    19     the act of March 10, 1949 (P.L.30, No.14), known as the
    20     Public School Code of 1949, has satisfied all of the
    21     following by December 31, 2002: achieved $25,000,000 in
    22     savings through elimination of redundancies, noninstructional
    23     operational efficiencies and reductions in administrative
    24     personnel at district headquarters; complied with sections
    25     697 and 2134 of the Public School Code of 1949; and
    26     established a Uniform Code of Conduct for all students.
    27         (2)  Funds received from this appropriation shall first
    28     be expended by the School Reform Commission of a school
    29     district of the first class for all costs associated with the
    30     operation of schools governed by agreements pursuant to
    20010H0004B4196                 - 57 -

     1     section 696(i)(2) of the Public School Code of 1949 and for
     2     the operation of schools previously designated as partnership
     3     schools under the School Reform Commission Resolution Number
     4     10 of April 17, 2002, before the funds can be expended on any
     5     other schools identified for targeted reforms by the School
     6     Reform Commission pursuant to that resolution. Such
     7     expenditures shall include costs associated with targeted
     8     reform efforts such as: enhancements in curriculum;
     9     enhancements or improvements in instructional supplies,
    10     materials and equipment, including computer hardware and
    11     software used to provide instruction; enhancements in
    12     professional development programs; improved or newly
    13     established accountability measures for school employees; and
    14     other costs associated with such agreements. Additionally, as
    15     a condition for payment of these funds to school districts of
    16     the first class, the School Reform Commission must enter into
    17     such agreements no later than August 1, 2002.
    18         (3)  Funds received from this appropriation shall be
    19     distributed by the School Reform Commission of a school
    20     district of the first class in accordance with a funding
    21     methodology approved by the Secretary of Education and shall
    22     be supplemental and in addition to any amount of Federal,
    23     State and local funds allocated to those schools previously
    24     designated as partnership schools by a school district of the
    25     first class under its standard budgeting process.
    26         (4)  Receipt of funds from this appropriation shall in no
    27     way be deemed to authorize those schools previously
    28     designated as partnership schools by a school district of the
    29     first class to be treated differently from other schools in
    30     the school district of the first class in terms of services
    20010H0004B4196                 - 58 -

     1     or other funding provided by the school district of the first
     2     class.
     3         (5)  The secretary shall not pay funds from this
     4     appropriation to a school district of the first class until
     5     the secretary determines that the conditions in this section
     6     have been satisfied.
     7     Section 35.  This act shall take effect as follows:
     8         (1)  The following provisions shall take effect July 1,
     9     2002, or immediately, whichever is later:
    10             (i)  The amendment of section 511(e) of the act.
    11             (ii)  The amendment of section 518 of the act.
    12             (iii)  The amendment of section 687 of the act.
    13             (iv)  The amendment of section 910-A of the act.
    14             (v)  The amendment of section 1725-A of the act.
    15             (vi)  The addition of Subdivision (c) of Article
    16         XVII-A of the act.
    17             (vii)  The amendment of section 1705-B of the act.
    18             (viii)  The amendment of section 1901-C(1) of the
    19         act.
    20             (ix)  The amendment of section 2502.13 of the act.
    21             (x)  The amendment of section 2502.30 of the act.
    22             (xi)  The addition of section 2502.40 of the act.
    23             (xii)  The amendment of section 2509.1 of the act.
    24             (xiii)  The amendment of section 2509.3 of the act.
    25             (xiv)  The amendment of section 2509.5 of the act.
    26             (xv)  The amendment of section 2517(d) of the act.
    27             (xvi)  The addition of section 2591.1 of the act.
    28             (xvii)  The amendment of section 2595(f.1) of the
    29         act.
    30             (xviii)  The addition of section 2599.1 of the act.
    20010H0004B4196                 - 59 -

     1             (xix)  Section 33 of this act.
     2             (xx)  Section 34 of this act.
     3         (2)  The following provisions shall take effect
     4     immediately:
     5             (i)  The amendment of section 102 of the act.
     6             (ii)  The amendment of section 502.1(f) of the act.
     7             (iii)  The amendment of section 696(a), (b) and (h)
     8         of the act.
     9             (iv)  The addition of section 1109.2 of the act.
    10             (v)  The amendment of section 1301 of the act.
    11             (vi)  The amendment of section 1501-C of the act.
    12             (vii)  The amendment of section 1505-C of the act.
    13             (viii)  The amendment of section 1613 of the act.
    14             (ix)  The amendment of section 1703-A of the act.
    15             (x)  The amendment of section 1732-A of the act.
    16             (xi)  The amendment of section 1714-B(h) of the act.
    17             (xii)  The addition of section 2134 of the act.
    18             (xiii)  The amendment of section 2501(14.1) of the
    19         act.
    20             (xiv)  The addition of section 2603-B(d)(10) of the
    21         act.
    22             (xv)  Section 32 of this act.
    23             (xvi)  This section.
    24         (3)  The remainder of this act shall take effect in 60
    25     days.




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