Trial Engrossment of Amendment A01604 to House Bill 1422 P.N. 1704, Regular Session 2023-2024

A01604

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1422

Session of

2023

INTRODUCED BY CIRESI, MADDEN, ISAACSON, SMITH-WADE-EL,

SCHLOSSBERG, HANBIDGE, WEBSTER, GUENST, SANCHEZ, D. WILLIAMS,

HOHENSTEIN, HADDOCK, PROBST, HOWARD, DELLOSO, ADAMS, HILL-

EVANS, KAZEEM, MALAGARI, PIELLI, SALISBURY, BURNS,

SHUSTERMAN, OTTEN, VITALI, RABB, FRIEL, CURRY, KENYATTA,

STURLA, BOROWSKI AND O'MARA, JUNE 22, 2023

REFERRED TO COMMITTEE ON EDUCATION, JUNE 22, 2023

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 advertising and sponsorships; in charter schools, further

providing for definitions and for funding for charter

schools, providing for funding for cyber charter schools, for

cyber charter school requirements, for powers and composition

of board of trustees and for educational management service

providers, further providing for powers and duties of

department and for assessment and evaluation, providing for

annual reports and public reporting and for fund balance

limits, further providing for cyber charter school

requirements and prohibitions and for school district and

intermediate unit responsibilities, providing for access to

other schools' facilities, further providing for

establishment of cyber charter school, providing for

renewals, for charter amendments and for causes for

nonrenewal, revocation or termination, further providing for

State Charter School Appeal Board review, for cyber charter

school application and for enrollment and notification,

providing for enrollment parameters and for enrollee wellness

checks and further providing for applicability of other

provisions of this act and of other acts and regulations.

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 advertising; in pupils and attendance, providing for

transfer of attendance records to another school entity or

nonpublic school; and, in charter schools, further providing

for definitions, for charter school requirements, for powers

of board of trustees, for establishment of charter school,

for contents of application and for term and form of charter,

providing for amendments, further providing for facilities,

for enrollment and for tort liability, providing for fund

balance limits and further providing for cyber charter school

requirements and prohibitions, for school district and

intermediate unit responsibilities and for establishment of

cyber charter school.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

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

section to read:

Section 130. Advertising and Sponsorships.--(a) A paid

media advertisement by a public school entity that refers to the

cost of tuition, technology, transportation or other expenses

shall not advertise those expenses as free, and any reference to

tuition, technology, transportation or other expenses must

indicate that the cost is covered by taxpayer dollars.

(b) A public school entity shall be prohibited from paying

for or utilizing any other form of consideration to sponsor a

public event.

shall report to the department of education the entity's total

expenditures for paid media advertisements and sponsorships of

public events for the 2022-2023 school year. The department

shall compile the results of the reporting and make the results

available on the department's publicly accessible Internet

website by December 1, 2024.

(d) For purposes of this section, the following words and

phrases shall have the following meanings:

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

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radio, newspaper, magazine or movie theater advertisement,

billboard, bus poster or Internet-based or other commercial

method that may promote enrollment in a public school entity.

"Public event." An activity, event or gathering that members

of the public may attend, has been publicly announced or

publicized in advance, and for which an admission fee or cost

may be required. The term includes concerts, performances,

sporting events, fairs, festivals, parades, performances and

other exhibitions.

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

school entity as defined in section 1703-A, intermediate unit or

area career and technical school.

Section 2. Section 1703-A introductory paragraph and the

definitions of "appeal board," "chief executive officer" and

"school district of residence" of the act are amended and the

section is amended by adding definitions to read:

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

"Administrator" shall include the chief administrator of a

charter school entity and all other employes of a charter school

entity who by virtue of their positions exercise management or

operational oversight responsibilities.

* * *

"Appeal board" shall mean the State Charter School Appeal

Board established [by this article] under section 1721-A.

* * *

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

charter school, cyber charter school or multiple charter school

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organization.

"Charter school foundation" shall mean a nonprofit

organization qualified as Federally tax exempt 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 or resources

or otherwise serves to support a charter school entity.

"Chief [executive officer] administrator" shall mean an

individual appointed by the board of trustees to oversee and

manage the operation of [the] a charter school entity, but who

shall not be deemed a professional staff member under this

article.

* * *

"Compensation" shall include money or other remuneration

received from a charter school entity.

* * *

"Educational management service provider" shall mean a

nonprofit or for-profit charter management organization,

education management organization, school design provider,

business manager or any other entity or individual that enters

into a contract or agreement with a charter school entity to

provide instructional, curricular or educational design,

administrative or business services, comprehensive management or

personnel functions or to implement the charter. The term shall

include the subsidiaries or subcontractors of an individual or

entity. The term shall not include a charter school foundation.

"Eligible applicant" shall mean a student who is seeking to

enter a grade level offered by the charter school entity and

meets the requirements of 22 Pa. Code §§ 11.12 (relating to

school age), 11.13 (relating to compulsory school age), 11.14

(relating to admission to kindergarten when provided), 11.15

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(relating to admission of beginners), 11.16 (relating to early

admission of beginners) and 12.1 (relating to free education and

attendance) and student residency requirements.

"Emergency" shall mean a manmade or natural disaster. The

term includes a fire, flood, environmental hazard, damage to a

school building or other circumstance that impacts or could

impact the health or safety of students or staff or renders all

or part of a charter school facility unfit for use or

occupation.

"Family member" shall mean a parent, stepparent, child,

stepchild, spouse, domestic partner, brother, sister,

stepbrother, stepsister, grandparent, grandchild, parent-in-law,

brother-in-law, sister-in-law, aunt, uncle, or first cousin.

* * *

"Multiple charter school organization" shall mean a public,

nonprofit corporation under the oversight of a single board of

trustees and a chief administrator that operates two (2) or more

charter schools under section 1729.1-A.

"Nonrelated" shall mean an individual who is not a family

member.

"Public hearing" shall mean a meeting held pursuant to 65

Pa.C.S. Ch. 7 (relating to open meetings) where the contemplated

action is considered and opportunities for the public to comment

on the contemplated action are provided during the meeting.

* * *

"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).

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* * *

Section 3. Section 1725-A(a) introductory paragraph of the

act is amended to read:

Section 1725-A. Funding for Charter Schools.--(a) [Funding]

Except as provided in section 1725.1-A, funding for a charter

school shall be provided in the following manner:

* * *

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

Section 1725.1-A. Funding for Cyber Charter Schools.--(a)

Notwithstanding section 1725-A(a)(2) and (3), per-student

funding amounts for students attending a cyber charter school

shall be calculated in accordance with this section.

(b) A cyber charter school may not charge tuition for a

student attending a cyber charter school. Beginning in the 2024-

2025 school year, a cyber charter school shall be paid by a

student's school district of residence using the Statewide Cyber

Charter School Tuition Rate.

for non-special education students, a cyber charter school shall

receive for each student enrolled eight thousand dollars

($8,000). This amount shall be the Statewide Cyber Charter

School Tuition Rate.

(d) Beginning in the 2027-2028 school year and every three

(3) years thereafter, the Statewide Cyber Charter School Tuition

Rate shall be adjusted by the average annual property tax rate

increase for all school districts for the most recent three (3)

years. The department shall develop guidelines for determining

the average annual property tax rate increase.

(e) On or before April 30, 2027, and by April 30 of each

third year thereafter, the department shall calculate and post

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on its publicly accessible Internet website the Statewide Cyber

Charter School Tuition Rate payable by a student's school

district of residence under subsection (d) for the next school

year.

(f) For special education students, a cyber charter school

shall receive the Statewide Cyber Charter School Tuition Rate

adjusted as follows:

(1) For each special education student enrolled in the cyber

charter school, multiply the Statewide Cyber Charter School

Tuition Rate by one and sixty-four hundredths (1.64).

(2) If the cyber charter school determines that the annual

expenditure for providing special education specific services

and programs to an enrolled student is likely to meet or exceed

the amount specified under section 1372(8) for Category 2, the

cyber charter school may apply to the department for an increase

in the Statewide Cyber Charter School Tuition Rate for the

student.

(3) If the department determines that the annual expenditure

for providing special education specific services and programs

to an enrolled student is likely to meet or exceed the amount

specified in section 1372(8) for Category 2, the department

shall direct the school district to pay the Statewide Cyber

Charter School Tuition Rate for the student adjusted as follows:

(i) for each special education student enrolled in the cyber

charter school for which the annual expenditure is in Category

2, multiply the Statewide Cyber Charter School Tuition Rate by

three and eight hundredths (3.08); or

(ii) for each special education student enrolled in the

cyber charter school for which the annual expenditure is in

Category 3, multiply the Statewide Cyber Charter School Tuition

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Rate by six and thirty-four hundredths (6.34). For purposes of

this subparagraph, Category 3 shall include students in

Categories 3A and 3B under section 1372(8).

(g) The per-student amounts required under subsection (f)

shall be calculated by the department and posted on its publicly

accessible Internet website and shall be paid by the school

district of residence of each student.

(h) In accordance with guidelines developed by the

department, to be eligible to receive funding for special

education students under subsection (f)(2) and (3), the cyber

charter school shall provide the department with appropriate

documentation on the likely annual expenditure for providing an

education to the student.

(i) The weights provided under subsection (f) shall be

updated whenever the weights under section 2509.5(bbb)(2) for

the respective categories are adjusted for school districts.

(j) The calculation made under subsection (f) may not result

in a payment that exceeds the maximum amount within the

category's dollar range and the calculation under subsection (f)

(3)(ii) may not result in a payment that exceeds the actual

annual expenditure of providing an education to the student. If

the actual annual expenditure of providing special education

specific services and programs to a student in Category 3 is

less than the amount the cyber charter school received for the

student, the cyber charter school shall return to the school

district of residence any overage the cyber charter school

received for the student no later than August 1 of each year.

Section 1740-A. Cyber Charter School Requirements.

(a) General rule.--Cyber charter schools shall be required

to comply with the following provisions:

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(1) Except as otherwise provided in this article, a

cyber 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 cyber charter schools. Cyber charter schools

are not exempt from statutes applicable to public schools

other than this act.

(2) A cyber charter school shall be accountable to the

parents, guardians, families, the public, the department and

the Commonwealth, with the delineation of that accountability

reflected in the charter. Strategies for meaningful parent,

guardian, family and community involvement shall be developed

and implemented by each cyber charter school.

(3) A cyber charter school shall not unlawfully

discriminate in admissions, hiring or operation.

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

operations.

(5) (i) Subject to subparagraph (ii), a cyber charter

school shall not provide any religious instruction, nor

shall it display religious objects and symbols on the

premises of the cyber charter school.

(ii) It shall not be a violation of this paragraph

for a cyber charter school to utilize a sectarian

facility:

(A) if the cyber charter school provides for

discrete 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 cyber

charter school are covered or removed; or

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or its common areas contain religious symbols and

objects.

(6) A cyber charter school shall not advocate unlawful

behavior.

(7) A cyber charter school shall participate in the

Pennsylvania State Assessment System as provided for in 22

Pa. Code Ch. 4 (relating to academic standards and

assessment), or subsequent regulations promulgated to replace

22 Pa. Code Ch. 4, in the same manner as school districts.

(8) At the elementary level, a cyber charter school

shall provide a minimum of 180 days of instruction or 900

hours per year of instruction. At the secondary level, a

cyber charter school shall provide a minimum of 990 hours per

year of instruction.

(9) Boards of trustees and contractors of cyber 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."

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

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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.

(10) Trustees of a cyber charter school shall be public

officials for the purposes of 65 Pa.C.S. Ch. 11 (relating

to ethics standards and financial disclosure), and each

trustee shall file a statement of financial interests for

the preceding calendar year with the secretary of the

board of trustees of the cyber charter school, the State

Ethics Commission and the department not later than May 1

of each year that members hold the position and of the

year after a member leaves the position. In the event

that the trustee was appointed or selected after May 1,

the trustee shall file a statement of financial interests

in accordance with this clause within 30 days of

appointment or selection. All members of the board of

trustees of a cyber charter school shall take the oath of

office as required under section 321 before entering upon

the duties of their office.

(b) Employees.--

(1) An administrator for a cyber charter school shall be

an employee of the cyber charter school and shall not receive

compensation from another charter school entity, from an

educational management service provider, from a charter

school foundation or from a company that provides management

or other services to another charter school entity.

(2) An administrator for a cyber charter school shall be

a public employee under 65 Pa.C.S. Ch. 11 and shall file a

statement of financial interest for the preceding calendar

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year with the secretary of the board of trustees of the cyber

charter school not later than May 1 of each year that the

person holds the position and of the year after the person

leaves the position. In the event that the administrator was

appointed after May 1, the administrator shall file a

statement of financial interest in accordance with this

clause within 30 days of appointment.

(3) An administrator of a cyber charter school or family

member of an administrator may not serve as a voting member

of the board of trustees of the cyber charter school that

employs the administrator or of a charter school foundation

that supports the cyber charter school.

(4) An administrator of a cyber charter school may not

participate in the selection, award or administration of a

contract if the administrator has a conflict of interest as

the term is defined in 65 Pa.C.S. § 1102 (relating to

definitions). A contract made in violation of this paragraph

shall be voidable by the board of trustees of the cyber

charter school.

(5) An administrator shall be immediately dismissed upon

conviction or upon a plea of guilty or nolo contendere 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.

(6) Charter school entities shall use the revised rating

system specified in Article XI Subarticle (c.1) to evaluate

employees serving as principals or school leaders, classroom

teachers and nonteaching professional employees.

Section 1740.1-A. Powers and Composition of Board of Trustees.

(a) General rule.--The board of trustees of a cyber charter

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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. The board shall have the authority to employ,

discharge and contract with necessary professional and

nonprofessional employees subject to the school's charter and

the provisions of this article.

(b) Prohibition.--No member of a local board of school

directors of a school entity shall serve on the board of

trustees of a cyber charter school.

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

(d) Board .--

(1) An individual shall be prohibited from serving as a

voting member of the board of trustees of a cyber charter

school under any of the following conditions:

(i) If the individual or a family member of the

individual is employed by or receives compensation from

the cyber charter school.

(ii) If the individual is employed by either:

(A) the board of trustees or directors of a

charter school foundation that supports the cyber

charter school; or

(B) the board of trustees or directors of an

educational management service provider that

contracts with the cyber charter school.

(iii) The individual serves as a voting member of

the board of trustees of another charter school entity.

(2) A member of the board of trustees of a cyber charter

school may not participate in the selection, award or

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administration of any contract if the member has a conflict

of interest as the term is defined in 65 Pa.C.S. § 1102

(relating to definitions).

(3) A member of the board of trustees of a cyber charter

school who in the discharge of the member's official duties

would be required to vote on a matter that would result in a

conflict of interest must abstain from voting and follow the

procedures required under 65 Pa.C.S. § 1103(j) (relating to

restricted activities).

(4) A member of the board of trustees of a cyber charter

school or family member of a member of a board of trustees of

a cyber charter school shall not, directly or through any

other individual, entity, partnership or corporation in which

the member holds stock or has a financial interest or other

organization, provide a loan, forbearance or forgiveness of a

loan or other debt, service or product or lease property to

the cyber charter school.

(5) A member of the board of trustees of a cyber charter

school who violates the provisions of 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.

(6) A contract made in violation of this subsection

shall be voidable by a court of competent jurisdiction.

(e) Compensation.--A member of the board of trustees of a

cyber charter school shall not be compensated for duties on the

board of trustees, except that the cyber charter school may

reimburse the members for reasonable expenses incurred in the

performance of their duties. A report detailing the reasons for

and amounts of reimbursements paid to each member of the board

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of trustees shall be made available upon request of any person,

including in response to a request under the act of February 14,

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

(f) Action .--

(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 but the members present may adjourn to some

stated time.

(2) The affirmative vote of a majority of all the voting

members of the board of trustees, duly recorded, showing how

each member voted, shall be required in order to take

official action.

(g) Composition.--

(1) The board of trustees of a cyber charter school

shall consist of a minimum of seven nonrelated voting

members. If a cyber charter school has fewer than seven

members serving on its board of trustees on the effective

date of this subsection, the cyber charter school shall,

within 60 days, appoint or select additional members to the

board of trustees to meet the minimum requirements of this

section.

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

subsection, the board of trustees shall include at least one

parent or guardian of a student enrolled in the cyber charter

school. The trustee appointed under this paragraph shall be

eligible to serve only so long as they have at least one

child enrolled in the cyber charter school. This subparagraph

shall not apply to a cyber charter school that serves

primarily adjudicated youth.

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