PRINTER'S NO. 968
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
856
Session of
2015
INTRODUCED BY PILEGGI, SMUCKER, VANCE, AUMENT AND MENSCH,
MAY 28, 2015
REFERRED TO EDUCATION, MAY 28, 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 terms and courses of study,
further providing for agreements with institutions of higher
education; in opportunities for educational excellence,
further providing for definitions and for concurrent
enrollment agreements; and extensively revising charter
school provisions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1525 of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, added
July 4, 2004 (P.L.536, No.70), is amended to read:
Section 1525. Agreements with Institutions of Higher
Education.--Notwithstanding any other provision of law to the
contrary, a school district, charter school, regional charter
school, cyber charter school or area vocational-technical school
may enter into an agreement with one or more institutions of
higher education approved to operate in this Commonwealth in
order to allow [resident] students to attend such institutions
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
of higher education while the [resident] students are enrolled
in the school district, charter school, regional charter school,
cyber charter school or area vocational-technical school. The
agreement may be structured so that high school students may
receive credits toward completion of courses at the school
district, charter school, regional charter school, cyber charter
school or area vocational-technical school and at institutions
of higher education approved to operate in this Commonwealth.
Section 2. The definitions of "concurrent student" and
"school entity" in section 1602-B of the act, added July 13,
2005 (P.L.226, No.46), are amended to read:
Section 1602-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:
* * *
"Concurrent student." A student who is enrolled in a school
district, a charter school, a regional charter school, a cyber
charter school, an area vocational-technical school, a nonpublic
school, a private school or a home education program under
section 1327.1 and who takes a concurrent course through a
concurrent enrollment program.
* * *
"School entity." A school district, a charter school, a
regional charter school, a cyber charter school or an area
vocational-technical school.
* * *
Section 3. Section 1613-B of the act is amended by adding a
subsection to read:
Section 1613-B. Concurrent enrollment agreements.
20150SB0856PN0968 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
* * *
(c) Charter schools, regional charter schools and cyber
charter schools.--Charter schools, regional charter schools and
cyber charter schools shall have the power and authority to
enter into a concurrent enrollment agreement with an institution
of higher education and appropriate credit shall be awarded to
students concurrently enrolled under the agreement.
Section 4. Section 1703-A of the act, amended June 29, 2002
(P.L.524, No.88), is amended to read:
Section 1703-A. Definitions.--As used in this article,
"Administrator" shall include an employe of a charter school
entity, including the chief administrator of a charter school
entity and any other employe, who by virtue of the employe's
position is responsible for taking official action of a
nonministerial nature with regard to contracting or procurement,
administering or monitoring grants or subsidies, managing or
regulating staff, student and school activities or any activity
where the official action has an economic impact of greater than
a de minimis nature on the interests of any person.
"Appeal board" shall mean the State Charter School Appeal
Board established by this article.
"Assessment" shall mean the Pennsylvania System of School
Assessment test, the Keystone Exam or another test established
by the State board to meet the requirements of section 2603-
B(d) (10)(i) and required under the No Child Left Behind Act of
2001 (Public Law 107-110, 115 Stat. 1425) or its successor
Federal statute.
"Associated nonprofit foundation" shall mean an entity
organized as a Pennsylvania nonprofit corporation under 15
Pa.C.S. § 5306 (relating to articles of incorporation),
20150SB0856PN0968 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
operating exclusively for the support and benefit of a
Pennsylvania charter school entity organized under this
article. The term shall include an associated nonprofit
corporation.
"At-risk student" shall mean a student at risk of educational
failure because of limited English proficiency, poverty,
community factors, truancy, academic difficulties or economic
disadvantage.
"Charter school" shall mean an independent public school
established and operated under a charter from the local board of
school directors and in which students are enrolled or attend. A
charter school must be organized as a public, nonprofit
corporation. Charters may not be granted to any for-profit
entity.
"Charter school entity" shall mean a charter school, regional
charter school or cyber charter school.
"Charter school foundation" shall mean a 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)),
that provides funding, resources or otherwise serves to support
a charter school entity, either directly or through an
affiliated entity.
"Chief administrator" shall mean an individual appointed by a
board of trustees to oversee and manage the operation of a
charter school entity. The term shall not include a professional
staff member under this article.
["Chief executive officer" shall mean an individual appointed
by the board of trustees to oversee and manage the operation of
the charter school, but who shall not be deemed a professional
staff member under this article.]
20150SB0856PN0968 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Cyber charter school" shall mean an independent public
school established and operated under a charter from the
Department of Education and in which the school uses technology,
including electronic or digital books, in order to provide a
significant portion of its curriculum and to deliver a
significant portion of instruction to its students through the
Internet or other electronic means. A cyber charter school must
be organized as a public, nonprofit corporation. A charter may
not be granted to a for-profit entity.
"Department" shall mean the Department of Education of the
Commonwealth.
"Educational management service provider" shall mean a for-
profit education management organization, nonprofit charter
management organization, school design provider, business
manager or any other partner entity with which a board of
trustees of a charter school entity contracts to provide
educational design, business services, comprehensive management
or personnel functions or to implement the charter. The term
shall not include a charter school foundation.
"Immediate family member" shall mean a parent, spouse, child,
brother or sister.
"Local board of school directors" shall mean the board of
directors [of], a school reform commission or other governing
authority of a school district or a financial recovery school
district in which a proposed or an approved charter school is
located.
"Nonrelated" shall mean an individual who is not an immediate
family member.
"Regional charter school" shall mean an independent public
school established and operated under a charter from more than
20150SB0856PN0968 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
one local board of school directors and in which students are
enrolled or attend. A regional charter school must be organized
as a public, nonprofit corporation. Charters may not be granted
to any for-profit entity.
"School district of residence" shall mean the school district
in this Commonwealth in which [the parents or guardians of a
child reside] a child resides as determined under section 1302
and 22 Pa. Code § 11.11(a)(1) (relating to entitlement of
resident children to attend public schools).
"School entity" shall mean a school district, intermediate
unit, joint school or area vocational-technical school.
"Secretary" shall mean the Secretary of Education of the
Commonwealth.
"State board" shall mean the State Board of Education of the
Commonwealth.
Section 5. Section 1715-A of the act, amended or added June
19, 1997 (P.L.225, No.22) and July 9, 2008 (P.L.846, No.61), is
amended to read:
Section 1715-A. Charter School Entity Requirements.--(a)
Charter [schools] school entities shall be required to comply
with the following provisions:
(1) Except as otherwise provided in this article, a charter
school entity is exempt from statutory requirements established
in this act, from regulations of the State board and the
standards of the secretary not specifically applicable to
charter [schools] school entities. Charter [schools] school
entities are not exempt from statutes applicable to public
schools other than this act.
(2) A charter school entity shall be accountable to the
parents, the public and the Commonwealth, with the delineation
20150SB0856PN0968 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
of that accountability reflected in the charter. Strategies for
meaningful parent and community involvement shall be developed
and implemented by each school.
(3) A charter school entity shall not unlawfully
discriminate in admissions, hiring or operation.
(4) A charter school entity shall be nonsectarian in all
operations.
(5) (i) [A] Subject to subparagraph (ii), a charter school
entity shall not provide any religious instruction, nor shall it
display religious objects and symbols on the premises of the
charter school[.] entity.
(ii) It shall not be a violation of this paragraph for a
charter school entity to utilize a sectarian facility:
(A) if the charter school entity provides for discrete and
separate entrances to buildings utilized for school purposes
only;
(B) if the religious objects and symbols within the portions
of the facility utilized by the school are covered or removed to
the extent reasonably feasible; or
(C) in which the unused portion of the facility or its
common areas contain religious symbols and objects.
(6) A charter school entity shall not advocate unlawful
behavior.
(7) A charter school or regional charter school shall only
be subject to the laws and regulations as provided for in
section 1732-A, or as otherwise provided for in this [article]
act.
(7.1) A cyber charter school shall only be subject to the
laws and regulations as provided for in section 1749-A or as
otherwise provided for in this act.
20150SB0856PN0968 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(8) A charter school entity shall participate in [the
Pennsylvania State Assessment System as provided for in 22 Pa.
Code Ch. 5 (relating to curriculum), or subsequent regulations
promulgated to replace 22 Pa. Code Ch. 5,] assessments in the
manner in which the school district in which the charter school
entity is located is scheduled to participate.
(9) A charter school entity shall provide a minimum of one
hundred eighty (180) days of instruction or nine hundred (900)
hours per year of instruction at the elementary level, or nine
hundred ninety (990) hours per year of instruction at the
secondary level. Nothing in this clause shall preclude the use
of computer and satellite linkages for delivering instruction to
students.
(10) Boards of trustees and contractors of charter [schools]
school entities shall be subject to the following statutory
requirements governing construction projects and construction-
related work:
(i) The following provisions of this act:
(A) Sections 751 and 751.1.
(B) Sections 756 and 757 insofar as they are consistent with
the act of December 20, 1967 (P.L.869, No.385), known as the
"Public Works Contractors' Bond Law of 1967."
(ii) Section 1 of the act of May 1, 1913 (P.L.155, No.104),
entitled "An act regulating the letting of certain contracts for
the erection, construction, and alteration of public buildings."
(iii) The act of August 11, 1961 (P.L.987, No.442), known as
the "Pennsylvania Prevailing Wage Act."
(iv) The "Public Works Contractors' Bond Law of 1967."
(v) The act of March 3, 1978 (P.L.6, No.3), known as the
"Steel Products Procurement Act."
20150SB0856PN0968 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(11) Trustees of a charter school entity shall be public
officials[.] for the purposes of 65 Pa.C.S. Ch. 11 (relating to
ethics standards and financial disclosure) and shall file a
statement of financial interests for the preceding calendar year
with both the State Ethics Commission and either, in the case of
a charter school or regional charter school, the local board of
school directors or, in the case of a cyber charter school, the
department, not later than May 1 of each year that members hold
the position and of the year after a member leaves the position.
All members of the board of trustees of a charter school entity
shall take the oath of office as required under section 321
before entering upon the duties of their office.
[(12) A person who serves as an administrator for a charter
school shall not receive compensation from another charter
school or from a company that provides management or other
services to another charter school. The term "administrator"
shall include the chief executive officer of a charter school
and all other employes of a charter school who by virtue of
their positions exercise management or operational oversight
responsibilities. A person who serves as an administrator for a
charter school shall be a public official under 65 Pa.C.S. Ch.
11 (relating to ethics standards and financial disclosure). A
violation of this clause shall constitute a violation of 65
Pa.C.S. § 1103(a) (relating to restricted activities), and the
violator shall be subject to the penalties imposed under the
jurisdiction of the State Ethics Commission.]
(b) An individual who serves as an administrator for a
charter school entity shall be a public employe for the purposes
of 65 Pa.C.S. Ch. 11 and shall file a statement of financial
interests for the preceding calendar year with the board of
20150SB0856PN0968 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
trustees not later than May 1 of each year that the person holds
the position and of the year after the person leaves the
position.
(c) (1) No individual who serves as an administrator for a
charter school entity may receive compensation from another
charter school entity or from an educational management service
provider, unless:
(i) The administrator has submitted a sworn statement to the
board of trustees of the charter school entity and the sworn
statement details the work for the other entity and includes the
projected number of hours, rate of compensation and projected
duration.
(ii) The board of trustees of the charter school entity has
reviewed the sworn statement under subclause (i) and agreed, by
resolution, to grant permission to the administrator.
(2) A copy of the sworn statement under clause (1)(i) and
the resolution by the board of trustees of the charter school
entity granting the permission under clause (1)(ii) shall be
provided to and kept on file with the charter school entity and
the board of local school directors or, in the case of a cyber
charter school, the department.
(3) No administrator of a charter school entity or immediate
family member may serve as a voting member of the board of
trustees of the charter school entity that employs the
administrator.
(4) (i) No administrator of a charter school entity may
participate in the selection, award or administration of a
contract if the person has a conflict of interest as that term
is defined in 65 Pa.C.S. § 1102 (relating to definitions).
(ii) An administrator who knowingly violates this clause
20150SB0856PN0968 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
commits a violation of 65 Pa.C.S. § 1103(a) (relating to
restricted activities) and shall be subject to the penalties
imposed under the jurisdiction of the State Ethics Commission.
(iii) Any contract made in violation of this clause shall be
voidable by the board of trustees of the charter school entity.
(5) An administrator shall be immediately dismissed upon
conviction for an offense graded as a felony, an infamous crime,
an offense pertaining to fraud, theft or mismanagement of public
funds or any crime involving moral turpitude.
Section 6. Section 1716-A(c) of the act, added June 19, 1997
(P.L.225, No.22), is amended and the section is amended by
adding subsections to read:
Section 1716-A. Powers of Board of Trustees.--* * *
(b.1) (1) For a charter school or regional charter school
chartered after the effective date of this subsection, an
individual shall be prohibited from serving as a voting member
of the board of trustees of the charter school or regional
charter school if the individual or an immediate family member
receives compensation from or is employed by or is a member of
the local board of school directors who participated in the
initial review, approval, oversight, evaluation or renewal
process of the charter school or regional charter school
chartered by that board.
(2) An employe of the school district that chartered the
charter school or the regional charter school may serve as a
member of the board of trustees of the charter school or
regional charter school without voting privileges.
(b.2) (1) No member of the board of trustees of a charter
school entity may participate in the selection, award or
administration of any contract if the member has a conflict of
20150SB0856PN0968 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
interest as that term is defined in 65 Pa.C.S. § 1102 (relating
to definitions).
(2) Any member of the board of trustees of a charter school
entity who in the discharge of the person's official duties
would be required to vote on a matter that would result in a
conflict of interest shall abstain from voting and follow the
procedures required under 65 Pa.C.S. § 1103(j) (relating to
restricted activities).
(3) A member of the board of trustees of a charter school
entity who knowingly violates this subsection commits a
violation of 65 Pa.C.S. § 1103(a) and shall be subject to the
penalties imposed under the jurisdiction of the State Ethics
Commission.
(4) A contract made in violation of this subsection shall be
voidable by a court of competent jurisdiction, if the suit is
commenced within ninety (90) days of the making of the contract.
(5) No member of the board of trustees of a charter school
entity shall be compensated for duties on the board of trustees.
(b.3) A member of the board of trustees of a charter school
entity shall be automatically disqualified and immediately
removed from the board upon conviction for an offense graded as
a felony, an infamous crime, an offense pertaining to fraud,
theft or mismanagement of public funds, any offense pertaining
to his official capacity as a board member or any crime
involving moral turpitude.
(c) The board of trustees shall comply with [the act of July
3, 1986 (P.L.388, No.84), known as the "Sunshine Act."] 65
Pa.C.S. Ch. 7 (relating to open meetings).
(d) (1) (i) The board of trustees of a charter school
entity shall consist of a minimum of five (5) nonrelated voting
20150SB0856PN0968 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
members.
(ii) If a charter school entity has fewer than five (5)
nonrelated voting members serving on its board on the effective
date of this subsection, the charter school entity shall, within
sixty (60) days, appoint additional members to the board to meet
the minimum requirements of this section.
(2) Within one (1) year of the effective date of this
subsection, at least one (1) member of the board of trustees of
a charter school entity shall be a parent of a child currently
attending the charter school entity. The board member shall be
eligible to serve only so long as the child attends the charter
school entity.
(e) (1) A majority of the voting members of the board of
trustees shall constitute a quorum. If less than a majority is
present at any meeting, no business may be transacted at the
meeting.
(2) The affirmative vote of a majority of all the voting
members of the board of trustees, duly recorded, shall be
required in order to take action on the subjects enumerated
under subsection (a).
Section 7. The act is amended by adding sections to read:
Section 1716.1-A. (Reserved).
Section 1716.2-A. Fund Balance Limits.--Fund balance limits
shall be as follows:
(1) For the 2015-2016 school year and each school year
thereafter, a charter school entity shall not accumulate an
unassigned fund balance greater than the charter school entity
unassigned fund balance limit, which will be determined as
follows:
Maximum Unassigned Fund
20150SB0856PN0968 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Charter School Entity
Total Budgeted Expenditures
Balance as Percentage of
Total Budgeted
Expenditures
Less than or equal to $11,999,999 12%
Between $12,000,000 and $12,999,999 11.5%
Between $13,000,000 and $13,999,999 11%
Between $14,000,000 and $14,999,999 10.5%
Between $15,000,000 and $15,999,999 10%
Between $16,000,000 and $16,999,999 9.5%
Between $17,000,000 and $17,999,999 9%
Between $18,000,000 and $18,999,999 8.5%
Greater Than or Equal to $19,000,000 8%
(2) Any unassigned fund balance in place on June 30, 2017 ,
that exceeds the charter school entity unassigned fund balance
limit shall be refunded on a pro rata basis within ninety (90)
days to all school districts that paid tuition to the charter
school entity on behalf of students enrolled in the 2015-2016
and 2016-2017 school years.
(3) For the 2017-2018 school year and each school year
thereafter, any unassigned fund balance in place on June 30 of
that school year in excess of the charter school entity
unassigned fund balance limit shall be refunded on a pro rata
basis within ninety (90) days to all school districts that paid
tuition to the charter school entity in the prior school year.
(4) By September 30, 2017 , and August 15 of each year
thereafter, each charter school entity shall provide the
department and all school districts that paid tuition to the
charter school entity in the prior school year with information
certifying compliance with this section. The information shall
be provided in a form and manner prescribed by the department
20150SB0856PN0968 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
and shall include information on the charter school entity's
estimated ending unassigned fund balance expressed as a dollar
amount and as a percentage of the charter school entity's total
budgeted expenditures for that school year.
(5) Unassigned funds of the charter school entity in excess
of the unassigned fund balance limit may not be used to pay
bonuses to any administrator, board of trustees member, employe,
staff member or contractor and may not be transferred to a
charter school foundation. If a charter school entity uses funds
in excess of the unassigned fund balance limit to pay bonuses to
any administrator, board of trustees member, employe, staff
member or contractor or transfers such funds to a charter school
foundation, the value of the bonus payment or fund transfer
shall be refunded by the charter school entity on a pro rata
basis to all school districts that paid tuition to the charter
school entity on behalf of students enrolled in the charter
school entity in the immediately preceding school year.
(6) As used in this section, "unassigned fund balance" shall
mean that portion of the fund balance of a charter school entity
that provides funding or resources or otherwise serves to
support the charter school entity that is:
(i) available for expenditure or not legally or otherwise
segregated for a specific or tentative future use; and
(ii) held in the general fund accounts of the charter school
entity.
Section 8. Section 1717-A(c), (d), (e), (f) and (i) of the
act, added June 19, 1997 (P.L.225, No.22), are amended and the
section is amended by adding subsections to read:
Section 1717-A. Establishment of Charter School.--* * *
(c) An application to establish a charter school shall be
20150SB0856PN0968 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
submitted to the local board of school directors of the district
where the charter school will be located by [November 15]
October 1 of the school year preceding the school year in which
the charter school will be established except that for a charter
school beginning in the 1997-1998 school year, an application
must be received by July 15, 1997. In the 1997-1998 school year
only, applications shall be limited to recipients of fiscal year
1996-1997 Department of Education charter school planning
grants.
(d) Within forty-five (45) days of receipt of an
application, the local board of school directors in which the
proposed charter school is to be located shall hold at least one
public hearing on the provisions of the charter application,
under [the act of July 3, 1986 (P.L.388, No.84), known as the
"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
At least forty-five (45) days must transpire between the first
public hearing and the final decision of the board on the
charter application except that for a charter school beginning
in the 1997-1998 school year, only thirty (30) days must
transpire between the first public hearing and the final
decision of the board.
(e) (1) Not later than seventy-five (75) days after the
first public hearing on the application, the local board of
school directors shall grant or deny the application. For a
charter school beginning in the 1997-1998 school year, the local
board of school directors shall grant or deny the application no
later than sixty (60) days after the first public hearing.
(2) A charter school application submitted under this
article shall be evaluated by the local board of school
directors based on criteria, including, but not limited to, the
20150SB0856PN0968 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
following:
(i) The demonstrated, sustainable support for the charter
school plan by teachers, parents, other community members and
students, including comments received at the public hearing held
under subsection (d).
(ii) The capability of the charter school applicant, in
terms of support and planning, to provide comprehensive learning
experiences to students pursuant to the adopted charter.
(iii) The extent to which the application considers the
information requested in section 1719-A and conforms to the
legislative intent outlined in section 1702-A.
(iv) The extent to which the charter school may serve as a
model for other public schools.
(3) The local board of school directors, in the case of an
existing school being converted to a charter school, shall
establish the alternative arrangements for current students who
choose not to attend the charter school.
(4) A charter application shall be deemed approved by the
local board of school directors of a school district upon
affirmative vote by a majority of all the directors. Formal
action approving or denying the application shall be taken by
the local board of school directors at a public meeting, with
notice or consideration of the application given by the board,
under [the "Sunshine Act."] 65 Pa.C.S. Ch. 7.
(5) Written notice of the board's action shall be sent to
the applicant, the department and the appeal board. If the
application is denied, the reasons for the denial, including a
description of deficiencies in the application, shall be clearly
stated in the notice sent by the local board of school directors
to the charter school applicant.
20150SB0856PN0968 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(f) At the option of the charter school applicant, a denied
application may be revised and resubmitted to the local board of
school directors. Following the appointment and confirmation of
the Charter School Appeal Board under section 1721-A, the
decision of the local board of school directors may be appealed
to the appeal board. When an application is revised and
resubmitted to the local board of school directors, the board
may schedule additional public hearings on the revised
application. The board shall consider the revised and
resubmitted application at the first board meeting occurring at
least forty-five (45) days after receipt of the revised
application by the board. For a revised application resubmitted
for the 1997-1998 school year, the board shall consider the
application at the first board meeting occurring at least thirty
(30) days after its receipt. The board shall provide notice of
consideration of the revised application under [the "Sunshine
Act."] 65 Pa.C.S. Ch. 7. No appeal from a decision of a local
school board may be taken until July 1, 1999.
* * *
(i) (1) The appeal board shall have the exclusive review of
an appeal by a charter school applicant, or by the board of
trustees of an existing charter school, of a decision made by a
local board of directors not to grant a charter as provided in
this section.
[(2) In order for a charter school applicant to be eligible
to appeal the denial of a charter by the local board of
directors, the applicant must obtain the signatures of at least
two per centum of the residents of the school district or of one
thousand (1,000) residents, whichever is less, who are over
eighteen (18) years of age. For a regional charter school, the
20150SB0856PN0968 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
applicant must obtain the signatures of at least two per centum
of the residents of each school district granting the charter or
of one thousand (1,000) residents from each of the school
districts granting the charter, whichever is less, who are over
eighteen (18) years of age. The signatures shall be obtained
within sixty (60) days of the denial of the application by the
local board of directors in accordance with clause (3).
(3) Each person signing a petition to appeal denial of a
charter under clause (2) shall declare that he or she is a
resident of the school district which denied the charter
application and shall include his or her printed name;
signature; address, including city, borough or township, with
street and number, if any; and the date of signing. All pages
shall be bound together. Additional pages of the petition shall
be numbered consecutively. There shall be appended to the
petition a statement that the local board of directors rejected
the petition for a charter school, the names of all applicants
for the charter, the date of denial by the board and the
proposed location of the charter school. No resident may sign
more than one petition relating to the charter school
application within the sixty (60) days following denial of the
application. The department shall develop a form to be used to
petition for an appeal.
(4) Each petition shall have appended thereto the affidavit
of some person, not necessarily a signer, setting forth all of
the following:
(i) That the affiant is a resident of the school district
referred to in the petition.
(ii) The affiant's residence, giving city, borough or
township, with street and number, if any.
20150SB0856PN0968 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(iii) That the signers signed with full knowledge of the
purpose of the petition.
(iv) That the signers' respective residences are correctly
stated in the petition.
(v) That the signers all reside in the school district.
(vi) That each signer signed on the date set forth opposite
the signer's name.
(vii) That to the best of the affiant's knowledge and
belief, the signers are residents of the school district.
(5) If the required number of signatures are obtained within
sixty (60) days of the denial of the application, the applicant
may present the petition to the court of common pleas of the
county in which the charter school would be situated. The court
shall hold a hearing only on the sufficiency of the petition.
The applicant and local board of school directors shall be given
seven (7) days' notice of the hearing. The court shall issue a
decree establishing the sufficiency or insufficiency of the
petition. If the petition is sufficient, the decree shall be
transmitted to the State Charter School Appeal Board for review
in accordance with this section. Notification of the decree
shall be given to the applicant and the local board of
directors.]
(6) In any appeal, the decision made by the local board of
directors shall be reviewed by the appeal board on the record as
certified by the local board of directors. The appeal board
shall give due consideration to the findings of the local board
of directors and specifically articulate its reasons for
agreeing or disagreeing with those findings in its written
decision. The appeal board shall have the discretion to allow
the local board of directors and the charter school applicant to
20150SB0856PN0968 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
supplement the record if the supplemental information was
previously unavailable.
(7) Not later than thirty (30) days after the date of notice
of the acceptance of the appeal, the appeal board shall meet to
officially review the certified record.
(8) Not later than sixty (60) days following the review
conducted pursuant to clause (6), the appeal board shall issue a
written decision affirming or denying the appeal. If the appeal
board has affirmed the decision of the local board of directors,
notice shall be provided to both parties.
(9) A decision of the appeal board to reverse the decision
of the local board of directors shall serve as a requirement for
the local board of directors of a school district or school
districts, as appropriate, to grant the application and sign the
written charter of the charter school as provided for in section
1720-A. Should the local board of directors fail to grant the
application and sign the charter within ten (10) days of notice
of the reversal of the decision of the local board of directors,
the charter shall be deemed to be approved and shall be signed
by the chairman of the appeal board.
(10) All decisions of the appeal board shall be subject to
appellate review by the Commonwealth Court.
(j) Notwithstanding the provisions of section 696(i) or any
other provision of law to the contrary, a school reform
commission considering an application to establish a charter
school in a school district of the first class shall comply with
subsection (e)(5).
(k) Notwithstanding the provisions of section 696(i) or any
other provision of law to the contrary, a charter school
applicant may appeal a decision of a school reform commission to
20150SB0856PN0968 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
deny an application to establish a charter school in a school
district of the first class to the appeal board. Subsections
(g), (h) and (i) shall apply to an appeal under this subsection.
Section 9. Section 1719-A of the act, added June 19, 1997
(P.L.225, No.22), is amended to read:
Section 1719-A. Contents of Application.--[An] (a) The
department shall create a standard application form for charter
school applicants seeking to establish a charter school entity
and for existing charter school entities seeking renewal of
their charters. The form shall be published in the Pennsylvania
Bulletin and posted on the department's publicly accessible
Internet website. The form shall include all of the following
information:
(1) The identification of the charter school applicant.
(2) The name of the proposed charter school entity.
(3) The grade or age levels served by the school.
(4) [The proposed governance structure of the charter
school, including a description and method for the appointment
or election of members of the board of trustees.] An
organizational chart clearly presenting the proposed governance
structure of the school, including lines of authority and
reporting between the board of trustees, administrators, staff
and any educational management service provider that will
provide management services to the charter school entity.
(4.1) A clear description of the roles and responsibilities
for the board of trustees, administrators and any other
entities, including a charter school foundation, shown in the
organizational chart.
(4.2) A clear description of and method for the appointment
or election of members of the board of trustees.
20150SB0856PN0968 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(4.3) Standards for board of trustees performance, including
compliance with all applicable laws, regulations and terms of
the charter.
(4.4) If the charter school entity intends to contract with
an educational management service provider for services, all of
the following:
(i) Evidence of the educational management service
provider's record in serving student populations, including
demonstrated academic achievement and demonstrated management of
nonacademic school functions, including proficiency with public
school-based accounting, if applicable.
(ii) A draft contract stating all of the following:
(A) The officers, chief administrator and administrators of
the educational management service provider.
(B) The proposed duration of the service contract.
(C) Roles and responsibilities of the board of trustees, the
school staff and the educational management service provider.
(D) The scope of services, personnel and resources to be
provided by the educational management service provider.
(E) Performance evaluation measures and timelines.
(F) The compensation structure, including clear
identification of all fees to be paid to the educational
management service provider.
(G) Methods of contract oversight and enforcement.
(H) Investment disclosure or the advance of moneys by the
educational management service provider on behalf of the charter
school entity.
(I) Conditions for renewal and termination of the contract.
(iii) Disclosure and explanation of any existing or
potential conflicts of interest between the members of the board
20150SB0856PN0968 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
of trustees and the proposed educational management service
provider or any affiliated business entities, including a
charter school foundation qualified as a support organization
under the Internal Revenue Code of 1986 (Public Law 99-514, 26
U.S.C. § 1 et seq.).
(5) The mission and education goals of the charter school
entity, the curriculum to be offered and the methods of
assessing whether students are meeting educational goals.
(6) The admission and enrollment policy [and criteria for
evaluating the admission of students] which shall comply with
the requirements of section 1723-A.
(7) Procedures which will be used regarding the suspension
or expulsion of pupils. Said procedures shall comply with
section 1318.
(8) Information on the manner in which community groups will
be involved in the charter school entity planning process.
(9) The financial plan for the charter school entity and the
provisions which will be made for auditing the school under
[section] sections 437 and 1728-A, including the role of any
charter school foundation.
(10) Procedures which shall be established to review
complaints of parents regarding the operation of the charter
school entity.
(11) A description of and address of the physical facility
in which the charter school entity will be located and the
ownership thereof and any lease arrangements.
(12) Information on the proposed school calendar for the
charter school entity, including the length of the school day
and school year consistent with the provisions of section 1502.
(13) The proposed faculty, if already determined, and a
20150SB0856PN0968 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
professional development and continuing education plan for the
faculty and professional staff of [a] the charter school entity.
(14) Whether any agreements have been entered into or plans
developed with the local school district regarding participation
of the charter school entity's students in extracurricular
activities within the school district. Notwithstanding any
provision to the contrary, no school district of residence shall
prohibit a student of a charter school entity from participating
in any extracurricular activity of that school district of
residence: Provided, That the student is able to fulfill all of
the requirements of participation in such activity and the
charter school entity does not provide the same extracurricular
activity.
(15) A report of criminal history record, pursuant to
section 111, for all individuals identified in the application
who shall have direct contact with students and a plan for
satisfying the proper criminal history record clearances
required for all other staff.
(16) An official clearance statement regarding child injury
or abuse from the Department of Public Welfare as required by 23
Pa.C.S. Ch. 63 Subch. C.2 (relating to background checks for
employment in schools) for all individuals identified in the
application who shall have direct contact with students and a
plan for satisfying the proper official clearance statement
regarding child injury or abuse required for all other staff.
(17) How the charter school entity will provide adequate
liability and other appropriate insurance for the charter school
entity, its employes and the board of trustees of the charter
school entity.
(18) Policies regarding truancy, absences and withdrawal of
20150SB0856PN0968 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
students, including the manner in which the charter school
entity will monitor attendance consistent with section 1715-A(a)
(9). The charter school entity's policy shall establish, to the
satisfaction of the local board of school directors or, in the
case of cyber charter school, to the satisfaction of the
department, that the charter school entity will comply with
sections 1332 and 1333, including the institution of truancy
proceedings when required under section 1333.
(19) How the charter school entity will meet the standards
included in the performance matrix developed by the department
under section 1731.1-A.
(20) Indicate whether or not the charter school entity will
seek accreditation by a nationally recognized accreditation
agency, including the Middle States Association of Colleges and
Schools or another regional institutional accrediting agency
recognized by the United States Department of Education or an
equivalent federally recognized body for charter school
education.
(b) A local board of school directors may not impose
additional terms, develop its own application or require
additional information outside the standard application form
required under subsection (a).
Section 10. Section 1720-A of the act, amended July 9, 2008
(P.L.846, No.61), is amended to read:
Section 1720-A. Term and Form of Charter.--(a) (1) Upon
approval of a charter application under section 1717-A, a
written charter shall be developed which shall contain the
provisions of the standardized charter application under section
1719-A and which shall be signed by the local board of school
directors of a school district, by the local boards of school
20150SB0856PN0968 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
directors of a school district in the case of a regional charter
school or by the chairman of the appeal board pursuant to
section [1717-A(i)(5)] 1717-A(i)(9) and the board of trustees of
the charter school or regional charter school. This written
charter, when duly signed by the local board of school directors
of a school district, [or] by the local boards of school
directors of a school district in the case of a regional charter
school or by the chairman of the appeal board, and the charter
school's or regional charter school's board of trustees, shall
act as legal authorization for the establishment of a charter
school or regional charter school. This written charter shall be
legally binding on both the local board of school directors of a
school district and the charter school's or regional charter
school's board of trustees. [Except as otherwise provided in
subsection (b), the charter shall be for a period of no less
than three (3) nor more than five (5) years and may be renewed
for five (5) year periods upon reauthorization by the local
board of school directors of a school district or the appeal
board.] If the charter school or regional charter school
contracts with an educational management service provider, a
contract shall be executed once the charter is approved. A
charter will be granted only for a school organized as a public,
nonprofit corporation.
(2) The following shall apply to all charters granted by a
school district:
(i) An initial charter executed pursuant to section
1720- A(a)(1) shall be for a period of five (5) years.
(ii) Prior to the effective date of the regulations
implementing the performance matrix as required under section
1731.1-A, a charter may be renewed for five (5) year periods
20150SB0856PN0968 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
upon reauthorization by the local board of school directors or
other governing body of a school district or the appeal board.
(iii) Upon the effective date of the regulations
implementing the performance matrix as required pursuant to
section 1731.1-A, the following shall apply:
(A) For charter schools and regional charter schools that
have satisfied the academic quality benchmark established by the
State Board of Education pursuant to section 1731.1-A, a charter
may be renewed for ten (10) year periods upon reauthorization by
the local board of school directors or other governing body of a
school district or the appeal board.
(B) For charter schools and regional charter schools that
have not satisfied the academic quality benchmark established by
the State Board of Education pursuant to section 1731.1-A, a
charter may be renewed for five (5) year periods upon
reauthorization by the local board of school directors or other
governing body of a school district or the appeal board.
(b) (1) Notwithstanding subsection (a), a governing board
of a school district of the first class may renew a charter for
a period of one (1) year if the board of school directors
determines that there is insufficient data concerning the
charter school's academic performance to adequately assess that
performance and determines that an additional year of
performance data would yield sufficient data to assist the
governing board in its decision whether to renew the charter for
a period of five (5) years.
(2) A one-year renewal pursuant to paragraph (1) shall not
be considered an adjudication and may not be appealed to the
State Charter School Appeal Board.
(3) A governing board of a school district of the first
20150SB0856PN0968 - 28 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
class does not have the authority to renew a charter for
successive one (1) year periods.
(c) (1) A charter school or regional charter school may
request amendments to its approved written charter by filing a
written document describing the requested amendment with the
local board of school directors.
(2) Within thirty-five (35) days of its receipt of the
request for an amendment, the local board of school directors
shall hold a public hearing on the requested amendment under 65
Pa.C.S. Ch. 7 (relating to open meetings).
(3) Within thirty-five (35) days after the hearing, the
local board of school directors shall grant or deny the
requested amendment. Failure by the local board of school
directors to hold a public hearing and to grant or deny the
amendments within the time period specified in this subsection
shall be deemed an approval.
(4) An applicant for an amendment to a local board of school
directors shall have the right to appeal the denial of a
requested amendment to the appeal board provided for under
section 1721-A.
Section 11. Section 1721-A(a) and (e) of the act, added June
19, 1997 (P.L.225, No.22), are amended to read:
Section 1721-A. State Charter School Appeal Board.--(a) The
State Charter School Appeal Board shall consist of the Secretary
of Education and [six (6)] the following members who shall be
appointed by the Governor by and with the consent of a majority
of all the members of the Senate. [Appointments by the Governor
shall not occur prior to January 1, 1999.] The Governor shall
select the chairman of the appeal board to serve at the pleasure
of the Governor. The members shall include:
20150SB0856PN0968 - 29 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) A parent of a school-aged child enrolled in a charter
school entity.
(2) A school board member.
(3) A certified teacher actively employed in a public
school.
(4) A faculty member or administrative employe of an
institution of higher education.
(5) A member of the business community.
(6) A member of the State Board of Education.
(7) An administrator of a charter school entity.
(8) A member of the board of trustees of a charter school
entity.
The term of office of members of the appeal board, other than
the secretary, shall be for a period of four (4) years or until
a successor is appointed and qualified, except that, of the
initial appointees, the Governor shall designate two (2) members
to serve terms of two (2) years, two (2) members to serve terms
of three (3) years and two (2) members to serve terms of four
(4) years. A parent member appointed under paragraph (1) shall
serve a term of four (4) years, provided the member's child
remains enrolled in the charter school entity. Any appointment
to fill any vacancy shall be for the period of the unexpired
term or until a successor is appointed and qualified.
* * *
(e) Meetings of the appeal board shall be conducted under
[the act of July 3, 1986 (P.L.388, No.84), known as the
"Sunshine Act."] 65 Pa.C.S. Ch. 7 (relating to open meetings).
Documents of the appeal board shall be subject to the act of
[June 21, 1957 (P.L.390, No.212), referred to as the Right-to-
Know Law.] February 14, 2008 (P.L.6, No.3), known as the "Right-
20150SB0856PN0968 - 30 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
to-Know Law."
Section 12. Section 1722-A(a), (b) and (d) of the act,
amended November 17, 2010 (P.L.996, No.104), are amended and the
section is amended by adding subsections to read:
Section 1722-A. Facilities.--(a) A charter school entity
may be located in an existing public school building, in a part
of an existing public school building, in space provided on a
privately owned site, in a public building or in any other
suitable location.
(b) The charter school entity facility shall be exempt from
public school facility regulations except those pertaining to
the health or safety of [the pupils] students.
(b.1) (1) A charter school entity shall have the right of
first refusal to purchase or lease, for educational purposes
only, a public school building or a part of a public school
building which is no longer in active use by the property
titleholder, at the price of one of the following:
(i) The last best offer above fair market value received in
the ninety (90) days preceding the charter school entity's
offer.
(ii) Fair market value, if no offer has been received in the
ninety (90) days preceding the charter school entity's offer.
(iii) Below fair market value, upon the mutual agreement of
the school entity and the charter school entity.
(2) Subject to paragraph (4), a school entity shall accept
an offer from a charter school entity that conforms to the
provisions of paragraph (1).
(3) The department shall provide a page on its publicly
accessible Internet website on which school entities are
required to post a notice for each public school building or
20150SB0856PN0968 - 31 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
part of a public school building that is available for purchase
or lease. A school entity shall submit a notice to the
department on a form to be developed by the department. The
department shall post the notice within five (5) days of
receiving the form.
(4) The following shall apply to the sale or lease of a
public school building or a part of a public school building by
a school entity:
(i) A school entity may not enter a contract to sell or
lease a building or part of a building until at least thirty
(30) days after the posting of a notice as required under
paragraph (3).
(ii) Where two (2) or more charter school entities make
offers on the same building or part of a building that conform
to the provisions of this subsection, the school entity shall:
(A) Accept the first offer where all the offers are equal.
(B) Accept the best offer where the offers differ.
(d) Notwithstanding any other provision of this act, a
school district [of the first class] may, in its discretion,
permit a charter school or regional charter school to operate
its school at more than one location.
* * *
(f) (1) Alcoholic beverages shall not be available for
consumption, purchase or sale in any charter school entity
facility.
(2) If , in the case of a charter school or regional charter
school, the local board of school directors reasonably believes
that alcoholic beverages have been made available for
consumption, purchase or sale in the charter school or regional
charter school facility, the local board of school directors
20150SB0856PN0968 - 32 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
shall notify the department.
(3) If alcoholic beverages have been made available for
consumption, purchase or sale in a charter school entity
facility, the secretary shall order the following forfeitures
against the charter school entity:
(i) A fine of $1,000 for the first violation.
(ii) A fine of $5,000 for the second or subsequent
violation.
(4) The charter school entity may appeal the order of the
secretary under 2 Pa.C.S. Chs. 5 (relating to practice and
procedure) and 7 (relating to judicial review).
Section 13. Section 1723-A(a) and (b) of the act, amended
June 26, 1999 (P.L.394, No.36) are amended to read:
Section 1723-A. [Enrollment] Admission and Enrollment
Requirements.--(a) (1) All resident children in this
Commonwealth who submit a completed enrollment form in
accordance with clause (3) qualify for admission to a charter
school entity within the provisions of subsection (b). [If] In
the case of a charter school, if more students apply to the
charter school than the number of attendance slots available in
the school, then students must be selected on a random basis
from a pool of [qualified applicants meeting the established
eligibility criteria and submitting an application] eligible
applicants who have submitted an enrollment form in accordance
with clauses (3) and (4) by the deadline established by the
charter school, except that the charter school may give
preference in enrollment to a child of a parent who has actively
participated in the development of the charter school [and], to
siblings of students presently enrolled in the charter school
and to siblings of students selected for enrollment during the
20150SB0856PN0968 - 33 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
lottery process. First preference shall be given to students who
reside in the district or districts[.] in which the charter
school is physically located .
(2) If a charter school has a waiting list following its
initial selection of eligible applicants under clause (1), the
charter school shall select eligible applicants from the waiting
list as spaces become available. All children shall be assigned
to the waiting list on a random basis. When selecting eligible
applicants from the waiting list, a charter school shall give
first preference to students as provided under clause (1) and to
those who reside in the district or districts in which the
charter school is physically located until the charter school
again reaches its maximum capacity of students. If a charter
school has a waiting list, once the charter school has exhausted
the waiting list of resident children, it may then enroll
children on the waiting list who reside outside of the district.
Nonresident children shall also be selected on a random basis.
(3) The department, in consultation with representatives of
charter school entities, shall develop a standard enrollment
form that shall be used by all eligible applicants to apply to a
charter school entity. The standard enrollment form shall only
request information necessary to allow the charter school entity
to identify the student, grade level and residency, including:
(i) The student's name, physical address, telephone number,
age, birth date and current grade level.
(ii) The name, physical address, telephone number and e-mail
address of the student's parent or guardian.
(4) The standard enrollment form shall be made physically
available at each charter school entity, in a form that complies
with Federal and State law and posted on the publicly accessible
20150SB0856PN0968 - 34 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Internet website of each charter school entity, if available. A
charter school entity may accept the enrollment form via
electronic means.
(5) When a student applies to a charter school entity, a
charter school entity shall not require or request information
beyond the contents of the standard enrollment form developed by
the department.
(6) Nothing in this section shall prohibit a charter school
entity from requesting the submission of additional records and
information that public schools are entitled to receive after a
student is accepted for admission to a charter school entity.
(7) As used in this subsection "eligible applicant" shall
mean a student who is seeking to enter a grade level offered by
the charter school and meets the requirements of 22 Pa. Code §§
11.12 (relating to school age), 11.13 (relating to compulsory
school age), 11.14 (relating to admission to kindergarten when
provided), 11.15 (relating to admission of beginners), 11.16
(relating to early admission of beginners) and 12.1 (relating to
free education and attendance) and student residency
requirements.
(b) (1) A charter school entity shall not discriminate in
its admission policies or practices on the basis of intellectual
ability, [except as provided in paragraph (2), or] athletic
ability, measures of achievement or aptitude, status as a person
with a disability, proficiency in the English language or any
other basis that would be illegal if used by a school district.
(2) A charter school entity may limit [admission] its
academic focus to a particular grade level[,] or a targeted
population group composed of at-risk students[, or areas of
concentration of the school such as mathematics, science or the
20150SB0856PN0968 - 35 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
arts. A charter school may establish reasonable criteria to
evaluate prospective students which shall be outlined in the
school's charter.] or a specialized area or accelerated program
of study, such as mathematics, science or the arts.
* * *
Section 14. Section 1724-A(d) of the act, added June 19,
1997 (P.L.225, No.22), is reenacted and amended to read:
Section 1724-A. School Staff.--* * *
(d) Every employe of a charter school shall be provided [the
same] similar health care benefits as the employe would be
provided if he or she were an employe of the local district. The
local board of school directors may require the charter school
to provide [the same] similar terms and conditions with regard
to health insurance as the collective bargaining agreement of
the school district to include employe contributions to the
district's health benefits plan. The charter school shall make
any required employer's contribution to the district's health
plan to an insurer, a local board of school directors or a
contractual representative of school employes, whichever is
appropriate to provide the required coverage.
* * *
Section 15. Section 1725-A(a)(2) of the act, amended June
29, 2002 (P.L.524, No.88), is amended to read:
Section 1725-A. Funding for Charter Schools.--(a) Funding
for a charter school shall be provided in the following manner:
* * *
(2) For non-special education students, the charter school
shall receive for each student enrolled no less than the
budgeted total expenditure per average daily membership of the
prior school year, as defined in section 2501(20), minus the
20150SB0856PN0968 - 36 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
budgeted expenditures of the district of residence for nonpublic
school programs; adult education programs; community/junior
college programs; student transportation services; for special
education programs; facilities acquisition, construction and
improvement services; programs and services to the extent they
are funded from the proceeds of competitive grants from private
or public resources or from contributions or donations from
private sources; and other financing uses, including debt
service and fund transfers as provided in the Manual of
Accounting and Related Financial Procedures for Pennsylvania
School Systems established by the department. This amount shall
be paid by the district of residence of each student.
* * *
Section 16. Section 1728-A(a) of the act, added June 19,
1997 (P.L.225, No.22), is amended to read:
Section 1728-A. Annual Reports and Assessments.--(a) (1)
The local board of school directors shall annually assess
whether each charter school or regional charter school is
meeting the goals of its charter and shall conduct a
comprehensive review prior to granting a [five (5) year] renewal
of the charter under section 1720-A(a)(2). The local board of
school directors shall have ongoing access to the records and
facilities of the charter school or regional charter school to
ensure that the charter school or regional charter school is in
compliance with its charter and this act and that requirements
for testing, civil rights and student health and safety are
being met.
(2) Ongoing access to a charter school's or regional charter
school's records shall mean that the local board of school
directors shall have access to records such as financial
20150SB0856PN0968 - 37 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
reports, financial audits, aggregate standardized test scores
without student-identifying information and teacher
certification and personnel records.
(3) Charter schools and regional charter schools shall
comply fully with the requirements of the Family Educational
Rights and Privacy Act of 1974 (Public Law 90-247, 20 U.S.C. §
1232g) and associated regulations. No personally identifiable
information from education records shall be provided by the
charter school or regional charter school to the school district
except in compliance with the Family Educational Rights and
Privacy Act of 1974.
(b) In order to facilitate the local board's review and
secretary's report, each charter school or regional charter
school shall submit an annual report no later than August 1 of
each year to the local board of school directors and the
secretary in the form prescribed by the secretary.
[(c) Five (5) years following the effective date of this
article, the secretary shall contract with an independent
professional consultant with expertise in public and private
education. The consultant shall receive input from members of
the educational community and the public on the charter school
program. The consultant shall submit a report to the secretary,
the Governor and the General Assembly and an evaluation of the
charter school program, which shall include a recommendation on
the advisability of the continuation, modification, expansion or
termination of the program and any recommendations for changes
in the structure of the program.]
(d) A charter school entity shall form an independent audit
committee of its board members which shall review at the close
of each fiscal year a complete certified audit of the operations
20150SB0856PN0968 - 38 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
of the charter school entity. The audit shall be conducted by a
qualified independent certified public accountant. The audit
shall be conducted under generally accepted audit standards of
the Governmental Accounting Standards Board and shall include
the following:
(1) An enrollment test to verify the accuracy of student
enrollment and reporting to the State.
(2) Full review of expense reimbursements for board members
and administrators, including sampling of all reimbursements.
(3) Review of internal controls, including review of
receipts and disbursements.
(4) Review of annual Federal and State tax filings,
including the Internal Revenue Service Form 990, Return of
Organization Exempt from Income Tax and all related schedules
and appendices for the charter school entity and charter school
foundation, if applicable.
(5) Review of the financial statements of any charter school
foundation.
(6) Review of the selection and acceptance process of all
contracts publicly bid under section 751.
(7) Review of all board policies and procedures with regard
to internal controls, code of ethics, conflicts of interest,
whistle-blower protections, complaints from parents or the
public, compliance with 65 Pa.C.S. Ch. 7 (relating to open
meetings), compliance with the "Right-to-Know Law," finances,
budgeting, audits, public bidding and bonding.
(e) The certified audit under subsection (d) and the annual
budget under subsection (g) are public documents and shall be
made available on the charter school entity's publicly
accessible Internet website, if available, and in the case of a
20150SB0856PN0968 - 39 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
charter school or regional charter school, on the school
district's publicly accessible Internet website.
(f) A charter school entity may be subject to an annual
audit by the Auditor General, in addition to any other audits
required by Federal law or this article.
(g) A charter school entity shall annually provide the
department and, in the case of a charter school or regional
charter school, shall annually provide the school district, with
a copy of the annual budget for the operation of the charter
school entity that identifies the following:
(1) The source of funding for all expenditures as part of
its reporting under subsection (a).
(2) Where funding is provided by a charter school
foundation, the amount of funds and a description of the use of
the funds.
(3) The salaries of all administrators of the charter school
entity.
(4) All expenditures to an educational management service
provider.
(h) (1) Notwithstanding any other provision of law, a
charter school entity and any affiliated charter school
foundation shall make copies of its annual Federal and State tax
filings available upon request and on the foundation's or
charter school entity's publicly accessible Internet website, if
applicable, including Internal Revenue Service Form 990, Return
of Organization Exempt from Income Tax and all related schedules
and appendices.
(2) The charter school foundation shall also make copies of
its annual budget available upon request and on the foundation's
or the charter school entity's publicly accessible Internet
20150SB0856PN0968 - 40 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
website within thirty (30) days of the close of the foundation's
fiscal year.
(3) The annual budget shall include the salaries of all
employes of the charter school foundation.
Section 17. The act is amended by adding a section to read:
Section 1728.2-A. Charter Authorizer Accountability.--(a)
Each local board of school directors shall be required to submit
to the department an annual report summarizing:
(1) The strategic vision for chartering and progress toward
achieving that vision.
(2) The academic and financial performance of all operating
public charter schools and regional charter schools overseen by
the local board of school directors according to the performance
expectations for public charter schools set forth in this act.
(3) The status of the local board of school directors'
charter school and regional charter school portfolio,
identifying all public charter schools in each of the following
categories: (i) approved, but not open; (ii) open and operating;
and (iii) closed, including the year closed and the reason for
closure.
(4) The authorizing functions provided by the local board of
school directors to the public charter schools and regional
charter schools under its purview, including the authorizer's
operating costs and expenses detailed in annual audited
financial statements that conform to generally accepted
accounting principles.
(b) The department shall be responsible for the following:
(1) Oversight of the performance of each established local
board of school directors.
(2) Formal evaluation of the overall State charter school
20150SB0856PN0968 - 41 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
program and outcomes every five years.
(3) For each local board of school directors an annual
review, based on objective data, to determine how well it is
exercising its duties and maintaining a portfolio of high-
performing charter schools.
(4) In reviewing or evaluating the performance of each local
board of school directors, the department shall apply nationally
recognized principles and standards of quality charter school
authorizing including, but not limited to, those of the National
Association of Charter School Authorizers.
(c) The department shall publish the annual reviews on its
publicly accessible Internet website and submit a summary report
regarding performance to the Governor and the General Assembly.
(d) (1) By November 30, 2016, the department shall develop
a plan for sanctioning local boards of school directors that
maintain portfolios with persistently low-performing charter
schools and regional charter schools and fail to provide
adequate oversight or intervention that may include a corrective
action plan and other sanctions deemed necessary by the
department.
(2) The department must issue its plan for sanctioning local
boards of school directors to the President pro tempore of the
Senate, the Majority Leader and Minority Leader of the Senate,
the Education Committee of the Senate, the Speaker of the House
of Representatives, the Majority Leader and Minority Leader of
the House of Representatives and the Education Committee of the
House of Representatives.
(3) The plan for sanctioning local boards of school
directors developed by the department shall not go into effect
unless the plan for sanctioning local boards of school directors
20150SB0856PN0968 - 42 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
is approved by an act of the General Assembly.
Section 18. Section 1729-A(a), (b) and (c) of the act, added
June 19, 1997 (P.L.225, No.22), are amended to read:
Section 1729-A. Causes for Nonrenewal or Termination.--(a)
During the term of the charter or at the end of the term of the
charter, the local board of school directors may choose to
revoke or not to renew the charter based on any of the
following:
(1) One or more material violations of any of the
conditions, standards or procedures contained in the written
charter signed pursuant to section 1720-A.
(2) Failure to meet the requirements for student performance
[set forth in 22 Pa. Code Ch. 5 (relating to curriculum) or
subsequent regulations promulgated to replace 22 Pa. Code Ch. 5]
on assessments or failure to meet any performance standard set
forth in the written charter signed pursuant to section [1716-A]
1720-A.
(3) Failure to meet generally accepted standards of fiscal
management or audit requirements.
(4) Violation of provisions of this article.
(5) Violation of any provision of law from which the charter
school entity has not been exempted, including Federal laws and
regulations governing children with disabilities.
[(6) The charter school has been convicted of fraud.]
* * *
(b) [A member of the board of trustees who is convicted of a
felony or any crime involving moral turpitude shall be
immediately disqualified from serving on the board of trustees.]
If, after a hearing under this section, a local board of school
directors or, in the case of a cyber charter school, the
20150SB0856PN0968 - 43 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
department proves by a preponderance of the evidence that an
administrator or board member of a charter school entity has
violated this article, the terms and conditions of the charter
or any other law, the local board of school directors or, in the
case of a cyber charter school, the department may require the
charter school entity to replace the administrator or board of
trustees member in order to obtain renewal of the charter. The
local board of school directors or, in the case of a cyber
charter school, the department may refer its findings to the
district attorney with jurisdiction or to the Office of Attorney
General for prosecution if the local board of school directors
or, in the case of a cyber charter school, the department
discovers or receives information about possible violations of
law by any person affiliated with or employed by a charter
school entity.
(c) Any notice of revocation or nonrenewal of a charter
given by the local board of school directors of a school
district shall state the grounds for such action with reasonable
specificity and give reasonable notice to the [governing] board
of trustees of the charter school or regional charter school of
the date on which a public hearing concerning the revocation or
nonrenewal will be held. The local board of school directors
shall conduct such hearing, present evidence in support of the
grounds for revocation or nonrenewal stated in its notice and
give the charter school or regional charter school reasonable
opportunity to offer testimony before taking final action.
Formal action revoking or not renewing a charter shall be taken
by the local board of school directors held at a public meeting
pursuant to [the act of July 3, 1986 (P.L.388, No.84), known as
the "Sunshine Act,"] 65 Pa.C.S. Ch. 7 (relating to open
20150SB0856PN0968 - 44 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26