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," <-in terms and courses of study, 
6further providing for agreements with institutions of higher 
7education; in opportunities for educational excellence, 
8further providing for definitions and for concurrent 
9enrollment agreements; and extensively revising charter 
10school provisions.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

<-13Section 1. Section 1703-A of the act of March 10, 1949
14(P.L.30, No.14), known as the Public School Code of 1949,
15amended June 29, 2002 (P.L.524, No.88), is amended to read:

<-16Section 1. Section 1525 of the act of March 10, 1949 
17(P.L.30, No.14), known as the Public School Code of 1949, added 
18July 4, 2004 (P.L.536, No.70), is amended to read:

19Section 1525. Agreements with Institutions of Higher
20Education.--Notwithstanding any other provision of law to the
21contrary, a school district, charter school, regional charter
 

1school, cyber charter school or area vocational-technical school
2may enter into an agreement with one or more institutions of
3higher education approved to operate in this Commonwealth in
4order to allow [resident] students to attend such institutions
5of higher education while the [resident] students are enrolled
6in the school district, charter school, regional charter school, 
7cyber charter school or area vocational-technical school. The
8agreement may be structured so that high school students may
9receive credits toward completion of courses at the school
10district, charter school, regional charter school, cyber charter 
11school or area vocational-technical school and at institutions
12of higher education approved to operate in this Commonwealth.

13Section 2. The definitions of "concurrent student" and
14"school entity" in section 1602-B of the act, added July 13,
152005 (P.L.226, No.46), are amended to read:

16Section 1602-B. Definitions.

17The following words and phrases when used in this article
18shall have the meanings given to them in this section unless the
19context clearly indicates otherwise:

20* * *

21"Concurrent student." A student who is enrolled in a school
22district, a charter school, a regional charter school, a cyber 
23charter school, an area vocational-technical school, a nonpublic
24school, a private school or a home education program under
25section 1327.1 and who takes a concurrent course through a
26concurrent enrollment program.

27* * *

28"School entity." A school district, a charter school, a 
29regional charter school, a cyber charter school or an area
30vocational-technical school.

1* * *

2Section 3. Section 1613-B of the act is amended by adding a
3subsection to read:

4Section 1613-B. Concurrent enrollment agreements.

5* * *

6(c) Charter schools, regional charter schools and cyber
7charter schools.--Charter schools, regional charter schools and
8cyber charter schools shall have the power and authority to
9enter into a concurrent enrollment agreement with an institution
10of higher education and appropriate credit shall be awarded to
11students concurrently enrolled under the agreement.

12Section 4. Section 1703-A of the act, amended June 29, 2002
13(P.L.524, No.88), is amended to read:

14Section 1703-A. Definitions.--As used in this article,

15"Administrator" shall include an employe of a charter school
16entity, including the chief administrator of a charter school
17entity and any other employe, who by virtue of the employe's
18position is responsible for taking official action of a
19nonministerial nature with regard to contracting or procurement,
20administering or monitoring grants or subsidies, managing or
21regulating staff, student and school activities or any activity
22where the official action has an economic impact of greater than
23a de minimis nature on the interests of any person.

24"Appeal board" shall mean the State Charter School Appeal
25Board established by this article.

26"Assessment" shall mean the Pennsylvania System of School
27Assessment test, the Keystone Exam or another test established
28by the State board to meet the requirements of section 2603-
29B(d)(10)(i) and required under the No Child Left Behind Act of
302001 (Public Law 107-110, 115 Stat. 1425) or its successor

1Federal statute.

2"At-risk student" shall mean a student at risk of educational
3failure because of limited English proficiency, poverty,
4community factors, truancy, academic difficulties or economic
5disadvantage.

6"Charter school" shall mean an independent public school
7established and operated under a charter from the local board of
8school directors or the governing body of an institution of 
9higher education and in which students are enrolled or attend. A
10charter school must be organized as a public, nonprofit
11corporation. Charters may not be granted to any for-profit
12entity.

13"Charter school entity" shall mean a charter school, regional
14charter school or cyber charter school.

15"Charter school foundation" shall mean a nonprofit
16organization, as defined under section 501(c)(3) of the Internal
17Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
18that provides funding, resources or otherwise serves to support
19a charter school entity, either directly or through an
20affiliated entity.

21"Chief administrator" shall mean an individual appointed by a
22board of trustees to oversee and manage the operation of a
23charter school entity. The term shall not include a professional
24staff member under this article.

25["Chief executive officer" shall mean an individual appointed
26by the board of trustees to oversee and manage the operation of
27the charter school, but who shall not be deemed a professional
28staff member under this article.]

<-29"Committee." The Charter School Funding Advisory Committee.

<-30"Commission." The Charter School Funding Advisory

1Commission.

2"Cyber charter school" shall mean an independent public
3school established and operated under a charter from the
4Department of Education and in which the school uses technology, 
5including electronic or digital books, in order to provide a
6significant portion of its curriculum and to deliver a
7significant portion of instruction to its students through the
8Internet or other electronic means. A cyber charter school must
9be organized as a public, nonprofit corporation. A charter may
10not be granted to a for-profit entity.

11"Department" shall mean the Department of Education of the
12Commonwealth.

13"Educational management service provider" shall mean a for-
14profit education management organization, nonprofit charter
15management organization, school design provider, business
16manager or any other partner entity with which a board of
17trustees of a charter school entity contracts to provide
18educational design, business services, comprehensive management
19or personnel functions or to implement the charter. The term
20shall not include a charter school foundation.

21"Governing board of an institution of higher education" shall
22mean an institution of higher education subject to <-Article XX-C
<-23section 1728.1-A which elects by affirmative vote of a majority
24of all members to become an authorizer of charter schools and
25regional charter schools <-shall assume and which assumes the same
26powers and duties as a local board of school directors under
27this article. The term does not include a governing board of an
28institution of higher education that does not vote affirmatively
29to become an authorizer.

30"Immediate family member" shall mean a parent, spouse, child,

1brother or sister.

2"Local board of school directors" shall mean the board of
3directors of a <-school reform commission or other governing 
4authority of a school district <-or a financial recovery school 
5district in which a proposed or an approved charter school is
6located.

7"Nonrelated" shall mean an individual who is not an immediate
8family member.

9"Regional charter school" shall mean an independent public
10school established and operated under a charter from more than
11one local board of school directors or the governing board of an 
12institution of higher education and in which students are
13enrolled or attend. A regional charter school must be organized
14as a public, nonprofit corporation. Charters may not be granted
15to any for-profit entity.

16"Right-to-Know Law" shall mean the act of February 14, 2008
17(P.L.6, No.3), known as the "Right-to-Know Law."

18"School district of residence" shall mean the school district
19in this Commonwealth in which [the parents or guardians of a
20child reside] a child resides as determined under section 1302 
<-21and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of 
22resident children to attend public schools).

23"School entity" shall mean a school district, intermediate
24unit, joint school or area vocational-technical school.

25"Secretary" shall mean the Secretary of Education of the
26Commonwealth.

27"State board" shall mean the State Board of Education of the 
28Commonwealth.

29Section <-1.1 5. The act is amended by adding a section to
30read:

<-1Section 1704-A. Charter School Funding Advisory Committee.--
2(a) The department shall immediately convene a Statewide
3advisory committee, to be known as the Charter School Funding
4Advisory Committee, to examine the financing of charter schools
5and cyber charter schools in the public education system. The
6committee shall examine how charter school and cyber charter
7school finances affect opportunities for teachers, parents,
8pupils and community members to establish and maintain schools
9that operate independently from the existing school district
10structure as a method to accomplish the requirements of section
111702-A. The department shall provide administrative support,
12meeting space and any other assistance required by the committee
13to carry out its duties under this section.

14(b) The committee shall consist of the following members:

15(1) The chairman and minority chairman of the Education
16Committee of the Senate and the chairman and the minority
17chairman of the Education Committee of the House of
18Representatives or their designees.

19(2) The secretary or a designee.

20(3) The chairman of the State board or a designee.

21(4) The following members, who shall be appointed by the
22secretary:

23(i) One member who shall represent charter schools.

24(ii) One member who shall represent regional charter
25schools.

26(iii) One member who shall represent cyber charter schools.

27(iv) One member who shall represent teachers and may be a
28public school teacher, a charter school teacher, a regional
29charter school teacher, a cyber charter school teacher or a
30nonpublic school teacher.

1(v) One member who shall represent school administrators.

2(vi) One member who shall represent school board members.

3(vii) One member who shall represent a business manager of a
4school district.

5(viii) One member who shall represent a parent of a child
6attending a charter school or cyber charter school.

7(ix) One member who shall represent an institution of higher
8education.

9(c) Members of the committee shall be appointed within
10forty-five (45) days of the effective date of this section. Any
11vacancy on the committee shall be filled by the original
12appointing officer or agency. The committee shall select a
13chairman and vice chairman from among its membership at an
14organizational meeting. The organizational meeting shall take
15place no later than ninety (90) days following the effective
16date of this section.

17(d) The committee shall hold meetings at the call of the
18chairman. The committee may also hold public hearings on the
19matters to be considered by the committee at locations
20throughout this Commonwealth. All meetings and public hearings
21of the committee shall be deemed public meetings for the purpose
22of 65 Pa.C.S. Ch. 7 (relating to open meetings). Eight members
23of the committee shall constitute a quorum at any meeting. Each
24member of the committee may designate another person to
25represent that member at meetings of the committee.

26(e) Committee members shall receive no compensation for
27their services but shall be reimbursed for all necessary travel
28and other reasonable expenses incurred in connection with the
29performance of their duties as members. Whenever possible, the
30committee shall utilize the services and expertise of existing

1personnel and staff of State government.

2(f) The committee shall have the following powers and
3duties:

4(1) Meet with current charter school operators within this
5Commonwealth, including cyber charter schools with blended
6programs.

7(2) Review charter school financing laws in operation
8throughout the United States.

9(3) Evaluate and make recommendations on the following:

10(i) Powers and duties extended to charter schools and cyber
11charter schools as they relate to financing.

12(ii) Funding formulas for charter schools and cyber charter
13schools, including reimbursement procedures and funding under
14Title I of the Elementary and Secondary Education Act of 1965
15(Public Law 89-10, 20 U.S.C. § 6301 et seq.).

16(iii) The cost associated with establishing an institution
17of higher education as an authorizer of a charter school or
18regional charter school.

19(iv) The process by which charter schools and cyber charter
20schools are funded under section 1725-A.

21(v) Student residency as it relates to funding.

22(vi) Special education and other special program funding.

23(vii) Charter school transportation.

24(viii) Charter school eligibility to receive grants and
25funding.

26(ix) Appropriate assessment fees on charter schools and
27cyber charter schools.

28(x) Consideration of recognizing a charter school for
29additional designations as a local education agency.

30(g) The committee shall, no later than August 31, 2014,

1issue a report of its findings and recommendations to the
2Governor, the President pro tempore of the Senate, the minority
3leader of the Senate, the chairman and minority chairman of the
4Education Committee of the Senate, the Speaker of the House of
5Representatives, the minority leader of the House of
6Representatives and the chairman and minority chairman of the
7Education Committee of the House of Representatives.

<-8Section 1704-A. Charter School Funding Advisory
9Commission.--(a) The Governor shall immediately convene a
10Statewide advisory commission to be known as the Charter School
11Funding Advisory Commission, to examine the financing of charter
12school entities in the public education system. The commission
13shall examine how charter school entity finances affect
14opportunities for teachers, parents, pupils and community
15members to establish and maintain schools that operate
16independently from the existing school district structure as a
17method of accomplishing the requirements of section 1702-A. The
18Office of the Budget and the department shall provide
19administrative support, meeting space and any other assistance
20required by the commission to carry out its duties under this
21section.

22(b) The commission shall consist of the following members:

23(1) Three members of the Senate appointed by the President 
24pro tempore of the Senate, in consultation with the Majority 
25Leader and the Minority Leader of the Senate, with two 
26appointees from the majority party and one appointee from the 
27minority party.

28(2) Three members of the House of Representatives appointed
29by the Speaker of the House of Representatives, in consultation
30with the Majority Leader and the Minority Leader of the House of

1Representatives, with two appointees from the majority party and
2one appointee from the minority party.

3(3) The secretary or a designee.

4(4) To represent the interests of charter school entities,
5the following members who shall be appointed by the Governor:

6(i) One member who shall represent charter schools.

7(ii) One member who shall represent regional charter
8schools.

9(iii) One member who shall represent cyber charter schools.

10(iv) One member who shall be a teacher in a charter school
11entity.

12(v) One member who shall be a parent of a child attending a
13charter school entity.

14(5) To represent the interests of school districts, the
15following members who shall be appointed by the Governor:

16(i) One member who shall be a teacher in a public school
17that is not a charter school entity.

18(ii) One member who shall represent school administrators.

19(iii) Two members who shall represent school board members.

20(iv) One member who shall be a business manager of a school
21district.

22(6) One member who shall represent an institution of higher
23education and who shall be appointed by the Governor.

24(c) Members of the commission shall be appointed within
25twenty (20) days of the effective date of this section. Any
26vacancy on the commission shall be filled by the original
27appointing authority. The commission shall select a chairman and
28vice chairman from among its membership at an organizational
29meeting. The organizational meeting shall take place no later
30than forty-five (45) days following the effective date of this

1section.

2(d) The commission shall hold meetings at the call of the
3chairman. The commission may also hold public hearings on the
4matters to be considered by the commission at locations
5throughout this Commonwealth. All meetings and public hearings
6of the commission shall be deemed public meetings for the
7purpose of 65 Pa.C.S. Ch. 7 (relating to open meetings). Ten
8members of the commission shall constitute a quorum at any
9meeting. Each member of the commission may designate another
10person to represent that member at meetings of the commission.

11(e) Commission members shall receive no compensation for
12their services but shall be reimbursed by the department for all
13necessary travel and other reasonable expenses incurred in
14connection with the performance of their duties as members.
15Whenever possible, the commission shall utilize the services and
16expertise of existing personnel and staff of State government.
17The department may utilize undistributed funds not expended,
18encumbered or committed from appropriations for grants and
19subsidies made to the department, not to exceed three hundred
20thousand dollars ($300,000), to carry out this section.

21(f) The commission shall have the following powers and
22duties:

23(1) Meet with current charter school entity operators,
24school district personnel and representatives of institutions of
25higher education within this Commonwealth.

26(2) Review charter school entity financing laws in operation
27throughout the United States.

28(3) Explore the actual cost of educating a child in the
29various charter school entities.

30(4) Evaluate and make recommendations on the following:

1(i) Appropriate assessment of fees on charter school
2entities for potentially funding a higher education authorizer
3of charter school entities, including review of independent
4authorizer fees and structures throughout the United States.

5(ii) The process by which charter school entities are funded
6under sections 1725-A and 1752-A.

7(5) Issue a report pursuant to subsection (g).

8(g) The commission shall, no later than August 31, 2014,
9issue a report of its findings and recommendations to the
10Governor, the President pro tempore of the Senate, the Majority
11Leader and the Minority Leader of the Senate, the chairman and
12minority chairman of the Appropriations Committee of the Senate,
13the chairman and minority chairman of the Education Committee of
14the Senate, the Speaker of the House of Representatives, the
15Majority Leader and the Minority Leader of the House of
16Representatives, the chairman and minority chairman of the
17Appropriations Committee of the House of Representatives and the
18chairman and minority chairman of the Education Committee of the
19House of Representatives. The recommendations of the commission
20shall not take effect unless the recommendations are approved by
21an act of the General Assembly enacted after the effective date
22of this section.

23Section <-2 6. Section 1715-A of the act, amended or added
24June 19, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846,
25No.61), is amended to read:

26Section 1715-A. Charter School Entity Requirements.--(a)
27Charter [schools] school entities shall be required to comply
28with the following provisions:

29(1) Except as otherwise provided in this article, a charter
30school entity is exempt from statutory requirements established

1in this act, from regulations of the State board and the
2standards of the secretary not specifically applicable to
3charter [schools] school entities. Charter [schools] school 
4entities are not exempt from statutes applicable to public
5schools other than this act.

6(2) A charter school entity shall be accountable to the
7parents, the public and the Commonwealth, with the delineation
8of that accountability reflected in the charter. Strategies for
9meaningful parent and community involvement shall be developed
10and implemented by each school.

11(3) A charter school entity shall not unlawfully
12discriminate in admissions, hiring or operation.

13(4) A charter school entity shall be nonsectarian in all
14operations.

15(5) (i) A charter school entity shall not provide any
16religious instruction, nor shall it display religious objects
17and symbols on the premises of the charter school. The charter 
18school entity shall provide for discrete and separate entrances 
19to buildings utilized for school purposes only.

20(ii) It shall not be a violation of this section for a
21charter school entity to utilize a sectarian facility:

22(A) if the religious objects and symbols within the portions
23of the facility utilized by the school are covered or removed to
24the extent reasonably feasible; or

25(B) in which the unused portion of the facility or its
26common areas contain religious symbols and objects.

27(6) A charter school entity shall not advocate unlawful
28behavior.

29(7) A charter school or regional charter school shall only
30be subject to the laws and regulations as provided for in

1section 1732-A, or as otherwise provided for in this article.

<-2(7.1) A cyber charter school shall only be subject to the
3laws and regulations as provided for in section 1749-A or as
4otherwise provided for in this act.

5(8) A charter school entity shall participate in [the
6Pennsylvania State Assessment System as provided for in 22 Pa.
7Code Ch. 5 (relating to curriculum), or subsequent regulations
8promulgated to replace 22 Pa. Code Ch. 5,] assessments in the
9manner in which the school district in which the charter school
10entity is located is scheduled to participate.

11(9) A charter school entity shall provide a minimum of one
12hundred eighty (180) days of instruction or nine hundred (900)
13hours per year of instruction at the elementary level, or nine
14hundred ninety (990) hours per year of instruction at the
15secondary level. Nothing in this clause shall preclude the use
16of computer and satellite linkages for delivering instruction to
17students.

18(10) Boards of trustees and contractors of charter [schools] 
19school entities shall be subject to the following statutory
20requirements governing construction projects and construction-
21related work:

22(i) The following provisions of this act:

23(A) Sections 751 and 751.1.

24(B) Sections 756 and 757 insofar as they are consistent with
25the act of December 20, 1967 (P.L.869, No.385), known as the
26"Public Works Contractors' Bond Law of 1967."

27(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
28entitled "An act regulating the letting of certain contracts for
29the erection, construction, and alteration of public buildings."

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

1the "Pennsylvania Prevailing Wage Act."

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

3(v) The act of March 3, 1978 (P.L.6, No.3), known as the
4"Steel Products Procurement Act."

5(11) Trustees of a charter school entity shall be public
6officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to 
7ethics standards and financial disclosure) and shall file a 
8statement of financial interests for the preceding calendar year 
9with both the State Ethics Commission and <-either the local board 
10of school directors or the governing body of an institution of 
11higher education in the case of a charter school or regional 
12charter school or, in the case of a cyber charter school, the 
13department, not later than May 1 of each year that members hold 
14the position and of the year after a member leaves the position. 
15All members of the board of trustees of a charter school entity 
16shall take the oath of office as required under section 321 
17before entering upon the duties of their office.

18[(12) A person who serves as an administrator for a charter
19school shall not receive compensation from another charter
20school or from a company that provides management or other
21services to another charter school. The term "administrator"
22shall include the chief executive officer of a charter school
23and all other employes of a charter school who by virtue of
24their positions exercise management or operational oversight
25responsibilities. A person who serves as an administrator for a
26charter school shall be a public official under 65 Pa.C.S. Ch.
2711 (relating to ethics standards and financial disclosure). A
28violation of this clause shall constitute a violation of 65
29Pa.C.S. § 1103(a) (relating to restricted activities), and the
30violator shall be subject to the penalties imposed under the

1jurisdiction of the State Ethics Commission.]

2(b) An individual who serves as an administrator for a
3charter school entity shall be a public employe for the purposes
4of 65 Pa.C.S. Ch. 11 and shall file a statement of financial
5interests for the preceding calendar year with the board of
6trustees not later than May 1 of each year that the person holds
7the position and of the year after the person leaves the
8position.

9(c) (1) No individual who serves as an administrator for a
10charter school entity may receive compensation from another
11charter school entity or from an educational management service
12provider, unless:

13(i) The administrator has submitted a sworn statement to the
14board of trustees of the charter school entity and the sworn
15statement details the work for the other entity and includes the
16projected number of hours, rate of compensation and projected
17duration.

18(ii) The board of trustees of the charter school entity has
19reviewed the sworn statement under subclause (i) and agreed by
20resolution to grant permission to the administrator.

21(2) A copy of the sworn statement under clause (1)(i) and
22the resolution by the board of trustees of the charter school
23entity granting the permission shall be kept on file with the
24charter school entity and the board of local school directors <-or 
25the governing board of the institution of higher education and, 
26in the case of a cyber charter school, the department.

27(3) No administrator of a charter school entity or immediate
28family member may serve as a voting member of the board of
29trustees of that individual's charter school.

30(4) (i) No administrator of a charter school entity may

1participate in the selection, award or administration of a
2contract if the person has a conflict of interest as that term
3is defined in 65 Pa.C.S. § 1102 (relating to definitions).

4(ii) An administrator who knowingly violates this clause
5commits a violation of 65 Pa.C.S. § 1103(a) (relating to
6restricted activities) and shall be subject to the penalties
7imposed under the jurisdiction of the State Ethics Commission.

8(iii) Any contract made in violation of this clause shall be
9voidable by the board of trustees of the charter school entity.

10(5) An administrator shall be immediately dismissed upon
11conviction for an offense graded as a felony, an infamous crime,
12an offense pertaining to fraud, theft or mismanagement of public
13funds or any crime involving moral turpitude.

14(d) The board of trustees of a charter school entity shall
15supply the <-grantor of the charter school entity and the
16secretary <-secretary and, in the case of a charter school or
17regional charter school, the local board of school directors or
18the governing board of an institution of higher education a list
19of the amount of rental payments, which are guarantees for
20school building debt or bonds that become due during the fiscal
21year together with the amount paid on each item of indebtedness.
22Any charter school entity that elects to issue debt shall hold
23in escrow an amount sufficient to pay the annual amount of the
24sum of the principal maturing or subject to mandatory redemption
25and interest owing by the charter school entity or sinking fund
26deposit due by the charter school entity.

27(e) Fund balance limits shall be as follows:

28(1) For the 2013-2014 school year and each school year
29thereafter, a charter school entity shall not accumulate an
30unassigned fund balance greater than the charter school entity

1fund balance limit, which will be determined as follows:

2  3Charter School Entity 4Total Budgeted Expenditures	Maximum Unassigned Fund Balance as Percentage of Total Budgeted Expenditures
5Less than or equal to $11,999,999	12%
6Between $12,000,000 and $12,999,999	11.5%
7Between $13,000,000 and $13,999,999	11%
8Between $14,000,000 and $14,999,999	10.5%
9Between $15,000,000 and $15,999,999	10%
10Between $16,000,000 and $16,999,999	9.5%
11Between $17,000,000 and $17,999,999	9%
12Between $18,000,000 and $18,999,999	8.5%
13Greater Than or Equal to $19,000,000	8%

14(2) Any unassigned fund balance in place on June 30, 2014,
15that exceeds the charter school entity fund balance limit shall
16be refunded on a pro rata basis within 90 days to all school
17districts that paid tuition to the charter school entity on
18behalf of students enrolled in the 2012-2013 and 2013-2014
19school years. The funds may not be used to pay bonuses to any
20administrator, board of trustee member, employe, staff or
21contractor and may not be transferred to a charter school
22foundation.

23(3) For the 2014-2015 school year and each school year
24thereafter, any unassigned fund balance in excess of the charter
25school entity fund balance limit shall be refunded on a pro rata
26basis to all school districts that paid tuition to the charter
27school entity in the prior school year.

28(4) By August 15, 2014, and August 15 of each year
29thereafter, each charter school entity shall provide <-its grantor
30and the board <-the secretary and, in the case of a charter school

1or regional charter school, the local board of school directors
2or the governing board of an institution of higher education
3with information certifying compliance with this section. The
4information shall be provided in a form and manner prescribed by
5the board and shall include information on the charter school
6entity's estimated ending unassigned fund balance expressed as a
7dollar amount and as a percentage of the charter school entity's
8total budgeted expenditures for that school year.

9Section <-3 7. Section 1716-A(c) of the act, added June 19,
101997 (P.L.225, No.22), is amended and the section is amended by
11adding subsections to read:

12Section 1716-A. Powers of Board of Trustees.--* * *

13(b.1) (1) For a charter school or regional charter school
14chartered after the effective date of this subsection, an
15individual shall be prohibited from serving as a voting member
16of the board of trustees of the charter school or regional
17charter school if the individual or an immediate family member
18receives compensation from or is employed by or is a board
19member of the local board of school directors or the governing
20board of an institution of higher education who participated in
21the initial review, approval, oversight, evaluation or renewal
22process of the charter school or regional charter school
23chartered by that board.

24(2) An employe of the school district or the governing board
25of an institution of higher education that chartered the charter
26school or the regional charter school may serve as a member of
27the board of trustees of the charter school or regional charter
28school without voting privileges.

29(b.2) (1) No member of the board of trustees of a charter
30school entity may participate in the selection, award or

1administration of any contract if the member has a conflict of
2interest as that term is defined in 65 Pa.C.S. § 1102 (relating
3to definitions).

4(2) Any member of the board of trustees of a charter school
5entity who in the discharge of the person's official duties
6would be required to vote on a matter that would result in a
7conflict of interest shall abstain from voting and follow the
8procedures required under 65 Pa.C.S. § 1103(j) (relating to
9restricted activities).

10(3) A member of the board of trustees of a charter school
11entity who knowingly violates this subsection commits a
12violation of 65 Pa.C.S. § 1103(a) and shall be subject to the
13penalties imposed under the jurisdiction of the State Ethics
14Commission.

15(4) A contract made in violation of this subsection shall be
16voidable by a court of competent jurisdiction, if the suit is
17commenced within ninety (90) days of the making of the contract.

18(5) No member of the board of trustees of a charter school
19entity shall be compensated for duties on the board.

20(b.3) A member of the board of trustees of a charter school
21entity shall be automatically disqualified and immediately
22removed from the board upon conviction for an offense graded as
23a felony, an infamous crime, an offense pertaining to fraud,
24theft or mismanagement of public funds, any offense pertaining
25to his official capacity as a board member or any crime
26involving moral turpitude.

27(c) The board of trustees shall comply with [the act of July
283, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
29Pa.C.S. Ch. 7 (relating to open meetings).

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

1entity shall consist of a minimum of five (5) nonrelated voting
2members.

3(ii) If a charter school entity has fewer than five (5)
4nonrelated voting members serving on its board on the effective
5date of this subsection, the charter school entity shall, within
6sixty (60) days, appoint additional members to the board to meet
7the minimum requirements of this section.

8(2) Within one (1) year of the effective date of this
9subsection, at least one (1) member of the board of trustees of
10a charter school entity shall be a parent of a child currently
11attending the charter school entity. The board member shall be
12eligible to serve only so long as the child attends the charter
13school entity.

14(e) (1) A majority of the voting members of the board of
15trustees shall constitute a quorum. If less than a majority is
16present at any meeting, no business may be transacted at the
17meeting.

18(2) The affirmative vote of a majority of all the voting
19members of the board of trustees, duly recorded, shall be
20required in order to take action on the subjects enumerated
21under subsection (a).

22(f) (1) In any case where the board of trustees of a
23charter school entity fails to pay or to provide for <-for the
24payment of:

25(i) any indebtedness at date of maturity or date of
26mandatory redemption or on any sinking fund deposit date; or

27(ii) any interest due on such indebtedness on any interest
28payment date or on any sinking fund deposit date in accordance
29with the schedule under which the bonds were issued.

30The bank or trustee for the bonds shall notify the board of

1trustees of the charter school entity of its obligation and
2shall immediately notify the <-grantor of the charter school
3entity and the secretary. <-secretary and, in the case of a
4charter school or regional charter school, the local board of
5school directors or the governing board of an institution of
6higher education.

7(2) The secretary shall withhold any <-appropriation due the
8charter school entity <-money due to be paid to the charter school
9pursuant to section 1725-A in any amount necessary to fully fund
10the amount held in escrow by the charter school entity which
11shall be equal to the sum of the principal amount maturing or
12subject to mandatory redemption and interest owing by the
13charter school entity or sinking fund deposit due by such
14charter school entity and shall require <-pay over payover of the
15amount withheld to the bank or trustee acting as the sinking
16fund depositary for the bond issue from the escrow account.

17(3) Payments made pursuant to this article shall not be
18given priority over payments required pursuant to sections 633
19and 785 and 53 Pa.C.S. § 8125(b) (relating to security for tax
20anticipation notes and sinking fund), or an agreement pursuant
21to which the <-board State Treasurer is required to make payment
22to a holder of debt issued by or on behalf of a school entity<-,
23all of which payments continue to be mandatory and ministerial.

24Section <-4 8. Sections 1717-A(c), (d), (e), (f) and (i) and
251719-A of the act, added June 19, 1997 (P.L.225, No.22), are
26amended to read:

27Section 1717-A. Establishment of Charter School.--* * *

28(c) An application to establish a charter school shall be
29submitted to the local board of school directors of the district
30where the charter school will be located or the governing board
 

1of an institution of higher education by [November 15] October 1
2of the school year preceding the school year in which the
3charter school will be established except that for a charter
4school beginning in the 1997-1998 school year, an application
5must be received by July 15, 1997. In the 1997-1998 school year
6only, applications shall be limited to recipients of fiscal year
71996-1997 Department of Education charter school planning
8grants.

9(d) Within forty-five (45) days of receipt of an
10application, the local board of school directors in which the
11proposed charter school is to be located or the governing board 
12of an institution of higher education shall hold at least one
13public hearing on the provisions of the charter application,
14under [the act of July 3, 1986 (P.L.388, No.84), known as the
15"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
16At least forty-five (45) days must transpire between the first
17public hearing and the final decision of the board on the
18charter application except that for a charter school beginning
19in the 1997-1998 school year, only thirty (30) days must
20transpire between the first public hearing and the final
21decision of the board.

22(e) (1) Not later than seventy-five (75) days after the
23first public hearing on the application, the local board of
24school directors or the governing board of an institution of 
25higher education shall grant or deny the application. For a
26charter school beginning in the 1997-1998 school year, the local
27board of school directors shall grant or deny the application no
28later than sixty (60) days after the first public hearing.

29(2) A charter school application submitted under this
30article shall be evaluated by the local board of school

1directors or the governing board of an institution of higher 
2education based on criteria, including, but not limited to, the
3following:

4(i) The demonstrated, sustainable support for the charter
5school plan by teachers, parents, other community members and
6students, including comments received at the public hearing held
7under subsection (d).

8(ii) The capability of the charter school applicant, in
9terms of support and planning, to provide comprehensive learning
10experiences to students pursuant to the adopted charter.

11(iii) The extent to which the application considers the
12information requested in section 1719-A and conforms to the
13legislative intent outlined in section 1702-A.

14[(iv) The extent to which the charter school may serve as a
15model for other public schools.]

16(3) The local board of school directors, in the case of an
17existing school being converted to a charter school, shall
18establish the alternative arrangements for current students who
19choose not to attend the charter school.

20(4) A charter application shall be deemed approved by the
21local board of school directors of a school district or the 
22governing board of an institution of higher education upon
23affirmative vote by a majority of all the directors. Formal
24action approving or denying the application shall be taken by
25the local board of school directors or the governing board of an 
26institution of higher education at a public meeting, with notice
27or consideration of the application given by the board, under
28[the "Sunshine Act."] 65 Pa.C.S. Ch. 7.

29(5) Written notice of the board's action shall be sent to
30the applicant, the department and the appeal board. If the

1application is denied, the reasons for the denial, including a
2description of deficiencies in the application, shall be clearly
3stated in the notice sent by the local board of school directors
4or the governing board of an institution of higher education to
5the charter school applicant.

6(f) At the option of the charter school applicant, a denied
7application may be revised and resubmitted to the local board of
8school directors or the governing board of an institution of 
9higher education. Following the appointment and confirmation of
10the Charter School Appeal Board under section 1721-A, the
11decision of the local board of school directors <-or the governing 
12board of an institution of higher education may be appealed to
13the appeal board. When an application is revised and resubmitted
14to the local board of school directors or the governing board of 
15an institution of higher education, the board may schedule
16additional public hearings on the revised application. The board
17shall consider the revised and resubmitted application at the
18first board meeting occurring at least forty-five (45) days
19after receipt of the revised application by the board. For a
20revised application resubmitted for the 1997-1998 school year,
21the board shall consider the application at the first board
22meeting occurring at least thirty (30) days after its receipt.
23The board shall provide notice of consideration of the revised
24application under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7. No
25appeal from a decision of a local school board may be taken
26until July 1, 1999.

27* * *

28(i) (1) The appeal board shall have the exclusive review of
29an appeal by a charter school applicant, or by the board of
30trustees of an existing charter school, of a decision made by a

1local board of directors <-or the governing board of an 
2institution of higher education not to grant a charter as
3provided in this section.

4[(2) In order for a charter school applicant to be eligible
5to appeal the denial of a charter by the local board of
6directors, the applicant must obtain the signatures of at least
7two per centum of the residents of the school district or of one
8thousand (1,000) residents, whichever is less, who are over
9eighteen (18) years of age. For a regional charter school, the
10applicant must obtain the signatures of at least two per centum
11of the residents of each school district granting the charter or
12of one thousand (1,000) residents from each of the school
13districts granting the charter, whichever is less, who are over
14eighteen (18) years of age. The signatures shall be obtained
15within sixty (60) days of the denial of the application by the
16local board of directors in accordance with clause (3).

17(3) Each person signing a petition to appeal denial of a
18charter under clause (2) shall declare that he or she is a
19resident of the school district which denied the charter
20application and shall include his or her printed name;
21signature; address, including city, borough or township, with
22street and number, if any; and the date of signing. All pages
23shall be bound together. Additional pages of the petition shall
24be numbered consecutively. There shall be appended to the
25petition a statement that the local board of directors rejected
26the petition for a charter school, the names of all applicants
27for the charter, the date of denial by the board and the
28proposed location of the charter school. No resident may sign
29more than one petition relating to the charter school
30application within the sixty (60) days following denial of the

1application. The department shall develop a form to be used to
2petition for an appeal.

3(4) Each petition shall have appended thereto the affidavit
4of some person, not necessarily a signer, setting forth all of
5the following:

6(i) That the affiant is a resident of the school district
7referred to in the petition.

8(ii) The affiant's residence, giving city, borough or
9township, with street and number, if any.

10(iii) That the signers signed with full knowledge of the
11purpose of the petition.

12(iv) That the signers' respective residences are correctly
13stated in the petition.

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

15(vi) That each signer signed on the date set forth opposite
16the signer's name.

17(vii) That to the best of the affiant's knowledge and
18belief, the signers are residents of the school district.

19(5) If the required number of signatures are obtained within
20sixty (60) days of the denial of the application, the applicant
21may present the petition to the court of common pleas of the
22county in which the charter school would be situated. The court
23shall hold a hearing only on the sufficiency of the petition.
24The applicant and local board of school directors shall be given
25seven (7) days' notice of the hearing. The court shall issue a
26decree establishing the sufficiency or insufficiency of the
27petition. If the petition is sufficient, the decree shall be
28transmitted to the State Charter School Appeal Board for review
29in accordance with this section. Notification of the decree
30shall be given to the applicant and the local board of

1directors.]

2(6) In any appeal, the decision made by the local board of
3directors <-or the governing board of an institution of higher 
4education shall be reviewed by the appeal board on the record as
5certified by the local board of directors <-or the governing board 
6of an institution of higher education. The appeal board shall
7give due consideration to the findings of the local board of
8directors <-or the governing board of an institution of higher 
9education and specifically articulate its reasons for agreeing
10or disagreeing with those findings in its written decision. The
11appeal board shall have the discretion to allow the local board
12of directors <-or the governing board of an institution of higher 
13education and the charter school applicant to supplement the
14record if the supplemental information was previously
15unavailable.

16(7) Not later than thirty (30) days after the date of notice
17of the acceptance of the appeal, the appeal board shall meet to
18officially review the certified record.

19(8) Not later than sixty (60) days following the review
20conducted pursuant to clause (6), the appeal board shall issue a
21written decision affirming or denying the appeal. If the appeal
22board has affirmed the decision of the local board of directors
<-23or the governing board of an institution of higher education,
24notice shall be provided to both parties.

25(9) A decision of the appeal board to reverse the decision
26of the local board of directors <-or the governing board of an 
27institution of higher education shall serve as a requirement for
28the local board of directors of a school district or school
29districts, as appropriate, <-or the governing board of an 
30institution of higher education, to grant the application and

1sign the written charter of the charter school as provided for
2in section 1720-A. Should the local board of directors <-or the 
3governing board of an institution of higher education fail to
4grant the application and sign the charter within ten (10) days
5of notice of the reversal of the decision of the local board of
6directors <-or the governing board of an institution of higher 
7education, the charter shall be deemed to be approved and shall
8be signed by the chairman of the appeal board.

9(10) All decisions of the appeal board shall be subject to
10appellate review by the Commonwealth Court.

11(j) Notwithstanding the provisions of section 696(i) or any
12other provision of law to the contrary, a school reform
13commission considering an application to establish a charter
14school in a school district of the first class shall comply with
15subsection (e)(5).

16(k) Notwithstanding the provisions of section 696(i) or any
17other provision of law to the contrary, a charter school
18applicant may appeal a decision of a school reform commission to
19deny an application to establish a charter school in a school
20district of the first class to the appeal board. Subsections
21(g), (h) and (i) shall apply to an appeal under this subsection.

22Section 1719-A. Contents of Application.--[An] (a) The 
23department shall create a standard application <-form for charter 
24school applicants to establish a charter school entity and for 
25existing charter school entities seeking renewal of their 
26charter. The form shall be published in the Pennsylvania 
27Bulletin and posted on the department's publicly accessible 
28Internet website. The form shall include all of the following
29information:

30(1) The identification of the charter school applicant.

1(2) The name of the proposed charter school entity.

2(3) The grade or age levels served by the school.

3(4) [The proposed governance structure of the charter
4school, including a description and method for the appointment
5or election of members of the board of trustees.] An 
6organizational chart clearly presenting the proposed governance 
7structure of the school, including lines of authority and 
8reporting between the board of trustees, administrators, staff 
9and any educational management service provider that will 
10provide management services to the charter school entity.

11(4.1) A clear description of the roles and responsibilities
12for the board of trustees, administrators and any other
13entities, including a charter school foundation, shown in the
14organizational chart.

15(4.2) A clear description and method for the appointment or
16election of members of the board of trustees.

17(4.3) Standards for board performance, including compliance
18with all applicable laws, regulations and terms of the charter.

19(4.4) If the charter school entity intends to contract with
20an educational management service provider for services, all of
21the following:

22(i) Evidence of the educational management service
23provider's record in serving student populations, including
24demonstrated academic achievement and demonstrated management of
25nonacademic school functions, including proficiency with public
26school-based accounting, if applicable.

27(ii) A draft contract stating all of the following:

28(A) The officers, chief administrator and administrators of
29the educational management service provider.

30(B) The proposed duration of the service contract.

1(C) Roles and responsibilities of the governing board, the
2school staff and the educational management service provider.

3(D) The scope of services, personnel and resources to be
4provided by the educational management service provider.

5(E) Performance evaluation measures and timelines.

6(F) The compensation structure, including clear
7identification of all fees to be paid to the educational
8management service provider.

9(G) Methods of contract oversight and enforcement.

10(H) Investment disclosure or the advance of moneys by the
11educational management service provider on behalf of the charter
12school entity.

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

14(iii) Disclosure and explanation of any existing or
15potential conflicts of interest between the members of the board
16of trustees and the proposed educational management service
17provider or any affiliated business entities, including a
18charter school foundation qualified as a support organization
19under the Internal Revenue Code of 1986 (Public Law 99-514, 26
20U.S.C. § 1 et seq.).

21(5) The mission and education goals of the charter school 
<-22entity, the curriculum to be offered and the methods of
23assessing whether students are meeting educational goals.

24(6) The admission <-and enrollment policy [and criteria for
25evaluating the admission of students] <-and enrollment which shall
26comply with the requirements of section 1723-A.

27(7) Procedures which will be used regarding the suspension
28or expulsion of pupils. Said procedures shall comply with
29section 1318.

30(8) Information on the manner in which community groups will

1be involved in the charter school entity planning process.

2(9) The financial plan for the charter school entity and the
3provisions which will be made for auditing the school under
4[section] sections 437 and 1728-A, including the role of any 
5charter school foundation.

6(10) Procedures which shall be established to review
7complaints of parents regarding the operation of the charter
8school entity.

9(11) A description of and address of the physical facility
10in which the charter school entity will be located and the
11ownership thereof and any lease arrangements.

12(12) Information on the proposed school calendar for the
13charter school entity, including the length of the school day
14and school year consistent with the provisions of section 1502.

15(13) The proposed faculty, if already determined, and a
16professional development and continuing education plan for the
17faculty and professional staff of [a] the charter school entity.

18(14) Whether any agreements have been entered into or plans
19developed with the local school district regarding participation
20of the charter school entity's students in extracurricular
21activities within the school district. Notwithstanding any
22provision to the contrary, no school district of residence shall
23prohibit a student of a charter school entity from participating
24in any extracurricular activity of that school district of
25residence: Provided, That the student is able to fulfill all of
26the requirements of participation in such activity and the
27charter school entity does not provide the same extracurricular
28activity.

29(15) A report of criminal history record, pursuant to
30section 111, for all individuals identified in the application

1who shall have direct contact with students and a plan for 
2satisfying the proper criminal history record clearances 
3required for all other staff.

4(16) An official clearance statement regarding child injury
5or abuse from the Department of Public Welfare as required by 23
6Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for
7employment in schools) for all individuals identified in the 
8application who shall have direct contact with students and a 
9plan for satisfying the proper official clearance statement 
10regarding child injury or abuse required for all other staff.

11(17) How the charter school entity will provide adequate
12liability and other appropriate insurance for the charter school
13entity, its employes and the board of trustees of the charter
14school entity.

15(18) Policies regarding truancy, absences and withdrawal of
16students, including the manner in which the charter school
17entity will monitor attendance consistent with section 1715-A(a)
18(9).

19(19) How the charter school entity will meet the standards
20included in the performance matrix developed by the department
21under section 1732-A(c)(3).

22(20) Indicate whether or not the charter school entity will
23seek accreditation by a nationally recognized accreditation
24agency, including the Middle States Association of Colleges and
25Schools or another regional institutional accrediting agency
26recognized by the United States Department of Education or an
27equivalent federally recognized body for charter school
28education.

29(b) A local board of school directors or the governing board
30of an institution of higher education may not impose additional

1terms, develop its own application or require additional
2information outside the standard application form required under
3subsection (a).

4Section <-5 9. Section 1720-A of the act, amended July 9, 2008
5(P.L.846, No.61), is amended to read:

6Section 1720-A. Term and Form of Charter.--(a) Upon
7approval of a charter application under section 1717-A, a
8written charter shall be developed which shall contain the
9provisions of the standardized charter application under section 
101719-A and which shall be signed by the local board of school
11directors of a school district, by the local boards of school
12directors of a school district in the case of a regional charter
13school, <-or by the governing board of an institution of higher 
14education or by the chairman of the appeal board pursuant to
15section [1717-A(i)(5)] 1717-A(i) and the board of trustees of
16the charter school or regional charter school. This written
17charter, when duly signed by the local board of school directors
18of a school district, or by the local boards of school directors
19of a school district in the case of a regional charter school or 
20the governing board of an institution of higher education, and
21the charter school's or regional charter school's board of
22trustees, shall act as legal authorization for the establishment
23of a charter school or regional charter school. This written
24charter shall be legally binding on both the local board of
25school directors of a school district or the governing board of 
26an institution of higher education and the charter school's or 
27regional charter school's board of trustees. [Except as
28otherwise provided in subsection (b), the] If the charter school 
29or regional charter school contracts with an educational 
30management service provider, an executed contract shall be
 

1signed once the charter is approved. The charter shall be for a
2period of [no less than [three (3) nor more than] five (5) years
3and]. Upon the effective date of the regulations implementing 
4the performance matrix as required by section 1732-A, charter 
5schools and regional charter schools that have satisfied the 
6academic quality benchmark established by the department 
7pursuant to section 1732-A may be renewed for [five (5)] ten 
8(10) year periods upon reauthorization by the local board of
9school directors of a school district or the governing board of 
10an institution of higher education or the appeal board. Charter 
11schools and regional charter schools that have not satisfied the 
12academic quality benchmark established by the department 
13pursuant to section 1732-A, may be renewed for five (5) year 
14periods upon reauthorization by the local board of school 
15directors or the governing board of an institution of higher 
16education or the appeal board. A charter will be granted only
17for a school organized as a public, nonprofit corporation.

18(b) [(1) Notwithstanding subsection (a), a governing board
19of a school district of the first class may renew a charter for
20a period of one (1) year if the board of school directors
21determines that there is insufficient data concerning the
22charter school's academic performance to adequately assess that
23performance and determines that an additional year of
24performance data would yield sufficient data to assist the
25governing board in its decision whether to renew the charter for
26a period of five (5) years.

27(2) A one-year renewal pursuant to paragraph (1) shall not
28be considered an adjudication and may not be appealed to the
29State Charter School Appeal Board.

30(3) A governing board of a school district of the first

1class does not have the authority to renew a charter for
2successive one (1) year periods] (Reserved).

3(c) (1) A charter school or regional charter school may
4request amendments to its approved written charter by filing a
5written document describing the requested amendment to the local
6board of school directors or the governing board of an
7institution of higher education.

8(2) Within <-twenty (20) thirty-five (35) days of its receipt
9of the request for an amendment, the local board of school
10directors or the governing board of an institution of higher
11education shall hold a public hearing on the requested amendment
12under 65 Pa.C.S. Ch. 7 (relating to open meetings).

13(3) Within <-twenty (20) thirty-five (35) days after the
14hearing, the local board of school directors or the governing
15board of an institution of higher education shall grant or deny
16the requested amendment. Failure by the local board of school
17directors or the governing board of an institution of higher
18education to hold a public hearing and to grant or deny the
19amendments within the time period specified shall be deemed <-a
20denial <-an approval.

21(4) An applicant for an amendment <-to a local board of school 
22directors shall have the right to appeal the denial of a
23requested amendment to the appeal board provided for under
24section 1721-A.

25Section <-6 10. Section 1721-A(a) and (e) of the act, added
26June 19, 1997 (P.L.225, No.22), are amended to read:

27Section 1721-A. State Charter School Appeal Board.--(a) The
28State Charter School Appeal Board shall consist of the Secretary
29of Education and [six (6)] the following members who shall be
30appointed by the Governor by and with the consent of a majority

1of all the members of the Senate. [Appointments by the Governor
2shall not occur prior to January 1, 1999.] The Governor shall
3select the chairman of the appeal board to serve at the pleasure
4of the Governor. The members shall include:

5(1) A parent of a school-aged child enrolled in a charter 
6school entity.

7(2) A school board member.

8(3) A certified teacher actively employed in a public
9school.

10(4) A faculty member or administrative employe of an
11institution of higher education.

12(5) A member of the business community.

13(6) A member of the State Board of Education.

14(7) An administrator of a charter school entity.

15(8) A member of the board of trustees of a charter school
16entity.

17The term of office of members of the appeal board, other than
18the secretary, shall be for a period of four (4) years or until
19a successor is appointed and qualified, except that, of the
20initial appointees, the Governor shall designate two (2) members
21to serve terms of two (2) years, two (2) members to serve terms
22of three (3) years and two (2) members to serve terms of four
23(4) years. A parent member appointed under paragraph (1) shall 
24serve a term of four (4) years, provided the member's child 
25remains enrolled in the charter school entity. Any appointment
26to fill any vacancy shall be for the period of the unexpired
27term or until a successor is appointed and qualified.

28* * *

29(e) Meetings of the appeal board shall be conducted under 
30[the act of July 3, 1986 (P.L.388, No.84), known as the
 

1"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings). 
2Documents of the appeal board shall be subject to the act of 
3[June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
4Know Law.] February 14, 2008 (P.L.6, No.3), known as the "Right-
5to-Know Law."

6Section <-7 11. Section 1722-A of the act, amended November
717, 2010 (P.L.996, No.104), is amended to read:

8Section 1722-A. Facilities.--(a) A charter school entity
9may be located in an existing public school building, in a part
10of an existing public school building, in space provided on a
11privately owned site, in a public building or in any other
12suitable location. A charter school <-entity has a right of first 
13refusal to purchase or lease an existing public school building, 
14a part of an existing public school building or space in a 
15public building at or below fair market value.

16(b) The charter school entity facility shall be exempt from
17public school facility regulations except those pertaining to
18the health or safety of [the pupils] students.

19(d) Notwithstanding any other provision of this act, a
20school district [of the first class] may, in its discretion,
21permit a charter school or regional charter school to operate
22its school at more than one location.

23(e) (1) Notwithstanding the provisions of section 204 of
24the act of May 22, 1933 (P.L.853, No.155), known as The General
25County Assessment Law, all school property, real and personal,
26owned by any charter school[, cyber charter school<-] entity or an
27associated nonprofit foundation, or owned by a nonprofit
28corporation, associated nonprofit corporation or nonprofit
29foundation and leased to a charter school<-[, cyber charter school
30[or]<-entity, associated nonprofit foundation or associated
 

1nonprofit corporation at or below fair market value, that is
2occupied and used by any charter school <-[or cyber charter
3school<-] entity for public school, recreation or any other
4purposes provided for by this act, shall be made exempt from
5every kind of State, county, city, borough, township or other
6real estate tax, including payments in lieu of taxes established
7through agreement with the Commonwealth or any local taxing
8authority, as well as from all costs or expenses for paving,
9curbing, sidewalks, sewers or other municipal improvements,
10Provided, That any charter school [or cyber charter school<-] 
11entity or owner of property leased to a charter school <-[or cyber
12charter school<-] entity may make a municipal improvement in a
13street on which its school property abuts or may contribute a
14sum toward the cost of the improvement.

15(2) Any agreement entered into by a charter school<-[, cyber
16charter school [or] <-entity, associated nonprofit foundation or 
17associated nonprofit corporation with the Commonwealth or a
18local taxing authority for payments in lieu of taxes prior to
19December 31, 2009, shall be null and void.

20(3) This subsection shall apply retroactively to all charter
21[<-schools, cyber charter schools [and] school entities,
22associated nonprofit foundations and associated nonprofit 
23corporations that filed an appeal from an assessment, as
24provided in Article V of The General County Assessment Law,
25prior to the effective date of this subsection and until such 
26time as a final order has been entered.

27(4) For purposes of this subsection, "local taxing
28authority" shall include, but not be limited to, a county, city,
29borough, incorporated town, township or school district.

30(f) (1) Alcoholic beverages shall not be available for

1consumption, purchase or sale in any charter school entity
<-2facility.

3(2) If, in the case of a charter school or regional charter
4school, the local board of school directors or the governing
5board of an institution of higher education reasonably believes
6that alcoholic beverages have been made available for
7consumption, purchase or sale in any charter school entity <-the
8charter school or regional charter school facility, the local
9board of school directors or the governing board of an
10institution of higher <-education shall notify the department, and
11the secretary shall order the following forfeitures against the
12charter school or cyber charter school: <-education shall notify
13the department.

14(3) If alcoholic beverages have been made available for
15consumption, purchase or sale in a charter school entity
16facility, the secretary shall order the following forfeitures
17against the charter school entity:

18(i) A fine of $1,000 for the first violation.

19(ii) A fine of $5,000 for the second or subsequent
20violation.

<-21(3) (4) The charter school entity may appeal the order of
22the secretary under 2 Pa.C.S. Chs. 5 (relating to practice and
23procedure) and 7 (relating to judicial review).

24Section <-8 12. Section 1723-A(a), (b) and (d) of the act,
25amended June 26, 1999 (P.L.394, No.36) and July 9, 2008
26(P.L.846, No.61), are amended <-and the section is amended by 
27adding a subsection to read:

28Section 1723-A. [Enrollment] Admission and Enrollment 
29Requirements.--(a) (1) All resident children in this
30Commonwealth who submit a completed enrollment <-form in
 

1accordance with clause (3) qualify for admission to a charter
2school entity within the provisions of subsection (b). [If] In 
3the case of a charter school, if more students apply to the
4charter school than the number of attendance slots available in
5the school, then students must be selected on a random basis
6from a pool of [qualified applicants meeting the established
7eligibility criteria and submitting an application] eligible 
8applicants who have submitted an enrollment form in accordance 
9with clauses (3) and (4) by the deadline established by the
10charter school, except that the charter school may give
11preference in enrollment to a child of a parent who has actively
12participated in the development of the charter school and, to
13siblings of students presently enrolled in the charter school.
14First preference shall be given to students who reside in the
15district or districts in which the charter school is physically 
16located.

17(2) If a charter school has a waiting list following its
18initial selection of eligible applicants under clause (1), the
19charter school shall select eligible applicants from the waiting
20list as spaces become available. All children shall be assigned
21to the waiting list on a random basis. When selecting eligible
22applicants from the waiting list, a charter school shall give
23first preference to students as provided under clause (1) and to
24those who reside in the district or districts in which the
25charter school is physically located until the charter school
26again reaches its maximum capacity of students. If a charter
27school has a waiting list, once the charter school has exhausted
28the waiting list of resident children, it may then enroll
29children on the waiting list who reside outside of the district.
30Nonresident children shall also be selected on a random basis.

1If a charter school and the school district from which it is
2authorized have voluntarily capped enrollment or the district
3attempts to involuntarily cap enrollment of resident students
4and the charter school has enrolled the maximum number of
5resident students, it may enroll students residing outside of
6the district.

7(3) The department, in consultation with representatives of
8charter school entities, shall develop a standard enrollment
9form that shall be used by all eligible applicants to apply to a
10charter school entity. The standard enrollment form shall only
11request information necessary to allow the charter school entity
12to identify the student, grade level and residency, including:

13(i) The student's name, physical address, telephone number,
14age, birth date and current grade level.

15(ii) The name, physical address, telephone number and e-mail
16address of the student's parent or guardian.

17(4) The standard enrollment form shall be made physically
18available at each charter school entity, in a form that complies
19with Federal and State law and posted on the publicly accessible
20Internet website of each charter school entity, if available. A
21charter school entity may accept the enrollment form via
22electronic means.

23(5) When a student applies to a charter school entity, a
24charter school entity shall not require or request information
25beyond the contents of the standard enrollment form developed by
26the department.

27(6) Nothing in this section shall prohibit a charter school
28entity from requesting the submission of additional records and
29information that public schools are entitled to after a student
30is accepted for admission to a charter school entity.

1As used in this subsection:

2"Eligible applicant" shall mean a student who is seeking to
3enter a grade level offered by the charter school and meets the
4requirements of 22 Pa. Code §§ 11.12 (relating to school age),
511.13 (relating to compulsory school age), 11.14 (relating to
6admission to kindergarten when provided), 11.15 (relating to
7admission of beginners), 11.16 (relating to early admission of
8beginners) and 12.1 (relating to free education and attendance)
9and student residency requirements.

10(b) (1) A charter school entity shall not discriminate in
11its admission policies or practices on the basis of intellectual
12ability, [except as provided in paragraph (2), or] athletic
13ability, measures of achievement or aptitude, status as a person
14with a disability, proficiency in the English language or any
15other basis that would be illegal if used by a school district.

16(2) A charter school entity may limit [admission] its 
17academic focus to a particular grade level[,] or a targeted
18population group composed of at-risk students[, or areas of
19concentration of the school such as mathematics, science or the
20arts. A charter school may establish reasonable criteria to
21evaluate prospective students which shall be outlined in the
22school's charter.] or a specialized area or accelerated program 
23of study, such as mathematics, science or the arts.

24* * *

25(d) (1) Enrollment of students in a charter school<-, 
26regional charter school or cyber charter school [or cyber 
27charter school] entity, or expansion of a charter school, 
28regional charter school or cyber charter school <-entity into 
29additional grade levels, shall not be subject to a cap or
30otherwise limited by any past or future action of a board of

1school directors, a board of control established under Article
2XVII-B, a special board of control established under section 692
3or any other governing authority[, unless agreed to by the
4charter school or cyber charter school as part of a written
5charter pursuant to section 1720-A].

6(2) The provisions of this subsection shall apply to a
7charter school, regional charter school or cyber charter school
8regardless of whether the charter was approved prior to or is
9approved subsequent to the effective date of this subsection.

<-10(e) A school district's obligation to make payment for
11students enrolled in a charter school shall be governed by
12section 1725-A or, in the case of students who are below a
13school district's age of enrollment, by the terms of any charter
14or service contract between a school district and a charter
15school.

16Section <-9 13. Section 1724-A(c) and (d) of the act, amended
17or added June 19, 1997 (P.L.225, No.22) and June 30, 2011
18(P.L.112, No.24), are amended to read:

19Section 1724-A. School Staff.--* * *

20(c) All employes of a charter school shall be enrolled in
21the Public School Employees' Retirement System in the same
22manner as set forth in 24 Pa.C.S. § 8301(a) (relating to
23mandatory and optional membership) unless at the time of the
24application for the charter school the sponsoring district or
25the board of trustees of the charter school has a retirement
26program which covers the employes or the employe is currently
27enrolled in another retirement program. <-[The Commonwealth shall
28make contributions on behalf of charter school employes enrolled 
29in the Public School Employees' Retirement System<-.], which shall 
30be one-half of the amounts calculated in 24 Pa.C.S. §§ 8326
 

1(relating to contributions by the Commonwealth) and 8535 
2(relating to payments to school entities by Commonwealth). The
3charter school shall be considered a school district and shall
4make payments by employers to the Public School Employees' 
5Retirement System and payments on account of Social Security as
6established under 24 Pa.C.S. Pt. IV (relating to retirement for
7school employees). <-[The market value/income aid ratio used in
8calculating payments as prescribed in this subsection shall be
9the market value/income aid ratio for the school district in
10which the charter school is located or, in the case of a
11regional charter school, shall be a composite market
12value/income aid ratio for the participating school districts as
13determined by the department.<-] Except as otherwise provided,
14employes of a charter school shall make regular member
15contributions as required for active members under 24 Pa.C.S.
16Pt. IV. If the employes of the charter school participate in
17another retirement plan, then those employes shall have no
18concurrent claim on the benefits provided to public school
19employes under 24 Pa.C.S. Pt. IV. For purposes of this
20subsection, a charter school shall be deemed to be a "public
21school" as defined in 24 Pa.C.S. § 8102 (relating to
22definitions). Nothing in this article shall be construed to 
23require the Commonwealth to make contributions, from 
24appropriated funds, as provided in 24 Pa.C.S. § 8329(a) 
25(relating to payments on account of social security deductions 
26from appropriations) on account of Social Security payments made 
27by a charter school.

28(d) Every employe of a charter school shall be provided [the
29same] similar health care benefits as the employe would be
30provided if he or she were an employe of the local district. The

1local board of school directors may require the charter school
2to provide [the same] similar terms and conditions with regard
3to health insurance as the collective bargaining agreement of
4the school district to include employe contributions to the
5district's health benefits plan. The charter school shall make
6any required employer's contribution to the district's health
7plan to an insurer, a local board of school directors or a
8contractual representative of school employes, whichever is
9appropriate to provide the required coverage.

10* * *

11Section <-10 14. Section 1725-A of the act, amended or added
12June 19, 1997 (P.L.225, No.22), June 22, 2001 (P.L.530, No.35)
13and June 29, 2002 (P.L.524, No.88), is amended to read:

14Section 1725-A. Funding for Charter Schools and Regional 
15Charter Schools.--(a) [Funding for a charter school shall be
16provided in the following manner:

17(1) There shall be no tuition charge for a resident or
18nonresident student attending a charter school.

19(2) For non-special education students, the charter school
20shall receive for each student enrolled no less than the
21budgeted total expenditure per average daily membership of the
22prior school year, as defined in section 2501(20), minus the
23budgeted expenditures of the district of residence for nonpublic
24school programs; adult education programs; community/junior
25college programs; student transportation services; for special
26education programs; facilities acquisition, construction and
27improvement services; and other financing uses, including debt
28service and fund transfers as provided in the Manual of
29Accounting and Related Financial Procedures for Pennsylvania
30School Systems established by the department. This amount shall

1be paid by the district of residence of each student.

2(3) For special education students, the charter school shall
3receive for each student enrolled the same funding as for each
4non-special education student as provided in clause (2), plus an
5additional amount determined by dividing the district of
6residence's total special education expenditure by the product
7of multiplying the combined percentage of section 2509.5(k)
8times the district of residence's total average daily membership
9for the prior school year. This amount shall be paid by the
10district of residence of each student.

11(4) A charter school may request the intermediate unit in
12which the charter school is located to provide services to
13assist the charter school to address the specific needs of
14exceptional students. The intermediate unit shall assist the
15charter school and bill the charter school for the services. The
16intermediate unit may not charge the charter school more for any
17service than it charges the constituent districts of the
18intermediate unit.

19(5) Payments shall be made to the charter school in twelve
20(12) equal monthly payments, by the fifth day of each month,
21within the operating school year. A student enrolled in a
22charter school shall be included in the average daily membership
23of the student's district of residence for the purpose of
24providing basic education funding payments and special education
25funding pursuant to Article XXV. If a school district fails to
26make a payment to a charter school as prescribed in this clause,
27the secretary shall deduct the estimated amount, as documented
28by the charter school, from any and all State payments made to
29the district after receipt of documentation from the charter
30school.

1(6) Within thirty (30) days after the secretary makes the
2deduction described in clause (5), a school district may notify
3the secretary that the deduction made from State payments to the
4district under this subsection is inaccurate. The secretary
5shall provide the school district with an opportunity to be
6heard concerning whether the charter school documented that its
7students were enrolled in the charter school, the period of time
8during which each student was enrolled, the school district of
9residence of each student and whether the amounts deducted from
10the school district were accurate.

11(b) The Commonwealth shall provide temporary financial
12assistance to a school district due to the enrollment of
13students in a charter school who attended a nonpublic school in
14the prior school year in order to offset the additional costs
15directly related to the enrollment of those students in a public
16charter school. The Commonwealth shall pay the school district
17of residence of a student enrolled in a nonpublic school in the
18prior school year who is attending a charter school an amount
19equal to the school district of residence's basic education
20subsidy for the current school year divided by the district's
21average daily membership for the prior school year. This payment
22shall occur only for the first year of the attendance of the
23student in a charter school, starting with school year 1997-
241998. Total payments of temporary financial assistance to school
25districts on behalf of a student enrolling in a charter school
26who attended a nonpublic school in the prior school year shall
27be limited to funds appropriated for this program in a fiscal
28year. If the total of the amount needed for all students
29enrolled in a nonpublic school in the prior school year who
30enroll in a charter school exceeds the appropriation for the

1temporary financial assistance program, the amount paid to a
2school district for each qualifying student shall be pro rata
3reduced. Receipt of funds under this subsection shall not
4preclude a school district from applying for a grant under
5subsection (c).

6(c) The Commonwealth shall create a grant program to provide
7temporary transitional funding to a school district due to the
8budgetary impact relating to any student's first-year attendance
9at a charter school. The department shall develop criteria which
10shall include, but not be limited to, the overall fiscal impact
11on the budget of the school district resulting from students of
12a school district attending a charter school. The criteria shall
13be published in the Pennsylvania Bulletin. This subsection shall
14not apply to a public school converted to a charter school under
15section 1717-A(b). Grants shall be limited to funds appropriated
16for this purpose.] Funding for a charter school or regional 
17charter school shall be provided in the following manner and 
18shall not be in violation of any applicable Federal or State 
19law, regulation or agreement:

20(1) There shall be no tuition charge for a resident or
21nonresident student attending a charter school or a regional
22charter school.

23(2) The following apply:

24(i) For nonspecial education students, the charter school or
25regional charter school shall receive for each student enrolled
26no less than the budgeted total expenditure per average daily
27membership of the prior school year, as defined in section
282501(20), minus the budgeted expenditures of the district of
29residence for all of the following:

30(A) Nonpublic school programs.

1(B) Adult education programs.

2(C) Community and junior college programs.

3(D) Student transportation services.

4(E) Special education programs.

5(F) Facilities acquisition, construction and improvement
6services.

7(G) Programs and services to the extent they are funded from
8the proceeds of competitive grants from private or public
9resources or from contributions or donations from private
10sources.

11(H) Other financing uses, including debt service and fund
12transfers as provided in the Manual of Accounting and Related
13Financial Procedures for Pennsylvania School Systems established
14by the department.

<-15(I) Thirty per centum of the employer's retirement
16contributions on behalf of employes enrolled in the Public
17School Employees' Retirement System.

18(i.1) The amount under subclause (i) shall be calculated by
19each school district on a form prescribed by the secretary in
20accordance with this section. The secretary, upon receipt of a
21district's calculation, shall review the district's calculation
22and may request supporting documentation from the district
23regarding its calculation. If the secretary finds an error or
24discrepancy in a district's calculation, the secretary shall
25require the district to correct the calculation and require the
26school district to notify affected charter schools and regional
27charter schools.

28(ii) The following apply:

29(A) The amount under subclause (i) shall be paid by the
30school district of residence of each student by deduction and

1transfer from all State payments due to the district as provided
2under clause (5).

3(B) If a charter school or regional charter school disputes
4the accuracy of a district's calculation under this clause, the
5charter school or regional charter school shall file a notice of
6the dispute with the secretary, who shall hold a hearing to
7determine the accuracy of the district's calculation within
8thirty (30) days of the notice.

9(C) The secretary shall determine the accuracy of the
10district's calculation within thirty (30) days of the hearing.

11(D) The district shall bear the burden of production and
12proof with respect to its calculation under this clause.

13(E) The district shall be liable for the reasonable legal
14fees incurred by a charter school or regional charter school if
15the charter school or regional charter school is the
16substantially prevailing party after a hearing under this
17section. The charter school or regional charter school shall be
18liable for the reasonable legal fees incurred by the district if
19the district is the substantially prevailing party after a
20hearing under this section.

21(F) All decisions of the secretary under this clause shall
22be subject to appellate review by Commonwealth Court.

23(3) The following apply:

24(i) For special education students, the charter school or
25regional charter school shall receive for each student enrolled
26the same funding as for each nonspecial education student as
27provided under clause (2), plus an additional amount determined
28by dividing the total special education expenditure of the
29school district of residence by the product of:

30(A) the combined percentage of section 2509.5(k) applicable

1to the school year; and

2(B) the total average daily membership of the school
3district of residence for the prior school year.

4(ii) The amount under subclause (i) shall be paid by the
5school district of residence of each student by deduction and
6transfer from all State payments due to the district as provided
7under clause (5).

8(iii) If a charter school or regional charter school
9disputes the accuracy of a district's calculation under this
10clause, the charter school or regional charter school shall file
11a notice of the dispute with the secretary, who shall hold a
12hearing to determine the accuracy of the district's calculation
13within thirty (30) days of the notice.

14(iv) The secretary shall determine the accuracy of the
15district's calculation within thirty (30) days of the hearing.

16(v) The district shall bear the burden of production and
17proof with respect to its calculation under this clause.

18(vi) The district shall be liable for the reasonable legal
19fees incurred by a charter school or regional charter school if
20the charter school or regional charter school is the
21substantially prevailing party after a hearing under this
22section. The charter school or regional charter school shall be
23liable for the reasonable legal fees incurred by the school
24district if the district is the substantially prevailing party
25after a hearing under this section.

26(vii) All decisions of the secretary under this section
27shall be subject to appellate review by Commonwealth Court.

28(4) A charter school or regional charter school may request
29the intermediate unit or school district in which the charter
30school or regional charter school is located to provide services

1to assist the charter school or regional charter school to
2address the specific needs of nonspecial education and
3exceptional students. The intermediate unit or school district
4shall provide the charter school or regional charter school with
5such services and bill the charter school or regional charter
6school for the services. The intermediate unit or school
7district may not charge the charter school or regional charter
8school more for any service than it charges the constituent
9districts of the intermediate unit. Nothing under this clause
10shall preclude an intermediate unit or school district from
11contracting with a charter school or regional charter school to
12provide the intermediate unit or school district with services
13to assist the intermediate unit or school district to address
14specific needs of nonspecial education and special education
15students.

16(5) Beginning in the 2014-2015 school year, the following
17apply:

18(i) Payments shall be made to the charter school or regional
19charter school in twelve (12) equal monthly payments, according
20to the established monthly unipay schedule within the operating
21school year or any subsequent school year.

22(ii) Except as provided for in <-subclause (vi) subclauses
23(vi) and (viii), payments shall be made directly by the
24secretary deducting and paying to the charter school or regional
25charter school the estimated amount, as documented by the
26charter school or regional charter school, from:

27(A) all State payments due to the school district of
28residence; or

29(B) if no payments are due to the school district of
30residence, from all State payments reasonably expected to be due

1in the next established monthly unipay schedule, after receipt
2of documentation from the charter school or regional charter
3school as to its enrollment.

4(iii) At least thirty (30) days prior to the scheduled
5payment date each month, a charter school or regional charter
6school shall provide to the department and to the school
7district of residence of each student enrolled in the charter
8school or regional charter school, documentation of the charter
9school's or regional charter school's enrollment, on a form to
10be developed by the secretary within sixty (60) days of the
11effective date of this section. The form, which shall be
12developed in consultation with representatives of charter
13schools or regional charter schools and school districts, shall
14require the charter school or regional charter school to provide
15to the department and to the school district of residence of
16each student enrolled in the charter school or regional charter
17school, documentation of each student's current enrollment in
18the charter school or regional charter school and current
19residence in the school district, including the following
20information:

21(A) Student's name.

22(B) Student's home address.

23(C) Name and telephone number of student's parent or
24guardian.

25(D) Student's date of birth.

26(E) Student's grade level.

27(F) Type of school in which student was previously enrolled.

28(G) Student's date of enrollment.

29(H) Whether each student is being educated under an
30individualized education plan under the Individuals with

1Disabilities Education Act (Public Law 91-230, 20 U.S.C. § 1400
2et seq.).

3(I) The tuition amount due on account of each student.

4(J) The total amount due from the school district for that
5month.

6(K) Copies of the actual documents used by the charter
7school or regional charter school to verify each student's
8residence in the school district.

9(iv) The secretary shall not make payments under this
10section until the charter school or regional charter school
11provides the department and the school district of residence
12with a completed form and accompanying documentation as required
13under this clause. A charter school or regional charter school
14may make only one (1) payment request per month under this
15clause. After a charter school or regional charter school makes
16a payment request under this clause, any necessary corrections
17or adjustments may be made in the next subsequent monthly
18payment request.

19(v) The secretary's obligation to make payments under this
20section is mandatory and ministerial, except that payments made
21pursuant to this <-section article shall not be given priority
22over payments required pursuant to sections 633 and 785 and 53
23Pa.C.S. § 8125(b) (relating to security for tax anticipation
24notes and sinking fund), or an agreement pursuant to which the
25Commonwealth is required to make payment to a holder of debt
26issued by or on behalf of a school entity<-, all of which payments
27continue to be mandatory and ministerial. If payments required
28under sections 633 and 785 and 53 Pa.C.S. § 8125(b) preclude the
29timely payment of funds to a charter school or regional charter
30school under this section or will cause the board of school

1directors of a school district to fail to pay or provide for
2payment under this subsection, nothing shall preclude the
3secretary from withholding funds from any and all State payments
4made to the school district for the operating school year or for
5any subsequent operating school year.

6(vi) If there are insufficient State payments due to a
7school district in the established monthly unipay schedule to
8cover all charter school or regional charter school deductions
9and transfers, the school district shall be responsible for
10paying the unpaid balance directly to the charter school or
11regional charter school not more than ten (10) days following
12the established monthly unipay schedule.

13(vii) A student enrolled in a charter school or regional
14charter school shall be included in the average daily membership
15of the student's school district of residence for the purpose of
16providing basic education funding payments and special education
17funding under Article XXV.

<-18(viii) Notwithstanding any other provision of law, for each
19year in which a school district of the first class that has been
20declared to be distressed by the Secretary of Education under
21section 691 continues to be distressed, payments to charter
22schools or regional charter schools shall be made by the school
23district of the first class and not by the secretary as provided
24in clause (ii). The school district of the first class shall
25provide for payment to charter schools and regional charter
26schools as follows:

27(A) Payments shall be made to the charter school or regional
28charter school in twelve (12) equal monthly payments, according
29to the established monthly unipay schedule, within the operating
30school year.

1(B) Payments shall be made directly by paying to the charter
2school or regional charter school the estimated amount, as
3documented by the charter school or regional charger school,
4after receipt of documentation from the charter school or
5regional charter school including the information required by
6this section to be supplied by charter schools and regional
7charter schools in other school districts at least thirty (30)
8days prior to the scheduled payment date each month.

9(C) If the school district of the first class fails to make
10a payment to a charter school entity as prescribed in this
11clause, the secretary shall deduct the estimated amount, as
12documented by the charter school entity, from any and all State
13payments made to the district after receipt of documentation
14from the charter school entity. This section shall not be
15subject to suspension by a school reform commission or a school
16district of the first class.

17(6) The following apply:

18(i) Within thirty (30) days after the payment is made to the
19charter school or regional charter school as described under
20clause (5), a school district may notify the secretary that the
21estimated amount, as documented by the charter school or
22regional charter school, is inaccurate.

23(ii) Within thirty (30) days of the notice by the school
24district under subclause (i), the secretary shall provide the
25school district with a hearing concerning whether the charter
26school or regional charter school documented that students were
27enrolled in the charter school or regional charter school, the
28period of time during which each student was enrolled in the
29charter school or regional charter school, the school district
30of residence of each student enrolled in the charter school or

1regional charter school and whether the amounts deducted from or
2paid by the school district were accurate.

3(iii) The burden of proof and production at the hearing
4shall be on the school district. A hearing shall not be held
5before the secretary deducts and transfers to the charter school
6or regional charter school the amount estimated by the charter
7school or regional charter school.

8(iv) The secretary shall determine the accuracy of the
9amount documented by the charter school or regional charter
10school and make any necessary payment adjustment within thirty
11(30) days of the hearing.

12(v) The school district shall be liable for the reasonable
13legal fees incurred by a charter school or regional charter
14school if the charter school or regional charter school is the
15substantially prevailing party after a hearing under this
16section. The charter school or regional charter school shall be
17liable for the reasonable legal fees incurred by the school
18district if the school district is the substantially prevailing
19party after a hearing under this section.

20(vi) All decisions of the secretary under this section shall
21be subject to appellate review by Commonwealth Court.

22(vii) Supersedeas shall not be granted to the secretary or
23any party to the proceeding on an appeal from the decision of
24the secretary under this section; and, absent a court order, the
25secretary shall not hold any payments in escrow.

26(d) It shall be lawful for any charter school or regional 
27charter school to receive, hold, manage and use, absolutely or
28in trust, any devise, bequest, grant, endowment, gift or
29donation of any property, real or personal and/or mixed, which
30shall be made to the charter school or regional charter school

1for any of the purposes of this article.

2(e) It shall be unlawful for any trustee of a charter school
3or regional charter school or any board of trustees of a charter
4school or regional charter school or any other person affiliated
5in any way with a charter school or regional charter school to
6demand or request, directly or indirectly, any gift, donation or
7contribution of any kind from any parent, teacher, employe or
8any other person affiliated with the charter school or regional 
9charter school as a condition for employment or enrollment
10and/or continued attendance of any pupil. Any donation, gift or
11contribution received by a charter school or regional charter 
12school shall be given freely and voluntarily.

13(f) A charter school or regional charter school may not 
14provide discounts to a school district or waive payments under 
15this section for any student.

16(g) The department shall develop a transition procedure to
17be able to recoup in subsequent fiscal years any payments made
18in error to a charter school <-entity or regional charter school
19as a result of direct payment by the department to the charter
20school <-entity or regional charter school.

21Section 11 <-15. Section 1728-A(a) and (b) of the act, added
22June 19, 1997 (P.L.225, No.22), are amended and the section is
23amended by adding subsections to read:

24Section 1728-A. Annual Reports and Assessments.--(a) (1)
25The local board of school directors or the governing board of an 
26institution of higher education shall annually assess whether
27each charter school or regional charter school is meeting the
28goals of its charter and shall conduct a comprehensive review
29prior to granting a [five (5) year] renewal of the charter. The
30local board of school directors or the governing board of an
 

1institution of higher education shall have ongoing access to the
2records and facilities of the charter school or regional charter 
3school to ensure that the charter school or regional charter 
4school is in compliance with its charter and this act and that
5requirements for testing, civil rights and student health and
6safety are being met.

7(2) Ongoing access to a charter school's or regional charter
8school's records shall mean that the local board of school
9directors or the governing board of an institution of higher
10education shall have access to records such as financial
11reports, financial audits, aggregate standardized test scores
12without student-identifying information and teacher
13certification and personnel records.

14(3) Charter schools and regional charter schools shall
15comply fully with the requirements of the Family Educational
16Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. §
171232g) and associated regulations. No personally identifiable
18information from education records shall be provided by the
19charter school <-or regional charter school to the school district
20except in compliance with the Family Educational Rights and
21Privacy Act of 1974.

22(b) In order to facilitate the local board's <-or the
23governing board of the institution of higher education's review
24and secretary's report, each charter school or regional charter
25school shall submit an annual report no later than August 1 of
26each year to the local board of school directors <-or the
27governing board of the institution of higher education and the
28secretary in the form prescribed by the secretary.

29* * *

30(d) A charter school entity shall form an independent audit

1committee of its board members which shall review at the close
2of each fiscal year a complete certified audit of the operations
3of the charter school entity. The audit shall be conducted by a
4qualified independent certified public accountant. The audit
5shall be conducted under generally accepted audit standards of
6the Governmental Accounting Standards Board and shall include
7the following:

8(1) An enrollment test to verify the accuracy of student
9enrollment and reporting to the State.

10(2) Full review of expense reimbursements for board members
11and administrators, including sampling of all reimbursements.

12(3) Review of internal controls, including review of
13receipts and disbursements.

14(4) Review of annual Federal and State tax filings,
15including the Internal Revenue Service Code Form 990, Return of
16Organization Exempt from Income Tax and all related schedules
17and appendices for the charter school and charter school
18foundation, if applicable.

19(5) Review of the financial statements of any charter school
20foundation.

21(6) Review of the selection and acceptance process of all
22contracts publicly bid pursuant to section 751.

23(7) Review of all board policies and procedures with regard
24to internal controls, code of ethics, conflicts of interest,
25whistle-blower protections, complaints from parents or the
26public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
27meetings), compliance with the "Right-to-Know Law," finances,
28budgeting, audits, public bidding and bonding.

29(e) The certified audit under subsection (d) and the annual
30budget under subsection (g) are public documents and shall be

1made available on the school district's publicly accessible
2Internet website and the charter school entity's publicly
3accessible Internet website, if applicable.

4(f) A charter school entity may be subject to an annual
5audit by the Auditor General, in addition to any other audits
6required by Federal law or this article.

7(g) A charter school entity shall annually provide the 
8department and, in the case of a charter school or regional 
9charter school, shall annually provide the school district, with 
10a copy of the annual budget for the operation of the charter 
11school entity that identifies the following:

12(1) The source of funding for all expenditures as part of
13its reporting under subsection (a).

14(2) Where funding is provided by a charter school
15foundation, the amount of funds and a description of the use of
16the funds.

17(3) The salaries of all administrators of the charter school
18entity.

19(4) All expenditures to an educational management service
20provider.

21(h) (1) Notwithstanding any other provision of law, a
22charter school entity and any affiliated charter school
23foundation shall make copies of its annual Federal and State tax
24filings available upon request and on the foundation's or
25charter school entity's publicly accessible Internet website, if
26applicable, including Internal Revenue Service Code Form 990,
27Return of Organization Exempt from Income Tax and all related
28schedules and appendices.

29(2) The charter school foundation shall also make copies of
30its annual budget available upon request and on the foundation's

1or the charter school entity's publicly accessible Internet
2website within thirty (30) days of the close of the foundation's
3fiscal year.

4(3) The annual budget shall include the salaries of all
5employes of the charter school foundation.

<-6Section 12. The act is amended by adding a section to read:

<-7Section 16. The act is amended by adding sections to read:

8Section 1728.1-A. Governing boards of institutions of higher
9education as authorizers of charter schools and regional charter
10schools.--(a) The governing board of an institution of higher
11education may elect, by an affirmative vote of a majority of all
12members, to become an authorizer of charter schools or regional
13charter schools subject to the following:

14(1) An institution of higher education of at least 2,000
15enrolled students that confers a doctoral degree in education
16and is domiciled and headquartered with its principal physical
17location in this Commonwealth may authorize a charter school
18anywhere in this Commonwealth. For purposes of this paragraph,
19the term "physical location" includes a location with qualified
20on-site administrative staff responsible for the overall
21administrative operation of all educational activities,
22including, but not limited to, instructional oversight,
23counseling, advising, library services and maintenance of
24academic records.

25(2) An institution of higher education of at least 2,000
26enrolled students that confers a bachelor's degree in education
27if completed in four (4) years of full-time study and does not
28confer a doctoral degree in education may only authorize a
29charter school in school districts in the county where the
30institution has its primary campus and operations.

1(3) An institution of higher education of at least 2,000
2enrolled students that does not confer a bachelor's degree in
3education or a doctoral degree in education may only authorize a
4charter school within the school district where the institution
5has its primary campus and operations.

6(b) The governing board of an institution of higher
7education may not elect to become an authorizer of charter
8schools and regional schools prior to July 1, 2015.

9(c) All hearings held by the governing board of an
10institution of higher education under this article shall be
11conducted in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating
12to practice and procedure of Commonwealth agencies).

13Section <-1728.1-A 1728.2-A. Charter Authorizer
14Accountability.--(a) Each local board of school directors of a
15district and the governing board of an institution of higher
16education shall be required to submit to the department an
17annual report summarizing:

18(1) The strategic vision for chartering and progress toward
19achieving that vision.

20(2) The academic and financial performance of all operating
21public charter schools <-and regional charter schools overseen by
22the local board or the governing board of an institution of
23higher education, according to the performance expectations for
24public charter schools set forth in this act.

25(3) The status of the local board of school directors' or
26the governing board of an institution of higher education's
27public charter school <-and regional charter school portfolio,
28identifying all public charter schools in each of the following
29categories: (i) approved, but not open; (ii) open and operating;
30and (iii) closed, including the year closed and the reason for

1closure.

2(4) The authorizing functions provided by the local board of
3school directors or the governing board of an institution of
4higher education to the public charter schools <-and regional 
5charter schools under its purview, including the authorizer's
6operating costs and expenses detailed in annual audited
7financial statements that conform to generally accepted
8accounting principles.

9(b) The department shall be responsible for the following:

10(1) Oversight of the performance of each established local
11board of school directors of a district and the governing board
12of an institution of higher education.

13(2) Formal evaluation of the overall State charter school
14program and outcomes every five years.

15(3) For each local board of school directors of a district
16and the governing board of an institution of higher education,
17an annual review, based on objective data, to determine how well
18the authorizer is exercising its duties and maintaining a
19portfolio of high-performing charter schools.

20(4) In reviewing or evaluating the performance of each local
21board of school directors of a district and the governing board
22of an institution of higher education, the department shall
23apply nationally recognized principles and standards of quality
24charter school authorizing <-as determined by including, but not
25limited to, those of the National Association of Charter School
26Authorizers.

27(c) The department shall publish the annual reviews on its
28publicly accessible Internet website and submit a summary report
29regarding authorizer performance to the Governor and the General
30Assembly.

1(d) The department shall develop a plan for sanctioning
2local boards of school directors of a district or governing
3boards of an institution of higher education that maintain
4portfolios with persistently low-performing charter schools <-and 
5regional charter schools and fail to provide adequate authorizer
6oversight or intervention that may include a corrective action
7plan for the authorizer and other sanctions deemed necessary by
8the department.

9Section 13 17. Section 1729-A(a), (b) <-and (c), (c) and (d)
10of the act, added June 19, 1997 (P.L.225, No.22), are amended to
11read:

12Section 1729-A. Causes for Nonrenewal or Termination.--(a)
13During the term of the charter or at the end of the term of the
14charter, the local board of school directors or the governing 
15board of an institution of higher education may choose to revoke
16or not to renew the charter based on any of the following:

17(1) One or more material violations of any of the
18conditions, standards or procedures contained in the written
19charter signed pursuant to section 1720-A.

20(2) Failure to meet the requirements for student performance
21[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
22subsequent regulations promulgated to replace 22 Pa. Code Ch. 5] 
23assessments or failure to meet any performance standard set
24forth in the written charter signed pursuant to section [1716-A] 
251720-A.

26(3) Failure to meet generally accepted standards of fiscal
27management or audit requirements.

28(4) Violation of provisions of this article.

29(5) Violation of any provision of law from which the charter
30school <-entity has not been exempted, including Federal laws and

1regulations governing children with disabilities.

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

3* * *

4(b) [A member of the board of trustees who is convicted of a
5felony or any crime involving moral turpitude shall be
6immediately disqualified from serving on the board of trustees.]
7If, after a hearing under this section, a local board of school 
8directors or the governing board of an institution of higher 
9education or, in the case of a cyber charter school, the 
10department proves by a preponderance of the evidence that an 
11administrator or board member of a charter school entity has 
12violated this article, the terms and conditions of the charter 
13or any other violation of law, the local board of school 
14directors or the governing board of an institution of higher 
15education <-or, in the case of a cyber charter school, the 
16department may require the charter school entity to replace the 
17administrator or board member in order to obtain renewal of the 
18charter. The local board of school directors or the governing 
19board of an institution of higher education <-or, in the case of a 
20cyber charter school, the department may refer its findings to 
21the district attorney with jurisdiction or to the Office of 
22Attorney General for prosecution if the local board of school 
23directors or the governing board of an institution of higher 
24education <-or, in the case of a cyber charter school, the 
25department discovers or receives information about possible 
26violations of law by any person affiliated with or employed by a 
27charter school entity.

28(c) Any notice of revocation or nonrenewal of a charter
29given by the local board of school directors of a school
30district or the governing board of an institution of higher
 

1education shall state the grounds for such action with
2reasonable specificity and give reasonable notice to the
3governing board of the charter school or regional charter school
4of the date on which a public hearing concerning the revocation
5or nonrenewal will be held. The local board of school directors
6or the governing board of an institution of higher education
7shall conduct such hearing, present evidence in support of the
8grounds for revocation or nonrenewal stated in its notice and
9give the charter school or regional charter school reasonable
10opportunity to offer testimony before taking final action.
11Formal action revoking or not renewing a charter shall be taken
12by the local board of school directors or the governing board of 
13an institution of higher education at a public meeting pursuant
14to [the act of July 3, 1986 (P.L.388, No.84), known as the
15"Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating to open meetings)
16after the public has had thirty (30) days to provide comments to
17the board. All proceedings of the local board pursuant to this
18subsection shall be subject to 2 Pa.C.S. Ch. 5 Subch. B
19(relating to practice and procedure of local agencies). Except
20as provided in subsection (d), the decision of the local board
21shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B (relating to
22judicial review of local agency action).

<-23(d) Following the appointment and confirmation of the appeal
24board, but not before July 1, 1999, the charter school may
25appeal the decision of the local board of school directors to
26revoke or not renew the charter to the appeal board. The appeal
27board shall have the exclusive review of a decision not to renew
28or revoke a charter by the local board of school directors. The
29appeal board shall review the record and shall have the
30discretion to supplement the record if the supplemental

1information was previously unavailable. The appeal board may
2consider the charter school plan, annual reports, student
3performance and employe and community support for the charter
4school in addition to the record. The appeal board shall give
5due consideration to the findings of the local board of
6directors and specifically articulate its reasons for agreeing
7or disagreeing with those findings in its written decision.

8* * *

9Section <-14 18. The act is amended by adding sections to
10read:

11Section 1729.1-A. Evaluation of Educators.--(a) All
12applications by a charter school entity for a charter or for the
13renewal of a charter shall include a system of evaluation for
14educators that includes both of the following:

15(1) At least four (4) rating categories of educator
16performance.

17(2) Multiple measures of student performance which shall
18include, but may not be limited to, value-added assessment
19system data made available by the department under section 221
20and student performance on the most recent assessments for which
21results have been released by the department and may include
22goals specific to the mission of the charter school entity's
23charter.

24(b) Nothing in this section shall preempt the powers of a
25board of trustees under section 1716-A(a) nor affect the intent
26of the General Assembly provided in section 1702-A(3) and (4).

27(c) For purposes of this section, the term "educator" shall
28include all professional employes who are certified as teachers
29and noncertified staff members who teach in a charter school
30entity.

1Section 1729.2-A. Multiple Charter School Organizations.--
2(a) Establishment shall be as follows:

3(1) Subject to the requirements of subsection (b), two or
4more charter schools may consolidate under 15 Pa.C.S. Pt. II
5Subpt. C (relating to nonprofit corporations) into a multiple
6charter school organization.

7(2) The multiple charter school organization shall be:

8(i) granted a single charter to operate two or more
9individual charter schools under the oversight of a single board
10of trustees and a chief administrator who shall oversee and
11manage the operation of the individual charter schools under its
12organization;

13(ii) considered a charter school entity; and

14(iii) subject to all of the requirements of this article
15unless otherwise provided for under this section.

16(3) Nothing under this subsection shall be construed to
17affect or change the terms or conditions of any individual
18charter previously granted that is consolidated under this
19section.

20(b) Including, but not limited to, any obligation of a
21school district for transportation, the following apply to
22consolidation of two or more individual charter schools into a
23multiple charter school organization:

24(1) A charter school that, prior to the effective date of
25this section, was approved by a local board of school directors,
26a special board of control, a School Reform Commission or
27another governing authority and that chooses to consolidate into
28a multiple charter school organization under this section may
29apply to the department to consolidate all affiliated school
30charters into a single charter within ninety (90) days after the

1department publishes the standard application form required
2under subsection (c). Beginning ninety-one (91) days after the
3department publishes the standard application form required
4under subsection (c), no charter school that was approved prior
5to the effective date of this section shall be eligible to
6consolidate with another charter school.

7(2) Consolidation is restricted as follows:

8(i) Except as set forth in subparagraph (ii), a charter
9school shall not be eligible to consolidate with another charter
10school that:

11(A) within either of the most recent two (2) school years,
12has failed to meet the requirements for student performance set
13forth in 22 Pa. Code Ch. 4 (relating to academic standards and
14assessment);

15(B) does not meet accepted standards of fiscal management or
16audit requirements; or

17(C) does not meet the standards set forth by the matrix
18established under section 1732-A(c)(3).

19(ii) Subparagraph (i) shall not apply if the consolidation
20includes a charter school which is not in violation of
21subparagraph (i) over the most recent two (2) school years.

22(iii) Clause (i)(C) shall not apply until the matrix
23required under section 1732-A(c)(3) has been developed.

24(3) The board of trustees of each charter school shall
25jointly submit their charter school's current charter and annual
26report to the department and request that oversight over the
27multiple charter school organization, including the authority to
28consider applications for renewal, be transferred to the
29department.

30(4) (i) Upon receipt of a consolidation and transfer

1application and all necessary documentation as required by the
2department, the department shall have thirty (30) days to
3approve or deny the consolidation and transfer application.

4(ii) Written notice of the department's action shall be sent
5to the applicants. If the application is denied, the reasons for
6the denial, including a description of deficiencies in the
7application, shall be clearly stated in the notice sent by the
8department to the applicants.

9(iii) If the department approves the consolidation and
10transfer, the department shall provide notification to the local
11boards of school directors, the special boards of control, the
12School Reform Commission or other governing authorities which
13initially approved the charters.

14(iv) A decision by the department to deny the consolidation
15and transfer application under subparagraph (i) may be appealed
16to the appeal board. The following shall apply to an appeal
17under this paragraph:

18(A) In the case of an appeal under this clause, the appeal
19board shall review the application and make a decision to
20approve or deny the consolidation and transfer application based
21on whether the application includes the information required
22under subsection (c).

23(B) Within thirty (30) days following receipt of an appeal
24under this clause, the appeal board shall meet to officially
25review the certified record of the department.

26(C) Within sixty (60) days following the review conducted
27pursuant to clause (B), the appeal board shall issue a written
28decision affirming or reversing the decision of the department.
29Written notice of the decision of the appeal board shall be
30provided to the parties.

1(D) A decision by the appeal board under this clause to
2approve the consolidation and transfer application shall serve
3as a requirement for the department to approve the application
4and provide notification of the approval to the local boards of
5school directors, the special boards of control, the School
6Reform Commission or other governing authorities which initially
7approved the charters within ten (10) days of the reversal of
8the decision of the department. If the department fails to
9provide notification within ten (10) days of the reversal of the
10decision of the department, the application shall be deemed to
11be approved, and the appeal board shall provide notification of
12the approval to the local boards of school directors, the
13special boards of control, the School Reform Commission or other
14governing authorities which initially approved the charters.

15(E) All decisions of the appeal board shall be subject to
16appellate review by the Commonwealth Court.

17(5) No later than thirty (30) days after the receipt of the
18notification of approval required under paragraph (4), the local
19boards of school directors, the special boards of control, the
20School Reform Commission or other governing authorities which
21initially approved the charters shall transfer to the department
22all records regarding oversight of the charter schools.

23(6) A charter school's charter term shall remain in effect
24until the time of expiration, at which time the department will
25undertake a comprehensive review prior to granting a ten-year
26charter renewal.

27(c) Within thirty (30) days of the effective date of this
28section, the department shall develop and issue a standard
29application form for multiple charter school organization
30applicants and shall publish the application form in the

1Pennsylvania Bulletin and on the department's publicly
2accessible Internet website. The application form shall contain
3the following information:

4(1) The name of the multiple charter school organization.

5(2) The names of the charter schools seeking consolidation
6and transfer under this section.

7(3) A copy of the approved charter of each charter school
8seeking to consolidate and transfer oversight functions to the
9department.

10(4) An organizational chart clearly presenting the proposed
11governance structure of the multiple charter school
12organization, including lines of authority and reporting between
13the board of trustees, chief administrator, administrators,
14staff and any educational management service provider that will
15play a role in providing management services to the charter
16schools under its jurisdiction.

17(5) A clear description of the roles and responsibilities
18for the board of trustees, chief administrator, administrators
19and any other entities, including a charter school foundation,
20shown in the organizational chart.

21(6) A clear description and method for the appointment or
22election of members of the board of trustees.

23(7) Standards for board of trustees performance, including
24compliance with all applicable laws, regulations and terms of
25the charter.

26(8) Enrollment procedures for each individual charter school
27included in its charter.

28(9) Any other information as deemed necessary by the
29department.

30(d) A multiple charter school organization may:

1(1) Participate in the assessment system in the same manner
2in which a school district participates, with its individual
3charter schools participating in the assessment system in the
4same manner as individual schools in school districts. All data
5gathered for purposes of evaluation shall be gathered in the
6same manner in which data is gathered in the case of school
7districts and individual schools in school districts.

8(2) Beginning ninety-one (91) days after the department
9publishes the standard application form required under
10subsection (c), add newly established charter schools to its
11organization through both of the following:

12(i) Establish a new charter school by applying for a charter
13through the local school board under section 1717-A; and

14(ii) Apply to the department to consolidate and transfer
15under this section.

16(3) Amend the individual charters of each charter school
17under its organization by seeking approval from the department
18under the amendment process included under section 1720-A.

19(4) Allow students enrolled in an individual charter school
20to matriculate to another individual charter school under its
21oversight so as to complete a course of instruction in an
22educational institution from kindergarten through grade twelve.

23(e) The annual report required under section 1728-A shall be
24provided by the board of trustees and chief administrator of the
25multiple charter school organization and shall include all
26information required to provide a basis for evaluation for
27renewal of each individual charter school under the oversight of
28the multiple charter school organization.

29(f) A multiple charter school organization shall be regarded
30as the holder of the charter of each individual charter school

1under its oversight and each previously or subsequently awarded
2charter shall be subject to nonrenewal or revocation in
3accordance with this act. The nonrenewal or revocation shall not
4affect the status of a charter awarded for any other individual
5charter school under the oversight of the multiple charter
6school organization.

7(g) The department shall:

8(1) Receive, review and act on multiple charter school
9organization consolidation and transfer applications under this
10section.

11(2) Exercise oversight over multiple charter school
12organizations approved under this section.

13(3) Develop and issue a standard application form for
14multiple charter school organization applicants and publish the
15application form in the Pennsylvania Bulletin and on the
16department's publicly accessible Internet website under
17subsection (c).

18(h) For purposes of this section, the term "charter school"
19shall include a regional charter school.

20Section <-15 19. Section 1732-A of the act, amended June 29,
212002 (P.L.524, No.88), is amended to read:

22Section 1732-A. Provisions Applicable to Charter Schools and 
23Regional Charter Schools.--(a) Charter schools and regional 
24charter schools shall be subject to the following:

25Sections 108, 110, 111, 321, 325, 326, 327, 431, 436, 443,
26510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 752, 753,
27[755,] 771, 776, 777, 808, 809, 810, 1109, 1111, 1112(a),
281205.1, 1205.2, 1205.3, 1205.4, 1205.5, 1301, 1302, 1303, 1310,
291317, 1317.1, 1317.2, 1317.3, 1318, 1327, 1330, 1332, 1333,
301303-A, 1513, 1517, 1518, 1521, 1523, 1531, 1547, 2014-A,

1Article XIII-A and Article XIV.

2Act of July 19, 1957 (P.L.1017, No.451), known as the "State
3Adverse Interest Act."

4Act of July 17, 1961 (P.L.776, No.341), known as the
5"Pennsylvania Fair Educational Opportunities Act."

6Act of July 19, 1965 (P.L.215, No.116), entitled "An act
7providing for the use of eye protective devices by persons
8engaged in hazardous activities or exposed to known dangers in
9schools, colleges and universities."

10Section 4 of the act of January 25, 1966 (1965 P.L.1546,
11No.541), entitled "An act providing scholarships and providing
12funds to secure Federal funds for qualified students of the
13Commonwealth of Pennsylvania who need financial assistance to
14attend postsecondary institutions of higher learning, making an
15appropriation, and providing for the administration of this
16act."

17Act of July 12, 1972 (P.L.765, No.181), entitled "An act
18relating to drugs and alcohol and their abuse, providing for
19projects and programs and grants to educational agencies, other
20public or private agencies, institutions or organizations."

21Act of December 15, 1986 (P.L.1595, No.175), known as the
22"Antihazing Law."

23The "Right-to-Know Law."

2465 Pa.C.S. Ch. 7 (relating to open meetings).

2565 Pa.C.S. Ch. 11 (relating to ethics standards and financial
26disclosure).

27(b) Charter schools shall be subject to the following
28provisions of 22 Pa. Code:

29[Section 5.216 (relating to ESOL).

30Section 5.4 (relating to general policies).]

1Chapter 4 (relating to academic standards and assessments).

2Chapter 11 (relating to pupil attendance).

3Chapter 12 (relating to students).

4Section 32.3 (relating to assurances).

5Section 121.3 (relating to discrimination prohibited).

6Section 235.4 (relating to practices).

7Section 235.8 (relating to civil rights).

8Chapter 711 (relating to charter school services and programs
9for children with disabilities).

10(c) (1) The secretary may promulgate additional regulations
11relating to charter schools <-and regional charter schools.

12(2) The secretary shall have the authority and the
13responsibility to ensure that charter schools <-and regional 
14charter schools comply with Federal laws and regulations
15governing children with disabilities. The secretary shall
16promulgate regulations to implement this provision.

17(3) (i) Within one (1) year of the effective date of this
18clause, the department shall develop a standard performance
19matrix to evaluate charter school <-entity performance and shall
20promulgate regulations pursuant to the act of June 25, 1982
21(P.L.633, No.181), known as the "Regulatory Review Act," to
22implement this section.

23(ii) The performance matrix shall assess performance by
24utilizing objective criteria, including, but not limited to:
25student performance on the Pennsylvania System of School
26Assessment test, the Keystone Exam or another test established
27by the State board to meet the requirements of section 2603-B(d)
28(10)(i) and required under the No Child Left Behind Act of 2001
29(Public Law 107-110, 115 Stat. 1425) or its successor Federal
30statute; annual growth as measured by the Pennsylvania Value-

1Added Assessment System; attendance; attrition rates; graduation
2rates; other standardized test scores; school safety; parent
3satisfaction; accreditation by a nationally recognized
4accreditation agency, including the Middle States Association of
5Colleges and Schools or another regional institutional
6accrediting agency recognized by the United States Department of
7Education or an equivalent federally recognized body for charter
8school education; and other measures of school quality,
9including measures for assessing teacher effectiveness.

10(iii) In developing the performance matrix, the department
11shall determine an academic quality benchmark the satisfaction
12of which shall qualify a charter school<-, regional charter school
13or cyber charter school <-entity for a ten (10) year renewal term
14pursuant to sections 1720-A and 1745-A(f). The academic quality
15benchmark shall be included in the regulations required under
16subclause (i).

17(iv) The department shall develop the performance matrix
18with input from charter school <-entity operators and may contract
19for consulting services with an entity that has experience in
20developing performance matrices if the services are procured
21through a competitive bidding process.

22(v) No local board of school directors or the governing
23board of an institution of higher education may develop a
24separate performance matrix for the evaluation of a charter
25school <-entity.

26(vi) A local board of school directors or the governing
27board of an institution of higher education shall utilize the
28standard performance matrix as a primary factor in evaluating
29new charter school and regional charter school applicants and
30applicants for charter school and regional charter school

1renewal and in annual monitoring and evaluation of charter
2schools<-. and regional charter schools.

3(vii) The department shall utilize the standard performance
4matrix as a primary factor in evaluating new and renewal cyber
5charter school applicants and in annual monitoring and
6evaluation of cyber charter schools.

<-7(vii) (viii) The department shall distribute the performance
8matrix to all local boards of school directors or the governing
9board of an institution of higher education and shall publish
10the matrix on the department's publicly accessible Internet
11website.

12Section <-16 20. The act is amended by adding a section to
13read:

14Section 1733-A. Effect on Existing Charter School
15Entities.--(a) Within one (1) year of the effective date of
16this section, a charter school entity established under section
171717-A or 1718-A prior to the effective date of this section
18shall amend the current charter through the amendment process
19under <-section 1720-A(c) sections 1720-A(c) and 1745-A(f)(5) as
20needed to reflect the requirements of this article. Any renewal
21that takes effect after July 15, 2013, shall be for the term
22specified under <-section 1720-A(a) sections 1720-A(a) and 1745-
23A(f)(3).

24(b) A charter school entity approved after the effective
25date of this section shall be in full compliance with this
26article.

<-27Section 17. Sections 1741-A(c) and 1742-A of the act, added

<-28Section 21. Sections 1741-A(c), 1742-A and 1743-A(a) and (e) 
29of the act, added June 29, 2002 (P.L.524, No.88), are amended to 
30read:

1Section 1741-A. Powers and duties of department.

2* * *

3(c) Documents.--Documents of the appeal board shall be
4subject to [the act of June 21, 1957 (P.L.390, No.212), referred
5to as] the Right-to-Know Law.<-] the act of February 14, 2008 
6(P.L.6, No.3), known as the Right-to-Know Law.

7Section 1742-A. Assessment and evaluation.

8The department shall:

9(1) Annually assess whether each cyber charter school is
10meeting the goals of its charter and is in compliance with
11the provisions of the charter and conduct a comprehensive
12review prior to granting a [five-year] <-ten-year renewal of
13the charter.

14(2) Annually review each cyber charter school's
15performance on the Pennsylvania System of School Assessment
16test, standardized tests and other performance indicators to
17ensure compliance with 22 Pa. Code Ch. 4 (relating to
18academic standards and assessment) or subsequent regulations
19promulgated to replace 22 Pa. Code Ch. 4.

20(3) Have ongoing access to all records, instructional
21materials and student and staff records of each cyber charter
22school and to every cyber charter school facility to ensure
23the cyber charter school is in compliance with its charter
24and this subdivision.

<-25Section 17.1. Section 1743-A(e) of the act, added June 29,
262002 (P.L.524, No.88), is amended to read:

27Section 1743-A. Cyber charter school requirements and
28prohibitions.

29(a) Special financial requirements prohibited.--A cyber
30charter school shall not:

1(1) provide discounts to a school district or waive
2payments under section [1725-A] 1752-A for any student;

3(2) except as provided for in subsection (e), provide
4payments to parents or guardians for the purchase of
5instructional materials; or

6(3) except as compensation for the provision of specific
7services, enter into agreements to provide funds to a school
8entity.

9* * *

10(e) Students.--For each student enrolled, a cyber charter
11school shall:

12(1) provide all instructional materials, which may 
13include electronic or digital books in place of textbooks;

14(2) provide all equipment, including, but not limited
15to, a computer, computer monitor and printer; and

16(3) provide or reimburse for all technology and services
17necessary for the on-line delivery of the curriculum and
18instruction.

19The Commonwealth shall not be liable for any reimbursement owed
20to students, parents or guardians by a cyber charter school
21under paragraph (3).

22* * *

23Section <-18 22. Section 1745-A(f) of the act, added June 29,
242002 (P.L.524, No.88), is amended and the section is amended by
25adding a subsection to read:

26Section 1745-A. Establishment of cyber charter school.

27* * *

28(b.1) Local board of school directors or intermediate
29unit.--

30(1) A cyber charter school may be established by a local

1board of school directors or an intermediate unit if the
2procedures and requirements of this article are satisfied.

3(2) Nothing in this article shall be construed to
4preclude a school district or an intermediate unit from
5offering instruction via the Internet or other electronic
6means, except that the instruction shall not be recognized as
7a cyber charter school under this article.

8* * *

9(f) Evaluation criteria.--

10(1) A cyber charter school application submitted under
11this subdivision shall be evaluated by the department based
12on the following criteria:

13(i) The demonstrated, sustainable support for the
14cyber charter school plan by teachers, parents or
15guardians and students.

16(ii) The capability of the cyber charter school
17applicant, in terms of support and planning, to provide
18comprehensive learning experiences to students under the
19charter.

20(iii) The extent to which the programs outlined in
21the application will enable students to meet the academic
22standards under 22 Pa. Code Ch. 4 (relating to academic
23standards and assessment) or subsequent regulations
24promulgated to replace 22 Pa. Code Ch. 4.

25(iv) The extent to which the application meets the
26requirements of section 1747-A.

27[(v) The extent to which the cyber charter school
28may serve as a model for other public schools.]

29(2) Written notice of the action of the department shall
30be sent by certified mail to the applicant and published on

1the department's [World Wide Web site] publicly accessible 
2Internet website. If the application is denied, the reasons
3for denial, including a description of deficiencies in the
4application, shall be clearly stated in the notice.

5(3) Upon approval of a cyber charter school application,
6a written charter shall be developed which shall contain the
7provisions of the charter application and be signed by the
8secretary and each member of the board of trustees of the
9cyber charter school. The charter, when duly signed, shall
10act as legal authorization of the establishment of a cyber
11charter school. The charter shall be legally binding on the
12department, the cyber charter school and its board of
13trustees. The charter shall be for a period of [no less than
14three years nor more than] five years<-. Upon the effective 
15date of the regulations implementing the performance matrix 
16as required by section 1732-A(c)(3), a cyber charter school 
17that satisfied the academic quality benchmark established by 
18the department pursuant to section 1732-A(c)(3) and may be
19renewed for a period of [five] ten years by the department. A 
20cyber charter school that has not satisfied the academic 
21quality benchmark established by the department pursuant to 
22section 1732-A(c)(3) may be renewed for five (5) year periods 
23upon reauthorization by the department.

24(4) The decision of the department to deny an
25application may be appealed to the appeal board.

26(5) (i) A cyber charter school may request amendments
27to its approved written charter by filing <-with the department
28a written document describing the requested amendment <-to the
29department.

30(ii) Within 20 days of its receipt of the request for an

1amendment, the department shall hold a public hearing on the
2requested amendment under 65 Pa.C.S. Ch. 7 (relating to open
3meetings).

4(iii) Within 20 days after the hearing, the department
5shall grant or deny the requested amendment. Failure by the
6department to hold a public hearing and to grant or deny the
7amendments within the time period specified shall be deemed <-a
8denial <-an approval.

9(iv) An applicant for an amendment shall have the right
10to appeal the denial of a requested amendment to the appeal
11board provided for under section 1721-A.

12* * *

13Section <-19. Section 23. Sections 1748-A(a)(2)(vi) and 1749-
14A(a) of the act, added June 29, 2002 (P.L.524, No.88), <-is are
15amended to read:

<-16Section 1748-A. Enrollment and notification.

17(a) Notice to school district.--

18* * *

19(2) If a school district which has received notice under
20paragraph (1) determines that a student is not a resident of
21the school district, the following apply:

22* * *

23(vi) A school district shall continue to make
24payments to a cyber charter school under section [1725-A]
251752-A during the time in which the school district of
26residence of a student is in dispute.

27* * *

28Section 1749-A. Applicability of other provisions of this act
29and of other acts and regulations.

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

1subject to the following:

2(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
3436, 443, 510, 518, 527, 708, 736, 737, 738, 739, 740, 741, 
4752, 753, [755,] 771, 776, 777, 808, 809, 810, 1109, 1111,
51112(a), 1205.1, 1205.2, 1205.3, 1205.5, 1301, 1302, 1303,
61310, 1317, 1317.2, 1318, 1327, 1330, 1332, 1333, 1303-A,
71513, 1517, 1518, 1521, 1523, 1525, 1531, 1547, <-1602-B, 1613-
8B, 1702-A, 1703-A, 1704-A, 1714-A, 1715-A, 1716-A, 1719-A,
91721-A, 1722-A, [1723-A(a) and (b)] 1723-A (a), (b) and (d),
101724-A, [1725-A,] 1727-A, 1728-A(d), (e), (f), (g) and (h),
111729-A, 1729.1-A, 1730-A, 1731-A(a)(1) and (b), <-1732-A(c)(3), 
121733-A and 2014-A and Articles [XII-A,] XIII-A and XIV.

13(1.1) <-Act The act of July 19, 1957 (P.L.1017, No.451),
14known as the State Adverse Interest Act.

15(2) The act of July 17, 1961 (P.L.776, No.341), known as
16the Pennsylvania Fair Educational Opportunities Act.

17(3) The act of July 19, 1965 (P.L.215, No.116), entitled
18"An act providing for the use of eye protective devices by
19persons engaged in hazardous activities or exposed to known
20dangers in schools, colleges and universities."

21(4) Section 4 of the act of January 25, 1966 (1965
22P.L.1546, No.541), entitled "An act providing scholarships
23and providing funds to secure Federal funds for qualified
24students of the Commonwealth of Pennsylvania who need
25financial assistance to attend postsecondary institutions of
26higher learning, making an appropriation, and providing for
27the administration of this act."

28(5) The act of July 12, 1972 (P.L.765, No.181) entitled
29"An act relating to drugs and alcohol and their abuse,
30providing for projects and programs and grants to educational

1agencies, other public or private agencies, institutions or
2organizations."

3(6) The act of December 15, 1986 (P.L.1595, No.175),
4known as the Antihazing Law.

5(7) The Right-to-Know Law.

6(8) 65 Pa.C.S. Ch. 7 (relating to open meetings).

7(9) 65 Pa.C.S. Ch. 11 (relating to ethics standards and
8financial disclosure).

9* * *

10Section <-20 24. The act is amended by adding a section to
11read:

12Section 1752-A. Funding for cyber charter schools.

<-13(a) General rule.--Funding for a cyber charter school shall
14be provided under section 1725-A(a)(1), (4), (5) and (6) and as
15follows:

16(1) For non-special education students, the cyber
17charter school shall receive for each student enrolled, 95%
18of the amount calculated to be paid by the district of
19residence under section 1725-A(a)(2). This amount shall be
20paid by the school district of residence of each student.

21(2) For special education students, the cyber charter
22school shall receive for each student enrolled, 95% of the
23amount calculated to be paid by the district of residence
24under section 1725-A(a)(3). This amount shall be paid by the
25school district of residence of each student.

<-26(b) Transition procedure.--The department shall develop a
27transition procedure to be able to recoup in subsequent fiscal
28years any payments made in error to a cyber charter school as a
29result of direct payment by the department to the cyber charter
30school.

1(c) Donations.--

2(1) It shall be lawful for any cyber charter school to
3receive, hold, manage and use, absolutely or in trust, any
4devise, bequest, grant, endowment, gift or donation of any
5property, real, personal or mixed, which shall be made to the
6cyber charter school for any of the purposes of this article.

7(2) It shall be unlawful for any trustee of a cyber
8charter school or any board of trustees of a cyber charter
9school or any other person affiliated in any way with a cyber
10charter school to demand or request, directly or indirectly,
11any gift, donation or contribution of any kind from any
12parent, teacher, employee or any other person affiliated with
13the cyber charter school as a condition for employment or
14enrollment or continued attendance of any pupil. Any
15donation, gift or contribution received by a cyber charter
16school must be given freely and voluntarily.

17Section <-21 25. This act shall take effect as follows:

18(1) The following provisions shall take effect
19immediately:

20(i) The addition of section 1733-A of the act.

21(ii) This section.

<-22(2) The amendment or addition of sections 1724-A, 1725-A
23and 1752-A of the act shall take effect July 1, 2014, or
24immediately, whichever occurs later.

<-25(2) (3) The remainder of this act shall take effect in
2660 days.