Trial Engrossment of Amendment A01697 to House Bill 1422 P.N. 1704, Regular Session 2023-2024

A01697

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; providing for Pennsylvania

Award for Student Success Scholarship Program; 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.

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,

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

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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 1.1. The act is amended by adding an article to

read:

ARTICLE XIV-C

PENNSYLVANIA AWARD FOR STUDENT

SUCCESS SCHOLARSHIP PROGRAM

Section 1401-C. Scope of article.

This article relates to the Pennsylvania Award for Student

Success Scholarship Program.

Section 1402-C. 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 participation in the

program under section 1404-C on behalf of an eligible student.

"Attendance boundary." As defined in section 2002-B.

"Department." The Department of Education of the

Commonwealth.

"Eligible student." A school-age child who:

(1) Is a resident of this Commonwealth.

(2) Has not received a high school diploma.

(3) Resides, as determined under section 1302, within

the attendance boundary of a low-achieving school or resided,

as determined under section 1302, within the attendance

boundary of a low-achieving school at the time the State

Treasury received written confirmation that the child

accepted an offer of enrollment under section 1404-C.

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(4) Lives in a household with a household income below

250% of the Federal poverty guidelines or lived in a

household with a household income below 250% of the Federal

poverty guidelines at the time the State Treasury received

written confirmation that the child accepted an offer of

enrollment under section 1404-C.

(5) Satisfies one of the following:

(i) Attended a public school in this Commonwealth in

the preceding school year.

(ii) Received a scholarship from the program in the

preceding school year.

(iii) Will attend kindergarten for the first time in

the next school year.

"Fund." The Pennsylvania Award for Student Success

Scholarship Fund established in section 1408-C.

"Kindergarten." A one-year formal educational program,

whether part time or full time, that occurs during the school

year immediately prior to first grade.

"Low-achieving school." As defined in section 2002-B.

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

school, located in this Commonwealth where a resident of this

Commonwealth may legally fulfill the compulsory attendance

requirements of this article.

"Parent." An individual who is a resident of this

Commonwealth and:

(1) has legal custody or guardianship of an eligible

student; or

(2) keeps in the individual's home an eligible student

and supports the student gratis as if the student were a

lineal descendant of the individual.

A01697 - 4 -

"Participating nonpublic school." A nonpublic school

offering a program of instruction for kindergarten through grade

twelve, or a combination of grades, that notifies the State

Treasury of the nonpublic school's desire to participate in the

program and provides certification to the State Treasury that

the nonpublic school meets the criteria under section 331.

"PASS scholarship account." A spending account established

and administered by the State Treasury, and directed by a parent

for a scholarship recipient, that may be used for tuition,

school-related fees and special education services fees to

attend a participating nonpublic school.

"Program." The Pennsylvania Award for Student Success

Scholarship Program established under section 1403-C(a).

"Public school." A school operated by a school district, an

intermediate unit, area career and technical school, a charter

school, regional charter school or cyber charter school.

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

eligible student resides.

"Scholarship." A scholarship that is awarded to an eligible

student under the program.

"Scholarship recipient." An eligible student that is awarded

a scholarship under the program.

"School-age child." A child enrolling in kindergarten or in

grade one through grade twelve.

"School-related fee." A fee charged by a participating

nonpublic school to all students for books, instructional

materials, technology equipment and services, uniforms,

activities and concurrent enrollment programs under Article XVI-

"School year." A school term as defined in section 102.

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"Special education services fee." A fee charged by a

participating nonpublic school for special education services

for a student with special needs as agreed to by the parent and

the participating nonpublic school.

"State Treasury." The Treasury Department of the

Commonwealth.

"Student with special needs." A child who is subject to an

individualized education program under 20 U.S.C. Ch. 33

(relating to education of individuals with disabilities) and 22

Pa. Code Ch. 14 (relating to special education services and

programs).

Section 1403-C. Pennsylvania Award for Student Success

Scholarship Program.

(a) Establishment.--Beginning with the 2024-2025 school

year, the Pennsylvania Award for Student Success Scholarship

Program is established as a program in the State Treasury to

provide scholarships to help eligible students pay tuition,

school-related fees and special education services fees for

attendance at a participating nonpublic school. The program may

be referred to as the PASS Scholarship Program.

(b) Notice to parents.--

(1) Within 15 days of receipt of a notice under section

2010-B, each year thereafter, a school district with at least

one school designated as a low-achieving school shall notify

the parent of a student who is attending or residing within

the attendance boundary of a low-achieving school during the

school year of the school's designation.

(2) The notice shall be in a form provided by the State

Treasury, in consultation with the department, and shall

provide the following information regarding the program:

A01697 - 6 -

(i) A description of the program.

(ii) Instructions for obtaining information about

applying for a scholarship under the program.

(iii) A list of schools in the school district that

have been designated as low-achieving schools.

(iv) Notice of the parent's responsibilities

regarding application to a participating nonpublic school

if the parent seeks to enroll an eligible student in a

participating nonpublic school.

(3) The notice shall be posted on the school district's

publicly accessible Internet website.

submit a notice to parents under subsection (b) shall provide

the State Treasury with a list of students whose parents were

provided the notice. The notification shall be made in a manner

and form established by the State Treasury.

Section 1404-C. Application.

(a) Application form.--By March 1, 2024, the State Treasury

shall develop an application form that can be accessed from and

submitted electronically on the State Treasury's publicly

accessible Internet website.

(b) Application and approval process.--

(1) By April 1, 2024, and by April 1 of each year

thereafter, the applicant may apply to the State Treasury for

a scholarship for the following school year according to

guidelines developed by the State Treasury under section

1409-C. An application shall be approved by the State

Treasury if the student meets the eligibility requirements of

this article.

(1.1) A renewal application shall be approved by the

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State Treasury if the student meets the eligibility

requirements of this article, notwithstanding the residence

and income criteria specified in paragraphs (3) and (4) of

the definition of "eligible student" in section 1402-C.

(2) By May 1, 2024, and by May 1 of each year

thereafter, the State Treasury shall notify the applicant

whether a scholarship will be awarded for the following

school year.

(3) For the 2024-2025 school year, scholarships shall be

awarded on a first-come, first-served basis considering money

available in the fund.

(4) For the 2025-2026 school year and each school year

thereafter, priority for scholarships shall be given to prior

year scholarship recipients. New applicants shall be awarded

a scholarship on a first-come, first-served basis considering

money available in the fund.

(5) Upon notification by the State Treasury that a

scholarship has been awarded, the applicant shall apply for

enrollment of the scholarship recipient directly to the

participating nonpublic school under an application procedure

developed by the participating nonpublic school.

(6) By June 1, 2024, and by June 1 each year thereafter,

a participating nonpublic school shall provide written

confirmation to the State Treasury of scholarship recipients

who have accepted an offer of enrollment for the following

school year and provide the State Treasury with the amounts

to be charged to the scholarship recipient for tuition,

school-related fees and special education services fees. The

notification shall be made in a manner and form established

by the State Treasury.

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(7) The State Treasury may establish a waiting list for

eligible students with approved applications and who did not

receive awards due to availability of money in the fund and,

if, after July 1, 2024, and by July 1 each year thereafter,

additional money is available in the fund for scholarships,

may award scholarships to the eligible students on a first-

come, first-served basis.

Section 1405-C. Agreement.

(a) Authorization.--Upon receipt of written confirmation

that the scholarship recipient has accepted an offer of

enrollment under section 1404-C, the State Treasury shall enter

into or renew an agreement with the applicant. The agreement

shall provide the following:

(1) The scholarship recipient shall enroll in a

participating nonpublic school for the school year for which

the agreement applies.

(2) A certain sum of money shall be deposited into a

PASS scholarship account under section 1406-C on behalf of

the scholarship recipient.

(3) The money in the PASS scholarship account may be

expended only as authorized under this article.

(4) The parent shall notify the State Treasury if the

scholarship recipient no longer resides in this Commonwealth

or withdraws or is forced to withdraw from the participating

nonpublic school within 15 days of the change of residency or

withdrawal.

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

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

shall be valid for one school year.

A01697 - 9 -

(1) An agreement entered into under subsection (a) may

be terminated early by the parent for any reason.

(2) An agreement entered into under subsection (a) shall

be terminated by the State Treasury for the following

reasons:

(i) The parent is found to have engaged in

fraudulent misuse of the PASS scholarship account. In

such case, the scholarship recipient shall be ineligible

for future participation in the program. The parent may

appeal the State Treasury's decision regarding

termination and student eligibility within 30 days of

issuance of the decision. The appeal shall be governed by

2 Pa.C.S. Chs. 1 (relating to general provisions), 5

(relating to practice and procedure) and 7 (relating to

judicial review).

(ii) The scholarship recipient no longer resides in

this Commonwealth.

(iii) The scholarship recipient withdraws or is

forced to withdraw from a participating nonpublic school

prior to the completion of the school year.

(3) If an agreement is terminated early under this

subsection, the following shall apply:

(i) All available money in the PASS scholarship

account shall revert to the fund.

(ii) The participating nonpublic school shall repay

to the State Treasury for deposit into the fund the full

amount of the scholarship payment, reduced on a pro rata

basis by the tuition, school related fees and special

education services fees owed for the portion of the

school year in which the scholarship recipient was

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enrolled.

(iii) The participating nonpublic school may not

require a parent to reimburse the participating nonpublic

school for the amount of the scholarship returned to the

State Treasury.

(d) Renewal.--An agreement entered into under subsection (a)

may be renewed for each school year for the same student.

(e) Multiple agreements.--A parent may enter into separate

agreements under subsection (a) for each child of the parent who

is a scholarship recipient.

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

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

the State Treasury shall provide the parent with a written

explanation of the authorized uses of the money in the PASS

scholarship account and, a notice that students with

disabilities who participate in the program are "parentally

placed private school children with disabilities" under 20

U.S.C. § 1412 (relating to state eligibility) and an explanation

of the rights of parentally placed private school children under

20 U.S.C. Ch. 33 (relating to Education of Individuals with

Disabilities) ("Individuals with Disabilities Education Act")

and any applicable State law and regulation.

Section 1406-C. Pennsylvania Award for Student Success

Scholarship Account.

(a) Establishment.--If an agreement is entered into under

section 1405-C(a), the State Treasury shall establish a

Pennsylvania Award for Student Success Scholarship Account for

the scholarship recipient. The PASS scholarship account shall be

administered by the State Treasury in accordance with this

article.

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(b) Deposit.--

(1) Upon establishment of a PASS scholarship account,

the State Treasury shall deposit a sum of money for the

applicable school year in the PASS scholarship account for

the scholarship recipient in accordance with this section.

(2) For the 2024-2025 school year, the sum shall be as

follows:

(i) for a student in half-day kindergarten, $2,500;

(ii) for a student in full-day kindergarten through

grade eight, $5,000;

(iii) for a student in grade nine through grade

twelve, $10,000; or

(iv) for a student with special needs regardless of

grade level, $15,000.

(3) Beginning with the 2025-2026 school year, and each

school year thereafter, the amounts in paragraph (2) shall be

increased by the greater of the average percentage increase

in the index as defined in section 302 of the act of June 27,

2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer

Relief Act, for all school districts for the prior school

year and the percentage increase in the appropriation for

basic education for the prior fiscal year. The State Treasury

shall calculate the increases on an annual basis and shall

submit a notice of the increases to the Legislative Reference

Bureau for publication in the next available issue of the

Pennsylvania Bulletin.

money for each scholarship into a PASS scholarship account on a

schedule determined by the State Treasury in consultation with

the department.

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(d) Payments to participating nonpublic schools.--A parent

may direct payments from the PASS scholarship account to a

participating nonpublic school on behalf of the scholarship

recipient via an electronic money transfer system or other

method approved by the State Treasury under section 1409-C.

Section 1407-C. Qualified education expenses.

(a) General rule.--Money deposited into a PASS scholarship

account may be used only to pay for the following qualified

expenses incurred by or associated with the scholarship

recipient:

(1) Tuition required by a participating nonpublic

school.

(2) School-related fees.

(3) Special education services fees.

(b) Prohibition.--A participating nonpublic school that

receives a payment for qualified education expenses authorized

under subsection (a) may not refund, rebate or otherwise

directly share any portion of the payment with the parent who

made the payment.

(1) The money in a PASS scholarship account is not

taxable income to the parent or scholarship recipient under

State law.

(2) An award made to, or payment from, a PASS

scholarship account may not be construed to be an

appropriation or financial assistance to a participating

nonpublic school.

Section 1408-C. Pennsylvania Award for Student Success

Scholarship Fund.

(a) Establishment.--The Pennsylvania Award for Student

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Success Scholarship Fund is established in the State Treasury.

All interest and earnings received from investment or deposit of

the money in the fund shall be paid into the fund and used for

scholarships. Any unexpended money and interest or earnings on

the money in the fund may not be transferred or revert to the

General Fund but shall remain in the fund.

(b) Deposits.--Deposits in the fund shall consist of the

following:

(1) Money that is appropriated, given, granted or

donated by the Commonwealth or any other government or

private agency or person for the purpose established under

this article.

(2) $100,000,000 transferred from funds received under

the authority of Article III of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971. This

transfer shall occur no later than August 1, 2023, and each

August 1 thereafter.

appropriated on a continuing basis to the State Treasury for

scholarships.

Section 1409-C. Duties of State Treasury.

(a) General rule.--The State Treasury shall:

(1) Develop guidelines, in consultation with the

department, as necessary for the administration of this

article.

(2) Make payments to PASS scholarship accounts as

provided in this article.

(3) Develop a system that enables a parent to direct

payment to a participating nonpublic school in accordance

with this article.

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(4) Develop a process by which a nonpublic school may

inform the State Treasury of the nonpublic school's interest

to participate in the program and demonstrate compliance with

the requirements of this article.

(5) Ensure that eligible students and their parents are

informed annually of the participating nonpublic schools in

the program by posting a list of participating nonpublic

schools on the State Treasury's publicly accessible Internet

website by April 1, 2024, and by April 1 of each year

thereafter.

(6) At such time and in such form and manner as may be

directed by the State Treasury, request and receive

information and data from a public school, resident school

district, participating nonpublic school or applicant

determined to be necessary by the State Treasury to

administer this article.

(b) Third-party administration.--The State Treasury may

contract with a third party to administer the program.

(1) Notwithstanding any provision of 62 Pa.C.S. Pt. I

(relating to Commonwealth Procurement Code), to the contrary

and in order to facilitate the prompt implementation of this

article, a contract may be awarded for a supply or service

without competition if the State Treasury determines in

writing that the contract is necessary for the implementation

of any provision of this article and is in the best interest

of the Commonwealth. T he State Treasury shall provide and

make publicly available a written justification of any

procurement under this section.

(2) Paragraph (1) shall expire no later than two years

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following the issuance of the procurement under paragraph

(1). Procurements issued after this period shall be issued as

provided by law.

(d) Regulations.--

(1) In order to facilitate the prompt implementation of

this chapter, regulations determined to be necessary and

promulgated by the State Treasury shall be deemed temporary

regulations and shall expire no later than two years

following the publication of temporary regulations. The State

Treasury may promulgate temporary regulations not subject to:

(i) Section 612 of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of

1929.

(ii) Sections 201, 202, 203, 204 and 205 of the act

of July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(iii) Section 204(b) of the act of October 15, 1980

(P.L.950, No.164), known as the Commonwealth Attorneys

Act.

(iv) The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

(2) The authority provided to the State Treasury to

adopt temporary regulations in this subsection shall expire

no later than two years following the publication of the

temporary regulations. Regulations adopted after this period

shall be promulgated as provided by law.

Section 1410-C. Duties of Auditor General.

The Auditor General may:

(1) Conduct a random audit of PASS scholarship accounts.

(2) Refer cases of suspected fraudulent misuse of PASS

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scholarship accounts to the Inspector General for

investigation. If the investigation results in a finding that

rises to the level of criminal activity, the Inspector

General shall refer the matter to the appropriate law

enforcement agency for prosecution.

(3) Notify the State Treasury of cases of suspected

fraudulent misuse that are referred to the Inspector General.

Section 1411-C. Duties of participating nonpublic schools.

(a) Notification requirement.--A nonpublic school that

desires to participate in the program shall notify the State

Treasury by a date and in a manner and form established by the

State Treasury. The notification shall include certification by

the nonpublic school that:

(1) The nonpublic school is a nonprofit entity exempt

from Federal taxation under 26 U.S.C. § 501(c)(3) (relating

to exemption from tax on corporations, certain trusts, etc.).

(2) The nonpublic school complies with the

nondiscrimination policies specified in 42 U.S.C. § 1981

(relating to equal rights under the law).

(3) The nonpublic school complies with the provisions of

sections 111 and 111.1.

(b) Prohibition.--A participating nonpublic school may not

charge a Pennsylvania award for student success scholarship

recipient a tuition rate, student-related fees or special

education services fees that are higher than the rates the

participating nonpublic school would have charged to a student

who had not received a Pennsylvania award for student success

scholarship.

(1) Each participating nonpublic school shall report in

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a manner and form determined by the State Treasury, in

consultation with the department, information regarding

scholarship recipients enrolled in the participating

nonpublic school as follows:

(i) Enrollment and disenrollment.

(ii) Regular attendance.

(iii) Chronic absenteeism.

(iv) Academic progress as measured by advancement to

the next grade level.

(v) Indication of graduation.

(vi) Concurrent or dual enrollment course credits.

(2) The State Treasury shall report the information

regularly to the department on a schedule agreed to by the

State Treasury and the department.

(d) Construction.--

(1) For purposes of this article, a participating

nonpublic school shall be autonomous and is not an agent of

the State Treasury, the department or the Commonwealth.

(2) Neither the State Treasury, the department nor other

State agency may regulate the educational program of a

participating nonpublic school that accepts money from a

scholarship recipient beyond what is necessary to administer

the program.

Section 1412-C. Bar of certain participating nonpublic schools.

(a) General rule.--The State Treasury may bar a nonpublic

school from participation in the program if State Treasury

establishes that the nonpublic school has:

(1) routinely failed to comply with the requirements

established in section 1411-C; or

(2) failed to provide a scholarship recipient with the

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educational services funded by the recipient's PASS

scholarship account.

(b) Notice.--If the State Treasury bars a nonpublic school

from participation in the program, the State Treasury shall,

after any appeal is concluded and the State Treasury's decision

is upheld under subsection (c), post the decision on the State

Treasury's publicly accessible Internet website.

Treasury's decision to bar its participation in the program

within 30 days of issuance of the decision. The appeal shall be

governed by 2 Pa.C.S. Chs. 1 (relating to general provisions), 5

(relating to practice and procedure) and 7 (relating to judicial

review).

Section 1413-C. Duties of resident school districts.

A resident school district shall provide a participating

nonpublic school that has admitted a scholarship recipient with

a complete copy of the scholarship recipient's school record

within 10 days of the receipt of notice from the participating

nonpublic school of the scholarship recipient's enrollment.

Section 1414-C. Report.

(a) Duty to prepare and submit.--Beginning January 31, 2025,

and each January 31 thereafter, the State Treasury, in

consultation with the department, shall prepare and submit to

the General Assembly an annual report on the program.

(b) Contents.--The report shall include the following:

(1) The total number of applications received for the

program.

(2) The total number of applications received for the

program, by resident school district.

(3) The total number of applications approved for the

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program.

(4) The total number of applications approved for the

program, by resident school district.

(5) The total number of PASS scholarship accounts

terminated early.

(6) The total number of PASS scholarship accounts

investigated for fraud by the Inspector General.

(7) The total number of scholarships awarded to students

attending half-day kindergarten.

(8) The total number of scholarships awarded to students

attending full-day kindergarten through grade eight.

(9) The total number of scholarships awarded to students

attending grade nine through grade twelve.

(10) The total dollar amount of scholarships awarded.

(11) The total number of applications not approved due

to lack of funding.

(12) The cost of administration of the program.

(13) Other information the State Treasury deems helpful

to the General Assembly.

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

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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

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

A01697 - 21 -

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

(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

A01697 - 22 -

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).

* * *

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

A01697 - 23 -

(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

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:

A01697 - 24 -

(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

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

A01697 - 25 -

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:

(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

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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

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

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