Regular Session 2021-2022 House Bill 0001 P.N. 1948

PRINTER'S NO. 1948

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

Session of

2021

INTRODUCED BY LEWIS, KAIL, LEWIS DELROSSO, KAUFFMAN, RYAN,

ZIMMERMAN, OWLETT, ROWE, KEEFER, ORTITAY, PENNYCUICK,

ROTHMAN, M. MACKENZIE, BERNSTINE, DOWLING, METCALFE, JONES

AND GROVE, JULY 19, 2021

REFERRED TO COMMITTEE ON EDUCATION, JULY 19, 2021

AN ACT

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

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," in preliminary provisions, providing

for learning pod protection and for advertising; in terms and

courses of study, further providing for agreements with

institutions of higher education; in opportunities for

educational excellence, further providing for definitions,

for responsibilities of school entities and for concurrent

enrollment agreements; in charter schools, further providing

for definitions, providing for ideal charter schools, further

providing for charter school requirements, for powers of

board of trustees and for facilities, providing for fund

balance limits and further providing for school district and

intermediate unit responsibilities; in educational tax

credits, further providing for limitations; and providing for

education opportunity accounts and establishing the Education

Opportunity Account Program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

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

to read:

Section 129. Learning pod protection.--(a) Notwithstanding

any other provision of law to the contrary, a learning pod shall

be exempt from the following provisions:

(1) All provisions of this act related to staff ratios,

certifications, background checks and physical accommodations.

(2) All regulatory provisions of the Department of Human

Services related to the operation of a day-care, child-care

center or at home day-care, including staff certifications,

background checks and physical accommodations.

(3) Any State building or fire codes applicable to

educational or child-care facilities.

(4) Any local building or fire codes applicable to an

educational or child-care facility.

(5) Any other State or local statute, rule or code which

would not be applicable to any group, building or facility but

for the operation or presence of a learning pod.

(b) No State, local or school district employe may initiate

or conduct any site inspection or other investigation or visit

that would not have been initiated or made but for the operation

or presence of a learning pod.

or conduct any site inspection or other investigation or visit,

that would not have been initiated or made but for the operation

or presence of a learning pod, on the basis of any provision of

Federal code, rule, guideline or any other Federal authority.

(d) No school district may take any action or act in any

manner discriminate against or otherwise distinguish any student

or parent on the basis of participation in a learning pod.

(e) No State agency, local government or school district may

require that any learning pod be in any manner required to

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operation of the learning pod.

(f) This section shall not alter the regulation of any day-

care center, child-care center or home-day-care center related

to any operations or other matters not directly related to the

operation of a learning pod.

(g) The following shall apply to any administrative,

judicial hearing or other action regarding this section:

(1) Compliance of this section with any State or local law,

regulations, guidelines or school district guideline or other

action shall be a judicial question and determined without

regard to any assertion of compliance with this section.

(2) Any State or local law, regulation, guideline or school

district guidelines or other action shall be required to

establish by clear and convincing evidence that law, regulation,

guideline or action:

(i) Does not unduly impede on the freedom of parents and

guardians to provide care and supervision of their children.

(ii) Does not single out educational activities while

similar gatherings of children for recreational or social

activities remain unregulated.

(iii) Is narrowly tailored to protect the public health and

safety.

(h) As used in this section, the following words and phrases

shall have the meanings given to them in this subsection:

"Learning pod." A group of children who otherwise meet the

compulsory attendance requirements under Article XIII and meet

at various times or places to participate in educational

activities. The term shall include payment for any services

provided to the children participating in a learning pod by a

parent.

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"Operation of a learning pod." Any actions taken by a parent

or individual assisting a parent while engaged in any actions

taken to organize, facilitate or operate a learning pod at any

facility, home or other structure utilized by a learning pod.

Section 130. Advertising.--(a) A paid media advertisement

by a public school entity that refers to the cost of tuition or

transportation shall not advertise those expenses as free, and

any reference to tuition or transportation costs must stipulate

that the cost is covered by taxpayer dollars.

(b) As used in this section, the following words and phrases

shall have the meanings given to them in this subsection:

"Paid media advertisement." The term includes a television,

radio or movie theater advertisement, billboard, bus poster,

newspaper, magazine, publicly accessible Internet website or any

other commercial method that may promote enrollment in a public

school entity.

"Public school entity." A public school district, charter

school, cyber charter school, regional charter school,

intermediate unit or area vocational-technical career and

technical school.

Section 2. Section 1525 of the act 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 career and 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

of higher education while the [resident] students are enrolled

in the school district, charter school, regional charter school,

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cyber charter school or area career and 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 career and technical school and at institutions

of higher education approved to operate in this Commonwealth.

Section 3. The definitions of "concurrent student" and

"school entity" in section 1602-B of the act 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 career and 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

career and technical school.

* * *

Section 4. Sections 1611-B and 1613-B of the act are amended

by adding subsections to read:

Section 1611-B. Responsibilities of school entities.

* * *

(g) Revenue received by school district.--Notwithstanding

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any provision of law to the contrary, the revenues received by a

school district under section 1603-B shall not be included in

the school district's budgeted total expenditure per average

daily membership used to calculate the amount to be paid to a

charter school entity under section 1725-A(a)(2) and (3).

Section 1613-B. Concurrent enrollment agreements.

* * *

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 5. Section 1703-A of the act 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.

"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

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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.

"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

or approved by the State board or the General Assembly to meet

the requirements of section 2603-B or 2604-B or 22 Pa. Code §

4.51 (relating to State assessment system) or required under the

Every Student Succeeds Act (Public Law 114-95, 129 Stat. 1802)

or its successor Federal statute.

"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.

["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.]

"Charter school entity" shall mean a charter school, regional

charter school or cyber charter school.

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"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 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.

"Community college" shall mean a community college

established under Article XIX-A.

"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

nonprofit charter management organization, for-profit education

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

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shall not include a charter school foundation.

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

brother, sister, grandparent or grandchild.

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

directors or other governing authority of a 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

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 career and technical school.

"Secretary" shall mean the Secretary of Education of the

Commonwealth.

"State board" shall mean the State Board of Education of the

Commonwealth.

"State System institution" shall mean a member institution of

the State System of Higher Education established under Article

XX-A.

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

Section 1714.1-A. Ideal Charter Schools.--(a)

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Notwithstanding any other provision of law, an applicant seeking

to establish a public charter school in this Commonwealth may

submit the charter petition to any of the following:

(1) The elected governing authority of a county

or municipality.

(2) The mayor of a city of the first class.

(3) Any school district located in this Commonwealth.

(4) The State Board of Education .

(5) The board of trustees of a two-year or four-year

institution of higher education as defined by section 2001-A.

(6) The Public Charter School Commission established in

subsection (c).

(b) Public university authorizers are established in this

Commonwealth. A public university authorizer shall be

responsible for sponsoring a charter school. The responsibility

for maintaining sponsorship shall rest with the university's

board of trustees. The university's board of trustees may vote

to assign sponsorship authority and sponsorship responsibilities

to another person or entity that functions under the direction

of the university's board. Prior to a university sponsoring a

charter school, the university must conduct a public meeting

with public notice in the county where the charter school will

be located. A charter authorizer shall:

(1) Receive applications, evaluate applications to ensure

that they meet the minimal requirements set forth by statute,

and make approval and denial decisions.

(2) Execute contracts, incorporating and consistent with

approved applications, between the authorizer and public charter

schools detailing the rights and responsibilities of the

authorizer and the charter school and setting forth the academic

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and operational performance expectations and measures by which

the charter school will be judged. The authorizer may choose to

make the approved application the charter contract.

(3) Monitor, on a regular basis, the performance of the

charter schools it oversees.

(4) Establish, through formal rulemaking, renewal and

revocation criteria and processes for the charter schools it

oversees.

authorizers shall employ procedures, practices and criteria

consistent with this section. The application review process

shall include thorough evaluation of each written charter

application, an in-person interview with the applicant group and

an opportunity in a public forum for local residents to learn

about and provide input on each application. The authority shall

provide each applicant with a detailed analysis of the

application and grant the applicant a reasonable time to provide

additional materials and amendments to an application to address

any identified deficiencies. In deciding whether to approve

charter applications, an authorizer shall:

(1) Grant charters only to applicants that have demonstrated

competence in each element of the authorizer's published

approval criteria and are likely to open and operate a

successful public charter school.

(2) Base decisions on documented evidence collected through

the application review process.

(3) Follow charter-granting policies and practices that are

transparent, based on merit and avoid conflicts of interest or

any appearance thereof.

(d) No later than thirty (30) days after the filing of a

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charter application, the authorizer shall decide to approve or

deny the charter application. The authorizer shall adopt by

resolution all charter approval or denial decisions in an open

meeting of the authorizer's governing board. An approval

decision may include, if appropriate, reasonable conditions that

the charter applicant must meet before a charter contract may be

executed under this section. Conditions under this subsection

may not include enrollment caps or operational requirements that

in any manner contradict this section. For any charter denial,

the authorizer shall clearly state, for public record, any

reasons for denial. A denied applicant may subsequently reapply

to any authorizer in this Commonwealth.

(e) Within fifteen (15) days of an action to approve or deny

a charter application, the authorizer shall report the action to

the Department of Education. The authorizer shall provide a copy

of the report to the charter applicant at the same time that the

report is submitted to the Department of Education. The report

shall include a copy of the authorizer governing board's

resolution setting forth the action taken and reasons for the

decision and assurances as to compliance with all of the

procedural requirements and application elements set forth in

this section.

(f) A charter may be renewed for successive ten-year terms

of duration, although the authorizer may vary the term based on

the performance, demonstrated capacities and particular

circumstances of each public charter school. An authorizer may

grant renewal with specific conditions for necessary

improvements to a public charter school, but may not impose

conditions inconsistent with this section. No later than July 30

of each year, the authorizer shall issue a public charter school

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performance report and charter renewal application guidance to

any public charter school whose charter will expire the

following year. The performance report shall summarize the

public charter school's performance record to date, based on the

data required by this section and the charter contract, and

shall provide notice of any weaknesses or concerns related to

the public charter school that may jeopardize its position in

seeking renewal if not timely rectified. The public charter

school shall have sixty (60) days to respond to the performance

report and submit any corrections or clarifications for the

report.

(g) The renewal application guidance shall:

(1) Provide an opportunity for the public charter school to:

(i) Present additional evidence, beyond the data contained

in the performance report, supporting its case for

charter renewal.

(ii) Describe improvements undertaken or planned for the

school.

(iii) Detail the school's plans for the next charter term.

(2) Include or refer explicitly to the criteria that will

guide the authorizer's renewal decisions, which shall be based

on the performance framework set forth in the charter contract

and consistent with this section.

(h) No later than April 1 of each year, the governing board

of a public charter school seeking renewal shall submit a

renewal application to the charter authorizer in accordance with

the renewal application guidance issued by the authorizer. The

authorizer shall rule, by resolution, on the renewal application

no later than thirty (30) days after the filing of the renewal

application. In making charter renewal decisions, every

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authorizer shall:

(1) Ground its decisions in evidence of the school's

performance over the term of the charter contract in accordance

with the performance framework set forth in the charter

contract.

(2) Ensure that data used in making renewal decisions are

available to the school and the public.

(3) Provide a public report summarizing the evidence basis

for each decision.

(i) A charter contract may be revoked at any time or not

renewed if the authorizer determines that the public charter

school did any of the following or otherwise failed to comply

with the provisions of this section:

(1) commits a material and substantial violation of any of

the terms, conditions, standards or procedures required under

this section or the charter contract, and has persistently

failed to correct the violation after fair and specific notice

from the authorizer;

(2) fails to meet or make progress toward the performance

expectations set forth in the charter contract;

(3) fails to meet generally accepted standards of fiscal

management, and has failed to correct the violation after fair

and specific notice from the authorizer; or

(4) substantially violates any material provision of law

from which the public charter school was not exempted and has

failed to correct the violation after fair and specific notice

from the authorizer.

(j) In the case of a violation that threatens the health and

safety of the students of any public charter school or if

members of the public charter school committed a material

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violation of the law, the authorizer may take immediate action.

(k) An authorizer must develop revocation and nonrenewal

processes that:

(1) Provide the holders of the charter with a timely

notification of the prospect of revocation or nonrenewal and of

the reasons for possible closure.

(2) Allow the holders of the charter a reasonable amount of

time to prepare a response.

(3) Provide the holders of the charter with an opportunity

to submit documents and give testimony challenging the rationale

for closure and in support of the continuation of the school at

an orderly proceeding held for that purpose.

(4) Allow the holders of the charter access to

representation by counsel and to call witnesses on their behalf.

(5) Permit the recording of proceedings.

(6) After a reasonable period for deliberation, require a

final determination be made and conveyed in writing to the

holders of the charter .

(7) If an authorizer revokes or does not renew a charter,

clearly states, in a resolution of its governing board, the

reasons for the revocation or nonrenewal.

(l) Within thirty (30) days of taking action, the authorizer

shall report to the Department of Education the action taken,

and shall provide a copy of the report to the public charter

school at the same time that the report is submitted to the

Department of Education. The report shall include a copy of the

authorizer governing board's resolution setting forth the action

taken and reasons for the decision and assurances as to

compliance with all of the requirements of this section.

(m) Prior to any public charter school closure decision, an

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authorizer shall have developed a public charter school closure

protocol to ensure timely notification to parents, orderly

transition of students and student records to new schools, and

proper disposition of school funds, property and assets in

accordance with the requirements of this section. The protocol

shall specify tasks, timelines and responsible parties,

including delineating the respective duties of the school and

the authorizer. In the event of a public charter school closure

for any reason, the authorizer shall oversee and work with the

closing school to ensure a smooth and orderly closure and

transition for students and parents, as guided by the closure

protocol. In the event of a public charter school closure for

any reason, the assets of the school shall be distributed first

to satisfy outstanding payroll obligations for employes of the

school, then to creditors of the school, and then to the State

Treasury to the credit of the General Fund. If the assets of the

school are insufficient to pay all parties to whom the school

owes compensation, the prioritization of the distribution of

assets may be determined by decree of a court of law.

(n) The Public Charter School Commission is established in

the Commonwealth. The commission shall authorize high-quality

public charter schools in this Commonwealth consistent with this

section. The commission shall consist of eleven (11)

geographically diverse citizens of this Commonwealth, no more

than six (6) of whom shall be members of the same political

party, who shall be appointed as follows:

(1) Three (3) members shall be appointed by the Governor.

(2) Three (3) members shall be appointed by the President

pro tempore of the Senate and one (1) member by the Minority

Leader of the Senate.

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(3) Three (3) members shall be appointed by the Speaker of

the House of Representatives and one (1) by the Minority Leader

of the House of Representatives.

(o) Members appointed to the commission shall collectively

possess experience and expertise in public and nonprofit

governance, management and finance, public school leadership,

assessment, curriculum and instruction and public education law.

All members of the commission shall have demonstrated

understanding of and commitment to charter schooling as a

strategy for strengthening public education by providing

additional high-quality choices.

(p) The first appointment of the Governor, the first

appointment of the President pro tempore of the Senate and the

first appointment of the Speaker of the House of Representatives

shall serve an initial term of four (4) years. The second

appointment by the Governor and the first appointment of the

Minority Leader of the Senate and the Minority Leader of the

House of Representatives shall serve an initial term of three

(3) years. All remaining appointments shall serve an initial

term of two (2) years. The initial appointments shall be made no

later than thirty (30) days after the effective date of this

section. A member may be reappointed, however no member may be

appointed to a new term after the member has served seven (7)

consecutive years.

(q) A member of the commission may be removed for

any cause that renders the member incapable or unfit to

discharge the duties of the office. If a vacancy on the

commission exists, the original appointing authority shall

appoint a member for the remaining portion of the term.

(r) The members of the commission shall annually elect one

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individual from its membership to serve as chairperson after

members of the commission have been appointed to fill any

vacancies caused by the regular expiration of previous members'

terms, or when requested by a majority vote of the members of

the commission. A majority of the members of the commission

shall constitute a quorum. The commission shall meet at the call

of the chairperson, subject to any hearing requirements of the

commission.

(s) Members of the commission shall serve without pay,

but may receive reimbursement for any reasonable and necessary

expenses incurred by reason of service on the commission.

(t) Subject to any rules as may be promulgated by the

commission, the chairperson shall have the authority to appoint,

terminate and fix the pay of an executive director and other

personnel of the commission as the chairperson deems

necessary. The commission shall be authorized to use the

services, personnel and facilities of the Department of

Education. Any start-up expenses of the commission shall be paid

from funds available to the Department of Education. Within

forty-five (45) days of the effective date of this section, the

Department of Education shall make available no less than

$150,000 to the commission.

(u) The commission shall provide for an audit of the

financial statements of the commission by an independent

certified public accountant in accordance with auditing

standards for financial audits issued by the Comptroller General

of the United States.

(v) The sum of $300,000 may be appropriated to the

commission for fiscal year 2021 and such sums as may be

necessary for each of the three (3) succeeding fiscal years.

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This appropriation shall not lapse.

(w) The Commonwealth shall remit to each authorizer under

subsection (a) an oversight fee for each public charter school

the authorizer approves. The oversight fee shall be drawn from

and calculated as a uniform percentage of the per-student

operational funding allocated to each public charter school, not

to exceed three per centum of each public charter school's per-

student funding in a single school year. The Department of

Education shall establish a Statewide formula for authorizer

funding, which shall apply uniformly to every authorizer in this

Commonwealth. The General Assembly may establish a sliding scale

for authorizer funding, with the funding percentage decreasing

after the authorizer has achieved a threshold determined by the

General Assembly. An authorizer's oversight fee may not include

any costs incurred in delivering services that a public charter

school may purchase at its discretion from the authorizer. The

authorizer shall use funding provided under this section

exclusively for the purpose of fulfilling authorizing

obligations in accordance with this section.

(x) The commission shall operate with dedicated resources

and staff qualified to execute the day-to-day responsibilities

of a public charter school authorized in accordance with this

section.

(y) The commission shall annually submit a report to the

General Assembly summarizing:

(1) The academic and financial performance of all operating

public charter schools overseen by the commission, according to

the performance expectations for public charter schools set

forth in this section.

(2) The status of the commission's public charter school

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portfolio, identifying all public charter schools in each of the

following categories:

(i) approved but not yet open;

(ii) operating;

(iii) renewed;

(iv) transferred;

(v) revoked;

(vi) not renewed;

(vii) voluntarily closed; or

(viii) never opened.

(3) The authorizing functions provided by the commission to

the public charter schools under its purview, including its

operating costs and expenses detailed in annual audited

financial statements that conform with generally accepted

accounting principles.

(z) As used in this section, the term "commission" means the

Public Charter School Commission established under subsection

(c).

Section 7. Section 1715-A of the act 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

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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 entity shall not unlawfully

discriminate in admissions, hiring or operation.

(4) A charter school entity shall be nonsectarian in all

operations.

(5) [A] (i) 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

common areas contain religious symbols and objects.

(6) A charter school entity shall not advocate unlawful

behavior.

(7) A charter school entity shall only be subject to the

laws and regulations as provided for in section 1732-A, or as

otherwise provided for in this article.

(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

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promulgated to replace 22 Pa. Code Ch. 5, 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."

(11) Trustees of a charter school entity shall be public

officials[.

(12) A person who serves as an administrator for a charter

20210HB0001PN1948 - 22 -

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.] 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 the State Ethics Commission

and either the local board of school directors in the case of a

charter school or regional charter school, or the department in

the case of a cyber charter school, 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.

(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

trustees not later than May 1 of each year that the person holds

the position and of the year after the person leaves the

20210HB0001PN1948 - 23 -

position.

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 granting the permission

under clause (1)(ii) shall be provided to, and kept on file

with, the charter school entity and the local board of 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 of the administrator 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

commits a violation of 65 Pa.C.S. § 1103(a) (relating to

restricted activities) and shall be subject to the penalties

20210HB0001PN1948 - 24 -

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 8. Sections 1716-A(c) and 1722-A(a), (b) and (d) of

the act are amended and the sections are 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 a

charter school or 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

interest as that term is defined in 65 Pa.C.S. § 1102 (relating

to definitions).

20210HB0001PN1948 - 25 -

(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 discovery of the

violation.

(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 of trustees 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 the member's official capacity as a member

of the board of trustees or any crime involving moral turpitude.

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

members.

20210HB0001PN1948 - 26 -

(ii) If a charter school entity has fewer than five (5)

nonrelated voting members serving on its board of trustees on

the effective date of this subsection, the charter school entity

shall, within sixty (60) days, appoint additional members to the

board of trustees to meet the minimum requirements of this

section.

(2) Within one (1) year of the effective date of this

subsection, at least one 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 of trustees

member provided for under this paragraph shall be eligible to

serve only so long as the child attends the charter school

entity. This paragraph shall not apply to a charter school that

primarily serves adjudicated youth.

(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 official action on the subjects

enumerated under subsection (a).

(f) A charter school entity shall form an independent audit

committee of its board of trustees members which shall review at

the close of each fiscal year a complete certified audit of the

operations 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:

20210HB0001PN1948 - 27 -

(1) An enrollment test to verify the accuracy of student

enrollment and reporting to the Commonwealth.

(2) Full review of expense reimbursements for board of

trustees 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 pursuant to 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), finances, budgeting, audits, public bidding and

bonding.

(g) The certified audit under subsection (f) and the annual

budget under subsection (i) 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

charter school or regional charter school, on the school

district's publicly accessible Internet website.

(h) A charter school entity may be subject to an annual

audit by the Auditor General, in addition to any other audits

20210HB0001PN1948 - 28 -

required by Federal law or this act.

(i) 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.

(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.

(j) (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 charter school

entity's or foundation's publicly accessible Internet website,

if available, 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

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

20210HB0001PN1948 - 29 -

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 that is no longer in use by a school entity which is

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) 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

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 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

20210HB0001PN1948 - 30 -

public school building or a part of a public school building by

a school entity:

(i) A school entity may not enter into 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) If two or more charter school entities make offers on

the same building or part of a building that conforms to the

provisions of this subsection, the school entity shall:

(A) Accept the first offer, if the offers are equal in

dollar amount.

(B) Accept the best offer, if the offers differ in dollar

amount.

(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.] a charter school or regional charter school that does

not have in the written charter any limits on student enrollment

or caps is permitted to operate the school at more than one

location within the district that authorized the charter.

* * *

(f) School districts, intermediate units, community colleges

and institutions under Article XX-A shall provide a cyber

charter school with reasonable access to their facilities for

the administration of standardized testing as follows:

(1) A cyber charter school shall provide an intermediate

unit, school district, community college or institution under

Article XX-A with at least sixty (60) days' notice of the need

for facilities to be used for the administration of standardized

tests.

20210HB0001PN1948 - 31 -

(2) Within thirty (30) days of the cyber charter school's

request, the intermediate unit, school district, community

college or institution under Article XX-A shall notify the cyber

charter school of the location of the facilities that will be

provided, which shall be a quiet, separate location in which

cyber charter school students will not be commingled with

students of the intermediate unit, school district, community

college or institution under Article XX-A.

(3) An intermediate unit, school district of residence,

community college or institution under Article XX-A shall not be

required to make facilities available to a cyber charter school

on dates and at times that may cause undue interference with the

educational programs of the intermediate unit, school district,

community college or institution under Article XX-A.

(4) Any facilities rental fee charged to the cyber charter

school and the payment thereof shall be in compliance with the

facility rental policy of the intermediate unit, school

district, community college or institution under Article XX-A

that applies generally to all organizations and community

groups.

(g) As used in this section, "charter school entity" shall

mean a charter school, regional charter school or cyber charter

school.

Section 9. The act is amended by adding a section to read:

Section 1731.1-A. Fund Balance Limits.--Fund balance limits

shall be as follows:

(1) For the 2021-2022 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

20210HB0001PN1948 - 32 -

follows:

Charter School Entity

Total Budgeted Expenditures

Maximum Unassigned Fund

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) For the 2021-2022 school year and each school year

thereafter, any unassigned fund balance in place on June 30,

2020, and on June 30 of each year thereafter 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, based upon the number of students for

whom each school district paid tuition to the charter school

entity multiplied by the school district's per student payment

under section 1725-A.

(3) By October 31, 2020, and by October 31 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

and shall include information on the charter school entity's

20210HB0001PN1948 - 33 -

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.

(4) 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 on a pro rata basis to all school districts

that paid tuition to the charter school entity in the prior

school year, based upon the number of students for whom each

school district paid tuition to the charter school entity

multiplied by the school district's per student payment under

section 1725-A.

(5) As used in this section, "unassigned fund balance" shall

mean that portion of the fund balance of a charter school entity

that provides funding that 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 10. Section 1744-A(2) of the act is amended to read:

Section 1744-A. School district and intermediate unit

responsibilities.

An intermediate unit or a school district in which a student

20210HB0001PN1948 - 34 -

enrolled in a cyber charter school resides shall do all of the

following:

* * *

[(2) Provide the cyber charter school with reasonable

access to its facilities for the administration of

standardized tests required under this subdivision.]

* * *

Section 11. Section 2006-B of the act is amended by adding

subsections to read:

Section 2006-B. Limitations.

* * *

(a.1) Amount.--

(1) Notwithstanding the provisions of subsection (a),

the total aggregate amount of all tax credits approved for

contributions from business firms to scholarship

organizations, educational improvement organizations and pre-

kindergarten scholarship organizations shall not exceed

$250,000,000 in fiscal year 2020-2021.

(i) No less than $185,000,000 shall be used to

provide tax credits for contributions from business firms

to scholarship organizations.

(ii) No less than $50,000,000 shall be used to

provide tax credits for contributions from business firms

to educational improvement organizations.

(iii) The total aggregate amount of all tax credits

approved for contributions from business firms to pre-

kindergarten scholarship organizations shall not exceed

$15,000,000 or 10% of the total aggregate amount under

this paragraph.

(2) The total aggregate amount of all tax credits

20210HB0001PN1948 - 35 -

approved for contributions from business firms to opportunity

scholarship organizations shall not exceed $150,000,000 in a

fiscal year.

(a.2) Increases.--

(1) Beginning in fiscal year 2021-2022, in any fiscal

year in which the total aggregate amount of tax credits

approved under subsection (a)(1) for the prior fiscal year is

equal to or greater than 90% of the total aggregate amount of

all tax credits available under subsection (a)(1) for the

prior fiscal year, the total aggregate amount of all tax

credits available under subsection (a)(1) shall increase by

25%. The department shall publish on its publicly accessible

Internet website the total aggregate amount of all tax

credits available when the amount is increased under this

paragraph.

(2) Beginning in fiscal year 2021-2022, in any fiscal

year in which the total aggregate amount of tax credits

approved under subsection (a)(2) for the prior fiscal year is

equal to or greater than 90% of the total aggregate amount of

all tax credits available under subsection (a)(2) for the

prior fiscal year, the total aggregate amount of all tax

credits available under subsection (a)(2) shall increase by

25%. The department shall publish on its publicly accessible

Internet website the total aggregate amount of all tax

credits available when the amount is increased under this

paragraph.

* * *

Section 12. The act is amended by adding an article to read:

ARTICLE XX-K

EDUCATION OPPORTUNITY ACCOUNTS

20210HB0001PN1948 - 36 -

Section 2001-K. Short title.

This article shall be known and may be cited as the Education

Opportunity Account Act.

Section 2002-K. 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:

"Applicant." A parent who applies for an education

opportunity account under section 2003-K(b) on behalf of an

eligible student.

"Average per pupil expenditure." The aggregate current

expenditures of the school district divided by the total number

of children enrolled in the district for whom they provide free

public education.

"Department." The Department of Education of the

Commonwealth.

"Education opportunity account." A spending account

established and administered by the State Treasury, and

controlled by a parent, for a school-age child with money that

may be spent on a qualified education expense as provided under

section 2005-K.

"Eligible student." A school-age child who meets the

requirements under section 2003-K(b) and whose parent has

entered into an agreement under section 2003-K(d).

"Institution of higher education." As defined under section

118(c).

"Nonpublic school." A school, other than a public school,

located in this Commonwealth where a Commonwealth resident may

legally fulfill the compulsory attendance requirements of this

act, that complies with section 1521 and meets the applicable

20210HB0001PN1948 - 37 -

requirements of Title VI of the Civil Rights Act of 1964 (Public

Law 88-352, 78 Stat. 241).

"Parent." An individual who:

(1) is a resident of this Commonwealth; and

(2) either:

(i) has legal custody or guardianship of a student;

(ii) keeps in the individual's home a student and

supports the student gratis as if the student were a

lineal descendant of the individual.

"Participating entity." The following:

(1) Any of the following where a school-age child

receives instruction or support under section 2003-K(d):

(i) A nonpublic school for grades kindergarten

through 12, or a combination of grades.

(ii) An institution of higher education.

(iii) A distance learning program.

(iv) A tutor who is a teacher licensed in any state,

has tutored or taught at an eligible postsecondary

institution, has tutored or taught at an eligible

nonpublic school or is a subject matter expert or a tutor

or tutoring agency otherwise approved by the department.

(v) A counselor who is licensed or accredited by the

the Commonwealth to work with school-age children.

(vi) A provider of home education services or

curriculum that adheres to education laws of the

Commonwealth.

(2) The term does not include a parent of a school-age

child to the extent that the parent provides educational

services directly to the school-age child.

20210HB0001PN1948 - 38 -

"Program." The Education Opportunity Account Program

established under section 2003-K(a).

"Public school." A school district, charter school, cyber

charter school, regional charter school, intermediate unit or

area career and technical school.

"Receiving school district." A school district in which a

potential transfer student does not reside and a potential

transfer student would like to attend.

"Resident school district." The school district in which a

school-age child resides.

"School-age child." A child enrolled in kindergarten through

grade 12 and who resides in this Commonwealth.

"Sending school district." The school district in which a

potential transfer student resides.

"Student with special needs." A child who:

(1) is subject to an individualized education program

under the Individuals with Disabilities Education Act (Public

Law 91-230, 20 U.S.C. § 1400 et seq.) and 22 Pa. Code Ch. 14

(relating to special education services and programs);

(2) is subject to a section 504 service agreement under

section 504 of the Rehabilitation Act of 1973 (Public Law 93-

112, 29 U.S.C. § 701 et seq.) and 22 Pa. Code Ch. 15

(relating to protected handicapped students);

(3) is subject to a gifted individualized education plan

under 22 Pa. Code Ch. 16 (relating to special education for

gifted students);

(4) is eligible for early intervention services under 55

Pa. Code § 4226.22 (relating to eligibility for early

intervention services; or

(5) meets the definition of "child with a disability"

20210HB0001PN1948 - 39 -

under the Individuals with Disabilities Education Act or who

meets the definition of a "handicapped person" under section

504 of the Rehabilitation Act of 1973 and its implementing

regulations under 34 CFR 104.3(j) (relating to definitions).

The term includes a student for whom an evaluation is pending

under either the Individuals with Disabilities Education Act

or Rehabilitation Act of 1973.

Section 2003-K. Establishment, application and agreement.

(a) Establishment.--The Education Opportunity Account

Program is established as a program of the department.

(b) Individuals who may apply.--A parent may apply for an

education opportunity account for any school-age child in this

Commonwealth.

measures 8.5 inches by 11 inches and may be filled out and

submitted through the department's publicly accessible Internet

website.

(d) Review and approval.--The department shall review the

application to determine if the applicant meets the requirements

under subsection (b). If the requirements have been met, the

department shall approve the application and enter into an

agreement with the applicant. The agreement shall provide that:

(1) The school-age child:

(i) withdraw from public school; and

(ii) receive instruction in this Commonwealth from a

participating entity and/or enroll in a home education

program as provided in section 1327.1 for the school year

for which the agreement applies.

(2) The school-age child shall not accept a scholarship

in the educational improvement tax credit program under

20210HB0001PN1948 - 40 -

Article XX-B or the opportunity scholarship tax credit

program under Article XX-B.

(3) The parent receive a grant on behalf of the school-

age child, in the form of money deposited under section 2004-

K in the education opportunity account.

(4) The money in the education opportunity account be

expended only as authorized under this article.

(e) Education opportunity account.--The following shall

apply:

(1) If an agreement is entered into under subsection

(d), an education opportunity account shall be established.

The education opportunity account shall be administered by

the State Treasury under this article.

(2) Failure of a parent to enter into an agreement under

subsection (d) for a school year shall not preclude the

parent from entering into an agreement for a subsequent

school year if the school-age child is eligible under

subsection (b).

(f) Term of agreement.--Except as otherwise provided under

this article, an agreement entered into under subsection (d)

shall be valid for one school year.

(g) Termination.--The following shall apply:

(1) Notwithstanding subsection (h), an agreement entered

into under subsection (d) may be terminated early.

(2) If an agreement is terminated early by either the

parent or the department, all available money in the

education opportunity account shall revert to the State

Treasury and be used in the resident school district.

(h) Automatic termination.--The following shall apply:

(1) An agreement entered into under subsection (d) shall

20210HB0001PN1948 - 41 -

terminate automatically if the school-age child no longer

resides in this Commonwealth.

(2) The parent shall notify the department if the child

no longer resides in this Commonwealth within 15 days of the

change of residence. After the child's parent has notified

the department, money remaining in the education opportunity

account shall revert to the State Treasury and be used in the

resident school district.

(i) Renewal.--The following shall apply:

(1) Subject to subsection (l), an agreement entered into

under subsection (d) may be renewed for each school year for

the school-age child.

(2) Failure of a parent to renew an agreement for a

school year shall not preclude a parent from renewing the

agreement for a subsequent school year if the school-age

child remains eligible under subsection (b).

(j) Number.--A parent may enter into separate agreements

under subsection (d) for each school-age child of the parent.

Not more than one education opportunity account may be

established for a school-age child.

(k) Explanation.--Upon entering into an agreement under

subsection (d) or renewing an agreement under subsection (i),

the department shall provide the parent with a written

explanation of the authorized uses of the money in the education

opportunity account and the responsibilities of the parent, the

department and the State Treasury under the agreement and this

article.

(l) Application and renewal period.--The following shall

apply:

(1) A parent may apply or seek renewal between January 1

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and April 1 for the following school year.

(2) The department shall notify parents and school

districts of approved applications by April 30.

Section 2004-K. Amount.

(a) General rule.--If a parent of an eligible student enters

into or renews an agreement under section 2003-K with the

department for a school year, the Secretary of Education shall

deposit a grant for that school year in the education

opportunity account of the eligible student. The amount of the

grant shall be as follows:

(1) For an eligible student who does not have a

disability, the grant amount shall be equal to the State

revenue received by school districts minus the State revenue

received for transportation divided by the State total

average daily membership.

(2) For an eligible student with special needs, the

grant amount shall be based on the category of disability by

which the resident school district is required to categorize

the eligible student for the purpose of the report required

under section 1372(8) as follows:

(i) For an eligible student in Category 1, multiply

the grant amount in paragraph (1) by 1.51.

(ii) For an eligible student in Category 2, multiply

the grant amount in paragraph (1) by 3.77.

(iii) For an eligible student in Category 3A and 3B,

multiply the grant amount in paragraph (1) by 7.46.

(3) For an eligible student receiving a grant, the

amount of basic education funding and other subsidies paid by

the department to the resident school district shall be

reduced by the grant amount calculated for the student.

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(4) If a school district's basic education funding and

other subsidies are reduced under this section, the resident

school district shall include the grant recipient in the

resident school district's average daily membership for the

purpose of calculating school subsidies.

(b) Installments.--The State Treasury shall deposit the

money for each grant in quarterly installments under a schedule

determined by the State Treasury.

remaining in an education opportunity account:

(1) For money remaining in an education opportunity

account at the end of a school year, the money may be carried

forward to any other school year of the eligible student if

the agreement entered into under section 2003-K(d) is renewed

for the other school year.

(2) Subject to paragraph (3), money remaining in an

education opportunity account when an agreement entered into

under section 2003-K(d) is not renewed or is terminated shall

revert to the State Treasury and be used in the resident

school district.

(3) Money remaining in an education opportunity account

after the school-age child graduates from high school may be

used for qualified education expenses under section 2005-K

for up to two years after the date of high school graduation.

After the two-year time period under this paragraph has

expired, money remaining in the education opportunity account

shall revert to the General Fund.

Section 2005-K. Qualified education expenses.

(a) General rule.--Money deposited in an education

opportunity account may be used to pay for any of the following

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expenses incurred by or associated with the school-age child:

(1) Tuition, fees and uniforms required by a

participating entity.

(2) Textbooks or uniforms required by a participating

entity.

(3) Fees for tutoring or other teaching services

provided by a participating entity.

(4) Fees for a nationally norm-referenced test, advanced

placement or similar examination or standardized examination

required for admission to an institution of higher education

and career and technical education examination fees.

(5) Curriculum, textbooks or other instructional

materials.

(6) Hardware, software and Internet connectivity

associated with instruction or any of the qualifying expenses

described in this subsection.

(7) If the eligible student is a student with a

disability, fees for special instruction or special services

provided to the eligible student, including occupational,

physical, speech and behavioral therapies.

(8) Costs associated with evaluation and identification

of special needs.

(9) Other valid educational expenses approved by the

department.

(b) Prohibitions.--A participating entity that receives a

payment for qualified education expenses authorized under

subsection (a) may not:

(1) Refund a portion of the payment directly to the

parent who made the payment.

(2) Rebate or otherwise directly share a portion of the

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payment with the parent who made the payment.

for an item that is being returned or an item or service that

has not been provided directly to the education opportunity

account of the school-age child from which payment for the item

or service was made.

(d) Payment system.--The following shall apply:

(1) The State Treasury shall develop a system that

enables a parent to pay for services provided by

participating entities under the program by electronic money

transfer, including electronic payment systems or other means

of electronic payment that the State Treasury determines to

be commercially viable and cost effective.

(2) The State Treasury may not adopt a system that

exclusively requires a parent to be reimbursed for out-of-

pocket expenses.

(e) Source of payment.--The following shall apply:

(1) An individual may not deposit personal money into or

otherwise make gifts or contributions of private money to an

education opportunity account.

(2) Nothing in this section shall be construed to

prohibit a parent or school-age child from paying for

qualified education expenses from a source other than the

education opportunity account.

Section 2006-K. Audits and penalties.

(a) Audit.--The State Treasury may provide for audits of an

education opportunity account as the State Treasury determines

necessary.

(b) Penalties.--If the State Treasury determines that money

in an education opportunity account has been expended for an

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expense other than a qualified education expense under section

2005-K(a), the State Treasury may do any of the following:

(1) Freeze or dissolve the education opportunity

account, subject to regulations adopted by the State Treasury

providing for notice of the action and opportunity to respond

to the notice.

(2) Refer the matter to the Attorney General or district

attorney of the county in which the parent resides for

investigation and criminal prosecution, if appropriate.

(3) Impose a civil penalty equal to 300% of the amount

in the education opportunity account prior to the fraudulent

use.

(4) Disqualify the parent from future participation in

the program.

Section 2007-K. Accountability standards for a participating

entity.

(a) General rule.--A participating entity shall:

(1) Comply with all health and safety laws or codes that

apply to the participating entity.

(2) Hold a valid occupancy permit if required by the

municipality in which the participating entity is located.

(3) Comply with the nondiscrimination policies set forth

in section 1977 of the Civil Rights Act of 1991 (Public Law

102-166, 105 Stat. 1071) and with section 1521.

(4) Comply with the provisions of sections 111 and

111.1.

(b) Financial accountability standards.--The following shall

apply:

(1) A participating entity shall provide parents with a

receipt for all qualifying expenses incurred by the

20210HB0001PN1948 - 47 -

participating entity.

(2) The department may require a participating entity

that expects to receive at least $10,000 in payments from

education opportunity accounts during the school year to file

financial viability documentation. The financial viability

documentation may include:

(i) a surety bond payable to the Commonwealth in an

amount equal to the aggregate amount of money from the

education opportunity accounts expected to be paid during

the school year on behalf of eligible students admitted

at the participating entity; or

(ii) financial information that demonstrates that

the participating entity has the ability to pay an

aggregate amount equal to the amount of money from the

educational opportunity accounts expected to be paid

during the school year on behalf of eligible students

admitted to the participating entity.

apply:

(1) A parent of an eligible student shall ensure that

the department is informed of the eligible student's

graduation from high school.

(2) The department shall:

(i) Ensure compliance with all student privacy laws,

including the Family Educational Rights and Privacy Act

of 1974 (Public Law 90-247, 20 U.S.C. § 1232g).

(ii) Administer an annual parental satisfaction

survey that shall ask parents of eligible students

participating in the program to express:

(A) The parent's satisfaction with the program.

20210HB0001PN1948 - 48 -

(B) The number of years the eligible student has

participated in the program.

or issues that the department determines would elicit

information about the effectiveness of the program.

(d) Participating entity autonomy.--The following shall

apply:

(1) A participating entity shall be autonomous and may

not be an agent of the department or the Commonwealth.

(2) The department or any other State agency may not

regulate the educational program of a participating entity

that accepts money from an education opportunity account.

(3) The establishment of the program may not be

construed to expand the regulatory authority of the

Commonwealth, the officers of the Commonwealth or any school

district to impose any additional regulation of a

participating entity beyond those necessary to enforce the

requirements of the program.

Section 2008-K. Bar of certain participating entities.

(a) General rule.--The department may bar a participating

entity from participation in the program if the department

establishes that the participating entity has:

(1) routinely failed to comply with the accountability

standards established in section 2007-K; or

(2) failed to provide an eligible student with the

educational services funded by the eligible student's

education opportunity account.

(b) Notice.--If the department bars a participating entity

from participation in the program, the department shall post the

decision on the department's publicly accessible Internet

20210HB0001PN1948 - 49 -

website. A participating entity may appeal the department's

decision under this section.

Section 2009-K. Duties of resident school districts.

(a) School records.--A resident school district shall

provide a participating entity that has admitted an eligible

student participating in the program with a complete copy of the

student's school records immediately upon the student's

enrollment or when services in the participating entity begin,

subject to the Family Educational Rights and Privacy Act of 1974

(Public Law 90-247, 20 U.S.C. § 1232g).

(b) Transportation.--A resident school district shall

provide transportation for an eligible student to and from the

participating entity under the same conditions as the resident

school district provides transportation of other resident

students to nonpublic schools under section 1361. The resident

school district shall qualify for State transportation

reimbursement for each eligible student transported.

Section 2010-K. Legal proceedings.

(a) Liability.--No liability shall arise on the part of the

agency, the Commonwealth or a public school or school district

based on the award or use of an education opportunity account

under this article.

(b) Challenges.--If any part of this article is challenged

in a State court as violating either the Constitution of the

United States or the Constitution of Pennsylvania, parents of

eligible students and students who previously had an education

opportunity account shall be permitted to intervene as of right

in the lawsuit for the purposes of defending the Education

Opportunity Account Program's constitutionality. For the

purposes of judicial administration, a court may require that

20210HB0001PN1948 - 50 -

all parents file a joint brief but may not require all parents

to join a brief filed on behalf of a named State defendant.

application thereof to any person or circumstance is held

invalid, the invalidity shall not affect other provisions or

applications of this article which can be given effect without

the invalid provision or application, and to this end the

provisions of this article are declared to be severable.

Section 2011-K. Listing of participating entities.

The department shall annually post on the department's

publicly accessible Internet website a listing of all

participating entities.

Section 2012-K. Regulations.

The State Treasury and the department shall jointly develop

guidelines as necessary for the administration of this article

within 60 days of the effective date of this section.

Section 13. All acts and parts of acts are repealed insofar

as they are inconsistent with this act.

Section 14. This act shall take effect as follows:

(1) The addition of section 130 of the act shall take

effect in 180 days.

(2) The amendment of sections 1715-A, 1722-A and 1744-A

of the act shall take effect in 60 days.

(3) The remainder of this act shall take effect

immediately.

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