Regular Session 2015-2016 House Bill 0762 P.N. 1999

SENATE AMENDED

PRIOR PRINTER'S NOS. 903, 1051

PRINTER'S NO. 1999

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

762

Session of

2015

INTRODUCED BY ROAE, JAMES, REED, McNEILL, V. BROWN, SAYLOR,

MURT, SANTORA, WATSON, SONNEY, TOPPER, MENTZER, FABRIZIO,

GROVE, RAPP, PHILLIPS-HILL, GIBBONS, HARHAI AND EVANKOVICH,

MARCH 10, 2015

SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS

AMENDED, JUNE 29, 2015

AN ACT

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

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," in preliminary provisions, providing

for powers and duties of the Secretary of Education; IN

GROUNDS AND BUILDINGS, FURTHER PROVIDING FOR LIMITATIONS ON

APPROVAL OF PUBLIC SCHOOL BUILDING PROJECTS AND ESTABLISHING

THE PUBLIC SCHOOL BUILDING CONSTRUCTION AND RECONSTRUCTION

ADVISORY COMMITTEE; IN PUPILS AND ATTENDANCE, FURTHER

PROVIDING FOR EDUCATION AND TRAINING OF EXCEPTIONAL CHILDREN;

IN CHARTER SCHOOLS, FURTHER PROVIDING FOR SCHOOL STAFF; IN

VOCATIONAL EDUCATION, FURTHER PROVIDING FOR VOCATIONAL

EDUCATION EQUIPMENT GRANTS; IN COMMUNITY COLLEGES, FURTHER

PROVIDING FOR FINANCIAL PROGRAM AND PAYMENT REIMBURSEMENT; IN

DISRUPTIVE STUDENT PROGRAMS, FURTHER PROVIDING FOR

APPLICATIONS; IN PRIVATE ALTERNATIVE EDUCATION INSTITUTIONS

FOR DISRUPTIVE STUDENTS, FURTHER PROVIDING FOR CONTRACTS WITH

PRIVATE ALTERNATIVE EDUCATION INSTITUTIONS; PROVIDING FOR THE

RURAL REGIONAL COLLEGE FOR UNDERSERVED COUNTIES; IN FUNDING

FOR PUBLIC LIBRARIES, PROVIDING FOR STATE AID FOR FISCAL YEAR

2015-2016; IN REIMBURSEMENTS BY COMMONWEALTH AND BETWEEN

SCHOOL DISTRICTS, PROVIDING FOR STUDENT-WEIGHTED BASIC

EDUCATION FUNDING; FURTHER PROVIDING FOR PAYMENTS TO

INTERMEDIATE UNITS, FOR SPECIAL EDUCATION PAYMENTS TO SCHOOL

DISTRICTS, FOR EXTRAORDINARY SPECIAL EDUCATION PROGRAM

EXPENSES AND FOR SPECIAL EDUCATION FUNDING FOR ELIGIBLE

STUDENTS WITH DISABILITIES IN COST CATEGORY 3; IN

REIMBURSEMENTS BY COMMONWEALTH AND BETWEEN SCHOOL DISTRICTS,

PROVIDING FOR FOR REIMBURSEMENT FOR SCHOOL DISTRICTS WITHOUT

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REQUIRED DOCUMENTATION, FOR PUBLIC SCHOOL BUILDING LEASE AND

DEBT SERVICE REIMBURSEMENTS FOR FISCAL YEAR 2015-2016 AND FOR

READY-TO-LEARN BLOCK GRANTS; PROVIDING FOR SCHOOL DISTRICT

DEBT REFINANCING BONDS; AND REPEALING PROVISIONS OF THE

FISCAL CODE RELATING TO RURAL REGIONAL COLLEGE FOR

UNDERSERVED COUNTIES.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

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

section to read:

Section 124. Powers and Duties of the Secretary of

Education.--(a) On behalf of the Commonwealth, the Secretary of

Education shall have the authority and duty to enter into and

administer membership in a regional compact and an interstate

reciprocity agreement for the provision of postsecondary

distance education by the following:

(1) Institutions of higher education to students in other

states, territories and districts party to such agreement.

(2) Postsecondary institutions in other states, territories

or districts that are a party to such agreement to students in

this Commonwealth.

(b) The Department of Education may charge administrative

fees to institutions of higher education that choose to

participate in the agreement, not to exceed the Department of

Education's additional administrative cost.

Reciprocity Agreement Restricted Receipts Account is established

as a special restricted receipts account within the General Fund

of the State Treasury, from which the department may draw moneys

for the purpose of agreement expenses, the costs of

administering and implementing the agreement and all other costs

associated with the activities of the department related to

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implementation of this section. This account shall consist of

all administrative fees deposited under subsection (b) and State

funds appropriated for use under this section. The restricted

receipts account shall be subject to audit by the Auditor

General.

(d) For purposes of this section, "institution of higher

education" shall have the meaning given in section 118.

Section 2. This act shall take effect in 60 days.

SECTION 1. THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN

AS THE PUBLIC SCHOOL CODE OF 1949, IS AMENDED BY ADDING A

SECTION TO READ:

SECTION 124. POWERS AND DUTIES OF THE SECRETARY OF

EDUCATION.--(A) ON BEHALF OF THE COMMONWEALTH, THE SECRETARY OF

EDUCATION SHALL HAVE THE AUTHORITY AND DUTY TO ENTER INTO AND

ADMINISTER MEMBERSHIP IN A REGIONAL COMPACT AND AN INTERSTATE

RECIPROCITY AGREEMENT FOR THE PROVISION OF POSTSECONDARY

DISTANCE EDUCATION BY THE FOLLOWING:

(1) INSTITUTIONS OF HIGHER EDUCATION TO STUDENTS IN OTHER

STATES, TERRITORIES AND DISTRICTS PARTY TO SUCH AGREEMENT.

(2) POSTSECONDARY INSTITUTIONS IN OTHER STATES, TERRITORIES

OR DISTRICTS THAT ARE A PARTY TO SUCH AGREEMENT TO STUDENTS IN

THIS COMMONWEALTH.

(B) THE DEPARTMENT OF EDUCATION MAY CHARGE ADMINISTRATIVE

FEES TO INSTITUTIONS OF HIGHER EDUCATION THAT CHOOSE TO

PARTICIPATE IN THE AGREEMENT, NOT TO EXCEED THE AMOUNT NECESSARY

TO PAY THE ADMINISTRATIVE COSTS OF THE AGREEMENT. THE DEPARTMENT

MAY PROMULGATE FINAL-OMITTED REGULATIONS PURSUANT TO THE ACT OF

JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE "REGULATORY REVIEW

ACT," NECESSARY TO IMPLEMENT THIS SUBSECTION, PROVIDED THAT SUCH

FINAL-OMITTED REGULATIONS SHALL EXPIRE ON JUNE 30, 2018. AFTER

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JUNE 30, 2018, ANY REVISIONS TO THE ADMINISTRATIVE FEES CHARGED

UNDER THIS SUBSECTION SHALL BE MADE THROUGH REGULATIONS

PROMULGATED UNDER THE REGULATORY REVIEW ACT.

RECIPROCITY AGREEMENT RESTRICTED RECEIPTS ACCOUNT IS ESTABLISHED

AS A SPECIAL RESTRICTED RECEIPTS ACCOUNT WITHIN THE GENERAL FUND

OF THE STATE TREASURY, FROM WHICH THE DEPARTMENT MAY DRAW MONEYS

FOR THE PURPOSE OF AGREEMENT EXPENSES, THE COSTS OF

ADMINISTERING AND IMPLEMENTING THE AGREEMENT AND ALL OTHER COSTS

ASSOCIATED WITH THE ACTIVITIES OF THE DEPARTMENT RELATED TO

IMPLEMENTATION OF THIS SECTION. THIS ACCOUNT SHALL CONSIST OF

ALL ADMINISTRATIVE FEES DEPOSITED UNDER SUBSECTION (B) AND STATE

FUNDS APPROPRIATED FOR USE UNDER THIS SECTION. THE RESTRICTED

RECEIPTS ACCOUNT SHALL BE SUBJECT TO AUDIT BY THE AUDITOR

GENERAL.

(D) FOR PURPOSES OF THIS SECTION, "INSTITUTION OF HIGHER

EDUCATION" SHALL HAVE THE MEANING GIVEN IN SECTION 118.

SECTION 2. SECTION 732.1 OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 732.1. LIMITATION ON NEW APPLICATIONS FOR DEPARTMENT

OF EDUCATION APPROVAL OF PUBLIC SCHOOL BUILDING PROJECTS.--* * *

EDUCATION SHALL NOT ACCEPT OR APPROVE NEW BUILDING CONSTRUCTION

OR RECONSTRUCTION PROJECT APPLICATIONS. COMPLETED SCHOOL

BUILDING CONSTRUCTION OR RECONSTRUCTION PROJECT APPLICATIONS

RECEIVED BY THE DEPARTMENT OF EDUCATION BY AUGUST 15, 2015, ARE

NOT SUBJECT TO THIS SUBSECTION.

SECTION 3. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 732.2. PUBLIC SCHOOL BUILDING CONSTRUCTION AND

RECONSTRUCTION ADVISORY COMMITTEE.--(A) THERE IS HEREBY

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ESTABLISHED AN ADVISORY COMMITTEE TO REVIEW AND MAKE FINDINGS

RELATED TO THE CONSTRUCTION AND RECONSTRUCTION OF PUBLIC SCHOOL

BUILDINGS, INCLUDING CONSTRUCTION AND RECONSTRUCTION PLANNING,

FINANCING AND COMMONWEALTH REIMBURSEMENT.

(B) THE ADVISORY COMMITTEE SHALL CONSIST OF THE FOLLOWING:

(1) THE SECRETARY OF EDUCATION OR A DESIGNEE.

(2) (RESERVED).

(3) A REPRESENTATIVE FROM THE FOLLOWING:

(I) THE PENNSYLVANIA ASSOCIATION OF SCHOOL BUSINESS

OFFICIALS.

(II) THE PENNSYLVANIA SCHOOL BOARDS ASSOCIATION.

(4) THE CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS

COMMITTEE AND EDUCATION COMMITTEE OF THE SENATE AND THE

CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE

AND EDUCATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(5) TWO MEMBERS APPOINTED BY THE PRESIDENT PRO TEMPORE OF

THE SENATE, ONE OF WHOM MUST HAVE EXPERTISE IN MUNICIPAL DEBT

AND FINANCE.

(6) TWO MEMBERS APPOINTED BY THE SPEAKER OF THE HOUSE OF

REPRESENTATIVES, ONE OF WHOM MUST HAVE EXPERIENCE IN MUNICIPAL

DEBT AND FINANCE.

(30) DAYS OF THE EFFECTIVE DATE OF THIS SECTION REGARDLESS OF

WHETHER ALL OF THE COMMITTEE MEMBERS HAVE BEEN APPOINTED TO THE

COMMITTEE. AT THE FIRST MEETING, THE DEPARTMENT OF EDUCATION

SHALL PRESENT ITS REPORT RELATING TO THE STATEWIDE ANALYSIS OF

SCHOOL FACILITIES AND CAPITAL NEEDS AS REQUIRED UNDER SECTION

732.1.

(D) THE COMMITTEE SHALL APPOINT A MEMBER TO SERVE AS

CHAIRMAN OF THE COMMITTEE.

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(E) THE COMMITTEE SHALL HOLD MEETINGS AT THE CALL OF THE

CHAIRMAN.

(F) THE MEMBERS MAY NOT RECEIVE COMPENSATION FOR THEIR

SERVICES, BUT SHALL BE REIMBURSED FOR ALL NECESSARY TRAVEL AND

OTHER REASONABLE EXPENSES INCURRED IN CONNECTION WITH THE

PERFORMANCE OF THEIR DUTIES AS MEMBERS OF THE COMMITTEE.

(G) THE GENERAL ASSEMBLY SHALL PROVIDE ADMINISTRATIVE

SUPPORT, MEETING SPACE AND ANY OTHER ASSISTANCE REQUIRED BY THE

COMMITTEE TO CARRY OUT ITS DUTIES UNDER THIS SECTION IN

COOPERATION WITH THE DEPARTMENT. THE DEPARTMENT SHALL PROVIDE

THE COMMITTEE WITH DATA, RESEARCH AND OTHER INFORMATION UPON

REQUEST.

(H) THE COMMITTEE SHALL ISSUE A REPORT NOT LATER THAN

FEBRUARY 1, 2016, OF THE COMMITTEE'S FINDINGS TO THE GOVERNOR,

THE PRESIDENT PRO TEMPORE OF THE SENATE, THE MAJORITY LEADER AND

MINORITY LEADER OF THE SENATE, THE APPROPRIATIONS COMMITTEE AND

EDUCATION COMMITTEE OF THE SENATE, THE SPEAKER OF THE HOUSE OF

REPRESENTATIVES, THE MAJORITY LEADER AND MINORITY LEADER OF THE

HOUSE OF REPRESENTATIVES, THE APPROPRIATIONS COMMITTEE AND

EDUCATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND THE

SECRETARY OF EDUCATION.

SECTION 4. SECTION 1372(8) OF THE ACT, ADDED MAY 10, 2000

(P.L.44, NO.16), IS AMENDED TO READ:

SECTION 1372. EXCEPTIONAL CHILDREN; EDUCATION AND

TRAINING.--* * *

(8) REPORTING OF EXPENDITURES RELATING TO EXCEPTIONAL

STUDENTS.

(I) BY DECEMBER 31, 2000, AND EACH YEAR THEREAFTER, EACH

SCHOOL DISTRICT SHALL COMPILE INFORMATION LISTING THE NUMBER OF

STUDENTS WITH DISABILITIES FOR WHICH EXPENDITURES ARE BETWEEN

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TWENTY-FIVE THOUSAND DOLLARS ($25,000) AND FIFTY THOUSAND

DOLLARS ($50,000), BETWEEN FIFTY THOUSAND DOLLARS ($50,000) AND

SEVENTY-FIVE THOUSAND DOLLARS ($75,000) AND OVER SEVENTY-FIVE

THOUSAND DOLLARS ($75,000) FOR THE PRIOR SCHOOL YEAR. THE

INFORMATION SHALL BE SUBMITTED TO THE DEPARTMENT IN A FORM

PRESCRIBED BY THE DEPARTMENT. BY FEBRUARY 1, 2001, AND EACH YEAR

THEREAFTER, THE DEPARTMENT SHALL SUBMIT TO THE CHAIRMAN AND

MINORITY CHAIRMAN OF THE EDUCATION AND APPROPRIATIONS COMMITTEES

OF THE SENATE AND THE CHAIRMAN AND MINORITY CHAIRMAN OF THE

EDUCATION AND APPROPRIATIONS COMMITTEES OF THE HOUSE OF

REPRESENTATIVES A REPORT LISTING THIS INFORMATION BY SCHOOL

DISTRICT.

(II) BEGINNING WITH THE 2015-2016 SCHOOL YEAR, THE

DEPARTMENT SHALL ANNUALLY ADJUST THE DOLLAR RANGES FOR WHICH THE

INFORMATION IS COLLECTED UNDER THIS SECTION BY THE CONSUMER

PRICE INDEX FOR ALL URBAN CONSUMERS FOR THE PENNSYLVANIA, NEW

JERSEY, DELAWARE AND MARYLAND AREA.

SECTION 5. SECTION 1724-A(C) OF THE ACT, AMENDED JUNE 30,

2011 (P.L.112, NO.24), IS AMENDED TO READ:

SECTION 1724-A. SCHOOL STAFF.--* * *

THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM IN THE SAME

MANNER AS SET FORTH IN 24 PA.C.S. § 8301(A) (RELATING TO

MANDATORY AND OPTIONAL MEMBERSHIP) UNLESS AT THE TIME OF THE

APPLICATION FOR THE CHARTER SCHOOL THE SPONSORING DISTRICT OR

THE BOARD OF TRUSTEES OF THE CHARTER SCHOOL HAS A RETIREMENT

PROGRAM WHICH COVERS THE EMPLOYES OR THE EMPLOYE IS CURRENTLY

ENROLLED IN ANOTHER RETIREMENT PROGRAM. [THE COMMONWEALTH SHALL

MAKE CONTRIBUTIONS ON BEHALF OF CHARTER SCHOOL EMPLOYES ENROLLED

IN THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM.] THE CHARTER

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SCHOOL SHALL BE CONSIDERED A PUBLIC SCHOOL [DISTRICT] AS DEFINED

IN 24 PA.C.S. § 8102 (RELATING TO DEFINITIONS) AND SHALL MAKE

QUARTERLY PAYMENTS BY EMPLOYERS TO THE PUBLIC SCHOOL EMPLOYEES'

RETIREMENT SYSTEM AND MONTHLY PAYMENTS ON ACCOUNT OF SOCIAL

SECURITY AS ESTABLISHED UNDER 24 PA.C.S. PT. IV (RELATING TO

RETIREMENT FOR SCHOOL EMPLOYEES). THE MARKET VALUE/INCOME AID

RATIO USED IN CALCULATING PAYMENTS AS PRESCRIBED IN THIS

SUBSECTION SHALL BE THE MARKET VALUE/INCOME AID RATIO FOR THE

SCHOOL DISTRICT IN WHICH THE CHARTER SCHOOL IS LOCATED OR, IN

THE CASE OF A REGIONAL CHARTER SCHOOL, SHALL BE A COMPOSITE

MARKET VALUE/INCOME AID RATIO FOR THE PARTICIPATING SCHOOL

DISTRICTS AS DETERMINED BY THE DEPARTMENT. EXCEPT AS OTHERWISE

PROVIDED, EMPLOYES OF A CHARTER SCHOOL SHALL MAKE REGULAR MEMBER

CONTRIBUTIONS AS REQUIRED FOR ACTIVE MEMBERS UNDER 24 PA.C.S.

PT. IV. IF THE EMPLOYES OF THE CHARTER SCHOOL PARTICIPATE IN

ANOTHER RETIREMENT PLAN, THEN THOSE EMPLOYES SHALL HAVE NO

CONCURRENT CLAIM ON THE BENEFITS PROVIDED TO PUBLIC SCHOOL

EMPLOYES UNDER 24 PA.C.S. PT. IV. [FOR PURPOSES OF THIS

SUBSECTION, A CHARTER SCHOOL SHALL BE DEEMED TO BE A "PUBLIC

SCHOOL" AS DEFINED IN 24 PA.C.S. § 8102 (RELATING TO

DEFINITIONS).] NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE

CONTRARY, NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE

THE COMMONWEALTH TO MAKE PAYMENTS TO CHARTER SCHOOLS OR

CONTRIBUTIONS ON BEHALF OF CHARTER SCHOOL EMPLOYES FROM

APPROPRIATED FUNDS, AS PROVIDED IN 24 PA.C.S. §§ 8326 (RELATING

TO CONTRIBUTIONS BY THE COMMONWEALTH) AND 8535 (RELATING TO

PAYMENTS TO SCHOOL ENTITIES BY COMMONWEALTH) ON ACCOUNT OF

CHARTER SCHOOL EMPLOYES ENROLLED IN THE PUBLIC SCHOOL EMPLOYEES'

RETIREMENT SYSTEM AND 24 PA.C.S. § 8329(A) (RELATING TO PAYMENTS

ON ACCOUNT OF SOCIAL SECURITY DEDUCTIONS FROM APPROPRIATIONS) ON

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ACCOUNT OF SOCIAL SECURITY PAYMENTS MADE BY A CHARTER SCHOOL.

* * *

SECTION 6. SECTION 1855 OF THE ACT, AMENDED JUNE 22, 2001

(P.L.530, NO.35), IS AMENDED TO READ:

SECTION 1855. VOCATIONAL EDUCATION EQUIPMENT GRANTS.--(A)

FOR THE 2000-2001 FISCAL YEAR AND THE 2001-2002 FISCAL YEAR, THE

DEPARTMENT OF EDUCATION SHALL ESTABLISH A GRANT PROGRAM TO

ASSIST AREA VOCATIONAL-TECHNICAL SCHOOLS, SCHOOL DISTRICTS

OFFERING APPROVED VOCATIONAL-TECHNICAL PROGRAMS AND THE THADDEUS

STEVENS STATE COLLEGE OF TECHNOLOGY IN PURCHASING EQUIPMENT THAT

MEETS INDUSTRY STANDARDS FOR THE PURPOSE OF PROVIDING TRAINING

TO STUDENTS. GRANTS SHALL BE LIMITED TO THE PURCHASE OF

EQUIPMENT IN THE FOLLOWING PROGRAM AREAS: AUTOMOTIVE TECHNOLOGY,

AUTO BODY, DIESEL TECHNOLOGY, PRECISION MACHINE TECHNOLOGY,

HEATING VENTILATION AND AIR CONDITIONING, PRINTING, DENTAL

ASSISTING, ELECTRONICS, BUILDING TRADES AND OTHER PROGRAM AREAS

APPROVED BY THE SECRETARY OF EDUCATION. GRANTS SHALL BE AWARDED

BY THE DEPARTMENT OF EDUCATION ON A MATCHING BASIS, TWO STATE

DOLLARS ($2) FOR EVERY LOCAL DOLLAR ($1), AND SHALL BE LIMITED

TO FUNDS APPROPRIATED FOR THAT PURPOSE.

(B) FOR THE 2015-2016 SCHOOL YEAR, THE DEPARTMENT OF

EDUCATION SHALL ESTABLISH A GRANT PROGRAM TO ASSIST EACH AREA

VOCATIONAL-TECHNICAL SCHOOL AND SCHOOL DISTRICT WITH AN APPROVED

VOCATIONAL PROGRAM THAT APPLIES FOR AND IS APPROVED FOR FUNDING

BY THE DEPARTMENT OF EDUCATION TO PURCHASE EQUIPMENT THAT MEETS

INDUSTRY STANDARDS. GRANTS SHALL BE DISTRIBUTED IN AN AMOUNT TO

BE CALCULATED AS FOLLOWS:

(1) A BASE AMOUNT OF THREE THOUSAND DOLLARS ($3,000).

(2) A PER-STUDENT AMOUNT CALCULATED AS FOLLOWS:

(I) MULTIPLY THE 2014-2015 AVERAGE DAILY MEMBERSHIP IN

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APPROVED VOCATIONAL EDUCATION PROGRAMS FOR EACH AREA VOCATIONAL-

TECHNICAL SCHOOL OR SCHOOL DISTRICT THAT HAS BEEN APPROVED FOR

FUNDING BY THE DEPARTMENT BY THE DIFFERENCE BETWEEN THE AMOUNT

APPROPRIATED FOR CAREER AND TECHNICAL EDUCATION EQUIPMENT GRANTS

AND THE SUM OF THE FUNDING DISTRIBUTED UNDER PARAGRAPH (1) TO

ALL AREA VOCATIONAL-TECHNICAL SCHOOLS AND SCHOOL DISTRICTS.

(II) DIVIDE THE PRODUCT FROM SUBPARAGRAPH (I) BY THE SUM OF

THE 2014-2015 AVERAGE DAILY MEMBERSHIP IN APPROVED VOCATIONAL

EDUCATION PROGRAMS FOR ALL AREA VOCATIONAL-TECHNICAL SCHOOLS AND

SCHOOL DISTRICTS THAT HAVE BEEN APPROVED FOR FUNDING BY THE

DEPARTMENT.

(B) SHALL BE DEVELOPED BY THE DEPARTMENT WITHIN THIRTY DAYS OF

THE EFFECTIVE DATE OF THIS SECTION AND ONLY REQUIRE THE

FOLLOWING, WHICH MAY BE COLLECTED ELECTRONICALLY:

(1) NAME, ADDRESS, E-MAIL ADDRESS AND TELEPHONE NUMBER OF

THE AREA VOCATIONAL-TECHNICAL SCHOOL OR SCHOOL DISTRICT.

(2) NAME, E-MAIL ADDRESS AND TELEPHONE NUMBER OF AN EMPLOYEE

OF THE AREA VOCATIONAL-TECHNICAL SCHOOL OR SCHOOL DISTRICT WHO

WILL BE AVAILABLE TO ANSWER QUESTIONS REGARDING THE FUNDING

APPLICATION.

(3) DESCRIPTION OF THE EQUIPMENT FOR WHICH THE REQUESTED

FUNDING WILL BE USED; THE CAREER AND TECHNICAL EDUCATION PROGRAM

IN WHICH THE EQUIPMENT WILL BE USED; THE DATE ON WHICH THE

OCCUPATIONAL ADVISORY COMMITTEE RECOMMENDED THE PURCHASE OF THE

EQUIPMENT; AND VERIFICATION THAT THE EQUIPMENT WILL BE USED FOR

TECHNICAL CLASSROOM INSTRUCTION.

(D) THE DEPARTMENT MAY NOT REQUEST AND CONSIDER ANY

INFORMATION OTHER THAN THE INFORMATION PROVIDED IN THE FUNDING

APPLICATION.

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(E) EACH AREA VOCATIONAL-TECHNICAL SCHOOL OR SCHOOL DISTRICT

WITH AN APPROVED VOCATIONAL PROGRAM THAT SUBMITS A COMPLETED

FUNDING APPLICATION SHALL RECEIVE FUNDING IN THE AMOUNT

DETERMINED UNDER SUBSECTION (B).

(F) FOR PURPOSES OF THIS SECTION, "OCCUPATIONAL ADVISORY

COMMITTEE" SHALL MEAN AN OCCUPATIONAL ADVISORY COMMITTEE

ESTABLISHED PURSUANT TO 22 PA. CODE CH. 339 (RELATING TO

VOCATIONAL EDUCATION).

SECTION 7. SECTION 1913-A(B)(1.6) OF THE ACT IS AMENDED BY

ADDING A SUBCLAUSE TO READ:

SECTION 1913-A. FINANCIAL PROGRAM; REIMBURSEMENT OF

PAYMENTS.--* * *

(B) * * *

(1.6) FOR THE 2006-2007 FISCAL YEAR AND EACH FISCAL YEAR

THEREAFTER, THE PAYMENT FOR A COMMUNITY COLLEGE SHALL CONSIST OF

THE FOLLOWING:

* * *

(IX) FOR THE 2015-2016 FISCAL YEAR, EACH COMMUNITY COLLEGE

SHALL RECEIVE AN AMOUNT EQUAL TO THE SUM OF THE FOLLOWING:

(A) AN AMOUNT EQUAL TO THE AMOUNT ALLOCATED TO THE COMMUNITY

COLLEGE FOR OPERATING COSTS UNDER SUBCLAUSE (VIII)(A).

(B) AN AMOUNT EQUAL TO THE AMOUNT ALLOCATED TO A COMMUNITY

COLLEGE FOR THE ECONOMIC DEVELOPMENT STIPEND UNDER SUBCLAUSE

(VIII)(B).

FOLLOWS:

(I) DIVIDE THE SUM OF THE AMOUNTS OF FUNDING THE COMMUNITY

COLLEGE RECEIVED UNDER PARAGRAPHS (A) AND (B) BY THE TOTAL

AMOUNT OF FUNDING PROVIDED UNDER PARAGRAPHS (A) AND (B) FOR ALL

COMMUNITY COLLEGES.

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(II) MULTIPLY THE QUOTIENT IN SUBPARAGRAPH (I) BY THE

DIFFERENCE BETWEEN THE APPROPRIATION FOR PAYMENT OF APPROVED

OPERATING EXPENSES OF COMMUNITY COLLEGES IN FISCAL YEAR 2014-

2015 AND FISCAL YEAR 2013-2014.

(D) AN AMOUNT DETERMINED FOR EACH COMMUNITY COLLEGE AS

FOLLOWS:

(I) MULTIPLY THE AUDITED FULL-TIME EQUIVALENT ENROLLMENT AS

VERIFIED UNDER SUBSECTION (K.1) FOR THE MOST RECENT YEAR

AVAILABLE FOR THE COMMUNITY COLLEGE BY THE DIFFERENCE BETWEEN

THE APPROPRIATION FOR PAYMENT OF APPROVED OPERATING EXPENSES OF

COMMUNITY COLLEGES IN FISCAL YEAR 2015-2016 AND FISCAL YEAR

2014-2015.

(II) DIVIDE THE PRODUCT IN SUBPARAGRAPH (I) BY THE SUM OF

THE AUDITED FULL-TIME EQUIVALENT ENROLLMENT AS VERIFIED UNDER

SUBSECTION (K.1) FOR THE MOST RECENT YEAR AVAILABLE FOR ALL

COMMUNITY COLLEGES.

* * *

SECTION 8. SECTION 1902-C INTRODUCTORY PARAGRAPH OF THE ACT,

ADDED JUNE 25, 1997 (P.L.297, NO.30), IS AMENDED AND THE SECTION

IS AMENDED BY ADDING A SUBSECTION TO READ:

SECTION 1902-C. APPLICATIONS.--(A) APPLICANTS SHALL SUBMIT

APPLICATIONS AT THE TIME, IN THE MANNER AND CONTAINING OR

ACCOMPANIED BY SUCH INFORMATION AS THE DEPARTMENT MAY PRESCRIBE

BUT, IN ANY CASE, SHALL DOCUMENT THE FOLLOWING:

* * *

(B) A SCHOOL DISTRICT, COMBINATION OF SCHOOL DISTRICTS OR

CHARTER SCHOOL THAT MAKES AN APPLICATION TO ESTABLISH AN

ALTERNATIVE EDUCATION PROGRAM SHALL SUBMIT INITIAL AND RENEWAL

APPLICATIONS ALONG WITH A FEE OF FOUR HUNDRED DOLLARS ($400) AS

PRESCRIBED BY THE DEPARTMENT. THE MONEY COLLECTED SHALL BE

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DEPOSITED INTO A RESTRICTED ACCOUNT IN THE GENERAL FUND TO BE

KNOWN AS THE ALTERNATIVE EDUCATION PROGRAM ACCOUNT. THE MONEY IN

THE RESTRICTED ACCOUNT IS HEREBY APPROPRIATED ON A CONTINUING

BASIS TO THE DEPARTMENT.

SECTION 9. SECTION 1902-E OF THE ACT, ADDED NOVEMBER 23,

1999 (P.L.529, NO.48), IS AMENDED BY ADDING A PARAGRAPH TO READ:

SECTION 1902-E. CONTRACTS WITH PRIVATE ALTERNATIVE EDUCATION

INSTITUTIONS.--

* * *

(5) A PRIVATE ALTERNATIVE EDUCATION INSTITUTION THAT MAKES

AN APPLICATION FOR APPROVAL TO OPERATE SHALL SUBMIT INITIAL AND

RENEWAL APPLICATIONS ALONG WITH A FEE OF ONE THOUSAND DOLLARS

($1,000) AS PRESCRIBED BY THE DEPARTMENT. THE FUNDS COLLECTED

SHALL BE DEPOSITED INTO THE ALTERNATIVE EDUCATION PROGRAM

ACCOUNT ESTABLISHED IN SECTION 1902-C(B).

SECTION 10. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:

ARTICLE XIX-G

RURAL REGIONAL COLLEGE FOR UNDERSERVED COUNTIES

SECTION 1901-G. (RESERVED).

SECTION 1901.1-G. LEGISLATIVE INTENT.

IT IS THE INTENT OF THE GENERAL ASSEMBLY TO PROVIDE FOR THE

CONTINUED EXISTENCE, OPERATION AND ADMINISTRATION OF THE RURAL

REGIONAL COLLEGE ESTABLISHED UNDER FORMER ARTICLE XVII-E.1 OF

THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL

CODE.

SECTION 1901.2-G. APPROPRIATIONS.

APPROPRIATIONS FOR THE OPERATION OF THE RURAL REGIONAL

COLLEGE SHALL HAVE PREFERRED STATUS AND BE CONSIDERED ORDINARY

EXPENSES OF STATE GOVERNMENT.

SECTION 1902-G. SCOPE OF ARTICLE.

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THIS ARTICLE PROVIDES FOR THE ESTABLISHMENT OF A RURAL

REGIONAL COLLEGE IN A MULTICOUNTY RURAL AREA THAT IS UNDERSERVED

BY COMPREHENSIVE COMMUNITY COLLEGE EDUCATION AND WORK FORCE

DEVELOPMENT.

SECTION 1903-G. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

"ANNUAL." A 12-MONTH PERIOD COTERMINOUS WITH THE

COMMONWEALTH'S FISCAL YEAR BEGINNING JULY 1 AND ENDING JUNE 30.

"BOARD OF TRUSTEES." THE BOARD OF TRUSTEES OF A RURAL

REGIONAL COLLEGE ESTABLISHED UNDER THIS ARTICLE.

"CERTIFIED PUBLIC ACCOUNTANT." A MEMBER OF THE AMERICAN

INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS WHO HAS A MINIMUM OF

FIVE YEARS' VERIFIABLE EXPERIENCE IN PERFORMING AUDITS OF

GOVERNMENT FUNDS FOR NONPROFIT ORGANIZATIONS WITH A COMPARABLE

OR LARGER ANNUAL BUDGET.

"COUNTY." ANY COUNTY IN THIS COMMONWEALTH.

"MIDDLE STATES." THE MIDDLE STATES ASSOCIATION OF COLLEGES

AND SCHOOLS.

"PARTNER INSTITUTION." ONE OR MORE MIDDLE STATES-ACCREDITED

INSTITUTIONS OF HIGHER EDUCATION.

"RURAL REGIONAL COLLEGE." A PUBLIC INSTITUTION OF HIGHER

EDUCATION WHICH IS ESTABLISHED IN A RURAL AREA AND OPERATED IN

ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AS A COLLEGE

WHICH PROVIDES UP TO A TWO-YEAR, POSTSECONDARY EDUCATION NOT TO

EXCEED THE LEVEL OF AN ASSOCIATE OF ARTS OR SCIENCES DEGREE AND

WHICH IS ACTIVE IN WORK FORCE DEVELOPMENT.

"RURAL REGIONAL COLLEGE PLAN" OR "PLAN." A PLAN FOR THE

ESTABLISHMENT AND OPERATION OF A RURAL REGIONAL COLLEGE UNDER

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THIS ARTICLE.

"SECRETARY." THE SECRETARY OF EDUCATION OF THE COMMONWEALTH

OR SUCH PERSON AS THE SECRETARY MAY DESIGNATE TO ACT ON BEHALF

OF THE SECRETARY WITH REGARD TO ANY OF THE DUTIES AND

PREROGATIVES IMPOSED BY THIS ARTICLE.

"STATE BOARD." THE STATE BOARD OF EDUCATION.

SECTION 1904-G. DESIGNATIONS BY SECRETARY.

(A) DUTIES OF SECRETARY.--

(1) THE SECRETARY SHALL DESIGNATE AN ESTABLISHED

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF

THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26

U.S.C. § 501(C)(3)), WHICH REPRESENTS A RURAL MULTICOUNTY

REGION UNDERSERVED BY A COMPREHENSIVE COMMUNITY COLLEGE

PROGRAM, INCLUDING WORK FORCE DEVELOPMENT, TO ASSIST THE

SECRETARY WITH THE DESIGNATION UNDER PARAGRAPH (2).

(2) WITHIN 30 DAYS OF THE DESIGNATION UNDER PARAGRAPH

(1), THE SECRETARY SHALL, IN CONSULTATION WITH THE NONPROFIT

ORGANIZATION, DESIGNATE CONTIGUOUS COUNTIES OR PARTS OF

CONTIGUOUS COUNTIES TO BE SERVED BY ESTABLISHMENT OF A RURAL

REGIONAL COLLEGE.

(B) CHANGES.--NO SOONER THAN JULY 10, 2018, THE SECRETARY,

WITH APPROVAL OF THE BOARD OF TRUSTEES, MAY ADD COUNTIES OR

PARTS OF COUNTIES TO BE SERVED BY THE RURAL REGIONAL COLLEGE.

SECTION 1905-G. DESIGNATION AND BOARD OF TRUSTEES.

WITHIN 60 DAYS OF THE SECRETARY'S DESIGNATION UNDER SECTION

1904-G(A)(2), A BOARD OF TRUSTEES SHALL BE APPOINTED TO

ESTABLISH A RURAL REGIONAL COLLEGE. THE BOARD OF TRUSTEES SHALL

CONSIST OF NOT FEWER THAN SEVEN MEMBERS NOR MORE THAN 15 MEMBERS

APPOINTED BY THE SECRETARY IN CONSULTATION AND JOINTLY WITH THE

NONPROFIT ORGANIZATION DESIGNATED UNDER SECTION 1904-G(A)(1).

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THE FOLLOWING SHALL APPLY TO THE BOARD OF TRUSTEES ESTABLISHED

UNDER THIS SECTION:

(1) MEMBERS OF THE BOARD OF TRUSTEES SHALL BE

REPRESENTATIVE OF THE AREA DESIGNATED UNDER SECTION 1904-G(A)

(2) AND MAY INCLUDE SCHOOL ADMINISTRATORS, COMMUNITY

EDUCATION COUNCIL OFFICIALS, BUSINESS LEADERS AND GOVERNMENT

OFFICIALS.

(2) MEMBERS OF THE BOARD OF TRUSTEES SHALL BE APPOINTED

FOR TERMS OF THREE YEARS EACH, EXCEPT THAT THOSE PERSONS

INITIALLY APPOINTED SHALL DRAW LOTS TO DETERMINE WHICH

TRUSTEES SHALL SERVE FOR A TERM OF THREE YEARS, WHICH

TRUSTEES SHALL SERVE FOR A TERM OF TWO YEARS AND WHICH

TRUSTEES SHALL SERVE FOR A TERM OF ONE YEAR. TO THE EXTENT

PRACTICABLE, FROM THOSE TRUSTEES INITIALLY APPOINTED, AN

EQUAL NUMBER SHALL DRAW LOTS TO SERVE FOR A TERM OF THREE

YEARS, FOR A TERM OF TWO YEARS AND FOR A TERM OF ONE YEAR.

THEREAFTER, ALL MEMBERS SHALL BE APPOINTED FOR TERMS OF THREE

YEARS EACH.

(3) VACANCIES ON THE BOARD SHALL BE FILLED BY THE

EXISTING BOARD. A TRUSTEE MAY SUCCEED HIMSELF, PROVIDED THAT

NO MEMBER SHALL SERVE FOR LONGER THAN 10 YEARS.

(4) THE SECRETARY SHALL CONVENE AN INITIAL MEETING OF

THE BOARD OF TRUSTEES WITHIN 30 DAYS OF THE SECRETARY'S

APPOINTMENT OF A BOARD OF TRUSTEES UNDER THIS SECTION. AFTER

THE INITIAL MEETING, THE BOARD OF TRUSTEES SHALL MEET AT SUCH

TIMES EACH YEAR AS THE BOARD OF TRUSTEES DETERMINES TO BE

NECESSARY TO SATISFY THE REQUIREMENTS OF THIS ARTICLE.

(5) THE BOARD OF TRUSTEES SHALL ADOPT STANDING OPERATING

RULES AND PROCEDURES, BYLAWS AND ARTICLES OF INCORPORATION.

(6) THE BOARD OF TRUSTEES SHALL ESTABLISH AN ADVISORY

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COUNCIL OF PRESIDENTS, OR THEIR DESIGNEES, FROM INSTITUTIONS

WITH POSTSECONDARY EDUCATION PROGRAMS WITHIN THE REGION

DESIGNATED UNDER SECTION 1904-G(A)(2). THE ADVISORY COUNCIL

SHALL MEET QUARTERLY TO DISCUSS EMPLOYER AND WORK FORCE

NEEDS, NEW EDUCATIONAL OFFERINGS AND GENERAL COORDINATION OF

SERVICE AND FACILITIES. ONE ADVISORY COUNCIL MEMBER

REPRESENTING A COMMUNITY COLLEGE AND ONE ADVISORY COUNCIL

MEMBER THAT IS A PRESIDENT OF A COLLEGE OR UNIVERSITY SHALL

SERVE AS COCHAIRMEN.

(7) THE BOARD OF TRUSTEES SHALL CHOOSE FROM AMONG ITS

MEMBERS A CHAIRMAN, VICE CHAIRMAN AND SECRETARY.

(8) A MAJORITY OF THE MEMBERS OF THE BOARD OF TRUSTEES

SHALL CONSTITUTE A QUORUM.

(9) TRUSTEES SHALL SERVE WITHOUT COMPENSATION, EXCEPT

THAT THEY SHALL BE REIMBURSED BY THE RURAL REGIONAL COLLEGE

FOR THEIR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE

PERFORMANCE OF THEIR DUTIES.

SECTION 1906-G. ESTABLISHMENT.

(A) GENERAL RULE.--NO LATER THAN JUNE 30, 2016, THE BOARD OF

TRUSTEES APPOINTED UNDER SECTION 1905-G SHALL SUBMIT TO THE

SECRETARY A PROPOSED RURAL REGIONAL COLLEGE PLAN IN SUCH FORM

AND CONTAINING SUCH INFORMATION AS THE SECRETARY MAY REQUIRE. IN

ADDITION TO OTHER INFORMATION WHICH MAY BE REQUIRED BY THE

SECRETARY, THE PLAN SHALL INCLUDE THE FOLLOWING:

(1) A DESIGNATION OF THE NAME OF THE PROPOSED RURAL

REGIONAL COLLEGE WHICH SHALL BE THE "RURAL REGIONAL COLLEGE

OF " OR " RURAL REGIONAL

COLLEGE."

(2) A SURVEY OF THE EDUCATIONAL, VOCATIONAL AND

OCCUPATIONAL NEEDS OF THE AREA AND THE MEANS BY WHICH THE

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PROPOSED RURAL REGIONAL COLLEGE WILL MEET THOSE NEEDS,

REENGAGE HIGH SCHOOL DROPOUTS TO EARN THEIR SECONDARY

CREDENTIALS AND POSTSECONDARY CREDENTIALS OR INDUSTRY

CERTIFICATION, REDUCE UNEMPLOYMENT AND IMPROVE THE EMPLOYABLE

SKILLS OF RESIDENTS OF THE AREA TO BE SERVED BY THE RURAL

REGIONAL COLLEGE.

(3) AN OPERATING AND FINANCIAL PLAN FOR THE PROPOSED

RURAL REGIONAL COLLEGE, INCLUDING A PLAN FOR THE CAPITAL

NEEDS AND EXPENSES OF THE PROPOSED RURAL REGIONAL COLLEGE.

(4) A PLAN BY WHICH THE RURAL REGIONAL COLLEGE SHALL

SEEK ACCREDITATION BY AN ACCREDITING ASSOCIATION WHICH IS

RECOGNIZED BY THE UNITED STATES DEPARTMENT OF EDUCATION.

(B) SUBMISSION OF PLAN.--WITHIN 60 DAYS OF THE SUBMISSION OF

THE RURAL REGIONAL COLLEGE PLAN TO THE SECRETARY, THE SECRETARY

SHALL ISSUE AN APPROVAL OR REJECTION OF THE PLAN. A REJECTION OF

THE PLAN SHALL BE ACCOMPANIED BY A WRITTEN STATEMENT OF THE

REASONS FOR THE REJECTION OF THE PLAN. IF THE PLAN IS REJECTED,

THE BOARD OF TRUSTEES SHALL SUBMIT A REVISED PLAN TO THE

SECRETARY WITHIN 60 DAYS OF THE PLAN'S REJECTION.

SECRETARY, THE RURAL REGIONAL COLLEGE SHALL BE CONSIDERED

ESTABLISHED.

SECTION 1907-G. POWERS AND DUTIES OF BOARD OF TRUSTEES.

(A) GENERAL RULE.--THE BOARD OF TRUSTEES APPOINTED UNDER

SECTION 1905-G SHALL ADMINISTER AND SUPERVISE THE AFFAIRS OF THE

RURAL REGIONAL COLLEGE ESTABLISHED UNDER THIS ARTICLE. SUBJECT

TO ANY OTHER LAW AND TO ANY REGULATIONS PROMULGATED BY THE STATE

BOARD PERTAINING TO RURAL REGIONAL COLLEGES, THE BOARD OF

TRUSTEES SHALL HAVE THE FOLLOWING POWERS AND DUTIES:

(1) TO ADVANCE THE MISSION OF THE RURAL REGIONAL COLLEGE

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IN SERVICE TO RESIDENTS OF THE REGION DESIGNATED UNDER

SECTION 1904-G(A)(2).

(2) TO APPOINT AND FIX THE SALARY OF A PRESIDENT OF THE

RURAL REGIONAL COLLEGE.

(3) TO APPOINT AND FIX THE SALARY OF A CHIEF FINANCIAL

OFFICER OF THE RURAL REGIONAL COLLEGE.

(4) TO HOLD, RENT, LEASE, SELL, PURCHASE AND IMPROVE

LAND, BUILDINGS, FURNISHINGS, EQUIPMENT, MATERIALS, BOOKS AND

SUPPLIES.

(5) TO ENTER INTO CONTRACTS FOR SERVICES WITH COMMUNITY

EDUCATION COUNCILS, SCHOOLS, COLLEGES OR UNIVERSITIES, OR

WITH SCHOOL DISTRICTS OR MUNICIPALITIES, AND OTHER APPLICABLE

OR APPROPRIATE AGENCIES AND ORGANIZATIONS TO EFFECTUATE THE

PURPOSES OF THIS ARTICLE.

(6) TO ACCEPT AND RECEIVE GIFTS OF REAL AND PERSONAL

PROPERTY AND FEDERAL, STATE AND LOCAL MONEY, LOANS AND GRANTS

AND TO EXPEND THE SAME.

(7) TO MAKE POLICIES PROVIDING FOR THE ADMISSION AND

EXPULSION OF STUDENTS, THE COURSES OF INSTRUCTION, THE

TUITION AND FEES TO BE CHARGED AND FOR ALL MATTERS RELATED TO

THE GOVERNMENT AND ADMINISTRATION OF THE RURAL REGIONAL

COLLEGE, PROVIDED THAT POLICIES RELATED TO ADMISSION, TUITION

AND FEES GIVE PREFERENCE TO RESIDENTS OF THE AREA DESIGNATED

BY THE SECRETARY UNDER SECTION 1904-G(A)(2).

(8) TO SUBMIT TO THE SECRETARY FOR APPROVAL PROPOSED

AMENDMENTS TO THE RURAL REGIONAL COLLEGE PLAN.

(9) TO ENTER INTO CONTRACTS FOR SERVICES TO HIGH SCHOOLS

LOCATED IN THE AREA DESIGNATED BY THE SECRETARY UNDER SECTION

1904-G TO PROVIDE SERVICES, INCLUDING AREA VOCATIONAL-

TECHNICAL EDUCATION SERVICES.

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(10) TO APPROVE AN ANNUAL BUDGET TO BE SUBMITTED TO THE

SECRETARY FOR FUNDING.

(11) TO EXERCISE SUCH OTHER POWERS AND PERFORM SUCH

OTHER DUTIES AS ARE NECESSARY TO EFFECTUATE THE PURPOSES OF

THIS ARTICLE.

(B) DUTIES OF BOARD.--THE BOARD OF TRUSTEES SHALL ENTER INTO

CONTRACTS, HOLD PROPERTY AND TAKE OTHER ACTIONS IN THE NAME OF

THE RURAL REGIONAL COLLEGE.

(1) THE BOARD OF TRUSTEES SHALL SELECT INITIALLY A

PARTNER INSTITUTION TO DEVELOP AND OFFER ACCREDITED COURSES

AND PROGRAMS OF STUDY AT THE APPROVED SITES OF OPERATION.

(2) THE PARTNER INSTITUTION SHALL SELECT PROGRAMS ONLY

WITH APPROVAL OF THE BOARD OF TRUSTEES AND CONSISTENT WITH

THE PARTNER INSTITUTION'S ACCREDITATION AND SHALL BE

RESPONSIBLE FOR STAFFING AND EVALUATION AND PROVISION OF

OTHER SUPPORT SERVICES AS MAY BE REQUIRED FOR STUDENTS.

(3) THE BOARD OF TRUSTEES MAY CONTRACT WITH OTHER

COLLEGES TO PROVIDE CURRICULA NOT AVAILABLE THROUGH THE

PARTNER INSTITUTION.

(4) AS THE RURAL REGIONAL COLLEGE IS ABLE TO OPERATE ON

ITS OWN, A TRANSITION PLAN AND BUDGET SHALL BE INCLUDED IN

THE CONTRACT BETWEEN THE RURAL REGIONAL COLLEGE AND THE

PARTNER INSTITUTION TO EFFICIENTLY EXPEDITE THE TRANSITION.

(5) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO

PRECLUDE THE BOARD OF TRUSTEES FROM CONTRACTING FOR SPECIFIC

SERVICES OR PROGRAMS FOLLOWING THE TRANSITION FROM THE

INITIAL PARTNER INSTITUTION.

SECTION 1908-G. OFFICERS OF RURAL REGIONAL COLLEGE.

(A) PRESIDENT.--THE PRESIDENT SHALL BE THE CHIEF EXECUTIVE

20150HB0762PN1999 - 20 -

AND ADMINISTRATIVE OFFICER OF THE RURAL REGIONAL COLLEGE AND

SHALL PERFORM ALL DUTIES WHICH THE BOARD OF TRUSTEES MAY

PRESCRIBE. THE PRESIDENT SHALL HAVE THE RIGHT TO ATTEND MEETINGS

OF THE BOARD OF TRUSTEES AND TO BE HEARD ON ALL MATTERS BEFORE

IT BUT SHALL HAVE NO RIGHT TO VOTE ON ANY MATTER.

(B) CHIEF FINANCIAL OFFICER.--THE CHIEF FINANCIAL OFFICER OF

THE RURAL REGIONAL COLLEGE SHALL GIVE A PROPER BOND IN SUCH

AMOUNT AND WITH SUCH CORPORATE SURETY AS IS APPROVED BY THE

BOARD OF TRUSTEES. THE CHIEF FINANCIAL OFFICER SHALL FILE THE

BOND WITH THE BOARD OF TRUSTEES. THE ACCOUNT OF THE CHIEF

FINANCIAL OFFICER SHALL BE AUDITED ANNUALLY BY A CERTIFIED

PUBLIC ACCOUNTANT OR OTHER QUALIFIED PUBLIC ACCOUNTANT SELECTED

BY THE BOARD OF TRUSTEES.

SECTION 1909-G. STUDENTS.

ANY INDIVIDUAL MAY APPLY FOR ADMISSION TO THE RURAL REGIONAL

COLLEGE ESTABLISHED UNDER THIS ARTICLE, PROVIDED THAT PREFERENCE

IN ADMISSIONS, TUITION AND FEES MAY BE GIVEN TO RESIDENTS OF THE

MULTICOUNTY AREA DESIGNATED BY THE SECRETARY UNDER SECTION 1904-

G(A)(2). IN CONSIDERING APPLICANTS FOR ADMISSION, THE RURAL

REGIONAL COLLEGE SHALL NOT DISCRIMINATE ON THE BASIS OF RACE,

COLOR, GENDER, MARITAL STATUS, ETHNIC GROUP OR RELIGION.

SECTION 1910-G. TUITION.

THE TUITION AND FEES CHARGED BY THE RURAL REGIONAL COLLEGE

SHALL BE AN AMOUNT DETERMINED BY THE BOARD OF TRUSTEES, IN

ACCORDANCE WITH THE BUDGET SUBMITTED TO THE SECRETARY. THE BOARD

OF TRUSTEES SHALL ANNUALLY ESTABLISH A SEPARATE SCHEDULE OF

TUITION AND FEES FOR STUDENTS THAT RESIDE INSIDE THE REGION

DESIGNATED UNDER SECTION 1904-G(A)(2) AND STUDENTS THAT RESIDE

OUTSIDE THE REGION.

SECTION 1911-G. DISSOLUTION AND TRANSITION OF RURAL REGIONAL

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COLLEGE.

THE RURAL REGIONAL COLLEGE ESTABLISHED UNDER THIS ARTICLE MAY

NOT BE DISSOLVED WITHOUT THE APPROVAL OF THE SECRETARY. UPON

DISSOLUTION OF THE RURAL REGIONAL COLLEGE, THE COMMONWEALTH

SHALL ASSUME ALL ASSETS AND LIABILITIES OF THE RURAL REGIONAL

COLLEGE, EXCEPT THAT SUCH ASSETS THAT ARE THE PROPERTY OF ANY

PARTNER INSTITUTION THAT MAY BE OPERATING FOR AND WITHIN THE

RURAL REGIONAL COLLEGE SHALL REMAIN THE PROPERTY OF THE PARTNER

INSTITUTION.

SECTION 1912-G. DEGREES.

THE RURAL REGIONAL COLLEGE ESTABLISHED UNDER THIS ARTICLE MAY

AWARD ANY TYPE OF DIPLOMA, TECHNICAL OR CAREER TRAINING

CERTIFICATE OR ASSOCIATE DEGREES IN THE ARTS, SCIENCES,

TECHNOLOGIES OR GENERAL EDUCATION UPON SUCCESSFUL COMPLETION OF

PROGRAMS AUTHORIZED BY THE BOARD OF TRUSTEES. AS LONG AS THE

PARTNER INSTITUTION PROVIDES THE ACCREDITED CURRICULA AND

COURSES UNDER CONTRACT TO THE RURAL REGIONAL COLLEGE, THE

REQUIREMENTS OF THE ACCREDITING AGENCY SHALL PERTAIN TO THE

GRANTING OF SUCH AWARDS.

SECTION 1913-G. FUNDING.

THE RURAL REGIONAL COLLEGE ESTABLISHED UNDER THIS ARTICLE

SHALL BE FUNDED BY TUITION AND FEES ESTABLISHED BY THE BOARD OF

TRUSTEES AND MAY ACCEPT APPROPRIATIONS FROM THE GENERAL

ASSEMBLY, GRANTS FROM THE FEDERAL GOVERNMENT, GRANTS FROM THE

COMMONWEALTH, GRANTS FROM PRIVATE FOUNDATIONS OR ANY COMBINATION

THEREOF.

SECTION 1914-G. FINANCIAL AID.

(A) INITIAL PARTNERSHIP PERIOD.--DURING THE RURAL REGIONAL

COLLEGE'S INITIAL PARTNERSHIP WITH A PARTNER INSTITUTION, A

STUDENT ENROLLED IN THE RURAL REGIONAL COLLEGE SHALL BE ELIGIBLE

20150HB0762PN1999 - 22 -

FOR CONSIDERATION FOR A PENNSYLVANIA STATE GRANT AND OTHER

COMMONWEALTH-FUNDED FINANCIAL AID ADMINISTERED BY THE

PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY, PROVIDED THAT

THE PARTNER INSTITUTION IS AN INSTITUTION OF HIGHER EDUCATION AS

APPROVED BY AND IN ACCORDANCE WITH RULES AND REGULATIONS OF THE

PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY.

(B) POSTTRANSITION PERIOD.--UPON THE RURAL REGIONAL COLLEGE

OPERATING ON ITS OWN WITHOUT A PARTNER INSTITUTION, A STUDENT

SHALL ONLY BE ELIGIBLE FOR CONSIDERATION FOR A PENNSYLVANIA

STATE GRANT AND ANY OTHER COMMONWEALTH-FUNDED FINANCIAL AID IF

THE RURAL REGIONAL COLLEGE IS APPROVED BY THE DEPARTMENT OF

EDUCATION, IS ACCREDITED OR A RECOGNIZED CANDIDATE FOR

ACCREDITATION WITH AN ACCREDITING BODY RECOGNIZED UNDER RULES

AND REGULATIONS OF THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE

AGENCY AND SATISFIES ANY OTHER INSTITUTIONAL AND ADMINISTRATIVE

PROGRAM REQUIREMENTS AS THE PENNSYLVANIA HIGHER EDUCATION

ASSISTANCE AGENCY MAY REQUIRE.

SECTION 1915-G. REGULATIONS.

THE STATE BOARD MAY PROMULGATE REGULATIONS UNDER THE ACT OF

JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW

ACT, AS NECESSARY TO IMPLEMENT THIS ARTICLE.

SECTION 1916-G. REPORTS.

THE LEGISLATIVE BUDGET AND FINANCE COMMITTEE SHALL PREPARE

AND SUBMIT TO THE GENERAL ASSEMBLY WRITTEN INTERIM AND FINAL

REPORTS EVALUATING THE OPERATION OF THIS ARTICLE. THE INTERIM

REPORT SHALL BE SUBMITTED BY JUNE 30, 2018, AND THE FINAL REPORT

SHALL BE SUBMITTED BY JUNE 30, 2022. EACH REPORT SHALL INCLUDE,

BUT MAY NOT BE LIMITED TO, THE FOLLOWING:

(1) A REVIEW OF THE SUCCESS OF THE RURAL REGIONAL

COLLEGE ESTABLISHED UNDER THIS ARTICLE IN SATISFYING THE

20150HB0762PN1999 - 23 -

GOALS SET FORTH IN THE RURAL REGIONAL COLLEGE PLAN APPROVED

BY THE SECRETARY AND IN SATISFYING THE NEEDS OF THE

MULTICOUNTY AREA THE RURAL REGIONAL COLLEGE WAS ESTABLISHED

TO SERVE.

(2) DEMOGRAPHIC AND PROGRAM DATA, INCLUDING THE

FOLLOWING:

(I) NUMBERS OF FULL-TIME AND PART-TIME FACULTY AND

STUDENT ENROLLMENTS, IN TOTAL AND WITHIN CURRICULAR

AREAS.

(II) DUAL ENROLLMENT PARTICIPATION.

(III) CREDIT HOURS TAUGHT BY FACULTY.

(IV) DISTANCE LEARNING COURSES OFFERED.

(V) ARTICULATION AGREEMENTS WITH HIGHER EDUCATION

INSTITUTIONS.

(VI) LISTS OF COURSES WITH FEWER THAN 20 STUDENTS.

(VII) LISTS OF COURSES WITH MORE THAN 50 STUDENTS.

WHERE AVAILABLE, STUDENT DATA SHALL BE DISAGGREGATED BY

CATEGORIES, INCLUDING GENDER, RACE AND AGE.

(3) STUDENT PROGRESS AND ACHIEVEMENT MEASURES, INCLUDING

THE FOLLOWING:

(I) RETENTION RATES RELATED TO STUDENT GOALS.

(II) GRADUATION AND COMPLETION RATES AFTER TWO,

THREE AND FOUR YEARS.

(III) PASSING RATES ON CERTIFICATION AND LICENSURE

EXAMINATIONS.

(IV) NUMBER OF STUDENTS EMPLOYED WITHIN ONE YEAR OF

PROGRAM COMPLETION.

(V) PLACEMENT INTO ADDITIONAL EDUCATION OR

EMPLOYMENT IN THE STUDENT'S FIELD OF STUDY.

WHERE AVAILABLE, DATA SHALL BE DISAGGREGATED BY CATEGORIES,

20150HB0762PN1999 - 24 -

INCLUDING GENDER, RACE AND AGE.

(4) ECONOMIC AND WORK FORCE DEVELOPMENT MEASURES,

INCLUDING:

(I) EMPLOYER SATISFACTION.

(II) CUSTOMIZED JOB TRAINING OFFERINGS.

(III) EMPLOYMENT STATUS.

(IV) NUMBERS OF BUSINESSES AND ORGANIZATIONS SERVED.

(5) RECOMMENDATIONS FOR FUTURE LEGISLATION.

SECTION 1917-G. TRANSFERS OF CREDITS.

FOR PURPOSES OF FACILITATING THE TRANSFER OF CREDITS ATTAINED

BY STUDENTS OF THE RURAL REGIONAL COLLEGE, THE RURAL REGIONAL

COLLEGE SHALL BE CONSIDERED A PUBLIC INSTITUTION OF HIGHER

EDUCATION AS DEFINED IN SECTION 2001-C AND, UPON THE RURAL

REGIONAL COLLEGE BEING ABLE TO OPERATE ON ITS OWN, SHALL BE

REQUIRED TO FULFILL ALL THE DUTIES AND OBTAIN FOR ITS STUDENTS

ALL THE BENEFITS OF ARTICLE XX-C WITHIN TWO YEARS OF OPERATION

OF THE ESTABLISHED RURAL REGIONAL COLLEGE.

SECTION 11. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 2320. STATE AID FOR FISCAL YEAR 2015-2016.

NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,

EACH LIBRARY SUBJECT TO 24 PA.C.S. CH. 93 (RELATING TO PUBLIC

LIBRARY CODE), SHALL BE ELIGIBLE FOR STATE AID FOR FISCAL YEAR

2015-2016, AS FOLLOWS:

(1) FUNDS APPROPRIATED FOR LIBRARIES SHALL BE

DISTRIBUTED TO EACH LIBRARY UNDER THE FOLLOWING FORMULA:

(I) DIVIDE THE AMOUNT OF FUNDING THAT THE LIBRARY

RECEIVED IN FISCAL YEAR 2014-2015 UNDER SECTION 1722-

J(18) OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176),

KNOWN AS THE FISCAL CODE, BY THE TOTAL STATE-AID SUBSIDY

FOR FISCAL YEAR 2014-2015.

20150HB0762PN1999 - 25 -

(II) MULTIPLY THE QUOTIENT UNDER SUBPARAGRAPH (I) BY

THE TOTAL STATE-AID SUBSIDY FOR FISCAL YEAR 2015-2016.

(2) FOLLOWING DISTRIBUTION OF FUNDS APPROPRIATED FOR

STATE AID TO LIBRARIES UNDER PARAGRAPH (1), ANY REMAINING

FUNDS MAY BE DISTRIBUTED AT THE DISCRETION OF THE STATE

LIBRARIAN.

(3) IF FUNDS APPROPRIATED FOR STATE AID TO LIBRARIES IN

FISCAL YEAR 2015-2016 ARE LESS THAN FUNDS APPROPRIATED IN

FISCAL YEAR 2002-2003, THE STATE LIBRARIAN MAY WAIVE

STANDARDS AS PRESCRIBED IN 24 PA.C.S. CH. 93.

(4) EACH LIBRARY SYSTEM RECEIVING STATE AID UNDER THIS

SECTION MAY DISTRIBUTE THE LOCAL LIBRARY SHARE OF THAT AID IN

A MANNER AS DETERMINED BY THE BOARD OF DIRECTORS OF THE

LIBRARY SYSTEM.

(5) IN THE CASE OF A LIBRARY SYSTEM THAT CONTAINS A

LIBRARY OPERATING IN A CITY OF THE SECOND CLASS, CHANGES TO

THE DISTRIBUTION OF STATE AID TO THE LIBRARY SHALL BE MADE BY

MUTUAL AGREEMENT BETWEEN THE LIBRARY AND THE LIBRARY SYSTEM.

(6) IN THE EVENT OF A CHANGE IN DISTRICT LIBRARY CENTER

POPULATION PRIOR TO THE EFFECTIVE DATE OF THIS SECTION AS A

RESULT OF:

(I) A CITY, BOROUGH, TOWN, TOWNSHIP, SCHOOL DISTRICT

OR COUNTY MOVING FROM ONE LIBRARY CENTER TO ANOTHER; OR

(II) A TRANSFER OF DISTRICT LIBRARY CENTER STATUS TO

A COUNTY LIBRARY SYSTEM.

FUNDING OF DISTRICT LIBRARY CENTER AID SHALL BE PAID BASED ON

THE POPULATION OF THE NEWLY ESTABLISHED OR RECONFIGURED

DISTRICT LIBRARY CENTER.

(7) IN THE EVENT OF A CHANGE IN DIRECT SERVICE AREA FROM

ONE LIBRARY TO ANOTHER, THE STATE LIBRARIAN, UPON AGREEMENT

20150HB0762PN1999 - 26 -

OF THE AFFECTED LIBRARIES, MAY REDISTRIBUTE THE LOCAL LIBRARY

SHARE OF AID TO THE LIBRARY CURRENTLY SERVICING THE AREA.

SECTION 12. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 2502.53. STUDENT-WEIGHTED BASIC EDUCATION FUNDING.--

(A) FOR THE 2014-2015 SCHOOL YEAR AND EACH SCHOOL YEAR

THEREAFTER, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT A

BASIC EDUCATION FUNDING ALLOCATION WHICH SHALL CONSIST OF THE

FOLLOWING:

(1) AN AMOUNT EQUAL TO THE SCHOOL DISTRICT'S BASIC EDUCATION

FUNDING ALLOCATION FOR THE 2013-2014 SCHOOL YEAR PURSUANT TO

SECTION 1722-J(16) OF THE ACT OF APRIL 9, 1929 (P.L.343,

NO.176), KNOWN AS "THE FISCAL CODE."

(2) AN AMOUNT EQUAL TO THE SCHOOL DISTRICT'S BASIC EDUCATION

FORMULA ENHANCEMENT ALLOCATION PAID DURING THE 2014-2015 SCHOOL

YEAR.

(3) A STUDENT-BASED ALLOCATION TO BE CALCULATED AS FOLLOWS:

(I) MULTIPLY THE SUM OF THE SCHOOL DISTRICT'S WEIGHTED BASIC

EDUCATION STUDENT HEAD COUNT AND THE SCHOOL DISTRICT'S

SPARSITY/SIZE ADJUSTMENT BY THE SCHOOL DISTRICT'S MEDIAN

HOUSEHOLD INCOME INDEX AND LOCAL EFFORT CAPACITY INDEX.

(II) MULTIPLY THE PRODUCT IN SUBPARAGRAPH (I) BY THE

DIFFERENCE BETWEEN THE AMOUNT APPROPRIATED FOR THE ALLOCATION OF

BASIC EDUCATION FUNDING AND THE SUM OF THE AMOUNTS ALLOCATED IN

PARAGRAPHS (1) AND (2) FOR ALL SCHOOL DISTRICTS.

(III) DIVIDE THE PRODUCT IN SUBPARAGRAPH (II) BY THE SUM OF

THE PRODUCTS IN SUBPARAGRAPH (I) FOR ALL SCHOOL DISTRICTS.

(B) FOR THE PURPOSES OF THIS SECTION:

(1) THE WEIGHTED BASIC EDUCATION STUDENT HEADCOUNT SHALL BE

CALCULATED FOR EACH SCHOOL DISTRICT AS FOLLOWS:

(I) MULTIPLY THE SCHOOL DISTRICT'S AVERAGE DAILY MEMBERSHIP

20150HB0762PN1999 - 27 -

BY ONE (1).

(II) MULTIPLY THE SCHOOL DISTRICT'S NUMBER OF STUDENTS

LIVING IN ACUTE POVERTY BY SIX-TENTHS (0.6).

(III) MULTIPLY THE SCHOOL DISTRICT'S NUMBER OF STUDENTS

LIVING IN POVERTY BY THREE-TENTHS (0.3).

(IV) MULTIPLY THE SCHOOL DISTRICT'S NUMBER OF STUDENTS

LIVING IN CONCENTRATED POVERTY BY THREE-TENTHS (0.3).

(V) MULTIPLY THE SCHOOL DISTRICT'S NUMBER OF LIMITED ENGLISH

PROFICIENT STUDENTS BY SIX-TENTHS (0.6).

(VI) MULTIPLY THE CHARTER AND CYBER CHARTER SCHOOL AVERAGE

DAILY MEMBERSHIP APPLICABLE TO THE SCHOOL DISTRICT BY TWO-TENTHS

(0.2).

(VII) ADD THE PRODUCTS IN SUBPARAGRAPHS (I), (II), (III),

(IV), (V) AND (VI).

(2) THE SPARSITY RATIO SHALL BE CALCULATED FOR EACH SCHOOL

DISTRICT AS FOLLOWS:

(I) DIVIDE THE SCHOOL DISTRICT'S AVERAGE DAILY MEMBERSHIP

PER SQUARE MILE BY THE STATE'S AVERAGE DAILY MEMBERSHIP PER

SQUARE MILE.

(II) MULTIPLY THE QUOTIENT IN SUBPARAGRAPH (I) BY FIVE-

TENTHS (0.5).

(III) SUBTRACT THE PRODUCT IN SUBPARAGRAPH (II) FROM ONE

(1).

(3) THE SIZE RATIO FOR EACH SCHOOL DISTRICT SHALL BE

CALCULATED AS FOLLOWS:

(I) DIVIDE THE SCHOOL DISTRICT'S AVERAGE DAILY MEMBERSHIP BY

THE AVERAGE OF THE AVERAGE DAILY MEMBERSHIP OF ALL SCHOOL

DISTRICTS.

(II) MULTIPLY THE QUOTIENT IN SUBPARAGRAPH (I) BY FIVE-

TENTHS (0.5).

20150HB0762PN1999 - 28 -

(III) SUBTRACT THE PRODUCT IN SUBPARAGRAPH (II) FROM ONE

(1).

(4) THE SPARSITY/SIZE RATIO FOR EACH SCHOOL DISTRICT SHALL

BE CALCULATED BY ADDING FORTY PERCENT (40%) OF THE SCHOOL

DISTRICT'S SPARSITY RATIO AND SIXTY PERCENT (60%) OF THE SCHOOL

DISTRICT'S SIZE RATIO.

(5) THE SPARSITY/SIZE ADJUSTMENT FOR EACH SCHOOL DISTRICT

SHALL BE CALCULATED AS FOLLOWS:

(I) FOR A SCHOOL DISTRICT WITH A SPARSITY/SIZE RATIO LESS

THAN OR EQUAL TO THE SPARSITY/SIZE RATIO THAT REPRESENTS THE

SEVENTIETH PERCENTILE OF THE SPARSITY/SIZE RATIO FOR ALL SCHOOL

DISTRICTS, THE SCHOOL DISTRICT'S SPARSITY/SIZE ADJUSTMENT SHALL

BE ZERO.

(II) FOR A SCHOOL DISTRICT WITH A SPARSITY/SIZE RATIO

GREATER THAN THE SPARSITY/SIZE RATIO THAT REPRESENTS THE

SEVENTIETH PERCENTILE OF THE SPARSITY/SIZE RATIO FOR ALL SCHOOL

DISTRICTS, THE SCHOOL DISTRICT'S SPARSITY/SIZE ADJUSTMENT SHALL

BE CALCULATED AS FOLLOWS:

(A) DIVIDE THE SCHOOL DISTRICT'S SPARSITY/SIZE RATIO BY THE

SPARSITY/SIZE RATIO THAT REPRESENTS THE SEVENTIETH PERCENTILE OF

THE SPARSITY/SIZE RATIO FOR ALL SCHOOL DISTRICTS.

(B) SUBTRACT ONE (1) FROM THE QUOTIENT IN CLAUSE (A).

(0.7).

(D) MULTIPLY THE PRODUCT IN CLAUSE (C) BY THE SCHOOL

DISTRICT'S WEIGHTED BASIC EDUCATION STUDENT HEADCOUNT.

(6) THE NUMBER OF STUDENTS LIVING IN ACUTE POVERTY FOR EACH

SCHOOL DISTRICT SHALL BE CALCULATED BY MULTIPLYING THE SCHOOL

DISTRICT'S PERCENTAGE OF STUDENTS WHO ARE SIX (6) TO SEVENTEEN

(17) YEARS OF AGE ACCORDING TO THE UNITED STATES CENSUS BUREAU'S

20150HB0762PN1999 - 29 -

RATIO OF INCOME TO POVERTY LESS THAN OR EQUAL TO NINETY-NINE

PERCENT (99%) OF THE FEDERAL POVERTY GUIDELINES BY THE SCHOOL

DISTRICT'S AVERAGE DAILY MEMBERSHIP.

(7) THE NUMBER OF STUDENTS LIVING IN POVERTY FOR EACH SCHOOL

DISTRICT SHALL BE CALCULATED BY MULTIPLYING THE SCHOOL

DISTRICT'S PERCENTAGE OF STUDENTS WHO ARE SIX (6) TO SEVENTEEN

(17) YEARS OF AGE ACCORDING TO THE UNITED STATES CENSUS BUREAU'S

RATIO OF INCOME TO POVERTY GREATER THAN NINETY-NINE PERCENT

(99%) AND LESS THAN ONE HUNDRED AND EIGHTY-FIVE PERCENT (185%)

OF THE FEDERAL POVERTY GUIDELINES BY THE SCHOOL DISTRICT'S

AVERAGE DAILY MEMBERSHIP.

(8) THE NUMBER OF STUDENTS LIVING IN CONCENTRATED POVERTY

FOR EACH SCHOOL DISTRICT SHALL BE CALCULATED AS FOLLOWS:

(I) FOR A SCHOOL DISTRICT IN WHICH THE PERCENTAGE OF

STUDENTS LIVING IN ACUTE POVERTY IS LESS THAN THIRTY PERCENT

(30%), THE SCHOOL DISTRICT'S NUMBER OF STUDENTS LIVING IN

CONCENTRATED POVERTY SHALL BE ZERO.

(II) FOR A SCHOOL DISTRICT IN WHICH THE PERCENTAGE OF

STUDENTS LIVING IN ACUTE POVERTY IS EQUAL TO OR GREATER THAN

THIRTY PERCENT (30%), MULTIPLY THE SCHOOL DISTRICT'S PERCENTAGE

OF STUDENTS LIVING IN ACUTE POVERTY BY THE SCHOOL DISTRICT'S

AVERAGE DAILY MEMBERSHIP.

(9) THE MEDIAN HOUSEHOLD INCOME INDEX FOR EACH SCHOOL

DISTRICT SHALL BE CALCULATED AS FOLLOWS:

(I) DIVIDE THE SCHOOL DISTRICT'S MEDIAN HOUSEHOLD INCOME BY

THE MEDIAN HOUSEHOLD INCOME FOR PENNSYLVANIA AS DETERMINED BY

THE UNITED STATES CENSUS BUREAU.

(II) DIVIDE ONE (1) BY THE QUOTIENT IN SUBPARAGRAPH (I).

(10) THE LOCAL EFFORT FOR EACH SCHOOL DISTRICT SHALL BE

CALCULATED BY ADDING THE SCHOOL DISTRICT'S STATE PROPERTY TAX

20150HB0762PN1999 - 30 -

REDUCTION ALLOCATION, TAXES LEVIED AND ASSESSED BY THE LOCAL

EDUCATION AGENCY, DELINQUENCIES ON TAXES LEVIED AND ASSESSED BY

THE LOCAL EDUCATION AGENCY, REVENUE FROM LOCAL GOVERNMENT UNITS,

AND OTHER LOCAL REVENUES NOT SPECIFIED ELSEWHERE, AS DESIGNATED

IN THE DEPARTMENT OF EDUCATION'S MANUAL OF ACCOUNTING AND

FINANCIAL REPORTING FOR PENNSYLVANIA PUBLIC SCHOOLS.

(11) THE LOCAL EFFORT PER HOUSEHOLD FOR EACH SCHOOL DISTRICT

SHALL BE CALCULATED AS FOLLOWS:

(I) DIVIDE THE SCHOOL DISTRICT'S LOCAL EFFORT BY THE SCHOOL

DISTRICT'S NUMBER OF HOUSEHOLDS AS DETERMINED BY THE UNITED

STATES CENSUS BUREAU.

(II) DIVIDE THE QUOTIENT IN SUBPARAGRAPH (I) BY THE SCHOOL

DISTRICT'S MEDIAN HOUSEHOLD INCOME AS DETERMINED BY THE UNITED

STATES CENSUS BUREAU.

(III) MULTIPLY THE QUOTIENT IN SUBPARAGRAPH (II) BY ONE-

THOUSAND (1,000).

(12) THE LOCAL EFFORT FACTOR FOR EACH SCHOOL DISTRICT SHALL

BE CALCULATED BY DIVIDING THE SCHOOL DISTRICT'S LOCAL EFFORT PER

HOUSEHOLD BY THE STATE MEDIAN LOCAL EFFORT PER HOUSEHOLD FOR ALL

SCHOOL DISTRICTS.

(13) THE CURRENT EXPENDITURE PER WEIGHTED STUDENT FOR EACH

SCHOOL DISTRICT SHALL BE CALCULATED BY DIVIDING THE SCHOOL

DISTRICT'S CURRENT EXPENDITURES BY THE SUM OF THE SCHOOL

DISTRICT'S AVERAGE DAILY MEMBERSHIP, SPARSITY SIZE ADJUSTMENT

AND THE AMOUNTS DETERMINED FOR THE SCHOOL DISTRICT UNDER

SUBSECTION (B)(1)(II), (III), (IV), (V) AND (VI).

(14) THE EXCESS EXPENDITURE FACTOR FOR EACH SCHOOL DISTRICT

SHALL BE CALCULATED AS FOLLOWS:

(I) DIVIDE THE SCHOOL DISTRICT'S CURRENT EXPENDITURE PER

WEIGHTED STUDENT BY THE STATE MEDIAN CURRENT EXPENDITURE PER

20150HB0762PN1999 - 31 -

WEIGHTED STUDENT FOR ALL SCHOOL DISTRICTS.

(II) DIVIDE ONE (1) BY THE QUOTIENT IN SUBPARAGRAPH (I).

(15) THE LOCAL EFFORT INDEX FOR EACH SCHOOL DISTRICT SHALL

BE CALCULATED AS FOLLOWS:

(I) FOR A SCHOOL DISTRICT WITH AN EXCESS EXPENDITURE FACTOR

EQUAL TO OR GREATER THAN ONE (1), MULTIPLY THE SCHOOL DISTRICT'S

LOCAL EFFORT FACTOR BY ONE (1).

(II) FOR A SCHOOL DISTRICT WITH AN EXCESS EXPENDITURE FACTOR

LESS THAN ONE (1), MULTIPLY THE SCHOOL DISTRICT'S LOCAL EFFORT

FACTOR BY THE SCHOOL DISTRICT'S EXCESS EXPENDITURE FACTOR.

(16) THE LOCAL EFFORT RATE FOR EACH SCHOOL DISTRICT SHALL BE

CALCULATED BY DIVIDING THE SCHOOL DISTRICT'S LOCAL EFFORT BY THE

SUM OF THE SCHOOL DISTRICT'S MARKET VALUE AND ADJUSTED PERSONAL

INCOME.

(17) THE LOCAL CAPACITY PER WEIGHTED STUDENT FOR EACH SCHOOL

DISTRICT SHALL BE CALCULATED AS FOLLOWS:

(I) MULTIPLY THE SUM OF THE SCHOOL DISTRICT'S MARKET VALUE

AND ADJUSTED PERSONAL INCOME BY THE STATE MEDIAN LOCAL EFFORT

RATE FOR ALL SCHOOL DISTRICTS.

(II) DIVIDE THE PRODUCT IN SUBPARAGRAPH (I) BY THE SUM OF

THE SCHOOL DISTRICT'S AVERAGE DAILY MEMBERSHIP, SPARSITY SIZE

ADJUSTMENT AND THE AMOUNTS DETERMINED FOR THE SCHOOL DISTRICT

UNDER SUBSECTION (B)(1)(II), (III), (IV), (V) AND (VI).

(18) THE LOCAL CAPACITY INDEX FOR EACH SCHOOL DISTRICT SHALL

BE CALCULATED AS FOLLOWS:

(I) FOR A SCHOOL DISTRICT WITH A LOCAL CAPACITY PER WEIGHTED

STUDENT EQUAL TO OR GREATER THAN THE STATE MEDIAN LOCAL CAPACITY

PER WEIGHTED STUDENT, THE LOCAL CAPACITY INDEX FOR THE SCHOOL

DISTRICT SHALL BE ZERO.

(II) FOR A SCHOOL DISTRICT WITH A LOCAL CAPACITY PER

20150HB0762PN1999 - 32 -

WEIGHTED STUDENT LESS THAN THE STATE MEDIAN LOCAL CAPACITY PER

WEIGHTED STUDENT, THE LOCAL CAPACITY INDEX SHALL BE CALCULATED

AS FOLLOWS:

(A) DIVIDE THE SCHOOL DISTRICT'S LOCAL CAPACITY PER WEIGHTED

STUDENT BY THE STATE MEDIAN LOCAL CAPACITY PER WEIGHTED STUDENT

FOR ALL SCHOOL DISTRICTS.

(B) SUBTRACT THE QUOTIENT IN CLAUSE (A) FROM ONE (1).

(19) THE LOCAL EFFORT CAPACITY INDEX FOR EACH SCHOOL

DISTRICT SHALL BE CALCULATED BY ADDING THE SCHOOL DISTRICT'S

LOCAL EFFORT INDEX TO THE SCHOOL DISTRICT'S LOCAL CAPACITY

INDEX.

SHALL BE BASED ON THE MOST RECENT YEAR FOR WHICH DATA IS

AVAILABLE AS DETERMINED BY THE DEPARTMENT OF EDUCATION. THE

AVERAGE DAILY MEMBERSHIP SHALL BE THE AVERAGE OF THE THREE (3)

MOST RECENT YEARS' AVERAGE DAILY MEMBERSHIP. THE AVERAGE DAILY

MEMBERSHIP USED IN SUBSECTION (B)(6), (7), (8), (13) AND (17)

SHALL BE BASED ON THE MOST RECENT YEAR'S AVERAGE DAILY

MEMBERSHIP. INFORMATION UTILIZED FROM THE UNITED STATES CENSUS

BUREAU SHALL BE FROM THE MOST RECENT AMERICAN COMMUNITY SURVEY

5-YEAR ESTIMATE OF THE UNITED STATES CENSUS BUREAU.

(D) THE APPROPRIATION FOR BASIC EDUCATION FORMULA

ENHANCEMENT MADE DURING THE 2015-2016 FISCAL YEAR SHALL BE USED

TO MAKE ALLOCATIONS UNDER THIS SECTION.

(E) ANY UNDISTRIBUTED FUNDS SHALL BE DEPOSITED IN THE

FINANCIAL RECOVERY DISTRICT TRANSITIONAL LOAN ACCOUNT.

SECTION 13. SECTION 2509.1 OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 2509.1. PAYMENTS TO INTERMEDIATE UNITS.--* * *

(C.2) (1) FOR THE 2015-2016 SCHOOL YEAR, FIVE AND ONE-HALF

20150HB0762PN1999 - 33 -

PERCENT (5.5%) OF THE STATE SPECIAL EDUCATION APPROPRIATION

SHALL BE PAID TO INTERMEDIATE UNITS ON ACCOUNT OF SPECIAL

EDUCATION SERVICES.

(2) THIRTY-FIVE PERCENT (35%) OF THE AMOUNT UNDER PARAGRAPH

(1) SHALL BE DISTRIBUTED EQUALLY AMONG ALL INTERMEDIATE UNITS.

(3) SIXTY-FIVE PERCENT (65%) OF THE AMOUNT UNDER PARAGRAPH

(1) SHALL BE DISTRIBUTED TO EACH INTERMEDIATE UNIT IN PROPORTION

TO THE NUMBER OF AVERAGE DAILY MEMBERSHIP OF THE COMPONENT

SCHOOL DISTRICTS OF EACH INTERMEDIATE UNIT AS COMPARED TO THE

STATEWIDE TOTAL AVERAGE DAILY MEMBERSHIP.

* * *

SECTION 14. SECTION 2509.5 OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 2509.5. SPECIAL EDUCATION PAYMENTS TO SCHOOL

DISTRICTS.--* * *

(BBB) (1) DURING THE 2015-2016 SCHOOL YEAR AND EACH SCHOOL

YEAR THEREAFTER, EACH SCHOOL DISTRICT SHALL RECEIVE AN AMOUNT

EQUAL TO THE AMOUNT IT RECEIVED DURING THE 2013-2014 SCHOOL YEAR

UNDER SUBSECTION (AAA) AND A STUDENT-BASED ALLOCATION EQUAL TO

THE DIFFERENCE BETWEEN THE AMOUNT ALLOCATED FOR SPECIAL

EDUCATION PAYMENTS FOR SCHOOL DISTRICTS AND THE SUM OF THE

AMOUNTS PAID UNDER SUBSECTION (AAA) DURING THE 2013-2014 SCHOOL

YEAR TO ALL SCHOOL DISTRICTS. THE STUDENT-BASED ALLOCATION FOR

EACH SCHOOL DISTRICT SHALL BE CALCULATED AS FOLLOWS:

(I) MULTIPLY THE SUM OF THE SCHOOL DISTRICT'S WEIGHTED

SPECIAL EDUCATION STUDENT HEADCOUNT AND ITS SPARSITY/SIZE

ADJUSTMENT CALCULATED UNDER PARAGRAPH (2)(V) BY ITS MARKET

VALUE/INCOME AID RATIO AND ITS EQUALIZED MILLAGE MULTIPLIER

CALCULATED UNDER PARAGRAPH (2)(VI).

(II) MULTIPLY THE PRODUCT UNDER SUBPARAGRAPH (I) BY THE

20150HB0762PN1999 - 34 -

TOTAL AMOUNT AVAILABLE FOR THE STUDENT-BASED ALLOCATION.

(III) DIVIDE THE PRODUCT UNDER SUBPARAGRAPH (II) BY THE SUM

OF THE PRODUCTS UNDER SUBPARAGRAPH (I) FOR ALL SCHOOL DISTRICTS.

(2) FOR THE PURPOSES OF PARAGRAPH (1)(I):

(I) THE WEIGHTED SPECIAL EDUCATION STUDENT HEADCOUNT SHALL

BE CALCULATED FOR EACH SCHOOL DISTRICT AS FOLLOWS:

(A) MULTIPLY THE NUMBER OF SPECIAL EDUCATION STUDENTS WHO

RESIDE IN THE SCHOOL DISTRICT FOR WHICH THE ANNUAL EXPENDITURE

IS LESS THAN TWENTY-FIVE THOUSAND DOLLARS ($25,000), WHICH SHALL

BE KNOWN AS CATEGORY 1, BY ONE AND FIFTY-ONE HUNDREDTHS (1.51).

(B) MULTIPLY THE NUMBER OF SPECIAL EDUCATION STUDENTS WHO

RESIDE IN THE SCHOOL DISTRICT FOR WHICH THE ANNUAL EXPENDITURE

IS EQUAL TO OR GREATER THAN TWENTY-FIVE THOUSAND DOLLARS

($25,000), BUT LESS THAN FIFTY THOUSAND DOLLARS ($50,000), WHICH

SHALL BE KNOWN AS CATEGORY 2, BY THREE AND SEVENTY-SEVEN

HUNDREDTHS (3.77).

RESIDE IN THE SCHOOL DISTRICT FOR WHICH THE ANNUAL EXPENDITURE

IS EQUAL TO OR GREATER THAN FIFTY THOUSAND DOLLARS ($50,000),

WHICH SHALL BE KNOWN AS CATEGORY 3, BY SEVEN AND FORTY-SIX

HUNDREDTHS (7.46).

(D) ADD THE PRODUCTS UNDER CLAUSES (A), (B) AND (C).

(II) THE SPARSITY RATIO SHALL BE CALCULATED FOR EACH SCHOOL

DISTRICT AS FOLLOWS:

(A) DIVIDE THE SCHOOL DISTRICT'S AVERAGE DAILY MEMBERSHIP

PER SQUARE MILE BY THE COMMONWEALTH'S AVERAGE DAILY MEMBERSHIP

PER SQUARE MILE.

(B) MULTIPLY THE QUOTIENT UNDER CLAUSE (A) BY ONE-HALF

(0.5).

20150HB0762PN1999 - 35 -

(III) THE SIZE RATIO FOR EACH SCHOOL DISTRICT SHALL BE

CALCULATED AS FOLLOWS:

(A) DIVIDE THE SCHOOL DISTRICT'S AVERAGE DAILY MEMBERSHIP BY

THE AVERAGE OF THE AVERAGE DAILY MEMBERSHIP OF ALL SCHOOL

DISTRICTS.

(B) MULTIPLY THE QUOTIENT UNDER CLAUSE (A) BY ONE-HALF

(0.5).

(IV) THE SPARSITY/SIZE RATIO FOR EACH SCHOOL DISTRICT SHALL

BE CALCULATED BY ADDING FORTY PERCENT (40%) OF THE SPARSITY

RATIO AND SIXTY PERCENT (60%) OF THE SIZE RATIO.

(V) THE SPARSITY/SIZE ADJUSTMENT FOR EACH SCHOOL DISTRICT

SHALL BE CALCULATED AS FOLLOWS:

(A) FOR A SCHOOL DISTRICT WITH A SPARSITY/SIZE RATIO LESS

THAN OR EQUAL TO THE SPARSITY/SIZE RATIO THAT REPRESENTS THE

SEVENTIETH PERCENTILE OF THE SPARSITY/SIZE RATIO OF ALL SCHOOL

DISTRICTS, THE SCHOOL DISTRICT'S SPARSITY/SIZE ADJUSTMENT SHALL

BE ZERO (0).

(B) FOR A SCHOOL DISTRICT WITH A SPARSITY/SIZE RATIO GREATER

THAN THE SPARSITY/SIZE RATIO THAT REPRESENTS THE SEVENTIETH

PERCENTILE OF THE SPARSITY/SIZE RATIO OF ALL SCHOOL DISTRICTS,

THE SCHOOL DISTRICT'S SPARSITY/SIZE ADJUSTMENT SHALL BE

CALCULATED AS FOLLOWS:

(I) DIVIDE THE SCHOOL DISTRICT'S SPARSITY/SIZE RATIO BY THE

SPARSITY/SIZE RATIO THAT REPRESENTS THE SEVENTIETH PERCENTILE OF

THE SPARSITY/SIZE RATIO OF ALL SCHOOL DISTRICTS.

(II) SUBTRACT ONE (1) FROM THE QUOTIENT UNDER SUBCLAUSE (I).

(III) MULTIPLY THE REMAINDER UNDER SUBCLAUSE (II) BY ONE-

HALF (0.5).

(IV) MULTIPLY THE PRODUCT UNDER SUBCLAUSE (III) BY THE

20150HB0762PN1999 - 36 -

SCHOOL DISTRICT'S WEIGHTED SPECIAL EDUCATION STUDENT HEADCOUNT.

(VI) THE EQUALIZED MILLAGE MULTIPLIER FOR EACH SCHOOL

DISTRICT SHALL BE CALCULATED AS FOLLOWS:

(A) FOR A SCHOOL DISTRICT WITH AN EQUALIZED MILLAGE RATE

GREATER THAN OR EQUAL TO THE EQUALIZED MILLAGE RATE THAT

REPRESENTS THE SEVENTIETH PERCENTILE OF THE EQUALIZED MILLAGE

RATE OF ALL SCHOOL DISTRICTS, THE SCHOOL DISTRICT'S EQUALIZED

MILLAGE MULTIPLIER SHALL BE ONE (1).

(B) FOR A SCHOOL DISTRICT WITH AN EQUALIZED MILLAGE RATE

LESS THAN THE EQUALIZED MILLAGE RATE THAT REPRESENTS THE

SEVENTIETH PERCENTILE OF THE EQUALIZED MILLAGE RATE OF ALL

SCHOOL DISTRICTS, THE SCHOOL DISTRICT'S EQUALIZED MILLAGE

MULTIPLIER SHALL BE CALCULATED BY DIVIDING THE SCHOOL DISTRICT'S

EQUALIZED MILLAGE RATE BY THE EQUALIZED MILLAGE RATE THAT

REPRESENTS THE SEVENTIETH PERCENTILE OF THE EQUALIZED MILLAGE

RATE OF ALL SCHOOL DISTRICTS.

(VII) THE DOLLAR RANGES FOR THE ANNUAL EXPENDITURE AMOUNTS

DESIGNATED AS CATEGORY 1, CATEGORY 2 AND CATEGORY 3 UNDER

SUBPARAGRAPH (I) SHALL BE BASED ON THE INFORMATION REPORTED TO

THE DEPARTMENT UNDER SECTION 1372(8 ).

(VIII) THE DATA USED TO CALCULATE THE WEIGHTED SPECIAL

EDUCATION STUDENT HEADCOUNT UNDER SUBPARAGRAPH (I) SHALL BE

BASED ON INFORMATION FROM THE MOST RECENT YEAR FOR WHICH DATA IS

AVAILABLE AS DETERMINED BY THE DEPARTMENT OF EDUCATION. THE DATA

USED TO CALCULATE THE PROVISIONS UNDER SUBPARAGRAPHS (II),

(III), (IV), (V) AND (VI) SHALL BE AVERAGED FOR THE THREE MOST

RECENT YEARS FOR WHICH DATA IS AVAILABLE AS DETERMINED BY THE

DEPARTMENT OF EDUCATION.

SECTION 15. SECTION 2509.8(E) OF THE ACT, ADDED DECEMBER 23,

2003 (P.L.304, NO.48), IS AMENDED AND THE SECTION IS AMENDED BY

20150HB0762PN1999 - 37 -

ADDING A SUBSECTION TO READ:

SECTION 2509.8. EXTRAORDINARY SPECIAL EDUCATION PROGRAM

EXPENSES.--* * *

(E) FOR THE 2003-2004 SCHOOL YEAR [AND EACH SCHOOL YEAR

THEREAFTER] THROUGH THE 2013-2014 SCHOOL YEAR, THE DEPARTMENT OF

EDUCATION SHALL SET ASIDE ONE PERCENT (1%) OF THE SPECIAL

EDUCATION APPROPRIATION FOR EXTRAORDINARY EXPENSES INCURRED IN

PROVIDING A SPECIAL EDUCATION PROGRAM OR SERVICE TO ONE OR MORE

STUDENTS WITH DISABILITIES AS APPROVED BY THE SECRETARY OF

EDUCATION. SUCH SPECIAL EDUCATION PROGRAM OR SERVICE SHALL

INCLUDE, BUT NOT BE LIMITED TO, THE TRANSPORTATION OF STUDENTS

WITH DISABILITIES; SERVICES RELATED TO OCCUPATIONAL THERAPY,

PHYSICAL THERAPY, SPEECH AND LANGUAGE, HEARING IMPAIRMENTS OR

VISUAL IMPAIRMENTS; OR TRAINING IN ORIENTATION AND MOBILITY FOR

CHILDREN WHO ARE VISUALLY IMPAIRED OR BLIND.

(F) (I) FOR THE 2015-2016 SCHOOL YEAR AND EACH SCHOOL YEAR

THEREAFTER, AN AMOUNT EQUAL TO ONE PERCENT (1%) OF THE SPECIAL

EDUCATION APPROPRIATION SHALL BE DISTRIBUTED TO SCHOOL DISTRICTS

AND CHARTER SCHOOLS FOR EXTRAORDINARY EXPENSES INCURRED IN

PROVIDING A SPECIAL EDUCATION PROGRAM OR SERVICE TO ONE OR MORE

STUDENTS WITH DISABILITIES AS APPROVED BY THE SECRETARY OF

EDUCATION. SUCH SPECIAL EDUCATION PROGRAM OR SERVICE SHALL

INCLUDE, BUT NOT BE LIMITED TO, THE TRANSPORTATION OF STUDENTS

WITH DISABILITIES; SERVICES RELATED TO OCCUPATIONAL THERAPY,

PHYSICAL THERAPY, SPEECH AND LANGUAGE, HEARING IMPAIRMENTS OR

VISUAL IMPAIRMENTS; OR TRAINING IN ORIENTATION AND MOBILITY FOR

CHILDREN WHO ARE VISUALLY IMPAIRED OR BLIND.

(II) FUNDS DISTRIBUTED TO A SCHOOL DISTRICT OR CHARTER

SCHOOL UNDER THIS SUBSECTION SHALL BE ALLOCATED FOR STUDENTS FOR

WHICH EXPENSES ARE INCURRED ON AN ANNUAL BASIS THAT ARE EQUAL TO

20150HB0762PN1999 - 38 -

OR GREATER THAN SEVENTY-FIVE THOUSAND DOLLARS ($75,000) AS

FOLLOWS:

(A) FOR A STUDENT FOR WHOM EXPENSES ARE EQUAL TO OR GREATER

THAN SEVENTY-FIVE THOUSAND DOLLARS ($75,000) AND LESS THAN OR

EQUAL TO ONE HUNDRED THOUSAND DOLLARS ($100,000), SUBTRACT THE

STATE SUBSIDIES PAID ON BEHALF OF THE STUDENT TO THE SCHOOL

DISTRICT OR, FOR A STUDENT ENROLLED IN A CHARTER SCHOOL, THE

CHARTER SCHOOL PAYMENT RECEIVED BY THE CHARTER SCHOOL WHERE THE

CHILD IS ENROLLED FROM THE EXPENSE INCURRED FOR THE STUDENT AND

MULTIPLY THE DIFFERENCE BY THE SCHOOL DISTRICT'S OR CHARTER

SCHOOL'S MARKET VALUE/PERSONAL INCOME AID RATIO.

(B) FOR A STUDENT FOR WHICH EXPENSES ARE GREATER THAN ONE

HUNDRED THOUSAND DOLLARS ($100,000), SUBTRACT THE STATE

SUBSIDIES PAID ON BEHALF OF THE STUDENT TO THE SCHOOL DISTRICT

OR, FOR A STUDENT ENROLLED IN A CHARTER SCHOOL, THE CHARTER

SCHOOL PAYMENT RECEIVED BY THE CHARTER SCHOOL WHERE THE CHILD IS

ENROLLED FROM THE EXPENSE INCURRED FOR THE STUDENT.

(III) NO SCHOOL DISTRICT OR CHARTER SCHOOL SHALL IN ANY

SCHOOL YEAR RECEIVE AN AMOUNT UNDER SUBCLAUSE (I) WHICH EXCEEDS

THE TOTAL AMOUNT OF FUNDING AVAILABLE MULTIPLIED BY THE

PERCENTAGE EQUAL TO THE GREATEST PERCENTAGE OF THE STATE'S

SPECIAL EDUCATION STUDENTS ENROLLED IN A SCHOOL DISTRICT OR

CHARTER SCHOOL.

SECTION 16. SECTION 2509.14 OF THE ACT, ADDED APRIL 25, 2013

(P.L.12, NO.3), IS REPEALED:

[SECTION 2509.14. SPECIAL EDUCATION FUNDING FOR ELIGIBLE

STUDENTS WITH DISABILITIES IN COST CATEGORY 3.--(A) FOR THE

2014-2015 SCHOOL YEAR AND EACH SCHOOL YEAR THEREAFTER, THE

DEPARTMENT OF EDUCATION SHALL SET ASIDE AN AMOUNT NOT LESS THAN

ONE PERCENT (1%) OF THE STATE SPECIAL EDUCATION APPROPRIATION

20150HB0762PN1999 - 39 -

ABOVE THE LEVEL OF THE APPROPRIATION IN THE BASE YEAR. THE

DEPARTMENT OF EDUCATION SHALL DISTRIBUTE THIS AMOUNT AS PROVIDED

IN SUBSECTION (B).

(B) FOR THE 2014-2015 SCHOOL YEAR AND EACH SCHOOL YEAR

THEREAFTER, EACH SCHOOL DISTRICT IN THIS COMMONWEALTH SHALL

RECEIVE A PRO RATA SHARE OF THE AMOUNT SET ASIDE UNDER

SUBSECTION (A) BASED UPON THE NUMBER OF ELIGIBLE STUDENTS

RESIDING OR ENROLLED IN EACH SCHOOL DISTRICT AND CLASSIFIED IN

COST CATEGORY 3 DURING THE IMMEDIATELY PRECEDING SCHOOL YEAR.

ACCOUNTED FOR AS PART OF ACTUAL SPECIAL EDUCATION SPENDING AND

AS PART OF THE SPECIAL EDUCATION ALLOCATION RECEIVED BY A SCHOOL

DISTRICT, ACCORDING TO THE DEFINITIONS IN SECTION 2501. SCHOOL

DISTRICTS SHALL ALSO ACCOUNT FOR THE FUNDING PROVIDED UNDER THIS

SECTION AND THE RESULTING SERVICES AND SUPPORTS FOR ELIGIBLE

STUDENTS THROUGH THE SPECIAL EDUCATION PLANS, REVISIONS, UPDATES

AND AMENDMENTS REQUIRED BY SECTION 2509.15.]

SECTION 16.1. SECTION 2510.3 OF THE ACT, ADDED JULY 9, 2013

(P.L. , NO.59), IS AMENDED TO READ:

SECTION 2510.3. ASSISTANCE TO SCHOOL DISTRICTS DECLARED TO

BE IN FINANCIAL RECOVERY STATUS OR IDENTIFIED FOR FINANCIAL

WATCH STATUS.--(A) FOR THE 2013-2014 AND 2015-2016 FISCAL YEAR,

THE DEPARTMENT OF EDUCATION MAY UTILIZE UP TO FOUR MILLION FIVE

HUNDRED THOUSAND DOLLARS ($4,500,000) OF UNDISTRIBUTED FUNDS NOT

EXPENDED, ENCUMBERED OR COMMITTED FROM APPROPRIATIONS FOR GRANTS

AND SUBSIDIES MADE TO THE DEPARTMENT OF EDUCATION TO ASSIST

SCHOOL DISTRICTS DECLARED TO BE IN FINANCIAL RECOVERY STATUS

UNDER SECTION 621-A OR IDENTIFIED FOR FINANCIAL WATCH STATUS

UNDER SECTION 611-A. THE FUNDS SHALL BE TRANSFERRED BY THE

SECRETARY OF THE BUDGET TO A RESTRICTED ACCOUNT AS NECESSARY TO

20150HB0762PN1999 - 40 -

MAKE PAYMENTS UNDER THIS SECTION AND, WHEN TRANSFERRED, ARE

HEREBY APPROPRIATED TO CARRY OUT THE PROVISIONS OF THIS SECTION.

(B) FOR THE 2013-2014 FISCAL YEAR, THE AMOUNT OF SEVEN

MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000) OF

UNDISTRIBUTED FUNDS NOT EXPENDED, ENCUMBERED OR COMMITTED FROM

APPROPRIATIONS FOR GRANTS AND SUBSIDIES MADE TO THE DEPARTMENT

OF EDUCATION SHALL BE TRANSFERRED TO THE FINANCIAL RECOVERY

SCHOOL DISTRICT TRANSITIONAL LOAN ACCOUNT TO MAKE LOANS AS

PROVIDED UNDER SECTION 681-A.

SECTION 17. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 2581. REIMBURSEMENT FOR SCHOOL DISTRICTS NOT

SUBMITTING REQUIRED DOCUMENTATION.--(A) FOR A SCHOOL DISTRICT

THAT HAS RECEIVED DEPARTMENT OF EDUCATION APPROVAL FOR

COMMONWEALTH REIMBURSEMENT OF A CONSTRUCTION OR RECONSTRUCTION

PROJECT, BUT FAILS TO SUBMIT ALL ADDITIONAL PROJECT

DOCUMENTATION REQUESTED BY THE DEPARTMENT WITHIN NINETY (90)

DAYS AFTER THE DEPARTMENT'S REQUEST, THE DEPARTMENT SHALL MOVE:

(1) THE PROJECT BACK IN THE REIMBURSEMENT ORDER UNTIL SUCH

TIME AS THE SCHOOL DISTRICT COMPLIES WITH THE INFORMATION

REQUEST; AND

(2) OTHER PROJECTS UP IN THE REIMBURSEMENT ORDER.

(B) THE SECRETARY OF EDUCATION MAY GRANT WAIVERS TO SCHOOL

DISTRICTS THAT FAIL TO SUBMIT REQUESTED DOCUMENTATION UNDER

SUBSECTION (A) AND ARE IN THE PROCESS OF RECONCILING FINANCIAL

RECORDS OR ARE FACING LITIGATION OR BOND REFINANCING DELAYS.

SECTION 2582. PUBLIC SCHOOL BUILDING LEASE AND DEBT SERVICE

REIMBURSEMENTS FOR FISCAL YEAR 2015-2016.--(A) FOR THE 2015-

2016 FISCAL YEAR, THE DEPARTMENT OF EDUCATION SHALL UTILIZE

UNDISTRIBUTED FUNDS NOT EXPENDED AS OF JUNE 20, 2015, FROM

APPROPRIATIONS FOR PAYMENT ON ACCOUNT OF ANNUAL RENTAL OR

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SINKING FUND CHARGES ON SCHOOL BUILDINGS, INCLUDING CHARTER

SCHOOLS, TO MAKE REIMBURSEMENTS FOR SCHOOL BUILDING LEASES AND

DEBT SERVICE NECESSARY TO MAKE PAYMENTS IN FISCAL YEAR 2015-2016

UNDER THIS ARTICLE.

(B) THIS SECTION SHALL NOT INCLUDE REIMBURSEMENT FOR DEBT

SERVICE MEETING THE CRITERIA FOR BOND ISSUANCE UNDER ARTICLE

XXV-B.

SECTION 2599.6. READY-TO-LEARN BLOCK GRANTS.--(A) FOR THE

2015-2016 SCHOOL YEAR, THE DEPARTMENT OF EDUCATION SHALL PAY TO

EACH SCHOOL ENTITY A READY-TO-LEARN BLOCK GRANT EQUAL TO THE

AMOUNT PAID DURING THE 2014-2015 SCHOOL YEAR UNDER SECTION 1722-

J OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE

FISCAL CODE."

(B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,

THE REVENUES RECEIVED BY A SCHOOL DISTRICT UNDER THIS SECTION IN

AN AMOUNT EQUAL TO THE AMOUNT RECEIVED BY THE SCHOOL DISTRICT

UNDER SECTION 1722-J(21)(II) OF "THE FISCAL CODE" SHALL NOT BE

INCLUDED IN THE SCHOOL DISTRICT'S BUDGETED TOTAL EXPENDITURE PER

AVERAGE DAILY MEMBERSHIP USED TO CALCULATE THE AMOUNT TO BE PAID

TO A CHARTER SCHOOL UNDER SECTION 1725-A(A)(2) AND (3).

A SCHOOL DISTRICT, CHARTER SCHOOL OR CYBER CHARTER SCHOOL.

SECTION 18. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:

ARTICLE XXV-B

SCHOOL DISTRICT DEBT REFINANCING BONDS

SECTION 2501-B. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES, WHEN USED IN THIS ARTICLE,

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

"APPROVED RENTAL OR SINKING FUND CHARGES." THE TERM SHALL

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HAVE THE SAME MEANING AND SHALL CONSIST OF APPROVED REIMBURSABLE

RENTAL FOR LEASES AND APPROVED REIMBURSABLE SINKING FUND CHARGES

ON INDEBTEDNESS AS DEFINED IN SUBARTICLE (F) OF ARTICLE XXV.

"AUTHORITY." THE STATE PUBLIC SCHOOL BUILDING AUTHORITY.

"BOND." AS DEFINED IN SECTION 2(D) OF THE ACT OF JULY 5,

1947 (P.L.1217, NO.498), KNOWN AS THE STATE PUBLIC SCHOOL

BUILDING AUTHORITY ACT.

"BOND OBLIGATIONS." THE PRINCIPAL OF A BOND AND ANY PREMIUM

AND INTEREST PAYABLE ON A BOND, TOGETHER WITH ANY AMOUNT OWED

UNDER A RELATED AGREEMENT OR A RELATED RESOLUTION OF THE

AUTHORITY AUTHORIZING A BOND, TOGETHER WITH ANY ADMINISTRATIVE

EXPENSES INCURRED IN CONNECTION THEREWITH.

"CALL DATE." THE DATE ON WHICH ANY SCHOOL DISTRICT DEBT MAY

BE REDEEMED BEFORE MATURITY.

"DEPARTMENT." THE DEPARTMENT OF EDUCATION OF THE

COMMONWEALTH.

"DISTRICT DEBT" OR "DEBT." ANY OBLIGATION OF A SCHOOL

DISTRICT CONSTITUTING DEBT UNDER EITHER THIS ACT OR 53 PA.C.S.

PT. VII SUBPT. B (RELATING TO INDEBTEDNESS AND BORROWING) WHICH

IS ELIGIBLE FOR REFUNDING UNDER THE PROVISIONS OF THIS ARTICLE.

"FINANCING LAW." THE ACT OF JULY 5, 1947 (P.L.1217, NO.498),

KNOWN AS THE STATE PUBLIC SCHOOL BUILDING AUTHORITY ACT.

"PROJECT." AS DEFINED IN SECTION 2(C) OF THE ACT OF JULY 5,

1947 (P.L.1217, NO.498), KNOWN AS THE STATE PUBLIC SCHOOL

BUILDING AUTHORITY ACT.

"REIMBURSEMENT PERCENTAGE." AS IT RELATES TO DISTRICT DEBT,

AN AMOUNT DETERMINED BY MULTIPLYING THE DISTRICT'S AID RATIO BY

THE APPROVED REIMBURSABLE RENTAL OR APPROVED REIMBURSABLE

SINKING FUND CHARGE.

SECTION 2502-B. BOND ISSUANCE.

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(A) DECLARATION OF POLICY.--THE GENERAL ASSEMBLY FINDS AND

DECLARES THAT FUNDING THE PAYMENT OF REIMBURSEMENTS TO SCHOOL

DISTRICTS FOR PROJECTS, THROUGH THE AUTHORITY, IS IN THE BEST

INTEREST OF THE COMMONWEALTH.

(B) AUTHORITY.--NOTWITHSTANDING ANY OTHER LAW, THE AUTHORITY

SHALL ISSUE BONDS ON BEHALF OF SCHOOL DISTRICTS TO PROVIDE

REIMBURSEMENTS FROM THE COMMONWEALTH AS REQUIRED UNDER

SUBARTICLE (F) OF ARTICLE XXV FOR APPROVED RENTAL OR SINKING

FUND CHARGES.

(1) BONDS ISSUED UNDER THIS ARTICLE SHALL NOT BE A DEBT

OR LIABILITY OF THE COMMONWEALTH AND SHALL NOT CREATE OR

CONSTITUTE ANY INDEBTEDNESS, LIABILITY OR OBLIGATION OF THE

COMMONWEALTH.

(2) BOND OBLIGATIONS SHALL BE PAYABLE SOLELY FROM

REVENUES OR FUNDS PLEDGED OR AVAILABLE FOR REPAYMENT AS

AUTHORIZED IN THIS ARTICLE.

(3) EACH BOND MUST CONTAIN ON ITS FACE A STATEMENT THAT:

(I) THE AUTHORITY IS OBLIGATED TO PAY THE PRINCIPAL

OF OR INTEREST ON THE BONDS ONLY FROM FUNDS PLEDGED UNDER

THIS ARTICLE.

(II) NEITHER THE COMMONWEALTH NOR ANY SCHOOL

DISTRICT IS OBLIGATED TO PAY THE PRINCIPAL OF OR INTEREST

ON THE BONDS.

(III) THE FULL FAITH AND CREDIT OF THE COMMONWEALTH

OR OF ANY SCHOOL DISTRICT IS NOT PLEDGED TO THE PAYMENT

OF THE PRINCIPAL OF OR THE INTEREST ON THE BONDS.

SECTION 2503-B. CRITERIA FOR BOND ISSUANCE.

(A) DETERMINATION.--

(1) THE DEPARTMENT SHALL DIRECT EACH SCHOOL DISTRICT IN

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THE COMMONWEALTH THAT HAS NOT YET RECEIVED ITS FULL

REIMBURSEMENT FOR APPROVED RENTAL OR SINKING FUND CHARGES

UNDER SUBARTICLE (F) OF ARTICLE XXV TO REFINANCE THAT PORTION

OF THE DISTRICT DEBT THAT WAS INCURRED FOR PROJECTS THAT ARE

CURRENTLY RECEIVING REIMBURSEMENTS FOR CONSTRUCTION COSTS IN

SUCH AMOUNTS AS CALCULATED UNDER THE PROVISIONS OF THIS

ARTICLE.

(2) SCHOOL DISTRICTS THAT SUBMITTED A COMPLETED INITIAL

SCHOOL CONSTRUCTION OR RECONSTRUCTION PROJECT APPLICATION TO

THE DEPARTMENT BEFORE OCTOBER 1, 2012, AND HAVE INCURRED DEBT

TO PAY FOR AN ELIGIBLE PROJECT SHALL BE DEEMED TO BE

CURRENTLY RECEIVING REIMBURSEMENT FOR APPROVED RENTAL OR

SINKING FUND CHARGES.

(3) FOR THE PURPOSES OF REFINANCING DEBT UNDER THIS

SECTION, THE SCHOOL DISTRICTS SHALL UTILIZE THE AUTHORITY AS

THE ISSUER OF THE BONDS.

(4) THE DEPARTMENT SHALL PROVIDE TECHNICAL ASSISTANCE TO

THE AUTHORITY AND SCHOOL DISTRICTS THAT REFINANCE THEIR DEBT

UNDER THIS ARTICLE.

(B) TERMS.--

(1) A SCHOOL DISTRICT, WITH THE APPROVAL OF THE

DEPARTMENT, SHALL REFINANCE ITS DISTRICT DEBT THROUGH THE

AUTHORITY IN SUCH AMOUNTS CALCULATED AS FOLLOWS:

(I) FOR DISTRICT DEBT WHERE THE CALL DATE HAS NOT

BEEN REACHED, THE SUM OF THE PRINCIPAL AND INTEREST

PAYMENTS DUE TO THE CALL DATE MULTIPLIED BY THE SCHOOL

DISTRICT'S REIMBURSEMENT PERCENTAGE FOR THE DISTRICT DEBT

BEING REFINANCED PLUS THE SUM OF THE PRINCIPAL DUE AFTER

THE CALL DATE MULTIPLIED BY THE DISTRICT'S REIMBURSEMENT

PERCENTAGE FOR THE DISTRICT DEBT BEING REFINANCED PLUS

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THE COST INCURRED IN CONNECTION WITH THE ISSUANCE OF THE

BONDS.

(II) FOR DISTRICT DEBT WHERE THE CALL DATE HAS BEEN

REACHED, THE PRINCIPAL DUE AND INTEREST TO THE REDEMPTION

DATE MULTIPLIED BY THE DISTRICT'S REIMBURSEMENT

PERCENTAGE FOR THE DEBT BEING REFINANCED PLUS THE COST

INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS.

(2) THE MAXIMUM TERM OF THE BONDS TO BE ISSUED BY THE

AUTHORITY MAY NOT EXCEED 30 YEARS.

(3) THE TOTAL PRINCIPAL AMOUNT OF BONDS ISSUED BY THE

AUTHORITY UNDER THIS ARTICLE MAY NOT EXCEED THE AMOUNT

DETERMINED UNDER THIS ARTICLE TO REIMBURSE ELIGIBLE DISTRICT

DEBT.

SECTION 2504-B. ISSUANCE OF BONDS AND SECURITY.

(A) ISSUANCE.--BONDS ISSUED BY THE AUTHORITY UNDER THIS

ARTICLE SHALL BE SUBJECT TO THE PROVISIONS OF THE FINANCING LAW,

UNLESS OTHERWISE SPECIFIED BY THIS ARTICLE.

(B) REFINANCING.--THE AUTHORITY IS HEREBY AUTHORIZED TO

REFINANCE DISTRICT DEBT.

ENTER INTO LOAN AGREEMENTS, LETTERS OF CREDIT, PLEDGE

AGREEMENTS, CREDIT AGREEMENTS, BOND PURCHASE AGREEMENTS AND

OTHER CONTRACTS, INSTRUMENTS AND AGREEMENTS THAT:

(1) ENHANCE THE MARKETABILITY, SECURITY OR

CREDITWORTHINESS OF THE BONDS; OR

(2) EFFECTUATE THE PURPOSES OF THE FINANCING LAW AND

THIS ARTICLE.

(D) SECURITY.--THE PRINCIPAL OF OR PREMIUM, IF ANY, OR

INTEREST ON ANY BONDS ISSUED BY THE AUTHORITY UNDER THIS ARTICLE

ARE SECURED SOLELY BY A SCHOOL DISTRICT'S PLEDGE AND ASSIGNMENT

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TO THE AUTHORITY OF THE SCHOOL DISTRICT'S STATE REIMBURSEMENT

ASSOCIATED WITH THE DISTRICT DEBT BEING REFINANCED WITH THE

PROCEEDS OF THE BONDS. THE SCHOOL DISTRICT'S PLEDGE OF SECURITY

AS DESCRIBED HEREIN MAY BE CONTAINED IN ONE OR MORE OF THE

AGREEMENTS AS DESCRIBED IN SECTION 2504-B(C). SUCH AGREEMENTS

SHALL COLLECTIVELY INCLUDE THE FOLLOWING PROVISIONS:

(1) A SCHOOL DISTRICT SHALL RELINQUISH ANY CLAIMS TO

FURTHER REIMBURSEMENT FOR APPROVED RENTAL OR SINKING FUND

CHARGES FOR DISTRICT DEBT REFINANCED UNDER SECTION 2503-B.

(2) THE COMMONWEALTH SHALL ACCEPT AND ACKNOWLEDGE EACH

SCHOOL DISTRICT'S PLEDGE OF ITS STATE REIMBURSEMENT FOR

APPROVED RENTAL OR SINKING FUND CHARGES. SUCH ACCEPTANCE AND

ACKNOWLEDGMENT BY THE COMMONWEALTH SHALL INCLUDE THE

FOLLOWING PROVISIONS:

(I) THE RIGHT OF THE SCHOOL DISTRICT AND ITS ASSIGNS

TO RECEIVE STATE REIMBURSEMENT FOR APPROVED RENTAL OR

SINKING FUND CHARGES IS SUBJECT TO ANNUAL APPROPRIATION

BY THE GENERAL ASSEMBLY.

(II) IF INSUFFICIENT FUNDS ARE APPROPRIATED IN A

FISCAL YEAR FOR THE PLEDGED PAYMENTS OF APPROVED RENTAL

OR SINKING FUND CHARGES DUE TO THE SCHOOL DISTRICT UNDER

ANY AGREEMENT DESCRIBED IN SUBSECTION (C), THE DEPARTMENT

SHALL IMMEDIATELY NOTIFY EACH PARTY TO SUCH AGREEMENT AND

THE AGREEMENT SHALL TERMINATE ON THE LAST DAY OF THE

FISCAL YEAR FOR WHICH SUCH APPROPRIATIONS WERE MADE.

PROVISIONS OF THIS SUBSECTION, THE COMMONWEALTH AGREES THAT IT

MAY NOT TERMINATE THE AGREEMENT OF ANY SCHOOL DISTRICT UNDER THE

PROVISIONS OF THIS SECTION IF ANY FUNDS ARE APPROPRIATED IN A

FISCAL YEAR TO ANY RECIPIENT FOR APPROVED RENTAL OR SINKING FUND

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CHARGES.

SECTION 2505-B. (RESERVED).

SECTION 2506-B. USE OF BOND PROCEEDS.

(A) ORDER.--THE PROCEEDS OF THE BONDS ISSUED BY THE

AUTHORITY SHALL BE LOANED TO EACH PARTICIPATING SCHOOL DISTRICT,

AND SHALL BE USED AS FOLLOWS:

(1) THE SCHOOL DISTRICT MAY REIMBURSE ITS GENERAL FUND

FOR PAYMENTS MADE BY SUCH SCHOOL DISTRICT IN AMOUNTS EQUAL TO

ITS APPROVED RENTAL AND SINKING FUND CHARGES NOT PREVIOUSLY

REIMBURSED BY THE COMMONWEALTH.

(2) PROCEEDS OF THE BONDS IN SUCH AMOUNT TO SATISFY THE

PAYMENT OBLIGATIONS AS STATED IN SUBPARAGRAPH (I) AND (II)

SHALL BE IRREVOCABLY ESCROWED BY EACH SCHOOL DISTRICT FOR

DISBURSEMENT AS FOLLOWS:

(I) FOR DISTRICT DEBT WHERE THE CALL DATE HAS NOT

BEEN REACHED:

(A) FOR EACH PAYMENT OF PRINCIPAL OR INTEREST

PRIOR TO THE CALL DATE, FOR PAYMENT OF AN AMOUNT

EQUAL TO THAT INSTALLMENT OF PRINCIPAL OR INTEREST

MULTIPLIED BY THE SCHOOL DISTRICT'S REIMBURSEMENT

PERCENTAGE.

(B) AT THE CALL DATE, FOR THE REDEMPTION OR

PREPAYMENT OF A PRO RATA SHARE OF EACH REMAINING

PRINCIPAL PAYMENT EQUAL TO EACH REMAINING PRINCIPAL

PAYMENT MULTIPLIED BY THE SCHOOL DISTRICT'S

REIMBURSEMENT PERCENTAGE.

(II) FOR DISTRICT DEBT WHERE THE CALL DATE HAS BEEN

REACHED:

(A) AN AMOUNT EQUAL TO THE INTEREST ACCRUED TO

THE FIRST AVAILABLE REDEMPTION DATE FOLLOWING BOND

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ISSUANCE MULTIPLIED BY THE SCHOOL DISTRICT'S

REIMBURSEMENT PERCENTAGE.

(B) FOR THE REDEMPTION OR PREPAYMENT OF A PRO

RATA SHARE OF EACH REMAINING PRINCIPAL PAYMENT EQUAL

TO EACH REMAINING PRINCIPAL PAYMENT MULTIPLIED BY THE

DISTRICT'S REIMBURSEMENT PERCENTAGE.

(3) THE PROCEEDS OF THE BONDS MAY BE USED TOWARD SUCH

OTHER PURPOSES AS AUTHORIZED BY THIS ARTICLE AND THE

FINANCING LAW.

SECTION 2507-B. COMMONWEALTH NOT TO IMPAIR BOND OBLIGATIONS.

THE COMMONWEALTH PLEDGES THAT IT SHALL NOT DO ANY OF THE

FOLLOWING:

(1) LIMIT OR ALTER THE RIGHTS AND RESPONSIBILITIES OF

THE AUTHORITY OR A SCHOOL DISTRICT UNDER THIS ARTICLE,

INCLUDING THE RESPONSIBILITY TO:

(I) PAY BOND OBLIGATIONS.

(II) COMPLY WITH ANY OTHER INSTRUMENT OR AGREEMENT

PERTAINING TO THE BONDS.

(2) ALTER OR LIMIT THE SECURITY INTEREST GRANTED IN

SECTION 2504-B(D).

(3) IMPAIR THE RIGHTS AND REMEDIES OF THE HOLDERS OF

BONDS, UNTIL ALL BONDS AT ANY TIME ISSUED, TOGETHER WITH THE

INTEREST THEREON, ARE FULLY MET AND DISCHARGED.

SECTION 2508-B. NO PERSONAL LIABILITY.

THE MEMBERS, DIRECTORS, OFFICERS AND EMPLOYEES OF A SCHOOL

DISTRICT, THE DEPARTMENT AND THE AUTHORITY SHALL NOT BE

PERSONALLY LIABLE AS A RESULT OF GOOD FAITH EXERCISE OF THE

RIGHTS AND RESPONSIBILITIES GRANTED UNDER THIS ARTICLE.

SECTION 2509-B. PROFESSIONAL SERVICES.

FOR THE PURPOSES OF MAKING OR APPROVING CONTRACTS OF EVERY

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NAME AND NATURE AND EXECUTING ALL NECESSARY INSTRUMENTS,

INCLUDING CONTRACTS FOR LEGAL AND PROFESSIONAL SERVICES, UNDER

THIS ARTICLE, THE AUTHORITY SHALL BE AN INDEPENDENT AGENCY AS

DEFINED IN SECTION 101 OF THE ACT OF OCTOBER 15, 1980 (P.N.950,

NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT. ALL

PROFESSIONAL SERVICES NECESSARY TO IMPLEMENT THIS ARTICLE SHALL

BE SELECTED OR APPROVED BY A MAJORITY VOTE OF THE MEMBERS OF THE

GOVERNING BODY OF THE AUTHORITY.

SECTION 2510-B. EXPIRATION.

THE AUTHORITY TO ISSUE BONDS UNDER THIS ARTICLE SHALL EXPIRE

JUNE 30, 2016.

SECTION 19. REPEALS ARE AS FOLLOWS:

(1) THE GENERAL ASSEMBLY FINDS THAT THE REPEAL UNDER

PARAGRAPH (2) IS NECESSARY FOR THE ADDITION OF ARTICLE XIX-G

OF THE ACT.

(2) ARTICLE XVII-E.1 OF THE ACT OF APRIL 9, 1929

(P.L.343, NO. 176), KNOWN AS THE FISCAL CODE, IS REPEALED.

SECTION 20. THE ADDITION OF ARTICLE XIX-G OF THE ACT IS A

CONTINUATION OF FORMER ARTICLE XVII-E.1 OF THE ACT OF APRIL 9,

1929 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE. THE FOLLOWING

APPLY:

(1) EXCEPT AS OTHERWISE PROVIDED IN ARTICLE XIX-G OF THE

ACT, ALL ACTIVITIES INITIATED UNDER FORMER ARTICLE XVII-E.1

OF THE FISCAL CODE SHALL CONTINUE AND REMAIN IN FULL FORCE

AND EFFECT AND MAY BE COMPLETED UNDER ARTICLE XIX-G OF THE

ACT. ORDERS, REGULATIONS, RULES AND DECISIONS WHICH WERE MADE

UNDER FORMER ARTICLE XVII-E.1 OF THE FISCAL CODE AND WHICH

ARE IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION SHALL

REMAIN IN FULL FORCE AND EFFECT UNTIL REVOKED, VACATED OR

MODIFIED UNDER ARTICLE XIX-G OF THE ACT. CONTRACTS,

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OBLIGATIONS AND COLLECTIVE BARGAINING AGREEMENTS ENTERED INTO

UNDER FORMER ARTICLE XVII-E.1 OF THE FISCAL CODE ARE NOT

AFFECTED NOR IMPAIRED BY THE REPEAL OF FORMER ARTICLE XVII-

E.1 OF THE FISCAL CODE.

(2) EXCEPT AS SET FORTH IN PARAGRAPH (3), ANY DIFFERENCE

IN LANGUAGE BETWEEN ARTICLE XIX-G OF THE ACT AND FORMER

ARTICLE XVII-E.1 OF THE FISCAL CODE IS INTENDED ONLY TO

CONFORM TO THE STYLE OF THE PUBLIC SCHOOL CODE OF 1949 AND IS

NOT INTENDED TO CHANGE OR AFFECT THE LEGISLATIVE INTENT,

JUDICIAL CONSTRUCTION OR ADMINISTRATION AND IMPLEMENTATION OF

FORMER ARTICLE XVII-E.1 OF THE FISCAL CODE.

(3) PARAGRAPH (2) DOES NOT APPLY TO THE ADDITION OF THE

FOLLOWING PROVISIONS:

(I) SECTIONS 1901.1-G AND 1901.2-G OF THE ACT.

(II) THE REFERENCE TO JUNE 30, 2016, IN SECTION

1906-G(A) OF THE ACT.

(4) ANY REFERENCE IN ANY ACT TO FORMER ARTICLE XVII-E.1

OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS THE

FISCAL CODE, SHALL BE CONSIDERED TO BE A REFERENCE TO ARTICLE

XIX-G OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS

THE PUBLIC SCHOOL CODE OF 1949.

SECTION 21. THIS ACT SHALL TAKE EFFECT JULY 1, 2015, OR

IMMEDIATELY, WHICHEVER IS LATER.

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