<-1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," providing for reopening of the school
6district annual budget.

<-7Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
8act relating to the public school system, including certain
9provisions applicable as well to private and parochial
10schools; amending, revising, consolidating and changing the
11laws relating thereto," in preliminary provisions, further
12providing for the Special Education Funding Commission; in
13school finances, providing for reopening of school district
14annual budget and further providing for annual budget,
15additional or increased appropriations and transfer of funds;
16in grounds and buildings, further providing for limitation on
17new applications for Department of Education approval of
18public school building projects; in certification of
19teachers, further providing for disqualification and
20providing for professional educator discipline fee; in
21community colleges, further providing for financial program
22and reimbursement of payments; in community education
23councils, further providing for State funding; in school
24districts of the first class, providing for budget reports;
25and in reimbursements by Commonwealth and between school
26districts, providing for basic education funding for 2012-
272013 school year and for payment on account of equipment

1purchased for area vocational-technical schools and school
2districts, further providing for payments to intermediate
3units and for special education payments to school districts;
4providing for assistance to school districts in financial
5recovery or financial watch status; further providing for
6Pennsylvania Accountability Grants; and providing for
7Distance Education Program.

8The General Assembly finds and declares as follows:

9(1) It is the purpose of this act to provide fiscal
10support for the educational system in the Commonwealth.

11(2) Pennsylvania currently has over 3,100 public schools
12organized into 500 school districts, and those schools
13educate approximately 1.7 million students every year.

14(3) Article III, section 24, of the Constitution of
15Pennsylvania requires the General Assembly to adopt all
16appropriations for the operation of government in the
17Commonwealth. The Supreme Court has repeatedly affirmed that,
18"It is fundamental within Pennsylvania's tripartite system
19that the General Assembly enacts the legislation establishing
20those programs which the state provides for its citizens and
21appropriates the funds necessary for their operation."

22(4) Article III, section 11, of the Constitution of
23Pennsylvania requires the adoption of a general appropriation
24bill that embraces "nothing but appropriations." While actual
25appropriations can be contained in a General Appropriation
26Act, the achievement and implementation of a comprehensive
27budget involves much more than appropriations. Ultimately,
28the budget has to be balanced under Article VIII, section 13,
29of the Constitution of Pennsylvania. This may necessitate
30changes to sources of funding and enactment of statutes to
31achieve full compliance with these constitutional provisions.

32(5) Therefore, it is the intent of the General Assembly
33through this act to provide implementation of the 2013-2014

1Commonwealth budget as it affects the operations of and
2funding for our educational system and promotes the health,
3safety and welfare of our children.

4(6) This act will:

5(i) Provide a community college funding formula.

6(ii) Provide basic education funding for the 2012-
72013 school year.

8(iii) Provide for special education payments.

9(iv) Provide funds for implementing the act of
10December 12, 1973 (P.L.397, No.141), known as the
11Professional Educator Discipline Act.

12(v) Provide for payment on account of equipment
13purchased for area vocational-technical schools and
14technical institutes.

15(vi) Remove the health assessment requirement for a
16teacher's certification to avoid duplicate costs.

17(vii) Provide for funding to community education
18councils.

19(viii) Provide funding for financial aid in distance
20education through the Pennsylvania Higher Education
21Assistance Agency.

22The General Assembly of the Commonwealth of Pennsylvania
23hereby enacts as follows:

<-24Section 1. The act of March 10, 1949 (P.L.30, No.14), known
25as the Public School Code of 1949, is amended by adding a
26section to read:

27Section 618. Reopening of the School District Annual
28Budget.--Notwithstanding any other provision of law, a board of
29school directors of a school district may reopen its annual
30budget for a period of 30 days after the annual State general

1appropriation act is enacted, to reflect Federal and State
2allocations for the current fiscal year provided by the annual
3State general appropriation act.

4Section 2. This act shall take effect immediately.

<-5Section 1. Section 122(i)(5) of the act of March 10, 1949
6(P.L.30, No.14), known as the Public School Code of 1949, added
7April 25, 2013 (P.L.12, No.3), is amended to read:

8Section 122. Special Education Funding Commission.--* * *

9(i) The commission shall have all of the following powers
10and duties:

11* * *

12(5) Issue a report of its findings and recommendations to
13the Governor, the President pro tempore of the Senate, the
14Majority Leader and Minority Leader of the Senate, the Education
15Committee of the Senate, the Speaker of the House of
16Representatives, the Majority Leader and Minority Leader of the
17House of Representatives, the Education Committee of the House
18of Representatives, the Secretary of Education and the State
19Board of Education not later than [September] November 30, 2013.

20* * *

21Section 2. The act is amended by adding a section to read:

22Section 616.1.  Reopening of School District Annual Budget.--
23Notwithstanding any other provision of law, a board of school
24directors of a school district may reopen its annual budget for
25a period of thirty (30) days after the annual General
26Appropriation Act is enacted to reflect Federal and State
27allocations for the current fiscal year provided by the annual
28General Appropriation Act.

29Section 3. Section 687(h) of the act, added August 5, 1991
30(P.L.219, No.25), is amended to read:

1Section 687. Annual Budget; Additional or Increased
2Appropriations; Transfer of Funds.--* * *

3(h) Beginning with the adjusted final fiscal year 1991-1992
4budget, and each fiscal year thereafter, on or before September
515, each school district shall furnish to the Education
6Committee of the Senate and the Education Committee of the House
7of Representatives [a] an electronic copy of the school
8district's final adopted annual budget to include the amount of
9district revenues being held in excess of its total budgeted
10expenditures. Such documentation shall include an explanation of
11the district's need to maintain the revenues in this fund
12balance.

13* * *

14Section 4. Section 732.1 of the act, added June 30, 2012
15(P.L.684, No.82), is amended to read:

16Section 732.1. Limitation on New Applications for Department
17of Education Approval of Public School Building Projects.--(a)
18For the 2012-2013 fiscal year and the 2013-2014 fiscal year, the
19Department of Education shall not accept or approve new school
20building construction or reconstruction project applications.
21Completed school building construction or reconstruction project
22applications received by the Department of Education by October
231, 2012, are not subject to this provision.

24(b) The Department of Education shall, in consultation with
25school district officials and the General Assembly, conduct a
26review of the Department of Education's current process through
27which public school building projects are reviewed and approved
28for Commonwealth reimbursement. The review shall incorporate an
29analysis of impacting local factors, including, but not limited
30to, tax effort and building requirements, and shall make

1recommendations to the chair and minority chair of the
2Appropriations Committee of the Senate, the chair and minority
3chair of the Education Committee of the Senate, the chair and
4minority chair of the Appropriations Committee of the House of
5Representatives and the chair and minority chair of the
6Education Committee of the House of Representatives by May 1,
72013. The Department of Education shall also conduct a Statewide 
8analysis of school facilities and future capital needs and shall 
9submit a preliminary report on that analysis by May 1, 2014.

10Section 5. Section 1209 of the act, amended November 23,
112010 (P.L.1350, No.123), is amended to read:

12Section 1209. Disqualifications.--No teacher's certificate
13shall be granted to any person who:

14[(1) Has not submitted, upon a blank furnished by the
15Secretary of Education, a certificate from a physician, 
16certified registered nurse practitioner or physician assistant 
17licensed or certified in this Commonwealth, or in any other
18state or the District of Columbia, setting forth that the
19applicant is not disqualified by reason of a mental or physical 
20disability or a communicable disease from the successful
21performance of the essential functions of a teacher with or 
22without a reasonable accommodation.]

23(2) Does not have a good moral character.

24(3) Engages in the illegal use of controlled substances or
25alcoholic beverages. An applicant for certification may overcome
26the disqualification under this paragraph and receive a teaching
27certificate if the applicant is reviewed by the Department of
28Education pursuant to the requirement of paragraph (2) and
29determined to be of good moral character.

30Section 6. The act is amended by adding a section to read:

1Section 1216.1. Professional Educator Discipline Fee.--(a)
2In addition to any application fee established by the Department
3of Education, an applicant for certification from the department
4shall pay a professional educator discipline fee of twenty-five
5dollars ($25).

6(b) The following shall apply:

7(1) There is created in the General Fund a restricted
8receipts account to be known as the Professional Educator
9Discipline Account.

10(2) The Professional Educator Discipline Account shall be
11funded by money received under this section, and any interest
12derived from funds in the Professional Educator Discipline
13Account.

14(3) The funds in the Professional Educator Discipline
15Account shall be appropriated to the department for
16administration, enforcement and adjudication by the department
17and the Professional Standards and Practices Commission under
18the act of December 12, 1973 (P.L.397, No.141), known as the
19"Professional Educator Discipline Act."

20(c) Notwithstanding any other provision of law, the
21department may increase the fee established under subsection (a)
22if the department determines that the cost of enforcement
23exceeds the revenue generated by the fee and by all other fees,
24fines and civil penalties provided for under the "Professional
25Educator Discipline Act."

26Section 7. Section 1913-A(b)(1.6)(v) of the act, amended
27June 30, 2012 (P.L.684, No.82), is amended and the clause is
28amended by adding a subclause to read:

29Section 1913-A. Financial Program; Reimbursement of
30Payments.--* * *

1(b) * * *

2(1.6) For the 2006-2007 fiscal year and each fiscal year
3thereafter, the payment for a community college shall consist of
4the following:

5* * *

6(v) Subclauses (i), (ii), (iii) and (iv) shall not apply to
7the 2011-2012 [and], 2012-2013 and 2013-2014 fiscal years.

8* * *

9(viii) For the 2013-2014 fiscal year, each community college
10shall receive an amount equal to the sum of the following:

11(A) A reimbursement for operating costs determined by:

12(I) dividing the amount of the funding that the community
13college received in fiscal year 2012-2013 under subclause
14(vii)(A) by the total amount of funding provided to community
15colleges in fiscal year 2012-2013 under subclause (vii)(A); and

16(II) multiplying the quotient under subparagraph (I) by
17one hundred sixty-eight million one hundred sixty-seven thousand
18dollars ($168,167,000).

19(B) An economic development stipend determined by:

20(I) dividing the amount of funding that the community
21college received in fiscal year 2012-2013 under subclause (vii)
22(B) by the total amount of funding provided to all community
23colleges in fiscal year 2012-2013 under subclause (vii)(B); and

24(II) multiplying the quotient under subparagraph (I) by
25forty-four million dollars ($44,000,000).

26* * *

27Section 8. Section 1905-D of the act is amended by adding a
28subsection to read:

29Section 1905-D. State Funding.--* * *

30(e) Notwithstanding the provisions of subsection (d), for

1the 2013-2014 fiscal year, funds appropriated to community
2education councils shall be distributed as follows:

3(1) Each community education council which received funding
4in fiscal year 2012-2013 shall receive an amount equal to the
5amount it received in that fiscal year and a pro rata share of
6$227,000.

7(2) (Reserved).

8Section 9. Section 2133(d) of the act, added February 4,
91982 (P.L.1, No.1), is amended to read:

10Section 2133. Budget Reports.--* * *

11(d) Districts of the first class shall send electronically
12reports containing the quarterly budgets to the chairmen and
13minority chairmen of the Education Committees of the House of
14Representatives and the Senate, the Philadelphia City Council
15President, and the Mayor of Philadelphia thirty (30) days after
16the close of each quarter.

17Section 10. The act is amended by adding sections to read:

18Section 2502.52. Basic Education Funding for 2012-2013
19School Year.--(a) For the 2012-2013 school year, the
20Commonwealth shall pay to each school district a basic education
21funding allocation which shall consist of the following:

22(1)  An amount equal to the basic education funding
23allocation for the 2011-2012 school year pursuant to section
242502.51.

25(2) A student-focused funding supplement comprised of the
26following:

27(i) The school district's average daily membership for the
282012-2013 school year multiplied by one hundred eight dollars
29($108).

30(ii) The product under paragraph (i) multiplied by the

1school district's market value/income aid ratio for the 2013-
22014 school year.

3(3) An English language learner high incidence supplement
4calculated for qualifying school districts as follows:

5(i) To qualify for the English language learner high
6incidence supplement, a school district's 2012-2013 market
7value/income aid ratio must be greater than seven thousand ten-
8thousandths (0.7000) and its English language learner
9concentration must be greater than ten and eight tenths percent
10(10.8%).

11(ii) The English language learner high incidence supplement
12shall be calculated for qualifying school districts as follows:

13(A) (I) For qualifying school districts with a 2011-2012
14average daily membership greater than eighteen thousand five
15hundred (18,500), multiply the qualifying school district's
162011-2012 average daily membership by eight million dollars
17($8,000,000).

18(II) Divide the product from subclause (I) by the sum of the
192011-2012 average daily membership for all qualifying school
20districts with a 2011-2012 average daily membership greater than
21eighteen thousand five hundred (18,500).

22(B) (I) For qualifying school districts with a 2011-2012
23average daily membership less than eighteen thousand (18,000),
24multiply the qualifying school district's 2011-2012 average
25daily membership by five million one hundred fifty thousand
26dollars ($5,150,000).

27(II) Divide the product from subclause (I) by the sum of the
282011-2012 average daily membership for all qualifying school
29districts with a 2011-2012 average daily membership less than
30eighteen thousand (18,000).

1(C) (I) For a qualifying school district with a 2011-2012
2average daily membership greater than eighteen thousand (18,000)
3and less than eighteen thousand five hundred (18,500), multiply
4the qualifying school district's 2011-2012 average daily
5membership by one million five hundred thousand dollars
6($1,500,000).

7(II) Divide the product from subclause (I) by the sum of the
82011-2012 average daily membership for all qualifying school
9districts with a 2011-2012 average daily membership greater than
10eighteen thousand (18,000) and less than eighteen thousand five
11hundred (18,500).

12(4) A charter and cyber charter school extraordinary
13enrollment supplement calculated for qualifying school districts
14as follows:

15(i) To qualify for the charter and cyber charter school
16extraordinary enrollment supplement, a school district's 2012-
172013 market value/income aid ratio must be greater than eight
18thousand ten-thousandths (0.8000), its charter and cyber charter
19school concentration must be greater than twenty percent (20%)
20and its market value/income aid ratio must have increased from
21the 1991-1992 school year to the 2012-2013 school year by more
22than ten percent (10%).

23(ii) The charter and cyber charter school extraordinary
24enrollment supplement shall be calculated for qualifying school
25districts as follows:

26(A) (I) For a qualifying school district with a 2011-2012
27average daily membership less than one thousand (1,000),
28multiply the qualifying school district's 2011-2012 average
29daily membership by two hundred fifty thousand dollars
30($250,000).

1(II) Divide the product from subclause (I) by the sum of the
22011-2012 average daily membership for all qualifying school
3districts with 2011-2012 average daily membership less than one
4thousand (1,000).

5(B) (I) For a qualifying school district with a 2011-2012
6average daily membership greater than one thousand (1,000),
7multiply the qualifying school district's 2011-2012 average
8daily membership by three million seven hundred fifty thousand
9dollars ($3,750,000).

10(II) Divide the product of subclause (I) by the sum of the
112011-2012 average daily membership for all qualifying school
12districts with an 2011-2012 average daily membership greater
13than one thousand (1,000).

14(5) An increasing aid ratio supplement calculated for
15qualifying school districts as follows:

16(i) To qualify for the increasing aid ratio supplement, a
17school district's 2012-2013 market value/income aid ratio must
18be greater than six thousand ten-thousandths (0.6000), its 2011-
192012 average daily membership must be greater than eleven
20thousand (11,000), its number of students eligible for free or
21reduced-price meals under the National School Lunch Program
22during the 2012-2013 school year must be greater than six
23thousand (6,000) and its market value/income aid ratio must have
24increased from the 1991-1992 school year to the 2012-2013 school
25year by more than seventy percent (70%).

26(ii) The increasing aid ratio supplement shall be calculated
27for qualifying school districts as follows:

28(A) Multiply the qualifying school district's 2011-2012
29average daily membership by two million five hundred thousand
30dollars ($2,500,000).

1(B) Divide the product from clause (A) by the sum of the
22011-2012 average daily membership for all qualifying school
3districts.

4(6) A small school district supplement calculated for
5qualifying school districts as follows:

6(i) To qualify for a small school district supplement, a
7school district's 2012-2013 market value/income aid ratio must
8be less five thousand ten-thousandths (0.5000), its 2011-2012
9average daily membership must be less than one thousand six
10hundred (1,600), its 2011-2012 equalized millage rate must be
11greater than sixteen (16) and its charter and cyber charter
12school concentration must be greater than five percent (5%).

13(ii) The small school district supplement shall be
14calculated for qualifying school districts as follows:

15(A) Multiply the qualifying school district's 2011-2012
16average daily membership by five hundred thousand dollars
17($500,000).

18(B) Divide the product from clause (A) by the sum of the
192011-2012 average daily membership for all qualifying school
20districts.

21(7) A small rural school district supplement calculated for
22qualifying school districts as follows:

23(i) To qualify for the small rural school district
24supplement, a school district's 2012-2013 market value/income
25aid ratio must be greater than five thousand ten-thousandths
26(0.5000) and its 2011-2012 average daily membership must be less
27than two hundred (200).

28(ii) The small rural school district supplement shall be
29calculated for qualifying school districts as follows:

30(A) Multiply the qualifying school district's 2011-2012

1average daily membership by two hundred fifty thousand dollars
2($250,000).

3(B) Divide the product from clause (A) by the sum of the
42011-2012 average daily membership for all qualifying school
5districts.

6(8) A rural school district supplement calculated for
7qualifying school districts as follows:

8(i) To qualify for the rural school district supplement, a
9school district's 2012-2013 market value/income aid ratio must
10be greater than sixty-seven hundred ten-thousandths (0.6700) and
11less than seven thousand ten-thousandths (0.7000), its 2011-2012
12average daily membership must be greater than one thousand eight
13hundred (1,800) and less than two thousand (2,000) and its 2011-
142012 equalized millage rate must be greater than nineteen (19)
15and less than twenty one (21).

16(ii) The rural school district supplement shall be
17calculated for qualifying school districts as follows:

18(A) Multiply the qualifying school district's 2011-2012
19average daily membership by five hundred thousand dollars
20($500,000).

21(B) Divide the product from clause (A) by the sum of the
222011-2012 average daily membership for all qualifying school
23districts.

24(9) A second class school district supplement calculated for
25qualifying school districts as follows:

26(i) To qualify for the second class school district
27supplement, a school district must have been classified as a
28second class school district during the 2000 census, it must
29have received State reimbursements pursuant to section 2591.1
30for the 2009-2010 school year in an amount greater than three

1million five hundred thousand dollars ($3,500,000) and it must
2have a 2011-2012 average daily membership greater than eight
3thousand (8,000).

4(ii) The second class school district supplement shall be
5calculated for qualifying school districts as follows:

6(A) Multiply the qualifying school district's 2011-2012
7average daily membership by five hundred thousand dollars
8($500,000).

9(B) Divide the product from clause (A) by the sum of the
102011-2012 average daily membership for all qualifying school
11districts.

12(10) A personal income supplement calculated for qualifying
13school districts as follows:

14(i) To qualify for the personal income supplement, a school
15district's 2012-2013 market value/income aid ratio must be
16greater than fifty-two hundred ten-thousandths (0.5200) and less
17than sixty-five hundred ten-thousandths (0.6500), its 2011-2012
18average daily membership must be greater than five thousand two
19hundred (5,200), its 2011-2012 equalized millage rate must be
20greater than twenty-two (22) and less than twenty-six (26), its
21adjusted personal income valuation for the 2010 tax year must be
22greater than six hundred million dollars ($600,000,000) and less
23than nine hundred million dollars ($900,000,000) and its number
24of students eligible for free or reduced-price meals under the
25National School Lunch Program during the 2012-2013 school year
26must be greater than two thousand (2,000).

27(ii) The personal income supplement shall be calculated for
28qualifying school districts as follows:

29(A) For each school district with an adjusted personal
30income valuation for the 2010 tax year greater than eight

1hundred million dollars ($800,000,000), the personal income
2supplement shall be two million dollars ($2,000,000).

3(B) For each school district with an adjusted personal
4income valuation for the 2010 tax year less than eight hundred
5million dollars ($800,000,000), the personal income supplement
6shall be one million five hundred thousand dollars ($1,500,000).

7(11) A second class A county school district supplement
8calculated for qualifying school districts as follows:

9(i) To qualify for the second class A county school district
10supplement, a school district must be located in a county of the
11second class A as determined by the 2010 census, its 2012-2013
12market value/income aid ratio must be greater than sixty-eight
13hundred ten-thousandths (0.6800), its 2011-2012 average daily
14membership must be greater than four thousand (4,000) and its
152011-2012 equalized millage rate must be greater than twenty
16seven (27).

17(ii) The second class A county school district supplement
18shall be calculated for qualifying school districts as follows:

19(A) Multiply the qualifying school district's 2011-2012
20average daily membership by one million dollars ($1,000,000).

21(B) Divide the product from clause (A) by the sum of the
222011-2012 average daily membership of all qualifying school
23districts.

24(12) A third class county school district supplement
25calculated for qualifying school districts as follows:

26(i) To qualify for the third class county school district
27supplement, a school district must be located in a county of the
28third class as determined by the 2010 census, its 2012-2013
29market value/income aid ratio must be greater than six thousand
30ten-thousandths (0.6000) and less than sixty-nine hundred ten-

1thousandths (0.6900) and its 2011-2012 average daily membership
2must be greater than ten thousand (10,000) and less than
3thirteen thousand (13,000).

4(ii) The third class county school district supplement shall
5be calculated for qualifying school districts as follows:

6(A) Multiply the qualifying school district's 2011-2012
7average daily membership by one million dollars ($1,000,000).

8(B) Divide the product from clause (A) by the sum of the
92011-2012 average daily membership of all qualifying school
10districts.

11(13) A third class county small school district supplement
12calculated for qualifying school districts as follows:

13(i) To qualify for the third class county small school
14district supplement, a school district must be located in a
15county of the third class as determined by the 2010 census, its
162012-2013 market value/income aid ratio must be greater than
17seventy-six hundred ten-thousandths (0.7600), its 2011-2012
18average daily membership must be less than two thousand (2,000)
19and its number of students eligible for free or reduced-price
20meals under the National School Lunch Program during the 2012-
212013 school year must be less than eight hundred (800).

22(ii) The third class county small school district supplement
23shall be calculated for qualifying school districts as follows:

24(A) Multiply the qualifying school district's 2011-2012
25average daily membership by one million dollars ($1,000,000).

26(B) Divide the product from clause (A) by the sum of the
272011-2012 average daily membership of all qualifying school
28districts.

29(14) A growth supplement calculated for qualifying school
30districts as follows:

1(i) To qualify for the growth supplement, a school
2district's 2012-2013 market value/income aid ratio must be
3greater than fifty-one hundred ten-thousandths (0.5100) and less
4than sixty-two hundred ten-thousandths (0.6200), its 2011-2012
5average daily membership must be greater than three thousand two
6hundred (3,200) and less than four thousand (4,000), its
7equalized millage rate must be greater than twenty-one (21) and
8less than twenty-three (23) and its number of students eligible
9for free or reduced price lunch under the National School Lunch
10Program during the 2012-2013 school year must be greater than
11one thousand two hundred (1,200) and less than one thousand
12seven hundred (1,700).

13(ii) The growth supplement shall be calculated for
14qualifying school districts as follows:

15(A) For each school district with a 2012-2013 market
16value/income aid ratio less than fifty-three hundred ten-
17thousandths (0.5300), the growth supplement shall be one hundred
18sixty thousand dollars ($160,000).

19(B) For each school district with a 2012-2013 market
20value/income aid ratio greater than fifty-three hundred ten-
21thousandths (0.5300) and less than six thousand ten-thousandths
22(0.6000), the growth supplement shall be five hundred thousand
23dollars ($500,000).

24(C) For each school district with a 2012-2013 market
25value/income aid ratio greater than six thousand ten-thousandths
26(0.6000), the growth supplement shall be two hundred thousand
27dollars ($200,000).

28(b) The data used to calculate the provisions contained in
29subsection (a)(3), (4), (5), (6), (7), (8), (9), (10), (11),
30(12), (13) and (14) shall be based on information available to

1the Department of Education as of June 30, 2013.

2(c) Any undistributed funds shall be deposited in the
3Financial Recovery School District Transitional Loan Account.

4(d) For the purposes of this section:

5(1) The English language learner concentration shall be
6determined by dividing the school district's number of enrolled
7students identified as limited English proficient during the
82011-2012 school year by its 2011-2012 average daily membership.

9(2) The charter and cyber charter school concentration shall
10be determined by dividing the school district's 2011-2012
11average daily membership enrolled in charter and cyber charter
12schools by its 2011-2012 average daily membership.

13Section 2508.5. Payment on Account of Equipment Purchased
14for Area Vocational-Technical Schools and School Districts.--(a)
15For the 2013-2014 school year, each area vocational-technical
16school and school district with an approved vocational program
17that applies to, and is approved by, the Department of Education
18under subsection (b) for funding for the purchase of equipment
19that meets industry standards for the purpose of training to
20students shall receive a grant in an amount equal to the sum of
21the following:

22(1) An equal share of one million five hundred thousand
23dollars ($1,500,000), determined by dividing one million five
24hundred thousand dollars ($1,500,000) by the total number of
25area vocational-technical schools and school districts that have
26been approved for funding by the Department of Education under
27subsection (b).

28(2) A per student amount calculated as follows:

29(i) Multiply the 2012-2013 average daily membership in
30approved vocational education programs for each area vocational-

1technical school or school district that has been approved for
2funding by the Department of Education under subsection (b) by
3one million five hundred thousand dollars ($1,500,000).

4(ii) Divide the product from subclause (i) by the sum of the
52012-2013 average daily membership in approved vocational
6education programs for all area vocational-technical schools and
7school districts that have been approved for funding by the
8Department of Education under subsection (b).

9(b) (1) Within thirty (30) days of the effective date of
10this subsection, the Department of Education shall establish
11guidelines under which area vocational-technical schools and
12school districts with approved vocational programs may apply to
13the department for funding for the purchase of equipment, which
14shall include a funding application and an application deadline.

15(2) The funding application established by the Department of
16Education pursuant to clause (1) shall require only the
17following information which may be collected electronically:

18(i) Name, address, e-mail address and telephone number of
19the area vocational-technical school or school district.

20(ii) Name, e-mail address and telephone number of an employe
21of the area vocational-technical school or school district who
22will be available to answer questions regarding the funding
23application.

24(iii) Description of the equipment for which the requested
25funding will be used.

26(3) In approving funding applications under this section,
27the Department of Education shall request and consider no
28information other than the information provided in the funding
29application established under clause (2). Each area vocational-
30technical school or school district with an approved vocational

1program that submits a completed funding application under this
2subsection shall receive funding in the amount determined under
3subsection (a).

4Section 11. Sections 2509.1(c.1) and 2509.5(aaa) of the act,
5amended June 30, 2012 (P.L.684, No.82), are amended to read:

6Section 2509.1. Payments to Intermediate Units.--* * *

7(c.1) For the 2011-2012 [and 2012-2013] through the 2013-
82014 school years, five and one-half percent (5.5%) of the State 
9special education appropriation shall be paid to intermediate 
10units on account of special education services. Of this five and 
11one-half percent (5.5%), thirty-five percent (35%) shall be 
12distributed equally among all intermediate units. The remaining 
13sixty-five percent (65%) shall be distributed to each 
14intermediate unit in proportion to the number of average daily 
15membership of the component school districts of each 
16intermediate unit as compared to the Statewide total average 
17daily membership.

18* * *

19Section 2509.5. Special Education Payments to School
20Districts.--* * *

21(aaa) During the 2009-2010 through the [2012-2013] 2013-2014 
22school years, each school district shall be paid the amount it 
23received during the 2008-2009 school year under subsection (zz). 
24If insufficient funds are appropriated, the payments shall be 
25made on a pro rata basis.

26Section 12. The act is amended by adding a section to read:

27Section 2510.3. Assistance to School Districts Declared to
28be in Financial Recovery Status or Identified for Financial
29Watch Status.--(a) For the 2013-2014 fiscal year, the
30Department of Education may utilize up to $4,500,000 of

1undistributed funds not expended, encumbered or committed from
2appropriations for grants and subsidies made to the Department
3of Education to assist school districts declared to be in
4financial recovery status under section 621-A or identified for
5financial watch status under section 611-A. The funds shall be
6transferred by the Secretary of the Budget to a restricted
7account as necessary to make payments under this section and,
8when transferred, are hereby appropriated to carry out the
9provisions of this section.

10(b) For the 2013-2014 fiscal year, the amount of $7,500,000
11of undistributed funds not expended, unencumbered or committed
12from appropriations for grants and subsidies made to the
13Department of Education shall be transferred to the Financial
14Recovery School District Transitional Loan Account to make loans
15as provided under section 681-A.

16Section 13. Section 2599.2(e)(7) of the act, amended June
1730, 2012 (P.L.684, No.82), is amended to read:

18Section 2599.2. Pennsylvania Accountability Grants.--* * *

19(e) * * *

20(7) For the 2008-2009 [and], 2012-2013 and 2013-2014 fiscal
21years, if insufficient funds are appropriated to make
22Commonwealth payments pursuant to this section, such payments
23shall be made on a pro rata basis.

24* * *

25Section 14. The act is amended by adding a section to read:

26Section 2599.5. Distance Education Program.--(a) The
27Distance Education Program is established in the agency to
28approve distance education programs and to provide grants to
29students who enroll in approved distance education programs.

30(b) The agency shall administer and establish guidelines for

1the distance education program. The agency may collect student
2and school data to assess the performance of the distance
3education program, provided that such collection complies with
4the rights and responsibilities certification document of the
5Pennsylvania State Grant Program as administered by the agency.

6(c) An institution of higher education may submit an
7application to the agency for approval to participate in the
8distance education program. The application must be submitted in
9such form and manner as prescribed by the agency.

10(d) The agency shall review requests submitted under
11subsection (c) and, if the institution meets the criteria
12specified in the definition of "institution of higher education"
13and "approved distance education program," shall approve the
14request. The agency shall approve requests related to all
15academic majors that are eligible under the State grant program.

16(e) The agency may award, from funds appropriated, allocated
17or otherwise made available to it, grants to students who are
18enrolled in approved distance education programs at
19participating institutions of higher education. The agency shall
20establish a policy to ensure that awards are made in a
21consistent manner throughout the award year.

22(f) A student enrolled in an approved distance education
23program shall submit an application for a State grant from the
24agency. The application must be submitted in such form and in a
25manner as prescribed by the agency.

26(g) The agency shall review an application submitted under
27subsection (f) and, based on available resources, if the agency
28concludes that the applicant has financial need, may award a
29State grant to the applicant to cover the cost of full-time or
30at least half-time study in the approved distance education

1program at an institution of higher education approved for
2participation in the distance education program.

3(h) A grant awarded to a student under subsection (g) may
4not exceed per award year the amount the student would receive
5under the State grant program for the same award year.

6(i) This section shall apply to academic years 2013-2014
7through 2017-2018.

8(j) This section shall expire June 30, 2018.

9(k) The following words and phrases shall have the meaning
10given to them in this section unless the context clearly
11indicates otherwise:

12"Agency." The Pennsylvania Higher Education Assistance
13Agency.

14"Approved distance education program." A program of study
15offered by an institution of higher education that is approved
16by the agency and meets the following criteria:

17(i) The program is at least two academic years in length.

18(ii) Completion of the program leads to the attainment of a
19recognized academic credential.

20(iii) The program of study shall allow an eligible student
21to take more than fifty percent (50%) of credits or clock hours
22through distance education for each payment period in which the
23eligible student is enrolled.

24(iv) The program must be pursued by students on a full-time
25basis or at least a half-time basis.

26"Distance education program." The Distance Education Program
27established by this section.

28"Eligible student." A student who is otherwise eligible for
29the State grant program, notwithstanding the distance education
30requirements of the State grant program.

1"Institution of higher education." A postsecondary
2institution that participated in the State grant program as of
3June 30, 2012, and is domiciled and headquartered with its
4principal physical location in this Commonwealth.

5"Physical location." A location with qualified on-site
6administrative staff responsible for the overall administrative
7operation of all educational activities, including, but not
8limited to, instructional oversight, counseling, advising,
9library services and maintenance of academic records.

10"State grant." A grant or scholarship awarded under the act
11of January 25, 1966 (1965 P.L.1546, No.541), referred to as the
12Higher Education Scholarship Law.

13Section 15. This act shall take effect as follows:

14(1) The addition of section 1216.1 of the act shall take
15effect in 60 days.

16(2) The remainder of this act shall take effect July 1,
172013, or immediately, whichever is later.