Regular Session 2019-2020 Senate Bill 0497 P.N. 0530

PRINTER'S NO. 530

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

497

Session of

2019

INTRODUCED BY BREWSTER, LEACH AND KEARNEY, MARCH 29, 2019

REFERRED TO EDUCATION, MARCH 29, 2019

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," extensively revising provisions

relating to charter schools.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 1702-A, 1703-A, 1714-A, 1715-A, 1716-A,

1717-A and 1719-A of the act of March 10, 1949 (P.L.30, No.14),

known as the Public School Code of 1949, are amended to read:

Section 1702-A. Legislative Intent.--It is the intent of the

General Assembly, in enacting this article, to provide pupils

and community members with the ability to establish and maintain

schools that operate [independently from] under contract to,

collaboratively with and only to the extent established by

contract and by the provisions of this article, the existing

school district structure as a method to accomplish all of the

following:

(1) Improve pupil learning.

(2) Increase learning opportunities for all pupils.

(3) Encourage the use of different and innovative teaching

methods.

(4) Create new professional opportunities for teachers,

including the opportunity to be responsible for the learning

program at the school site.

(5) Provide parents and pupils with expanded choices in the

types of educational opportunities that are available within the

public school system.

(6) Hold the schools established under this act accountable

for meeting measurable academic standards and provide the school

with a method to establish accountability systems.

(7) Allow school districts to supplement their own and learn

from innovative charter school practices.

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

"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.

"Aid ratio" and "market value/income aid ratio" shall be:

(1) the aid ratio and market value/income aid ratio for the

school district that granted a charter to the charter school;

(2) for a regional charter school, the aid ratio and market

value/income aid ratio shall be a composite, as determined by

the department, based on the school districts that granted the

charter; or

(3) for a cyber charter school, the aid ratio and market

value/income aid ratio shall be that of the school district in

which the administrative offices of the cyber charter school are

located.

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"Appeal board" shall mean the State Charter School Appeal

Board established by this article.

"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.

"Auditor" shall mean an independent certified public

accounting firm or individual certified public accountant or a

Federal, State or local government agency or employe, including,

but not limited to, the department, the Department of the

Auditor General, the Philadelphia Office of the Controller or

the United States Department of Education and their employes.

"Charter" shall mean a contract formed between a local board

of school directors and a charter school or between the

department and a cyber charter school.

"Charter school" shall mean [an independent] a 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 foundation" shall mean a nonprofit

organization 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, regional charter school or cyber charter school,

either directly or through an affiliated entity.

"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

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staff member under this article.

"Contract" shall mean the total legal obligation that results

from the parties' agreement as determined by State contract law

as supplemented by this chapter and any other applicable laws.

"Cyber charter school" shall mean [an independent] a public

school established and operated under a charter from the

Department of Education and in which the school uses technology

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:

(1) an educational management organization, either for

profit or nonprofit;

(2) a school design provider; or

(3) the administrators and executives of the education

management organization, including its chief executive officer,

business manager, board member or founder or any other partner

entity with which a board of trustees of a charter school,

regional charter school or cyber charter school 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.

" Family member " shall mean:

(1) a grandparent, parent, spouse, former spouse, child,

grandchild, brother, sister or cousin;

(2) a child of a spouse, former spouse, brother, sister or

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cousin; or

(3) a spouse or former spouse of a grandparent, parent,

child, grandchild, brother, sister, cousin, nephew or niece.

Family members in these categories or relationships shall

include first degree, in-law, half, adopted and step relatives.

" Founder " shall mean an individual or entity that may

establish a charter school under section 1717-A, including an

individual, one or more teachers who will teach at the proposed

charter school, parents or guardians of students who will attend

the charter school and any nonsectarian corporation not-for-

profit as defined in 15 Pa.C.S. (relating to corporations and

unincorporated associations).

" Investigator " shall mean any Federal, State or local

government agency or employe, including, but not limited to, the

State Ethics Commission, the Office of Inspector General, the

United States Office of Inspector General and the Federal Bureau

of Investigation and their employes.

"Local board of school directors" shall mean the board of

directors of a school district in which a proposed or an

approved charter school is located.

"Local industrial development agency" shall mean an

industrial development agency as defined in the act of May 17,

1956 (1955 P.L.1609, No.537), known as the "Pennsylvania

Industrial Development Authority Act."

"Regional charter school" shall mean [an independent] a

public school established and operated under a charter from more

than 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.

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"Related party" shall mean a party that:

(1) has an ownership interest in another party; or

(2) can significantly influence or control, directly or

indirectly, the management of another party,

and as a result of the ownership or significant influence or

control can give rise to a direct or potential conflict of

interest, as defined in 65 Pa.C.S. § 1102 (relating to

definitions). The term includes a relationship between the

charter school and a nonprofit organization, charter school

foundation or educational management service provider that meets

this definition and its administrators, executives, board

members or founders.

"School district of residence" shall mean the school district

in this Commonwealth in which the parents or guardians of a

child reside.

"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 1714-A. Powers of Charter Schools.--(a) A charter

school established under this act is a body corporate and,

subject to its charter and the provisions of this article, shall

have all powers necessary or desirable for carrying out its

charter, including, but not limited to, the power to:

(1) Adopt a name and corporate seal; however, any name

selected shall include the words "charter school."

(2) Sue and be sued, but only to the same extent and upon

the same condition that political subdivisions and local

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agencies can be sued.

(3) Acquire real property from public or private sources by

purchase, lease, lease with an option to purchase or gift for

use as a charter school facility.

(4) Receive and disburse funds for charter school purposes

only.

(5) Make contracts and leases for the procurement of

services, equipment and supplies.

(6) Incur temporary debts in anticipation of the receipt of

funds.

(6.1) Incur debt for the construction of school facilities.

(7) Solicit and accept any gifts or grants for charter

school purposes.

(8) Establish plans, policies and practices, consistent with

its charter, with this article and with Federal and State law

regarding mission, philosophy, long-term strategic planning,

governance, administration, parent engagement, staffing,

professional development for staff, performance evaluation for

staff, facilities, admissions, enrollment, student placement,

recordkeeping, school climate, student discipline, health and

safety, academic standards, curriculum, assessment, student

services, information resources, technology and extracurricular

activities.

(b) A charter school shall, subject to its charter and the

provisions of this article, have such other powers as are

necessary to fulfill its charter and which are not inconsistent

with its charter and the provisions of this article.

exercise of the powers specified in this section shall not

impose any liability or legal obligation upon a school entity or

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upon the Commonwealth.

(d) The powers may be limited by the initial contract

between a charter school and a school district that grants the

charter school's charter. An initial limitation of powers, with

the exception of the powers regarding mission, philosophy,

admissions, enrollment, academic standards and curriculum under

subsection (a)(8), shall not be included in the renewal of a

charter by a school district for a period of more than one (1)

year at the end of its initial term.

Section 1715-A. Charter School Requirements.--Charter

schools shall be required to comply with the following

provisions:

(1) Except as otherwise provided in this article or in its

charter, a charter school 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. Charter schools are not exempt from statutes

applicable to public schools other than this act.

(2) A charter school shall be accountable to the local board

of school directors that granted the charter, the local board of

school directors of each school district that has resident

students enrolled in the charter school, the parents, the public

and the Commonwealth, with the delineation 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 shall not unlawfully discriminate in

admissions, hiring or operation.

(4) A charter school shall be nonsectarian in all

operations.

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(5) A charter school shall not provide any religious

instruction, nor shall it display religious objects and symbols

on the premises of the charter school.

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

(7) A 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 or in its charter.

(8) A charter school 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, in the manner in which the school

district in which the charter school is located is scheduled to

participate.

(9) A charter school 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

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."

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(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."

(11) Trustees of a charter school shall be public officials.

(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.

(13) A person who serves as a founder, administrator or

executive of an educational management service provider or an

administrator, executive, board member or founder for a charter

school shall not receive any payments for approved reimbursable

annual rental for leases of buildings or portions of buildings

for charter school use under section 2574.3.

(14) The charter school record produced, obtained or

maintained by an educational management service provider for a

charter school under a contract or agreement with the charter

school shall be readily available to auditors and investigators

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and shall be subject to disclosure under the act of February 14,

2008 (P.L.6, No.3), known as the "Right-to-Know Law."

Section 1716-A. Powers of Board of Trustees.--(a) The board

of trustees of a charter school shall have the authority to

decide matters related to the operation of the school,

including, but not limited to, budgeting, curriculum and

operating procedures, subject to the school's charter and the

provisions of this article. The board shall have the authority

to employ, discharge and contract with necessary professional

and nonprofessional employes subject to the school's charter and

the provisions of this article.

(b) No member of a local board of school directors of a

school entity nor a family member of a school director shall

serve on the board of trustees of a charter school that is

located in the member's district.

3, 1986 (P.L.388, No.84), known as the "Sunshine [Act."] Act,"

and with the act of February 14, 2008 (P.L.6, No.3), known as

the "Right-to-Know Law."

(d) No public official nor public employee, as defined under

65 Pa.C.S. § 1102 (relating to definitions), shall serve on the

board of trustees of a charter school, including the immediate

staff, employees or family members of a public official or

public employee.

(e) No administrator of a charter school nor family member

of the administrator is permitted to serve as a member of the

board of trustees of the charter school where the administrator

is employed.

(f) No member of a board of trustees of a charter school

shall receive any payment for lease arrangements between the

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charter school and a related party or any payment for approved

reimbursable annual rental for leases of buildings or portions

of buildings for use by the charter school under section 2574.3.

Section 1717-A. Establishment of Charter School.--(a) A

charter school may be established by an individual; one or more

teachers who will teach at the proposed charter school; parents

or guardians of students who will attend the charter school; any

nonsectarian college, university or museum located in this

Commonwealth; any nonsectarian corporation not-for-profit, as

defined in 15 Pa.C.S. (relating to corporations and

unincorporated associations); any corporation, association or

partnership; or any combination thereof. A charter school may be

established by creating a new school or by converting an

existing public school or a portion of an existing public

school. No charter school shall be established or funded by and

no charter shall be granted to any sectarian school, institution

or other entity. No funds allocated or disbursed under this

article shall be used to directly support instruction pursuant

to section 1327.1.

(b) (1) The conversion of an existing public school or

portion of an existing public school to a charter school may be

initiated by any individual or entity authorized to establish a

charter school under subsection (a).

(2) In order to convert an existing public school to a

charter school, the applicants must show that:

(i) More than fifty per centum of the teaching staff in the

public school have signed a petition in support of the public

school becoming a charter school; and

(ii) More than fifty per centum of the parents or guardians

of pupils attending that public school have signed a petition in

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support of the school becoming a charter school.

(3) In no event shall the board of school directors serve as

the board of trustees of an existing school which is converted

to a charter school pursuant to this subsection.

be submitted to the local board of school directors of the

district where the charter school will be located by November 15

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.

(2) Within ten (10) days of submission of an application

under paragraph (1), a copy of the application to establish a

charter school shall be provided by the applicant to the local

board of school directors of each district with resident

students who are expected to attend or have committed to attend

the proposed charter school. Within fifteen (15) days of the

receipt of the application, the local board of school directors

with resident students who are expected to attend or have

committed to attend the proposed charter school may submit

comments regarding the application to the local board of school

directors of the district where the charter school will be

located for consideration during the review and determination on

the charter application.

(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

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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." 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

following[:], and specific plans, resources, assigned

responsibilities, time lines and measurable objectives for

meeting the criteria initially and over time shall be included

as provisions in any application to establish or renew a charter

school and in any contract formed between the charter school and

the local board of school directors:

(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[,] and implementation to

provide comprehensive learning experiences to students pursuant

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to the adopted charter[.], using research-based and evidence-

based programs and services, including instruction,

interventions and supports, to meet the academic and behavioral

needs of students.

(iii) The extent to which the application details the

charter school's plans for utilizing and implementing the powers

in section 1714-A, 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[.] regarding innovative practices

for improving student achievement, and the capability of the

charter school for sharing the practices with other public

schools in the school district in which the charter school is

located.

(v) The extent to which the charter school may complement

the educational options and opportunities to learn currently

provided by the local board of school directors and not

duplicate the options and opportunities.

(vi) The charter school enrollment projections and any cap

or limit on enrollment for each grade level and for each year of

the charter contract.

(vii) The projected fiscal impact of the charter school on

each school district with resident students enrolled in the

charter school over the term of the charter contract, including

the projected fiscal impact of the individual charter school

calculated by multiplying the projected charter school

enrollment by the per-student payment under section 1725-A for

the charter school and the projected aggregate impact caused by

addition of the charter school to the total number of charter

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schools operating in the school district.

(viii) The financial sustainability of the charter school

financial plan.

(ix) The capability of the charter school to operate in

collaboration with the local board of school directors,

including collaboration on measuring and monitoring the

operations and performance of the charter school and on forming

and implementing corrective action plans to resolve deficiencies

over time.

(x) The sufficiency of measurements for public reporting and

monitoring the operations and performance of the charter school,

including student academic performance, student enrollment,

retention, discipline and withdrawal, fiscal performance,

student health and safety, teacher qualifications and

effectiveness and facilities. This shall include the method of

disaggregating the measurements for different student groups and

the various levels of each measurement to be used as annual

targets of accomplishment and to be considered as an indication

of deficiency.

(xi) The lawful preferences in student admissions for the

charter school, including whether the charter school will

provide an enrollment preference for students residing in an

attendance zone within the school district.

(xii) The capability of the charter school to ensure that

all children eligible for admission receive an equal opportunity

for admission and equal educational opportunities upon

enrollment, regardless of gender, disability, limited English

proficiency, poverty, community factors, truancy, academic or

behavioral difficulties or economic disadvantage, and the

capability of the charter school to perform outreach in the

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community and to structure its policies, practices and

operations to accomplish the objectives. This shall include a

plan for reaching and maintaining measurable targets for

recruiting, enrolling and retaining a student body that reflects

the diversity in the local school district in which the charter

school is located, including the programs, supports and services

to be provided by the charter school to accomplish the

objectives.

(xiii) The membership of the board of trustees for the

charter school, including whether the membership of the board of

trustees reflects the diversity of the community in which the

charter school will be located, whether the members of the board

of trustees have expertise in the practices and operations

necessary for the charter school to accomplish its objectives

and whether the bylaws of the board of trustees provides for at

least two parents of students enrolled in the school to serve on

the board of trustees when the school is operational.

(xiv) The plans for all members of the board of trustees to

receive annual training to ensure that they are knowledgeable

regarding their duties.

(2.1) The length of an initial charter contract shall not be

less than three (3) years nor more than five (5) years.

(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

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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."

(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.

(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." No appeal from a decision of a local school board may be

taken until July 1, 1999.

(g) Notwithstanding the provisions of subsection (e)(5),

failure by the local board of directors to hold a public hearing

and to grant or deny the application for a charter school within

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the time periods specified in subsections (d), (e) and (f) shall

permit the applicant for a charter to file its application as an

appeal to the appeal board. In such case, the appeal board shall

review the application and make a decision to grant or deny a

charter based on the criteria established in subsection (e)(2).

If the appeal board makes a decision to grant the charter under

this subsection, the charter shall be signed by the chairman of

the appeal board.

(h) In the case of a review by the appeal board of an

application that is revoked or is not renewed, the appeal board

shall make its decision based on whether the decision of the

local board of school directors was arbitrary and capricious or

contrary to law, pursuant to the local board's evaluation of

the criteria established in subsection (e)(2). A [decision]

determination by the appeal board under this subsection [or]

that the local board of school directors acted arbitrarily and

capriciously or contrary to law or a decision by the appeal

board under subsection (g) to grant, to renew or not to revoke a

charter shall serve as a requirement for the local board of

directors of a school district or school districts, as

appropriate, to [sign] negotiate with the charter school

applicant to determine 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] negotiate and

determine the charter within [ten (10)] thirty (30) days of

notice of [reversal of] the decision of the [local board of

directors,] appeal board, the appeal board shall appoint a

neutral mediator to assist the local board of school directors

and the charter school applicant or the board of trustees of the

charter school in determining the contents of the charter. If

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the local board of school directors and the applicant or board

of trustees of the charter school do not agree to the contents

of the charter within fifteen (15) days of the appointment of

the mediator, the mediator shall submit a recommendation for the

contents of the charter to the appeal board within thirty (30)

days of the appointment of the mediator. The mediator shall

provide a copy of the recommendation to the local board of

school directors and the applicant or the board of trustees of

the charter school, which may be provided electronically. The

appeal board shall consider the recommendation and, if the

recommendation receives approval by vote of the appeal board,

the charter shall be deemed to be approved and shall be signed

by the chairman of the appeal board.

(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

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

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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.

(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

20190SB0497PN0530 - 21 -

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] determine whether the findings

of the local board of directors are arbitrary or capricious and

specifically articulate its reasons for [agreeing or disagreeing

with those findings] the determination in its written decision.

The appeal board shall have the discretion to allow the local

board of directors and the charter school applicant to

supplement the record if the supplemental information was

previously unavailable, to submit written briefs, to make oral

argument in person or to provide other relevant information.

(7) Not later than thirty (30) days after the date of notice

of the acceptance of the appeal, the appeal board shall meet to

20190SB0497PN0530 - 22 -

officially review the certified record and, if allowed by the

appeal board, to consider any written briefs, oral argument and

other relevant information.

(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]

negotiate with the charter school applicant or board of trustees

of the charter school to determine the contents of 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] negotiate with the charter school

applicant or board of trustees of the charter school to

determine the contents of the charter within [ten (10)] thirty

(30) days of notice of the reversal of the decision of the local

board of directors, the appeal board shall appoint a neutral

mediator to assist the local board of school directors and the

charter school applicant or the board of trustees of the charter

school in determining the contents of the charter. If the local

board of school directors and the charter school applicant or

the board of trustees of the charter school do not agree to the

contents of the charter within fifteen (15) days of the

appointment of the mediator, the mediator shall submit a

recommendation for the contents of the charter to the appeal

board within thirty (30) days of the appointment of the

20190SB0497PN0530 - 23 -

mediator. The mediator shall provide a copy of the

recommendation to the local board of school directors and the

charter school applicant or the board of trustees of the charter

school, which may be provided electronically. The appeal board

shall consider the recommendation and, if the recommendation

receives approval by vote of the appeal board, 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.

Section 1719-A. Contents of Application.--An application to

establish a charter school shall include all of the following

information:

(1) The identification of the charter applicant.

(2) The name of the proposed charter school.

(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.

(5) The mission and education goals of the charter school,

the curriculum to be offered and the methods of assessing

whether students are meeting educational goals.

(6) The admission 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 planning process.

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(9) The financial plan for the charter school and the

provisions which will be made for auditing the school under

section 437.

(10) Procedures which shall be established to review

complaints of parents regarding the operation of the charter

school.

(11) A description of and address of the physical facility

in which the charter school will be located and the ownership

thereof and any lease arrangements.

(12) Information on the proposed school calendar for the

charter school, including the length of the school day and

school year consistent with the provisions of section 1502.

(13) The proposed faculty and a professional development

plan for the faculty of a charter school.

(14) Whether any agreements have been entered into or plans

developed with the local school district regarding participation

of the charter school 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 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 does not provide the same extracurricular activity.

(15) A report of criminal history record, pursuant to

section 111, for all individuals who shall have direct contact

with students.

(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

20190SB0497PN0530 - 25 -

employment in schools) for all individuals who shall have direct

contact with students.

(17) How the charter school will provide adequate liability

and other appropriate insurance for the charter school, its

employes and the board of trustees of the charter school.

(18) A written statement on the projected fiscal impact of

the individual charter school on the school district which shall

be calculated by multiplying the projected charter school

enrollment by the applicable per-student payments under section

1725-A.

(19) The projected aggregate impact to the school district

resulting from the addition of the charter school to the total

number of charter schools operating within the school district.

(20) A report on the condition of any existing physical

plant to be conducted and prepared by a department employe

following the employe's inspection of the physical plant at the

location of the proposed charter school. A copy of the report

shall be provided to the charter applicant and a copy of the

report shall be posted on the department's publicly accessible

Internet website. The charter applicant shall provide the

department employe with necessary access to the proposed

physical plant for the inspection. The department may establish

regulations to implement this paragraph.

(21) The written approval from the local board of school

directors of each school district with one (1) or more students

who expressed interest in attending or committed to attend the

charter school.

(22) A detailed report of the financing for the operations

of the charter school, including the contracts and financial

arrangements between the charter school, charter school

20190SB0497PN0530 - 26 -

foundation and all educational management service providers.

(23) The arrangements relating to compliance with section

1719.1-A.

(24) Any other information deemed necessary by the local

board of school directors to evaluate the criteria established

by section 1717-A(e)(2).

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

Section 1719.1-A. Surety Requirement.--(a) (1) For charter

school applications submitted to a school district after

December 31, 2019, a charter school applicant that receives

approval to operate a charter school shall comply with

subsection (b) within twenty (20) days of the charter school's

receipt of approval to operate.

(2) For charter schools that are operating on December 31,

2019, a charter school operator shall comply with subsection (b)

within twenty (20) days of the effective date of this section.

(b) A charter school shall submit one of the following forms

of surety to the school district where the charter school is

located and shall submit notice of the surety to each school

district that has resident students who are enrolled in the

charter school or who intend to enroll or are committed to

enroll in the newly approved charter school:

(1) An indemnity bond to cover the cost incurred by the

school district where the charter school is located and other

school districts with resident students enrolled in the charter

school for the costs to educate those students in the event of a

default and closure of the charter school as follows:

(i) The bond shall be payable to each school district with

resident students enrolled in the charter school in proportion

to the number of resident students enrolled in the charter

20190SB0497PN0530 - 27 -

school.

(ii) The amount of the bond shall be agreed upon by the

local board of school directors of the district where the

charter school is located and the board of trustees of the

charter school.

(iii) The bond shall be executed by the charter school

applicant and a corporate surety licensed to do business in this

Commonwealth and approved by the school district where the

charter school is located.

(iv) The school district where the charter school is located

and the charter school shall agree upon the duration of the

bond, which may not exceed five (5) years.

(2) An escrow account established and maintained on a

current basis with a bank, trust company or other escrow agent

within this Commonwealth, for payment to the school district

where the charter school is located and to each school district

with students enrolled in the charter school for the costs

incurred in educating the students in the event of a default and

closure of the charter school as follows:

(i) A portion of all payments received by the charter school

from all sources in an amount not to exceed twenty per centum of

each amount received shall be paid into the escrow account. The

aggregate amount paid into the escrow account shall not exceed

the total of twenty-five per centum of all payments received by

the charter school from the Commonwealth and the school

districts with resident students enrolled in the charter school

over the next twelve (12) months during the operation of the

charter school.

(ii) Interest earned on the money in the escrow account

shall be credited to and become part of the escrow account.

20190SB0497PN0530 - 28 -

(iii) The school district where the charter school is

located and the charter school shall agree upon the duration of

the escrow account, which may not exceed three (3) years.

(3) Other surety in an amount and duration that is agreed

upon by the school district where the charter school is located

and the charter school.

Section 3. Section 1720-A of the act is amended to read:

Section 1720-A. Term and Form of Charter.--(a) Upon

approval of a charter application under section 1717-A, a

written charter shall be developed which shall contain the

provisions of the charter application and other provisions

related to the operation of the charter school, as amended

through negotiation between the charter school and the local

board of school directors and which shall be signed by the local

board of school directors of a school district, 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

pursuant to section 1717-A(i)(5) and the board of trustees of

the 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, and the charter school's

board of trustees, shall act as the contract providing legal

authorization for the establishment and operation of a 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 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] no less than one (1) year nor more

20190SB0497PN0530 - 29 -

than ten (10) years upon reauthorization by the local board of

school directors of a school district or the appeal board. A

charter will be granted only for a school organized as a public,

nonprofit corporation.

(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] local board of [a school district of the

first class does] school directors shall not have the authority

to renew a charter for successive one (1) year periods.

establishment and operation of the charter school, including

collaboration with and oversight by the local board of school

directors.

(d) A written charter may include an enrollment preference

for students residing in an attendance zone within the school

district.

(e) The charter school shall collaborate with the local

board of school directors for the accurate measurement of its

performance and the sharing of this information in a form and in

a timely manner pursuant to the provisions of the charter,

20190SB0497PN0530 - 30 -

including sharing information with the public.

(f) The charter shall include provisions for measuring the

operations and performance of the charter school and identifying

deficiencies, including:

(1) The criteria for evaluating the charter application

under section 1717-A(e)(2) and the contents of the charter

application under section 1719-A, as amended through negotiation

between the charter school and the local board of school

directors.

(2) The success of the charter school in performing outreach

in the community and providing an equal opportunity for

admission to all children eligible for admission, regardless of

disability, limited English proficiency, poverty, community

factors, truancy, academic or behavioral difficulties or

economic disadvantage.

(3) The success of the charter school in providing an equal

opportunity to learn for all children enrolled in the school,

regardless of disability, limited English proficiency, poverty,

community factors, truancy, academic or behavioral difficulties

or economic disadvantage, including how the charter school

provides supports and services to meet the needs of all children

enrolled in the charter school.

(4) The data on the academic performance of the students

enrolled in the charter school.

(5) The data on student discipline at the charter school,

including expulsions and suspensions.

(6) The data on students who withdraw from the charter

school, including the identity of the students and the reason

for the students' withdrawal if known.

(7) The data on the fiscal performance of the charter

20190SB0497PN0530 - 31 -

school, including the annual audit required under section 437.

(8) The information on the charter school's health and

safety for the students and staff, including information on the

safety of the charter school facilities.

(g) The written charter shall include provisions for the

formation and implementation of corrective action plans to

resolve the charter school's operational and performance

deficiencies as identified by the local board of school

directors, and for the termination or nonrenewal of the charter

by the local board of school directors when the deficiencies are

substantial and remain unresolved within the time frame of the

corrective action plan.

(h) The written charter shall include duties of the school

district in which the charter school is located regarding the

charter school, including:

(1) Providing sufficient qualified staff to process in a

timely manner charter school inquiries, applications and

requests.

(2) Maintaining official rules and procedures and complying

with the official rules and procedures regarding charter school

operations in the school district.

(3) Providing technical assistance and support to the

charter school.

(4) Providing regular opportunities for feedback and

interaction with the administrators and the board of trustees of

the charter school regarding issues of mutual concern.

(5) Providing regular opportunities for sharing and learning

from successful innovative practices implemented in school

district schools and in charter schools.

(6) Providing regular opportunities for sharing and jointly

20190SB0497PN0530 - 32 -

evaluating data regarding charter school operations and

performance, the formation and implementation of corrective

action plans and school district compliance with the provisions

of this act.

Section 4. The act is amended by adding a section to read:

Section 1721.1-A. Oversight.--(a) The board of trustees of

a charter school shall submit a quarterly financial report to

the local board of directors of the school district that grants

the charter school's charter and to the local board of school

directors of each school district with one (1) or more students

enrolled in the charter school. The quarterly financial report

shall be considered a public record.

(b) A local board of school directors that oversees the

operations of a charter school shall provide an annual written

report to the secretary, pursuant to guidelines issued by the

department, including measurements and an evaluation of the

operations and performance of each charter school in the school

district, a description of corrective action taken to resolve

charter school deficiencies, technical assistance provided by

the school district and the status regarding corrective action

plans and decisions by the local board of school directors

regarding the formation, renewal, nonrenewal or termination of

charters. The annual written report shall be posted in a timely

manner on the school district's publicly accessible Internet

website and shall be subject to the act of February 14, 2008

(P.L.6, No.3), known as the "Right-to-Know Law."

regarding charter school operations and performance as provided

by the local board of school directors and may identify

operational and performance deficiencies based on these reports.

20190SB0497PN0530 - 33 -

The secretary shall have the authority to order a local board of

school directors to collaborate with a charter school located in

its school district to form and implement a corrective action

plan to resolve the charter school's operational and performance

deficiencies as identified by the secretary. The secretary shall

have the authority to order the local board of school directors

to terminate or not renew a charter when the deficiencies are

substantial and remain unresolved within the time frame of a

corrective action plan ordered by the secretary. Pursuant to the

orders and when requested by the secretary, the department shall

provide technical assistance for forming, implementing and

monitoring corrective action plans.

(d) If the charter school and the local board of school

directors fail to form and successfully implement a corrective

action plan in a timely manner under section 1720-A(g), the

secretary shall have the authority to identify the charter

school's operational and performance deficiencies, to form and

implement a corrective action plan to resolve the deficiencies

and to terminate the charter school when the deficiencies are

substantial and remain unresolved within the time frame of the

corrective action plan.

(e) The secretary shall:

(1) Utilize the annual written reports and other sources to

establish and maintain a current database of best practices and

related resources for charter school operations and performance.

(2) Make the database and related resources available to the

public through the department's publicly accessible Internet

website.

(3) Offer technical assistance, training and support to

charter schools and school districts for utilization of the best

20190SB0497PN0530 - 34 -

practices and resources.

(4) Feature examples of the effective use of the best

practices by charter schools and school districts within this

Commonwealth.

Section 5. Sections 1722-A, 1723-A and 1724-A(a) of the act

are amended to read:

Section 1722-A. Facilities.--(a) A charter school 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.

(a.1) Regardless of whether an approved reimbursable annual

rental is received under section 2574.3, a charter school may

not be located in a building owned by a related party, including

a charter school or a related nonprofit organization, charter

school foundation or educational management service provider or

its administrators, executives or founders.

(a.2) A project to construct a new charter school facility

that utilizes a financing arrangement with a local industrial

development agency or any other government entity that equals or

exceeds one million dollars ($1,000,000) shall receive the

written approval of the board of directors of the school

district where the proposed facility is located.

(b) The charter school facility shall be exempt from public

school facility regulations except those pertaining to the

health or safety of the pupils.

(d) Notwithstanding any other provision of this act, a

school district of the first class may, in its discretion,

permit a charter school to operate its school at more than one

location.

20190SB0497PN0530 - 35 -

(e) (1) Notwithstanding the provisions of section 204 of

the act of May 22, 1933 (P.L.853, No.155), known as The General

County Assessment Law, all school property, real and personal,

owned by any charter school, cyber charter school or an

associated nonprofit foundation, or owned by a nonprofit

corporation or nonprofit foundation and leased to a charter

school, cyber charter school or associated nonprofit foundation

at or below fair market value, that is occupied and used by any

charter school or cyber charter school for public school,

recreation or any other purposes provided for by this act, shall

be made exempt from every kind of State, county, city, borough,

township or other real estate tax, including payments in lieu of

taxes established through agreement with the Commonwealth or any

local taxing authority, as well as from all costs or expenses

for paving, curbing, sidewalks, sewers or other municipal

improvements, Provided, That any charter school or cyber charter

school or owner of property leased to a charter school or cyber

charter school may make a municipal improvement in a street on

which its school property abuts or may contribute a sum toward

the cost of the improvement.

(2) Any agreement entered into by a charter school, cyber

charter school or associated nonprofit foundation with the

Commonwealth or a local taxing authority for payments in lieu of

taxes prior to December 31, 2009, shall be null and void.

(3) This subsection shall apply retroactively to all charter

schools, cyber charter schools and associated nonprofit

foundations that filed an appeal from an assessment, as provided

in Article V of The General County Assessment Law, prior to the

effective date of this subsection.

(4) For purposes of this subsection, "local taxing

20190SB0497PN0530 - 36 -

authority" shall include, but not be limited to, a county, city,

borough, incorporated town, township or school district.

(f) The facilities of a charter school shall be accessible

to students, parents, staff and other individuals with a

disability under Federal law.

Section 1723-A. Enrollment.--(a) All resident children in

this Commonwealth qualify for admission to a charter school

within the provisions of subsection (b). 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

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. [First preference shall be

given] Preference shall be given first to students who reside in

any attendance zone established for the charter school within

the school district and second to students who reside in the

district or districts.

(b) (1) A charter school 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 may limit admission to a particular

grade level, a targeted population group composed of at-risk

students, or areas of concentration of the school such as

20190SB0497PN0530 - 37 -

mathematics, science or the arts. A charter school may establish

reasonable criteria to evaluate prospective students which shall

be outlined in the school's charter.

may enroll nonresident students on a space-available basis, and

the student's district of residence shall permit the student to

attend the charter school. The terms and conditions of the

enrollment shall be outlined in the school's charter.

(d) [(1)] Enrollment of students in a charter school or

cyber charter school [shall not] may be subject to a cap or

otherwise limited [by any past or future action of a board of

school directors, a board of control established under Article

XVII-B, a special board of control established under section 692

or any other governing authority, unless] if agreed to by the

local board of school directors and the charter school or cyber

charter school as part of a written charter pursuant to section

1720-A.

[(2) The provisions of this subsection shall apply to a

charter school or cyber charter school regardless of whether the

charter was approved prior to or is approved subsequent to the

effective date of this subsection.]

(e) A charter school shall enroll new students whenever an

attendance slot is available in the same manner as school

districts.

Section 1724-A. School Staff.--(a) (1) The board of

trustees shall determine the level of compensation and all terms

and conditions of employment of the staff except as may

otherwise be provided in this article. [At] Subject to the

provisions of this article, at least seventy-five per centum of

the professional staff members of a charter school shall hold

20190SB0497PN0530 - 38 -

appropriate State certification.

(2) (i) At least ninety per centum of the professional

staff members of a charter school who commence employment after

the effective date of this paragraph shall hold appropriate

State certification.

(ii) Professional staff members of a charter school who are

employed on the effective date of this paragraph and who do not

possess appropriate State certification as of the effective date

of this paragraph shall not be required to obtain appropriate

State certification.

(3) Employes of a charter school may organize under the act

of July 23, 1970 (P.L.563, No.195), known as the "Public Employe

Relations Act." The board of trustees of a charter school shall

be considered an employer for the purposes of Article XI-A. Upon

formation of one or more collective bargaining units at the

school, the board of trustees shall bargain with the employes

based on the provisions of this article, Article XI-A and the

"Public Employe Relations Act." Collective bargaining units at a

charter school shall be separate from any collective bargaining

unit of the school district in which the charter school is

located and shall be separate from any other collective

bargaining unit. A charter school shall be considered a school

entity as provided for in section 1161-A for the purpose of the

secretary seeking an injunction requiring the charter school to

meet the minimum requirements for instruction as provided for in

this article.

* * *

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

Section 1725.1-A. Taxpayer protections.--(a) A charter

school or a regional charter school shall not use taxpayer

20190SB0497PN0530 - 39 -

dollars to advertise the services provided by the school, the

facilities that are available to prospective students or a

particular educational philosophy.

(b) A charter school or a regional charter school shall not

use taxpayer dollars to pay for membership in an organization or

association of charter schools or a Statewide association,

individual or firm that advocates on behalf of charter schools.

or a regional charter school and any interest accrued on

investments that are not used to pay the necessary expenses for

the operation of the charter school or regional charter school

shall be returned to the sponsoring school district.

(d) As used in this section, the term "taxpayer dollars"

shall mean any funds appropriated by the General Assembly or by

a political subdivision.

Section 7. Section 1729-A of the act is 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

or failure to meet any performance standard set forth in the

written charter signed pursuant to section 1716-A.

(3) Failure to meet generally accepted standards of fiscal

20190SB0497PN0530 - 40 -

management or audit requirements.

(4) Violation of provisions of this article.

(5) Violation of any provision of law from which the charter

school has not been exempted, including Federal laws and

regulations governing children with disabilities.

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

(7) The local board of school directors where the charter

school is located finds that the charter school has failed to

successfully implement a corrective action plan to resolve the

charter school's operational and performance deficiencies as

identified by the local board of school directors, resulting in

substantial deficiencies that remain unresolved within the time

frame for the corrective action plan or the secretary issues an

order based on the finding of deficiencies as determined by the

local board of school directors.

(a.1) When a charter school located in a school district of

the first class is in corrective action status and seeks renewal

of its charter, if the governing body of the school district of

the first class renews the charter, it may place specific

conditions in the charter that require the charter school to

meet specific student performance targets within stated periods

of time subject to the following:

(i) The performance targets and the periods of time in which

the performance targets must be met shall be reasonable.

(ii) The placement of conditions in a charter as specified

in this subsection shall not be considered an adjudication and

may not be appealed to the State Charter School Appeal Board.

(iii) If the charter school fails to meet the performance

targets within the stated period of time, such failure shall be

sufficient cause for revocation of the charter.

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(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.

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

the 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 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 at a public meeting

pursuant to the act of July 3, 1986 (P.L.388, No.84), known as

the "Sunshine Act," after the public has had thirty (30) days to

provide comments to the board. All proceedings of the local

board pursuant to this subsection shall be subject to 2 Pa.C.S.

Ch. 5 Subch. B (relating to practice and procedure of local

agencies). Except as provided in subsection (d), the decision of

the local board shall not be subject to 2 Pa.C.S. Ch. 7 Subch. B

(relating to judicial review of local agency action).

(d) Following the appointment and confirmation of the appeal

board, but not before July 1, 1999, the charter school may

appeal the decision of the local board of school directors to

revoke or not renew the charter to the appeal board. The appeal

board shall have the exclusive review of a decision not to renew

or revoke a charter. The appeal board shall review the record

and shall have the discretion to [supplement the record if the

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supplemental information was previously unavailable.] allow the

local board of directors and the charter school to supplement

the record if the supplemental information was previously

unavailable, to submit written briefs, to make oral argument in

person or to provide other relevant information. The appeal

board may consider the charter school plan, annual reports,

student performance and employe and community support for the

charter school in addition to the record. The appeal board shall

[give due consideration to the] determine whether the nonrenewal

or revocation decision and findings of the local board of

directors are arbitrary or capricious and specifically

articulate its reasons for [agreeing or disagreeing with those

findings] the determination in its written decision.

(e) [If the appeal board determines that the charter should

not be revoked or should be renewed, the appeal board shall

order the local board of directors to rescind its revocation or

nonrenewal decision.] 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 and, if

allowed by the appeal board, to consider any written briefs,

oral arguments and other relevant information.

(e.1) Not later than sixty (60) days following the review

conducted under subsection (d), the appeal board shall issue a

written decision affirming or denying the appeal or, only upon a

specific finding of arbitrariness or capriciousness by the local

board of school directors, affirming the appeal. The appeal

board shall provide a written notice explaining its decision to

both parties.

(e.2) A decision of the appeal board to reverse the

nonrenewal decision of the local board of school directors shall

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serve as a requirement for the local board of school directors

to negotiate with the charter school and form and sign a charter

renewal for the charter school. Should the local board of school

directors fail to sign the charter renewal within thirty (30)

days of notice of the reversal of the decision of the local

board of school directors, the appeal board shall appoint a

neutral, unbiased master to recommend the content of the charter

renewal to the appeal board. The master shall submit a

recommendation for the contents of the charter to the appeal

board within thirty (30) days of the appointment of the master.

The master shall provide a copy of the recommendation to the

local board of school directors and the charter school applicant

or the board of trustees of the charter school, which may be

provided electronically. The appeal board shall consider the

recommendation and, if the recommendation receives approval by

vote of the appeal board, the charter shall be deemed to be

approved and shall be signed by the chairman of the appeal

board.

(f) Except as provided in subsection (g), the charter shall

remain in effect until final disposition by the appeal board.

(g) In cases where the health or safety of the school's

pupils, staff or both is at serious risk, the local board of

school directors may take immediate action to revoke a charter.

(h) All decisions of the charter school appeal board shall

be subject to appellate review by the Commonwealth Court.

(i) When a charter is revoked, not renewed, forfeited,

surrendered or otherwise ceases to operate, the charter school

shall be dissolved. After the disposition of any liabilities and

obligations of the charter school, any remaining assets of the

charter school, both real and personal, shall be distributed on

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a proportional basis to the school entities with students

enrolled in the charter school for the last full or partial

school year of the charter school. In no event shall such school

entities or the Commonwealth be liable for any outstanding

liabilities or obligations of the charter school.

(j) When a charter is revoked or is not renewed, a student

who attended the charter school shall apply to another public

school in the student's school district of residence. Normal

application deadlines will be disregarded under these

circumstances. All student records maintained by the charter

school shall be forwarded to the student's district of

residence.

Section 8. The act is amended by adding a section to read:

Section 1745.1-A. Review and moratorium.

(a) Legislative Budget and Finance Committee study.--The

Legislative Budget and Finance Committee shall conduct a study

of all aspects of the funding, operation and performance of all

cyber charter schools in this Commonwealth, including the

potential impact of the approval of new cyber charter schools

and an expansion of existing cyber charter school enrollments on

students attending those cyber charter schools and on students

attending school districts with students enrolled in the new or

expanded cyber charter schools.

(b) Time period for completion of study and dissemination.--

The study under subsection (a) shall be completed by December

31, 2019, and shall be posted by the Legislative Budget and

Finance Committee on its publicly accessible Internet website

and by the department on its publicly accessible Internet

website. The Legislative Budget and Finance Committee shall

provide a copy, which may be in an electronic format, to the

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Governor, the chairperson and minority chairperson of the

Education Committee of the Senate and the chairperson and

minority chairperson of the Education Committee of the House of

Representatives.

provision of law to the contrary, beginning on the effective

date of this section and until June 30, 2021, a moratorium is

established on the formation and approval of new cyber charter

schools and the expansion of existing cyber charter schools in

order to provide the General Assembly with sufficient time to

review the completed study under subsection (a) and to take

appropriate action. During the period of the moratorium, no new

cyber charter school shall be formed or approved and no existing

cyber charter school shall have its enrollment expanded.

Section 9. Section 1749-A(a) of the act is amended to read:

Section 1749-A. Applicability of other provisions of this act

and of other acts and regulations.

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

subject to the following:

(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,

436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,

808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,

1302, 1310, 1317.2, 1318, 1326, 1327, 1327.2, 1329, 1330,

1332, 1333, 1333.1, 1333.2, 1333.3, 1303-A, 1518, 1521, 1523,

1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A, 1719-A,

1721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A, 1725.1-A,

1727-A, 1729-A, 1730-A, 1731-A(a)(1) and (b) and 2014-A and

Articles XII-A, XIII-A and XIV.

(2) The act of July 17, 1961 (P.L.776, No.341), known as

the Pennsylvania Fair Educational Opportunities Act.

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(3) The act of July 19, 1965 (P.L.215, No.116), entitled

"An act providing for the use of eye protective devices by

persons engaged in hazardous activities or exposed to known

dangers in schools, colleges and universities."

(4) Section 4 of the act of January 25, 1966 (1965

P.L.1546, No.541), entitled "An act providing scholarships

and providing funds to secure Federal funds for qualified

students of the Commonwealth of Pennsylvania who need

financial assistance to attend postsecondary institutions of

higher learning, making an appropriation, and providing for

the administration of this act."

(5) The act of July 12, 1972 (P.L.765, No.181) entitled

"An act relating to drugs and alcohol and their abuse,

providing for projects and programs and grants to educational

agencies, other public or private agencies, institutions or

organizations."

(6) The act of December 15, 1986 (P.L.1595, No.175),

known as the Antihazing Law.

* * *

Section 10. Section 2574.3 of the act is amended by adding

subsections to read:

Section 2574.3. Approved Reimbursable Annual Rental for

Leases of Buildings or Portions of Buildings for Charter School

Use.--* * *

charter school shall provide the following documentation:

(1) A copy of the signed lease agreement for the leased

building.

(2) A copy of the deed for the leased building.

(3) The names of the board of trustees and administrators of

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the charter school.

(4) The names of the administrators or executives of the

educational management service provider.

(5) If the owner of the leased building is a nonprofit

organization or a charter school foundation, the names of the

members of its governing board.

(d) A charter school may not apply for, nor may the

department authorize, any charter lease reimbursement if the

reimbursement is for lease payments to the following exclusions

which incorporate terms as defined in 65 Pa.C.S. § 1102

(relating to definitions):

(1) an administrator of the charter school or a member of

the administrator's immediate family, or a business with which

the administrator or a member of the administrator's immediate

family is associated;

(2) a member of the board of trustees of the charter school

or a member of the member's immediate family, or a business with

which the member or a member of the member's immediate family is

associated;

(3) a founder of the charter school or a member of the

founder's immediate family, or a business with which the founder

or a member of the founder's immediate family is associated;

(4) an administrator or executive of the educational

management service provider or a member of the administrator's

or executive's immediate family, or a business with which the

administrator or executive or a member of the administrator's or

executive's immediate family is associated; or

(5) any other entity or individual that has a substantial

financial interest with the charter school, outside of the lease

agreement.

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